FLUOROCHEM - Gujarat Fluorochemicals Limited Share Price

Question 1: What is the capacity we have started with for R-32, what is our utilization, and what is the final capacity intended by December 2027?

Bir Kapoor: We are targeting to ramp up to 20,000 tonnes in R-32 capacity, delayed by a quarter due to safety audits. Production has started now, and we anticipate achieving this capacity by December 2027. We aim to expand to our quota limit, potentially up to 30,000 tonnes long-term.

Question 2: How should we look at margin given the continued decline in R-22 prices?

Bir Kapoor: The drop in R-22 prices impacts margins negatively due to low realizations. However, we believe that with R-32 coming online and improving market conditions, we can see positive improvements in the refrigerant sector moving forward.

Question 3: What is the outlook for fluoropolymers growth, considering industry changes?

Bir Kapoor: While growth has been 14%, external factors like the rejection of antidumping duties and tariffs have hindered expectations. However, we remain optimistic as we see increasing demand from various sectors, particularly semiconductors and automotive.

Question 4: What is causing the increase in inventory days?

Bir Kapoor: Increased inventory arises from cautious ordering and holiday slowdowns in international markets. We anticipated orders that did not materialize as expected. We're targeting a reduction to 170-180 days of working capital in the future, with signs of inventory normalization.

Question 5: What are the revenue and capacity expectations for battery chemicals in FY 2027?

Bir Kapoor: We expect 2027 to be a growth year, especially from LiPF6 sales, with early revenues anticipated. LFP and electrolyte revenues may materialize as customer qualifications progress, contributing to overall capacity utilization and revenue growth.

Question 6: What is the forecast for fluoropolymers and how is the customer transition going?

Bir Kapoor: Customer transition is steady, influenced by inventory liquidations from legacy players. Current barriers are easing, and with tariff reductions, we're confident of reclaiming growth momentum, allowing for anticipated quarterly progress.

Question 7: How are raw material factors, like those in Oman, influencing your operations?

Bir Kapoor: Oman presents strategic advantages like tariff benefits and lower energy costs. Although raw material availability isn't immediate, the area's evolving ecosystem is set for long-term benefits, supporting our supply chain goals globally.

Question 8: How is the EV product subsidiary progressing towards revenue growth?

Rajiv Rao: We expect significant revenue growth from LiPF6 and binders in FY 2027. With approvals in place and trials ongoing, our capacity is geared toward global markets, focused primarily on the U.S. and EU, while also looking to increase domestic presence gradually.