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Epigral Ltd
Earnings Call Analysis
Q2-2025 Analysis
Epigral Ltd
In the second quarter of FY '25, the company achieved an impressive sales growth of 32% year-over-year, driven primarily by a significant increase in sales volume from value-added derivatives and specialty products. This segment accounted for 59% of revenue in Q2 FY '25, up from 46% in the same quarter last year, signaling a successful diversification strategy by the company.
The financial results reflect substantial improvements. Revenue for Q2 FY '25 reached INR 623 crores, marking a 52% increase compared to INR 479 crores in Q2 FY '24. EBITDA climbed 65% to INR 178 crores, resulting in an EBITDA margin of 29%, up from 23% a year earlier. Notably, profit after tax (PAT) surged by 111% to INR 81 crores, doubling from INR 38 crores in Q2 FY '24, indicating robust operational efficiency.
Looking ahead, the company is doubling its capacity for CPVC and ECS, which are crucial products in its portfolio. By the first half of FY '27, the company plans to add 75,000 tonnes per annum in PVC resin and 50,000 tonnes per annum in ECS. This new capacity is expected to position the company as the largest producer globally for CPVC and in India for ECS, setting the stage for continued growth post-2027.
The company has also made strides in managing its debt, reducing total debt from INR 963 crores as of March 31, 2024, to INR 817 crores by September 30, 2024. The net debt-to-EBITDA ratio improved to 1.4x, indicating better leverage. This reduction in debt alongside rising operational metrics supports the overall financial health of the firm.
For the remainder of the fiscal year, the company anticipates a continuation of strong financial performance, with expected EBITDA margins in the range of 24% to 25%. This guidance reflects a conservative outlook but is built on a foundation of strong sales growth and effective capacity expansion strategies.
Overall, the company is positioned well within a growing market, especially in the domestic chemical sector, which is projected to see double-digit growth across various segments including CPVC and derivatives. With new capacities coming online and ongoing efforts to optimize operations, the company is set to benefit from increasing demand in upcoming years.
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Ladies and gentlemen, welcome to the Q2 FY '25 Results Conference Call of Epigral Limited hosted by Emkay Global and Manager Services. [Operator Instructions] Please note that this conference being recorded. I would now like to hand the conference over to Mr. Meet Vora from Emkay Global Financial Services. Thank you, and over to you, Mr. Vora.
Thank you. Good evening, everyone. Thank you for joining us on Epigral Limited Q2 and FY '25 Results Conference Call. We would like to thank the management for giving us this opportunity to host them.
On this call, we are joined with Epigral's management represented by Mr. Mali Patel, Chairman and Managing Director; Mr. Kaushal Soparkar, Executive Director; Mr. Sanjay Jain, Chief Financial Officer; and Mr. Milind Kotecha, Investor Relations. I would like to invite Mr. Malik Patel to initiate the preceedings with his opening remarks, post which we will have an interactive Q&A session. Thank you, and over to you, sir.
Thank you, Mike. Good afternoon, everyone, and welcome to the con call of Epigral Quarter 2 FY '25 performance. I believe you had an opportunity to view the earnings presentation that was released earlier yesterday, Saturday.
Epigral industry has started improving through a lower pace compared to normal one. We see a good demand and domestic level compared to the global demand. We expect demand scenario to improve from here on domestic and global level. In quarter 2 FY '25, we had a sales growth of 32% compared to last year, similar year. And for H1 FY '25, we had a sales growth of 37% made by volume growth of 28% compared to H1 FY '24.
This growth is majorly coming on account of sales volume growth from our value-added derivatives and specialty products. The revenue contribution from derivatives and the specialty business stood at 59% in quarter 2 FY '25 versus 46% in quarter 2 FY '24. Contribution from derivatives and specialty business will further increase as all future CapEx are planned towards this business.
