Fineotex Chemical Limited — Call Transcript 2025

Dec 16, 2025

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December 16, 2025

To,
The General Manager, Listing Department, Bombay Stock Exchange Limited, P.J. Towers, Dalal Street, Mumbai – 400 001 Company code: 533333	The Manager, Listing & Compliance Department The National Stock Exchange of India Limited Exchange Plaza, Bandra Kurla Complex, Bandra East, Mumbai - 400051 Company code: FCL

Subject: Transcript of Investor/Analyst Conference Call held on December 10, 2025

Dear Sir/Madam,

Pursuant to regulation 30 read with Para A of Part A of Schedule III of the SEBI (LODR) Regulations 2015 and with reference to our letter dated December 05, 2025 please find enclosed a copy of the transcript of the Investors/Analyst Conference call held on Wednesday, December 10, 2025 on Acquisition of a Leading U.S. Specialty Oilfield Chemicals Group.

The above information is also available on the website of the company i.e. www.fineotex.com

This is for your information and records.

Thanking you,

Yours faithfully,

For FINEOTEX CHEMICAL LIMITED

SUNNY Digitally signed by SUNNY BHARATBHAI PARMAR BHARATBHAI Date: 2025.12.16 17:22:17 PARMAR +05'30'

Sunny Parmar

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Company Secretary & Compliance Officer

Encl: As above

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“Fineotex Chemical Limited Conference Call To Discuss the Strategic Acquisition of CrudeChem Technologies”

December 10, 2025

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MANAGEMENT: MS. AARTI JHUNJHUNWALA - EXECUTIVE DIRECTOR, FINEOTEX CHEMICAL LIMITED MR. SACHIN BANDODKAR - BUSINESS HEAD, OILFIELD SPECIALTY CHEMICALS, FINEOTEX CHEMICAL LIMITED MR. SANJAY TIBREWALA - EXECUTIVE DIRECTOR AND CFO, FINEOTEX CHEMICAL LIMITED

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Fineotex Chemical Limited December 10, 2025

Moderator:

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Good afternoon and welcome to Fineotex Chemical Limited conference call to discuss the strategic acquisition of CrudeChem Technologies, a leading US-based specialty oilfield chemicals group.

Before we begin, please note that this conference call may contain forward-looking statements about the Company which are based on the beliefs, opinions, and expectations of the Company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict.

On the call today, we have with us Ms. Aarti Jhunjhunwala – Executive Director; Mr. Sachin Bandodkar, Business Head, Oilfield Specialty Chemicals and Mr. Sanjay Tibrewala, Executive Director and CFO. The management will take us through the strategic rational and the operational alignment.

As a reminder, all participant lines should 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 the conference call, please signal an operator by pressing ‘*’ then ‘0’ on your touchtone phone. Please note that this conference is being recorded.

With that, I would now like to hand the call over to Ms. Aarti Jhunjhunwala. Please go ahead.

Aarti Jhunjhunwala:

Thanks a lot. Good afternoon, everyone. It is always a pleasure to connect with our investors, analysts and stakeholders. We deeply appreciate your time and your trust in Fineotex Chemicals Ltd.

Fineotex is not just a Specialty Chemicals company. We are a solutions-driven organization built on innovation, customer centricity and sustainable value creation. Our integrated product range, strong global presence, and deep industry relationship positions us to cater to the evolving needs of a wide spectrum of industries.

Staying true to our values, today we are here to discuss a truly landmark development in our Company's strategic growth journey, the acquisition of a leading US-based specialty oilfield chemical group, CrudeChem Technologies, through our subsidiary Fineotex Biotex Healthguard FZE. This acquisition marks a transformational journey for us as deep penetration of CCT in key US oilfield hubs, including Midland and Brookshire in Texas, enhances our market presence, especially on the international front.

Technical lab ecosystem brings scientific depth and R&D trend, accelerating our innovation roadmap. Environmentally responsible oil field chemistry with solutions designed for full cycle of oil and gas well boards our core beliefs. CrudeChem's robust R&D infrastructure in Texas, combined with Finotex expertise in formulation chemistry, will accelerate technology transfer, co-development of advanced tech chemistries, and faster product innovation, tailored to our global oilfield needs.

