Ladies and gentlemen, good day. Welcome to the UFlex Limited Q3 FY23 earnings conference call hosted by Dolat Capital Market Private Limited. 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 0 on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sachin Bobade from Dolat Capital Market Private Limited. Thank you. Over to you, sir.
Thank you, Livon. On behalf of Dolat Capital, I welcome you all to the Q3 FY23 earnings conference call of UFlex Limited. Hope you all and your family members are staying safe and healthy. From the management side, we have with us, Mr. Rajesh Bhatia, Group CFO and President; Mr. Anantshree Chaturvedi, CEO of Flex Films International; Mr. Apoorvshree Chaturvedi, Director EU Operations and Sustainability. I hand the floor to the management for their opening remarks, and then we would have question- and- answer session. Over to you, sir. Hello.
Yes, sir. Please proceed. Mr. Bhatia, may you please proceed?
Yeah. Yeah. Yes. Good afternoon to all of you, welcome to Q3 conference call for the earnings for the Q3. Overall, you know, this quarter I'll split into two parts. One is India, where we have seen a very strong growth momentum, the offshore business, which is basically packaging films business, where we have been seeing some softening and, you know, we'll explain you the reasons for the same. Then, you know, it can be followed by Q&A. Let's first, you know, look at the positive aspects, which is, you know, India business where we've seen a growth of about volume overall growth of about 13% this quarter. The packaging business has seen a growth of about 34%.
Of that, you know, the revenue for the business is up to about 20%. EBITDA is maintained. So that's basically sums up, you know, the India business, where we've seen a strong momentum in the packaging business volume, which comprise of the flexible packaging as well as the Aseptic packaging part of our business. If we come to the consolidated numbers, yes, on a three-month basis, we on a quarterly basis, while the income, the revenue is almost maintained, and it's marginally up by about 0.6% to about INR 300,496 .
The EBITDA has suffered to about INR 429 crores without any exchange fluctuation, and which we compare on a YOY basis, which is down by about 28%. This quarter we've seen an unprecedented foreign exchange losses, both on account of a devaluation by Egypt by about 22.3% on 27th of October, and also some of the translation and restatement losses, again, which are notional because of. You know, because we report our numbers in the rupee format and, you know, translate from all the currencies first to dollar and then from dollar to rupee, we've seen a huge impact of about aggregating to about INR 236 crores in this quarter.
You know, that's the prime driver for the reason why, you know, this quarter's numbers do not look good. Again, I say that most of that is notional only, the exchange losses. We've seen some degrowth in the offshore business, largely because of the two facts. One, you know, we had forgotten during the COVID period that what is the normal. So one, that realization now that COVID is behind us is back to the reality. You know, normally, pre-COVID, this period of October to December is always soft, you know, as compared to some of the other quarters. That realization, that reality check is now setting in.
But, you know, this reality check was also accentuated by, you know, two factors. One is the Russia-Ukraine war, which led to a huge increase in the energy costs for us as well as for the general consumers. Obviously it hits the consumption as the consumer has to choose between eat and heat, particularly this winter. You know, their disposable income, they had to realign in terms of the higher energy costs, what the household had to pay, and also the higher EMI if, you know, they have taken any loans for housing or otherwise. There has been a redistribution of the income and, you know, some of the discretionary spends have taken a hit.
That was while, and as a reason thereof, we've seen some de-growth in the volume. The second reason is also as the Fed aggressive policy, they're trying to combat inflation. We've seen in some of the. You know, that has impacted, you know, that those very aggressive central policies ultimately, you know, affect the consumption at some stage or the other. More than that, I think, you know, couple of countries where we are operating, like Nigeria, Egypt and all that, this dollar strength has ultimately led to, you know, a huge availability issues with respect to the dollar.
You know, the industries or the businesses which are dependent on the imported raw materials, and, you know, they sell locally, they were finding it very difficult to procure dollars for the offshore procurement. Thereby ultimately, you know, if their volumes are affected and, you know, it's a whole chain. Somewhere, you know, it had to affect people like us also, where if the overall economy is not doing so well, so the consumption also, you know, gets affected. I think this, having said that, you know, this is the quarter where we've seen the maximum impact of this, these losses exchange as well as the some of the de-growth in the packaging film business globally.
