Ladies and gentlemen, good day and welcome to Control Print Limited Q2 FY 2023 results conference call hosted by Asian Markets Securities Private Limited. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. Actual results may differ from such expectations, projections, et cetera, whether expressed or implied. Participants are requested to exercise caution while referring to such statements and remarks.
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 touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Karan Bhatelia from Asian Markets Securities Private Limited. Thank you, and over to you, Mr. Bhatelia.
Thank you, Tanvi. Ladies and gentlemen, good afternoon, and welcome all to the Control Print Limited Q2 and H1 FY 2023 earnings conference call hosted by Asian Markets Securities Private Limited. From the management side, we have with us Mr. Shiva Kabra, Joint Managing Director, and Mr. Jaideep Barve, the CFO. I will hand over the call to Jaideep for his opening remarks, after which we shall open the floor for Q&A. Thank you. Over to you, Jaideep.
Yeah. Thanks, Karan. Welcome everybody to the earnings conference call of the Q2 of financial year 2022-2023 of Control Print Limited. We appreciate that you took the time out of your busy schedule to attend this call. Hope you and your loved ones are safe and healthy. Wish all of you a happy Diwali in advance. Mr. Shiva Kabra, the Joint Managing Director of our company, also joins me on this call. The detailed presentation has already been put up on our website as well as intimated to the stock exchanges. I assume all of you would have the basic information about the company. I'm going ahead and giving a brief analysis of the financial statements of the quarter two for FY 2022-2023.
The manufacturing activities in this Q2 continued with the rising momentum as most of the industries continued the production to meet their high demand. The increased production was clearly visible in the higher requirement for consumables, which is beneficial to the coding and marking industry, which Control Print operates in. The revenue for this quarter has witnessed a year-on-year growth of 10%. The primary reason for the growth in revenue was because of good traction in the consumables, which has got a year-on-year growth of 29% in real value terms as the industrial production increased. We still believe that it is still not at the optimum level, and there exists a considerable scope for improvement.
The sales of printers were slightly on the lower side, and we had a drop of about 14% of the machines sold as compared to the previous quarter, primarily as a result of raw material shortages. We believe that going forward, we have the right strategy in place to have to mitigate all the risks in supply chain, and there is still a lot of growth in the overall production volume for the printers. The gross margin for Q2 has dropped marginally as compared to the previous quarter, as I explained to you because of the raw material purchases, which are at a slightly higher rates. Still, it shows a very good picture as compared to the Q2 of the previous year.
On a year-on-year performance, the EBITDA, PBT, PAT, and the profit before exception items have grown by almost 11%, 23.5%, 14%, 14% respectively. The company maintains healthy margins with EBITDA at almost 26% in this quarter. We believe that we still can grow to considerable levels because of the economies of scale what we will have in the future. Let me brief you on the performance of various divisions, products, and business segments. Consumables had a good traction and the increased installed base, which is greater than 5,500, will definitely drive the business in the coming quarters. We continue to penetrate customer competitive accounts in key sectors like pipes, food, dairy, FMCG, sugar, pharma, and dairy, and our market share has been strengthened now.
We have already incorporated company in Netherlands, which has acquired 75% stake in Markprint B.V. through it. We have got a sufficient amount of business growth in the dairy segment as well as in the cement segments. Dairy as a vertical impact has grown by 20%, and we expect the same to continue for the next few years. Piping still continues to be the leading segment for our kind of industry. We have got a robust back office system. We have a good amount of in-house trainings which emphasize to improve the performance of each team member. We have got a good ERP in place with SAP, which backs up our sales, production, and our inventory numbers.
Recently we've launched a new CIJ product which is called Bench, and that has definitely made a positive move in the market. We expect that we'll get a good mileage on this account. As regards to the piping industry, we are expecting good volumes in the Q3 as well as in the sugar industry. The company has got a good cash flow. We continue the path set in the next few quarters as well. We are strong in our production segment as well, and we focus on plans and strategy, and we are confident of the growth potential to deliver positive results in the future as well. With this, I open the floor for any questions that they would ask of us.
Can we begin with the Q&A?
Yeah.
Thank you. Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, you may enter star and one to ask a question. We will wait for a moment while the question queue assembles. Participants, to ask a question, you may enter star and one. First question is from the line of Saket Kapoor from Kapoor & Company. Please go ahead.
Yeah. Namaskar, sir. Hello?
Yeah. Hello, Saket.
Yeah. Namaskar, sir, and thank you for this opportunity.
Yeah.
I missed the opening remarks, so pardon me for repetition, sir, but we have seen the margins being lower on Q1-on-Q2 basis, whether the gross margin or the EBITDA margin. What explains this sequential dip in margin? Also, what constituted the INR 1 crore other income components, sir? First set of question.
Well, the margins have, you see, we are into a supply chain where, you know, like, there is still possibility of the raw material components for our kind of the LED. We have to continuously revise our strategies and do the purchasing either from the spot market as well as, you know, making the new alternative producers. We believe that conditions might continue till March, February, March. The margins may, you know, reduce further down as well as increase also if we get the strategies in place right. Raw material shortages and, you know, like from big three, that has really cramped our bargaining power as well. That's the reason why, you know, like, our gross margins are on the slightly lower side. If I may ask Shiva to add further. Shiva, can you add on this?
Yeah. I think Jaideep said earlier, of course, which you didn't connect, Mr. Saket Kapoor, that basically we had a drop in printer sales, so the primary reason was not demand. It's just that we've not been able to, you know, I think we've discussed it in the previous call. We're having a lot of supply chain issues. We've seen now for the quarter, it did affect some of our sales in the previous few months. You know, things that we couldn't build within, you know, that half, so there was some backlog. You know, hopefully we'll be able to obviously make up completely for it in the H2. The printer sales specifically were affected.
Even some of the fluids, the billings were slightly lower than you know. Also, there was some backlog out there also because we didn't have certain materials. We seem to be having, you know, some surprises sometimes in this given situation, either on quality or in terms of delivery every so often, which is, you know, giving us some supply chain related troubles, which, you know, this is the first time we've experienced this in the last, you know, one or two years.
Hello?
