Q4 18/19

Apr 10, 2019

We would like to thank the management of Bajaj Consumer Care for giving us the opportunity to host this 4Q FY 'nineteen call. The management is represented by Mr. Sumbhid Malhotra, Managing Director Mr. Sandeep Verma, President, Sales and Marketing Mr. Dilip Kumar Malu, Chief Financial Officer and Mr. Kushal Maheshwari, Head Treasury. At ISEC, we actually have a buy rating on the stock with a target of four fifty. It's one of the preferred picks in the mid cap space. In this call, we have three expectations from the management: one, an important commentary on rural consumption given the questions about deceleration in consumption, at least that's all coming from a lot of other companies. Secondly, an update on the core business and also the thought process on the new products. Without further ado, I would like to hand over the floor to the management for the opening comments. And after that, we can start the Q and A. Thanks, and over to you, Sumit. Thanks, Panoj. Good morning to all, and welcome to the conference call for the declaration of the fourth quarter and annual results for the financial year twenty eighteen-twenty nineteen. With me are Sandeep, who's the President, Sales and Marketing Mr. Malu, who's the CFO and Kushal, who's the Head, Treasury. We have closed the fourth quarter with a turnover of crores and a PAT of INR60.62 crores. The growth in turnover is 11.1%, whereas the PAT has grown by 9.4 this quarter. On an annualized basis, our company has dropped a total operating income of crores. This is the first time in our history we have crossed INR900 crores in operating income. This is on a stand alone basis with a growth of 9.4% over the last financial year. The EBITDA for the year has been crores, which is a very healthy 33% of our sales. During the quarter, the rates of nearly all the raw packaging materials have gone up. The two raw materials that we really look at, which is light liquid and refined mustard oil, have gone up quite steeply. Light liquid paraffin has gone up by 10% and RMO has gone up by 7%. But what is different this year is that the other raw and packaging materials also have gone up. Glass bottles saw an inflation of 6% and cost of perfumes even went up by 5%. However, by proactive purchases and TAMI MRP increases, we were able to contain the rise in COGS, thereby affecting our gross margins by only 24 basis points during this financial year. The fourth quarter saw significant rise in market shares of our lead brand, Bajaj almond drops hair oil. The value market share in light hair oil went up to 64% in Feb of this year. Even if you take the performance of the brand in the total hair oil segment, it's touched an all time high of 10% in Feb twenty nineteen. This rise in market share has been driven by increase in household penetration. The penetration of Bajaj diamond trucks has gone up from 17.6% to 20.1%, which is an impressive rise of 2.5 in penetration within one year. The relaunch of Bajaj Diamond Drops has been very successful and has resulted in market share as well as penetration gains. The growth within the total hair oils on a national basis has been improving on a monthly basis. The total hair oils grew by an impressive 17.4% by value on a moving annual total Feb twenty nineteen. Within this, the growth of light hair oils and heavy hair oils are now nearly the same. The growth of Life Heroids have been driven by rural growth. For the MAT, Feb twenty nineteen, the rural growth have outgrown the urban growth by four fifty basis points. The other brand we relaunched during FY 2019 has been Nomax. During the fourth quarter, the growth has been 41.4% in the domestic market. Even on a company level, the brand has shown an impressive 26.8% growth in turnover and on in this quarter and an annual growth of 14.4%. The market share of the brand in the anti mask category continues to do well and is currently at 8.6%. The two recent launches of Bajaj Cool almonds rock and Bajaj No Mask sunscreen have been well received in the market and currently meeting our short term goals of timely sales and distribution. This quarter saw all our sales verticals with the exception of CSTs showing a distinctly positive performance. The leader was the sales vertical of international business, which grew by 66.4% this quarter. The restructuring of the international business has now begun to show positive results, and we are hopeful that in the coming quarters, will see more of the same. Alternate channels, which grew by 21.8%, was led by a small but very exciting e commerce business. The e commerce business grew by over 150%, and our brands are now being sold in platforms like Nyka, Grouphers, Reliance, ecom and Purple. With the increase in investments in various parts of the alternative channel, we expect this part of our business to grow exponentially and outgrow all the other sales verticals. During this month, our company has informed those exchanges about our engagement with Bain and Company. As you will all know, Bain and Company are a well renowned global management consultant. The firm will help our company plan to grow our hair oil brands faster. This they will be using the well respected