Q1 21/22

Jul 27, 2021

Ladies and gentlemen, good day, and welcome to the Sharbat Prop Chem Q1 FY 'twenty two Post Results Conference Call hosted by Antic Stock Broking Limited. 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. Please note that this conference is being recorded. I now hand the conference over to Mr. Manish Mahawal from Antique Stock Broking Limited. Thank you, and over to you, sir. Thank you, Malika. On behalf of Antique Stock Broking, I would like to welcome all the participants on the call of Sharla Croft Chem. From the management, we have Mr. Avi Bhubna, Chairman and Managing Director Mr. Ashok Harshist, CFO and Mr. Dinesh Nahar, D. M. Finance, on the call. Without further ado, I would like to hand over the call to Mr. Bhubna for opening remarks. Thank you and over to Bhumna ji. Thank you, Mr. Manish. Good day, ladies and gentlemen. A very warm welcome to everyone present here for the earnings call of Sharjah Cross Chem Limited for Q1 FY 'twenty two. Sharjah Krog Chem is represented by myself Ram Prakash Bhubna, Chairman and Managing Director our Chief Financial Officer, Mr. Ashok Hossist and Mr. Dinesh Mahar, General Manager, Finance. Talking briefly about our Q1 FY 'twenty two results. Revenues grew by 60% year on year from INR389 crores in Q1 FY 'twenty one to INR 623 crores in Q1 FY 2022 led by strong volume growth across the geographies. Europe grew by 47% year on year. NAFTA grew 75% and LATAM grew about 107%, rest of the world grew by about 20%. During Q1 FY 'twenty two, our agrochemicals and non agrochemicals mix stood at 86 to 14. The agrochemical business grew by 74% year on year. Europe grew by 60% year on year. NAFTA grew by 99%, LATAM grew by 110%. Rest of the world grew by 7.5%. The formulation to AI mix stood at 89 to 11 in Q1 FY22. The non agrochemical business grew by 8% during Q1 FY22. NAFTA grew by 13.5%, LATAM grew by 69%, rest of the world grew by 38% year on year. On the other hand, Europe degrew by 19% during this quarter. The company continues to strengthen its product portfolio by prudently investing in new product registrations. Sharjah Krop Chem's total product registrations stood at 2,570 in Q1 FY 'twenty two. Additionally, 1026 applications for the product registrations globally are at different stages of approval. The CapEx stood at INR64 crores in Q1 FY22 visavis INR71 crores in Q1 FY21. With this brief overview, I would now like to hand over the call to our CFO, Mr. Ashok Ashish for discussing our financial performances. Thank you very much. Now to Mr. Ashok. Thank you, sir. Ladies and gentlemen, very good evening to all of you. I will give you a brief about the company's financial performance for June quarter. During the June quarter, our revenue grew by 60.1% on quarter on quarter basis. And this was mainly driven by strong volume growth across geographies. So at 42% and price impactful shareable grew up to 8.2% and coupled with exchange gain of nearly 3.7% during June quarter. In terms of gross profit, we grew by 57% on quarter on quarter basis from INR 160 crores in quarter 1 last year, we grew to INR 183 crores in quarter 1 FY 2022. Gross margin, in terms of gross margin percentage, we were at 29.3% for quarter 1 FY 2022, which is the slight dilution in the margin is mainly because of the product mix impact. In terms of geographical mix, Europe region was the highest contributor, followed by NAFTA and Latin America. In terms of EBITDA, there was exponential growth by 119%, wherein INR 49 crores in quarter 1 last year, we grew to INR 107 crores in quarter 1 this year. So even in terms of weaker percentage, we expanded the margin by 4.63 bps to 17.1 percent in quarter 1 FY 2022. In terms of profit after tax, we grew by 36.4% on quarter on quarter basis from INR 28 crores last year, same quarter to INR 38 crores in quarter 1 FY 2022. In terms of cash profits, we were at INR 92 crores for quarter 1 FY 2022 in comparison to INR 63 crores of quarter 1 last year. So we with this strong performance, we further strengthened our cash position. The net cash position as on 30th June, 2021 is INR 3,661 crores. In terms of working capital, the in terms of days, we were at 88 days in quarter 1 this year against 89 days quarter 1 of last year. So with this brief, so we open the floor now for questions. And again, I would like to thank each one of you for your time and participation. Thank you. Thank you so much. We will now begin the question and answer session. The first question is from the line of Bharat Gupta from Eagle White Securities. Please go ahead. Hi, sir. Thanks for the opportunity and congratulations for a good set of reasons. My question pertains to the like can you bifurcate the growth in terms of pricing and the realization