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Indo Borax & Chemicals Ltd. — Call Transcript 2026
Jun 5, 2026
62277_rns_2026-06-05_c4364927-7007-4e18-948d-7fb47d027a98.pdf
Call Transcript
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INDO BORAX & CHEMICALS LTD.
Regd. Office: 302, 3rd Floor Link Rose Building, Linking Road, Santacruz (West), Mumbai - 400054, India.
Ph.: 022 26489142 / 47 / 48 • Fax No. 022-26489143 • CIN: L24100MH1980PLC023177
Email: [email protected] • Website: www.indoborax.com
Date: June 5, 2026
To,
BSE Limited
Corporate Relationship Department
Phiroze Jeejeebhoy Towers,
Dalal Street, Fort,
Mumbai - 400001
Scrip Code: 524342
To,
National Stock Exchange of India Limited
Listing and Compliance Department
Exchange Plaza, C-1, Block G
Bandra-Kurla Complex, Bandra (East),
Mumbai - 400051
Symbol: INDOBORAX
Dear Sir / Ma’am,
Subject: Transcript of the Investor/Analyst Earnings Call held on Tuesday, June 2, 2026.
This is in continuation to our letter dated June 02, 2026 wherein we had informed regarding the audio link of the Earnings Call held on Tuesday, June 02, 2026 to discuss the Audited (Standalone and Consolidated) Financial Results of the Company for the quarter and year ended March 31, 2026.
In this regard and pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed herewith the transcript of the said Earnings Call.
The transcript is also available on the Company’s website i.e. https://www.indoborax.com/Press-Media-Release.php
Kindly take the above said information on record.
Thanking You.
Yours faithfully,
For Indo Borax & Chemicals Limited
PRAVIN
PRABHAKAR
CHAVAN
Digitally signed by PRAVIN PRABHAKAR
CHAVAN
DN: sLLPRAVIN.PRABHAKAR.CHAVAN
cc-IN: LHD20024 sLLPRAVIN.PRABHAKAR.CHAVAN
Reason: I am the author of this document
Location:
Date: 2026-06-05 19:12:05:30
Pravin Chavan
Company Secretary and Compliance Officer
Membership No.: A16857
Indo Borax & Chemicals Limited
Q4 & FY2026 Earnings Conference Call
June 02, 2026
Moderator:
Ladies and Gentlemen, Good Afternoon and Welcome to the Q4 & FY2026 Earnings Conference Call of Indo Borax & Chemicals Limited.
We have with us today Mr. Suresh Kalra – Managing Director & CEO of the company. Along with him, we also have Mr. Harsh Malhotra – Executive Director, and Mr. Shashikant Bharuka – Chief Financial Officer of the Company.
As a reminder, all participant lines will remain in listen-only mode. There will be an opportunity to ask questions after the management discussion concludes. Should you need assistance during the conference call, please signal an operator by pressing “*” followed by “0” on your touchtone phone.
I would now like to hand the conference over to Mr. Suresh Kalra – Managing Director & CEO of Indo Borax & Chemicals Limited - for his Opening Remarks and to share the Company's Performance in Q4 & FY2026 with the audience. Thank you. And over to you, sir.
Suresh Kalra:
Thank you very much. Good evening, ladies and gentlemen, and a very warm welcome to you all to the Earnings Call for Q4 and FY2026, and to the Financial Year FY2026 of Indo Borax.
As you might already know, Indo Borax & Chemicals Limited was incorporated in 1980, and it has emerged as a leading player in the Indian Boric Acid market, commanding almost 50% market share.
We are the Sole Manufacturer of IP-grade Boric acid in the Country with valid FTA and BIS licenses.
Our manufacturing facility is in Pithampur, Madhya Pradesh. It has a capacity of about 26,000 tons per annum, comprising about 20,000 tons per annum of Boric Acid and about 6,000 tons per annum of Disodium Octaborate Tetrahydrate, commonly known as DOT. We are headquartered in Mumbai.
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The core product portfolio comprises Boric Acid Technical, which is primarily used in the glass, ceramics, flame retardants, chemicals, and metallurgy industries.
We also have Boric Acid I.P., which is mainly used in the pharma and personal care products, and DOT, which is used in agriculture as a micronutrient.
We also have Boron Oxide, which is used in fiberglass and boron-based chemicals.
The company also produces some other products, such as Borax Pentahydrate, which is mostly traded, and Gypsum, which is a byproduct for us.
The Boric Acid market in India is estimated at around 40,000 tons per annum, and, as per reports, it is projected to grow at an 8% CAGR, reaching close to 53,000 tons in 2030.
The Steel and Refractory segment accounts for 55% to 60% of Boric Acid demand, where most of our business is today.
This financial year marked a transformational phase for Indo Borax, as you might be following. In the financial year 2026, the company experienced a significant change in ownership. It is a transition in which Zenrock Chemicals is now emerging as our new promoter. In the fourth quarter of 2026, a new leadership team comprising very experienced industry professionals, including our Chief Commercial Officer, our Chief Financial Officer, and me, took charge of the company's operations.
Our continued focus on fiscal discipline, operational excellence, and value creation enabled us to maintain healthy profitability and a strong balance sheet with near-zero debt.
The company closed FY26 with 23% growth in operating revenue and 18% growth in net profit.
Our EBITDA and PAT margins were 21.8% and 20.5%, respectively, and this growth was achieved through an infusion of, as I already said, new leadership, capacity optimisation, improved operational efficiency, and better realisations for our products in the market.
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We also continue to push ahead with our CAPEX plans for the coming year to expand capacity and broaden our product portfolio further. The details of these will be shared post the board approval. These are still in discussion.
Owing to the recent change in the company's management, several efficiency-enhancing measures unlocked value from certain non-core assets that were not helping the business; These assets were sold, resulting in an additional one-time reward as a special dividend of Rs. 30 per equity share, amounting to over 3,000% for shareholders. This was over and above 1000% dividend, which was the final dividend for this year. With strong numbers, improved realisations, and robust demand in domestic markets, we remain committed to creating value for our stakeholders in the forthcoming quarters.
And it is only the beginning, I would say. Our business is deeply rooted in the Prime Minister's call of Atmanirbhar Bharat and Make in India Initiatives.
We continue to envision greater possibilities with upcoming investments in capacity, new product lines, stronger tailwinds, broader markets, and operational efficiencies. And more importantly, we remain confident of delivering sustainable growth and long-term value to our stakeholders in FY27 and beyond.
And with this note of optimism, I would now like to invite our CFO, Mr. Shashikant Bharuka, to discuss the company's quarterly and annual numbers. Shashikant ji, over to you.