In line with that, we are enhancing our CPVC and ECS capacity. And considering the acceptance of our product market size and the growing demand for both the products, we are excited to double our existing capacity of CPVC and ECS at our existing complex. We are going to add further 75,000 per annum in PVC resin to reach the total capacity of 150,000 tonnes per annum, and it will be the largest capacity plant in the world.
In ECS, we are going to add another 50,000 tonnes per annum capacity, and it will be the largest capacity plant in India. These additional capacities are expected to be commissioned by H1 of FY '27. Having already placed a sizable capacity in these products, we believe that our team will be able to complete this process in the period timeline and at optimal [indiscernible]. These projects are expected to contribute in FY '27 onwards.
Our strategy to dent value-added [indiscernible] substitute products, strengthening our integrated complex and continued CapEx for growth is playing well for us to grow more efficiently and creating value for our stakeholders. I now hand over call to Mr. Milind [indiscernible], who will take us through the financials.
Thank you, Malik. Let me take you through the quarterly numbers. So on the operational side, a utilization of the plant stood in quarter 2 FY '25 versus 77% in quarter 2 FY '24.
Sales volume grew to 6%, and this was majorly coming from the derivatives and the specialty business. Revenue from the quarter 2 FY '25 increased to 52% to INR 623 crore versus INR 479 crores in Q2 FY '24. This growth is majorly on account of the volume growth coming from the derivatives and specialty business.
In Q2 FY '25, revenue contribution from derivatives and specialty business has increased to 59% versus 46% in Q2 FY '24 and 53% in Q1 FY '25, so we are moving in line with our diversification and increasing our contribution revenue from derivatives and specialty.
EBITDA grew by 65% to INR 178 crores versus INR 108 crores in Q2 FY '24. This majorly happened on account of increasing utilization and volume contribution from the new projects. EBITDA margins stood at 29% in quarter 2 FY '25 versus 23% in Q2 FY '24. PAT grew by 111%, it's almost doubled to INR 81 crores in Q2 FY '25 versus INR 38 crores in Q2 FY '24. And PAT margin stood at 13% versus 8% in quarter 2 FY '24.
Total debt of the company has reduced to INR 817 crores as on 30 September compared to INR 963 crores as on March 31, 2024. [indiscernible] on capital employed for the trailing 12 months has improved to 24% compared to 21% as on September 30, 2023, on accounts of better volume growth resulting in a growth in our equity. Hence, here, the capital employed includes the capital working progress, which is yet to contribute to the corporate revenue. It excludes the capital work in progress, then ROCE stands at around 28%.
Our net debt-to-EBITDA has improved to 1.4x at the end of September 2024 versus 1.8x at the end of September 2023. The ratio has improved in line with the volume contribution from existing as well as the new projects resulting in a growth in that EBITDA, absolute EBITDA and also a reduction in the total debt of the company.
Now if you look at the half yearly numbers, the revenue has grew by 37% to INR 1,285 crores. This is majorly driven by the volume growth of 17% coming majorly from the derivatives and the specialty business. Derivatives and specialty business contributed 56% of the revenue in first half of FY '25 compared to 42% in the first half of last year.
[indiscernible] the situation of the plant for the first half of FY '25 at 83% versus 74% in first half of FY '24. EBITDA grew by 75% to INR 355 crores, leading to EBITDA margin of 28% compared to 22% in first half of FY '24. PAT grew by 19% to INR 166 crores, and PAT margin stood at 13% versus 7% in first half of FY '24.
With this, we can open the floor for the questions.
[Operator Instructions] The first question is from the line of [indiscernible].
I wanted to know what is leading to the pricing pressure in the domestic traffic or versus the global ex markets.
So the domestic caustic soda prices have also kind of been moved off addition. So that was something which happened at the end of September. So that will be -- so in line with the global prices, even the domestic prices of the caustic soda has gone up, and that will be reflected majorly into Q3 and not in Q2.
Okay. And [indiscernible].