We foresee that the current quarter will still be better in the Indian operations as compared to the previous quarter. Currently we are operating at above 130% capacity utilization in our Aseptic Packaging business in the month of January. The season has just started, so we see a very strong momentum in that business as well as our flexible packaging business, which in the month of January has reported the highest ever volume ever. These two businesses are quite stable and that's what, you know, diversification of the revenue streams in India has been, you know, very well demonstrated in this quarter, whereby the films business suffered in terms of its profitability.
While the other businesses, Aseptic Packaging, flexible packaging, inks, adhesives, chemicals, cylinders, they've all made up for what was the lower contribution by the films business. Now, offshore business is only a pure packaging films play, and that's where, you know, we see, you know, once that business is down for the reasons I already explained. We were there, you know, coupled with the exchange losses, I think, that business has not done so well during this quarter as it was doing in the previous six quarters. Nothing that, you know, we are so worried about our market share, everything else, you know, we've taken the opportunity to grow back in some of the difficult times.
Surely, I think, another quarter or two, we'll be back on track in terms of offshore business. The India business will continue momentum both in the packaging, flexible packaging as well as in the aseptic packaging and also some of the intermediate businesses, especially the chemicals, and cylinders. That in nutshell is the theme for the Q3 performance. I think what is important to note is that, you know, while, you know, the industry, if you see all other players also, they've reported also a lower number both for their India as well as the offshore businesses.
That's where UFlex gets differentiated from the rest of the players as the other businesses, related businesses, revenue streams have compensated for, you know, the loss of, you know, revenue and the profitability in its, in the packaging films business. No doubt, the packaging films business is the largest for us, and the other businesses are much smaller as compared to this. You know, wherever we see an opportunity to do better, we do that. We are looking to further debottleneck our existing Aseptic Packaging business to take it close to 12 billion packs a year from the nine billion packs a year run rate currently at which we are operating.
The, the order momentum is, you know, sort of pretty strong there, both in the domestic markets and as well as in the offshore markets for this business. There have been months where, you know, when the India season goes down, you know, earlier there have been situations where, you know, your plant capacity utilization drops drastically, especially in the months of August and September onwards. This year, we've seen we've done, you know, even in those, you know, non-seasonal months also we've done better because we grew our export markets.
As a result of which now we expect that, you know, in the year 2023, 2024, we will see much of, not much of seasonality going forward into this business as we, as we ramp up our export markets. Even at a 12 billion pack a year market, I would have reasons to believe that, you know, we have order bookings to, you know, serve the customers. The market has been pretty good for both for the flexible packaging as well as for the Aseptic Packaging business. That's in nutshell is the key takeaways from UFlex. We are open to any questions on our performance over for the quarter. Thank you.
Thank you. Ladies and gentlemen, we will now begin with the question and answer session. Anyone wishing to ask a question may please press star and one on your touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use answers while asking a question. Ladies and gentlemen, we will wait for a moment while the question pool assembles. The first question is from the line of Saurabh Sharma, an individual investor. Please go ahead.
Hello, am I audible, sir?
Yes, you are audible.
Thanks. Hello, Bhaskar. My question was regarding the Aseptic Packaging and why segmented information for that is not being provided, even though engineering activities is being provided, which is at currently at a much smaller scale than Aseptic Packaging?
I think there what we are doing is there we are, you know, guided by the accounting standards where, you know, all the packaging activities and the packaging sales is taken as a packaging activity. Engineering is of course a separate activity as required to be reported under the laws of the land, and that's how we distinguish. We also shy away from giving you a number on these two separately, being a bit confidential information. You know, we're happy to tell you the plant capacity utilization levels, and you know the capacity. In a way you're there's enough information for you to derive as to, you know, what kind of a growth, kind of momentum we have in that business.
Bhaskar, profitability becomes a problem. The revenue of course is one can derive that. Profitability of that 20% EBITDA is something that has been guided earlier, then there are all kinds of variables that keep changing, considering the fact that Sanand plant is a separate standalone entity and isn't really enmeshed in the other operations of the company. It having achieved a particular scale right now. You know, it's just maybe a pointer maybe for the management to sort of consider going ahead. I understand there is confidentiality involved here, if, you know, I mean, you could just give a sense of the profitability and that being a separate...
From your commentary also, it's being referred to as a separate growth driver. It gives... You know, if it's a private company, if Uflex is a private company, it's a separate issue. For shareholders, minority shareholders, it becomes a bit of an added incentive to sort of invested in the company. That was my little thing about the segmented information. The second question would be how does the company plan to sort of, you know, take care of the debt situation going ahead? This quarter has been particularly harsh from the profitability point of view.