Shashikant Bharuka: Thank you, Suresh ji. Ladies and gentlemen, before I give an overview of the results, I would like to confirm that a detailed investor update has been uploaded to the exchange and on our website. We would be happy to consider any suggestions therein.
Now, regarding FY26, I would like to provide an overview of our performance. During Q4 FY26, our operating revenue was Rs. 63.01 crores, representing a 25.70% increase against Rs. 50.12 crores in Q4 FY25.
Our EBITDA for the quarter was up by 25.70% to Rs. 12.82 crores as compared to Rs. 10.2 crores in Q4 FY25. This accounted for an EBITDA margin of 20.4% per quarter.
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Our net profit increased by 41.9% to Rs. 14.53 crores in Q4 FY26 from Rs. 10.24 crores in Q4 FY25. The PAT margin improved by 250 basis points to 21.5% per quarter under review. The EPS stood at Rs. 4.53 for Q4 FY26.
The performance for the quarter was supported by robust execution, improved capacity utilisation, and higher realisation amid steady orders across domestic markets.
For the annual performance of FY26, the company clocked an operating revenue of Rs. 215.45 crores, registering a 22.9% increase over FY25.
The challenging geopolitical conditions led to higher raw material prices and pressure on margins.
The EBITDA for FY26 stood nearly at par with FY25 at Rs.44.16 crores.
Our PAT stood at Rs.50.27 crores in FY26 from Rs.42.51 crores in FY25. The EPS for the year stood at Rs.15.67.
The company declared special and final dividend amounting to Rs.40 per equity share with face value of Re.1 each.
With these points, I now request that the moderator open the floor for questions and answers. Thank you.
Moderator:
Ladies and gentlemen, we will now begin the question-and-answer session. The first question is from the line of Rahil Desani from MAPL. Please go ahead.
Rahil Desani:
Good afternoon, and first of all, thank you for this opportunity, and also congratulations on a good set of numbers. I am a bit new to the company. So, a few basic questions. First of all, our key products being Boric Acid Technical Grade, I.P. Grade, DOT and Boron Oxide, what is the sales contribution of each in our current annual revenue?
Suresh Kalra:
At this moment, the maximum business which we have is basically in Boric Acid itself and that too Boric Acid Technical, which is a major part of our business. If you go by volume, you didn't ask about it, but Gypsum is possibly the largest volume, though that is a by-product. Still, the Boric Acid Technical is something around 15,000 tons, about Boric Acid I.P., about 900 tons, so that comprises about
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15,000-plus tons for this year, DOT was 980 tons, and then Boron Oxide and other traded products, everything put together was about 400 tons. So, answering your question, Boric Acid Technical continues to be our largest product right now, but going forward, we are looking forward to increasing our share in DOT; it is consistently increasing. We started with about 600 tons, and then it became 980 tons last year, and in the coming year, we are planning to do about 1,500 tons of that product.
Rahil Desani:
Okay. To confirm, I believe the capacities are for Boric Acid and I.P. grade. The total capacity is 20,000 tons: 6,000 tons for DOT and 4,000 tons for Boron Oxide, right?
Suresh Kalra:
Yes, I think Boron Oxide is still a project which is going on. So, for the Boric Acid and DOT, you are absolutely correct. Currently, 90% of what we are selling is Boric Acid, about 8% is DOT, and the rest is about 2%.
Rahil Desani:
Got it. And going ahead, considering that Boron Oxide and DOT were to be very big products for us initially, and also I.P. Grade is a very high margin product, so based on this, in the next one to two years, what sort of scale-up are we seeing in these products in our current capacity, especially since our capacities are also unutilised for these particular products?
Suresh Kalra:
That is right. Because the facilities for Boric Acid Technical and I.P. are almost in the same facility, we have to interchange between them. We're looking to increase our Boric Acid I.P. grade. To support this, we are adding more sales and marketing personnel and will use more of it in the coming quarters. Boric Acid is fully utilised. We have taken over some debottlenecking projects, which is why our capacity will increase slightly, but it will not increase significantly. So, it will still be sold out in that category. While at DOT, we are currently selling 980 tons this year, out of a 6,000-ton capacity, so we will still have a lot of capacity left. We may increase that to 50%, and we will be close to 1,500 tons this year, but there will still be a lot of capacity left. The other products, Boron Oxide, and any further forward integration of these products would be part of our CAPEX in the coming quarters and years.
Rahil Desani:
Okay. Got it. And if I were just to understand, based on our total current existing capacity, what can be the peak value turnovers of that?
Suresh Kalra:
So, value-wise, listen, this all also depends on because I do not have to say, currently, the geopolitical situations have increased the raw material costs
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significantly. A lot of that has to pass on to the market. If it doesn't go any further up, it continues where we are. This year, we have closed at about Rs. 215 crores of revenue. If we do more debottlenecking and sell more DOT, as I said, we expect to reach Rs. 250-plus crore of revenue in the coming year. But again, revenue is always a function of the raw material fluctuations and inflation.
Rahil Desani:
What I was trying to ask is not the guidance for this year or next year. I know that is a very volatile thing. I am asking, once the capacities are fully utilised, whenever that may be, two years out, three years out, what can be the turnover at that utilisation?
Suresh Kalra:
Sure. So without any addition of CAPEX, I am taking as it is situation, we would be easily doing 25% to 30% more in the coming one and a half years or so, depending on as I said, the pricing of the product, it can touch further up 10%, so, it can be anywhere between 20% to 35%, depending on the raw material inflation.
Rahil Desani:
Got it. How to understand the total opportunity size of these products, as it has already been shared that we have 50% of the market share, so how should we think about growth going ahead and tapping export markets?
Suresh Kalra:
Yes, that is an excellent question. I think this is also one of the things that are part of the strategic discussion with the new leadership team we have here. You have only a limited way to grow, where you are already a market leader to the extent of 50%. However, the growth opportunities that will come to us will come from the Boric Acid I.P. Grade, DOT, and further forward integration of certain products that we plan to introduce in the next three to four quarters. Our intent is to add more product lines. We are currently working on it. They are active projects. And that is why I am confident that in the next couple of quarters, you will start hearing from us on it.
Rahil Desani:
Okay. Just one last thing on the pricing part of it, since you said that is a volatile part and that may impact numbers, if you can share right now what is going on with pricing, where are we, how much prices are increased or decreased, are we able to pass them on or what is going on?
Suresh Kalra:
I am from the chemical industry for many, many years. Right now, there are very severe fluctuations in pricing for a lot of chemical products. However, we are not one of them. Our fluctuations were very limited, actually. So, of course, fluctuations are there. We were not as significantly impacted as many other players in the
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chemical sectors. So, what the increase was able to pass on to our customers, and they also were able to pass on to their customers, because in this value chain, if anybody would not be able to pass on, then it is a loss for the whole value chain. So, we are confident that we are in a good situation and a good chemical sector, where the entire value chain could pass on the price increases to the whole set of their customers. So, I do not see it as a problem at this moment.