We cannot hear you.
Please proceed with your next question.
Yes. So when I -- when we look at the Q2 revenue numbers, they have decreased the orders when I compare Q-on-Q [indiscernible] cost has remained to increase marginally.
We can't hear you clearly. Can you...
Your line, Please can unmute your handset because there is a lot of disturbance from your line.
Yes. Am I audible?
Yes, it's better.
Yes. So I wanted to know, when we look at our Q2, our revenue numbers, they have reached around quarter versus our costs have remained -- stocks have remained flat. In fact, they have increased marginally.
And then our other expenses has reduced drastically and our net [indiscernible]. Is there any cost items that has been shifted from other expenses to COGS? Or is there any product that we used to outsource and that expenses could have cost you other expenses and now that we have started making it in-house and then added it in the COGS?
See, as there is no change in the COGS and also in the other expense item. It is in the roping cost of business, which has happened. So as such there is more change in any accounting factors that we have, which will change things.
If we look at the Q-on-Q, which is quarter-on-quarter, as you said. So that is again the current quarter [indiscernible] can say the things have improved because of the improvement in the [indiscernible] or the margins in the that we have sourced. So otherwise, it's a normal cost of thing. It's not anything that we have more content for us to COGS.
Okay. So it is more of the sense the numbers are all of almost INR 21 crores of [indiscernible] one-off?
Yes, it's a one-off kind of thing. It's nothing like any kind of change.
Okay. Okay. And last one, when we look at the volumes, Q-on-Q, we have reduced so any particular reason why there is a fall in volumes and which product would have seen no fall in the volumes?
So again, it's in the sales of volume. So the other products have here and there. But again, it's a few specific products there was a bit slowdown because generally, it's not this -- in this particular season, which is monsoon, a few of the products are in lesser demand. Otherwise, it's a steady more. So you will see ic we see a better position. 1Q when we compare Q-on-Q, so that will be in a better position because generally for the products, Q2 is kind of an off-season.
Okay. And if you could just help me with the utilization for caustic Sorry.
Sorry. What about caustic?
Utilizations.
Caustic utilization has been around 75%.
Around 75%.
Yes.
And our chloro -- our hydrogen [indiscernible]?
It is somewhere around 95%, 100%.
The next question is from the line of Jim Adia from Anvil Welsh.
I have 2, 3 questions. First, you have mentioned in your presentation that our caustic realizations were down Q-on-Q. But when we see the international prices, I think they were predominantly stable, right, in terms of between the quarters. So just wanted to understand from you, like was this fall was because of the crude prices? And if you can also like how were the chlorine prices in 2Q of FY '25 versus 1Q of FY '25?
So caustic soda, what you said is true. It is partly because of the or impact that we have in India compared to the global market. So where it has been down. chlorine, if we last at the last quarter, it would have been somewhere around negative of around INR 4,000, and this quarter, it would be somewhere around INR 6,000, INR 7,000 negative.
Right. And sir, when we see the margins for our contact solar business, like there was something like if you compare the ECU, there was a fall of close to around INR 2.5, INR 3 on a sequential basis. But when we compare our cost in terms of energy cost, because now we have an entire set power plant also running for our caustic soda business. So have you seen some sort of cost savings there, which would have negated the ECU realization to an extent of INR 2, INR 2.5, if you can report here.
So in caustic, what you said is true. I mean, to have our own captive power plant, it definitely helps in terms of rationalizing costs. But again, since evenings when we started our plant, we have our own captive power plant. So we are optimized in terms of the consumption is signing -- so it's not that suddenly something has come up.
But yes, we have also entered into 18.34 megawatt of the solar hybrid power plant, which helps us to reduce our overall cost for the cost that we were earlier getting from the grid. So to that extent, yes, we have got the benefit in this year, full year.
