Q3 22/23

Feb 6, 2023

Summary

Q3 total income rose 33% YoY, with EBITDA up 141% and PAT up 180%; domestic revenue reached a record INR 998 crore. Higher Basmati prices and procurement supported growth, while crop uncertainty and export restrictions shaped the outlook.

Ladies and gentlemen, good day and welcome to KRBL Limited Q3 FY23 earnings conference call. 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 touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Ashish Jain, Chief Financial Officer of KRBL Limited. Thank you, and over to you, sir. Thank you. Welcome to KRBL Limited Quarter 3 FY23 earnings conference call for analysts and investors. Along with me on this call today, we have Mr. Anil Kumar Mittal, Chairman and Managing Director, Mr. Anoop Kumar Gupta, Joint Managing Director, and Ayush Gupta, Head of the Domestic Business. We will begin with updates from Mr. Mittal with his views on the industry, the business, and broad strategy. We shall then have Ayush taking us through his perspectives on the domestic business. Thereafter, I will present the financial overview of the company for the quarter and nine months ended December 31, 2022. After the opening remarks from the management, the forum would be open for Q&A. A cautionary note that some of the statements made on the call today could be forward-looking in nature, and actual results could vary from these statements. A detailed intimation in this regard is available in KRBL's investor presentation, which is available on the stock exchange website and also on the company's website. I would now like to invite Anilji to share his views. Over to you, sir. Thank you, Ashish. Dear investors, good afternoon. I will start with a brief on the overall current scenario for rice industry. The rice industry in India has been very bright in both Basmati and non-Basmati segments. During the period April to November 2022, we have seen a total Basmati exports of 2.73 million metric tons valued at USD 2.87, as compared to 2.39 million metric tons valued at USD 2.06 billion during the same period last year, thereby witnessing a growth of 14% in volume terms and 39% in value terms. As far as non-Basmati exports are concerned, a total quantity of 11.57 million metric tons were exported during the same period at a value of USD 4.11 billion, as compared to 10.95 million metric tons valued at USD 3.93 billion during last year, witnessing a 6% growth in volume terms and 12% growth in value terms. As regard non-Basmati, the ban on export of broken continued and there is a 20% duty on export of white rice. Even then, we have seen a remarkable growth in exports, both in value as well as in volume terms. After imposition of a 20% duty, Indian rice prices continued to remain most competitive as compared to global prices. At present, FCI has a stock of 15.4 million metric ton of rice and another about 31.5 million metric ton are to be received from the millers out of the new crop. The quantity will be far more than the annual buffer requirement of 13.8 million metric tons that FCI is required to maintain. In the meanwhile, since the commencement of paddy procurement by FCI, the state agencies for the current kharif season 2022/2023, the total purchase till now has been up by 2% on a year-over-year basis at 64 million metric tons. Higher grain procurement is expected to boost rice stocks held by FCI, which has been depleted by implementation of a free ration scheme that was implemented during April 2020 to December 2022. FCI distributes around 40 million metric ton of rice and 18 million metric tons of wheat annually under the National Food Security Act, where 5 kg of grain per head is distributed free of cost to 800 million beneficiaries. This scheme has further been extended up to the year 2024. Excuse me, please. Current scenario on Basmati crop. We have never witnessed a year like this in our 50 years of experience in the Basmati trade. We have witnessed such an unprecedented rise in the Basmati prices, both paddy as well as rice. The prices were spiraling up and up continuously because of the damage of the crop in terms of yield per acre, as well as quantity due to the unexpected rains during September, October, when the crop was just ready to be harvested. Nobody was able to gauge the exact quantum of damage, but the prices went higher by about 40% as compared to last year from the beginning of the season. For example, 1121 paddy which started at a price of INR 37, INR 38 per kg went up to INR 51, INR 52 per kg. Similarly, 1718, which was started arriving at INR 34 per kg, went up to INR 48 per kg. Likewise, 1509 went up to 31, 32 to 42, 43, and 1401 started at INR 36, went up to 54. This got reflected in the rice prices as well. For example, 1121 Parboiled Basmati rice started with a price of INR 75 per kg and jumped up to INR 92 per kg. Similarly, 1718 started at INR 65 per kg and went up to INR 82, besides 1509 started from INR 62 and went up to 82 per kg, and so on. I would like to add here that as per the original survey of all the seven states, including M.P. and Rajasthan, it was assessed that the total paddy output would be 12.54 million metric tons, equivalent to about 8.15 million metric ton of rice. Therefore, as per the original assessment, the production should have been sufficient to meet the demand, and there was no reason for such a hike in the prices. However, the rice prices in the domestic market increased by around USD 300 