Rahil Desani:
So, the reason that I was asking this question is previously our business used to be 25%-30% margin in the last three, four years, but in the last four to five quarters, the margins have dipped to 20%-22%. So, what is the reason for that -- is it because of the pricing scenario or what else?
Suresh Kalra:
I cannot say too much about what was there in the past. So, it is close to 21%-22% in the last couple of quarters and we are confident of maintaining that or surpassing that. So, I do not see any corrections in the coming quarters for our quality of earnings.
Rahil Desani:
Okay. What would be an EBITDA per ton number that we are making for the majority product that we are doing right now, that is Boric Acid?
Suresh Kalra:
You are talking about the per kilo basis?
Rahil Desani:
Yes, EBITDA per Kg.
Suresh Kalra:
Yes, EBITDA per Kg would be about Rs.28-29 and I would say percentage-wise, it should be 20%-21%.
Rahil Desani:
Okay. And has this changed in the last one, one and a half year whereby previously it used to be north of 30% and right now it is much lower?
Suresh Kalra:
In the last two quarters, which is in front of me, the numbers have been between 20%-21% only. So, I do not see in the last four or five quarters, which is visible to be right now in front of me, it is 20%-21% only and we are maintaining that.
Rahil Desani:
Got it. And when we say that the raw material prices are very volatile, do you think that we will be able to maintain this current EBITDA per Kg number that you said right now?
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Suresh Kalra:
I am sorry, I would repeat myself if I said it differently. I would again say volatility of raw material in our sector is much lesser than the volatility in a lot of chemical sectors. Okay? The raw materials are pretty much contracted and some of the raw materials contracted are at a long-term basis. So, I do not see we will have any issues in terms of maintaining our margins. For that, at least a few quarters.
Rahil Desani:
Okay. Got it. First of all, thank you. I have a few more questions, but I will get back in the queue.
Suresh Kalra:
No problem. Thank you so much.
Moderator:
We take the next question from the line of CA Garvit Goyal from Serene Alpha. Please go ahead.
CA Garvit Goyal:
Good evening. Sir, while the company has mentioned its products are used in glass, pharma, personal care, agriculture, and all, we have found that these products find their uses in new-age applications like electronics semiconductor, packaging, display, the container glass factories, defense and refractories metals as well. So, what are the plans of the new management regarding the supply of these products to these new-age applications?
Suresh Kalra:
Right. So, we are currently also in the exploratory stage. We know we are pretty strong in the steel industry, that is which is our forte. The applications are there in other industries too, like in ceramics, and we have small presence in some of the other market segments regarding this. We are currently in the exploratory stage, and I think I will be more confident in answering this question in maybe next or next-to-next quarter.
CA Garvit Goyal:
Got it. And regarding Boron Oxide that you mentioned, it is currently ongoing, what is the expected timeline, sir?
Suresh Kalra:
We are expecting that we will be able to kind of getting our first lot in three to four quarters from now.
CA Garvit Goyal:
Okay. And what can be the peak revenue we can anticipate from this 4,000 MTPA capacity?
Suresh Kalra:
Usually, again, as a thumb rule, I can say because things keep on changing, Boron Oxide is almost 2.5x to 3x of the price of Boric Acid in general now. So anyway, it
hovers between 2x to 3x. So, right now, if I am saying it is 2.5x of that, so revenue would be accordingly.
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CA Garvit Goyal:
Understood. And while answering the previous participant, I think you mentioned the peak revenue will be 25% to 30% from the current levels, right, of the existing capacity.
Suresh Kalra:
Yes, I was careful in saying on the revenue side because if I say as far as the volumes are concerned, we are already at the peak capacity for Boric Acid. Okay? Some operational efficiencies which bring into the system, some de-bottlenecking, etc., barring that, we are almost at capacity. Okay? DOT is where our volumes are still to be utilised a lot more than what we can produce today. Okay? But when you ask about the revenues, then it becomes a factor also of the pricing. And that is why I have been very careful in saying it can move between 25% to 35% depending on how the price realisations are.
CA Garvit Goyal:
Understood. And for this year, you mentioned Rs.250 crores. So, what kind of bottom-line ballpark number we can anticipate?
Suresh Kalra:
I would say, we would like to maintain exactly the same level of quality of earnings or EBITDA percentage which we have today in this quarter. Quarter 4 has been good as far as, I do not know if you look at all the numbers, Quarter 3 was not very good for us, but Quarter 4 represents a pretty right quarter for us and that is what we would like to replicate in the coming few quarters also.
CA Garvit Goyal:
And how this Quarter 1 is ongoing, sir, in terms of demand, environment, and the supply chain situation?
Suresh Kalra:
We have no complaints to make, trust me. We are happy with our results in April. Of course, it is too early right now to divulge the numbers, but I think we would be maintaining or surpassing our Quarter 4 numbers. I would say we are definitely surpassing, if I rephrase myself, but it will nowhere be less than our Quarter 4 earnings.
CA Garvit Goyal:
Got it. And on Zenrock Chemicals Private Limited, can you spend a few minutes on explaining what kind of past experience they bring in, in this kind of industry, because what we found is their past experience could be associated more towards the steel and trading business, So, can you help us to understand how can they operate a company in a totally different industry without any past experience or
maybe you can provide some details on their past experience so that we can better understand their interest in this segment?
Suresh Kalra:
Sure. I will just say a little bit and then I would invite Harsh Malhotra, who is our Executive Director for Strategic Initiatives as part of our board, and he is representing also Zenrock here. I would say that Zenrock Chemicals has definitely have done more deals in the chemical industry in the past. And specifically for this deal, they have been involved for quite some time. They did the entire due diligence, they have surveyed the market and then they jotted down out of many acquisitions, this was the one they wanted to do, because I dealt with them in the past, so I knew that is how they have come to the conclusion. But I would rather say, Harsh, you are on the call, why do you not take this question and answer this gentleman?
Harsh Malhotra:
Yes, thank you for that question. So, from a perspective of operating, Zenrock Chemicals is more of a holding company, whereas the day-to-day operations are led by industry experts, Mr. Kalra, our Chief Commercial Officer, as well as our Operations Head at the factory, as well as our experienced CFO. The promoter understands the business well and has appointed a very experienced team to run the business on a day-to-day basis. And I am here as a member of the board to provide strategic guidance and lead strategic initiatives where they happen. So, from a day-to-day operations perspective, we have an experienced group of individuals who have extensive experience in the chemicals industry led by Mr. Kalra.