Got it. And you also mentioned that by the end of September, we have seen some sort of price increases in caustic if you can just quantify like in terms of the quarterly prices of caustic what we have realized and how much we have seen price increases or possibly what sort of price increases the industry would have taken?
So caustic solar prices have gone up in line with the global market. But again, at the same time, the chlorine has been are discussing what it was earlier and what it is right now in the situation. So the easy, which is down the line number has moved up marginally up.
So the last quarter -- I mean, Q2, the EC was around 26,000, considering the price, which has gone up and the curing, which has further gone down in terms of negative. The ECeasy goes around 30,000, 31,000.
Got it. Sir, second question is on the pure production. So I think if we do some belt calculation based on our chlorine production of close to around 850 suddenly, if you can help us understand like how much we use internally, how much is our pipeline phase? And how much we sell in the spot market?
So we say capital consumption that we have as of now as we have expanded our PVC capacity has come. So Q2, we were consuming consumption was around 70%. That has gone up to 79% at conduction. And there is 21%, which we still sell in the market for tons.
And we have further announced to enter into CTV expanding CPVC and ECH capacity, we are targeting this to further go out to consume active [indiscernible] actively.
So this capture doesn't include the pipelines, right?
It includes the pipeline customers. So yes.
Got it. Sir, does the pricing for those pipeline customers also are on the similar lines on how we sell in the spot market? Or the pricing is slightly different in terms of the contact with the customers?
The pricing of the more or less most of the players, I think the coking price is similar.
Got it. Sir, last bit from my side, like if you can share your thought process about the total market size of chlorine in Gujarat currently, like how it is played in, how the players are currently expanding. So how do you see eventually not today. But let's say, about 2, 2, 5 because a lot of other players were also expanded the capacity around Gujarat. So if you can share your thought process about the market size of chlorine in Gujarat and how do you see that industry growing so that the rest of the players are selling their extra for doesn't put a pressure on your caustic prices?
So I think the basic soda caustic industry, chlorate industry is driven by the [indiscernible] because of lack of protein in Italy and then because of the PVC production. So definitely, going forward as the country is growing at 7.5%, 8%, definitely, our caustic demand is also, I think, going in the same state.
So definitely, demand of caustic is going to go up in the floating derivative people like to kind of way to utilize the glory internally. But that's why we are expanding CTV and ACH. And I think overall, in uplifting of both the project, the 21% -- the 75% running capacity, we are selling 21% in the outside in the market. That will almost become, I think, only 10% in the market after we commission more [indiscernible].
Got it. Got it. And sir, any idea about the market as of [indiscernible]?
It's a very unorganized market. So it is difficult to make out at the margin of plant definitely major industry is for downstream chemical industry. And the depends on the sector, the market situation keeps changing depending on the aerogel market that is the major one.
So all debits and [indiscernible] benefits, where demand supply also keeps changing. So everything never it is running on the peak normally. And depend on the cycle of the industry, it is keep changing. So it is very well diversified. It is not focused on 1 particular industry in India. Other than if you see, other than CDD application, I think it's very good [indiscernible] so many different applications we use, including the water trend also.
The next question is from the line of Rohit Sana from SD Securities.
And congratulations on the numbers. Sir, 2 questions from my side. One is as we are expanding our in CPVC and just players are also expanding into space. So just wanted to know what kind of outlook we have and what kind of demand or the 1 as we are expecting in both the segments down the line?
So most of the products, TVC and [indiscernible] both are growing almost at double digit in India. If you see all the epoxies, they have already exported almost double on capacity, when new players are also expanding to epoxy earnings.
So I think in last 3 years, the ECH demand has gone up almost double in India are going to probably next 1 year, once the optimum level, all the epoxy resin capacity will run other than the unorganized sector, which is also buying the cycling as a raw material for other applications also. That is also growing at double digit. So we are expecting this market is growing double digit, and I think it will lead to a very high potential, and that's why we are the first 1 right now in the [indiscernible].
