However, spread improved during January from average $70 to $100-110 levels, if it able to maintain current level we could see better margin performance in Q4. During Q3FY20, production of PAN vol- Stock ume grew by 20.4% on a sequential and 13% on a yearly basis on the back of favourable base. Net CMP (INR) profit declined by 74.5% to INR45mn (est. INR 101mn), due to an operationally weak performance. In order to meet growing demand and limited headroom for volume growth (capacity utilization 91%), IGPL has proposed to set up a new plant through Brownfield expansion (PA4) and increase its capacity by 53,000(TPA), taking its total capacity to 2,22,100 TPA. As per management, PA4 is expected to get commissioned in Q4FY20 (mostly in march) and expected to reach 85-90% utilization level in first year of commissioning. With capacity coming on stream, management believes they will substitute PAN import by ~30%. Currently Indian companies PAN import stands at ~15000tn/ month which...