Q2 19/20

Nov 14, 2019

Ladies and gentlemen, good day, and welcome to the Pitrolite Industries Q2 FY 'twenty Earnings Conference Call hosted by Amdet Capital. As a reminder, all participant lines will be in listen only mode. And there will be an opportunity for you to ask questions after the presentation concludes. Please note that this conference is being recorded. I now hand the conference over to mister Tatik Maheshwari from Ambit Capital. Thank you, and over to you, mister Maheshwari. Thank you, Karuna. Good afternoon, everyone. On the behalf of Amrut Albert Capital, I would like to welcome you to the Pitlight Industries 2Q FY twenty earnings call. From the moment, we have with us mister Apoorva Parekh. We'll start with the initial comments on the results, and later, we'll open the lines for q and a. Thank you, and over to you, sir. Thank you, Prateek. Good afternoon, everyone. This quarter has seen moderation of top line growth as a result of the challenging market conditions, liquidity crunch as well as prolonged monsoon and attendant disruption. While gross margins have improved substantially due to softer input costs, higher advertising and sales promotion cost due to phasing in this quarter saw EBITDA at the same level as last year. For the first half, consolidated net sales grew at 7%, while EBITDA has grown at 8% and profit after tax, excluding exceptional items, by 36%. While we expect demand conditions to improve in the New Year, we remain focused on driving volume growth enabled by investments in brand building, capability and growth in small towns in rural India. I will begin with a summary of the financial performance for the quarter and half year ended September 2019 for stand alone business. Net sales grew by 4% over the same quarter last year with underlying sales volume and mix growth of 1%. This was driven by 13% growth in sales volume and mix of Industrial Products and decline of 1% in sales volume and mix of Consumer and Baja products. Net sales for the half year grew by 7% over the same period. Gross margin improved by 4% over the same quarter last year and by 2% over the preceding quarter. The current spot price of our major raw material that is Denial Acetate Monomers is around $890 as compared to quarter two consumption cost of around $9.00 $1 EBITDA before nonoperating income grew by 1% over the same quarter last year on account of higher ANSP spend due to phasing in this quarter. EBITDA growth excluding ANSP spend in both quarters would be around 11%. EBITDA for half year grew by 9%. Profit after tax grew by 33% over the same quarter last year. Profit after tax grew by 49%, excluding exceptional items and dividend income from subsidiaries and effect of tax thereon in previous corresponding quarter. Effective tax rate for the quarter has reduced from 33% to 7.5% due to reduction in corporate tax rate and remeasurement of deferred tax liability. During the quarter, the company has decided to sell plant and machinery included in capital work in process pertaining to synthetic elastomer project and accordingly disclosed the same as asset held for sale at its fair value of INR38 crores after providing for impairment loss of INR22 crores as disclosed in exceptional items. Now I will move to a summary of the financial performance on consolidated business. Consolidated net sales grew by 3%. EBITDA before non operating income marginally declined by 0.6%. Profit after tax grew by 41% and excluding the exceptional item grew by 49%, mainly on account of reduction in tax rates by the government. Now I will talk briefly about the subsidiaries. The domestic subsidiaries' performance, particularly NINA, Percept and CP, continue to face a challenging market conditions in wake of economic slowdown in real estate, auto and engineering industry, resulting in adverse demand and liquidity conditions. This was further accentuated by prolonged monsoon in many regions. EBITDA growth in ICA is on account of improved margin due to scaled up local manufacturing and ForEx gains. In case of international subsidiaries, subsidiaries in Bangladesh, Sri Lanka and Thailand have reported good sales growth. EBITDA growth in Bangladesh subsidiary is lower than sales growth due to investment in new manufacturing facilities. Sajjatas, a division of TD Life and PalviTech Brazil reported sales and EBITDA growth for consecutive quarters mainly due to growth in key products and customers. The subsidiaries in Egypt reported decline in sales growth for the quarter due to competitive pressures and market conditions. We can now open up for the questions. Thank you. Thank you very much, sir. Ladies and gentlemen, we will now begin the question and answer session. The first question is from the line of Adnish Roy from Edelweiss. Please go ahead. Hi, Thanks. My first question is on the consumer bazaar volume growth domestic. So last three quarters, we have seen significant slowdown. So q four was 4%, then q 16%, then minus one. So my question is from q one to q two, why is there a marked deterioration? Because we have not seen the same level of deterioration in lot of the other consumer staple companies. So from plus six, you are down to minus one within a quarter. And do you see this kind of a slowdown continuing in q three also? Yes. I think we should not read too much into quarter to quarter. Also last year, we had impact of some price increases. Last year, so due to price increase last year, we had couple of price increases. So to that, to some extent, it distorts the growth rate from quarter to quarter. Going forward of the next two quarters, it's very difficult to predict how next one or two quarters looks like, but we believe that