Clean Science & Technology Q3 FY26 Earnings: Growth, Challenges, and Strategic Outlook

Ladies and gentlemen, good day and welcome to the Q3 FY26 earnings conference call of Clean Science and

Technology Limited. We have with us on call Mr. Siddhart Sikchi, executive director and promoter, Mr. Sanjay Paral,

CFO and Mr. Pratik Gora, president commercial. As a reminder, all participants line will be in the

listenonly 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 star then zero on

your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sedat

Sikshi for opening remarks. Thank you and over to you sir. >> Thank you so much.

>> Good evening everyone. We thank you all for joining our call on a Saturday afternoon. I am happy to

connect with you all to discuss the business performance of the company for Q3 FY26.

Let me first start speaking about the business environment. There have been challenging conditions

which we witnessed in quarter 2 have continued during this quarter as well. The current quarter was marked by

challenging and uncertain business environment driven by muted customer offtake, pricing pressure and tariff

related uncertaintities along with incremental capacities of some of the products especially in China.

We remain focused on customer engagement, long-term growth and operational discipline while maintaining

the market share amid these evolving market conditions. On positive note, the house business

delivered robust Y growth of 55% driven by a favorable product mix and higher contribution from costefficient

higher derivatized health polymers. With the commercialization of our new hydrochinone and catakol plant, we

expect immediate margin benefit across the downstream products such as TBHQ and veretrol.

Let me speak on the standalone business performance on Qoq basis. On Q basis, the revenue

mod moderated to 180 crores largely due to lower sales in certain established products.

The IITA and PAT margins are at 40% and 29% translating into an IITa of 72 crores

and a PAT of 52 crores. The Q on Q decline in revenue was primarily led by softer volumes in some

of our selected products which also led to temporary reduction in the contribution of our top four

products. Consequently, top four products contribution to standalone revenue

declined to 75% as against 80% in the last quarter. Coming to the YI comparison

on Yi the sales declined by 21% during the quarter. This revenue decline was primarily led

by decrease in sales volume. The profitability margins impacted on account of change in product mix

on 9 month yi basis the revenue declined by 10% that is from 668 crores to 602 crores.

It was the reduction in revenue was attributed to a loss of a key customer in one of our product in cosmetic

section. also pricing pressure and lower offtake in act segment. We believe we are well positioned to

protect market share and drive sustainable growth over the long term. on consolidated business performance on

sequential basis revenue moderated by 10% to 216 crores and the consoita and pat margins are at 33 and 21%

respectively which stood at 72 crores and 46 crores in the sales profile the segment wise

the performance chemical has been the largest with 72% pharma agro at 21 and FMC PG was 5%.

The performance segment was most impacted with volume le decline in sales across MEQ and BHA. However, please note

we have not seen any domestic competition in these products. The FMCG segment witnessed volume

decline in a product called as for MAP. Key business developments in the house business volume showed

steady improvement during the quarter driven by better demand traction and effective execution.

The health business continued to grow sequentially supported by a healthier product mix and increasing contribution

from higher margin products. Building on this momentum, this quarter marked a meaningful milestone for us as

we achieved a bit break even in the subsidiary clean phenino limited. We are encouraged by the progress and

remain confident in sustaining this momentum. A little on capeex update. The

hydrophenone and catakol was commercialized in the month of December and customer trials are ongoing.

With commercialization of these products, we will have immediate moderation in raw material cost of both

the end product that is TBHQ and veratrol. The commercialization of the

hydrochinone plant and the expansion of TV HQ are strategically aligned with our one with our purpose-driven growth and

value optimization strategy and are expected to enhance existing product margins.

Further capex timeline of performance chemical 2 is as per plan and we expect to commercialize in Q1 FY27

with our reworked process. We have sent newer samples to customer for our pharma intermediate DHDT.

While the testing is underway, we expect to have clearer outcomes over the next coming few weeks.

During the last 9 months, the capital infusion in subsidiary has been 150 crores with now the total investment in

subsidiary around 700 crores. On account of corporate governance, in line with our commitment to dividend

payout policy, the company has approved an interim dividend of rupees two per share.