per metric ton, as mentioned above, which was expected by the importers worldwide. A number of factors that have contributed to such a sharp rise in prices are the expectation of a lower crop size on account of unseasonal rain. It is believed that the yield per acre in certain areas was reduced by 10%-15%. Limited carryover stock, which got depleted before the commencement of the new crop. Historical high Basmati prices in Pakistan due to floods in the Sindh region. For the first time in the history, Pakistan USD 100 higher over the Indian Basmati, despite the fact that their rupee was devalued against dollar by about 65%. Huge reduction in container freight over the last year. For example, container freight for Saudi have come down from $2,200 during February to March to $400. For Europe, the rates have come down from USD 8,000-9,000 to just $1,150. For U.S.A., the rates have come down from $11,000 to $2,000, and Australia has come down from $5,500 to $1,000. The containers availability has eased out, and freight rates have become very attractive and equivalent to pre-pandemic levels. Indian rupee has also depreciated by about around 9%. Last year, the exchange rate for the rupee was 75.60 in the month of October, November, which now stands at 82.50. High wheat prices in the international markets. Though wheat price in India are in the range of INR 25 to INR 28 per kilo, the wheat prices in U.S.A. and other global markets are just double at around INR 56, INR 57 per kg. Wheat, being a prime cereal commodity across the world, has a psychological impact on rice prices and other cereals as well. All the above factors have resulted in sharp increase in Basmati export prices, and hence this level will also be sustainable in the long run as well. We would like to reiterate that there has been a complete turnaround in the logistics and transportation sector in terms of freight rates and availability of equipment. The availability of rail-road for movement of cargo to ports are now surplus. Same is the situation in warehouse space at the ports. More importantly, the turnaround time at the port have become very fast because of availability of labor, both in the upcountry as well as at the ports. Just eight months back, the load rate was just around 1,500 metric ton per day in break bulk vessel, which is now around 5,000 to 6,000 metric ton per day. KRBL went ahead with its paddy procurement for the current season at a remarkable pace, and the procurement was completed in a record period. This was mainly because Basmati paddy arrivals in the market were at historically faster rates this year and got completed by mid of December itself, which normally goes up to middle of February. We procured 47% higher quantities because we had good orders in hand, both for domestic and exports. Besides, there is an aging requirement and hence our procurement this year has been so robust. On export front, our numbers on a quarter-over-quarter basis are more or less the same for Basmati rice, though there is a growth of 55% in value terms on a year-over-year basis. However, there is a reduction in export revenue in the current quarter due to ban on 100% broken non-Basmati rice. Previous two quarters, we had exported good quantities of 100% broken to China. Our Saudi business is going as per expectation, and our new distributor is performing well. But we are still unable to finalize a new distributor for the HoReCa segment, the effort for which are going on. Regarding Iran, the payment mechanism is a big question mark, and still the shipments and payments are routed through Dubai. We feel that after Ramadan is over, the stocks lying at the ports are depleted, there will be a solution for the payment mechanism. Rest, our export to all other regions and destinations throughout the world are performing as usual. I have tried to portray a complete scenario on the production and export of Basmati rice and would be happy to answer any question in the following session. Thank you. I will now pass it to Ayush for the domestic market update. Thank you, sir, and good afternoon. I will now share an update on the performance of the India business. India business recorded the highest ever quarterly revenue of INR 998 crores during the quarter. This marked the growth of 32% year over year. Growth in the quarter came on the back of both retail as well as HoReCa segments. The consumer pack segment grew by roughly 9% in volume terms year over year, with both the traditional trade and modern trade channels growing well. In traditional trade, KRBL clocked volume market share of 32.4% with a gain of 17 basis points year over year. In modern trade, we clocked volume market share of 39.8% with a gain of 360 basis points year over year. Besides the strong demand, the growth in retail segment is an outcome of the input measures that we are driving with rigor month over month. One of the strategic pillars of the India business is to drive distribution. Here, during the quarter, KRBL has expanded its outlet penetration by 15% year over year to reach a numeric distribution of 39.2%. In the current financial year, we have expanded our distributor count by 40% to take the number to upwards of 700 plus dealers and distributors. Annual household penetration of India Gate brand as of September 2022, stood at around 10 million households, including 1.4 million new households in this past year. As you would be aware, loose Basmati currently contributes