So we thought we would like to take a call to expand the double the price of the plant. So we are forecasting, I think 2 years down the line, the again apply demand gap will come in the ECS sector.
Okay. And for CPVC?
And the CPVC also, everybody is expanding. Everybody is adding the capacity. People are present in North. They are adding capacity in South people are released already fit on waste. So North, Southeast was all India. India, people are expanding their capacity of the pipe manufacturing.
And there are new players are also putting to enter like the tech like company and they are also paying into India. So they are also going to expand the CPVC business along with other pipe also. So we are expecting good demand in coming years, and it will [indiscernible] coming years, and it will grow in the similar higher split in the next 2 years or 3 years' time.
Okay. And our ECS [indiscernible] is something what utilization.
Currently, we are running almost 85% capacity, yes.
Okay. And the realization for all these on you all again at the [indiscernible].
So in quarter 2, I think it is slightly -- yes, it's almost the same for the derivatives segment, I think almost same. Marginal changes, not major changes in terms of realization.
Okay. So in the cost side, you mentioned that we are operation have 75% right now. So what is in the second half, a lot of companies in the chemical space also are [indiscernible] H2. So just wanted to understand that whether or utilization or are expected to sell cross 80% for us? Or would it be in the similar range for the coming quarter as well? And what kind of right now capacities are operating in India? We heard that went for shutdown maybe on the maintenance side of [indiscernible], but there has been some shutdowns also, which has been this price increase. So how to see that?
Yes. So we are expecting good demand late in quarter 3 compared to quarter 2 in terms of cost and in terms of the toy nutrition also because has mentioned that some of derivatives, which are is not in very high demand in terms of the monsoon season. So I think we are expecting good demand in quarter 3. So definitely, our plant will then, as you rightly say, that we'll run more than 80% capacity in terms of the quarter 3.
Okay. Okay. And 1 last question is, I mean, just apart from this and expansion, what we are -- are we a looking at any other opportunities?
Yes. Now I think almost we have we have captively consumed almost 20% of our intent and PVC and other application also in the [indiscernible] and the pipeline customers also. So we are only going to sell 10% of the floating in the market. And definitely, the 2 years back already we have announced that we have taken a land of almost close to races. So there in that we are going to start a new value can.
We are under evaluation. Probably by end of March, we are able to discuss more about that value chain.
Just to add to that. So the new land will have all together a new chemistry. And again, it will be kind of an import substitute product. So that's where we are looking for similarly what we have done in a CVC kind of a thing.
The next question is from the line of [indiscernible] from LLM Pharmaceutical.
I just wanted to understand what is the market environment and how is demand supply trend working in market because we have been realizing for all of our products? These are 1 view I want to know from you. And the second part where the derivatives lies in terms of our products, we have put in pricing per quarter.
See, what you said is true. I mean, there is a [indiscernible] impact in the realizations, but that is marginally plus and minus. But considering the CapEx that we have done so far, that will start contributing in terms of the volume growth that we have seen. Like first half of FY '25, we have seen a sales volume growth of 17%. So that is something which is driving the growth that we have.
And plus the realizations that we are seeing is at the kind of a bottom level, again, where it will go up, that is to anyone's guess. But whenever that happens, that will be an additional benefit. So industry is moving up, whatever we are seeing is the bottom of situation, things will improve. And hereon, the pace might be different for different set of application industries. But we believe that considering the industries that to whom we are serving and the CapEx and the capacity that we have, we would have a volume growth and that will ultimately drive the value growth because the volume growth that will be coming from the high-value products compared to our earlier products, so that will ultimately drive the value growth as well in the coming years.
And second was is there any discretion or update on [indiscernible] products we are coming up with?
Yes. The chlorotoluene project, we have 3 blocks. So we have started commissioning one by one each block. The first block we have commissioned. The second block we are going to commission probably in this quarter. And the last block, we will commission in the last quarter. So probably fully commissioned will be done in the quarter 4.