We are also very happy to announce and welcome two new board members, Mr. Raj Kamill and Mrs. Palavi Gokle as

successors to our earlier retiring uh independent directors. With this we continue to uphold the

highest corporate governance standards. With this I conclude my opening remarks and look forward to the Q&A. Thank you

so much. >> Thank you very much. We will now begin the question and answer session. Anyone

who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove

yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a

question. Ladies and gentlemen, we will wait for a moment while the question cue assembles.

Operator request has been initiated. If you'd like to cancel this request, please press star zero again.

The first question is from the line of Jason Sans from IDVI capital. Please go ahead.

>> Yeah. Uh sir, thanks for taking my question. So first question just pertains to um you know the I mean the

two capexes which we had mentioned. Now you have spoken about performance chemical 2 and one. So uh going back of

course you were investing 1.5 billion in both of these projects. So I just wanted to know sir uh I mean according to your

internal I mean calculations how much revenue do we expect uh these both these projects to you know to generate in 27

and 28 just uh as a broad outline I know you have spoken about an asset turn of two for both these projects but just 27

28 just if some specifics could be given. So typically in these fluid market

conditions you would avoid giving any forward-looking statements but to just pinpoint uh with the performance

chemical one because of the prices reduction overall >> uh the the at 100 or 80% capacity

utilization we are looking at a revenue of 260 crores which was earlier 320 odd crores and uh performance chemical to

the uh KFEX is under I mean we are still under the KEX phase and the facility will only begin by May June and we

expect after teasing issues customer approvals we should only see revenues in Q4.

>> Okay. So performance chemical 2 will be commissioned by May June and then probably Q4 you'll get some revenue from

there that right >> not full revenue of course staggered revenues.

>> Yeah staggered revenue. Okay. Okay. Okay. Okay. Sure sir. And so again now with regards Yeah. And with regards to

hall with regards to halls I'm sorry the hindered light stabilizer. Just wanted to understand you know uh you know how

much volumes and realizations are we targeting for 26 and 27. Now 26 is almost done but how much volumes and

realization in dollars are we targeting for 26 and 27. some advice. I mean for this year we are

already at 2,000 tons of volume for 9 months and I mean uh I mean you'll be happy to note that year on year we have

reported a 55% growth in hand sales for this particular quarter >> right and our target remain like uh

that's typically with any new product which we are commercializing at least around 50% of utilization over 2ear

period now has been a different case because this is a totally new pro zone which we have entered into but our

endeavor continues to remain to stand by that guidance. >> Okay. Okay. And just a realization would

be around $5 that that range or five five $55 or are we looking at a lesser realization?

>> Our blended portfolio realization for this quarter has been 425 rupees a kg 425 per kg. Okay. predominantly the

sales is being driven by H 770. >> Okay. >> Sure. Sure. And just lastly, I just

wanted to understand I mean you just spoke in your initial comments about uh I mean probably losing a customer in the

cosmetic segment. Just I missed that comment. Uh was it in the performance chemical segment or or what what segment

was that? CG segment FMCG segment where a product called form map where we've lost a customer in China and due to

secondary impact of tariff of our end customers in India they have lost their business in United States and hence we

are impacted by them as well. >> Sure. Sure. Thanks. I have more questions that'll come back in the room.

Thank you so much. Thank you. >> Thank you. >> Yeah.

>> Thank you. The next question is from the line of Sanjay Jen from ICICI securities. Please go ahead.