How does the company intend to handle the debt situation going ahead, assuming things do not look up for some time? I'm sure, in addition to the open lines of debt, there are also covenants that are not.
Can you concise your question? Can you concise your question?
Yeah.
In the question itself.
What is the company planning to do about the debt situation going ahead if profitability remains a problem in the near future in terms of debt covenants which are not public right now? What does the company plan to handle the debt situation?
I think the covenants are currently all under control. There are no issues with respect to any covenants. In our European businesses, yes, when we look at the trailing 12 months, you know, we're still fine. We may have some issues, you know, on a quarterly number isolation basis. Whenever there are such scenarios, I think the bankers do understand that. We're hopeful that, you know, we will get waivers from them because they also understand the situation in the European territory, particularly where the cost of energy has hit us. Not only us, but across all the industries. You know, there is an impact on the consumption because of this.
They are very well supportive of if there are any, you know, sort of covenants breach. We'd, you know, As we said that we expect that Q2 onwards, you know, we will have in the positive growth territory in our offshore business as well. You know, in case there are situations which prolong for the reasons which are not under our control, I think our entire stakeholders, you know, which are debt lenders, I think they fully understand the fact that, you know, this may lead to some breach in the local covenants, which they are ready to, you know, sort of give us some more time to comply with those.
Okay. All right. Thank you very much.
Thank you. A reminder to the participants, anyone wishing to ask a question, please press star and one. The next question is from the line of Rushabh Shah from Anubhuti Advisors LLP. Please go ahead.
Thank you for the opportunity. Sir, can you give the exact volume numbers for this quarter?
Which one?
Absolute packaging volumes. I think the last quarter they were 150,000 tons.
No. This quarter we did sales volume of close to about 140,000.
140,000 tons.
Yes.
That could be approximately 6-7% decline on a sequential basis. That would be correct?
Yes. Yes. Yes. Yes.
Okay. Okay. With respect to our Dharwad project, the bookend addition of 68,000 tons per annum, when can we expect that to come online?
I think, we doing, you know, the trial runs are there. We had some situation on account of power over there. We were currently we are on, you know, sort of, a power which is a self-generated power. Given, you know, the mechanical consumption I told you has been completed for some time. The power issue is still getting resolved. By end of March, first week of April or so, I think we'll be up and running commercially on that facility.
Sorry. I missed the date timeline.
End of March or, first week of April we'll be up and running with those numbers.
Okay. Okay. Thank you. Thank you. Just on the finance cost number, I think this quarter sequentially we see the finance cost has come and higher by 26%. Can you just divide the mix that how much came in actually from higher finance cost and if you can share the absolute debt number which is outstanding as of 31st December.
I think the debt number as on 31st of December, working rather of is including working capital and long term it is of, net debt is about INR 4,460 crores.
INR 4,460 crores.
Yeah.
Okay.
This includes working capital. This includes long term. This includes working capital, everything. less of the you know, the cash balances what we keep.
Okay. Okay. Got it. You, we were planning to reduce debt by approximately INR 500 crores during this fiscal. Would that be done in the Q4 itself or this would go in next fiscal?
I think you got it wrong. What we said that there is amortization of the debt which is as per the agreed amortization schedule with the bank. That is happening on its own on a quarter-to-quarter basis. That's the number. As we complete our Dharwad project, as we, you know, sort of spend more monies on our Panipat project. We will see that, you know, more or less, you know, those additional debts will get added on to the debt which is already being repaid. That's where if you see on a quarter-to-quarter basis, the net increase in the debt is not too much.
Okay. Okay. Do we expect debt to further increase from this level? Maybe around guidance.
Yeah, it will go up slightly. By, you know, there'll be repayments, there'll be fresh debt added. You know, I think, based on the current plans that we have, we do not expect any substantial numbers to be added on. What gets added on is almost the same numbers is what we are looking in terms of our amortization payments. You know, there's nothing any alarming on this account which will get added on the debt numbers.
Makes sense. Makes sense. After Dharwad and Panipat, I believe there are no significant CapEx coming up except some small.
Yeah. Yeah. Yeah. Yeah.
Okay. Okay. Sir, just last one question. Any guidance on the margin front maybe going ahead, maybe next one or two quarters are challenging, but any broad long-term margin guidance which you can share with us?