pricing in the volume gains, which we have done over the quarter? Yes. Just one minute. The growth based on volume was 48.2%. And what is the Foreign exchange, it was 3.7 percent price variation, 8.2 percent sales variation, 60.1 percent. In terms of volume growth, that is 48%, price impact 8% and ForEx 4%. And sir, can you just throw some light like we have done a reasonable amount of auditing growth. So what can be the key growth drivers? Like Europe, we have done nearly 60% on growth. So ultimately, can you throw some light like what has been the key growth drivers for us during the quarter? I would say better penetration into the markets, which we are already presenting, more acceptability to the customers. And sir, can we like in terms of our volumetric growth, so can it be due to the incremental registrations which we have done over the quarter and the remunerative crop prices globally? You see, you cannot link directly with the number of registrations because there is a big time lag between the time we get the registration and the time when we start reaping the benefits of it. As we have stated, we have added our total registrations of 2,570. And in March, the figure was 1 minute. It was 2,543. So we have added 27 registrations during this quarter. But I would say that the addition of this 27 registrations in this quarter would not have direct impact in the growth of business. This growth has come up from the registrations which were received maybe 12 months back or 9 months back or 15 months back. Right, sir. And sir, we are seeing a pricing increase which has been taken. So like earlier when we used to like organize concourse, so you highlighted couple of points that there has been pressure like in terms of M and C is not hiking out the prices. So how are we seeing that trend? Like have we started increasing the prices for the molecules which we are also dealing? See, whenever there are sometimes a shortage and MNCs are not able to meet the requirements of particular market or particular zone, We do have a spot in the demand. And then we take advantage of situation and also high COVID prices marginally so that and the customers are always in need of the product. Right, sir. And sir, my last question pertains to the gross margin side. So we have seen that the gross margins remain in the patient during this quarter. So is it primarily because we haven't taken the requisite price hikes or we have fully we haven't fully passed on the trial sites to the interest in us and there is still room for further improvement or like is it a new norm where the gross margins are likely to continue below 30% range? No. There is a possibility of gross margins touching 30% or even crossing 30%. So that is likely to be within the subsequent guidance, right? So our earlier guidance was used to be 31% to 33% green, so that is sustainable going ahead? It is sustainable. Right, sir. And sir, can you just for our bookkeeping notion, so can you give a gross margin data across different geographies? Yes. See gross margins in Europe were in the range of 39%, NAFTA it was 23%, LATAM 17% and rest of the world 28%. Overall, 29.3%. In North America, it is how much, sir? 22.8% to be precise. Okay. And sir, can you also put some light on the volumetric growth, which we have done over the in the region? Yes, please. Volumetric growth was 31% in Europe, 73% in NAFTA, 103% in LATAM and it degrew by 13% in rest of the world. Sure, sir. Thank you so much and wish you all the best. Thank you. Have a nice day. Thank you. The next question is from the line of Tarang from Oldridge Capital. Please go ahead. Good evening. Two questions from my side. 1, sir, I mean looking at your P and L, it seems like logistic cost inflation has it's not impacted you materially while on the ground we hear different things. So just wanted your thoughts on that. And second, if you could give us some sense on the 1030 odd applications, only to 36 odd applications, what proportion of them would be pending in Europe? And would you have some visibility in terms of how many registrations how many of these applications should get registered, say, over the span of next 2, 3 years? B. Balaji:] Your name is Mr. Tarang? Tarang. Tarang. Tarang of the world. Tarang? Yes, sir. Mr. Taran, if you have been exposed to our business model, we have said repeatedly year after year that the process of registrations is very unpredictable. It is highly time consuming and it has to go through various levels of bureaucratic processes. So predictability as to how many registrations are we going to get in the next quarter or next 3 quarters is very difficult to say for our main 3 years. Yes. All I can say is that the number of registrations in the pipeline in different