Quarter 4 of this year?
Yes, yes.
Okay. And the borrower, just a bookkeeping question. What is the volume growth for this quarter?
So volume growth for this quarter is around 3%.
3% if Y-o-Y or Q-o-Q?
Y-o-Y.
So I'm asking about Q-o-Q.
It is flat.
The next question is from the line of Vinay from BD Ventures.
I have a couple of questions mainly on the CPVC industry. Recently, the homes industry had announced an anti recommendation on PVC suspension reports. Is this the kind of PVC that goes and how you felt effect [indiscernible]? Hello. Hello. Can you hear me?
Yes. Can you repeat your question?
Recently, the Commerce Ministry has announced an antidumping measure on suspension PVC imports. This is yet to be finalized by the Finance Committee. But is this kind of PVC the use for us to production, how do you think it will affect us?
Yes. suspension PVC we use in our PVC production. And this is very special PVC, which is not manufactured in India so far with any [indiscernible] there are not manufacturing in India are important. So yes, there will be impact of anti-tau of PVC on the PVC pricing as well going forward.
So I have elected the CW and also understand that Reliance is trying to start a aero CPG production and announced desire. And [indiscernible] uses their own PVC for CPVC production. So when you say this is not available in India, how does Reliance and [indiscernible] manage?
See, so far, we know it is not manufactured in India. So we don't know about future it will start manufacturing or not.
Okay. So we also talked about you having a major capacity addition. We also know [indiscernible] is adding capacities. Reliance is in the line. [indiscernible] also added capacities. So by the year 2027, do you think demand will catch up to the amount of capacity increases? Or what is the range of subsidy addition do you think we'll be at?
Considering the growth in the CPVC market, we expect the demand to reach around 3 lakhs [indiscernible] once we commission our plant, which has been FY '27.
So still, even after that, India will be a net importer of CPVC somewhere around 1 lakh or 110,000 kind of a CPVC regime.
That's good to hear recently, you sort the 35 compound plant for CPVC. What percentage utilization of the component on [indiscernible]?
So the CPC commissioned in June, we have made our product it is under various peers a few levels, it has been approved. Fuel level, it is still at the testing space. So I guess it will start contributing a sizable way from the Q4 onwards.
Okay. Recently, there has been attention in CPVC antidumping duty. Has that affected our realization prices at all? Because last quarter, the realization seems to be [indiscernible]?
Yes. So currently also, the realization has been status in the same range.
Same range. What percentage for CPVC capacity to utilize last quarter?
It has been around 70%, at least 70%.
[Operator Instructions] The next question is from the line of Bobby from Wilcon.
Could you elaborate a bit on whether these capacity is for domestic use or for exports?
May I request you to please speak a little louder or can use your handset while asking a question?
Yes. I'm using the handset. All right. So for [indiscernible], are you going to be using the capacity for exports or for domestic use?
So our major or planning to use domestically is all specialty chemical companies who are growing in India for the agrochemicals or the pharmaceutical [indiscernible]. And with some portion, we will export to Europe region to start with.
So definitely, on a longer term, definitely, our focus is going to be India in a specialty coming up.
So right now, the -- so your end segment is agriculture and pharmaceuticals, correct? So right now, where are you getting [indiscernible] from?
They're getting it from Japan. They are getting it from China, Japan, and some portion is coming from Europe also.
All right. So when you sell your plant, are you going to be competitive with these countries given they are operating at a much larger scale?
Yes. We believe we are domestically available. It is much easier for our customers also. And all the products, majority of the products are in the liquid phase. So there is not easy to transport in terms of the -- when the quantum is increasing for the customers.
So yes, it is much easier to -- for our customers to proper from the domestically compared to the import.
So when your capacity comes on stream, do you expect them to switch over to you in your current suppliers?