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The North American oilfield chemicals market alone represents a $11.5 billion opportunity in 2025, strong growth expected across refining midstream production chemicals and water treatment. This marks one of the most significant steps we have taken towards building a powerful global platform in high performance and sustainable chemical solutions.

Sachinji will take us through the strategic development of the Company. Over to you, Sachinji.

Sachin Bandodkar:

Thank you, Aartiji, and good afternoon, everyone.

I will now present a strategic overview of this acquisition, which we believe is a major milestone in Finotex Chemical Limited's global growth journey. This acquisition significantly strengthen our position in the specialty oilfield chemical segment, especially in the international market. The CrudeChem ecosystem brings several strong advantages. I will tell you, first, advanced fluid additives that position us as a provider of mission-critical, high-performance solutions that improve operational efficiency and reduce costs for global energy producers. Second, highperformance chemical technologies that are essential for maximizing reservoir output and ensuring reliability in challenging environments. Third, ESG-compliant solutions which align with our core values. Fourth, a world-class technical ability that enables fast formulation development, real-world testing, on-site troubleshooting, and customized solutions based on customer needs. Fifth and last, long-standing relationships with leading global energy producers and oilfield service companies, giving us immediate access to Tier 1 customers, long-term contracts, and trusted partnerships built over many years. So, by combining CrudeChem's technical strength and global customer network with Finotex manufacturing capabilities and customer-focused approach, we aim to play a much larger role in this growing market.

Now, finally, I would like to hand over the call to our Executive Director, Mr. Sanjay Tibrewalaji, who will provide further details on the acquisition. Thank you.

Sanjay Tibrewala:

Thank you, Sachinji. Good afternoon, everyone. We are all pre-connected from Houston, USA right now while taking this call.

So, Fineotex through its subsidiary has entered into a definitive agreement to acquire equity interest in four U.S.-based specialty chemical companies forming the CCT Technologies Group, the CrudeChem Technologies Group ecosystem, with a combined annual revenue of USD 68 million. Across these entities, Fineotex will acquire 53.33% controlling stake with a combined acquisition value of approximately $11.5 million, making this acquisition EPS-accretive.

This acquisition unlocks significant synergies for Fineotex Group. The complementary product portfolio of Finotex and CrudeChem creates strong opportunities for cross-selling high-value solutions across both customer bases, enabling us to expand our reach in India, Asia and North America.

CrudeChem's robust R&D infrastructure in Texas, combined with Fineotex expertise in formulation chemistry will accelerate technology transfers, co-developments for advanced

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chemistry, and faster product innovation tailored to global oilfield needs. Additionally, the complementary range of performance chemicals across production, stimulation, and water treatment segments strengthens our ability to offer end-to-end solutions. By integrating CCT's capabilities with Fineotex global customer network and manufacturing expertise, we aim to meaningfully participate in this expanding market.

We remain committed to scaling operations, enhancing capacity, and driving cross-portfolio integration. This acquisition directly aligns with our strategic objective to build a $200 million business in oilfield Specialty Chemicals within the coming years. This step reinforces our commitment to building a diversified, future-ready, and innovative-led specialty chemical franchise and portfolio.

We now look forward to taking your questions. Over to you, please, the host.

Moderator:

Thank you. We will now begin the question-and-answer session. The first question comes on the line of Kautuk Yemdey with AXA. Please go ahead.

Kautuk Yemdey:

Hi, thank you for taking my question. I had a couple of questions. The first one being, if we look at the valuation of the acquiree, $11.5 million paid for a 53.33% stake, it comes to around $22 million.

Sanjay Tibrewala:

$22 million.

Kautuk Yemdey:

Right. And the last annual sales is $68 million. So, my question is, since the price-to-sales ratio is very less, like it is 0.3, is this a distressed asset that we have bought?

Sanjay Tibrewala:

So, it is not at all like this. Firstly, in the last two years, they have done almost, even in the last year, as you might have seen in the stock, the reporting which we have done, it is above 50, within one of the companies, $50 million, and the others have combined to the remaining ones. So, it is not at all distressed. It's a profitable company, and there is a lot of value which we are bringing to the Company. We have, in fact, also, out of the $11.2-$11.5 million, almost $25 million to $30 million will be introduced in the Company as a primary issue, which will help for the growth of the company. Right now, the group has a huge orders in pipeline, and it is requiring capital to grow it up. Fineotex is the right match for us, and for the last, maybe at least two or three quarters, we have been discussing with this group on strategic alliances. We have already started doing some business with the Company even before, and we have understood the potential of each other working together in a synergy. It's not at all a distressed asset at all, and we are already planning a lot of executions of orders going forward.