>> Yeah, good afternoon Sat. Uh thanks for taking my questions. Yeah, I got few uh let's go segment by segment. Uh first of

performance uh you did mention two things. One uh you said MHQ and HS has a lower volume but you also mentioned that

there was no competition in the domestic market. uh at the same time in the opening remark you said that China has

started producing some of these molecules. Uh can you give us a complete road map on performance established

molecule it is China which has got aggressive and hence we have seen MEHQ BHA volume decline or was it general

demand slow down u what's your take on NHQ and DHA? >> First let me speak on MHQ. So the reason

of price drop is reason is because overall pricing of hydrochinone which is in the old process the conventional

process to make MEHQ starts from hydrokinon now because the Chinese have lowered the

prices of hydrochinone all-time low price and hence the conventional process of hydrochinone to MEQ makes me MHQ also

at a lower cost point to attribute to this we have no choice but to lower our prices of MHQ to compete with these

emerging players of hydroken derived MESQ in China that is point number one

>> okay >> yeah but but we said that there's still no price decline what you mentioning the

price decline in MH2 is to hit our P&L or it's already there in Q3 >> it is already mentioned in Q3 three. So

the >> it's already we have already taken cut 13 cutting uh 23.

>> We have taken that we have taken that we have reduced the prices because the endeavor was to keep volumes intact but

uh so this has happened BHA no there is nobody in China. uh when I mentioned about domestic player I was pertaining

to uh the players which I announced coming in MEHQ or BHA or I call M for match that is what I meant that we have

not seen any competition from these players. So there is no volume loss to these players is what I wanted to

mention on the call. >> And reason for M BHA being slower for us. Is it pricing driven or it is more

volumedriven unlike any? >> Uh the BHA we've reduced uh it went lower pro in mostly in in quarter three.

It is a very typical standard because the drop has happened in North America. there was some tariff related concern

and also because a lot of customers prefer to have lower stocks at the end of December month. So that impact is not

as huge as the other products >> and you mentioned about China starting certain product you mentioned about HQ

and MHQ value chain. >> Yes. and form which customer in China and also indirect tariffs which has hit

our customer and hence we are hit by that. >> Got it. Got it. U now we forward

integrate MHQ to make BHA. Can that be possibility in China as well now that they have started manufacturing uh MHQ?

The possibility in China is very difficult to mention today. >> I I I agree. I agree s I know it's very

very uh open but have you seen any sign is my question. Sorry putting it so open on it.

>> No no no there is nothing today. There is nothing today. >> Got it. Got it. Uh now now coming to the

uh FMTG last last quarter you mentioned that probably the format customer is also looking to backward integrate or

it's purely the US thing which has hurt or the customer not going to backward integrate sometime can he come back or

that possibility is ruled out >> no I mentioned even on the last call and I'm re- repeating it again that customer

I think is dead I mean it's lost for us because they have backward integrated so that remains for China. However, the

Indian customers and the customers in other parts, the reason is because say our end product of format is a benzone.

Now, AO benzone from India has a tariff of 55% in the United States. So, all the Indian customers who are buying has

slowed down dramatically because of this severe impact of tariffs from the US. So what is the revenue hit from the

Chinese customers? So we know that that is a permanent loss and remaining can come back

>> for customer wise product wise or customer wise we are not comfortable sharing.

>> No that's fine. I was just from modeling perspective how much should I take as a recurring loss and how much is resupable

but but that's fine. That's fine. But yeah, it seems to anchor that you can take this quarter as a run rate going

forward at a >> this quarter as a right run rate to look at, right?

>> Yes. Yes. Yes. We not factoring it for the customer loss in this run rate. >> Okay. Uh now uh switching to HQ and

catacol uh HQ we will use obviously for DBHQ and uh the aggro intermediate. How much uh will be capital demand for HQ

for us? That's number one. Number two, Catacall. What are we planning with that product?

>> So, Catacol the current plan is to of course uh make our own in-house veratrol which anyways we are making. We are also

talking to companies within India who are uh buying catacol to make some of the derivatives because if you uh there

is no current I mean I mean no current production happening of catacol within India at the moment at the moment. So we

are also talking to these customers within India whether we can have a contractual arrangement with them. So

that are the two applications and also we have started to export we have recently got some orders from China to

export catakol and that you shall see starting from February itself it largely goes into making I think used

to make it in a large quantity doesn't make it anymore in India. No, I'm not aware of what is happening with them,

but I just think uh probably uh I mean I I I have no comment on the competition but I don't see lot of catacol available