Yes. It will take time. It is not going to do overnight because the customer also need to -- I think it will take time to build the confidence between the supplier and the customer. So gradually, it will increase the volume. So we are expecting once we commission fully in quarter 4. It will take minimum 3 to 6 months time to approve each and every customer through a desired level.
Definitely small orders, we can get in the initial first quarter, but the actual volume will pick up in the second quarter of next year.
Right. So it's pretty much the same situation you had for EC correct? So for ECH, at this point, what can is sold domestically versus exports?
Yes, yes. I think it is -- you are right. We had a similar situation in ACH.
How much are you selling domestically right now for ACH?
We are selling also 80% in domestic and 20% for the export.
All right. So it's just some time for you to scale up to the domestic customers, correct? [indiscernible] a lot and then you gradually got customers?
Yes. And I think it is -- the volume is increasing in India, and all the players are expanding. And not only the epoxy resin, but the other application people are also expanding and consumption of [indiscernible] is growing in other -- in smaller application as well.
So because it is good time to expand. And yes, our long-term planning is to sell [indiscernible] in the domestic and then around 20% for the export market.
Understand. So for one, is it a technologically complex process? How come you are the first 1 [indiscernible]?
Yes, it is. It is not easily manufactured because there are so many number of products in the chlorotoluene value. It is not a 1 product like epichlorohydrin or the CPVC. It's very complex. And get it up to each and every process, each and every molecule and [indiscernible] complex.
Right. So do you have a technology partner for this? Or are you doing it alone?
No. We have -- in some products, we have a tech product. Some of the products, we are doing in-house. It's a mix. it's a whole -- it's a 10 to 15 different value chain, different products in the entire value chain.
So Lanxess is the global leader here, right? Do you think your poly will be on par with Lanxess?
Which quality will be?
Will it be at par with Lanxess, the German company that manufactures [indiscernible]?
Yes. So I think the 10 products or 15 products, which we are planning to manufacture out of [indiscernible], I think a couple of products is manufactured by Lanxess. So yes, it is going to [indiscernible] with Lanxess, yes.
So for any product right now, I think we have to be on par with the best product, which is available in the market. Otherwise, it is difficult to spend. So it is the mandatory requirement for any kind sof [indiscernible], yes.
I understand. So for CPVC, who is the technology partner?
PVC, it is not a 1 particular technology partner. It is a different kind of it's mainly -- it's not a technology in the process. It is a lot of equipment, a lot of engineering. It is also -- so we took the help of different consultants also with the commissioning of the CPVC and the technology.
And we also take the help of some of the equipment supplier also.
Okay. So originally, the understanding was when a few years back that CPVC are very technologically advanced compound and only a few people could manufacture. But now seems a lot of players are manufacturing here?
yes. [indiscernible] a lot of people wanted to manufacture. So yes, you are right, it is -- earlier, it is still. It is a very complex process. In terms of the engineering, it is very complex. In terms of the corrosiveness, it is highly corrosive. And in terms of the customer also, in terms of application, you need to have a lot of interest of case of the application also. So it is not that easy to manufacture CPVC, yes.
It looks very simple. Once you see the chemical process or chemical formula. But it's very difficult to take approval of the customers also, along with the specification and other applications. So it's a complicated process. It is not just once you commission and you can establish the customers very easily.
I understand. And you have all the talent in-house, given our sources. So all the engineers are in-house employed by Epigral?
Yes, yes, yes. That is our strength.
The next question is from the line of Rahil Shah from Ground Capital.
I was going through the Q1 con calls, and I believe you had said that you expect revenue to be in the season of INR 2,500 crores to INR 2,600 crores, a path of INR [indiscernible]. So this [indiscernible] exchange in pricing and everything?
So considering the volume growth that we have right now, we will be winning that line only.
There is volume growth [indiscernible]?
Sorry?
What kind growth do you expect in the second half or for the full year?
So I can see the second half will be better than the first half. Let me put it that way rather than giving you a specific number.