Yeah. Because of that, also, like I said, you know, because of the global situation, of course, there has been a big increase in costs and prices of some things, especially the electronic components. We've also purchased a lot of materials from the spot market, and that's higher than what our contracted rates are. It's gonna take some time for that to work entirely through the system because, you know, we've taken a conscious decision that we have to keep supplying, even if it's at a higher cost. So some of the materials we have, some of the inventory we have are at a higher cost to us because they've been bought, purchased from the spot market.
As and when that thing works through the supply chain of ours, then hopefully we should get back to a slightly better margin profile. Yeah, it's not a big concern for us either way, you know, too much right now.
Yeah.
We're seeing that as long as the growth is there, you know, we get a strong overall growth of the profitability and margins that we're targeting.
Sir, if we take the breakup of the component in the revenue from operating sales, the gross margin addition or the incremental gross margin is from the consumables segment. Even though, sir, as articulated by you, we face problems with selling more printers, how are the consumables sales? Sir, what is the breakup of the revenue part into this number from printers, consumables, and spares business?
I don't know. Of course, you know, JD will provide you on whatever basis he provides. We don't give a very detailed breakup on that because of competitive reasons, you understand. I will say that, you know, as far as those things go, we cannot look at it in totality as an individual component or not, because we face price increases across the board or cost increases in some cases, where the price might not increase that much, we still have to buy things for a much higher price from the market. So like I said, you know, that's affected the overall cost. You know, at the end of the day, we cannot separate the printer business from the consumables or everything else because we'll end up losing some of our customers, you know, as a result if we're not able to supply them printers.
The thing is, because of the situation, this is a given thing. We are actually undertaking an exercise of going forward to have a price increase to compensate for some of these issues. That's actually one of the things that the company is now working towards in this current quarter. We can see some results in Q4 or maybe even on next year. Because normally we give our customers a, you know, like a three-four -month notice before we actually increase the prices and, you know, with the results. That's something we just started. Yeah, this is the given market right now. You know, we already went through, you know, two or three software rewrites and some other stuff in our firmware.
We can't keep doing this all the time. We just have to, at one point of time, you know, just, if some components are not there, we just have to pay more money and just buy them, you know. That's it.
Sir, on the other income part, can you please provide further detail and whether it is a recurring item or one-off item? Lastly, sir, as mentioned that these margins are going to be. Can we expect more pressure on margins as Jaideep sir was explaining earlier going ahead also or steps have been taken?
Let Jaideep just explain the other income. As far as margins, of course, we're expecting things to be positive. It might take a few months for, you know, this high-cost inventory to run through our system. Of course, that would result in some benefits either out of the price increase will compensate. I don't think that we obviously, you know, we're looking at a permanent, you know, margin decreases, no doubt about that. We're not doing that. Over the course of a year, we should be okay. Of course, you know, on a quarter-to-quarter basis, depending on the systems, you know, and the supply chain, sometimes, like you said, if we sell more printers, the gross margin looks lower, you know, even though it's not from an individual component perspective.
You know, these things can change, but overall, I think our growth is gonna be profitable and, you know, cash accretive. You know, that's what I can say. But, you know, Jaideep, if you wanna just conclude that other. But also, if, you know, if it's just possible, Karan, if, you know, we can just keep one question to one thing, because then if there's you know, what happens is like if there's four questions in one question, then it really confuses sometimes, you know, and then miss out. That's all. That's all I'm requesting everyone. You know, it's fine. Ask as many questions as you want, but like in that one question, just one point, we cover that point, then the next question, you know. If that's fine with everyone. Jaideep, there was one question on other income.
Mr. Saket, you mentioned about the other income. The most significant portion happens to be the dividend income.
Correct. Correct, sir. Sorry. One more question that is about. In the presentation, we have mentioned about large order of more than 70 CIJ printers from railway sector and large export order for laser printer in the SME sector. This 70 CIJ printer was there in the pipeline? And one what are we trying to explain from these nine? What is the opportunity that we have in our hand?
Jaideep.
Yeah.
I think that order was not in the quarter that gone by. You sure about this?
Yeah. Although it's order what we got, which is to explain.
That six-month period, I believe.
Yeah.
That's what we're talking about. I think that there might be a mistake from our side on this. I think that this is not an order that pertains to the half year that has gone by, guys. I apologize.
But that is-
Although we know we have very partial execution of that order.
Yeah.
If we can avoid that discussion till we can prove this order and execute it thoroughly better.
Sir, come again, sir. Are we having this order in hand of 70 CIJ printers that we would execute?
We got it in the last quarter, but we've not executed it completely.
Yeah.
It's also held up because of some shortage of parts that we had. Even in the process of executing it. I just said that, you know, my apologies. We prefer discussing this once you've finished executing this order.
No, sir. Can you give just some color about the size of this order, sir? What is the total quantum? Because here it is not mentioned that this has been executed. It has only been mentioned that we have an order in hand.
No, Mr. Saket, we are just talking about, you know, an order, large order which you bagged. Correct. We are not talking about executed.
Yes, sir. You're right on that front. I only wanted to know the value of the order. Yeah. Paula, I cannot say anything because we don't disclose this type of information. This is very directly competitive information, if you will.
Okay, sir.
Because obviously our competitors know exactly which order we are talking because, you know, they were also competing for it. It would be a bit tricky. That's all I can say. You know, I hope you all understand the, you know, the circumstance.
Yes. No issue with that, sir. Can you give me, sir, the utilization levels for our Nalagarh unit in terms of consumables, currently for the quarter and H1 as a whole? Utilization in Nalagarh.
We don't make any foods in Nalagarh.
Consumable, sorry, consumable is what is there. What is the utilization levels for the consumable segment?
Mostly like 50% or something, 40%. Well, like, we have capacity to increase, you know, we said to a significant amount more. There's no CapEx required there right now or nothing major from what I can remember.
And like-
We had some supply chain issues and some of the specialty chemicals that we use in our ink manufacturing are there also. It was a bit up and down, the production there also. I think, there's no capacity utilization issue on an overall basis, assuming our supplies are smooth.
Right. On the employee
About 40%-50% capacity available. Maybe we're using 50%-60% capacity.
Correct, sir. Sir, our employee cost has also gone up sequentially and also year-on-year. Any one-off items in the employee cost that has gone up by INR 2-3 crores besides the. What should be the annual number? I mean, at this time we have done INR 13.81 crore.
Yeah. From that, Mr. Saket Kapoor, as you would understand that because of this new Wage Code Bill which has been launched, we've complied with that. As a result of that, we've done some salary restructuring, and that's why you find the increase in the costs of the employee benefits.
