GFCL: BRD: 2024 21st August, 2024

The Secretary The Secretary

BSE Limited National Stock Exchange of India Limited
Phiroze Jeejeebhoy Towers Exchange Plaza, Bandra Kurla Complex
Dalal Street, Mumbai 400 001 Bandra (E), Mumbai 400 051

Scrip Code: 542812 Symbol: FLUOROCHEM

Dear Sir/Madam,

Sub: Transcript of Conference Call with Investors/Analysts held on Tuesday, 13th

August, 2024

Ref.: Regulation 30 and 46(2)(oa) of the SEBI (Listing Obligations and Disclosure
Requirements) Regulation, 2015 (‘Listing Regulations’)

With reference to our letter dated 8th August, 2024 and pursuant to Regulations 30 and 46(2)(oa) of
the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘Listing Regulations’),
we are enclosing herewith the Transcript of Conference Call held with Investors/Analysts of the
Company on Tuesday, 13th August, 2024 at 16:00 (IST) to discuss the Q1FY25 Financial Performance.

The above information will also be made available on the website of the Company: www.gfl.co.in.

We request you to kindly take the same on record.

Thanking you,

Yours faithfully,
For Gujarat Fluorochemicals Limited
Digitally signed by
BHAVIN BHAVIN VIPIN
DESAI
VIPIN DESAI Date: 2024.08.21
11:39:01 +05'30'

Bhavin Desai
Company Secretary
FCS: 7952

Encl.: As above
 “Gujarat Fluorochemicals Limited
Q1 FY '25 Post Results Earnings Conference Call”
August 13, 2024

MANAGEMENT: DR. BIR KAPOOR – CHIEF EXECUTIVE OFFICER –

GUJARAT FLUOROCHEMICALS LIMITED
MR. KAPIL MALHOTRA – HEAD OF OUR
FLUOROPOLYMER BUSINESS – GUJARAT
FLUOROCHEMICALS LIMITED

MODERATOR: MR. ARCHIT JOSHI – BATLIVALA & KARANI

SECURITIES

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 Gujarat Fluorochemicals Limited
August 13, 2024

Moderator: Ladies and gentlemen, good day, and welcome to the Q1 FY '25 Post Results Earnings
Conference Call of Gujarat Fluorochemicals, hosted by Batlivala & Karani Securities. As a
reminder, all participant lines will be in the listen-only mode and there will be an opportunity
for you to ask questions after the presentation concludes. Should you need assistance during the
conference call please signal an operator by pressing star then zero on your touchstone phone
please note that this conference is being recorded.

I now hand the conference over to Mr. Archit Joshi from Batlivala & Karani Securities. Thank
you, and over to you, sir.

Archit Joshi: Thank you, Del, and welcome to all participants to the Q1 FY '25 Earnings Conference Call of
Gujarat Fluorochemicals Limited. We have with us today Dr. Bir Kapoor, Chief Executive
Officer of the company; and the senior management team members to discuss the quarterly
performance.

Without further ado, I'd like to hand over the floor to the management for their opening remarks,
post which we can have a Q&A session. Thank you, and over to you, sir.

Bir Kapoor: Thank you, Archit. Good evening, everyone. A very warm welcome to all of you on GFL's
earnings call for the quarter ended 30th June 2024. The company announced its Q1 FY '25 results
at its Board meeting held today on 13th of August 2024. The results, along with the earnings
presentations, are available on the stock exchange and on our website.

I will briefly talk about the numbers, and then, give you an update on the business operations
and the outlook. The company reported a consolidated revenue from operations for Q1 FY '25
of INR1,176 crores, up by 4% on a quarter-on-quarter basis. Consolidated EBITDA for Q1 '25
was INR262 crores, up by 10% on a quarter-on-quarter basis.

The EBITDA margin for this quarter was 22%, marginally up from 21% in the previous quarter.
Consolidated PAT for Q1 FY '25 was INR108 crores, up by 7% on quarter-on-quarter basis. The
profitability in this quarter was impacted by higher interest rates and depreciation, as we have
incurred higher capex in previous quarters for future growth.

However, the commensurate revenues will ensue in future, once commercial supply is
commenced subsequent to validation and approval process. In both EV and Fluoropolymers, the
validation period is quite long, which results into a lag in business buildup. A consequence of
this prolonged validation, however, is the stickiness of the business for a sustainable period.

We believe that, as the operating leverage improves, the profitability will increase sharply as the
capacity gets fully utilized in FY '26 and '27. And this, again, I'm referring primarily to EV
sector. While the Fluoropolymers will meaningfully add to our topline in this and the next
financial year, the battery material vertical will provide substantial growth in future years.

Let me give you a quick update on the battery materials business catering to EV and ESS
segments. We are actively engaged with 20-plus potential customers across the EV ecosystem

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 Gujarat Fluorochemicals Limited
August 13, 2024

in U.S., EU, Japan, Korea and India. Many Indian and global customers have audited our LiPF6,
electrolyte and PVDF binder manufacturing facility and approved it. The product sampling and
validation is in progress with over 50 samples shipped to customers globally.