BBA or Bain Brand Accelerator model to guide us towards faster growth. The positives that we have witnessed during this quarter are double digit growth in turnover, improvement in growth in volume of the light hair oil and total hair oil, growth led by improvement in rural volume growth and all time high market share in Life as well as total hair oil segment, a healthy EBITDA of 33% despite strain on RMPM, relaunches of Bajaj almond drops and Nomax showing positive results and engagement with Bain and Company to further speed up the growth of our hair oil brands. We are planning an investor meet on the April 30, though a formal invite will be sent to you. May I please request you to make it convenient to attend the same. We are now open for questions. Thank you very much. We will now begin the question and answer session. Session. The first question comes from the line of Abhi Mehta from IIFL. Please go ahead. Hi, sir. Just wanted to understand in the some commentary on the demand environment as we close 4Q. Is there we've kind of heard commentary on weakness in rural environment rural markets. Is that something that you would corroborate or you would disagree with, if you could share your The figures that are coming in from Nielsen with Strat Softake clearly shows that Rural is not slowing down for hair oils at least, right? So what you would have heard from other companies or various other segments, I can't put out there. But for hair oil, the difference between urban and rural is widening in terms of growth and rural is not slowing down. Okay, sir. The second bit is on the competitive intensity and in an environment where input costs are the way they are behaving, just wanted to understand our ability to pass on the input cost inflation through price increases or your thoughts on that? We have made it a point that we are not greedy in increasing our gross margins. And therefore, whatever RMPM cost increases, we normally during the year, at least once, take a correction in our MRPs. There was a period between 2015, 2016 to twenty seventeen, twenty eighteen where we didn't take a price hike because the raw and packaging material situation was quite benign. But last year, we had taken two price increases, one in April and one in August, September. This year, we have taken a price increase as we speak in April itself. And the quantum, sir, of the same? This is around 3.7% in April 2019. It will the new MRP will hit the market during this month. Okay, perfect sir. I'll come again in the queue for any other questions. Thank you very much. Thank you. The next question is from the line of Prakash Kapadia from Envid PMS. Please go ahead. Thanks for the opportunity. I had two questions. If I look at the annual other income, it has fallen from INR24.3 crores to INR17.5 crores. So could you give us some color on the decline? Has there been some mark to market loss? And what why this decline? I think you've answered it yourself. The biggest the other income is largely the treasury income or only the treasury income. And if you being in the financial play understand what's happened to the returns on the investments, it has gone down. A very large proportion of this is obviously the mark to market and not realized profits or gains, But the large part of reduction of around seven odd is due to mark to market losses on our treasury. Okay. And as we've seen a delayed summer, what are we doing to ensure that retailers are stocking almond cooling oil because that's a fairly new product for us. So how are we tackling the delayed summer? Any It's a very new product currently, and we launched it in March. And the first response is very encouraging in the sense that the USP or the selling proposition of this is a light cooling oil. So our research actually showed us that the cooling oils in the market today are seen as very harsh, both in terms of appearance as well as the stickiness that they give to the consumer. So what we did was we did not play upon the coolness. We have product which is as cooling as the competitors, but the feel is much more lighter. So that's why we actually extended Bajaj Raman Docks, which is a light air oil into a light cooling oil. So since it's the first year negative impact of delay of summer and all that is something that we haven't seen at all because we are still just putting the product in the market. The offtakes have started, but they're still significantly smaller as we speak. How would it be compared in terms of pricing with the available cooling valves? It's the same. We haven't played with the pricing. One more question, if I may. Nomax will always be a niche and not a big contributor as anti blemish categories small. So from a derisking perspective, what are we thinking in terms of the inputs from Vein? So how do we derisk from the almond light hair oil? Because this is a very niche category. So unless and until we do acquisition organically, any thoughts of some newer categories? It's too early because Bain has just come in from April 1. So the whole idea of getting Bain is to help us collect our costs and come up with a strategy for doing exactly what you're talking about. You're dead right that no masks