This will be now the order of the day, INR 14 crore a quarter.
Sorry? I'm not able to get you, Saket Kapoor.
This will be the number going ahead now. On a ballpark number will be INR 14 crore. That is what has been for this quarter.
Okay. Correct, sir.
Sir, last point and coming to Q&A, sir. Sir, when you speak about this way forward, the slide which you have put, if you could dwell slightly more on the business environment currently, sir. I think you have spoken about the headwinds that we are facing in terms of the non-availability of spares and chips and also the increase in prices because of the spot being purchased at spot prices. If you could give us some more color how the H2 is likely to shape up in terms of our execution of selling of more printers and also the consumable sales going up. Some more color on how H2 shape up when we look at last year to the current year, depending upon the business environment.
That's the point, sir.
Yeah, Mr. Saket Kapoor, to answer your question, see, we are very bullish about the way going forward. We believe that, you know, like, there will be higher consumable sales, obviously, because the industry is also in the growth phase. That's going to be one of the positive looking aspects for us. We recently launched the Bench product, so we believe that will create the right positive moves going ahead. In case of, you know, like, we are also keenly focusing on the OEM and the key accounts. We've got a dedicated team for the key accounts at our company. With that, in case we would imagine that we continue to attract, you know, new-to-you customers.
Our marketing team, you know, like, is focusing on how to capture the last mile user. We also have got inside sales team which generates the new leads which can be, you know, capitalized on and converted into customers by our team. Of course, I mean, we would like to, you know, like, increase our market share by increasing the installed base of our printers. Plus, yes, we are constantly looking out into, you know, the global market or, you know, like, better technologies. That's the overall strategy what we feel would be for the way forward for our company.
Right, sir. For the two acquisitions that Innovative—how is Innovative and the Markprint acquisition gelling with the overall pie and how are they going to likely contribute going ahead?
Right now, to be genuinely honest, Saket, that's not, as far as ICIPL goes, obviously they are also have been affected by our supply chain issues. You know, in fact, to be honest, we've been very unfair because of our own, you know, issues. We were also not able to supply them much printers at all in the six-month period, and they were affected much worse than us. That has been slightly negative for them. But hopefully they should see a better rebound in the H2. Obviously overall that might have affected their growth, but it's still definitely better numbers than last year. Still on a better path.
As far as Markprint B.V. goes, obviously they do their own business in Europe and, we're still working on, you know, key by November, December we should have some of the products available in India and start exploring that category in the Indian market. Again, we are not overly interfering in what work they are doing in their market, but our, you know, focus is more on how we can use their technology to develop products which are better for or more suited to our markets and Control Print and grow that business. At the same time we are continuing to grow, so that's also a positive factor. Obviously we are encouraging them to see how they can accelerate their growth even faster in their home markets.
You know, they obviously have more financial and technical and operational backing from us for whatever, you know, opportunity comes to them. Right now it's like, you know, mainly it's a standalone story as of right now, but these are both things that will help us in a longer period of time. Without a doubt. This is the Markprint acquisition. The ICIPL, of course, should be, as you say, grow to hopefully contribute to our profitability, just being, you know, build on the same cost base, at least on the manufacturing side as what we already have. Definitely ICIPL has been affected, like I said, by our supply chain issues and, you know, Markprint is something that we've taken some training on.
We've had some exchanges, and now we should start seeing some, you know, from November, December, we should see an idea of what products we need to do, get more tweaks on what we have to do. But, you know, I think that we'll start getting more results in the next financial year because we normally get things, we have to adjust them, and I think we'll see the better results from, you know, maybe from Q1 next year of selling those products in the Indian market. Like I said, you know, there's a good opportunity in that in India.
Thank you for all the elaborate answers. Mr. Jaideep Barve, on the goodwill front, if you could give some color, what led to this increase in goodwill accounts from March number, the INR 48 lakh to INR 10 crore for the H1 of September?
Yeah, Saket, this is primary reason because of, you know, our acquisition of Markprint B.V., the company in the Netherlands.
Okay, Shiva sir. We will be looking forward for the next quarter, and I'll come up with a couple of more points. I think there should be a queue behind me. So I'll just join the queue again, sir. Thank you, sir, for the answers.
Yeah. Thanks, Saket.
Thank you. The next question is from the line of Prajval Gada from Control Print Limited . Please go ahead.
Hello. Sir, am I audible?
Yeah, you are.
Sir, I just wanted to know that this raw material issue which the organization is facing, is it because of the import which we are catering or it's more on domestic side also?
No, no. It mainly is the imported area. It's more especially around the electronics it was. But even some of the specialty chemicals, some of the things that we utilize, you know, we use some very specialized pumps, and certain valves, like miniaturized valves in our printers and all. So, you know, we've been having an issue on multiple fronts. So definitely on some highly sophisticated electromechanical components or rather fluidic components. We've had some issues in our specialty chemicals which we use for our inks. And we've been having an issue that would be most definitely on the electronic components that we use in manufacturing the, you know, the electronic boards which run our printers. So those are the issues, but it's definitely improving is what I feel.
Whatever it is, we've somehow managed to get enough stuff together, and I think with Q4 we should at least get back to like a normal delivery time with our customers.
So soon. Sir, I have been just looking at your presentation. It shows that from FY 2018 till now, your margin has been decreasing. Like your gross margin, your EBITDA margin and PAT margin, all three of them are decreasing. Can we expect that because like as you are saying that this, there will be an upward move for the improvement in this raw material issue. Can we expect by FY 2023, we would at least reach to FY 2021 or FY 2020 levels?
I'll just take this question. I cannot say what our margin was in 2018 or the preceding years. I don't remember. Obviously, I will say that, you know, the last two, three years have been affected or even this year to that extent, not because of COVID, but because of the overhang of the supply chain issues that we faced. This is a very difficult period to compare directly. You know, I will say that, you know, maybe we've been slightly slow in rolling out that pricing. We've rolled out one price increase, this cost increase, and now we're gonna put out another one. We're in the process of doing that. Maybe that will get things back on track.
Overall, you know, our focus has been more on you know, the revenue growth because our business is essentially, you know, reasonably high margin. You know, we don't really look at 0.5% or 1% here or there. You know, it's more about focusing on making sure that our competitive positioning, our technology positioning, our customer satisfaction is high, and that will pay dividends over a medium- to long-term situation. We can grow margins by having faster growth, you know, and or we can, you know, of course, increase margins by trying to cut costs and you know, roll out more price increases.