in uh the market available and all is imported currently from China. If you see the import data currently all the

catacol is imported either from China or by salv. So this is a market which we want to uh capture first being the local

player and uh giving services like just in time to the customers. >> That's fair. On on HQ that entire HQ we

will uh we will use in house or or we will also have HQ to sell in the market. >> No no we will have a lot of HQ to sell

probably we will be only using about 15 odd% for our own captive and the balance will be sold in the market. that is both

international and local. >> Got it. Got it. Um that's great. That's rich. I think I got

all my answers. Just one comment on ITA. I know you mentioned that it's quite fluid and uncertain time and you don't

want to give any guidance but at the start of the year you mentioned that 40% AITA margin at console was something we

were aspiring for. Uh we have hit 33. What should one look at an aita margin for this year

at the consult level? >> I know I know I understand but with the way the pricing are being driven by the

Chinese um the way things are also with the tariffs the uncertaintities which we are seeing you know it is it would be

appropriate to wait for at least for a quarter to really understand where we stand. So probably in the next quarter

or the end of the next quarter we can have this discussion please. >> No that's that's fine sir. Thank thanks

for answering all those questions so patiently and best of luck for the coming quarters.

>> Thank you Sanes. >> Thank you. The next question is from the line of Abijid Akala from court of

securities. Please go ahead. >> Uh yeah hi good afternoon. Thank you so much for taking my questions. Um so uh

maybe just to start with the volume versus price breakdown you know of the revenues this quarter if it's possible

to share that please on a Q and Y basis. So on Q or Q basis the volume decline has so out of the 13% decline majority

is by volume decline and on YI basis out of the 21% the volume decline is 19% whereas the price realization is 2%. So

majorly it's volume decline. >> Got it. Thank you. And uh just on has uh on a sequential basis what would the

volume trajectory have been like um 3 week versus 2k. So uh officially on sequential basis we

have witnessed 6% growth in volume. So this quarter we have almost uh crossed 800 tons in volumes almost 810 tons is

the sales volume and just to add over there uh the product mix has also improved meaning

944 is now almost contributing 20% to the high portfolio >> okay so on a revenue basis uh how much

would could the growth have been sequentially enhanced sequentially 56%.

revenue as well is it volume as well as revenue >> volume last quarter was 760 tons this

quarter it's close to 810 tons >> yes okay and um just to understand you know this tariff impact which is

happening because of destocking I guess primarily by customers um so across the major products that we have um you know

what categories of customers are these exactly I mean in any HQ or uh uh you know I don't know BHA Guya call

as well but what categories are these and are we seeing any maybe green shoots in terms of their demand in the new

calendar year >> so I think uh there are I mean this is there are multiple factors there I think

there are some reasons are also impacting the sales in North America as well as in Europe also because their end

product could also be impacted by competition from the Chinese. Okay. So that would have also led them

to cut down their production which implies that their offtake has also reduced which is which is contri I mean

that is what completely impacts us as well because if their contribution or their sales uh has reduced purchases

have reduced so that impacts our sales that is one level and of course the second is with the uncertaintity which

remains on our products on tariff the customers are very careful in deciding when to order and how much to order. So

these are two impacts which we are seeing. Whether this will improve, I think with tariffs not going anywhere.

So that impact of tariffs still remains and the prices which currently we are seeing in the chemical market segment

primarily led by the Chinese is also I think might remain for the quarter or two. So

the impact would be at least continue for the next two quarters if not more. >> That's clear. Understood that. And uh

just last couple of months from my side, one is um with regard to this four map um you know as and when maybe demand

comes back from uh you know the the customers that have been impacted by Paris would that be adequate to sell out

our full capacity despite the loss of the customer we have had or will we sort of need to you know