in its present form is a very small category, which is anti masks. This is a small category. So that cannot be used as the bedrock for derisking. So Bain is going to help us. And as we move along on a quarterly basis, we'll give you an update on what's happening on that. Sure. Understood. Thank you. All the best. Thank you. The next question is from the line of Rahul Jha from Bay Capital. Please go ahead. Hi, Sumit. This is Nikunsh Doshi here from Bay Capital. Hi, Nikunsh. Just wanted to understand this mandate to Bain. So is it only for the hair oil category that we are looking? Or are we looking them to suggest on the adjacent categories or some new categories to enter? The first part that we have set out is only on hair oil, right? Further, we may or may not engage with the overall company strategy. Okay. And that's so thirtieth analyst meeting will be presenting their suggestions or it will just be It's too early. Normally, this first project itself will take six months. But we'll present why we went in for pain and what are we hoping to achieve. Okay. Thanks, Sumit. Thank you. The next question is from the line of Himesh Sattara from Joyneray. Please go ahead. Hi, sir. Can you hear me? Yes, yes. So I wanted to have some clarity on the number of shares that are pledged by the promoters of the company. Yes. Again, like I said in the last phone call, you're asking the wrong person because the people involved in pledging and taking loan and all that is the family office. And I expect during the investor presentation, since Mr. Bajaj will be there, you'll get an opportunity to question him there. I don't have a clarity on that, and therefore, I'm not the right guy to answer this. Okay. And have we like is there any change in the management of the company or the management is the same as it was? I think it is the same. We have put it in the investor presentation. And for the last ten years eight years, we have been putting the Organogram. I don't see any change except a new person joining in as AVP Finance, Mr. Rohit Sarawi, who's come in as an understudy to Mr. Malu and in the long run will take over as the CFO of the company. Okay. And could you provide some guidance for the volume growth or any new products that we'll be launching in coming quarters? We normally don't provide guidance. And especially on new launches, I would rather not talk on a conference call. The next question is from the line of Shripad Bodh from Smart Investor. Go ahead. Good morning, sir. So my first question was regarding the volume growth during the quarter. And if you could throw some more light on the demand side and how do you see the demand panning out in the near term when the other industry experts have shown their concern on the demand side? In terms of demand side, if you look at Aloy specifically of this, they're the second largest player with a 10% market share, I don't see any slowdown in demand as we have seen. But consecutively, in the last four quarters, the demand has been improving in value terms. In volume terms also after a low second quarter, the third and fourth quarters were much better in terms of volume growth also. So I don't think that's an issue at this point of time. And my concern, which was that starting from the second quarter of last financial year to the first quarter of this year, total growth were really not in excess of the urban growth. That has been reversed. And like I said, there's a 4.5% difference between the growth of rural versus urban this year. Okay, sir. Thank you. Thank you. The next question is from the line of Darshan Manik from Insura Securities. Please go ahead. Hello. Am I audible? Yes, yes. Yes. So sir, my question is, can you provide us any idea on raw material cost? How would it be going forward? See, if you look at it, we have three parts of it. One is light liquid paraffin, which is directly linked to crude. And if you know the crude prices over the last forty days have been actually going up again. So we work we are covered till June already. And what we normally do is stock up rather than sort of base for prices to go up and buy on a spot basis. So we are looking at downturns in LLP prices, and we'll keep stocking up. But for this quarter, we have covered at the current rate of LLP prices, right? The other part is things which are based on, let's say, agriculture, which is things like RMO, which is refined mustard oil. That has also gone up surprisingly, but knowing the importance of this as a cooking oil within India, this normally, the government does not allow inflation to hit mustard oil that harshly. So I expect it to cool off in the coming quarter or so. This is also the season that the new crop comes in. So we'll possibly see a little more control on the prices. The third part are things which sporadically increase, which are things like sort of glass, perfume, the packaging material, all of that, all of that we have already had to take a price increase. So hopefully, this year, you should not see a major increase. All of this has been accounted in the recent price increase. And therefore, reduction in gross margins is not expected this year. Okay. Okay. Thanks. That's it from me. Thank