You know, obviously both the things are important, but overall our focus is more that, you know, we really believe that, when we grow faster than, you know, some part of that cost base is gonna be fixed or more to the cost, our cost base is fixed. You know, that means that we will automatically get, you know, a better margin profile.
Okay. Sure, sir. That was very helpful. One last thing, sir. Is it possible to share with us the segment-wise revenue, like in the AD segment, industrial, healthcare, building products and for FMCG?
I'm afraid that's not possible because we don't. Again, you know, our main competitors are actually none of them are listed in India, but even abroad, they are subsidiaries of foreign. So, you know, there's no competitive data coming out. I'm sure that they have some idea of what we do anyways, but, you know, we don't like to give out that sort of detailed information because there's no benefit to us, and it could obviously help our competitors target us much, you know, in a much more systematic manner.
All right. I understand. Yeah, thank you so much, sir, for your time and wish you and your team a happy Diwali.
Thank you so much.
Business has as merry as it is. I wish you well. Thank you.
The next question is from the line of Devanshu Sampat from Yes Securities. Please go ahead.
Hello, sir. Good afternoon. Just a few questions. Just to follow up with the previous participant, right. I'm aware that you don't share you know particular sector-wise information, but earlier we used to talk about packaging versus industrial, right? Which used to be around 60/40. Can you just help get you know with getting an understanding of how the situation is changing incrementally, right. There'll be your install base, which will be say having a certain ratio and incrementally as you sell more sales, is it more towards the packaging side, food and pharma specifically, or is the mix largely you know similar to your existing install base?
Jaideep, I'll take this question.
Sure.
Like you said, overall, you know, it was about 70/30 for us previously, and it's come closer to, you know, 60/40. There are two things that happen. You know, industrials grow faster and they crash more depending on whether the economy is booming or busting. In the COVID time, you know, we went north of 40% for packaging and, you know, almost 50/50 is what I'd say, you know. When the economy is a bit hot because the construction materials, the building materials, the pipes, the cables, you know, all those things pick up sort of faster. You know, whereas the packaging sector is a bit more even, you know.
You don't increase your consumption of shampoo just because, you know, the economy is booming, if you will, or, you know, Surf Excel powder or so on for that matter. Like you said, both of the sectors have their own. Both sectors are growing. The organized packaging market is definitely growing at the cost of the unorganized sector, and the volume still continue to grow. What I'll say is overall, we are moving more towards the 50/50. You know, of course, it depends slowly over a period of time, and we are comfortable with that. Obviously, the industrials, if the economy is a bit hotter, then, you know, we've seen that they tend to grow faster.
Obviously, we're not against, you know, we're not trying to push to a certain ratio by not growing on, you know, one side. We wanna grow in both areas. Of course, we believe that because we were, you know, not getting the market share that we should have got in the packaging side, we are able to grow a bit faster there overall in terms of that. So we are seeing a long-term shift. If you look at a long-term shift, yeah, we're coming more towards 50/50. On a, you know, quarter-to-quarter, even year-to-year basis, it will depend on the cycle of the economy.
What we feel is like in general when the, you know, depending on the agricultural economy or depending on the overall economy, you know, especially the construction material sector, you know, the industrials can grow faster. Then, you know, if the market is slightly more subdued, if the economy goes, then we see that the industrials grow slow. You know, that's the second element to it. If you... I hope you understood what I meant. I meant, you know, transitionally we'll be moving more towards packaging from a machine sales perspective, but the usage of the industrials resources are more up and down than, you know. Therefore, it, the percentage shifts a little bit all the time. Although in the long term direction it is more towards packaging, increasing as a percentage of our overall sales.
Sure. I understand. Okay. The second question is just about this chip shortage and, you know, the raw material issue, right, and the high cost inventory that we spoke about. Is this something that is only for us or is this something that the entire industry is facing? Basically what I'm trying to get at is, does this affect our market share only because, you know, the business is such where the customer, like, you have to have installed base and then you know, get business from that, from the consumers later. Are we losing market share over here or is it something that, you know, this issue everybody is facing over here?
In all honesty, you know, we did lose a little bit of sale for sure. Some customers we might have lost. We had to take a tough call and we had to sort of service our A, the A plus and the B late customers and maybe some of the C and D orders we couldn't fulfill or we told them straight up that our, you know, lead times are very long because we had a, you know, limited availability. You know we don't think we lost that many sales overall, because we did do our best to manage the situation and different people had different issues.
Vidush, in the market, I mean, or I wanna say, some of our competitors had more issues maybe on the supply side, you know, and you know, in some printer categories. You know, everyone has had their own issues. You know, it all depends on who your supplier of your components is, how your spare stock planning was, and you know, various factors like that. Yeah, some niggling issues were faced by different people, or issues. I will say that these things have gotten. They had issues earlier than us, and they seem to be not having these problems in this financial year, whereas we had a fair amount of stocks of the past, you know, which is why everybody should be complaining why inventory is high.
Because of that, we could tide over the situation for a long time, even though we're not getting new supplies. At one point of time, you know, the party ran out and we didn't have the parts in stock to keep the sales going, even though we expected fresh supplies in the meantime. That's the sort of situation that actually happened at that point of time. I don't think we're losing any market share. I think what we're doing is we are seeing a time shift in sales of printers is what I'd say. Before, you know, a lot of times, customers, they order printers and they are gonna have a line or they're gonna commission a line, but by the time they put the thing into operation, some time goes. Obviously we are now monitoring it.
We actually deliver the printers quite close to when they're actually gonna start utilizing the printers, because normally people order the printers and, you know, it's lying around for two, three months before frankly it's utilized.
Okay. To avoid such situations, what are the changes you are making and, you know, so that this doesn't happen again in the future?
It's not possible to make changes. One or two components, we had hard issues and the lead times were long. We worked with our partners. In some cases we worked internally and we had to rewrite some firmware and other things for our printer. But it's too much work because we have to do it, we have to test it, we have to validate everything and this. A lot of things that go in it, and it's easier for us to just pay more money and buy from the spot market, you know. Hopefully this, you know, it's not easy because you can't change the design of everything, you know. I mean, unless I don't even think our supply chain planning was bad. I mean, Jaideep can answer that question better.