geographies, would you be interested in that? Yes, sir. So the figure is about 648 registrations in Europe, which are in pipeline, 137 registrations in NAFTA for North American countries, 154 in Latin American countries and 87 in rest of the world. Okay. Thank you. Sir, on logistics? [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] Yes, logistics. You see, logistics have increased considerably. In our case, the logistics have increased by about 38% from Q1 'twenty one to Q1 'twenty two. But since the freight cost forms a very small percentage of our total cost, the impact is not so much felt in the total totality. On the other hand, in case of non agrochemical business, the logistics form a very significant part of the cost. So there, we have been able to pass on more than 50% of the price increase on our consumers. Nowadays, when we go to the consumers, we tell them this is our FOB price. And this is, say, maybe $4,000 per container is the freight, sea freight from port of this shipment to port of discharge. But sometimes this 4,000 goes up to 16,000. Then we tell them we can share 50%. So out of this 12,000 increase, 6,000 will be borne by us and 6,000 will be borne by you. And customers are fully aware of the situation. And without much of progress, they are willing to pay the 50%. Sometimes we also ask more than 50%. And since it is a universal phenomena nowadays, everywhere is the same situation. So we don't have much of a difficulty in passing on the logistics cost to our consumers. Got it. Thank you, sir. Yes. Thank you. The next question is from the line of Soumya from Spark Capital. Please go ahead. Hi, good evening. Thanks for the opportunity. So my first question with respect to the top line growth. Can you just share some color in terms of the broad macro trends that you're seeing in Europe and NASDAQ? And the broad macro environment there both in Europe and NASDAQ? [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] See, there has been an increase in the demand and growth. As you are all aware, agriculture assumes the highest priority among all the countries and all the governments in the countries. So there is no drop or no stillness in the demand. The demand is growing. The world population is growing. And food products are in demand. So there is a good increase in the demand. This demand has not been impacted adversely because of corona. Sir, with respect to our previous comment on having a better penetration in the last quarter being one of the drivers, what has actually led to us in terms of a relatively higher penetration last quarter? What has aided in better penetration last quarter? Sir, wider product mix and longer presence in the market, good quality and good service. Got it. And sir, in terms of raw material cost price trajectory, so how are you seeing things from Chinese raw material cost angle? So how was it being last quarter? How are you seeing things currently? I have been told wrong in the last two quarters. I was thinking that Chinese prices are subduing and they did that for some time. Now they have started again increasing. And the trend is mixed. For some products, the availability is comfortable. For some products, the current price is maybe 40% or 50% of our price about a year back. In other products, the prices came down to 30%, 40% and now they have gone up to 60%. So it's a dynamic and continuously changing situation. It varies from product to product. Overall, there is a small increase, but it is affordable and it is manageable. Got it. So and now that we have a very strong 60% growth in this quarter, so what would be our thought process in terms of outlook for this year, both in terms of top line and margin front? What is our outlook? I would say around 15%, plus or minus 3%, 4%. Okay. Yes, sir. What will be the reason one last question, sir. What will be the reason for the tax rate higher this year? And may we expect this to kind of normalize it back to normal in the subsequent quarters? I will ask Mr. Ashok to comment on that. One minute. So actually can you speak to me, this is Sumayya, right? Yes, sir, Sumayya. Yes. So actually, last year, we got some max credit from the investment max credit. And this year, in India, with the Sharda Program Limited, we have got a dividend income where there is a tax implication and where you consolidate the account, it gets eliminated. So actually, your tax rate would be in the range of 30% to 32%. So it is actually this quarter looking higher. But when we close the year, so it will be in the same range, around 30% to 32%. Got it, sir. So you had mentioned about the volume growth for this year, as you have given Europe NACA, the volume growth on a YOL basis. If you can give the volume number as well, it