>> so no a lost customer will I mean whatever volumes we used to make for him or that customer that volumes is lost is

lost others might not be able to recover their volume as well as that volume. So I think we would be seriously

evaluating what can we do out of that facility which of course we are working on or making something interesting out

of these products so that we can keep utilizing these facilities. >> Got it. And uh the last one from my side

is uh actually regarding the uh promoter slide in the presentation. Uh you know the title says strong visibility on

longevity of promoters engagement in the business. So uh you know just wanted to seek your perspective on uh whether we

could interpret that to mean that uh even after the expiry of the three-year lockin period uh that uh you know there

will not be any further uh OFS from the promoters or you know any any comment you could offer on that point. Of

course, of course. So, of course, the promoters I mean though there was a three-year period or so, but of course,

I mean all all of the promoters are equally engaged in the business and all want to work towards the well-being of

the company. So, there will not be in my view there will not be any further dilution by the book family in the next

couple of years. >> Yeah. But I guess the locking was anyway for 3 years. So I guess the question

pertains to beyond that. Um so any thoughts beyond that as well? >> See I it it's it is a very uh subjective

decision by the family. I mean in fact the B family. I'm I cannot really comment but but

>> unlikely that they will even sell beyond 3 years and not in these markets which I'm sure you understand. So I think it

is a it can be a delayed process by then. >> Got it. No thanks. Really appreciate

your frank answer to that. Thank you so much and wish you all the best. >> Thank you so much.

>> Thank you. The next question is from the line of Ankural from Access Capital. Please go ahead.

>> Uh yeah. Hi Sat, thanks for the opportunity. Uh first question uh you know on the the geographic breakup uh if

I look at the the Q3 numbers in specific uh domestic demand slowdown probably was a bigger factor here. If I look at 9

months obviously China is also a contributor here. Uh so any thoughts from a you know demand uptick both uh uh

in the international markets as well as on the domestic side. So domestic

first let me understand the international international yes definitely both in Europe and US we have

seen uh decent uh decline closer to 15 16% uh in these markets as I mentioned right now it is because of two factors

one is tariff and other is whether they're being impacted by the global acrylic acid prices which have come down

and they are at its all-time low point so if that is the reason that is why the Europe and the uh sales are down. Uh in

terms of uh India these were just campaign related cycles I think which have moved

or postponed and it is a very uh customer ccentric thing. So uh when these ATM cycles come back uh probably

these volumes will again come back but we have not lost the volumes. I just want to repeat this the volume is not

lost it is postponed. >> Sure. And uh just you know on on the volume bit uh is it largely the macro or

is there a risk of you know the backward integration what we saw in format also playing out in uh in some of our you

know leading products there. >> See the leading products there are you have to understand these are performance

chemical. So these are again as I mentioned these are performance chemical which are so an acrylic acid is the

biggest example where MEHQ a,000 ppm meq or a 2,000 ppm hydrophenone is used. So a backward integration to these would

not make any sense to the buyer I mean to the customer. This was particularly in a particular example of form map

because a benzone has 60% of the cost of raw material depends on four map and hence it made probably logical sense for

them to do so but not in other segments. Uh okay so so it's largely the end product uh driven demand which is

slowing down and possibly maybe a couple of quarters and then there should be some some leg up there.

>> Absolutely. and and uh another thing on the the pricing bit uh you know given you know what you what you shared on the

China bit as well the pricing in the overall let's say H value chain uh >> right

>> presuming these prices are what they are let's say even one year down >> right

>> uh how how what will be your thoughts in terms of uh you know the cost economics for us or probably the pricing and

whether you know these margins probably can hover you know in this range only going ahead

If everything remains the same then this is what is going to happen. I mean if your question is if prices of finished

good is going to remain at this point assuming the raw materials are also at the current I mean the oil prices are

also at low point. So if this continues for two quarters then the number remains the same over the next two quarters as

well. Right? >> So so my my question was more like let's say you know let's say three four

quarters out the volume growth recovery comes back but the pricing is what it is. Uh how how much is there further

sort of you know scope for us to probably improve our costing in terms of improving the margins or probably it's

only the operating leverage which will play out uh on on those >> will play out. we will try and optimize

some of the costs. So these are initiatives which we are taking constantly on trying to improve the

prices but again I mean whatever we do we cannot I mean because these are so squeezed out products for us that I

don't see anywhere that we can do some magic and reduce the prices by 10%. So it'll be very marginal what I can do but

rest the prices are currently driven by the uh the world market itself. >> Sure. Uh fair enough. And uh just lastly

on health uh how has been the geographic mix now? Uh you did mention you know the higherend products you know seeing some

pickup uh which is driving their beta break even as well. uh how should we see >> is domestic currently Ankur 70% is

domestic 30% is international but you will start seeing as we move in quarter 4 and then subsequently in 27 this mix

will start will start changing and we expect the exports to quickly start uh start ramping up