close to 65% of the total in-house consumption of Basmati rice in India. This forms the foundation of our second strategic pillar that of increasing branded Basmati rice penetration. We have been driving this agenda with our Unity brand as a budget-friendly offering. Unity today stands at a INR 600 crore plus brand in the KRBL portfolio, and we have been able to make good inroads in particular geographies from a brand penetration point of view. Starting Q3, we have added to this drive and are now also driving branded Basmati penetration through India Gate brand. Our new advertising campaign featuring the popular Bollywood actor, Pankaj Tripathi, is one of the main initiatives in this direction. Moving on to HoReCa segment of the business. This segment has grown by 20% year-over-year and 88% sequentially in volume terms, which contributes roughly 40% of the domestic business revenue. KRBL plays very strategically in this segment, focusing only on top of the pyramid, which means customers who value quality and are willing to pay the price for it. With the revision in GST norms, which puts all sellers on a level playing field, the opportunity size for KRBL has significantly expanded. We are now targeting 20%-25% of this segment as against around 10% earlier, and are looking at doubling our revenues in this segment in the next 2 years. Coming now to the third pillar, that of augmenting portfolio across segments. Here, all 3 regional rice variants are focused. Sona Masuri, Gobindobhog, and Kolam rice are now launched in the market. We have received positive feedback from our customers, and we are looking forward to this very exciting growth journey. Regional rice is deep-rooted in culture and traditions, and consumers have very high emotional values attached to it. India Gate being a brand which connects with consumers at an emotional level, is extremely well-positioned to take on this journey. With that, I come to the end of my remarks, and I will now hand it over to Ashish, who will take us through the financial performance. Thanks, Ayush. I will now take you through the performance for the quarter ended December 31, 2022. All figures mentioned by me would refer to the consolidated financials of KRBL. Total income for the quarter was at INR 1,554 crores, a growth of 33% over the corresponding quarter last year. Gross profit of the company increased by 82% and EBITDA and profit after tax by 141% and 180% respectively. The company recorded highest ever domestic revenue and total revenue during the quarter. Revenues from operations grew by 33%, led by both domestic and export sales, which grew by 32% and 38% against Q3 FY22. Domestic sales, excluding power, clocked INR 998 crores on account of higher retail volume, higher HoReCa volume post GST rationalization on bulk packs, and higher realization as Ayush just explained. Basmati rice realization increased by 31% over Q3 FY22. Higher realization was recorded across both domestic and export segments. Gross margin improved to 29.3%, an improvement of 800 basis points over corresponding quarter last year, led by improvement in realization, which was slightly offset by increase in input costs. Gross margin, however, fell by 535 basis points from 34.6% in Q2 FY23 on account of change in product sales mix and higher input costs. EBITDA margin for the quarter was at 19% as against almost 11% on account of better gross margin, partially offset again by increase in other costs. KRBL finance costs continued to decline. They were at INR 3.5 crores as against INR 4.2 crores in the corresponding quarter, as our reliance on borrowings continues to reduce year-on-year. The company's PBT margin also improved to 17.7% as against 8.6%, while PAT margin was at 13.2% as against 6.3%. Now I will discuss nine-month performance. Total income for the period stood at INR 4,083 crores, marking a growth of 27% against the same period last year. Gross profit of the company increased by almost 50%, and EBITDA and PAT by 58% and 66% respectively. Revenue from operations grew at 27%, led by both export and domestic sales, which grew on a year-on-year basis by 37% and 22% respectively. I will now share some inventory highlights. Total inventory of the company as of December 31, 2022, was at INR 4,435 crores, comprising INR 2,252 crores of paddy and INR 2,018 crores of rice. These two numbers were at INR 1,359 crores and INR 1,660 crores respectively as of December 21. In volume terms, paddy stocks were at approximately 577,000 tons and rice at approximately 363,000 tons. These numbers were 398,000 tons and 340,000 tons respectively as of December 21. Inventory, as Anilji explained, is higher primarily on account of our expectation of higher demand and because of aging requirements. That brings me to an end of my prepared remarks. I will now like to hand over to the moderator for opening the Q&A session. I will just like to mention that as the ED matter is sub judice, we will not be in a position to respond to queries on this matter. So over to the moderator now. Thank you very much. 