you. Thank you. The next question is from the line of Rahul Ranade from Goldman Sachs. Please go ahead. Yes. Hi, sir. Thanks for the opportunity. I just wanted to understand the divergence between the offtake growth that we report. So YTD, we have reported around 18% as per the Nielsen, whereas the primary sales growth for the year is around only 5%. So just wanted to understand why the difference is so big? There could be two major reasons. One is the company also looks at sales from canteen stores, from exports, etcetera. And therefore, the two figures are not like to like in geographical terms also. The second thing is remember Nielsen is a sample. They work on a sample and therefore on short term, if you see quarter, you may see differences between our sales figures versus their offtake figures. To help you all understand, we show what we sell to distributors. We also track what the distributors sell to retailers. Nielsen tracks what the consumer buys from the retailer. So there's a pipeline in between, which could possibly cause some of these errors. Okay. But the CSD and international together for us would be around what 10%, 12%? Around 8%, 9%, percent. Okay, okay, okay. And just one more question on the working capital part. So I think that is kind of slightly gone up this year. Anything to read into that, anything specific? There are two parts of it. One, I think our outstandings with CST has gone up because like I've been telling you, we don't give credit to our general trade people. So CST and you know you probably understand why it's gone up. The government has not been paying us for the last two months. So that has slightly gone up. The second is in our things, we get GST refund for the fact that we are available we manufacture in the Northwest and Northeast Of India. That refund that has not come in from the government currently is around INR31 crores. And that has added to the this balance in working capital. Having said that, we are basically a cashless company, so it doesn't really affect us that badly. But all of this is outstanding and to be collected either from the government through GST refunds or the government through canteen stores outstanding. Okay, okay. Got that. And just last question on the international business, like what is the outlook there since it's starting to pick up now? I think it's very glamour and we have been talking over the last two conference calls that we are cleaning up the system. We called it a reboot of the international business. That has really gone well in terms of one, the stability in distributors, the stability in our own management in handling international business, and we expect much, much higher growth in the coming year. So instead of a negative that we saw this year, we'll definitely see a robust positive in the coming year. All right, sir. Thank you. Thank you. The next question is from the line of Surubi Prasad from Cochincies. Please go ahead. Yes. Hi, sir. Hi. Hi. Actually, you had said earlier that every quarter you will launch a new product. So what products are we expecting this quarter? How can I talk about the products I'm going to launch? What I did say that last quarter, we launched two products. Was the large pool and the second was Nomad Sunscreen. That's what we did last quarter. This quarter, as the quarter unfolds, we'll be able to talk to you about it. Okay. Anything on the outlook for the next year like current FY? I just said I don't give guidance. And that's one of the reasons why we give such a lot of information in our investor presentation so that you can actually make the model yourself. Okay, okay. Okay, Thank you so much. Thank you. The next question is from the line of Rohan Samant from MultiAct. Please go ahead. Hi, thanks. Can you give us an update on the Coco Jasmine and Brahmi Amla launches? So where are we right now in terms of what kind of growth are we seeing there? See, among the two, I think the better performer is the Brahmi Ayurvedic. Yes, we do have certain feedback on the product in terms of the pricing and the positioning that we are working on. But it's done better than the Coco Jasmine. Coco Jasmine, if you remember, we had launched only in Maharashtra. As of now, the feedback isn't very, very exciting. So we'll have to rework our mattresses there so that we can sort of work and get the roads back again in this. Okay. So we are currently only selling in Maharashtra. So we haven't kind of increased No, we launched in Maharashtra. We launched in Maharashtra. In fact, in the last conference call, we had also mentioned that even within Maharashtra, we had restricted it to few select geographies because it was one of those launches where we were iterating basis the consumer responses, right? So we are still on the like Sumit has just mentioned, we've received enough feedback, which tells us that we need to go back to the drawing board on it to make it more distinctive versus the other offerings. Okay. So it is still you can still buy that product in that region, right? Or you are taking it out of the system? Okay. Okay. And international business, the size would be how much as a percentage of sales right now? It will be around now this