>> yeah we were waiting for some product approvals to come in from from Europe and other countries so

>> yes we have got some of these approvals and uh in fact in month of January also you will start seeing lot of shipments

happening in the United States but uh yeah you will start seeing more action in uh the export markets

>> okay uh that's it for myself thank you and all the best >> thank you so much Ankur

>> thank you the next question is from the line of Jooshi from Nama please go ahead >> hi sir thanks a lot for the opportunity

uh The first question on uh MH I mean you did explain quite well as to how uh NHU prices have come off. Uh but sir the

entire let down in HQ prices would also be a function of phenol prices coming off. uh would it be right to assume that

with phenol maybe pricing cycle going higher uh HQ prices will also eventually be uh uh on the higher side and you will

have the uh have the MHQ prices also going upwards. Uh so is this like a very transient situation uh a slight

extension to the same question like you mentioned before uh HQ also is used as a polymerization inhibitor. Uh so is there

a down is there a downtrading that is happening from MEQ to HQ which might have uh aided into this volume loss?

>> No no no okay there are a couple of questions you asked. Let me start by the last one. See these processes of

interchangeability of performance additives is not >> I mean I'm sure people would have done

this in the past but these are now set rules of the game. So I don't think those shift has happened that people

have replaced any HQ2 to HQ. So that has not happened number one. Number two, yes the phenol prices has come off. But I

have seen these phenol prices couple of time in my 20 year of working career. But the prices of HQ and MHQ which I'm

seeing today are the prices which were not even these are not even I mean they are below 20 or low prices. So what I'm

trying to mention is just raw material play is not playing out. There is also competition and the prices of lower

prices of hydrochinone is also pushing um lowering prices of MEHQ and hence we have to lower the prices to keep our

volume up uh in these markets. >> Got it. Got the fluidity in the situation. I I get your point. Uh so the

secondly on uh the the hydroonine catacol plant that we have had and I I believe uh we we did have plans to uh

have better yields of HQ and catacol compared to the competitors. Uh where would we be in that uh uh learning curve

or have we already achieved that uh uh you know yield that we had expected earlier?

So, so we I can say that probably we are better than the competition but we are still a little away from where we had

expected to be and probably all the endeavors we are still trying to figure out how to reach at that point which we

had anticipated. So actually we are in midpoint between the competition and the perfect scenario we are actually in the

midpoint and probably in the next couple of months we should reach uh the better yield uh process.

Uh sure understandably uh sure. So the same question on on HQ and Catacall uh on a overall margin basis uh would we be

at par to what we are doing uh in terms of EIDA margin uh or >> no no

>> yeah no >> no I don't think uh that >> no that EIDA margins will not be at

those extent uh they would be it lower >> that they will be lower

>> uh I think they'll be better than health lower than the parent business so again they will be like midpoint and with

these current prices of hydrophenon which we are currently seeing and because they have declined quite a bit

so I think it is again a very fluid condition to mention really on the iota front probably another quarter or so to

understand where it all stabilizes how our plants also stabilizes and I think we'll have some better Sure.

>> Sure sir. Uh one last on has uh I believe in the previous quarter uh a few global majors had taken a a price hike

in health. Uh is the overall global situation in H improving uh by that uh uh price action that they had taken. Uh

anything that you would like to comment on how margins and prices can be in house uh let's say uh one year down the

line. >> I think those announcements were made. Yes. We have also seen those public

announcements but they have not really translated into reality. So we have to just keep a wait and watch scenario but

they have not been implemented by the competition yet. >> Understood. So the situation broadly is

uh you know status quo uh on the total supply demand dynamics of files let's say.

