Ladies and gentlemen, good day and welcome to the NOCIL Limited Q4 FY 2024 earnings conference call. 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 guarantee of future performance and involve risk and uncertainties that are difficult to predict. As a reminder, all participant line will be in 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. V.S. Anand, Managing Director of NOCIL Limited. Thank you, and over to you, sir.
Thank you. Good morning, and a very warm welcome to everyone present on the call. Along with me, I have Mr. P. Srinivasan, our Chief Financial Officer, and SGA, our investor relations advisors. Hope you all have received our investor presentation by now. For those who have not, you can view them on the stock exchanges and the company website. To start with, let me provide an overview of the company's performance for quarter four financial year 2024. During this period, revenue from operations amounted to INR 356 crore, representing a 5% growth sequentially. However, it's important to note that volume showed an impressive 12% increase in quarter four financial year 2024 compared to the preceding quarter. The domestic market continues to stay robust. However, there remains the challenge of aggressive dumping from China and other markets.
This has resulted in muted volume growth from the domestic market. We are maintaining a balanced approach by judiciously managing both price and volume to navigate these phases. As indicated in our previous call, our strategic initiatives and engagement with global strategic customers has started gaining traction. For financial year 2024, we have recorded a year-on-year volume growth of 9% in our export segment, despite the challenges posed by geopolitical tensions and fluctuating raw material prices. We are hopeful of building on this growth trajectory going forward. Commenting on the industry, let's take a look at that. As per market reports, the Indian tire industry is expected to grow in the mid-single digits in the current financial year on the back of a stable growth in the replacement segment and growing segment for OEMs in the passenger vehicle and two-wheeler segments.
The replacement market in the commercial vehicle sector is also expected to be on a positive trend with increasing infrastructure initiatives resuming post the elections. Tire exports have remained subdued since June 2022 and are expected to witness modest growth in the near term due to muted demand growth in key destinations such as the U.S. and Europe. We expect to see robust growth in the non-tire sector on account of our penetrated market presence in key sub-sectors like tire retreading and auto components. The increasing radialization of commercial vehicles and focus on sustainable tires augurs well for the tire retreading sector. As part of our strategic roadmap to continue to expand our market presence, all of you will be aware of our board approval for INR 250 crore investment at our Dahej site for further expansion of our rubber chemical capacities.
We have begun work on the same. Sustainability remains at the core of our business strategy. We have implemented several green initiatives, including the installation of solar panels at both our plants, sourcing of green energy, and cogeneration, which is expected to reduce our carbon footprint. I would also like to take this opportunity to thank our dedicated employees for their relentless efforts, hard work, and commitment. I also extend my gratitude to our customers, partners, and stakeholders for their continued trust and support. Looking ahead, we have a clear roadmap for sustained growth. We remain optimistic about the future, underpinned by strong market fundamentals and our strategic initiatives. That is it from my side for now. I will hand over to Mr. P. Srinivasan to take over to give you an update on the financial performance.
Thank you, Mr. Anand, and a good morning to everyone. Now, let's run through the consolidated financial highlights. Volumes for Q4 FY 2024 is at 138 index parameters, taking a base of Q1 FY 2020 at 100. On the revenue parameters, the net revenue from operations for Q4 FY 2024 stood at INR 357 crore from INR 341 crore in Q3 FY 2024, a growth of 5%. Selling price has dropped by 6.5% on a QoQ basis. Volumes for Q4 FY 2024 have shown a healthy growth of 12% on a QoQ basis. Net revenue from operations for FY 2024 stood at the whole year at INR 1,445 crore as against INR 1,617 crore in FY 2023. Coming to the operating EBITDA parameters. The operating EBITDA parameters for Q4 FY 2024 stood at INR 45 crore as against INR 49 crore in Q3 FY 2024.
EBITDA margin for Q4 FY 2024 stood at 12.5% as compared to 14.3% in Q3 FY 2024. Operating EBITDA for FY 2024 for the whole year stood at INR 195 crore as against INR 253 crore in FY 2023. EBITDA margins for FY 2024 stood at 13.5% as compared to 15.7% in FY 2023, a drop of 220 basis points. Coming to the profit before tax parameters. Profit before tax for Q4 FY 2024 stood at INR 56 crore as compared to INR 41 crore in Q3 FY 2024.