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, we will wait for a moment while the question queue assembles. Reminder to the participants, anyone who wishes to ask a question may press star and one. The first question is from the line of Anand Venugopal from VMSBL Capital. Please go ahead. Yeah. Thanks for the opportunity. What I wanted to know is how much percentage of the global rice production does Pakistan make up? With the economic issues going on in Pakistan, have we seen any supply disruptions occurring? If so, what will be the price impact on Basmati rice as such? Share of Pakistan in the overall. The share of Pakistan in the global trade is just 600,000 tons, whereas the total crop size is just 850,000 tons. 350 is consumed domestically, 250, and 500 to 550 is the export demand. As far as these quantities are concerned, they got affected this year due to floods in Sindh area. Sindh area, they grow a particular variety like IR6 and a part of Super, which is used for mixing along with the Basmati rice produced in Punjab area. That also is produced to the tune of about 300,000 ton, 250 to 300,000 ton, which got totally 100% got damaged due to floods in Sindh area. As I told you in my remarks, that this was the first year in the history of 40, 50 years since our competition with Pakistan, that their prices were $100 higher over the Indian prices. That was one of the reason that the Indian prices also got quite high, and the acceptability of the Indian rice was higher by $200, $300 in certain markets due to Pakistan offering as much half prices. Okay, got it. All good. Thanks. Thank you. The next question is from the line of Himanshu Upadhyay from o3 Capital. Please go ahead. Yeah, hi. Good afternoon, and congrats on good set of numbers. I have two questions. One is on the exports to Saudi. This issue with the distribution, and we have been trying to search for this HoReCa distributor for quite some time. Why is it taking so much time? Because we already have a retail distributor. Cannot he be the same for HoReCa also? What are the thoughts, just some of your ideas, if you can share with us. Yeah. See, as far as the current distributor is concerned, it took us almost nine months to one year to locate this distributor. The biggest problem in Saudi is that everybody wants credit, and we are not in a position or there is no culture in KRBL to provide credit. So till the time we get a distributor who is agreeing to our terms and condition, it might take another three months, four months. That is not important, but terms are more important, and I hope it will take another two months, three months. After Ramadan, I am quite sure that we will be able to finalize. We have already shortlisted two, three, and we are going to finalize one of them in very short period. The second question was again related to exports. Are we seeing people moving for lesser volumes and more orders because the prices of rice have increased quite significantly? The incremental orders, what we are getting, are they of large volume only for exports, or are you seeing that people are trying to get lower volume orders also? Just some spot on that. Let me tell you. Normally, Basmati rice, whatever it is consumed in Middle East especially, is an aged rice. What is happening, particularly in Saudi Arabia, most of the rice it is being aged over there also by storing the rice for 7 months, 8 months, 9 months. This year there were stocks in Saudi Arabia for which they were holding for the sale of Ramadan. People in the beginning, when the prices were low in India, had concluded some contracts over there. Those shipments are going regularly and people are into trouble since the prices are low of that time. All the new prices are quite high because all those old contracts have been finalized. Now the new contracts are higher by $250-$300. Okay. One more thing. For last 2 years, the Pusa Institute is trying to give different varieties of Basmati, which are more infection-resistant or pest-resistant, so that low agrochemicals. How successful are those varieties and how large has the cultivation come in FY 2023, and what are our expectations for the new season, which will start happening from, let's say, June, July of sowing of that seeds. All the three, four varieties are super excellent. It has been accepted by the trade. We had made trial shipments also, trial milling also. Everything went very well. This year though I can't say because 2023 crop will also have a very limited quantity, but 2024 crop will have sufficient of those varieties, which is known as pesticide-free. It is not a disease or anything. It's a pesticide-free, resistance-free commodity, and that will help us to capture the European market, American market, where the pesticide issue has been come in a big way. Normally in every speech we say that it is nothing but a non-tariff barrier for which we accepted the challenges and we are ready for that, but it will be in 2024. Okay. Lastly, the CapEx on the three facilities of which we were going to do besides the Basmati, the Gujarat and all these three facilities, what has been done and are we expecting the two facilities to start in FY 2024? Yeah. The total CapEx that we had indicated across the three plants was around INR 150 crores. Out of which one plant which is in Gujarat, we are expecting production to begin in April. You would find that number getting capitalized maybe by next quarter. For our second plant, which is in Karnataka, the land has been acquired. The various other formalities are currently underway. The third plant, which is in MP, we are looking for the right piece of land there. Overall, you can expect this CapEx to be spread between the next financial year and the following one. Okay, thank you. I will join back in the queue. Thank you. The next question is from the line of