Difficult at this stage. I think we have to see the Q4, especially in terms of offshore business. India also there has been some extra capacity which has come, so it's finding its place in the market. The market is, you know, re-adjusting itself. I think in the next quarter, you know, I will not see any huge impacts of some of these on the margin except that, you know, some of the exchange losses and all that, you know, may not be to that magnitude. Having said that, I think the Q4 will set the tone for the FY24, and that's a better time to, you know, give you a guidance for FY24.
The first and the foremost is that, you know, we should look to recover the lost volume. While we know that the overall volume has shrunk, I think the guidance from the top management is to, you know, sort of strengthen the market share. You know, UFlex is much stronger, whether financially or otherwise in terms of, you know, gaining and retaining the market shares, you know, in whichever markets we are. So the whole momentum is that, you know, whatever are the numbers that we've lost in this quarter for the volumes, I think we can make up for that and then look for, you know, as to what should be our margins, as to how do the margins settle in each of the territories that we operate in.
Currently I'm abstaining from giving any guidance because, you know, but I can tell you that, you know, the January month has been, or the middle, up to middle of February, it's been much better than the last quarter in terms of the numbers.
Okay. Any color on current BOPET spreads? Those remained at the same level as of 3Q or there is some improvement?
No, it's at the same level.
Okay. Thank you so much, sir. All the best.
Thank you. A reminder to the participants, anyone wishing to ask a question may please press star and one. The next question is from the line of Kaushik Poddar from KB Capital Markets Private Limited. Please go ahead.
In your BOPP and BOPET, there is a good amount of capacity that has come. Will that not result in margin reduction even next year also?
I don't think so there's any more room left to reduce the margin, in both of them. I think, you know, whatever is the demand side is there, you know, people will look to, you know, realign their production. You know, because if the market is of size X, you produce 1.3X. You know, that's not going to get absorbed just because, you know, you produce and you sell cheaper and all that. I think the margins have hit the lowest, you know, level in the Q2, in the Q3. Here on it's only a positive development that we are expecting. If not on the margin side, if not in Q4, definitely in Q1.
Can we take it the 13% margin if you leave aside this, exchange loss, that is the bottommost, margin we can expect from you?
I think if we take out the exchange loss for the nine-month period, we are at about 14.5% for the nine-month period. You know. I think for the year as a whole also we should be slightly better than this. Next year, I think we'll be able to give you any guidance only after, you know, what we see, what we do in Q4, you know, only then we'll be able to guide. For the nine-month period, it's a 14.5% EBITDA margin excluding any exchange losses. You know, if you see EBITDA after the exchange, yes, it is about 13.1% for the nine-month period.
Okay. Okay. Fourteen percent is the bottommost we can expect, a normal level?
I - I mean, at worst we can expect, 14% EBITDA margin.
EBITDA for Q1 is lower.
Mm.
EBITDA for this quarter obviously is lower as compared to the first two quarters.
Mm.
Putting that, if we were to replicate our performance, what we had in this quarter itself, we are looking at an EBITDA of about, say INR 2,100 crores, for the year as a whole, with a top line of, this, 11,391 divided by three into four. About 13.8% or so. That's what it looks like without any exchange, you know.
Okay.
negative or positive, whatever the case may be.
Okay. When is this expansion of your Asepto Packaging to 12 billion units going to take place?
That will take time. Not in this season. Definitely in the next season we'll see that.
Currently your run rate is 9 billion units, is it? On a monthly basis. On a yearly basis, on an annualized basis.
That's based on more or less 45 days of operations in the calendar 2023.
Okay. The straw for this, the paper-based straw for this, Tetra Pak, have you been able to make it, operationalize it?
Yeah. Those challenges are taken care of, and there is no effect of that on the business.
Okay. Okay. Thank you. Thank you.
Thank you. A reminder to the participants, anyone wishing to ask a question, may please press star and one. The next question is from the line of Chirag Singhal from First Water Capital. Please go ahead.
Sure. Thanks for taking the question. First question is on the Asepto. You mentioned that, you're increasing the capacity from 9 to 12 billion packs coming the next season. Given the growth that you have posted in Asepto, you know, post-commissioning of the second line, even this new three billion packs, you know, may run out in next one to two years. Are you already considering any expansion plans in terms of brownfield, greenfield for the Asepto division?