from next year, the growth condition should clearly improve. But it's difficult to predict for next one or two quarters. And so industry also would have seen similar dip. So is there any market share issue here? No. Industrial growth has very different dynamics because in our industrial product, for some of the products, half the sale is outside of India. Lot of this growth is driven by our pigment business, where we are gaining both in Indian market and export market, partially due to some business moving from China and also due to our focus on high performance pigments. So a lot of growth is of our one particular business out of our overall industrial business. Actually, my question was on consumer bazaar only. So Okay. If if your growth is minus one, would your peers or would your competitors also would have seen similar kind of a slowdown? Well, they we we believe that the market would have seen a similar slowdown in our core sectors. Yes. We do believe that. That is why Yes, sir. We've been seeing lot of the results in these cases being fairly good. So which sector is impacting the maximum in terms of slowdown? Is it furniture? Is it footwear? Or is it something We are seeing slowdown in construction related activities, interior decor, liquidity crunch impacts both the dealers and the consumer as well as construction related activities, which have been impacted. And also for some of our services business, which also service auto and engineering industry, there have also been impacted. But largely, the two biggest factors which are impacted for us are, you know, construction related activity and interior decor related activities. So doctor Fixit would have seen much bigger delta, right, in terms of growth? Yes. Doctor Fixit has seen a significant delta because it it is very largely dependent on construction and repair activities. Right, sir. My second question is on the phasing which you mentioned in terms of ad spend. So could you elaborate that? Yes. So what has happened during this quarter, I just wanted to exactly, during this quarter, our advertising and sales promotion spend is about 4.8% of sales. This is because we had two very significant new advertising campaign. One is a very called SoFa campaign and one is a new Favik Quick campaign. So both for making the film and releasing them. So our spend went up to as high as 4.8% as compared to our normalized annual spend of about 3.8% to 4%. Now last year, the opposite had happened. Last year, in this particular quarter, our spend was around 2.5%. In fact, 2.4%. So which was less than normal when the full year spend was about 3.6%. So as you see, last year compared to full year spend of 3.6, we were at 2.4%. And this year at our expected spend of 3.8% or so, in this quarter, we were at 4.8. So this is a significant delta of almost more than 200 basis point in ASP expenditure. Okay. Okay. So it's largely mainly largely due to timing impact. Then, you know, these are the ads which we release based on, you know, the timing and, you know, it it is not something which we may exactly face quarter to quarter. But for full year, we should build the 3.8 to four only for the full year? Something like that. Yes. Yes. And the last last question on last on our this has been an issue for multiple years. So now finally, it seems closure is happening. So my question is by when completion will happen? And is it a scrap sale? Because, obviously, the number 38 crores seems to be one tenth of the value which you have acquired. That is no. It is not one tenth of the value. That was a total investment that we had done, which included dismantling of the asset, moving the asset over an erection and buying the land and other things. So total expenditure included also our investment in land, building, the full plant and machinery, intellectual property, etcetera. Now what has happened, as you know, over last three, four years, most of the value of this has already been written off. Only value which was remaining, one is land and building, which is already put to use for export of some of our other products, adhesives and some of the other products. The remaining value is the plant and machinery, which was, you know, the remaining value was the fair market value was only about INR 60 crores. Now we have decided if we want to sell this plant and machinery in the best possible manner, you know, whatever is the the and and that our people are working on finding the best value for it. But at this point of time, we did a fresh valuation of this, and we were advised to take an impairment of 22 crores. So just to summarize, bulk of the value has been written off over last two to three years and the remaining value we will sell it based on the current fair market value, which is expected to be INR60 crores and hence we took an impairment of INR22 crores. The exact value of what we realized out of remaining 38 crores, we will know over next couple of quarters. So next couple of quarters, the sales will happen. And after that, basically, based on deal closures, the money will come. Right. Well, essentially, no further activity or investment has happened on this project the last many years, but the land that we acquired for it is already put to use by initiating export of our leases from that place. And land and building has been put to use for that purpose. And the factory will go away. Right? It will not I mean, it will be a scrap sale kind of No. It's not working. No. It's not all gonna be scraps there because some of the plant and machinery may be even useful in some other plants of PV light or for some other industry. So, you know, some of that will be used by others in their manufacturing