CA Garvit Goyal:
Got it. I think that is it from my side. Thank you. All the best for the future.
Moderator:
We take the next question from the line of Dhruv Bajaj from GrowthSphere Ventures. Please go ahead.
Dhruv Bajaj:
Yes, sir, thank you so much for giving me this opportunity and congratulations on this takeover. Firstly, given the nature of the takeover, because this business has not performed really well in the past decade so to speak on the operations front, it has done pretty well, but on the growth front, it has not, fairly speaking. Can you share the vision around the company after this takeover like what attracted you to this asset, was it some sort of certification that these guys had or was it the sheer replacement cost of the asset or the balance sheet when there was a huge amount
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of cash already present in the books, if you can share more details on that front and our vision regarding the business?
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Suresh Kalra:
Sure. Listen, you have been following the business, so you already said half of the things which I wanted to say. So, thank you for that. It is a strong company with very strong results for decades. It is a 45-year-old company, a zero-debt company with very strong balance sheet with sufficient cash available to do CAPEX or even some level of acquisitions if required to be done. So, I think these are all the points which attracted us for Zenrock Chemicals to make the acquisition. And because we understand that the business has potential of growth, there is a lot of possibility of boron chemistry and forward integration into the other products, which we are currently not doing. And we know that the cash is available and cost of capital is an out saver that way. And that is the reason if you see that we are kind of monetising our non-core assets to benefit the shareholders and also invest in the future technologies there. So, these are all very easy decisions to make with the experience which this company has, coupled with the fact that I am experiencing that there was no second or third generation which was that much interested in the business, I have nobody to say for people who have sold it. It was a great business to be in. But I think our main interest was to take it now and take it to the next level. And that is what we are planning to do.
Dhruv Bajaj:
We as investors got a bit confused because firstly we were hoping that as the new management comes in, so they may utilise the cash in the books to either give special dividend which we have already given or to utilise that particular cash spread on the growth part considering we were very aggressive on the business front, that was the thought process. But right after the takeover, I think the promoters flexed their stake. So, there was some sort of misconception that this dividend is being given off so that they can service their covenants. So, if you can share more details on whether this was a strategic decision to actually deleverage or rather reduce the over-capitalisation in the balance sheet, what was the logic behind that, because at one point you are saying that we want to reinvest in the business, but at the same time we are taking out all the cash that was available in the business in form of one-time dividend. So, I could not understand the treasury operation on that part. What is the purpose behind that?
Suresh Kalra:
Yes. The thought process is very simple. First of all, we have not taken the entire cash out of the company. I think we still have sufficient cash for all the CAPEX which we have budgeted for the next two years. The intent was definitely that the
company and the shareholders should be winning. There are non-core assets to the company which we sold. There were flats and cars and things like that which is definitely not helping the business to grow. And that is what we monetised. And once we monetised, then it is also our duty that everybody gets equally benefited, the new promoters, and the old shareholders of the company, and that is what we did. And that is why we call it one-time. We look forward to investing in the business more, grow the business more, and continue to expand ourselves. That is the intent which we have going forward.
Dhruv Bajaj:
Perfect. That is super helpful. And sir, in terms of Boric Acid, based on our analysis, I think Turkey is having a monopoly on the crude boron front, wherein I think we source majority of our crude boron from their side, and then we process them maybe for farm application or for other applications. So, how do we compete with them, especially in exports market, and given that we have been able to rope in very experienced professionals like Suresh Kalra ji himself from Aquapharm, within one year of his taking over of the CEO of that particular company. So, what is the game plan with that hiring, or switch in terms of Suresh ji coming back to this business? Are there some sort of low hanging fruits that we can utilise to grow this business in the next coming one or two years, which will not require a lot of investment in the core business? And are we supposed to grow in the Boric Acid front only going forward or are we exploring some other chemistries as well or is it too early to speak on that front?
Suresh Kalra:
So, mix of this. So, I guess the question is for me. So, thank you that you mentioned what I did in the past. And of course, I think this is one of the decisions why I came and joined here, because I see a lot of opportunities. I will take your question in two, three parts and answer it. First, I will answer a very critical question, which you asked about the raw materials. Now, you are right, the raw material, which is in our case, there are various raw materials through which you can make Boric Acid, and we all have capabilities of making it from all of them. But currently, we are using Ulexite Ore, which is the ore which comes from Turkey, and it also comes from South America, and it also can come from North America. So, there are three major continents from where these products can come from. Historically, we have bought more from Turkey sites. But we are currently working very strongly on projects and also commercialised to some extent and de-risk ourselves from any dependence on one particular location. Before coming to your other questions, I would request Harsh, because he is the one who is leading the de-risking project
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here from the board side. Harsh, would you like a couple of minutes to explain that to the group?
Harsh Malhotra:
So, the boron ore itself is really found in three places, as Mr. Kalra just mentioned, which is Turkey, South America, and North America. It is not found in any other geographies across the world. So, with an understanding that these three locations, specifically the United States, South America, and Turkey, they have effective control over the full global supply of the boron ore. So, having concentration in one or two is that we are trying to de-risk at this point. So, managing this concentration, expanding to as many other places and buying from other places is a core strategic priority that we are trying to develop for ourselves so that we can be resilient to any geopolitical changes that could arise and/or supply disruptions that could happen. So, that is definitely a strategic priority that we are trying to do, and we have been successful in doing in the past few months already, and which we are going to continue to put our efforts into.
Dhruv Bajaj:
Perfect. Again, Indo Borax is one of the largest players in the Boric Acid chemistry; however, based on our reading, the total addressable market itself is pretty small. And based on the commentary that you are giving, I do not think this might be a business that can grow at a 30%-40% kind of growth rate; however, this will be a very efficient business that will generate tons of cash flow going forward. And given the background of the promoters and the other acquirers as well, is there some plan that we might utilise this particular company as a holding company where the cash flow is generated from the chemical business can be used and deployed into seeding other ventures as well such as having higher growth in VC if I am not mistaken, is there some thought process on that or will this be purely a chemical seeding/processing business going forward as well?
Suresh Kalra:
So, I would say, Mr. Bajaj, great ideas. We are going to use that. Right now, I think we all are pretty much from the chemical industry. So, to answer your question, in India, we are making two or three large products and we are selling it, we are not selling it outside of India. So, first thing is we are trying to explore some of the lucrative export markets. While we are saying it, I am already working on it. Not all, but some of them where it is lucrative enough. Second is within India, rather than being a two or three or four product company, we are trying to find more chemistries with forward integration, and we are going to spend some more on the R&D side of it and try to introduce more products along with our CAPEX from the current products that you already know. So, these are the few things that we want
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to do. But at the same time, if there is any new venture which comes to us where we see some synergies... there are actually some synergies of course, we are not going to get into the businesses which are completely not known to us, then definitely we are going to look at that also. But I would say we are right now focusing on making our current business more robust and getting into newer geographies and getting into newer technologies which are related to the boron chemistry. That is our current focus for this year.