Also, the contract for LiPF6 electrolyte and PVDF binders are being finalized, and commercial
supplies is expected to commence from Q4 FY '25. The LFP plant commissioning is expected
in third quarter of this financial year. Let me briefly take you through the performance of each
business segment for the quarter.

During the quarter, caustic soda prices have marginally increased. However, the MDC prices
have softened further, and the production was close to the baseline operations during the quarter.
The Fluorochemicals segments witnessed pickup both in volume and price of refrigerants.
Specialty chemicals volumes and prices remained muted during the quarter and continue to face
headwinds from Chinese competition.

Fluoropolymers continued to improve quarter-on-quarter. However, the revenue during this

quarter have been impacted because of the logistic disruptions caused due to Red Sea crisis. New
Fluoropolymers continue to witness market pull due to strong growth fundamentals in semicon
industry and successful product developments in application related to emission control in auto
industry.

Additionally, our post-processing facility has been commissioned to capture a larger share in the
premium segments of very high priority products. Manufacturing plant for making PVDF film
for solar application has also been commissioned and the products are under validation stage at
this point.

As we have been guiding, we continue to see growth quarter-on-quarter. The new Fluoropolymer
continue to be on an upward journey, and we believe that we'll be able to substantially utilize
the new Fluoropolymer's capacities set up earlier by fourth quarter of this financial year.

Post establishing ourselves as one of the credible global player in Fluoropolymers, we are now
embarking to position ourselves as the global leader in the battery material sector. Let me give
you a brief update on the battery materials sector. The global markets are moving towards EV
adoption and penetration of ESS driven by the clean climate agenda.

There is a strong emphasis on stabilizing supply chain, which is independent of single-country

exposure. In view of this situation, we present a very strong and dependable supply chain option,
which not only presents a large bouquet of products, but is also fully backward integrated
materials provider.

As more and more capacity is being set up globally for ESS and EV batteries, the quest for
diversified supply chain, large OEM manufacturers are looking for viable partners who have
experience with strong balance sheet and capability to be able to meet their requirements. We
are seeing a strong traction in global markets for such product offerings.

As we had stated, we are currently engaged with some of the largest global auto and battery
manufacturing companies. The nature of our discussion is primarily focused on long-term

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August 13, 2024

formula-based contracts as the qualification and validation process is long and the auto OEM
and battery manufacturers would like to restrict to maximum 2 or 3 suppliers to ensure
consistency in quality and product performance, leading to long-lasting, sustainable
partnerships.

At the end, on EV segment, I would like to reemphasize that a combination of first-mover

advantage, along with robust backward integration and a supply chain, independent of China, is
a strong strategic advantage for us. We are surely on a robust growth journey with all our
fundamentals in place and the large global market available to us due to macroeconomic drivers
like environment and sustainability.

With this, I would like to now leave the floor open for question-and-answer. Thank you.

Moderator: The first question is from the line of Sanjesh Jain from ICICI Securities.

Sanjesh Jain: Just first on the Fluoropolymer business, if I look at the performance of Chemours, where the
volumes have grown 16% quarter-on-quarter, which indicates that the volumes in the developed
market, at least on the Fluoropolymer side, are coming back, that means destocking is largely
behind us. But that kind of an optimism, again, I don't see in our numbers. So what are we
missing here?

Bir Kapoor: Yes. Sanjesh, I think, yes, destocking is behind us. And the numbers are typically as we expected
to be driven by multiple factors. The first, of course, is growth in the new Fluoropolymer
segments, which we expected driven by the capacity that we had put in place and also the
validation process.

Second, of course, the exit of legacy players, which is taking place. So we are seeing a lift, okay?
The growth rate you can debate is there or not there. This quarter, there's some amount of, of
course, subduedness that we see because there were some of our shipments going to particularly
U.S. markets got delayed almost by week, 1.5 weeks or little bit more, so -- but I think we will
catch up.

The fundamentals, and -- we are seeing a pickup, at least driven by multiple sectors and primarily
driven by semicon sectors, okay? So I think, yes, we would have loved to see a higher growth
rate and -- but the fundamentals are in place, and I think we'll see some as we go along. There is
-- it will continue. We will continue on our growth journey.

Sanjesh Jain: But semicon is largely PFA, so what's happening on the FKM, PTFE and PVDF? Where are we
in terms of volume growth for these products? Even domestic was supposed to add because of
the stringent norms, but again, none of these are really in the way we thought is still not visible
on the numbers.

Bir Kapoor: It will be visible. I'm inviting my colleague, Kapil Malhotra, who is the Head of our
Fluoropolymer business to talk about the specific segment that you asked about.