>> Yes. So we have to keep working and keep improving our wallet share and that is what we are doing and despite of those

low prices I think the improvement has completely happened because of our improvement in our process efficiency

and of course because these higher grades have also started picking up. So I think this will keep improving over

the next few quarters. >> Understood. Sir, would it be fair to assume that our cost competitiveness and

health will be better than uh uh our peers globally uh or we are still in that uh learning curve uh to improve our

uh you know uh yields or maybe uh cost uh to that extent. See, I think we are still see it is very difficult to

understand the the competitive processes of the other competition and what are their yields and norms. But what I

believe is we are still not at the most optimum situation because I think we are still improving like if you can see

between Q2 and Q3 also there is an improvement in the process efficiencies and I believe there is still more scope

for us and uh I think that is what makes a little difference that because these products are all created inhouse we have

an ability to improve the process further and the endeavor is to further improve these so that it'll start

meaningfully impacting our EITA levels. Got a point sir. Uh thanks a lot for answering all the questions and wish you

all the best in these tough times. >> Thanks. Thanks a lot. >> Thank you so much Arishi.

>> Thank you. The next question is from the line of Balamur Ali Krishna from Oman Investment Advisors. Please go ahead.

You can go ahead with the question. You're on mute. Bala as there are is no respon from Bala's

side we move to the next question. The next question is from the line of Jason Sans from IDBI capital.

Please go ahead. >> Yeah. Yeah sir. Thank you so much for taking my question again. So you

explained very much detail about the HQ prices and how you know that those prices are going down. Now I understand

that that they're at an all-time low. Just wanted your take on sir I mean there's a lot of talk about this China

anti-involution drive going on where you know they'll basically focus on getting back to market dynamics. Do you expect

by any chance this drive to basically at least gradually there'll be some uptake in those HQ prices and it'll help you

gain pricing advantage. See I I mean I have also been reading a lot of articles but I think it's better

to see in reality than to make assumptions because >> uh you know what is said and what really

happens is is absolutely two different scenarios. So all our costings and all our pricing currently we are based at

the current market situation rather than uh speculating of any price increase from the Chinese competition. Oh, sure

sir. Sure, sure. Okay. Okay. And uh so just uh the next question I mean I understand both these 1.5 million

capaces which you they have been a little bit delayed. I understand tariff thing and you have explained that the

situation is fluid. Now now I just wanted to understand sir uh the performance chemical one at least must

be ready. Are we expecting it to generate revenue by when do we expect till 27 to for it to generate any

revenue and how much >> we start seeing? So, so, so uh the plan started currently we are using because

there are teething issues the product is slight offsp spec but we are currently consuming all the products inhouse. So

where I was importing say probably around 70 80 tons of hydrophenon per month you would have seen that those

imports have stopped completely. Uh same is the case with katakol which we were importing uh to make our own veratrol.

So these imports have stopped completely. So all these current products are being serviced by our own

subsidiary to the parent company. That is point one. And point two is we'll start seeing sales starting in the month

of February and of course gradually increasing in March. And of course we expect uh decent numbers coming in FY27.

>> Okay. But performance chemical too. So you expect revenue only in the last quarter. That's been a little bit

delayed from that perspective, right? >> Yes. I think we had anticipated that we will start the production in March, but

now I feel with the current scenario, we'll start by May. So, there has been a 2 month or 60-day delay.

>> Probably >> another 50 odd days for water trials and commissioning. So, yeah, there has been

a quarter delay. Yeah, you're right. >> Right. Right. Okay. Okay. Sure, sir. Thanks. Thanks a lot for taking my

questions. Thank you. >> Thank you. Thank you. We'll take the last question

from the line of Manish, an individual investor. Please go ahead. >> Hey. Hi sir. Can you hear me?