Dhruv Bajaj:
Perfect, sir. Thank you so much for this opportunity and all the best for the future.
Moderator:
We take the next question from the line of Vaibhav Badjatya from Honesty and Integrity Investment. Please go ahead.
Vaibhav Badjatya:
Thanks a lot for providing the opportunity. So, a lot of discussion has already happened, so, I will ask what is not already covered. So, like you have alluded to a lot of new products, so, if I want to understand your strategy in more detail, what kind of criteria do you have that this is the product which we can go for? I understand that obviously, forward integration is one criterion, and it has to be boron chemistry. But after that boron chemistry, if you have various choices, what is your decision-making criteria that this product is better, and this product will not go forward?
Suresh Kalra:
See, I will give you a very wide answer right now, Vaibhav, on this, because you know we acquired the company on 23rd of January, we are giving our first results. Of course, not that we are fully prepared with what kind of product lines will come in, but I can give you my line of vision, how we want to do it. Okay? Now, whenever you want to introduce any new products, technologies, you need to find some synergy somewhere -- either it has to be at the raw material basis, or it has to be at the operational basis, or it has to be at the customer end basis. Now, we are working on all three of them at this moment. So, I will give you an example. For example, today, Procter & Gamble is our customer. Okay? They buy our product, but they buy hundreds and hundreds of other products. So, if we find some synergy in getting into those technologies which help us cross-sell or utilise that relationship and comradery with those customers, we want to do that. Similar thing is our core competence is pretty strong in using an ore, extracting water out of it, and make a very highly technical specification-based product. If that is something which we come across, possibly we will introduce those products. So, right now, we have
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not made fully where we want to go, but we have a line of vision, and in the next few quarters, you will hear more from us about it.
Vaibhav Badjatya:
Got it. So, it seems like you are open to moving into non-boron chemistry as well if you find the synergies on the customer side piece of it?
Suresh Kalra:
Yes, "Open" is the right word. Vaibhav, you are absolutely right. We would prefer to have something closer to our current chemistry because it makes it easier for us. But if it is a more lucrative market and we believe that we are capable of entering into it, yes, we will do that. So, we are open to it.
Vaibhav Badjatya:
Got it. Understood. And secondly, in terms of this special dividend and everything you have declared, going forward, do you have any kind of payout policy in mind that you want to pay 20% or 30% of profit back and regularly pay it? So, how should we view it going forward -- will it be things as a percentage just trying to understand?
Suresh Kalra:
Great question, Vaibhav. This is something which we are also discussing internally, and we also had the discussion with our board. We have not declared anything yet. We are in the process of making a stated dividend policy, which is not declared yet, but we are in the process so that we can give better information to the shareholders. But it will be there.
Vaibhav Badjatya:
Got it. And lastly, just coming back to forward integration, so, obviously, we have Boron Acid, Boron Oxide, DOT, I am sure DOT, there is no forward integration, there are not many things which are possible, but from Boron Oxide and Boric Acid, out of the two, which line would have a more forward integration possibility?
Suresh Kalra:
Listen, this is something, again, I would not have a full answer right now because we are still exploring it. At this moment, what we understand is that the Boric Acid and Boron Oxide definitely in the steel industry can be kind of used or replace each other. Okay. So, that is one thing. But Boron Oxide has more applications, which we have not experienced, and we are trying to explore more definitely. So, instead of answering exactly what we are planning to do, this is something which is our work in progress with our sales and marketing team, and we are also hiring some consultants to take benefit of their knowledge on the subject. So, I do not have exact answer right now, but yes, we are exploring all of that.
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Vaibhav Badjatya:
So, for Boric Acid, we have seen that you are pretty strong in the steel industry, but what was the reason that we were successful in steel customers in the steel industry and not in the other industries -- is it something to do with the quality of the product or something else, I mean, I am just curious to know that?
Suresh Kalra:
Yes, that I can answer you because this was one question after I joined, I met all our top customers and that is how you learn the market. One thing which consistently almost every customer I have met in the last few months have said is that your product has the best technical specifications. Our product is used in steel industry in a very small amount. Okay? They make refractories and refractories use ramming mass. So, it is used in a very single-digit percentage of the total product which they are using for making the refractories. But it impacts the quality significantly higher. Okay? So, the input cost versus the benefits they get is completely in their favor and that is where we have been very, very strong in the steel industry. Now, I am not saying that the technical specification is not important in other industries because I am yet to explore that. But in the steel industry, anybody I have met, everybody has exactly the same answer that your product is technically very superior and that is why we plan to use our product. That was one question they all of us. The stickiness of our customer is very high. If you look at any of our customer list, I at least look at the number from last five years and our top 10 to 12 customers continue to be same. Okay? It only changes that the number four customer has gone to six and the six has gone to number three, but the top 10 to 15 customers have been same for many years, stickiness is very, very high, and that can only happen when you make a technically superior product. So, that is what we currently know. But we will try to see that maybe other industries also need a very technically high product. But that is my current guess that is why we are stronger where in our market segment than others.
Vaibhav Badjatya:
Thank you. That is, it from my side.
Suresh Kalra:
Thank you, Vaibhav. Pleasure.
Moderator:
We take the next question from the line of Saloni Arya from Molecule Ventures PMS. Please go ahead.
Saloni Arya:
Sir, I think I might have missed your commentary part on the reason why our results were really good this quarter. Is it purely a realisation perspective or was there volume growth or anything else as well?
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Shashikant Bharuka:
So, Saloni, it is a mix of volume growth as well as the better price realisations compared to last year. And with Suresh ji explained, we are getting around Rs.127 to Rs.128 per Kg in this year as compared to last year of Rs.114 and Rs.115. So, there is a better sales realisation, and we increased the quantity also in this year. There was some issue in the third quarter of FY25-26, and which may be overcome and the quantity may increase in the coming year. So, we may increase the sales realisation as well as volume increase also. So, our main product is the Boric Acid. Hope I answered your question.
Saloni Arya:
Yes, sir. Sir, next question is regarding the debottlenecking part that we said. So, with the debottlenecking and next year we are hoping to achieve Rs.250 crores, I just want to ask because since last decade with the old management basically, we have been stuck to a sales base. So, with the changes that we are doing, when can we see the shift in the base and what level are we thinking right now? And in how many years are we thinking that could happen?