year because of the reduction, if we have declined, it will be around 4.5%, 5%. But ideally before this last year, we had touched a 7% saliency of international business. Okay, okay. And one of your peers has mentioned that the CST side of the business is kind of stabilizing. Are you seeing that kind of a thing on your side? No, I don't see that. There are swings. If you saw last quarter, we had grown that is the third quarter we had grown well in CST. Fourth quarter, we have declined again in CST. So I don't see a sign of stabilizing. Okay. Okay. Thanks. Thank you. The next question is from the line of Darshan Manik from Ventura Securities. Please go ahead. Just any guidance on buyback or something in the company? I can't hear you. Can you come closer to the microphone? Yes. Are we planning a sort of buyback or anything? No, not at this point of time. Okay. Thank you. Thank you. The next question is from the line of Nitin Gupta from SBI Cap Securities. Please go ahead. Thanks for the question, Dhruv. Just wanted to get a sense on how many drops here are your volume growth for this quarter? Are you talking about turnover or are you taking No, no, volume growth for ADHO. Are you talking of offtake or are you talking of time fee sales? What are you No, no, for this quarter our volume growth, like overall it is around 5.5%. It's around 7.4%. Point 3% something, seven point Okay, sir. Thank you. And second question is on rural. Since we are seeing outperformance to urban, so what according to you the key drivers while we for this category we have seen gradual acceleration in this outperformance? I've always been saying that this category, you don't get too many new users of A. Roy. What you get is conversion or up trading or down trading with you, whatever be the scenario. So when income in the rural areas go up, people convert from unbranded to branded or coconut to branded much more speedily. And rural growth increasing is a sign that there is money coming in to the rural areas, either through increase in MSPs or the subsidies that the government has announced and also given during the last quarter. I think all of that cumulatively has shown increase in urban air oil consumption. Okay. Thank you. Thank you. The next question is from the line of Bharat Kapoor from Investec. Please go ahead. Yes. Hi, sir. This is Bharat here. Just one question on CSD. So what's really changed from, say, Q3 to Q4 in terms of growth moving back to decline? And the second question on that was that versus maybe a couple of years back, how much would CST now be for our business as a percentage of sales? If you take four years ago, we were nearly double of what we were in terms of saliency with the Visa other companies. What has changed is, I think, three things. One is the government itself is trying to contain the leakages of products from the canteens to the local market. They've done it very actively over the last three, four quarters, and that's why that's going down. Second, the government is sort of taking a squeeze on the cash that is given to CST to buy more goods. You see the process in CST is that the orders are placed by the canteen stores. The money that is collected from sales from the canteen actually goes to the MOD or Ministry of Defense. And Ministry of Defense releases money to canteen stores. So that release is actually being constrained by the government because of whatever reasons that the government sees in terms of the liquidity at their end itself. And third is that they are actually streamlining their supplies in terms of reducing the number of canteens, reducing the stock at depots, etcetera, etcetera. It is a hygiene factor. So it's got to do with hygiene. It's got to do with removing the leakages. And third is the cash crunch that Canteen is going through. Got it. Got it. And do you think this could kind of continue to be a little bit of an issue as the recalibration continues? I don't know. I hope it's not. But the internal news is that the government is really looking at this method of subsidizing the armed forces and trying to think of a more cost effective and technology enabled method of passing on the subsidy to the sales to the soldiers. Got it, sir. That's it from me. Thank you. Thank you. The next question is from the line of Deepak Malhotra from TPG. Please go ahead. My question is basically regarding the dual performance, which you mentioned, which is doing well. You mentioned because of MCP and subsidy and so on and so forth. But then there is a counter narrative, which is going on that the rural income hasn't been really up to the mark. And now if we combine that with the recent SkyMet projections going forward, what do you really foresee in the coming quarters? How it's going to really affect if at all your performance? A and D, whenever we had such predictions from the climate or other agencies, how has that really affected the performance in the past? See, one difference that you should notice is that we are much smaller companies than the larger MNCs that you get commentary from. We are also in one large category rather than in several categories. And therefore, their reading of the situation in multiple category