Kautuk Yemdey:

I'm just not getting how you are buying this company so cheaply. Can you explain?

Sanjay Tibrewala:

I would not be able to answer subjective questions to it. The situation here where we are today, it's the P/E or the EBITDA to EV ratios are, let's say, above 5 at the moment. It's a debt-free company. We have a lot of technologies which we are bringing on the table to them, a lot of

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formulations and technologies which also has a value to it. Fineotex itself has been very strong, and the developments which we have done, the kind of participation and the kind of approvals which we have got in the Middle East, and also the executions which we have been attending in the last couple of years has been remarkably good. We were discussing with this company since a very long time, and it apparently looks there is a lot of investments which Fineotex will be doing in USA for the plant and machinery also. So, yes, that's the way it is.

Kautuk Yemdey:

Okay, great. And just one last accounting and bookkeeping question. So, if you convert the cost pay in rupee terms, it comes to close to 100 crores. So, in the year-end, will we see goodwill or capital reserve on the balance sheet? Like, is this a bargain purchase? What is the net asset of the acquiree?

Sanjay Tibrewala:

This call is more on the kind of the business alliances and what is the plan for the future. Regarding the accountancy and how the entries will be done, we still have enough of time to get onto that. Yes, we will surely get back to you on that answers also on the accountancy of it. But if you would like to ask us anything about….

Kautuk Yemdey:

Thank you.

Sanjay Tibrewala:

Yes, okay. Thank you so much.

Moderator:

Thank you. Next question comes from the line of Ankit Kumar with Aquarius Investment. Please go ahead.

Ankit Kumar:

Sir, the question, the four companies that you have acquired, are the other companies best suited for our Company's profile and will it enhance the Company's overall market position? Any view on that?

Sanjay Tibrewala:

Certainly. Let me tell you that in a different way. The biggest oil serving companies in USA are customers of CrudeChem. That's the way it is. In the press release, we have been able to highlight certain background of the company, the kind of product lines which it is also on. So that's fitting our product line totally. And this company needs a lot of investments. It's a debt-free company. It's run by three strong stewards of the industry. They are the founders. They need a strong company like Fineotex for planning for the long-term investments and there is also investments planned for more than $10 million going forward in the plant and machineries, which will be happening in the coming years. And Fineotex will be the investor for that as well. So, there is a lot of action which is going to be taken up. At the same time, Fineotex brings on the table a lot of product efficiencies, product technologies, etc. And there will be a lot of cross-selling opportunities also. So yes, this is the right match and we are totally excited about it. And yes, this is something which we have been looking for the last three quarters. I guess, most of you participants were always asking us, what's the next and how is it going to shape up? And here we are. So yes, that's to answer your questions, Ankit Kumarji.

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Moderator:

Thank you. Next question comes from the line of Anupam Agarwal from Lucky Investments. Please go ahead.

Anupam Agarwal: Yes, thank you so much. Congratulations, Sanjay and team Fineotex on this acquisition.

Sanjay Tibrewala:

Thank you, Anupam.

Anupam Agarwal: My first question would be, since we've consummated the agreement already, by when will we consolidate the numbers in the P&L?

Sanjay Tibrewala: We are right now in Houston only for the last couple of days. And in fact, we have already done all the documentations today. So possibly, if you ask us from the beginning, I think, let's say from 15[th] December would be a good...So let's say half of December would be in the consol.

Anupam Agarwal:

Understood.

Sanjay Tibrewala:

But if you see the real picture, I think the real picture, if you want to look at, I think the 1st January will be the most important thing because it's the yearend. US is always a little bit in a different mood as it goes towards the Christmas and the New Year. And so I think 1[st] January would be the best way to begin to see the differences in the consolidation.

Anupam Agarwal: Understood. Second question, you already mentioned that they were customers of us and we were doing business with them prior to the acquisition. And because of the oilfield business that we were already there before the acquisition, what sort of synergy or cross-selling can happen either with them or globally in the US and Europe market?