Suresh Kalra:
So, how we want to get to the revenues and the bottom line this year is a combination of three or four things. Okay? One is definitely when we declare capacity and, in any industry, usually the capacity is declared in different ways. One is the name plate capacity. Name plate capacity is what when you buy an equipment, it tells you that this much it can produce, right, and then you have some of them are planned shutdowns and some of them are unplanned shutdowns. If you do a better preventive maintenance, your unplanned shutdowns are lower. Even with the planned shutdowns, you can plan it in a way that you can do it for 20-days or 15-days or 10-days. Our intent is to have almost as low unplanned shutdowns as possible. Second, we are planning our shutdowns in a much better way so that the entire planned shutdown does not become too long and that is why we plan to increase our capacities by getting five, six, seven, eight more days of production versus what we have been doing in the past. That will help us sell that much additional volumes. Second is the realisation which Shashikant has already mentioned that our realisation is better than the previous year and the previous quarter. We see the same trend is continuing so we will be able to reach higher realisations coming out of it. And third which is more long-term, is that we are trying to enter into newer product lines and try to see that we can find more usage of our products. So, for example, I just said previously that we are using more in the steel industry, but we will try to find more utilisation of our products in other industry too. So, it is a combination of all these three. Two of them we have full visibility and third is something which will be a little long-term. So, we will start seeing the benefit
of that in a couple of quarters. I hope that is something what you were asking for. Is that right, Saloni?
Saloni Arya:
Yes, sir. On those lines, on the third part that you mentioned, basically I think I heard in the call you mentioned that Boron Oxide has relatively higher number of applications and we are more interested in I.P. Grade moving assets that we have. So, can you please elaborate on these two things and what all applications are we talking about? Are there any new industries opening up for this particular product? Can you share details on that?
Suresh Kalra:
Yes. So, Boron Oxide is an established product. We are just trying to find more and more about it and right now I do not have the full knowledge about where all it can be used but that is a work-in progress. However, on the I.P. Grade I think there are various applications, but the market is not being very utilised as far as we were concerned because we were almost fully sold out in the steel industry. But we are meeting all the customers who are producing either products for pharma or FMCG. I am myself in touch with Procter & Gamble for the last couple of months and we are trying to find more applications. So, Boric Acid can be used in various applications for which we need to run long tests with these companies which we are initiating now. So, this is something I cannot divulge with exact information at this moment because these are projects in progress. Once they are either way fully successful or not successful, I will be able to share more details about that, Saloni.
Saloni Arya:
Thank you so much and that is it from my side. Wish you all the best, sir.
Suresh Kalra:
Thank you. So nice to hear.
Moderator:
We take the next question from the line of Puran Mangililal Tak from Oracle Capital Service. Please go ahead.
Puran Mangililal Tak:
So, first of all, congratulations for the result. My question is mostly on the DOT. So, what is the average realisation per metric ton of the DOT? And in the presentation, so it was mentioned that the company is in discussion with the agreement so they can supply that fertiliser or the particular nutrient to the fertiliser company.
Suresh Kalra:
So, I will give you a little bit brief about DOT because it is a very interesting product and I see a lot of possibilities of growth here. So, DOT is basically a micronutrient fertiliser, not a regular fertiliser. And it is used in budding plants, vegetables, fruits, even tea gardens. Okay? And it can be used all over India but so far where we talk
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to people is in Maharashtra, Gujarat, Andhra Pradesh and Assam where a lot of potential and current customers are scattered in. Currently, the market size of this product is about 8,500 tons in India and it is growing. We currently do 1,000 tons, so it is about 7%-8% of the total market. So, we have a strong possibility of growth. As I said, we did about 600 tons two years back, this year we did about 980 tons and next year we are planning to go to 1,500 tons or so. So, it is a growth market and can even go further. Now, current realisation, to be very specific, what we have is about Rs.150 a kilo of this product. And we are trying to learn more and more about it. We are currently a small player in the market segment. So, we can follow the market guidelines of how the market is, but we will try to learn more and try to see if this realisation is correct or there is a possibility of improvement here. Right now, Boric Acid is being used also as an ingredient in making DOT, which gives us definitely an edge over any other player in the market. So, that is the benefit which we have.
Puran Manglilal Tak: Okay. Another point is in the presentation; it was mentioned that we had import parity cost. So basically, we are producing at a less cost compared to the export price. So, how much is different like what is our value gap?
Shashikant Bharuka: I think we have a leverage for opportunity and there is a tie-up with the fertiliser company and we got benefit in price and quality for these two issues where the benefit we are getting in.
Suresh Kalra: So, the benefit which we also have is that because there are two major raw materials which are used in this product and one of them is manufacturing cost. So that definitely gives us an edge because anybody who is importing has an additional logistics cost and some duties involved in it. So, we have that benefit. We do not fully quantify so far being a smaller player in the market how much is the exact benefit, but we definitely have a benefit over this, and we will be working on it to see what the right price for this product in the coming quarters is.
Puran Manglilal Tak: Okay. Another question is from a general point of view, as the promoters share is 100% pledged, so at what portion of debt is pledged through shares? So, in the case of deep market correction, so there is a chance that promoters share is going to sell off. I just wanted to know loan-to-value ratio?
Harsh Malhotra: Do you mind repeating the question again?
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Puran Manglilal Tak: So, my question was, what is a loan-to-value ratio like how much portion of debt is pledged to the shares which are holding in Indo Borax?
Shashikant Bharuka: We have zero debt in Indo Borax.
Puran Manglilal Tak: No, Indo Borax has taken Rs.400 crores of debt to finance.
Suresh Kalra: Mr. Puran ji, can you send this question to [email protected]? They are our investor relations, and they will give you an exact answer to this question.
Puran Manglilal Tak: Okay, thank you. All the best.
Moderator: We take the next question from the line of Rahil Desani from MAPL. Please go ahead.
Rahil Desani: Yes, thanks for the opportunity again. Just on the DOT product, the capacity for DOT was added long back. Any particular reason that it is not utilised and it is rather very lowly utilised and even now we are saying only 1,500 tons from 1,000 tons right now, while this is a completely imported product from what I guess. So, if you can share what is going on right now, what sort of customer interaction is there, some sort of rejection of quality issues?
Suresh Kalra: Listen, I would not be able to say anything which was not our responsibility. I am sure every businesspeople have their own set of decision-making, and it might be right for what they did. What I can only say at this moment is for the future, it is a story of transformation for us. We are looking at every possible product, every possible geography where we can grow. I see and my team see DOT as a growth area and that is where we are focusing on. Now, I cannot say that we can double the business in a year's time. Maybe we can, but right now we have taken a target of even increasing 50% of the business in a year's time and that will continue to grow high double-digit in the coming years. But how previously it was done, it is very difficult for me to comment on. But, yes, it would be a focus area for us.