Amit Doshi from Care PMS. Please go ahead. Yeah. Sir, I have questions regarding the procurement. You mentioned that we procure around 40% plus higher, and if I read it correctly, the prices of last paddy, this paddy is higher by around 15%-20%. I am not able to tie up the figures which is mentioned in the presentation of December 2021, which is around INR 3,100 crore, and current inventory of around INR 4,400 crore. Can you please slightly clarify on that? See, I think Ashish will tell you the numbers exactly, but if you take the average, and see, we started buying the paddies right from September 10, 12 when the new crop started coming, and they were at quite low prices. If you take our average price of the whole season of 7 lakh tons which we procured this year, we are very, very at a comfortable level and at a very, very competitive price. As far as numbers are concerned, Ashish, you can tell that. Yeah. So the average price of Basmati paddy procurement vis-a-vis last year is 15% higher. Correct? Was that your question? Yeah. No. Even if I count 15% higher, so this INR 3,100 crore of inventory, which is mentioned, so it turns around, say, for example, if I have to compare on the volume terms, the value comes around INR 3,600 crore. The current inventory mentioned is INR 4,400 crore. Anilji mentioned in the opening remark that we procured, in terms of volume, some 40% plus higher compared to last year. If it has been 40% plus on the volume front, then the figure should have been far higher than INR 4,400 crore, or I am missing something. That is what I wanted to understand. You must be telling the closing stock. Yeah the trade value. Yeah. If you want to take this offline, I am fine. I was just a bit confused on the numbers. So telling the closing stock. Yeah. See, I can share the numbers in terms of our purchases, and if there is still a query, we can take it offline. So in the last season, which is 2021-2022, we had procured about 520,000 tons of Basmati paddy. As against that, we procured roughly 45%-47% higher this season. Right? So that combined with 15% higher rate will give you the number. That is number one. Number two, you would notice in our deck that our rice procurement is also higher this season, and again at a higher rate. So if you put the two things together, that should get you close to the overall inventory number that we reported. The question is, what is the value of half a million ton last year, and what is the value of 700,000 ton this year? Average. Average. No, value. Total value. Total, yeah. That number is given. I can share that info. Okay. Yeah. That should be 55% over year to last year. Okay. Does that answer your question? Yes. I think broadly, I will just figure out the workings. If I don't, then I will touch base. The second question is this excellent growth of the domestic sales. Is it anything related to this typically in the Indian households, there is this new season rice which comes up. Is there some sort of a seasonal factor attached to it pursuant to which there is a higher domestic sales this year around, apart from HoReCa growth, which you have already shared? No, there isn't. That Bharti that you are referring to happens only in Gujarat, and the trend of this buying behavior has also diminished over the last decade. It's a very small portion of the overall industry, I would say, that trend of Bharti that you are referring to, but our sales is not a representation of that behavior. Okay. You mentioned domestic growth grew by 9% volume wise. Is that correct? No. Consumer pack business grew by 9% volume wise. Okay. Can you share overall volume growth? Just a second. I will give you the number. Quarter-on-quarter or? Quarter-on-quarter. Overall branded volume growth in the quarter, this is on a year-on-year basis, was 12%. Okay, 12% volume growth. This you are referring to overall, right? Or only domestic? Domestic. No, this is domestic branded Basmati. Domestic branded Basmati. And export? Export overall growth on a year-on-year basis in branded was 41%. 41%. Okay. Volume growth, year-on-year, both figures. Okay, fine. Both are year-on-year Basmati. Right. This export figure, which has come significantly higher, what would the contribution by other than Middle East? We believe, of course, Middle East or Saudi is one of our great contributors, but any specific or significant growth other than Middle East lying there? Actually, we are exporting to practically more than 50 destinations. Africa definitely cannot be compared with the countries like U.S.A., Europe, Australia, or Middle East. African continent is comparatively little weaker. But as far as other countries are concerned, because we are into branded sale, we don't make a single export in a private label. So our prices are more or less, depending on the freight and other expenses, they are the same throughout the world. Okay. Sir, you mentioned that once the procurement season was over, broadly the data indicates that production, there is no significant loss because of the unseasonal rains, et cetera. Now, of late, after the procurement was completed way ahead of time, 15 December, which you mentioned, post that, the paddy prices were down again, which had shot up to 40% plus? Paddy prices are not down, but definitely last 1 week, 10 days, rice prices have little bit come down. But now this is going to remain like this, like a rollercoaster, because it will all depend upon the demand from the importer. It will all depend upon the demand from the importer because everybody could assess that the crop size is lesser. There are various other reasons that the prices are going high. That has been become now in public domain and transparent that what is the actual position. So people, those who have purchased the quantities and are not able to sell, at many times, they are selling the cargo at a desperate, by losing INR 3, INR 4 a kilo. That is only the difference. Thank you. Mr. Doshi, may we request that you return to the question queue for follow-up questions. You can. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants on the conference, please limit your questions to two per participant. Should you have a follow-up question, we would request you to rejoin the question queue. The next question is from the line of Soman Chaudhary from Jetedge Securities. Please go ahead. Jetedge Securities. Good afternoon, sir, and thank you for the opportunity. Sir, as you have mentioned that Basmati rice prices have increased significantly during the quarter, but if we compare the rough realizations quarter-on-quarter, we do not see too much of an increase. Would it be correct to say that the prices increased towards the end of the quarter, and we will see a significant improvement in the current quarter? Actually, the prices started increasing from around 15th of September, the new crop started commencing. It finished this time around 15th of December. If we look at the graph this time, there was not a single day when the prices have reflected back or have come back or dropped. The prices went on one side. Any order which is to be shipped in the month of October or November, it cannot be from the new crop. It is all to be from the old crop and all are You will see in the first quarter. That I am telling you. That is why the reflection of the prices, quantity, everything, because of Ramadan, you will see in the fourth quarter. Okay. Realization should be better in this quarter than what we have seen in the third quarter. Definitely. Okay. And sir, one more question which I had was, sir, differential between the valuation of Basmati paddy and rice. This differential is almost 70%-80% currently, which used to be 35%-40% earlier. I just wanted to know how is that happening? Is it because you are buying rice also at a higher price, or what exactly creates this difference? Because I understand that in the process of dehusking, we lose about 30%-35%. So ideally, the differential should have been about 35%-40% only. Sorry, your question, could you repeat again? I'll try. If I look at, say, the second quarter inventory position, the volumes and valuation given, Basmati paddy value was at ₹32, whereas Basmati price valued was ₹56. Which is almost 80%. The rice valuation was almost 80% higher than the paddy valuation. Whereas we lose only about, say, 30%-35% in the process of dehusking. So how does the value of rice go up so much from the paddy? Not a mix. No. It is a different thing. No, paddy, generally, out of 100 kg of paddy, we get 63, 64 kg of rice. Okay, yes. Out of 64 kg of rice, 14 to 20 kg is broken and rest is the head rice. Okay. That is the way it is valued. In that case, the differential- If you divide 32 kg by 64. Yeah. If you divide 32 by 64. 50% that way. It will be about 45, sir. Huh? It will be about 45. That means the whole rice comes around 45, but the rice mix may be different, the value is different. We are buying a lot of head rice also. Okay. We are buying a lot of head rice from the market. It is at a different price. Okay. So currently you are buying more of Basmati rice also than what you used to do earlier? Yes, of course. Okay. Okay, fine. That is all from my side, sir. Thank you so much. Thank you. The next question is from the line of Chetan Doshi from Tulsi Capital. Please go ahead. Congratulations for the good set of numbers. I would like to know what is the sales value of the current inventory what we are carrying. You see, we generally say it is always at a cost, and the market value of what I have secured today- market value is, according to me, it is 15%-20% higher. Definitely, it is 20% higher. What is my realizable value? It is a different thing. It is a branded product. I cannot comment on that, what is the realizable value. That is much higher. But the market value- Absolutely. Can we consider that we are carrying our sales value product of more than INR 5,000 crores? More than that. Yeah, of course. We are INR 4,400 crore inventory. We are sitting on that, which has got a market value of about INR 5,000 crores. Okay. So another question is that what are our. We will be ending this year with record profits, so what are your plans to utilize that money from the cash flow, what we will be generating, and how you are going to reward the shareholders? That we will discuss in our board meeting. We will see something, whether dividend, more dividend to be paid or buyback to be done. We will discuss in the board meeting. In the past last 2 and a half years, it is the same answer which we are getting from the management, but see, your board is not coming to some common platform as to how we should reward the shareholders. No, we are giving a good dividend. Now we will look in the board meeting how we can do, looking at the current year profits. We are going to discuss in the board meeting and see how our investors are happy and more satisfied. Don't worry. Thank you.