because this is plant and equipment, which can also be some of that can also be used to manufacture other products. Okay, sir. Thanks a lot. Thank you. The next question is from the line of Adnan Mitra from Credit Suisse. Please go ahead. Yes. Hi, Prabhu. My first question was on the growth that you highlighted that we should not look at it from a quarter to quarter basis. So I wanted to understand one thing from you that do you in this slowdown that we've seen this quarter, is there a substantial component of trade pipeline also? Or is would you say that the growth is kind of mirroring the offtakes in the market? And also within, you know, between 1Q and 2Q, though, we should not look at the exact numbers, is there a sequential slowdown that you sense, which has, further happened in the 2Q compared to the 1Q? See, I would say, there is a little bit of channel inventory correction because, you know, the liquidity crunch impacts everybody in the trade. So some level of inventory would have reduced of the dealers and distributors in some cases. However, there is a reduction in offtake as well, and there is a reduction in usage. One of the key reason also has been prolonged monsoon, which has impacted some of the activities and also due to the liquid market conditions, the slowdown in construction and real estate activity. So there is both an impact on offtake and consumption as well as some channel correction. Difficult to calculate the two, but there is a definite impact on both the off take and consumption during the quarter. Now sequentially, when you ask from first quarter to second quarter, the numbers you have seen that the volume growth has reduced compared to the first quarter, and that we see across most of our major product groups. Okay. Thanks. And the second question was that on the Neenah Percept and CP businesses, are given that the real estate market is quite tight and there is liquidity issues. Would you continue to remain a little cautious here and therefore, there the growth recovery could take more time than the consumer and bazaar business of your stand alone? Yes. Yes. We are being cautious here. So we are being extremely cautious. While order book is better than what our revenue is reflecting, we are careful in terms of execution, and we don't want to take undue credit risk. We are doing that. And also in case of V NAND, particularly, we are focusing on a change in customer mix. Earlier, we had a significant customer mix of real estate, which is now being diversified more towards other segments like industry, commercial and those kind of other segments. So we want to improve our customer mix and be a little cautious, during this period. But, eventually, once the things improve, then, you know, all these activities would help us drive better growth. Right. And my last question was that the VAM prices, as you said, it seems to be now stabilizing. So are are the full benefits of the lower VAM now reflecting in the gross profit of the quarter? And therefore, would it be fair to say that, you know, you will probably sustain these levels unless the commodity substantially moves from here? Sir, change is minor. It's about $900. It's a consumption value in the quarter, and the current price is, like, $8.90. So more or less the same. It depends on how the alarm prices move. As you know, they can change a lot from month to month and quarter to quarter. So depending on on the on the alarm situation and also if if any pricing action that we need to take. But, you know, historically, when the WAM prices have been at this level, our gross margins are are good. Yeah. Okay. Thank you so much, and all the best. Thank you. The next question is from the line of from IIM Lucknow. Please go ahead. Apurva and team. Just wanted to understand, while there has been a near term impact that we've seen, why are we guiding towards a recovery next year? Is this because we are continuing to see this weakness? No, Abhi, it is more that it's very difficult to predict things in near future. And so we don't want to say that when we have come up a quarter like this, we it is very difficult to say that the next quarter will suddenly look around. We like to be cautiously optimistic. So we believe that when there is a slowdown in economy, it does take a couple of quarters to really recover. So from that aspect, we are saying more in the New Year, but there is no definitive way for us to know that. So this is just new a fiscal or new CY, you mean? By by we mean by New Year, we mean the new fiscal year. But again, Abhi, please take it with an understanding. It is not something that we can accurately predict. You know? The recovery can happen a quarter earlier or a quarter later. This is just just based the gut feeling based on the first two quarter results that we have got. We would rather be cautiously optimistic than hoping that the recovery will happen earlier. Okay. Fair enough. The second, just a clarification, Apurva, is if I'm if I recollect and, you know, can you correct me, is we took the first increase in '2 q, the price increase. We started in '2 q in the last year, 2Q for '19. So the price increases will annualize in the next quarter. Right? Is that a fair understanding or no? Have you taken more price increases over the quarters, which is why we still have some realization based benefits? No. The the the last year, we had done one more increase in December. Yeah. Is that what you are asking? Yeah. For the second increase. Yes. There was one more increase in December. So there's one so bigger one was in the September quarter or what was in December only? Sorry. I was just trying to understand that part only. No. Both both