Rahil Desani: Fair enough. Very clear. Secondly, regarding the demand part again, there is a lot of CAPEX ongoing in the steel industry. How should we think about the increased demand for us considering majority sales is for steels and refractory industry? And secondly, you also said that we are exploring the export market. So, considering both these factors, do we want to expand the boric as a technical grade capacity even further since you have said that we are almost fully utilised there?
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Suresh Kalra:
That is also part of the discussions we currently are having with the leadership team and with our board of directors. We originally did not think that we would be needing this expansion for the next couple of years. But as you rightly said, and as we also see, there is a growth which is possibly coming, and we possibly need to expand ourselves. So, it is currently an active discussion within our leadership team and board of directors.
Rahil Desani:
Got it. Very clear. And as of date, out of the 20,000 capacities of total boric acid, how much do we want to allocate for the I.P. Grade in the next one to two years? Right now, it is a rather smaller number like you said.
Suresh Kalra:
Because I.P. Grade has a better realisation, if given a choice, possibly I would like to convert almost everything into it. But yes, that is not an opportunity which we have. So, it is always a combination of where we are getting a better price realisation and where we have customer commitment, of course. So, customer commitment and better realisation would be the two criteria on which we will be moving how much we allocate to the I.P. Grade.
Rahil Desani:
Got it. And for Boron Oxide, you said the realisations are 2.5x of the technical grade. So how much higher are the realisations in I.P. Grade?
Suresh Kalra:
At this moment, we are about 10% to 15% higher realisation in the Boric Acid I.P. Grade, because it is the same equipment which you are using, you just have to work strongly on the specifications because it goes into the applications which touches human body. But otherwise, manufacturing process remains the same. It is more of specification-based because of which it becomes an I.P. Grade.
Rahil Desani:
Got it. Very clear. That would be all from my side. Thank you very much for answering all my questions.
Moderator:
We take the next question from the line of CA Garvit Goyal from Serene Alpha. Please go ahead.
CA Garvit Goyal:
Sir, in balance sheet FY26, the company has reported other financial assets, current as well as non-current of around Rs.70 crores. So, could you provide more details like what are the areas we have invested this amount?
Shashikant Bharuka:
I think these are the FDs which were getting from previous promoters and it is a depending on which closes maturity in less than 12-months and in more than 12-
months. Maturity more than 12-months will go to non-current financial assets and maturity in less than 12-months is part of the current financial assets. And it is going to be decreasing in future because we are not investing in FDs. These are old FDs which we got from the previous management.
CA Garvit Goyal:
So, what the new management is thinking about like they will be keeping it in the FDs only or will we be exploring more other opportunities to invest in to pass the funds maybe for a near-to-mid-term?
Shashikant Bharuka:
If you see the balance sheet, our investment increased by Rs.130 crores. Whatever maturity come from the FD, we are investing in the mutual funds, because we want to remain in more liquid capacity given our CAPEX expansions, new opportunity. So, FD is like limited liquidity. We are keeping money in the short-term investment only.
CA Garvit Goyal:
Got it. Thank you sir.
Moderator:
We take the next question from the line of Vaibhav Badjatya from Honesty and Integrity Investment. Please go ahead.
Vaibhav Badjatya:
Hi, sir, thanks for providing the follow-up. So, in terms of pricing of our product and raw material, I am sure it is obviously importing parity. But how does it work in terms of international pricing -- is there any benchmark or something at which the transactions are done, basically, how do we track the pricing of your product if we want to track the pricing of raw material like in Boric Acid in the international markets?
Suresh Kalra:
Sorry Vaibhav, you are asking about the opportunities to export out of India, is that the question or did I hear it wrong?
Vaibhav Badjatya:
No, that is not the question. The question is how do we price our product? So, obviously the pricing depends on what is the industry level pricing. So, what are the benchmarks for the industry level pricing that we use for our products?
Suresh Kalra:
Right. I understand your question. So, pricing for that matter, I think it is across industries. Pricing is always a factor of either your raw materials or how market perceives your product as or a gap of demand and supply. So, these are the three major things which define any pricing strategy. Okay? We always command a premium in the market versus others because our quality is perceived to be and I
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would say, yes, truthfully it is definitely better and historically has been said and confirmed by our customers and that is why we always have a premium in the market. So, that is one reason why pricing is slightly higher always than the market. Second is how you are buying your raw material also makes a difference because if you are buying it at the right time and today is such an uncertain geopolitical situation, if you buy a product today versus you make a decision two weeks later, makes a huge difference in terms of what your costing is, and accordingly sometimes you will price it higher. Third is of course the demand/supply gaps which we all are seeing for various product lines. So, for us as a standard thing, we would like to make and we are confident that this year we are maintaining our price, our costing strategy at a stable level and we make our pricing based on how the market is ready to provide it. Okay? So that is currently our pricing strategy is what we are seeing.
Vaibhav Badjatya:
Right, but my question was something else. So, for example in aluminum industry there is an LME index which everyone follows the price for the aluminum, similarly there are indexes in steel industry, iron ore industry. So, any index that is being used in your industry to price this product like Boric Acid or any company any other international company's prices is being used as a reference price for your pricing is what I am asking?
Suresh Kalra:
So not known to us. I know what you are saying here. I mean depending on what industry you are in you always have indices pricing and you have indices plus and minus. In this industry there is no indices being used and so it is purely based on which market you are in. So, some geographies have different pricing strategies. If you go to South America or you go to Europe and you go to US and India there can be different dynamics of the local pricing strategies which follows, but there are no global or local indices on which the pricing is based on. It is mostly either cost plus and then market plus and minus. That is how the pricing is derived.
Vaibhav Badjatya:
Is the situation same on the raw material side as well for the pricing?
Suresh Kalra:
No, that definitely plays a role and that is what I am saying. For example, I am very confident we have a chief commercial officer who has joined us from the chemicals industry, and he is one of the best purchasers I have seen, and he is currently in our team. I am very confident that is helping us making the right decision at the right time for our raw material which is giving us an edge over our competition. That is what we currently believe.
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Vaibhav Badjatya: And the raw material contract is generally fixed in terms of pricing for the whole year or how does it work, is it quarterly pricing or -?
Suresh Kalra: So, it is a mix. There are customers who look forward for a quarterly pricing and then it goes both ways because when it goes up or goes down you maintain the price and there are customers which work on a monthly pricing. So, we have a good combination of short-term and medium-term customers. Right now, in this industry for many years they go yearly contract where you can have a fixed pricing, etc., which is good because the fluctuation is high. We usually have monthly and quarterly pricing which has worked with our customers which is how the industry is also governing.