Nothing on the anvil as of now. Right now, you know, what we are concentrating is on the low-hanging fruits and the lower hanging is that, you know, if you can do from 9-12 without any substantial investment, I think that's the way to go. Nothing firmed up on any subsequent green or brownfield expansion as of now.
Okay. What about the margins? In the past, you mentioned that Asepto, you know, generates roughly about 20%-25% of EBITDA margin. Going forward also, we can expect.
It will be at about 20% or so. 20%.
20% is a sustainable margin going forward?
Looks like, you know, there'll be dips and ups and downs, season versus non-season. You know, a blended average of 20% would be a good estimate.
Okay. Right. My next question is on the interest cost. The interest cost, especially if I look at the consolidated stand-alone, that has gone up substantially. It is INR 40 crores in the previous quarter, which has gone to roughly INR 65 crores in the Q3. Is this because of the higher cost of debt or because I think most of your expansions in the overseas have been commissioned. None of the expansion would have been commissioned in Q3. Is this because of the cost of debt going up?
Both factors. One is the cost of debt has gone up, especially, you know, if you look at Nigeria where we have, it's almost doubled, you know, the cost of debt. When we look at, you know, even, you know, the dollar-denominated or euro-denominated debt where, you know, while the spread's fixed but, you know, the SOFR or other benchmarks have gone up. First is that. Second is, you know, we commissioned the CPP facility in Dharwad. We commissioned the CPP in Dubai as well. Those two extra capacity coming on stream. Wherever there was a CapEx related, you know, those things having come on stream. That debt interest costs has been added.
A very large part of the, you know, increase this quarter has been on account of Nigeria increasing its interest rates substantially.
On an overall level, if you can give the cost of debt that we can work with for the coming fiscal, as in the Indian business as well as in the overall overseas business, what will be the cost of debt?
If you see current quarter, you know, on a consolidated basis, our debts are, it's INR 133 crores. If we divide it by 4,500.
Mm-hmm.
It's about 12%. India debt rates have also gone up. There is some impact because we have not added any substantial debt in India. India numbers is INR 45 crore this quarter. Last quarter was INR 41 crore. A year before it was INR 40 crore. The impact is not much in the India business because, you know, the debt number there itself is not very substantial. But in India, whatever is the impact of the debt, you know, that may be largely because of the increases we've seen in the last two quarters and the CPP at Dharwad, you know, coming into the commercial production and that debt number, you know, adding to the interest costs.
Okay. This INR 500 crores of debt that you mentioned, this is the net debt, not the gross debt?
This is the net debt.
Okay. Okay. All right. How are you looking at spreads in especially in the overseas, you know, operations? Because, as far as I understand, most of the BOPET capacities that have come up is in China and India, especially. Are you seeing like stronger spreads in the overseas operations? Do you feel that it has bottomed out, and you're already seeing some sort of an improvement, you know, in the coming quarters?
I think that's what I said to begin with. Looks like that Q3 was the worst. A lot of factors came together to, you know. I'll have to use the word probably the entire universe conspired to, you know, to reduce the margin. You know, we had the raw material cost going down. Obviously you carry some inventory all the time, so there are inventory losses which are built into this. You know, the raw material prices came down, so did the finished goods prices. The consumption came down, which led to, you know, the price still more pricing pressures.
I think everything that extra capacity came on stream and people, you know, everybody vying for a reduced shelf space. All that has happened in the Q3. Probably, that's what I've said earlier. This seems the worst seems to be over. Q4 and Q2, Q1 onwards, we look for better volumes as well as the margins, both in India as well as offshore.
Okay. All right. There's one last question, before I join back in the queue. This INR 36 crores of total Forex impact, which we saw in Q3. Was this notional impact or, I mean, was this like a non-cash loss?
I think most of it is non-cash loss. There are, you know, like Egypt devalued its currency twice in the last 12 months. That INR 85 crore, INR 84 crore impact is taken as an exceptional item. The impact on the currency on account of two reasons when come. One is the translation losses. When you work in a particular country in the local currency, and then you convert that into dollar, and then from that dollar to rupee to your reporting currency. Those kind of things are mostly, you know, notional in nature because, you know, your effective currency remains the local currency. You know, you have the surpluses there, which you keep on reinvesting there in those markets.