should be helpful, sir, the number that you used to generally give on a quarterly basis. Sure. You want the numbers for the quarter ended June 2022? Yes. In Europe, the quantity is LK3695,700. In NAFTA, it is LK26,000. In Latin America, it is LK16,000. Rest of the world, it is LK35,000. Total around 84 lakhs. Thank you, sir. Thank you, sir. Thank you. Thank you. The next question is from the line of Dhruv Ang from HDFC Mutual Funds. Please go ahead. Yes. Thank you so much, sir. So a question again on the top line, solid 60% growth, although I mean, you see the last year was a bit weak, last year base was a bit weak. So even on a 2 year basis, it was about 50% growth, which is a very strong. And if I look at some of the global media, we are talking about strong demand, but not as strong as what we are doing. And also if I see the trend for the last 2, 3 quarters, we have been doing 30% kind of growth. So what is changing? Is there something which has changed? If you can help us understand what is driving this growth and what can continue to drive healthy growth for us? So 15% looks conservative based on what you have been delivering to the last CECL purchase. Sir, I have answered this question in part in to one of the previous participants. I would say it is greater penetration in the market and more acceptability among the customers. When you enter a market as a generic company, for the first year or 2 years, many people don't know you and they keep their fingers crossed whether we will be able to perform and deliver. Slowly, they are gaining confidence in our capability to perform and deliver the goods and deliver it on time to their requirement. So and our prices are always better than the multinationals. So they say, why not? I think these are some of the factors which have helped us. Got it. Got it. So basically, that would because you are doing, of course, R and C is relatively smaller to the others, but I mean, in these global majors. But I would understand you are gaining market share from some of these guys. I mean, the Zendik players are gaining market share from this side. Is this the trend which is happening? The innovators are not cutting prices and that allows you to penetrate or push a product even better more. And I believe this trend has started down, this has seen that only started recently, I mean the acceleration trend. So why do you think that the growth will only be 15%, why not higher We are playing on a very tough terrain. Multi investments are still controlling about 75% of the market or even more. And we are a very small fry. So we are not big enough to force them to cut down on the prices. Our presence is not impacting them so much. For us, of course, in terms of relatively or percentage wise, we are growing, But we are very small right compared to them. And of course, they don't like us. But then this is a rule of the nature. So that's already in us. Us. Yes. But, Sathim, I mean given the growth that you're doing Our 30% growth may impact them by 1% or 0.5%. Yes. Yes. True, it's relatively small for them. But I'm just wondering on a very incremental basis, you're taking a decent market, it seems. So and the themes are developing trends. So I'm just trying to understand why this cannot continue for a very long time. Given that advantage that you have, the cost advantage that you have, probably if the innovators are not cutting prices, this trend will, I believe, keep continuing. There will I mean more and more this shift will happen because this is just free pit right now. I mean as it gains scale, others will also look at you for sourcing, isn't it? See, these are the factors which are giving us the confidence to survive and sustain and of course grow. But the path is very difficult. The challenges are very much there. And every day, we've come across some challenges. And things are not so easy, sir, as it appears on paper. Yes. But in reality, there are a lot of challenges. That's true. Sure, sir. And sir, just to better also better understand on this growth, is there any selective set of products which are driving this? Or is it also probably because the last few quarters have also been coincided with lot of these shipping issues and all these paying sourcing issues? And because we have been able to better manage probably our sourcing, that is why we are also getting larger volumes probably other than not able to do that. Is that also a factor which is helping us? Or that's I mean, that's not a big thing that you see? No, no. I think these are the factors which are helping us. These are the factors really helping us. Okay. So probably And Our ability to take quick on the spot decisions. If the shipping company says the prices are increased by 20%, we don't