Vaibhav Badjatya: I was talking on the raw material side. Is it fixed for the whole year or quarterly or how does it work?
Suresh Kalra: So, that is also a combination. So, for example, the ore you can buy both on yearly, six-monthly and quarterly basis. We also have to hedge ourselves because if you make a decision for the whole year then you have to live with it for the whole year and if you make a decision only for month then it is too much fluctuation. So, we make always a more aware call in which we decide whether we want to buy this time for a quarter or for six months. As the market is very volatile today, we are trying to safeguard ourselves for minimum two quarters every time when we are making a pricing purchasing decision.
Vaibhav Badjatya: Thank you. That is it from my side.
Suresh Kalra: Thank You, Vaibhav
Moderator: We take the next question from the line of Ashish Parikh, an individual investor. Please go ahead.
Ashish Parikh: It is heartening to see that the professional management has been appointed by the promoters, and it is also very warm that a concall was held for investors. Now sir, I joined a little late. Could you provide me the revenue and EBITDA margin guidance? How do you see the company growing from here?
Shashikant Bharuka: Ashish, you asked a question, but it is part of our insider trading and other policies. We are unable to give any numbers on absolute basis. However, keeping in mind the strength of business, the category of products and the sector we are catering
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along with the current geopolitical situation, we remain confident that we are registering the numbers and performance higher than the current numbers in years to come. So, the current quarter may be good as Suresh sir said than the previous quarter, but absolute numbers we may not be able to share with you.
Ashish Parikh:
No. Any roadmap that the management has set internal targets like how in future years we plan to grow in percentage terms, EBITDA margins which we could sustain and improve upon?
Suresh Kalra:
Broadly, Ashish, I can say that. Listen, we did Rs.175 crores of revenue in the previous financial year, and then the last financial year which closed in March we did Rs.215 crores. As you said, you joined a little late. I am not giving an exact number, I am saying we are moving between 20% to 35% of revenue growth, it can be to Rs.40 crores to Rs.50 crores to Rs.60 crores or something like that. That will be coupled on the basis that there will be increased realisation, slightly higher volumes by our debottlenecking and operational efficiency and some new products which we are going to do. So, that is what current guidance is. As far as the quality of earnings are concerned, we are definitely looking forward to maintaining our EBITDA percentage margins or get better. We definitely are not looking forward to lower down the quality of earnings which we have today. That is the guidance which we can provide you at this moment.
Ashish Parikh:
That answers my question, sir. Thank you so much.
Suresh Kalra:
Thank you, Ashish.
Moderator:
We take the next question from the line of Deepak Gupta, an individual investor. Please go ahead.
Deepak Gupta:
Hi, good evening. Firstly, congratulations on the takeover and the results. I wanted to ask a question regarding the Boron Oxide product that you have. So, what are our plans regarding this product? Is it an item which is part of the import substitution? If yes, then how exactly do we plan to take this up with regard to wherever the material is coming in right now? And my second question is what percentage of our sales would be Boric Acid and how do we plan to ramp it up from here? Thank you.
Suresh Kalra:
Sure. So, currently, Boric Acid, as I said earlier, is a significant portion of our entire business. DOT is 8% to 10%. So, 85% to 90% of our current business is Boric
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Acid. Okay? As far as Boron Oxide is concerned, as I said before, Boron Oxide has various applications and definitely it is one of the products which can replace Boric Acid. It does not provide any additional benefits, but yes, you do not have to extract water out of Boron Oxide. It is basically anhydrous product. Okay? That is the benefit which customers have. So, what we look forward is that we have a product for the customers who want anhydrous product or a customer which wants standard Boric Acid and that is why we want to introduce Boron Oxide also. Okay? And over and above, we are going to find newer applications for that product, which currently we are not very well versed with. Okay? So, that is our current plan. Within this financial year, we look forward to not only initiate, to some extent, complete what we want to do as a CAPEX in Boron Oxide, but definitely within this financial year and a few months of the next financial year, it should be complete. That is our current plan.
Deepak Gupta: Okay. And sir, what would be the capacity in terms of metric tons for Boric Acid currently? As you had earlier said that you are running on peak capacity right now.
Suresh Kalra: So, Boric Acid, our plant capacities, nameplate wise, it is supposed to be 20,000 tons, but historically, we have been close to 15,000 tons to 16,000 tons because of planned shutdowns, sometimes raw material unavailability, and things like that, which I usually call them LEAF in efficiency. Okay? So, we look forward to getting better and better there. So, we are trying to increase 1,000 tons to 1,500 tons of Boric Acid, definitely coming through our operational efficiencies, and better planned and balanced planned management rate. Okay? And I answered the question earlier from some other participants that we are also looking at a possibility of expanding in Boric Acid. It is still a debate which we are having internally with the leadership team and our board of directors, but that is definitely one of the ideas which we have in the near future.
Deepak Gupta: Okay. Thank you so much.
Suresh Kalra: Pleasure.
Moderator: Thank you. Ladies and gentlemen, with that, we conclude the question-and-answer session. I now hand the conference over to Mr. Kalra, M.D. & CEO of Indo Borax & Chemicals Limited for closing comments.
Suresh Kalra: Sure. Thank you. Great moderation. So, first of all, thank you to all the participants. Thank you, Shashikant, Harsh for taking this call.
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Before we close, I would just like to say that this was a very engaging conversation and really thankful for your thoughtful questions. It not only was information from our side to you, but it is also a lot of ideas from you to us. So, I really appreciate that. As we also discussed today, we are pleased with our performance this quarter. We remain committed to delivering sustainable long-term value. Our strategy continues to be on track. We are confident in our ability to navigate headwinds while capitalising on growth opportunities. I said a couple of times already, but I want to close definitely with a note on this, that it is a story of transformation. It is a new leadership team. It is a very respected board. I would encourage all of you to go and look at the board of directors, which we have, a very high transparency and integrity-driven board, which we have. We are very high on processes and compliances, which you will also see in the coming quarters. I also promise here to continue to share transparent updates and to maintain open dialogue with our investor community. Our investor relations team, thank you. They remain available to address any follow-up questions, which we have seen today and if we are not able to answer them. With this, I will say, thank you once again for your time, for your continued support, and we look forward to updating you on the progress in the coming quarters. Wishing you a great day ahead. Thank you.
Shashikant Bharuka: Thank you.
Moderator: Thank you, sir. Ladies and gentlemen, on behalf of Indo Borax & Chemicals Limited, this concludes today's session. Thank you for your participation. You may now disconnect the call.
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