Sanjay Tibrewala:

So yes, perfect. So this is a very important question actually and thanks for bringing this up. So like CrudeChem is in Houston. Houston is they say the Mecca of the oil industry on planet is Houston. All the things, all the biggest planning and all the biggest oil serving companies are all placed in Houston. All the decisions are made in Houston. So this company has been growing rapidly and it's in the proper place with the right kind of customers. I mean, there are companies which have almost $0.5 trillion business up to $20 billion-$30 billion business also. And all of them are the biggest customers for CrudeChem. At the same time, CrudeChem has their own portfolios and these companies are too much satisfied with the performance, with the services of CrudeChem. And they're looking forward for further alliances with CrudeChem for which they need more product lines. Fineotex is one of the best synergetic partners for CrudeChem because the products and the technologies Fineotex has is complementary to the range of CrudeChem. Now this is helping us instantly rather and that's what we have in fact began already about cross-selling and bringing our products to them. And so also they have products to our customers of Fineotex, which we have been regularly participating in Oman show, in OTC, Houston, in ADIPEC last month we were there. So yes, these are the kinds of synergies and advantages we could see. As you know, financially Fineotex is very, very strong when it comes to ready cash balance and other things. CrudeChem appreciates this. They need a partner and a growing company like Fineotex and they have seen the performance of Fineotex of almost, we

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have done a CAGR growth of 45% in the last five years and there has been 30% growth of Fineotex in the last 14-15 years CAGR. And of course, they can also understand the strengths of the funds and the backup we have. So they were very excited and that they need this kind of company, which has the technology, which has the right strategy in place at the same time finance. And that's why to answer one of the question of the participants, that's the reason they chose us and we chose them. That's the way it worked.

Anupam Agarwal:

Right. I'll just maybe rephrase my question in a better way. So $68 million to $70 million revenue annually done by the group, sitting in December today, because of the nature of how US orders are placed, they are kind of given by November, December, what sort of order book are they sitting on for the next year or the couple of next years?

Sanjay Tibrewala:

There were some fluctuations in the past. They have done almost $60 million, also $66 million, also $50 million. So in the last one year was not great enough for the oil industry per se. Even if you see the numbers of biggest oilfield service provider companies, all of them have not been doing good. The crude oil prices are also quite on the softer level in the last one year. So what we are having plans, I mean, how do we touch a massive figure in the next 3-4 years, and we have proper planning for that. There are a lot of orders and a lot of companies which have opened up with their own, with the requirement of the portfolios, which we have. So I think going forward, this is a number which will be definitely out passed. There's no doubt about it going forward, yes.

Anupam Agarwal:

Okay. So this business as of today, so let's say oilfield, oil drilling as a percentage of sales for Fineotex is about 10%. With this acquisition, with the numbers that you're talking about, the growth, the order book, what sort of revenue can we see from this piece going ahead, let's say 2 years, 3 years down the line?

Sanjay Tibrewala:

Well, I mean, down the line, there is a mission we have for $200 million going forward that is the plan which CCT has, very clearly and detailed planning also. And so whether it, we expect this to happen in the next 4 years or something like that. So let's see how we take it up as soon as possible. And yes, so that's something which we have been working upon.

Anupam Agarwal: Got it. And we have acquired 53.3% stake. Is there a possibility that we have an option in the agreement to acquire the balance stake or is it going to stay as is?

Sanjay Tibrewala: No. Rather, we have got a commitment from them that at 2028, January, let's say 2 years from now, something like that, we will be having to get another 25% of it. So it will become 78.33.

Anupam Agarwal:

At the valuation today or at a decided value?

Sanjay Tibrewala:

No, it will be the future valuation, future, everything on that time.

Anupam Agarwal:

Understood. Got it. I'll come back in the queue. Thank you so much.

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Sanjay Tibrewala:

Thank you so much, Anupamji.

Moderator: Thank you. Next question comes from the line of Rohit Sinha with Sunidhi Securities. Please go ahead.

Rohit Sinha:

Thank you for taking my question and congratulations for this acquisition. So some of my questions are already asked, but a few from my side was first is in terms of capacity. I mean, obviously for us also, it was like a multi-purpose plant for us. So we have an option for different, different products. From here, what we can consider, what is the capacity right now for CrudeChem? And as we are looking for investment there, how the capacity would be expanding in the next, let's say, 2 years?