PBT for the whole year FY 2024, stood at INR 180 crore as compared to INR 202 crore in FY 2023. The non-operating other income includes some profit on sale of fixed assets, about INR 17.5 crore - INR 18 crore. Coming to profit on tax, the PAT, as we call, for Q4 FY 2024 stood at INR 42 crore as compared to INR 30 crore in Q3 FY 2024. PAT for FY 2024 stood at INR 133 crore as compared to INR 149 crore for the whole year FY 2023. With this, we would like to open the floor for question and answers.
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 touchtone 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. The first question is from the line of Nirav Jimudia from Anvil Research. Please go ahead.
Yeah. Good morning, sir, and thanks for the opportunity. Sir, I have two questions. Sir, first on the volume growth of 12%, which we have clocked in Q4 on a sequential basis. If you can just break it down between how much was the growth in the export market and the domestic market, A, and B, was there any growth in the specialty volumes this quarter, or the growth predominantly come from our traditional products, which are accelerators and antioxidants? And C, does this improvement in volumes includes the volumes from our existing customers taking higher volumes at their existing locations or the existing customers taking volumes at the newer plant locations?
On the volume parameters, Nirav, both domestic and exports have shown a growth of double digit. In domestic, we are almost the higher single digits and exports on a higher double digit, almost little on the higher side. So average showing 12%.
And the spread on the specialty, which growth was there?
The specialty, we are not seeing any significantly. Some improvement is seen in certain products, not significant in volume terms, but some improvement is there on sequential basis.
Coming to your third part on where this growth is coming from, Nirav, this is also from existing customers as well as new customers. So it is not entirely from existing.
Sir, is it possible to give some sort of understanding here that, let us say out of this volume growth, predominantly how much of this would be coming from the newer customers or the existing customers taking higher volumes, some sort of understanding over here. Is the share higher from the newer customers, or the share is higher from the existing customers taking higher volumes?
Sir, I might be able to put my finger on a specific number if I split the growth, but I would say it is kind of more or less uniformly distributed. Yeah.
Correct. Sir, second question is, let us say if we sit on an indexation level of 100, how is your confidence currently in terms of the additional volumes placing to the customers in terms of our confidence before 8- 12 months and today, given the kind of customer interactions and engagements which we have entered over, and also in view of the current challenging pricing scenario. So if you can just give your confidence level before 8- 12 months, and currently on an indexation of 100, that would be helpful.
Yeah. I think clearly confidence levels are, compared to 12 months before to now, is I would say more higher on the positive trajectory. In terms of, again, looking ahead for the next 12 months, I think some of the [LVP] just discussed some of the businesses were just new customers also added just in the last few months. Obviously they will continue to add up, along with newer additions coming in in the next 9 - 12 months. So I see the growth trajectory to continue, Nirav.
Correct. Sir, is it possible to take Q4 FY 2024 volumes as a base number for FY 2025, and the volume buildup could happen relatively on a quarter-on-quarter basis where our Q4 volumes now become a base and the volume buildups should start happening over that?
Yes, Nirav. Should happen over that. Yeah.
Yeah. Sir, last bit from my side before I join back. Sir, when we compare FY 2022 and FY 2024 in terms of our volumes, and if we exclude those specialty volumes, which have been, I think, showing some degrowth. How much degrowth have happened on those specialty volumes between these two periods? Along with, if you can just help us explain how much is the growth in the volumes ex those specialty volumes.
Nirav, I would prefer to answer in a different sense. What you are trying to understand is a portion of the specialty which we were discussing in the last few calls about the latex market.
Correct.
What you are looking at the latex degrowth per se. You can say if it was index of 100 in FY 2022, today it is probably around 50-60. So there is a 40% de-growth. But what is heartening is on the other products, we have actually started showing signs of growth in other regular products and other specialties as well. It gets, in a way, negative.
Correct. Do you feel that these specialty volumes could be recouped to some extent in FY 2025, given some improvement in the Malaysian market, which we have observed over the last month?
Yeah, definitely. We are already seeing some corrections emerging that the bottommost period is over. We have actually started consolidating something, and as time goes along, we expect to show some improvements. We cannot expect to recover back to 100. The 60 will go gradually to 65, thereabout, something like that.
That is positive. There seems a mild recovery one can say so. I am sure it is coming back slowly.
Got it, sir. Thank you so much, sir, and wish you all the best.
Thank you.
Thank you. The next question is from the line of Aditya Khetan from SMIFS Institutional Equities. Please go ahead.