Kapil Malhotra: Yes. So to answer to one of your specific question that you are talking about some of the
domestic business for, even FKM, if you're talking about, so we are going to see this fuel mix

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August 13, 2024

happening and affecting us positively from the first quarter of the next calendar year, that is the
last quarter of this year, financial year. And so we are absolutely geared up for that. Some of the
grades which were to be parked in place are already under evaluation. Some of them have been
approved, some of them are under the process of approval.

As it's a new journey in the Indian context, so we are absolutely gung-ho about it. And we are -
- we have created capacities, we have created all the grades and we are just waiting for the event
to happen now. So you will see that positive traction coming in, in the last quarter of this
financial year.

Sanjesh Jain: And, Kapil, what will be the India demand in your sense for this? Because we will be replacing
the traditional rubber with FKM, how much FKM capacity do you think India will require to do
this transition?

Kapil Malhotra: See, right now, Sanjesh, it is very difficult to calculate and answer that because it's a gradual
process. As I said, it is happening in India for the first time. We have created some kind of a
momentum and capacities. But to go forward, it can be good, but how good we'll only come to
know only 3 quarters down the line.

Sanjesh Jain: But any indication you are seeing there, it could be fairly large for us?

Kapil Malhotra: It's going to be how large we'll come to know later.

Sanjesh Jain: Got it. Clear. So next, coming to the battery chemicals side. We are being -- we are expecting
some amount of contracts to be executed from the end of this fiscal year. So is this domestic
contract or these are international? And how large are these contracts? And these are for what,
LiPF6 salt or electrolyte?

Bir Kapoor: These contracts that we are referring to are mostly global, okay? Because as we said that our
focus on EV sector is primarily global. It would be difficult for me to specifically say which one,
but of course, our 2 frontrunners are there in our products, one is LiPF6 and second is electrolyte,
okay? And of course, the LFP, as I have indicated, the plant is very close to getting
commissioned. We expect to get it commissioned by quarter 3 of this year. So I think most of it
is global. Of course, electrolyte is primarily focused on for Indian markets.

Sanjesh Jain: So when you say global, it should be largely salt, right?

Bir Kapoor: Yes. Salt and LFP as well, LFP and PVDF.

Sanjesh Jain: Okay. No, I was just coming to the PVDF part of it. We were in the process of validation and
certification from the western part of the world. Have we got the certification for battery-grade
PVDF?

Bir Kapoor: It's quite close. It's almost in the final stage of certification right now. However, the way it works
typically, Sanjesh, is then while the qualification is in progress, the contract discussions and the
pricing discussions happen simultaneously. So typically, when we are engaging with a serious

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August 13, 2024

customer, both of these things happen parallelly. And with this go with a presumption that it will
get qualified, and we are sure it will get qualified, absolutely no issue.

Sanjesh Jain: Got it. And 1 last question before I come back in the queue. Kapoor, sir, still we stand with our
guidance that we will be able to do an EBITDA which we did in FY '23, which is around
INR1,700 crores, INR1,800 crores of EBITDA.

Bir Kapoor: So we are -- I mean, as I indicated, we had -- we were hoping that we'll reach there, and we still
think we'll reach there give or take a quarter here and there. We will definitely come to the run
rate of that last FY '23 financial year or even beyond that. So probably give or take a quarter on
a rolling basis, Sanjesh.

Moderator: The next question is from the line of Sudarshan Padmanabhan from JM Financial.

Sudarshan Padmanabhan: Sir, my question is to understand the impact of the Red Sea as you mentioned in the presentation.
One is I would assume because of the transit time, there could be impact, as you mentioned, on
the Fluoropolymer side, I mean if you can mention the quantum. And broadly, 2 things, as far
as the cost is concerned because wherever we see, we see that the shipping cost has basically hit
the roof.

And second is as far as imports are concerned, which would basically be a strength for us given
that we are relatively more integrated. So putting all the 3 into perspective, if you can give some
color on the Red Sea and the impact...

Bir Kapoor: Your voice was not very clear. It was coming out muffled.

Sudarshan Padmanabhan: Yes. Sir, I just wanted to understand the impact of the Red Sea, as you had mentioned in the
presentation. One is the sales. I would understand because of the transit time, they would have
been a spillover as far as sales are concerned. But apart from that as well, I mean, the cost, and
is the Red Sea actually going to be a benefit for us, given that we are more integrated? I mean
to that extent, our imports will be relatively less dependent as compared to peers. And because
of our cost efficiency, does the Red Sea basically be a tailwind for us in terms of getting more
visibility with customers?

Bir Kapoor: Yes. I think, of course, we are not importing, we are completely backward integrated, as you
know, and our imports, of course, are not...

Sudarshan Padmanabhan: Yes, yes, which is why I'm asking whether that will be a benefit for us.

Bir Kapoor: So I think as far as Red Sea is concerned, for us, it's more of sale getting deferred because we
have a model where we send our material to our warehouses in the U.S. and Europe and extra
15 days being added to shipping time because now it's going via Cape of Good Hope is causing
some sort of a deferment.