increases were around the same. You know? So, you know, bigger and smaller because we have a by product mix, but I I would say that both increase. It's were were off around the same magnitude. Okay. Okay. And lastly, sir, in this ad spends, what you highlighted, you know, whatever is this was largely, sir, marketing based is what I understand. Would that be a correct understanding, or was there also promotional element in this as well? No. It's largely advertising. Okay, sir. And if you if you you may have seen we had two big advertising commercial. One was the sixty year ad of FeviCall called FeviCall Sofa, which has been greatly liked and would help us significantly strengthen the brand over medium to long term, continue to maintain the strength of Fevicol. And the second was on Fevicol, where we launched a new campaign, Freiko Nei Joro, which has also found a very good resonance amongst consumers, urging them not to throw things and to bond it in a very interesting manner. So we had launched these two new advertising, So there was a significant ad spend when two large campaigns happened in one quarter as compared to much lower than average spend in the same quarter last year. And, sir, if I may, just if you could give me a sense on, you know, given how the WAN industry is doing because we were earlier highlighting that there is some capacity related additions and how is that kind of now panning out, sir? See, WAN is a very global commodity. So there could be some temporary demand and supply, but, you know, the supply always keeps on coming to keep pace with demand. So when whenever we have demand supply gap, there are temporary. Right now, there is no demand supply gap because, overall, globally, the growth growth has been low across the countries. So currently, there is abundant available of availability of WAM and also the raw materials which go into making WAM, which are acetic acid and ethylene. So currently, the the the because of good availability, the raw material prices are soft. Now going forward, what will happen is difficult to say. Sometimes there is a temporary outage. It's a one or two plant because of some situation. That can also have an impact. Okay. But, sir, as of now, I mean, for if things will be normal, I know that's a big assumption, but it looks like RAM is likely to remain benign. And this margin that we see is reflecting because it's close to the current level. As of right as of right now, the land situation is favorable. But it's difficult to predict what will happen in coming months. But as of right now, it looks favorable. Okay. And lastly, this tax rate, could you share I mean, how should we you know, out of this the seven and a half percent, how much of what will be the number that would be related to prior year current tax and the deferred tax asset, you know, right change or, you know, provisioning change that has happened? So currently, the the deferred tax liability reversal was 28 crore in this quarter. 28 crore? And, sir, what would be the current tax reversal for the first quarter? See, going forward 65. 65 crore was the reversal. Okay. And Sir, I think more relevant is going forward, the tax rate will be 25%. Would be 25%. Is that what if you're trying to determine, then going forward, the tax rate will be 25%. Okay, sir. Okay, sir. Twenty five one one. Okay. That's all from my side, sir. I'll come back and looking for the other questions. Thank you. Thank you. The next question is from the line of Kiyo Todiya from ICICI. Please go ahead. Hello, sir. Sir, my question is that what the slowdown that we have seen in Bangalore and Bazaar? So some would be because of the macro factors, some would be seasonal. So should we see some improvement just because of the season improving as as I mean, just rain subsiding, that is first. And second, would you attribute any of this slowdown to competitive intensity in the country and Russia segment? Sir, I think, as you said, seasonality monsoon, yes, this time monsoon has had a greater impact than normal because rains in many parts of the country have been extended, and that does impact activities of lot of products that are a lot of activities that our products are used. So that should clearly benefit us in this quarter. Other seasonal impacts are related to earlier and later Diwali, but that has a much lesser impact on our business than, say, for example, paint companies. So this is the reply to the seasonal activity. And the company any of this slowdown you would attribute to competitive intensity or how that landscape is right now you can show show some light on? Our core business of a DC when sealant goes, we we do not believe that there has been significant change in competitive intensity. So we don't believe it is there in case of a disease and sealants. In case of waterproofing products, yes, there has been increased competition as we have discussed over the last couple of years from paint companies, some cement companies. But our position continues to be strong, but there has been increased competitive activities from several large and midsized players. But we would attribute that impact on our growth has been more due to market conditions than than on competition as far as waterproofing products go. Okay. Perfect. Perfect. Thank you, sir, and all the best. Thank you. The next question is from the line of Anand Shah from Axis Capital. Just a few questions. Firstly, can you throw any color on the month on month, how the quarter progress shows like July, August, September or so, especially within the month of that? And in October also, have seen very high monsoons in terms of near normal for a lot of reasons. So would the extended