Yeah. Thank you, sir, for the opportunity, and good morning. Sir, my first question is broad idea onto the company. Sir, when we look at the last two years, sir, we are standing at flattish volumes. When we also look at the EBITDA and gross per kilo basis, we are nearly standing at multi-year lows. There is also a risk of dumping from China, which is going on, which is not expected to subside in the near term also. Sir, what is our sense, have things bottomed out from here or we see further pain from going right from here? If our outlook is bullish, what is making us that bullish outlook?
Yeah. I think first part, I see that probably it has bottomed out. That's the sense we get. On the other hand, what is it that keeps us on a positive outlook looking ahead is also the fact that quite a few of our strategic engagements also with customers internationally have, as we said earlier, come to fruition, and there is positive traction there. That is at least also on the positive trend with the new businesses coming in. We see that with the margin situation bottoming out, this should hold us in good stead.
Sir, any idea onto the Chinese dumping when we are expecting that to subside or it will continue at least for the next one to two years?
Yeah. I think it is also a factor of how much the domestic consumption in China picks up, and I think until then they are going to be looking at markets to push their products or dump their products. And I think it will stay on unless domestic volumes pick up.
Okay. Sir, in this fiscal FY 2024, sir, we are nearly standing at 65% utilization. So when this capacity will reach peak utilization, and what is the rationale for setting up a new capacity when we are already sitting at nearly 60%-65% only? Any sense, like how that capacity will be filled?
Yeah. While we have always mentioned that 65%, the number that you mentioned is an overall number. While at an individual product level, we could be at different stages, and some could be at 95% or 100%, and then we do the usual de-bottlenecking and stretch it to the maximum possible. And then we start planning for the specific product. So the product that we are planning are more the ones that are already at peak capacity, and we see that we will need to invest for further growth opportunities that we have.
Any breakups, sir, if you can give in terms of basket, like whether it is Pilcure or Pilflex, like NS, TBBS, MBT, any sort of like you can say, "So this product is at peak and this is underutilized currently"?
We will communicate this part, Aditya, at the appropriate time, not today.
Sure, sir. Thank you, sir. That's it from my side.
Thank you.
Thank you. The next question is from the line of Rohit Nagraj from Centrum Broking Limited. Please go ahead.
Yeah. Thanks for the opportunity. Sir, first question is on volume growth. You spelled out the exports volume growth was 9% in FY 2024, if I am not wrong. What was the total volume growth in FY 2024? If you can split up domestic and exports. I mean, exports, you have given the number. What were the primary areas where we have seen this volume growth across different sub-segments? Just a broader perspective would be helpful. Thank you.
For FY 2024, the overall volume growth is about 2%. I think the domestic was flattish.
Okay.
Exports is 9%. I think we have already addressed the question of the other products in exports, the latex market, where this year we have seen some marginal improvement, not great, from the FY 2023 numbers. In that sense, the growth is more out of non-latex things.
Sure. Got that. Sir, second question is, in the recent AGM for one of the Chinese large player, they have indicated that the top three players are further adding capacities in accelerator as well as antioxidants. We are also going ahead with this INR 250 crore expansion. How are we looking at the market on a broader basis? Because obviously there is certainly overcapacity in China. So effectively, what markets are we targeting once we do this de-bottlenecking and expansion? Thank you.
I think the addition of capacities by Chinese players is not something that is new. I think it has been happening over the years. But our clear value proposition, which our customers see from somebody like a supplier of NOCIL, is one is the China de-risking strategy, which is China Plus One, and they are looking at long-term supplier reliability. For some of the products outside of China, there are very other few players who are really kind of making some of these products. There is one positive trend on that side. Also when we look at expansions, that also supports it further, in terms of being able to support the growth of the customer. I think this also will contribute in terms of adding to the growth.
Sure. Fair enough. Sir, third question, if I can squeeze in. We have been saying that we would like to diversify into other segments, but again, the expansion is into rubber chemicals only. Any thought process on this? You have been saying that it is still in the wraps, we are still working on it, but any timeline that you would like to give that maybe in the next two quarters or one year, we will have something to add on in our product basket and based on which there could be some CapEx which may happen. Thank you.