Yeah, you know, it's a tricky situation. The thing is, we're not such a big customer for most of these guys. We're not a big customer that they're gonna prioritize over Volkswagen or, you know, I don't know, someone like that, Maruti or whatever, right?
Okay. Just a last question. You spoke about price increases. Is this something that everybody has done in the industry or is this the only company that we are doing right now? If so, you can talk about how the pricing situation is within the industry over the last, say, one year or so.
You know, some price increases have been done by us about a year, some a year and a half ago. Now because of, you know, again, some cost increases and some other stuff, you know, we don't like to just increase the price on the customers all the time. We don't do that, in all honesty. There's not that much inflation in our industry or our business. Yeah, because of, there has been inflation, which is, you know, like I said, it has happened, frankly in the last two, three years. And not only directly on the components and everything, but you know, some of the associated costs like freight and, you know, logistics costs and all sorts of things.
Yeah, we feel that, you know, we're justified for that price increase. Yes, our competitors have done it a bit earlier than us. They have increased prices reasonably over this last 2.5-three-year period. I can't say off the cuff, you know, who did what when, but overall everyone has increased their costs and with this price increase, we'll be approximately at par with them in terms of how much we've increased our prices overall.
Got it. Sorry.
Jaideep, do you wanna add anything to this or?
No. Nothing. You're clear. Shiva, nothing.
Okay. Thank you. Wishing the team all the best and very happy with the results. Thank you.
Thank you.
Thank you. Participants, if you wish to ask any questions, please enter star and one. The next question is from the line of Parson, Individual Investor. Please go ahead.
Yes. Good afternoon, sir. Am I audible?
Yeah, you are.
Thank you. Thank you for the opportunity. My first question is regarding the revenue shown by you every quarter. It's very commendable. How do you see H2 behaving versus H1? How will the revenue mix behave as per what you are seeing in the market?
Shiva should answer. You would like to take this question?
Sure. I mean, I can take it. I like think Jaideep has answered this earlier. I mean, we are still feeling that we could have a good H2 as of right now. We don't see any problems in the market. We don't see any issues. I mean, of course, like I said, we had some supply chain issues, but we seem to have now come to a pretty good situation in the last few, last couple of months, I'd say, where we are now sort of, actually clearing out some of the backlog. I'm hopeful that we do okay. Of course, there are other positive triggers like, which we'll not see, might not see this year, but with ICIPL, they were not able to get supplies really much at all from us.
That will help them. With Markprint, we will start some of like the long initiatives which we would want to develop some new applications with them. Of course it might not contribute for sales in this financial year, but we have hope to set up a platform that will help us next year. I think, yeah, it looking fine so far overall.
Okay, sir. Second question is, sir, can you enumerate a bit more about your export order? I believe-
Great thing, because I know some of you will be thinking, but yeah, normally we don't give specific guidance, you know, so just to give you an idea.
I can understand, sir. Sir, the second question was regarding the export order for laser printer in the FMCG sector. Can you elaborate on that? I believe this is the first export order.
For lasers, probably.
Yes, sir. For the lasers.
For now, it is for the lasers. Yeah, if Jaideep can definitely elaborate on that.
See, what we've done is that we have supplied to a large corporation. We won't disclose the names because of confidentiality in it. It's a large corporation which is based out of there, and it is one of the packers, co-packers of, you know, the consumer industry. What we believe is that, you know, this is just the first of the orders. We've now established our base, you know, like customer base in Indonesia. We feel that, you know, going forward, once this is a successful tool and model, the other regions also would open out for us for the laser printer.
Okay, sir. Thank you so much, sir. All the best.
Yeah. Thank you.
Thank you. The next question is a follow-up question from Saket Kapoor from Kapoor & Company. Please go ahead.
Yes, sir. Thank you. Sir, you did mention in one of the release about our Sri Lankan foray, we resuming our operations at for the country Sri Lanka. Now what is our game plan going ahead, sir? What are we exactly trying to do after the gap there, sir?
See, Mr. Saket, since we had operations earlier in Sri Lanka as well, we have an installed base at Sri Lanka. For the current customers, you know, there is still some demand for the consumables. Also, we need to service our printers over there. What is the main philosophy of, you know, like, thinking of revival of operations, the concern is that maybe in the next two years the economy will, you know, like, make a U-turn and everything will be rosy then. We don't want to just shut the shop now and then, you know, restart it after two years. Till that time, as you would understand, we are just an oligopoly of four players.
We don't want our existing customer base to go to the other parties. Slowly we feel that, you know, the economy is slowly picking up. Maybe, you know, like, it's a two-fold angle. One is to service our existing customer base. Secondly, you know, then, tap few more opportunities, going ahead. That was, the primary, the main reason for us to resume our operations in Sri Lanka.
What kind of investment, sir, are you contemplating just to resume the services and the recurring costs that we have to incur just to keep our foot there?
Yeah. I'll just answer that question, Saket. First, you know, well put, Jaideep, and I just want to say that, you know, answering your question, Saket, that, what's happened is that, you see, we lost a lot of money in the past. That was because of the rupee depreciation and, you know, so whatever money, you know, it was the Sri Lankan rupee, I don't know, what it went from 100 to 300 or something. We lost that thing and the inventory and all those, you know, things, the AR, the whole book depreciated. You know, that's all done at one point of time. Obviously, we've readjusted all our prices now to US dollar terms and in between there was no consumption.
We believe that, you know, with the amount of sales that we can generate and of the consumables and the service, even at a reduced rate, that at least covers all our operating costs in Sri Lanka. Without really increasing our inventory, without really, you know, spending money, it's more of a holding operation right now. We are hoping for a U-turn in the economy. Obviously at that time we'll need more aggressive. It was just sort of a strategic decision that we've worked hard to create a base. Obviously the Sri Lankan economy is not booming right now. It's difficult to grow that base.
Even if we just use part of the existing base that covers our cost of operation, as long as we don't increase our inventory exposure there, you know, we don't have to be worried about further depreciation and other things. I mean, I'm not saying that we're expecting any great results from Sri Lanka, like Jaideep said, at least two years, but we don't expect to put more money in there for the next two years. That's more of the thought that we had. We feel, but yet in case after two years there is a rebound in the economy, then, you know, if we shut down now, we'll not be able to capture that rebound of the Lankan economy.