Sanjay Tibrewala:

So as such, we have good capacities in Fineotex India to cater, as we know, we have just started, commissioned a new factory, new plant a couple of quarters before, last quarter actually. And when it comes to CrudeChem, we have to expand very quickly here because the area and speed of the businesses and the kind of orders which are lined up is not able to handle in the same facilities. So by in the coming week or this week or something, there is another, we are going to finalize to shift in a couple of months to a new premises. And so, that's the plan going on now. And there will be a good amount of investments in the future for the plant and machinery and land and other activities, not only in the US, but we are targeting also to have some facilities in the Middle East. We are getting good opportunities and business commitments from our partners in Middle East also. So that's also in the cards. So we will be, as you know, Fineotex is quite strong financially on cash and bank is very strong at the moment also. So this is something which is the perfect match for us and we are excited about it.

Rohit Sinha: Any specific number on the capacity side for CrudeChem or maybe at what utilization level right now they are operating?

Sanjay Tibrewala: I mean, we don't have exact numbers about it, but the point is that there is a lot of big areas which are required to handle the future businesses, the customers have insisted us to move bigger volumes and hence to get the bigger volumes, we will have to have more space of production and capacity. So that's about it in a nutshell. So that's what is the key takeaway from this.

Rohit Sinha:

Okay. Secondly, in terms of funding, I mean, we have raised a fund for this acquisition only sometime back. Finally, it is done now as we are also saying that there would be further investment required. So how the fund situation is right now for us, would there be any further requirement of fundraising or it will be sufficient from the current business only with the balance which we have?

Sanjay Tibrewala: Yes. So Rohitji, as you might have seen, we have more than Rs. 300 crores plus in cash and bank at the moment, not at the moment, I mean, in a couple of quarters before, I mean, in the September results also, it must be around 340 if I'm not wrong. So yes, that is sufficient enough to cater and we will not have to go to raise any debt for the requirement of working capital or investments to be done in CrudeChem. So that's about it. So everything will be done with internal

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accruals and cash on bank, and it's much, much sufficient. And in fact, we are geared for more further investments in CCT or anything like that. We already have enough of cash on bank for that.

Rohit Sinha: Okay. And in terms of, I mean, obviously, this is basically on the oil side, but any other scope we have also to consider in terms of industry serving? Currently, this is all into the oil and gas space. Any other scope also we have?

Sanjay Tibrewala: So Rohitji, this is not our first acquisition, actually. We have done the same in 2011 after raising the funds. So this is not our first acquisition. This is, I would say, yes, the first in the last 5 years or something like this or 10 years. We are always open; we are very disciplined in deployment of cash. We look for synergetic partners; we look for companies which require growth capital, CCT was one of it. It's not about the funds being given to the erstwhile founders or something like that. It's also the capital is invested in the Company, which will be used for the growth of the Company. So we are always open for such acquisitions. Right now, as we all understand, in the last one year, the specialty chemical markets, a lot of opportunities are coming in. And Fineotex is in the sweet spot with a good sufficient amount of cash on hand. Opportunities are coming day in, day out. And that also doesn't mean that we just enter anything and everything until it makes sense for us. So yes, if we get something, why not? I mean, we are always open and we will keep doing the best.

Moderator: Thank you. Next question comes the line of Pratik Oza with Systematix. Please go ahead.

Pratik Oza: Hi sir. Congratulations on this deal. So the press release highlights that CrudeChem was founded by three industry veterans with a strong background. So post acquisition, what specific roles will these founders have? Or will they move into advisory roles?

Sanjay Tibrewala: No, they are still the partners. Nobody's exiting out. We have acquired from each of them and equally. And also we have acquired, the company has also issued the shares. So it's something like that. So all of them will still be there. We are also there. And we'll collectively we'll be contributing the business, our best for the business.

Pratik Oza: Okay. And secondly, regarding the team strength, could you give us a sense of the headcount for this Company between technical people and operational staff?

Sanjay Tibrewala: We can get back in our next upcoming call in the coming few weeks about it. And more intense details can be provided. But this company is founded based on the technologies and the R&D of this thing. One of them is also a PhD holder in technology, one of the promoters. So that has also helped to develop the chemistries and product lines. So yes, and all of them will be participating and are equally the shareholders with each other.