monsoon impact also continue partly in Q3? Anil, I would not like to comment on the quarter, which is under progress, which is October, November. And in October, while the rain was there in the beginning, there is more than enough quarter left. So October to December, I would not like to comment. That would not be fair per to confirm. But and also during the last quarter, month by month, I'm not sure in terms of what your question is. Did we see greater slowdown or less slowdown? Yes. I mean, did you see some improvement or some deterioration, let's say, or August? I would not differentiate much between any of the three months. More or less, the situation was similar. Our internal growth rates could be different month on month, but we saw a similar sort of situation during the quarter. Okay. Secondly, we've seen this improvement happening in the international business sort of your growth rates have picked up across most regions. So So you see this trend sort of sustaining? So we definitely believe that good sales growth should continue in countries like Bangladesh and Sri Lanka where we have made investment. Bangladesh, as you know, we have set up a second manufacturing plant. In Sri Lanka, also we finished in the plant last year. So these two countries, our initiative and efforts appear to be giving us a steady and consistent sales growth. As far as Brazil goes also, as we have been saying over the last few quarters that our focus has been to improve efficiency and the operations of the business and several initiatives have been taken. And also Brazil overall seems to be a bit more stable than what it was several years ago. And hence, Brazil also we have seen better numbers. So overall, our export business appears to be moving in the right direction. With significant focus, the SARP countries are delivering very good growth, and we expect good growth to continue in that region. Okay, perfect. And just lastly, I mean, you are obviously seeing a lot of gross margin tailwind coming forward and with perhaps like six fifteen in the next few quarters. So is there any delta you can have, I mean, in terms of focusing more on trade promotions or price cuts and passing some of these benefits or pushing volume growth? Or is the macro so weak that these initiatives won't help? To some extent, we have taken this macro. I think if you remember in the first quarter also, we had said that we have taken some early pricing actions. So when the raw material prices had fallen, we had taken some pricing actions. And wherever required, we are giving a little bit higher schemes or discount. But, you know, we are doing it in a manner reflecting that, you know, doing too much of it will not benefit us. You know, we are we you know, if if there is an impact on offtake and consumption, it is going to affect our sales. You know? So just, you know, just to give some scheme to load up the channel, we generally avoid doing that. Okay. Okay. Okay. Thanks a lot. Yeah. Thank you. Reminder to the participants to ask a question, you may please press star and one on your touch tone telephone. The next question is from the line of Suresh Pardeshi from Centrum Broking. I have few questions. The first question, you highlighted there was some inventory correction which has happened. Would you be able to help us what kind of inventory reduction we have seen maybe in urban and rural towns? No, Suresh, I think I know when the question was asked, my point, what I answered was there is definitely an impact in terms of offtake and consumption, and there could be some correction in channel inventory. It's difficult for us to estimate how much it is because dealer inventory, we do not have any accurate number to say what is the dealer inventory and how much of that is corrected. So that's purely a feeling that we have is that there is some channel correction, but the greater impact clearly has been due to reduction in offtake or consumption. Yeah. I agree that point. But from the primary distribution point, your distributors could have reflected in terms So our distributor inventory does not reduce is because our distributor work on a replenishment system. Okay. So we have a, you know, standard software, and they just replenish and maintain their norms. Alright. So that is good enough. Would you be able to tell me what is the peak farm prices we have procured in last one year? Peak in last one year, maybe twelve, thirteen hundred? Just one second. Let's check. I will say it's about $121,300. 1,410. That was in quarter third. This is for. And from that, you're saying its current price is $8.90? $8.90. Yes. And, generally, what kind of, warm inventory we, we hold at this point of time? Maybe around forty five days. Forty five days. Roughly forty five days. Yeah. And, also but, Shereesh, you must keep in mind that this is a dollar linked item, so rupee going up and down also has an impact. It's not just the one price. Okay. The other thing which I was watching, consumer and bazaar product, which we have seen a slowdown in recent quarter and which forms a larger part of the business. So would you be able to I mean, some time before you were guiding us that Ruralin is growing and we have a distribution expansion. So could you please tell what kind of distribution we will have for Consumer Dagar products and what can be the growth can be expected for next two to three years? See, our small town business is still growing much faster than urban towns. The growth rate in smaller towns, even in a quarter like this in value terms are in double digits. So small town rural area or small town India is growing at a faster pace for us. In terms of distribution, know, in terms of