Okay. And the margins you expect to be in the range of 24%, 25% for the full year, EBITDA margins?
Sorry, I didn't get you.
The EBITDA margins, do you think will be in the range of 24%, 25% for the full year?
Yes. So we believe that we have put together, we will be having a margin of 25%. So in the first half, we had an EBITDA margin of 28%. But on a conservative side, we can take around 24%, 25% margin.
The next question is from the line of Rohit Sinha from Slide Securities.
Sorry, my line is [indiscernible]. Maybe this question was already asked. Just continue on the export side. So for ECH, how much was the export and the total overall export was how much in the quarter?
So 20% is our export and 80% is domestic, yes. So 25, 75 [indiscernible] for this quarter.
25, 75 for this business, right?
Yes.
And for ACH only?
For the ACH. It was 25, 75 was for the ACH. Company put together the export is in the range of around 19% kind of thing.
Okay. And when we are looking at this [indiscernible]. So this 35% would be similar or [indiscernible] on that side?
Considering the growth in the Indian market, we think that majorly, it will be [indiscernible] only. So we are putting the additional capacity considering the growth that we are going to see in the Indian market. So major in India. But again, time will tell.
Okay. Okay. I think the first half FY '27 on this case would be operational in [indiscernible]?
Yes. So we expect in the first half of FY '27 both the capacities will be commissioned, which will again as it will be commissioned, we will take them to ramp up. So it will contribute partially in FY '27, and we expect it to run optimal in FY '28.
Great. And again, when looking at our cost margin, which sealing around 38% in the U.S. for 25% whole-year a number of quite conservative, and we can easily put together in these [indiscernible] margin would be definitely possible as we are eating a [indiscernible] for the second half.
So I know in conservative were, I mean, keeping the rate number is. But 28% kind of margins should be [indiscernible]?
So Rohit, what you said is true. The first half, we have done 28% kind of margin. And we said in a normal situation, we can be in the range of around 25% to 27%.
But when I say 25%, it is for this year, it is for next year. So we are putting it that way. But what you said is also to first half, we are at 27%, so then it will be definitely on a higher side come '25. But if you ask me if you're asking for a guidance kind of things, then we would like to stick to 25% margin.
The next question is from the line of from Dave Baheti from GC Holdings.
I had a lot of questions. Of the INR 780 crores of CapEx that we plan to put, what would be the CapEx split for the 75,000 metric tonne of CPVC cost we are in?
Sorry, we missed the question. Can you repeat, sorry?
So of the INR 7 crores of CapEx that we are planning to put, what would be the cost of CapEx for 75,000 metric tonne of CPVC?
So it's a INR 780 crores for both CPVC and ECH. And also in line with that, we are spending the amount on the basic infras well. So that's why we are not giving the taxation of the CapEx.
Okay. And would it be possible to quantify the impact of provisional antidumping duty of PVC resin that we might face, you could increase in pricing?
Yes. So see, generally, what we have seen in the past also, our realizations of the products has moved in line with the raw material costs. So if there is an impact on the raw material prices, then it will be reflected in the realization as well.
So we tend to mention what we had done in the past.
Okay. And would you be able to help us with the selling price for CPVC currently, for the realization of CPVC currently?
Sorry, realization of what?
CPVC.
That is what it was in last quarter as well. It has been around that only needed 23% here and there. So no major difference as such.
We will take that as a last question. I now hand the conference over to the management of further closing comments.
Good evening, everyone. In conclusion, I would like to convey that we are moving in line with our strategy through our expansion plans and diversification in terms of multiproduct catering whereas industry. we are targeting consistent growth. And I would like to thank you all of you for joining us here today.
Please feel free to reach our IR if there are any unanswered questions. Thank you, everyone, for your participation.
Thank you very much, sir. On behalf of Emkay Global Financial Services, that concludes this conference. Thank you for joining us. You may now disconnect your lines.