And particularly, one more thing, Sudarshan, that our market is on a growth phase, as you know,
that we have been building up volume from month-on-month. So in that case, I need to make

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sure that more of my material reaches my warehouses in North America, and that's what is
causing it.

Coming back to having an advantage, yes, I mean that's inherent advantage that we have, and
that's why our customers are engaged with us because we are -- our intake or our raw materials
are not really dependent on Red Sea crisis.

Sudarshan Padmanabhan: Sure. And I mean, what will be the quantum of the sales deferment, sir? Would it be quite large
or it would basically be relatively lesser? Just trying to understand the magnitude.

Bir Kapoor: I would say probably 1 to 1.5 weeks because that's how roughly the -- my shipments are getting
delayed almost by 2 weeks, which we try to push it and try to make it up, but 1, 1.5 weeks can
be taken.

Sudarshan Padmanabhan: Sure, sir. My next question is to understand on the refrigerant gases. We've seen that last year,
the refrigerant gases went through a pretty bad phase in terms of pricing as well as volumes. But
it was good to see that the light there, end of the tunnel, and we are seeing some kind of an
upward traction in the prices and the volumes. Can you give some color, as we move forward,
is the worst over? What are we looking at as far as things are concerned in this aspect going
forward?

Bir Kapoor: Yes. Again, Sudarshan, your voice was a little bit muffled, but as I understand you are asking
question on refrigerant gases. Is it right?

Sudarshan Padmanabhan: Yes, sir.

Bir Kapoor: Refrigerant gases, of course, the last quarter was normally -- since it's a seasonal thing, last
quarter was supposed to be a good quarter. So in terms of -- if we talk about R-22, yes, we had
a good volume in R-22. Going forward, I think that based on the seasonality, I am not expecting
much in next 2 quarters. However, in the third or fourth quarter, we expect, again, the volumes
to pick up.

As far as the pricing is concerned, from January onwards next year, R-22 quota will get reduced,
and then, there might be some firming up the prices because of that. So we look forward to
perhaps slightly better refrigerants in Q4, okay? But our business focus and our product range
in this refrigerant business is very limited. We are primarily in R-22.

Sudarshan Padmanabhan: Sure, sir. Sir, 1 final question before I join back the queue is we do see a huge opportunity on
the EV side, on the battery chemical side, which we are investing in, and there is also a huge
growth ahead of us, specifically in newer application of Fluoropolymers. Sir, with the capex
ahead, and I'm sure that we would also be funding it from growth from the cash flows. What is
the kind of EV to EBITDA or debt to EBITDA that we would be comfortable with as far as the
balance sheet is concerned to fund this growth?

Bir Kapoor: So right now, as we have indicated, Sudarshan, that -- I mean we have made certain investments,
which we have announced already in EV segment. And our subsequent growth in this segment,
we will be funding it, not from internal accruals, but from external fundings. And we talked a

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lot in detail about it when we had a call in February on EV segment. So we are still holding on
to that. And we have -- there, we had also given a very -- guidance in terms of what our asset
turnover ratios is going to be, what our expected EBITDA margins is going to be. So I think we
are holding on to those numbers.

Moderator: The next question is from the line of Rohit Nagraj from Centrum Broking.

Rohit Nagraj: Congrats on potential improvement in operating performance. Sir, the first question is on the
capex front. So on Slide 13, we had given capex. I think last quarter, the EV capex was slated at
INR800 crores, now we have reduced it to INR700 crores, so is there any recalibration which
we are doing in terms of capex given the current circumstances and where the industry is
obviously grappling with overcapacity from China, so your thoughts on this?

And just second question also, probably more or less alike to this, given that there has been a lot
of capacity addition in China happening across Fluorochemicals, fluoro-intermediates as well as
Fluoropolymers, what is the sense that we are getting in terms of the future, mainly in terms of
pricing and whether our project dynamic also will change based on these new pricing and the
return ratios probably will be lesser than what we are expecting now?

Bir Kapoor: Thanks, Rohit. Let me first take up your first question regarding the capex. See, capex fine-
tuning is a normal process, okay, when we look at that. So our -- I mean, medium-term or long-
term capex plans are all intact. This is -- just in this year, we thought that probably we will be
able to do INR700 crores in EV and some of it actually gets rolled over to the next year, so that
was then.

Otherwise, fundamentals are very strong. We have not -- in the EV, we have not cut any projects.
As we have indicated, we had 4 or 5 product lines, which we are pushing, and our plans to set
up capacities on all these verticals are still there, okay? Coming back to the issue of Chinese
versus non-China, let me take up in 2 parts.

The first is EV segments. EV segments, I think we have indicated many times that the market
and the segment that we are targeting primarily is a U.S. market. And these markets are not
accessible to Chinese players because of the IRA compliance. In addition to that, even the
markets where Chinese players are allowed to enter, there is a very, very strong drive to develop
alternate supply chain, and that's where we come in.