helps them give a more color view to their commentary, whereas my commentary is largely from the hair oil category. The first thing is that hair oil is peculiar that we have a very big unorganized category or unbranded play, and that is the largest reason for growth in hair oil. And a large part of this unbranded hair oil users reside in the rural areas. And therefore, logically, should continue growing much faster than urban. And therefore, sooner rather than later, aeroel, like other categories, will have a very small unbranded aeroel play unlike what it is today. Currently, it's around 22% of the users use unbranded hair oil, and this is consumption data from IMRP or Gantor, like you call it. Okay. So and on the Monsoon part, would you really like to comment something? Would it really make any effect, do think? You have read what I have read. And what we have read is not very encouraging. If monsoon is going to be 30% low, there'll be a strain on rural consumption. At this point of time, I don't have any other data points. But just to say that, yes, everything will get affected if monsoons are really 30% lower than normal. Can go back to the industry and say if in the past ten years, just help us remind you of the current situation and how was the performance? If you go back, there were two consecutive bad monsoons, right? Yes, 200%. Each industry slowed down, FMCG segment slowed down, right? And we also slowed down, but slowdown in things like the other staples was much more pronounced than in Eero England. Okay. Thank you. My other question is on the Payne and Company, which you have, as you mentioned, they're starting the assignment only from April 1. So I understand that it is very early for you to really comment on what they really would suggest. But at the same time, I think in the past, we have considered buybacks. We have given higher dividends. So going forward, do you think at least dividend is affected? Let's at all decide For to believe the current assignment with Bain and Company is more to do with the brand rather than the company strategy. So things like buybacks, acquisitions, getting into other categories will be the second part of their engagement as and when it happens. Currently, are only looking at hair oil and what can we do to increase the rate of growth in hair oil, which we are currently around 10% market share. If I can increase that, I think it must faster growth from a huge category, which is currently at INR13000 crores in India. Okay. Fair enough. Understood. Thanks. Thank you very much. The next question is from the line of Pritesh Chera from Lucky Investment Managers. Sir, just a clarification. You mentioned the ADH show primary volume growth at about 7.4% in quarter four FY 'nineteen. Is that the number you mentioned? Yes. What it would be for FY 'nineteen full year? It's 5.8%. And this 5.8% would be after CSD would have declined this year and international would have declined this year or international would have grown this year? No, declined. Okay. So what would be India growth rate, direct market growth rate for us? For the year? For the year. India growth rate would be around 7.4%. Point three seven Okay. 7.37%. And you mentioned international grew 56% that was specifically for quarter four? Yes. Okay. Thank you very much. Thank you. The next question is from the line of Vishal Gupta from Select Capital. Please go ahead. Thank you for the opportunity. I have one question. Sir, what is the of light income tax rate for FY 'twenty, FY 'twenty one? It will remain at MAT plus. The 24% range of range? 21.5%. The reason is very simple. We now produce around onethree of our production from Guwahati, which is still at least for the next seven years. Ten years. Nine years now will remain under zero tax. Thank you. Thank you. The next question is from the line of Manav Vaijai from SL Finance. Please go ahead. Sir, thank you for the opportunity. I just want to ask you two questions. First of all, the divergence of the sales that you report and what the Nielsen data report, Now you gave some reasons for that. I just want to know if we go back to the history, what did data ever converge or this difference has always been there? It's always been there, sometimes plus, sometimes minus. And because ours is authentic money coming into our system, whereas Nielsen is a sampling exercise. So that's why I've always been telling all of you to look at Nielsen in terms of trends rather than absolute. If you spend time converting Nielsen into a number of pieces sold and then back with our number of pieces sold, you'll go crazy. Fair enough. Second question for me, On the number of outlets that you provide in your in the PPT on the supply chain overview, there's a slight decline if I compare on quarter a on quarter basis. I would say in every conversation, urban outlet, rural outlet, urban distribution, rural stockist. So if you can just tell me, is there is I mean, I should read into something into it or just maybe kind of one off phenomena? You should read the source of that data. That number of outlets, urbanrural is basically from Nielsen. And not my direct. If you read the investor presentation, we have a slide on