Yeah. Like we also mentioned, while our growth plans in the flagship rubber chemical business will continue, it will not be affected in any way by what we do on the diversification side. That work is also continuing and it is underway. Very difficult, Rohit, to put a finger on will this happen in one quarter, two quarters or three quarters, because they are all at different stages of discussions, and unless we get some real conformity to this, we will not be able to share an update. I am sure you will understand, but work is underway. Yeah. I just would like to leave it at that.
Fair enough, sir. Thanks a lot for answering all the questions, and all the best. Thank you.
Thank you.
Thank you. Ladies and gentlemen, you may press star and one to ask a question. The next question is from the line of Aryan Sharma from B&K Securities. Please go ahead.
Yes. Hi, sir. Sir, about the capacity expansion, I just had one question regarding whether you could segregate the product categories in which we are adding more capacities, whether it is more in accelerators or antioxidants or how much in specialty, so if you could segregate that.
What we can communicate here today is it is in the rubber chemical segment, in the existing rubber chemical segment, but we cannot give you the product mix for whatever business confidentiality purpose. We will disclose at an appropriate time.
Okay, sir, I understand. Sir, we see that the volumes on a YoY basis has increased approximately by 1% on an index basis, on a YoY basis, and revenues are down by 9% YoY. So approximately, realizations have dropped by 10%. My question is whether you could segregate the realization drop between the pricing pressure from competition and how much was from the drop in RM prices, because what I believe is you pass on the RM price drop as well to the customers.
Gentleman, are you referring to the quarter four or annual number?
Quarter four only, sir. Quarter four.
Quarter four. Okay. So you are looking at a 1% growth. Yes, you are right. I would say, we can say more or less it is more or less equal distribution between domestic and exports. Not materially wide variations. Yes, there is a price drop is there. We are not disputing that, but at the same time, there is also corresponding drop in raw materials also.
Yeah.
The valuation part is where we may, if you're looking at a path that may impact us in the profitability parameters.
Okay, sir. Sir, could you give some guidance about what we're expecting in FY 2025 in revenue terms and EBITDA margin terms?
Sorry, what was the last part? I got you spoke about guidance, but what was the—
Yes, sir. Sir, guidance about FY 2025 and FY 2026, how much we're expecting in revenue and EBITDA margins?
Like I mentioned, we see that volume to grow herein—
The base of FY 2024 has been taken. I think we are going to grow from here. Definitely, it will have an impact on the pricing. As far as the EBITDA margin, it is an ongoing thing because we hope these conditions stabilize. We hope that Chinese domestic parameters also improve, and if once those things start improving, we are seeing some stabilization factor coming in. I think the recession which has extended for two years may taper off as we go along. That is what our belief is.
Okay. Sir, one final question, if I can put in. Sir, on the expansion part also, like the previous participants have also mentioned that the Chinese players are adding capacity. We also are adding capacity. So currently we already are in an oversupply situation in the rubber chemicals market. Could you guide me as to how much potential demand you are foreseeing in the future that led to us going for this capacity building?
Yes. The market growth in terms of the specific products that we are looking at continues to be on a positive trend. There are markets where we can continue to grow with these products, not only a bit more on the domestic, but also in the international markets. While, like I just answered one of the earlier questions with regard to capacities also being there in China, for most products that has always been the case. But we see that customers would like to also participate with non-Chinese sources, and that gives us quite a bit of traction.
Okay. Sir, final question. Why were the other expenses higher this quarter? On a YoY basis, as a percent of sales, it is higher by 140 basis points. You mentioned in power and fuel costs, the power and fuel costs were supposed to come down because of the inventory we are going with for demand match. So power and fuel costs were supposed to come down. Could you just guide us why other expenses were higher?
Other expenses are not high. It's in the lower side, boss.
On a YoY basis, sir, when we compare with the sales on a percentage basis, it is higher by 140 basis points.
No. Are you looking at it as a percentage of turnover, or are you looking at an absolute number? If you look at the absolute number, other expenditures for last year, March 2023 was INR 90 crore. This year it is INR 87.6 crore. It's actually showing a reduction.
As a percentage of revenue, sir?
As a percentage of revenue. Because the revenue had a higher pricing parameter last year, so that we know that. So revenue parameters are down in selling prices. Obviously, if you express as a percentage of reduced revenue price, it will show a marginal increase in the formulation.
But on a physical basis, it has come down.
Okay. Got it, sir. Thank you.
Thank you. The next question is from the line of Nitesh D from Dolat Capital. Please go ahead.