Pratik Oza: Got it. Thank you.

Sanjay Tibrewala: Thank you, Patikji.

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Moderator: Thank you. Next question comes on the line of Vinay Nadkarni with Hathway Investments. Please go ahead.

Vinay Nadkarni: Congratulations, Sanjayji. I think you must be very happy to get into what has happened. Sanjay Tibrewala: Thank you, Vinayji. Vinay Nadkarni: Just couple of questions. This is a $68 million company. So even if I take 53%, they would be kind of contributing a larger share in your next year's profits, next year's supply, right? Sanjay Tibrewala: Yes. Vinay Nadkarni: Even if you maintain the same $68 million? Sanjay Tibrewala: Yes. Vinay Nadkarni: Then coming to EBITDA, what is the current EBITDA? How much are they making? Sanjay Tibrewala: So if we go to the last 3-4 years figures, they had a great time also when the oil industry was doing very well. I think, if I'm not wrong, this year will be almost, EBITDA of almost $4 million or something like that. I am not exactly, it can be 4, it can be 4.5 or something like that. Let's see how it shapes up. Vinay Nadkarni: Okay. And is it a free cash flow generating company? Sanjay Tibrewala: Yes, there is no loans in it right now. Vinay Nadkarni: Okay. Lastly, is there a possibility of you releasing an investor presentation on this particular deal or would you like to cover it only in the next call? Sanjay Tibrewala: We'll cover it on the next call. We are right now very busy in integrations and a lot of actions, a lot of planning is going on. I think that's, I mean, this call is based on to just give a flavor about what we are doing. Although we have tried to explain a lot in the press release, but this is an add on to that. And yes, here we are. So this industry will be shaping up very well in the coming years. Right now, oil and gas in the last one year was not in the right shape as we all know, but this is the right time for us to invest in such industries when it's around at the right levels. Vinay Nadkarni: Just one last question. In terms of order book, you have not specified what order book they have at present, but I presume that with US going very strong on oil exports or drilling of oil there, you see next couple of years would be a good growth phase for them? What kind of growth are you looking at from here onwards only in CCT? Sanjay Tibrewala: In CCT, I'm very sure that we should be looking at at least 25% CAGR growth. Definitely, there's no doubt about it. So that's something which we should be expecting as what we are also expecting. And of course, there are a lot of geopolitical situations which play an important role

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in such kinds of businesses as we all witness it also. And yes, so there's a lot of exciting order lined up and approvals and transitions going up, trials, et cetera. So yes, in a couple of quarters, a lot of things will be cleared up and then we'll be in the right position to have much accurate estimations.

Vinay Nadkarni:

Thank you. Thank you very much and all the best.

Sanjay Tibrewala:

Thank you, Vinayji. Thank you very much.

Moderator:

Thank you. Next question comes on the line of Athar Syed with Smart Sync. Please go ahead.

Athar Syed:

Thank you for the opportunity. I'm new for this Company as well. So sorry, I missed something. But I have one question only on this. We acquired four companies. So I just wanted to know about, apart from CCT, we acquired this company called Lonestar Technoboost. So their sales is very nice, like around $1 million or $10 million amount as per sales, if I'm not wrong. But you acquired them at just $5,000. So can you please explain like why we get this much discount?

Sanjay Tibrewala:

So |Atharji. Actually, the group belongs to the same promoter in the same percentages and that's the way it is. The allocations of every company is done on the basis of their profitability, as you know much about it. And so that's the way, the way to look at it is not individually, the way to look at it is the basket of the same group with the same promoters of the same equity percentages at the same locations. So that's the way to look at it. Maybe if you want some more understanding on how it should be done, or I mean, so that's all what we can answer to that on that point.

Athar Syed:

Okay. And sir, can you please throw some light on like you have a goal or vision to achieve $200 million level? So can you please give us a sense on when we expect to achieve $200 million vision?