You know, Egypt's kind of a devaluation ultimately helps you also because any devaluation largely means while it has an impact of a shorter tenure on your numbers, but you know, it insulates you from any onslaught of, you know, imports into that, imports into that country. I think we not too worried about, you know, because we work in all these countries, so, and, you know, we have that, we have to take those currency fluctuations into our stride because you simply can't work in the dollar. Like in India, you can't, you can't sell to your customer based on the in the dollar value. So is with Egypt, so is with Mexico, so is with Nigeria and some of these territories work.
If you convert those numbers back into the $, obviously, you know, the things will look from a different perspective. Most of this would be, you know, a substantial part of this is national revenue.
Okay. All right. Thanks for answering the questions. Thanks.
Thank you. A reminder to the participants, anyone wishing to ask a question, may please press star and one. We'll move on to the next question. That is from the line of Abhimanyu Rathore from KC Advisors. Please go ahead.
Yeah. Thank you for the opportunity. My question is on the Aseptic Packaging business. Sir, given the growth that the businesses division is registering and the margin profile, I just wanted to understand that is there any internal discussion on, you know, delisting the business as a separate entity or a subsidiary or, you know, what are the plans for the division going ahead?
I think, you know, in given the current size of the business, you know, we don't think that there'll be any opportunity here to separate this business. You know, we will surely look at the markets for the next couple of years. If there are any capacity expansions that we announce to ensure that, you know, we gain the, we look forward to strengthening our position in India as well as the kind of, you know, impetus we've got in the overseas markets. At that point in time when it becomes a substantial business, yes, there may be thought, but if you ask me really at this stage, no, there's no way that, you know, we usually consider, you know, separating this business.
Makes sense. Thank you so much for the answer and all the best for the coming quarters. Thank you so much.
Thank you. A reminder to the participants, anyone wishing to ask a question, may please press star and one. The next question is from the line of Rushabh Shah from Anubhuti Advisors LLP. Please go ahead.
Sir, just one follow-up question. Any progress with respect to the listing.
I can't hear you.
Okay. It's audible now?
Hello?
Hello.
Hello. Yeah.
Yeah. Any update with respect to listing of our overseas subsidiary?
Okay. I think we've been in touch with our bankers and currently there does not seem to be any opportunity. Going forward, in Q3 of the calendar FY 23, we'll again reassess the situation and that remains on cards for us. You know, with that we've done a lot of work in the past. You know, be it the audits or other things, you know, we've done enough. As and when there is an opportunity, we will, we'll surely look at those markets but Q3 is the earliest, you know. When I say Q3 is 24, you know, F3. FY 24 is what we will look at.
Okay. Q3 of FY 2024.
Yeah. Q3 of FY 2024.
Okay. Perfect. Thank you.
Thank you. A reminder to the participants, anyone wishing to ask a question, may please press star and one. There are no further questions. I now hand the conference over to the management for the closing comments.
Okay. Thanks, everybody, for being on the call and, you know, to, we've really, you know, a bit taken, you know, surprised by, you know, what happened in Q2 in terms of the packaging films business, especially overseas. Fortunate that, you know, because of the diversified nature of the business, the elsewhere the business was strong. There are exchange losses which are not in our control, there are translation losses as well as the losses, when you convert, you know, the liabilities, from a certain currency into the reporting currency, which is the rupee, which are again mostly the notional losses. I don't, you know, sort of...
I look at this quarter's performance from a positive perspective only, looking at the packaging business, flexible packaging, which has not been doing so well in a few years. Aseptic Packaging business which is breaking the barriers and as we look at, you know, finding opportunities from the existing plant as to how do we increase and utilize this plant more to deliver more to the offshore markets, you know, where Aseptic business is now making a good stronghold, so that, you know, the non-seasonable, when there is a non-season in India, you know, we're still able to, you know, utilize the plants fully. There have been more positives.
There have been negatives which are more market-driven and situations arising out of the aggressive US Fed policy as well as the Russia-Ukraine conflict, and which we have reasons to believe that given another quarter, you know, even those numbers will be back on the cast. That's what in nutshell is the Q3 about and the guidance for the Q4. Beyond that currently we are not in a position to, you know, sort of give you any further, you know, insight. We can only say that, you know, in terms of the business, the India business, you know, is insulated and is from the rest of the world currently and, you know, will continue to do so for the Q4 as well as for the FY24 as well. Thank you, sir.
Thank you. Thanks everybody on the call.
Thank you. Ladies and gentlemen, on behalf of Dolat Capital Market Private Limited, that concludes this conference call. We thank you for joining us, and you may now disconnect your lines. Thank you.