So as far as the Chinese capacities are there, I think we need to look at what are the capacities
which are outside China. And that exactly is where our playfield, and that's exactly is where we
are competing with. And there, if you look at the players, we are one of the strongest for multiple
reasons. One, of course, is that he presents a very strong bouquet of products; and second, that
we have a propensity to grow, and we are fully backward integrated.

We are one of the few players outside China where we are integrated all the way up to Fluorspar.
And if you look at the entire EV product player or the manufacturer, you won't find -- in fact,
not more than 1 or 2 who have this capability. In fact, probably not even 1, okay? So I think if
you look at in the proper segmentation, I think you would understand that the Chinese capacities
may not really impact us on our growth plans.

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Coming back to Fluoropolymers. Fluoropolymer, Chinese capacities are always there, okay,
even when we started a long time back, even today. So I'm not so sure that there is a new Chinese
capacities, which is getting added in Fluoropolymers in China. However, I would like -- Kapil,
do you want to add anything there?

Kapil Malhotra: Yes. In fact, I would say that most of the growth which we have been talking about
Fluoropolymers is going to come into the high value-added segments, and China is not into those
high value-added segments, as also we have discussed in the last calls also. So we are investing
in those products in new Fluoropolymers, which -- where we are going to head for the high
purity segments and the high value-added segments. Hence, the competition is with the legacy
players and has already been indicated to you earlier and also by Dr. Kapoor that some of these
legacy players, either some of them have gone out or some of them are on the way out. So there,
the position for us becomes very clear that we become one of the key preferred suppliers in these
high value-added segments, and that's where the opportunity for us is there to grow further as
we have indicated to you.

Bir Kapoor: Yes. So -- I mean, once again, I would like to reiterate, Rohit, that the fine-tuning of capex is
not too much to be read in terms of market, and that number that we are talking about is hardly
INR100 crores, which is nothing but a deferment of some of the cash flow into the following
financial year.

Moderator: The next question is from the line of Nitin Agarwal from DAM Capital.

Nitin Agarwal: Sir, I'll just go back to the Fluoropolymer comments that you were making earlier. I mean, 2
parts. One is, a, the comment that you made with respect to the legacy players moving out. I
mean this is a commentary that we've heard for some time, have been waiting for this event to
play out.

Sir, if you can just help us understand more from a 2-, 3-year perspective, I mean how is it
withdrawal -- I mean how is the market right now? Where is the market right now, rather, in
terms of the legacy players withdrawing from this market? And at what stage does it start to
benefit us, start get reflected in our volume gains for Fluoropolymers?

Bir Kapoor: Very good, Nitin, good question. I think we had always said about legacy player, but I think
we'll have to look at the entire thing in a perspective that when are they actually exiting the
market, what's the rate, what are they doing. And I'll request Kapil to quickly add here. Kapil,
go ahead.

Kapil Malhotra: Yes, Nitin. So one of the main legacy player has already announced that they will be moving
out by end of 2025. So what has happened is that since they were also into the high segment --
high value-added segment, we already had some drop in products where we started getting some
business and we are already going into that market.

But some of the other grades are under evaluation. So we expect that probably from the
beginning of next year, we should start seeing those as customers have also promised us that the
moment we start getting the approvals, they will start giving us more market shares, and we
expect that process to start probably on a speedy way from end of the quarter of this financial

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year and start gaining quarter-by-quarter in the next year. And by the time they exit, we will also
have a good market share in that segment.

Nitin Agarwal: And sir, on that, if you were to just not to look at numbers, but qualitatively versus -- I mean,
how should we think about the size of the opportunity? I mean both in -- I mean maybe in value
terms or value or volume terms, how should -- what really opens up for us because of this
development, which is going to happen over, say, next 2- to 3-year period?

Bir Kapoor: Okay. So I think exact opportunity is, of course, would be difficult for us to highlight. However,
we were looking at it from the perspective of the capacities that we have in place. And that's also
the legacy player that Kapil was mentioning, particularly 3M. So our plan is to develop the
products. Some of the products are crop-in like Kapil said and some, of course, are being
developed.

So we are -- there we have structured our capacities, and the plan is to capture that opportunity.
It's difficult for me to say what size of global opportunity are there. Typically, I think you can -
- the entire -- if 3M goes away, that entire volume actually gets available, okay? And Kapil, you
can add anything.

Kapil Malhotra: And one more point, see, one is that we are talking about the replacement of the void which is
going to be created. The second, we are also talking about the growth coming in this segment.
So both are opportunities for us. Wherever the opportunity is coming first, we are trying to
capture it. The legacy player going out and also along with the growth coming in these particular
sectors. So it's coupled together.

Nitin Agarwal: Got it, sir. So sir, if I were to just think about this, when you look at the Fluoropolymer business
for this year, for the next 2 to 3 quarters, it probably scales from the levels where it is and then
it probably begins to inflect somewhere in FY '26 and where the pace really takes off. Is that the
way to think about our Fluoropolymer business?