Yeah. Good morning, team. I am sorry, I joined the call a little late, so I am sorry if I am repeating. My question is on the key raw material prices. Aniline, if you see, the prices have further moved up in the last couple of months, and so have MIBK prices. Do we see this margin pressure persisting in the near term, or have we also taken price increases to be able to offset the RM pressure there?
Yeah. Typically, with movement in raw material prices, also the finished good prices tend to move, and it also plays on the supply-demand situation. Yeah, you are right, aniline prices did move up, but it has kind of been a bit up and down in the last few weeks due to different macro environmental reasons. But we see that with the prices moving up, we will also be able to realize with the cost moving up, the prices also can be realized.
Okay. Given the competition and what you spoke about and even your Chinese competitors mentioning that competition even within the Chinese rubber chemicals industry has been intensifying and there has been pressure on selling prices. Do we see any fundamental or structural change to the sustainable spreads? Is it going to settle lower than where it used to be historically? How do you see this shaping up?
Yeah. This is something, one of the earlier questions, and we said we get the sense that it has kind of bottomed out and should not go further below this.
Should not move further down, but coming back to the normal spreads that we used to do historically, do you see that happening in the near term or is it likely to sustain maybe at these levels only?
The possibility is there to come back to normalcy. Yeah.
All right. Just one more question. So on the other income in Q4, that's at INR 25 crore, which appear significantly higher. So what does it pertain to?
I think we explained in the investor presentation that it includes a component of INR 18 crore from a profit on sale of fixed assets.
All right. Thank you so much.
Thank you. The next question is from the line of Parth Mehta from Vallum Capital. Please go ahead.
Yeah. Hi, sir. Just a bookkeeping question. Wanted to know what is the contribution from exports in Q4 and what would be for the same quarter last year. Thank you.
Contribution of sorry, your audio was not clear. Was it contribution of exports to the overall?
Yes.
Around 30% - 32%. Yeah.
And for the same quarter last year?
For the last year, I think at least for the year-on-year, for the full year, I would say maybe 1 percentage would have been lower than the previous year. Yeah.
Okay. So around last year, same quarter should be around 30%- 31%?
No, I am not talking about the quarter, sir. I was referring to the full year as a percentage. Yeah.
Okay. If you could give the quarter, it would be great.
Mr. Parth, does that answer your question?
Sorry, your audio was not clear. Sorry, did it answer your question? Sorry.
Yes. If it is possible to give for the quarter, that would be fine.
What exactly you are looking at, [Parth]?
No, the same number for the quarter.
Yeah. I think what we have given is for the year, but what is it for the quarter in terms of exports and domestic?
Initially, it's about 33%.
For the quarter?
Yeah.
33%. Okay.
Yeah.
Okay, thanks.
Thank you. A reminder to all the participants that you may press star and one to ask a question. The next question is from the line of Aditya Khetan from SMIFS Institutional Equities. Please go ahead.
Yeah. Thank you, sir, for the follow-up. Sir, the existing capacity, sir, when it is expected to reach peak utilization levels? If any guidance, sir, we can give.
We did have in the past a certain timeline, but I think given the uncertain external environment, while we see the ramp up to happen quarter-to-quarter, difficult to put a finger on a specific timeline, Aditya.
Okay. Sir, onto the export market, sir, when we are hearing commentaries from other chemical players, they are indicating that the exports market is still weak. And Europe and U.S., so materially there has been not an uptake. But, sir, our volumes, like it is showing a good growth into the exports market. So what is driving our growth?
Yeah. So, like I mentioned a little while earlier, you are right about the overall environment not being that conducive, but still with the work that has gone on in the last few months in terms of engagement with our strategic customers, these are showing results and that is what we see as gaining traction.
Okay. And sir, this new capacity expansion which we have outlined, so when this is expected to get commercialized?
Actually, we are set 2.5 years we will be commissioning it, and it depends on the approvals post thereafter from the customers. While we expect our endeavors to complete faster, so maybe in 2026- 2027, some part of the last second half or later half, something like that, we can expect commercials.
Okay. And sir, apart from the existing business, is there any new expansion into new chemistries onto the pipeline right now which we might take up say in the next two to three years?
Yes. We are looking at it, again, alluding to the earlier question. Work is under progress on that front, Aditya.
Okay. Thank you.
Thank you.
Thank you. Before we take the next question, a reminder to all the participants that you may press star and one to ask a question. The next question is from the line of Nirav Jimudia from Anvil Research. Please go ahead.