Sir, just to sum it up, currently we will be trying to service the printers that are already the installed base there and to service the consumable segment. There won't be any further capital, I mean, further investment that is going to be there. Only we are going to service our base there. That is what we are trying to explore currently.
Right now we didn't invest any additional money in the last thing. We had already invested some money. What happened is that money was depreciated, you know, in Sri Lankan rupees. We were still making a profit. It's just that, you know, suppose I invested $1 million, or whatever, if I invested INR 5 crore, whatever it was, we invested LKR 100. The LKR 100 itself became LKR 40. We lost LKR 60 in the currency fluctuations and whatever other things happened. Then on top of that, the sales and the economy literally stopped for a year, frankly. Even the consumers, everything, you know? There was Sri Lankan.
Because in between, you know, our people were saying that they don't even have diesel or whatever petrol to, you know, go to the customer or go to office. I really don't know what was going on out there 100%, but obviously the situation was quite dire. You know, so then that is where we were getting more worried, but then things have improved. They're not normal, but they've improved. We've taken a fresh look, you know. Jaideep was calculating. We said that, "Okay, we can continue without investing new money." Of course, that loss that we had, suppose, we invested 100 INR and that's become worth now 30 INR-40 INR, that loss of 60 INR-70 INR remains. The question is we don't have to invest more money, you know, like that.
Okay.
Okay, that's what I'll say.
Right. Sir, if I could just sum it up with your commentary and the point you are trying to make is that we are taking headwinds in terms of the spare parts for our printers, and due to the non-availability and the spike in the spot prices, we have to cater to meet our customer demand, the higher prices we have paid, that has taken a hit on our margin.
It's only insignificant, right? It's not a substantial hit, Sachin.
Sir, just to get the margin picture clear, sir, this 62% gross margin bracket, are we going to be in this band going ahead also? If I think of Q1, we did 63% gross margin. This time it's a 200 basis point reduction that we have seen in the gross margin. In the likelihood, what is the band that we are eyeing for H2, sir?
Just to ask you a question, are you looking at a standalone or a consolidated basis?
Sir, I'm looking at the standalone basis only, sir.
Okay. Yeah, I mean, like I said, honestly, I really don't pay that much attention. I want to be very straightforward to whether I'm, you know, making a 63% margin or 65% or a 61% or 62%. It's more of an especially on a quarter-to-quarter basis, we really wouldn't, you know, on a month-to-month basis, we won't pay any attention. We've been, I mean, like, you know, we've been having these issues with the supply chain for some time now and, you know, it's obviously cost us money. I will not say 100%, but I think, like, most of the issues in terms of, you know, the gross margin decrease will be related to certain supply chain issues that we have. Like I said, you know, we use specialized everything about us is quite specialized.
You know, now if you're making like, I mean, I, it might be the wrong comparison, but if you're making a Vande Bharat train or, you know, like a Tejas Mark 1A or one-five, then every component is specified. To change any component, any electronics, anything is not easy. Our printers are built the same way. You know, like if it's done, you know, it's not like steel, you know, and I can change steel from Tata Steel to JSW to, I don't know, SAIL.
I got your point.
I know, like, all our things are, like, very technically specified, and it takes a lot of testing and other work to change from one to another. A lot of times it's not like we also feel that, oh, this other thing is available, you know, and we could have used that. We have to design the product with that chip in mind or that component in mind and, you know, to. We can't just keep changing. That's the issue that's there. Of course, there's been a little bit of rupee depreciation versus the dollar. Although it's not affected us that much because some good chunk of our imports are in euros and Japanese yen and all those things. Some part is dollars and, you know, so on. Obviously these various little factors are there.
Like I said, you know, sometimes, yeah, maybe we could also have been like our competitors and been more aggressive with the price increase. Honestly, because we were having supply chain issues, we were not. You know, our customers were anyways unhappy because they were waiting for printer deliveries and other things. We did not wanna take a price increase at that same time, when, you know, some of our supplies were delayed, both on the consumable side, on the printer side, especially, and then also at the same time talk of a price increase. We felt first.
Sure.
We should just sort out everything, you know, get everything back to normal, then we'll talk about, you know, price increase.
Current situation, sir, have we completely overcome the issue or there are something more that will percolate for the H2 also?
No, no. I mean, obviously some of the inventory that we've approved to purchase is at a high cost, so it will be there. Hopefully the cost increase would take care of most of that, I mean, the price increase rather.
Okay.
We'll see. I mean, I don't know. Often, like I said, we might see more of a impact on the Q4 because we've given a notice out to our customers. I think the price increase will not really be rolling in till maybe little bit later this quarter or towards the end of the quarter.
Okay.
Of course, some of that inventory is also there at a higher cost and hopefully, you know, we're also hoping because, you know, some of the cost increases that we faced, we are also hoping that they're not permanent in nature. You know, they are temporary, but we have to work through this whole thing.
Any price increase that we are expecting should happen for quarter four only because you have given an upfront, I mean, date to your customers.
It should start towards the end of this quarter. Yeah, the basic-
Right.
You know, the typical calendar, you know.
Yes, sir. Got your point. When we look at the inventory part, which you have been speaking for the long time, now the inventory has gone up to INR 70 crore. What should be the percentage breakup between the value for printers and consumables in the INR 70 crore inventory figure, sir? Only a small percentage, yeah.
Yeah, Saket, it depends on the strategy of the management, right? I mean, sometimes we might get a better rate and, you know, we might purchase at certain volumes. So there is no fixed percentage or in months of inventory turnover that you can have. It also depends upon our minimum supportable MOQ which we call, calculate for each SKU. So that would depend. I mean, there's nothing like a standard which we have to-
No, no. I'm asking about the break-up of INR 70 crore. Out of the INR 70 crore, how much would attribute towards the value for printers and how much would be the consumable and the spare part?
Saket, I think this is probably some confidential information. You have the financial setup at the listing websites, as well as on the NSE, so if you can take a look at there.
I didn't get you, sir. Come again, sir.
No, the breakup would be slightly of a confidential nature.
Okay. Okay, sir.