Bir Kapoor: Not really. I think what, Nitin, we are saying is that, that pace is going to pick up in this financial
year itself, okay? We expect the Fluoropolymer business to grow. And quarter-on-quarter, you
will see our Fluoropolymer business' performance improving or going up. And that actually will
-- in quarter 4, we expect it to reach, and it will continue to reach. But the growth, of course, in
the next financial year will be -- will come down. So most of the growth in Fluoropolymer, we
would expect to see during the next 3 to 4 quarters.

Nitin Agarwal: Okay. And sir, the last one. Sir, in terms of the current capacities, which are there for
Fluoropolymers with all of the opportunities that we see in the space, I mean, are our current
capacities enough to take care of that or do we need to step up capex or probably plan for some
incremental capex for this business?

Bir Kapoor: See, what happened, Nitin, is that, that we have put sufficient capacities in terms of monomer,
okay? And right now that the capacity that we have, we expect to get it utilized by fourth quarter
of this year or probably early next year. I think we will have to revisit the potential opportunity
as it emerges probably later on during this year, and we may decide to add reactors, okay,
certainly.

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Moderator: The next question is from the line of Utkarsh Somaiya, an individual investor.

Utkarsh Somaiya: Can you please provide details on the specific products and the application that the new
subsidiary in Oman plans to manufacture? Also which market segments will the products cater
to? And how will they integrate into the EV ecosystem…

Moderator: Sorry to interrupt, Mr. Utkarsh, could you come a bit close to the handset and speak?

Utkarsh Somaiya: Yes. Could you please provide details on the specific products and their application that the
Oman subsidiary plans to manufacture?

Bir Kapoor: Yes, Utkarsh, the Oman being an FTA country to U.S. as -- and we have always indicated that
our -- one of our focused market area is U.S., so it will be focused on battery chemicals,
primarily, and catering to U.S. market. At this point of time, I cannot give you more details about
the product, but it's primarily the -- for EV segment and catering to the U.S. markets. That's what
the plan is right now.

Utkarsh Somaiya: Okay. Any more comments as to how it might integrate into the broader EV ecosystem, if you
can comment? I mean, if you can't, it's okay, but in case you can give any details.

Bir Kapoor: No, in terms of integrate means, it will probably be the similar product lines that we already
have. So it will be -- we'll probably be manufacturing these products from another site, which is
located in an FTA country to cater to U.S. markets. And this is, again, primary to ensure the IRA
compliance and giving us strength to access to those markets.

Utkarsh Somaiya: Is this a product extension or just a plant to manufacture the same products?

Bir Kapoor: It's going to be the similar product lines. If you look at the battery segment, what we had already
indicated, there are a few product lines and which we will continue in those. And again, it will
more be on the chemical segments.

Moderator: The next question is from the line of Ketan Gandhi from Gandhi Securities.

Ketan Gandhi: Sir, is it possible for you to quantify the revenue not booked due to the Red Sea?

Bir Kapoor: Just a rough number could be INR70 crores to INR80 crores, Ketanji, that's what number is.

Ketan Gandhi: Yes. Fair enough. And sir, any plan to reduce the cost of energy? It is, I think, biggest and the
largest line item in the expenses. I believe we had thought that we should be buying wind or
solar power from the C&I segment. So how can we save on cost of the energy going forward,
and if you can quantify that amount?

Bir Kapoor: That's already in our plan, Ketanji, that we are looking at beginning of next year, getting into the
renewable energy and putting long-term contracts in place for the same. So probably next year
onward, you will see improvement in our energy cost and also have both advantages, not only
the cost, but also the environmental footprints, okay?

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Ketan Gandhi: Any ballpark figure, sir, how much we can save in next 2 to 3 years, broader idea? If you couldn't
share, otherwise, it's okay, I mean, if you can't share.

Bir Kapoor: Around INR100 crores, you can take. I mean, we'll probably be more specific when we talk to
you maybe later in this year. In that order, okay, INR100-plus crores.

Moderator: The next question is from the line of Sanjesh Jain from ICICI Securities.

Sanjesh Jain: Sir, just 1 question on this capex of INR500 crores and INR700 crores which we intend to do in
FY '25, can you give us more detail where are these capex spent, particularly in the parent entity?

Bir Kapoor: See, parent entity, I think we had already indicated earlier, some of it is ongoing capex that we
had started last year in Fluoropolymer capacity expansions. We have also, as we have indicated
that we are -- we have set up a post-processing facility also to get into the premium end segments.
So most of it is actually in Fluoropolymer, Sanjesh, okay? And that we started last year. Some
of it is capacity building, some of it is post-processing. So it's primarily the Fluoropolymer
segments only, okay?

Sanjesh Jain: And what is expected capex for FY '26 assuming that we achieve the target for this year? How
should it look like for FY '26? Will it be to the tune of INR500 crores to INR1,000 crores, again,
for the Fluoropolymer segment?