Yeah. Thanks for the opportunity again. Sir, my question is on the operating leverage which we have achieved in Q4 of FY 2024. If we see on a per kg basis, our gross margins would have fallen, but some portion of those lost gross margins were also recouped in terms of the benefits of operating leverage. One was visible in the employee cost. Apart from the employee cost, where was the benefit coming from? It was predominantly from the power side where our power cost has come down or was it because of some other factors, because of which we have seen the conversion cost on a per kg basis coming down?
Sir, you may recall also, Nirav, in one of the last call we were talking about operational excellence initiatives in our manufacturing. This is coming from our utilities, benefits that we have looked at efficiencies and areas to improve. That is actually showing up in the other expenses coming down.
Sir, if we see our utility cost at the start of the year, probably when we started this financial year and how we ended this financial year, how much of the utility cost would have come down, in some percentage terms if you can just highlight on those?
While it is a combination of also certain price benefits on utility per unit basis, but also efficiency measures are coming in. I would say roughly about, just working out the percentage. Just one sec. Around 15%-20%.
Sir, is our power cost also contain some portion of fixed component and also whereby when we will start ramping up the volumes, that cost would remain fixed at that point of time and the operating leverage benefit could accrue to us towards that portion of fixed power cost also?
There is expected to be benefit because we are also working on power cogeneration. So that also we are going to add to it as we keep increasing our volumes.
Sir, last from my side is, on the freight cost, I think what we have seen over last few weeks and months is that the freight costs have gone up substantially, even the container shortages have been prevalent. So, is it affecting us or whether our contracts are built up in lieu of those increased freight costs where it won't impact our contribution margins, some sort of thought process on the same would be helpful, sir.
Yeah. Also, I think it's not very significant, and we have also been able to discuss with customers on how this can be mitigated. So that's also kind of played in. We don't see any significant impact on account of that.
Thank you for this opportunity, and we wish you the best.
Thank you. A reminder to all the participants that you may press star and one to ask a question. The next question is from the line of Rohit Nagraj from Centrum Broking Limited. Please ask.
Yeah. Thanks for the follow-up, sir. My question is on the industry front in terms of the molecules that are being used in accelerators or antioxidants. Correct me if I'm wrong. These molecules have been in the industry since past maybe 50- 60 years. Have there not been any new molecules which are being developed by the industry over the last few years? Or are there any areas where such an R&D is going on to replace the existing set of molecules with maybe better characteristic molecules? Just your broader thought process on this. Thank you.
Yes. Thanks, Rohit. Yeah, you're absolutely right. I think some of these molecules are there for the last 50 - 60 years. I think partially we can also say that these have been real strong workhorses, that it's also been very challenging to get better ones than this from a performance point of view. There have been those small tweaks over the years in terms of restricted substances where you've got changes in the molecules that have happened, but not fundamental changes. Also, the other part on account of that is that it's a lot of safety related and a lot of testing and years of application testing before any molecule or product sees light of the day, and then the ramp-up on production capacity. So it's a pretty long roadway, which is also, I feel, one of the other contributing factors. But there is scope.
Coming to the latter part of what you said, there is scope in terms of spaces of innovation. We are working on those spaces where we can add value to our customers. But it has its own runway, like I just mentioned, about testing, application, safety, and I think it's all related to safety, so everybody wants to be very sure. Yeah.
Thanks. Second question is in terms of the operational efficiencies through improvement in processes. Generally speaking, it's an ongoing exercise. But given that we have been doing it since a fairly long time, most of the benefits are now in place, and incrementally, there will be only marginal benefits which will come from any such fees. Just your perspective on the same.
I think over the years, like you said, I won't put my finger and say that there will only be marginal impact from here on, because we continue to keep working on it. I'm always positive that we will find more and more areas in that space. Yeah. So I'd never say that we have reached a certain plateau.
Fair enough. Thanks a lot, and best of luck.
Thank you. Ladies and gentlemen, you may press star and one to ask a question. As there are no further questions, I would now like to hand the conference over to Mr. V.S. Anand for closing comments.
Thank you. Thank you very much. Thank you for all your questions. I take this opportunity to thank everyone for taking the valuable time to join this call. I hope we have been able to address all your queries. For any further information, kindly get in touch with me or Strategic Growth Advisors, our investor relation advisors. Thank you once again, and have a nice day.
On behalf of NOCIL Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.