>> Yeah, we can hear you Manish Manish. >> Hello. Yes. Hi sir. Uh sir, I'm a minister. I I have written a mail to you

as well. So, so what I understand from the layman term as a layman term that we have some loss from China because of

some customers and we have some loss from us right so that's the reason we have because of the tariff so we are

losing revenues on on top of it because of the Chinese competition we are losing revenues right so we are hit from all

the ends now uh what do you what message do you give to a retail investor who have been invested in June since long

when can we see the margin that we used to do around revenue growth that we had around 21 to 23 could come back.

>> So u Man is uh thank you for your question. Uh, of course the endeavor for us is always to keep making more profits

but alongside the endeavor is also to retain our market share in the segments because it has taken us 20 long years to

build these markets to retain these customers. But the macroeconomics is something which is which is very

difficult and which is beyond our control. So a tariff of 55% in United States was never anticipated. The over

capacities in China was never anticipated and all this has led to margin reduction. However, the endeavor

is to come up with new products. The endeavor is to to derisk from couple of products to more products. Um uh the

endeavor is to keep performing and doing R&D and to get more and more products online so that the revenues built up

keep happening. Uh the endeavor is to not lose a customer to a competition. Um so these are some things which I as a

promoter have to do uh to make sure that my business does not I mean you know it's not a quarter business but that we

run for a couple of years. I mean we have to look for a 5ear strategy in the company. So with all this yes there has

been a hit but um we are there I mean uh we are healthy in terms of cash flow company still sitting on 500 450 crores

of cash. uh the projects which we had mentioned uh have all happened beyond I mean within uh probably a less than a

quarter delay but all the capexes have happened at the project cost which we had anticipated despite of all these

volatile times. So I mean we are trying our best I can only say that and uh even our endeavor is to reach those

profitability but but with the macroeconomics in hand I mean we have I mean some things which we cannot control

we cannot control. Agree agree sir I've read about you a lot you know I'm a great fan of your uh

how you built up this company along with the boo family so I respect that you know but I was just coming from a retail

point of view you know many many retailers I've seen many friends of mine everyone is scared everyone is scared

what will happen next okay so that's reason I thought of asking you and second uh one more question that I want

to ask you is you know the the trade deal that we had right as a bureau that might help us sir that might help us to

negate some traffic or that might help us if you compare to China. China has some uh tariff if you see China has some

tariff in Europe Europe EU but we will not have that tariff. >> So do you see that playing around and

and why sorry sir? Yes, I agree with you that would play but of course uh our I mean this I think this will only start

in 27. I think this is still lot of paperwork has to be done between the two countries. So it is not going to I mean

you will not see anything on immediate basis. Uh this will I think only start in 27 and the trade impact would have a

5 12% to 12% is the tariffs which we pay versus and also the Chinese. So if those will come out then of course it will

help the Indian chemical industry for sure versus the Chinese of course. >> Yes. So we have we have one what you say

positive for the FDA and also why so why don't we capture the market of Australia? We uh have any plan to do

that or Canada by any chance because you know by the condition going on Canada is anti- US.

>> Sorry sir. No, the point is sir Australia or Canada they don't have such acrylic acid plants

even for that matter even India does not India has only one acrylic acid plant all these blends of pet food industries

where we supply there is they are users but they are not producers hence Australia is not a market for our

products at the moment. Okay sir. Okay sir. Thank you sir. All the best. We we hope to see uh we hope to grow with Jin

Sign sir. Thank you sir. >> Thank you so much Manish. Thank you so much.

>> Thank you. I now hand the conference over to Mr. Siddhat Sikshi for closing comments. Over to you sir.

>> Uh so thank you all for spending time with us on Saturday. Um I understand there has been uh I mean it has not been

a greatest quarter for us. I think we have had a glitch in our quarter 3 also as well as in quarter 2. But I can only

assure that we are working towards improving the margins, improving the revenues, bringing new products online

as quickly as possible. uh trying to maintain our capeex cycles and I think we are trying to do as a team whatever

best can be done and uh I think that's all from our side thank you so much >> on behalf of clean science and

technologies limited that concludes this conference thank you for joining us and you may now disconnect your lines

>> thank you so