So-
Okay. Not an issue, sir. Lastly, to Mr. Shiva Kabra about, so we have always seen that the management, the board has always been shareholder friendly and in terms of distribution, distributing cash to its investors. As has been the case historically, we are getting two dividends. Firstly, once the nine-month numbers are there, and then the final accounts. In the very likelihood that should be the nature this year also, taking into account the cash generation that has happened. So that understanding for investor base is correct because this time also we have come up with an acquisition in Netherlands. Or do you revise the payout, dividend payout going ahead? What's the thought process in clearing of the cash or the cash allocation strategy, which you have already articulated, I think the last call also. If you could throw some more light on the same.
I think that, you know, honestly, this was discussed in a lot of depth last quarter because I think, you know. In fact, maybe you had only raised it up. I'm not 100% sure.
Yes. Yes, sir. I just wanted the reiteration on that.
No. You know, the board has decided that, you know, INR 50 crore is what we'll keep as cash on books, including whatever investments, cash, bank balance, whatever form of liquid investment, however you wanna term it. We have our limits for any acquisition or other opportunities that come. You know, obviously we are looking also at other opportunities. We've been clear about that, like how Markprint B.V. was an opportunity, and so on. Obviously we invest in our growth, and if we get the right type of growth opportunities and acquisitions, we will do that. Whatever's more than INR 50 crore, you know, the board has said that we will largely return back to the shareholders.
You know, what form it will take, whether it will be a nine-month dividend or it will be a buyback or it will be some other form, I cannot say that offhand. It's really their decision. You know, definitely, everyone will know, but you know, that's the. Nothing has changed on that front. I mean, if any specific questions that are there on that, you know, I can address them, but I
No, sir. No, not at all. For this year, it's, yeah.
Saket, just to clarify your query. On a standalone basis, the inventory has increased from INR 65 crores to INR 66 crores. I think INR 70 crores, the number that you got, probably it might be from the consolidation numbers.
Yes. I'm looking at the consolidated numbers.
Yeah. Obviously, because we told you that these include Markprint's numbers. Yeah, as well as ICIPL numbers. You were like-
Correct.
Yeah. Those numbers also come in.
Contribution from them also is there. At this time, sir, for the mask division, it is done and dusted now or are we doing good work? I think the last time you did mention about the mask division, also some prototype being developed specially for your customers. What's the take on the mask division?
Ma'am, we're still selling masks. We, I think, are still doing reasonable amount of business, you know. We were pursuing the N95, but for whatever reason that, you know, it did not happen. It's continuing. It's not a big business. It's not declining as much as what everyone thought. It's okay. You know, I'm prototyping. I'm not sure what you're talking about.
Sir, as I can remember correctly, you spoke about a particular type of mask being done for your customers, the customized mask going ahead for your customers only. If I'm wrong, then I stand corrected there. That was my question that are we developing any different variety of mask for them or how is this segment going to contribute? Earlier you have mentioned that this is only for the purpose of the CSR activity and taking benefit of depreciation.
It's continuing to that extent because there are still many large customers we supply to, and I guess they continue to order on us, so we continue supplying it. But it's not like, yeah, it's not, you know, anything major in terms of revenue or profits or something, so.
Okay. Is it in this 5%-8% mark only, sir, for the revenue?
Huh?
5%-8% revenue is being contributed from the mask segment for the quarter?
No, as of now it's 3%.
3%.
3%, yeah.
Correct.
Which was similar to the last quarter as well.
Correct, sir. Sir, no update on the Liberty Chemical or Videojet that their status quo for the two.
Absolutely status quo.
Correct, sir. That's all. From that side, I was just trying to make sense that there is a continuity of the business volume and the sentiment improving in H2. As we have always seen that H2, the H2 for us and for the industry has remained and always been better than what H1 is. In all likelihood, keeping in mind the factors that this resulted into some higher cost and some non-availability of spare parts, we could look for achieving growth on top of what H2 we did last year. That this basic premise is correct, sir?
I mean, these are all hypothetical, so I cannot say anything. Yes, we did have some orders that we could not fulfill. We had some orders, like I said, in the C and D grade customers where we actually might have lost some or, you know, not able to meet their timelines. You know, but we are executing those things and clearing out these backlogs now. You know, I cannot say what we would have done or what would have happened because, you know, that's all hypothetical now. What is there is a-
Sorry to interrupt, Saket. I would request you to please email your questions.
Yeah. Thank you, ma'am.
We have to move to the next.
Yeah. Thank you, madam.
The next question is from the line of Rupen Masare from Arun Associates. Please go ahead.
Yeah, thanks for the opportunity. My question is to Mr. Shiva Kabra. Sir, in the medium term, that is over next three to five years, where do you see the current industry, I mean, coding and marking industry? Because currently, the current size is around INR 1,500 crore. So over next three to five years and, you are enjoying 18.5% market share currently. So in the medium term, where do you see that growing? And secondly, how do you see to increase the opportunity landscape for Control Print as a company? Maybe by venturing into adjacencies like, say, tracking and tracing or maybe some software related stuff. So if you can throw some light on that.
I'll try my best. You know, thank you. I will say that, you know, as far as the coding and marking business goes, it was about, you know, between INR 1,600 crore and INR 1,700 crore last year, including the unorganized segment. The organized segment was somewhere between INR 1,250 and INR 1,300. That is us and our three biggest competitors. About INR 1,200 to INR 1,250, it was. In that, obviously, you know, Mr. Kabra, if someone has read the annual report, the board of directors has set us a target of INR 400 crore, you know, by March 2025. For Control Print, this is the standalone business we're talking about.
I mean, our target, obviously, maybe for our subsidiaries or associates or any other investments we do in the meantime would hopefully, of course, you know, contribute more to growth. As you know, we have intimated in the past, we don't have a major CapEx plan between now and INR 400 crores. There, of course, there is some. You know, there's INR a few crores we spend every year, and we keep improving our facilities, but nothing major. Not really more than what the depreciation rates would be. You know, we expect that most of the profits we generate would be free cash flow.
Depending on the type of acquisition opportunities we have, we look at those or else, you know, the board is giving us an indication of how much cash, which we already have that much, if not more, and, you know, to look at that. I think that's the broad strategy that's there. Like you said, you know, as far as adjacencies and other things going, obviously, Markprint was an opportunity growth that was there. This because essentially we're in the coding and marking space, which is, you know, the simplest form of printing in a way or the lowest thing, because it's a date code and a batch code. Of course, it's difficult to print on the line.