our direct coverage, right? Correct, sir. That is a much more robust data than Nielsen data because these are the outlets that are visited by my own people. If you look at it, it's a little over five lakh outlets in this season. Sure. So that's all from me. Thank you and all the best. Thank you. Thank you. The next question is from the line of Hiren Dostani from Goldman Sachs. Please go ahead. Sir, I mean, if you look through the quarterly volatility Hiren, sorry to interrupt you, but your voice is breaking. May I request you to repeat your question once Yes, you hear me now? Yes, better. Yes. So I would think that if I look through the quarterly volatility, do you think that over the medium term, the Harel category which you're in is capable of delivering double digit kind of volume growth? And then what kind of macro environment you think that is possible? In terms of volume growth double digit on a total hair oil is difficult in my opinion, right? And the reason is very simple. It's a very large and highly penetrated category. And therefore, what you see in smaller categories that you see double digit volume growth is largely due to increase in number of people using our penetration. In this case, penetration of the total hair oil will be difficult to increase because the only source for increasing penetration will be ungranted. But having said that, value growth double digit is definitely possible. For ADHM as a category or for overall? Total hair oil. I thought you were talking about the total hair oil category. Okay. So you're saying for you as a company, total heroic Heroic is in the total Yes. Okay. Okay. And what kind of macro environment is needed for that, I think largely is if you look at it, rural gives us at least for our brand gives us 40 odd percent of our sales, and it's around 68% of the population. So obviously, as the rural well-being goes up and consumption goes up, that will drive this conversion from unbranded to branded. And therefore, a total of total air oil will continue to grow fast. Okay. And then as you don't give the guidance, but do you think 2020 is such an environment where it is a possibility? But I don't give guidance. Okay. Thank you. Thank you. The next question is from the line of Jay Modi from MK Global Investment Managers. Please go ahead. Thank you for taking my question. Sir, you just mentioned that Bajaj Almond for the year volume growth has been 7.4%. Is that right? Okay. And considering international and CSD business, how much was the volume growth for Badaj Almond? I said 5.8%. 5.8%. Okay. And sir, secondly, I wanted to understand whether the Almond Cool Drops was launched pan India or was it specific the launch was specific to certain states? It's pan India, but largely cooling oil is a mix of largely concentrated in the Hindi speaking area, but we have launched it everywhere. Okay. And the organizational revamp that we were undertaking, so is that complete? And if yes, then are we meeting the benchmarks, the goals that we set for ourselves? Reorganization was completed more than two years ago. the supply chain distribution Efficiencies successes that we were keep on going up. That is it. But the major revamp happened more than two years ago, right? And efficiencies that you should see it coming in has continued to show in bits and pieces. You'll see more of it as we go along. Okay, fine. Thanks a lot and all the best. Thank you. The next question is from the line of Devasho Sampad from Your Securities. Please go ahead. Yes. Hello, sir. Just one question, sir. So there was a 24% increase in employee costs on a Y o Y basis, if I look at the full year. So can you just provide an idea as to what hiring plans or how should we look at this for the next one, two years? Yes. Actually, you should understand one thing. This is not actually only the salary that has gone up. There's also an element of the new ESOP plans that we had announced last August, and that's added to our wage bill by around INR 2.8 crore. That's it. And in terms of employee plans, I don't see a major increase in number of employees. Obviously, April being the year the month where we give increments, you'll see a normal increment being an increase in the absolute cost. Okay. So the senior level hiring that we want to do everything is pretty much in place right now? Pretty much in place. Okay, great. Thank you. You. The next question is from the line of Rahul Ranade from Goldman Sachs. Please go ahead. Yeah. Hi, sir. Thanks for the follow-up. I just wanted to understand the salience of the new INR10 pet bottle that we had launched in ADHO? It's currently the fastest growing part of our almond portfolio. Like I said, it's currently around 5% of our total volume, right? But it's up from something like 2.8%, which was there three years ago. So it's definitely getting into larger number of households now. Okay. But it's still a smaller So that migration largely is happening from the sachets, people upgrading to the INR10 price point? That's the whole idea. Okay. All right. Thank you. Thank you. The next question is from the line of Kashish Anand from Allegro Capital. Please go ahead. Yes, thanks for the opportunity. First question