numbers, you know, steady growth in distribution we are doing every year. More focus is on ensuring proper regularity of coverage and to do market development activities to increase consumption. Otherwise, stepwise, we have moved earlier, we moved to cover all towns up to 20,000. We are expanding to ensure that we have proper coverage in all states and towns. So that is the way we are deep penetrating every year. We add probably about 1,500 to 2,000 villages or towns every year. Okay. So you would say there you were your village coverage is roughly between twenty and thirty thousand? I would say yes. It would be with both direct and you know, not wholesale, but direct and indirect coverage to our super distributor and other needs. Yes. And and, obviously, these towns will have further penetration through the wholesale, say, sub 10,000 and less population. Yes. So what could be the wholesale sales for us? Because I I'm sure wholesale is also reeling under the pressure of liquidity and other issues. I don't have an actual number on what is the contribution of wholesale to our total sales, but I would not think because in some products, it is higher. But overall, as a company, I would I would not think it's more than 25%. Yeah. But this will be largely for the large products like FavicWeek and Favicon? It would be for our consumer products. Yes. Okay. And the last question on international bit. I mean, we are seeing very volatile performance, and I think some model we are trying to address. But but then what is the most severely affected region? I guess, MENA and Egypt and this place. But do you think the recovery will happen? And what I'm expecting, the answer is that, basically, which is the most severely affected business and which you don't think will come up in next two to three quarters? So, sir, your question is not on your international question on subsidiaries Because Neenah and Percept are domestic companies. So I'm saying international subsidiaries. So Neenah and Percept is not international. They are they are domestic subsidiary. In international, most of our subsidiaries have reported good growth during the first quarter. Most of our subsidiaries have grown by double digit. Only subsidiary which possibly have not done well is subsidiary in Egypt. Otherwise, most subsidiaries have grown at double digits. Most of them have grown well in the first, I mean, in the second quarter and in the first half. So you you assume or you you are very confident in second half, the similar growth rates would continue? No. No. We we don't say I think I do not like to say we are confident or anything like that. Sure. No. You you are seeing the trend. You know, we make steady progress. We are growing well, and we hope to continue to do well. But, know, we we do not like to commit anything by saying we are very confident or anything of that nature. Yes. What I'm trying to explain, like, construction growth and macro issues, which are pertaining to India, are similar issues, which we have seen from the commentary from other companies also in The Middle East and other part. So I know you would have grown and done better in first half, saying that double digit growth, which has come on. But is the macro factors which are supporting this kind of growth? That's what my question is. Macro factors are better in some countries than in other countries. And also that our penetration and our market share in some of these countries is lower than in India. So we have a lot of opportunity for geographical expansion, depth and width. So especially countries like Bangladesh and Sri Lanka, where we have a strong position, but still there is a much greater opportunity to gain market share and to expand our presence in those countries to introduce new products in those countries. So to that impact to that extent, this local conditions have a smaller impact than in India. Got it. Thanks a lot, and all the best to you. Thank you. Thank you. The next question is from the line of Kiran Naik from Motivinka. Please go ahead. Kiran Naik, your line is unmuted. Yeah. Thank you for giving me opportunity. Yeah. Hello? Hello? Can I listen? Yeah. Yeah. Yeah. Yeah. Can you tell me, sir, by March 20, how much will be the revenue growth in percentage wise compared to March 19? Cannot give you growth projection. No. See, we as a company do not give a growth projection or outlook. Okay. Okay. And what will be the EBITDA margin from March 20? Again, the answer is the same. We would not like to give out the projection. As a company policy, we do not give an outlook for a projection. Okay. Okay. Thank you, sir. Thanks. Thank you. Next question is from the line of Arun Jay from B. O. B. Capital Markets. Please go ahead. Sir, can you just tell us what was the E and P spend in the first half of this year compared to last year? Yeah. Just one second. So our our first half spend was 4.5% of sales. Just one second. The first half of this year, our ANSP spend was 4.5% of sales. And last year, in the same period, our spend was about 3% of sales. So But what impact was in second quarter where last year, the spend was 2.4% of sale, and this year, it was 4.8% of sales. Okay. Thank you, sir. Thank you. Reminder to all the participants, to ask a question, you may please press star and 1. Ladies and gentlemen, as there are no further questions from the participants, I now hand the conference over to the management for their closing remarks. Over to you, sir. Thank you all for joining the call and your questions. Have a good evening. Thank you very much, members of the management. Ladies and gentlemen, on behalf of Ambit Capital, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.