Bir Kapoor: Sanjesh, give us a little bit more time because I think we'll probably have it by the next 2 quarters.
So we'll have a firmer plan, and we'll guide you on that. But, of course, a lot of it depends how
it takes up, and then, our plan to add more capacity as we get these capacities utilized, okay?

Sanjesh Jain: So what we were thinking in terms of Fluoropolymer capacity, say, 2 years back, are we there
or we are still short of it?

Bir Kapoor: No, which -- when? Fluoropolymer capacity, when? You're talking about 2 years from now or -
- I didn't get your question.

Sanjesh Jain: No, no. Sir, 2 years back, we were planning to go from 700 metric tonne per month capacity to
1,600 to 1,800 metric tonne per month kind of a capacity. Are we there now with this year or
you think there is still some headroom from the previous capacity expansion?

Bir Kapoor: We are almost there, Sanjesh, except in some of the Fluoropolymers, we have held back our
reactors because we have put up the capacities for monomers, okay, but we are more or less
there, what we had planned.

Sanjesh Jain: Okay. So, sir, next year, it would be a capex plan that will be beyond that what we were -- we
had in our earlier projections?

Bir Kapoor: I'm only -- I can -- if I have to -- as I said, that we'll give you a firm answer maybe by the end of
this year, but nevertheless, if you want to look at the direction, the first direction would be to
add more reactors where we have monomer capacities, whether that monomer is in the -- on the
TFE side or on the 142B side. So we'll have capacity first to exhaust it and then look for
additional capacity later on.

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Moderator: The next question is from the line of Rohit Nagraj from Centrum Broking.

Rohit Nagraj: Again, apologies for harping on the China side. So on the Fluoropolymers, we are primarily
going for value addition. However, the base capacities -- I mean, base polymer capacities are
there in China. Effectively, the base polymer, Fluoropolymer pricing, will it be more or less
determined by China and our value addition will certainly dictate the prices of what the high-
end polymers are? So just your perspective on this, sir.

Bir Kapoor: Yes. Thanks, Rohit. I'll again -- once again invite Kapil to take your question. Please, Kapil.

Kapil Malhotra: Yes, Rohit. In fact, 2 quarters back when we had the investor call, there I had mentioned that
our plan is to move away from the Chinese competition and go into those applications where we
are going into aerospace, automotive, semiconductor, EV applications, where the Chinese are
not present because the nature of these applications as such, they require high purity products.
Secondly, the gestation period in terms of the approval cycle is pretty long. And that's where we
score.

And so hence, there, the prices are not dictated by the Chinese. There, the prices are just there
where you can get your best prices from the customers on the value addition you are giving to
the customers. So this is a segment where we have kept ourselves going from strength to
strength. And despite the headwinds from China, we still are trying to see to it that we grow
strength to strength every quarter, and that is why we constantly talk about it.

Rohit Nagraj: Sure. This is really helpful. Sir, just second question. Again, apologies for harping on the
guidance part of FY '25 in terms of EBITDA. So we are looking at a quarterly EBITDA run rate
of about INR400 crores to INR500 crores. And given that first quarter we have done about
INR260 crores, INR270 crores, it's slightly probably a longer way to go.

What gives us confidence that we will reach that level of INR400 crores, INR500 crores over
the next maybe 2 to 4 quarters? Is it backed by certain firm orders from our customers or the
other way that you had indicated about the competition going out of the system? So are there
some capacity of the competition, which is going out of the system in near term? And later on,
again, incremental capacities will go out of the system? So just your thoughts on this.

Bir Kapoor: Yes. Once again, Rohit, I think the confidence that we are getting, part of it is it's both because
we have certain approvals in place, and there has been an indication from our customers that it
will -- the volume will pick up. And we have all the elements in place today. We have the
capacities, we have validation, and it's a natural growth process in some of the products that we
expect. And this is once again driven, primarily by the legacy players and also by the natural
growth that we are seeing.

Clearly, we had indicated earlier about the semicon. We are seeing a very strong tailwind in this
sector in one of our product lines where the demand is -- there's a pull from the customer side.
And we are gearing up to meet that pull. And that's where our confidence is coming from because
we have volumes, which has been indicated by the customers.

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In some cases, when we talked about the domestic segments, Kapil mentioned about FKM, and
there is a potential upside that we are expecting in this, okay? It will come, Rohit, in the second
half as -- okay, you'll see a buildup coming up in Fluoropolymers, okay? So today, we are on
inflection point. We are very close to where we were in the quarter 1 last year, which was actually
the end of the FY '23, okay? So now the reverse process will start from here onwards.

Moderator: The next question is from the line of Yash Shah from Investec India.

Yash Shah: My first question was regarding the EV battery capacity, what we have in LFP, LiPF6 and the
electrolyte, just wanted to understand how much we are going to be able to use captively versus
selling it outside. So will you be able to provide some color how much of the capacities do we
have across the value chain?