was an extension of, I think, Helane's question earlier. He had asked about volume growth for the industry. I just want to understand I understand that the overall here in industry, it'd be difficult for it to grow double digit in terms of volumes. But because of premiumization, if we look at the ADHO segment, do we believe that it's possible for the ADHO segment to grow double digit? Yes. Yes, it is. Okay. And any specific circumstances or requirements as in does kind of copla relative pricing to copla etcetera make a difference? Or is this the kind of a growth rate we should look at in terms of the underlying potential? It's very amateurish to say that the variation or the gap in prices between almond and coconut doesn't play a role. But the more premiumization or the more premium you make your brand, the lesser the effect of this difference. But it does play an effect there. Okay, excellent. The second question was with relation to Bajajkol lemon drops. As I understand, as in it's basically concentrated in the Hindi speaking states. Wanted to understand what is our level of kind of how strong is our distribution in this particular belt? The strongest, we are the strongest in the North and the Hindi speaking. That's our weakest is the South. And South fortunately, except Andhra Pradesh, is not a cooling oil market. And just to confirm, you mentioned that our pricing is similar to competition? Yes, yes, that's right. In cooling oil. Okay, perfect. Thanks a sir. Thank you. The next question is from the line of Pritesh Chera from Lucky Investment. Please go ahead. Just a clarification, international and CSD contributes about 8% of our sales. Not this year. Normally, it is true. But if you remember, international, we have been doing a reboot. So from around 5%, it dropped to around 2.5%. So ideally, it should be that much. So ideally, it is eight but this year, it dropped a bit. Yes. It's around six odd percent. And the cash in the balance sheet is around INR400 crores? No, That is in the stat. INR2606 crores. INR2606 crores, okay. It's there in our it was INR34 crores of our Indian strip presence. Sorry for that. Thank you. Thank you. The next question is from the line of Abhijit Gundu from Antik Stockbroking Limited. Please go ahead. Yes. Hi, sir. Thanks for the opportunity. My question was on the inventory part. When we look at inventory on a year on year basis, there has been a good amount of increase. What has been the reason for this? Inventory? You're talking of total inventory, that means RM plus the investment. Inventory as well as even if you look at inventory outstanding days, there has been I can't tell you. Inventory of what? Are you talking only RM or you're talking of total what? Total, total. Out of that, the large part of that is the LLP that we are stocking up, no? Okay. For the coming quarters, yes. Because we see that the prices are likely to go up looking at the crude prices, I think. And therefore, we have been stocking far in excess of our monthly requirements there. Okay. Thanks. Thank you. The next question is from the line of Lalaram Singh from Vibrant Securities. Please go ahead. Sir, I wanted to confirm the number for the loose oil percentage in the overall hair oil market. I think you said 22%. Is it correct? The line for the management got disconnected. We'll call them back. Please stay connected. Thank you for your patience. The line for the management got connected back. Sir, please go ahead. Yes. My question was that the reported market size for the overall hair oil segment, including coconut oil, this excludes the loose oil or the unbranded? Or does it include that sale? See, what is unbranded? It's actually people using their cooking oil as air oil. So really that volume is next to impossible. Right. So all of this is Nielsen, which are branded hair oils only. Okay. Okay. So when you mentioned that this unbranded is around 22%, so that is the additional potential market for us going forward. Mentioned 22% users of Air Oil use unbranded. You can't do an extrapolation because you don't know how much they use. Okay. And this okay, fine. Got it. That is in terms of users, 22%. Yes. Secondly, in terms of your cost structure going forward, I see can you give us some sense of what kind of growth we can see in the advertisement and promotion, given we have launched one new cooling oil segment brand? And secondly, Lumox, we have a sunscreen. So do we what kind of growth should we assume or expect in the A and P? I would wait to say that the percentage will remain the same. Absolute will go up higher. But the percentage, we will be able to manage within the 16% to 18% that we have been actually spending on ASP. Okay. One final question. The other expenses line item for the full year, we see that the absolute number has gone down. Any particular reason for that? I think we have started cost savings. The first impression you're seeing on this, possibly as we go along, you'll see it in other line items also. Okay. Thank you. Thank you very much. As there are no further questions, I would now like to hand the conference over to Mr. Manoj Manin for closing comments. Thank you, Vajaj Corp team. All the best. Thank