You have like, you know, big, printing presses made by, you know, Domino and Brother together or HP Indigo, you know, Kodak, those types of people. There's a big space in between in the packaging sector. Of course, there's a lot of specialized printing presses for ceramic tiles, for textiles. We're not focusing so much on that. In the packaging sector, there's a big space between the huge presses and the coding and marking business. That's an area where we are trying to look at, you know, and which is where we focus on the Markprint acquisition to see if we can develop a market, like you said, or adjacency in that area. Definitely in track and trace, we are already working on it.
You know, we actually are having more partner-driven solutions in that. It's something that we're also looking at now or looking at our solution, which will also be maybe partly powered by some of our partners. We will be focusing on selling the entire solution from Control Print. You know, that will hopefully give, you know, greater, you know, sales and success in that area. So far it is more pharmaceutical driven, but, you know, of course, I do believe that the traceability solutions will increase across the board. Of course, in a lot of cases we do contribute software also along with our printer. A lot of integration that happens. These are all areas obviously we are working on.
As far as the coding and marking business overall, like I said, our target is to hit INR 400. We do believe that the coding and marking business will grow at about 1.5x GDP of industrial production in India for manufacturing growth. Manufacturing growth will be the best proxy. But approximately, that's not the case. We assume that manufacturing growth and GDP growth will be the same. That's how whether the overall coding and marking business grows and our own aims. Of course, what will happen besides the adjacency that we've already discussed, you know, it will depend on what sort of opportunities come our way between now and in the future. Because in some cases, it's not practically possible for us to build in-house. Although we have the capabilities, it will take us a long time and, you know, it would make more sense to purchase.
Okay. Basically, sir, you highlighted that industry is growing at probably 1.5x GDP. Within that, I think around INR 1,200-1,250 crore, that's the pie enjoyed by unorganized player. Maybe a migration from unorganized to organized, because as you alluded earlier, like packaging or across the board within the economy, there is a clear-cut migration of market from small unorganized player to, you know, a corporate organized player. Maybe, how do you see the pie? I mean, INR 1,600-1,700 crore, that's organized market. Around INR 2,800 crore if I add unorganized. Within the industry from unorganized to organized, that is one part.
Secondly, sir, of late regulatory requirements has gone up, like say on pharmaceutical authority or top 300 formulations now there has to be a certain type of coding, marking. Yesterday, FSSAI came out with certain labeling norms for brand manufacturers. In the light of all these positive tailwinds, what is your view, I mean, on the industry going forward? Like one, migration of players from unorganized to organized, and second, the regulatory requirement. The way in which industry grew in the past, maybe 1.5x GDP, going forward, can one expect an organized player like Control Print to grow at a higher than the industry rate within the organized pie? If you can throw some light.
Yeah. Just, you know, I think the first, maybe there was some, you know, misunderstanding, but I said the organized market is INR 1,200-1,250 crores. Including the unorganized market, it's about INR 1,600-1,700 crores.
Oh. Okay.
INR 400-450 crores in the coding and marking industry. You know, I said in that, obviously the coding and marking that takes up INR 1,600 crore or INR 1,600-1,700 crore business overall is growing at the rate of about 1.5x real GDP, not nominal GDP, but real GDP. Within that, you know, we are targeting to hit INR 400 crores by March 2025. Of course, we intend to do it without any real capital investment. We don't need to do that, we believe. You know, we intend to maintain our overall. Of course, I think there's been a lot of debates in this conference so far regarding margins and, you know, whether it's 63% and 61%, and whether our EBITDA is 23% and 25%.
You know, roughly being in the same zone, if not higher overall on a longer-term basis, obviously we expect to improve. I think that's sort of, like I said, that's what Control Print's aim is. Besides that, we are already working on exploring these adjacencies. You know, these are new initiatives. Obviously, we are ready to invest money.
We spent, I don't know, some amount of money in the Markprint acquisition, and we are spending, gonna spend a good fair amount of money developing our solutions for that, for the Indian market also, and for Markprint to try and grow their areas and look out for other opportunities in this space, like I said, between the coding and marking business and the huge, you know, press, presses which are like multi-million dollar solutions competing with the conventional presses like Heidelberg or KBA or you know, Komori and those types of people. You know, that's where the thing is as of right now. Secondly, coming to the track-and-trace, and I don't want to say for the pharmaceutical thing. I mean, just being in this business, I mean, I know this sounds a bit actually very excited.
You know, the pharmaceutical track-and-trace requirement came out like 10 or 15 years ago. Everyone knows that the pharmaceutical lobby or the industry association is very strong, you know? In the past, you know, government has come out with many proposals. Even they've come out with regulations and they've set deadlines. You know, honestly, the industry, not only pharmaceuticals, even some of the other industry associations are, you know, they have a tendency to make things voluntary. Is that the right way to word it? Of course, I'm not saying anything against it. You know, it's totally, you know, it is not our area because the government is looking into it actively and they are interfacing directly with industry association.
I'm just saying in the past, even deadlines have come and, you know, they have been either continuously shifted or they have even been removed, the regulations. You know, it's difficult to make a strategy based on something that might happen, which experience has not happened, continuously. This is not a new thing. I think you know that we are more focused on what sort of innovations we can deliver to the customer, what sort of values we can deliver to the customer, and not really relying on that the government is gonna take out a big stick and hit everyone with it, and that will force everyone into buying our solutions.
Yeah. Thanks for the and all the very best for future.
Thank you.
Thank you. I now hand the conference over to Mr. Karan Bhatelia.
Hi, Shiva. Any closing remarks that you want to make?
I just wanted to wish everyone happy Diwali. You know, I know that this is a very busy time for everyone because there's a lot of other results coming and really value everyone coming on board and taking the time. You know, of course, with also celebrations, so really, you know, all the best for everyone. Like I said, we've had a not very eventful Q2, but you know, we hope to continue this going forward in Q3 and Q4. Hopefully, you know, resolve the lingering issues that are there regarding supply chain stuff and you know, just focus on our performance and you know, our customer satisfaction going in the next two quarters. Of course, we'll catch up with all of you again sometime in the third week of January.
You know, thank you to Karan and AMSEC for hosting this. Thanks to each and every participant, you know, for taking their valuable time. Happy Diwali. Jaideep, you wanna add anything?
No. Just wanted to wish everybody a happy Diwali. Safe, happy Diwali, and wish you all the best. We'll see you in the next Q3 quarter, earnings.
Thank you very much.
Yeah.
On behalf of Asian Markets Securities Private Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.