Sanjay Tibrewala:

So I will be the most happiest person if I could answer precisely the question. But as you know, we work in an ecosystem where geopolitical situations and a lot of things move in and out. Even the crude oil price changes a lot. Last one year was not great enough for the oil industry. Going forward looks better. We are trying our best. This is a mission we have. Let's see how we can do as soon as possible. But if your point is coming to like what's going to happen in the next quarter or next to next quarter or next door or next to next door, we don't have any such ideas. We are we are a long term company, as you might have studied. If not, maybe if once you study about Fineotex, you will understand the kind of company we are from. It's a long, sustainable growth story here we have, proven history. And we will be doing our level best to make it a grand success. That's all I can tell you. But I cannot tell you exactly when does the figure touches. So that's about it, Mr. Syed.

Moderator:

Thank you, Mr. Syed. Please rejoin the queue for more questions. Next question comes to the line of Siddharth Lakhanpal with Darsh Capital. Please go ahead.

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Siddharth Lakhanpal:

Hi, Sanjayji. Congratulations for the acquisition. I just have one question. Given that we've acquired this company at a five times multiple, the margins seem especially low. And we currently operate between 15% to 20% kind of PAT margins. So are there any operational efficiencies that we bring to the table to improve their margins? And apart from that, what kind of benefits and what kind of effect will this have on our ROCs on a consolidated level and our margins for Fineotex as a consolidated group?

Sanjay Tibrewala:

So I mean, there is a lot of operational benefits Fineotex will keep bringing in regularly. That's one. The overheads in such U.S. companies are generally higher than the way we are operating efficiencies, which you can see in India in Fineotex. I mean, Fineotex is a perfect example of the best operations going on and that's the reason you can see the gross margins to EBITDA margins are quite close. I mean, it's quite respectable. I mean, it's operated very well in terms of expenses. In U.S., as you know, things are expensive here. There's a lot of expense on the manpower, etc. Going forward, the more and more businesses we will keep adding on will help us to have a better bottomline as well.

And so regarding ROCEs, ROE, right now the company has no loans, that also because the working capital is also very tight in that way. So Fineotex support on the working capital and investments in the growth as going to be a good bargaining power to procure the raw materials at a lower price, support the customers for longer consignment-based businesses, attract some more orders on that line. So there is going to be a lot of business attraction which will be happening. Also the EBITDA attractions because of the investments coming in. That will also, of course, help the better ROCE in the CCT group.

Now talking about the combined entities and other things, yes, of course, when you have certain divisions where these businesses are on a higher value, there is a low percentage, but then that's not the only goal which we have. Our goal is also on how much scalable our business gets to, which is in this business, it's very high scalable. And with the scale, you will always have a better absolute EBITDA number and that's what we are looking at now. So, Siddharthji, that is the way we think about the business. And that's the way we always think when we get a new opportunity on the table. That's about it. Thank you.

Moderator:

Thank you. Mr. Lakhanpal, please rejoin the queue for more questions. Next question comes from the line of Devendra Singh from Devendra Capital. Please go ahead.

Devendra Singh:

Sir, after hearing all your comments, just one question. Sir, if crude oil prices increase is benefit for the Company or it's a decline? Just simply one question.

Sanjay Tibrewala:

So, generally what we have experienced most of the times, all these suppliers of oil will have more businesses when the crude price goes up, the drilling, the oil recovery production, the Aramco's of the world globally, they have higher targets to produce more and more because the sales price are higher. That's the way it is. So, generally whenever such oil price goes up, the businesses are much better in terms of volume.

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Devendra Singh: So, your chemistries will be used more and more?

Sanjay Tibrewala: I mean, the consumption of the customers will increase because there will be more production happening. Everything will be on a different level and that's good for the economy. Devendra Singh: Okay. Thank you so much. Sanjay Tibrewala: Thank you very much.

Moderator: Thank you. Ladies and gentlemen, as there are no further questions, we have reached the end of question-and-answer session. I would now like to hand the conference over to Mr. Sanjay Tibrewala for closing comments.

Sanjay Tibrewala: Thank you, participants, for the trust and like what we always say, promise made, promise delivered. This is what we have been telling all of our investors always that we will be doing something which is shaping our Fineotex into a different strong direction. This is where we are now. We are very much excited where we are right now and we look forward for further longterm expansions by improved technology capabilities, value creations, for all of one and all. I'd like to thank you everyone for hearing us, our investors, for their continuous trust and support. Have a good afternoon. Thank you. Over to you.

Moderator: Thank you. On behalf of Fineotex Chemical Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.

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