Bir Kapoor: Yash, we have not provided any numbers in terms of values and also details like that because
that's -- we believe at this point of time when we are building up the business, some of it is we
need to keep it confidential for the competitive edge, okay? So it will not be possible for us to
give you the precise numbers.

Yash Shah: All right, sir. No, that is fine. But if you can provide basically broadly to help us understand how
much will you be using it captively? Like what are your plans regarding using them captively
versus selling them outside, some kind of a proportion or a ratio which you have -- which you
might have like basically drawn at this point?

Bir Kapoor: See, the captive will primarily be used for electrolytes, okay? And electrolyte will be mostly for
domestic sectors. So our LiPF6 for domestic sector will primarily go as electrolytes, okay? Now
-- so the ratio, if I have to give you any indication, it will not be possible for me to give you
exact, but to directionally, whatever LiPF6 that I'll be targeting for domestic sector will be the
captive consumption, okay?

And whatever is going out to global would be the -- going as a salt. So long-term growth plan
when India market fully develops, probably it can be a significant split, perhaps 50-50 of that
order. However, in the short term, it will be dominated primarily by the global side, okay? All
right?

Yash Shah: Yes, sir. This is helpful.

Bir Kapoor: Thank you so much. Thank you.

Moderator: The next question is from the line of Abhiseck Jain, an Individual Investor.

Abhiseck Jain: So recently, I was going through a report from one of the broker, where they are saying that
GFL's most product is mostly on the PFA side and which is facing the issue due to environment
concerns and the reason that players like 3M is exiting is because of the environmental action.
And in future, there may be a product which may be PFAS-free. So in line with that, just wanted
a view on that, how do you think this happening, whether India and other economies will stop
taking PFAS and there will be alternative to it? How is the landscape going to be?

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Bir Kapoor: Yes, Abhishek, I think we have talked a lot in detail about this in some of my previous calls.
One of the reasons for exit was not really related to Fluoropolymer because the PFAS issue is -
- primarily is for fluoro compounds, which are mobile and toxic, which essentially gets into the
-- which has a mobility getting into the cell mechanisms, okay?

So the thing is that -- so they have to have mobility in the ecosystems. So typically,
Fluoropolymers are a very inert compound and not that much falling into the category which
may pose any kind of a threat because of the PFAS. And this has been recognized, and there has
been -- now if looking at the new regulations or the direction in which regulatory authorities are
going, they are trying to exclude the Fluoropolymers out of it.

However, in the process of making Fluoropolymers, there is sometimes fluorinated aids are used,
and that can potentially create some issue, but that is highly contained now and that also is not
an issue at this point of time. So I think we are -- it's not that, that we are concerned. We are not
really concerned about it because Fluoropolymer as products are high-performance material
going into the sunrise sectors, whether it's solar or EV or hydrogen. So they are all getting into
these new sectors, and they are being -- they are required for the growth of this new-age
segments. So I think it has been well recognized right now, Abhishek, and there's no that way
pressure in terms of phasing any of the Fluoropolymers out because of the -- and it has been well
recognized globally.

Abhiseck Jain: And what about the -- also news of the Clariant developing a product, which is PFAS-free? Will
that be a competition?

Bir Kapoor: Which free? I'm sorry, I didn't get your point.

Abhiseck Jain: PFAS-free product by Clariant.

Bir Kapoor: Clariant is not into Fluoropolymers. I'm not sure what you're talking about because they could
be talking about -- because they are into paints and coatings and additives, so maybe there may
be some specific products, which they may be talking about, but I'm sorry, I cannot comment on
that.

Moderator: Ladies and gentlemen, that was the last question for today. We have reached the end of our
question-and-answer session. I would now like to hand the conference over to the management
for closing comments.

Bir Kapoor: Thank you very much. Archit, thanks for -- and I would like to thank all the participants and the
investors for taking interest in us. Clearly, as we had indicated earlier, that we are seeing a
turnaround, and we continue to maintain that position. The growth rate, however, may not appear
to be as high as we would like to see; however, it's firm in place. And the quality of this growth
that now we are seeing, driven by Fluoropolymers, we expect it to be more robust and stable,
and we expect to see and continue to see this growth quarter-on-quarter.

As I had indicated in between our call that we expect to see more in the second half of this
quarter. So clearly, I think, yes, there are always minor headwinds here and there, but

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fundamentals are very, very strong. And I think we are on the growth journey. So this is for
Fluoropolymers.

And for EV, of course, our fundamentals are very, very strong. We are -- our positioning in EV
is also very strong. We are one of the highly credible partner, which has capability to execute
battery chemicals and deliver battery chemicals globally across all our customers. So -- and also
driven by the supply chain, which is independent of China, okay?

So with this, I would like to thank all of you and look forward to connecting with you again next
quarter. Thank you.

Moderator: Thank you. On behalf of B&K Securities, that concludes this conference. Thank you for joining
us. You may now disconnect your lines.

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