try to bargain. We accept it because we know after 2 days it may become 30%. And this is what we are facing and experiencing every day. Our customers in the non agro business keep on complaining that 1 week, like you said, this is a freight. Now you say this much. And we are very polite and tell them, please check up from any other sources that you have. Here we are not making any extra money. And check up from and they do check up. Everybody is very intelligent and smart. And our ability to adapt to the situation is helping us. Got it. So, okay. So what I was trying to also understand then is, say, for example, the shipping issues get resolved in, say, a year or 2, say, probably a year even what the market forecasted recently. So would this group normalize because then the other players will also start entering the market and try to take your share? Is that the thing? See, those things improve. We'll be very happy, but I don't think it's going to cost us in terms of volume and growth. We will also take advantage of that situation and as everybody else. Got it. Got it. Sure, sir. And sure, sir. Great, sir. That was very helpful. Thank you so much, sir. Thank you. Thank you. The next question is from the line of Rohan Gupta from EDELWEISS. Please go ahead. Hi, good evening. Ronji, I always confuse, so there are 2 Guptas in LY. 1 is Mr. Bharat Gupta and 1 is yourself. Am I right? Yes, sir. Bharat is my colleague. Good, good. Sir, first of all, congratulations on such a strong set of numbers driven by volume growth almost 50% in the current quarter. Baiza, you also just mentioned that the times are very challenging. And you still mentioned that portfolio as you are meeting close to 15% growth. I understand that it's coming from the conservative approach that you have. But sir, given the such a solid growth in the Q1 itself, I'm just slightly elaborating from the previous participant question. Although we have already achieved such a solid growth, it means that even for the next of the year, we do only the 5% to 6% growth, giving the 3% to 3% growth for the 3 years. You mentioned certain times are challenging and you know how the competition will act in the market. So can you elaborate a little bit more what are the challenges you are seeing while you also mentioned that the global ID in the coming scenario has benefited pandemic actually has helped the global ID cancel industry results. So all these things and the volume led growth that we have seen in the current quarter is mainly driven by you mentioned that we have increased some of the currencies in the main market. Because what are the concerns and what are the challenges that you are seeing in the market? We can get a view in the nearest part of the year from June and April? 2? Rohanji, the biggest fear today is a sense of uncertainty. This corona pandemic was totally unthought of about 15, 16 months back. And when our Prime Minister declared the lockdown for the first time for about 3 weeks, if I recollect, We were thinking after 3 weeks, things will come down to normalcy. So then it got extended by another 2 weeks. Now the whole thing is getting extended for about 16 months. So there are a lot of uncertainties which nobody can be confident of what is going to happen next. Now people are talking about delta and gamma and all kinds of various viruses. So we cannot know, we do not know It is going to impact the whole world, whole universe and we will be a part of it. So that overconfidence, we do not want to have and we should not have. Now shipping our freight costs, nobody could imagine that a container which we used to pay $1500 will have to pay $15,000 and still shipping companies are surviving and the businesses are surviving. There are a lot of such things. There can be any climate change. Now we have some glaciers melting, many things, sea water level rising. These are the acts of nature. Such a heavy rain in the city of Bombay and this part of India was not imaginable. Some of these factors are affecting some people very badly. And if some section of people gets affected badly, the indirect impact will come on everybody. I cannot name any specific practice or only, but the things are uncertain. Sir, I firmly understand that we are living in annual growth most after the pandemic. But many yes, sir. This ability to agree, sir, has always remained there in equity and so that is the nature of the industry, especially noncoun, unpredictable nature of rainfall and the climatic conditions. So that definitely we have always been looking. But yes, I understand from last 1 year we are looking at the pandemic environment that is quite uncertain for everyone. Sir, I mean apart from that, if a 3 finance like this, do you see that this kind of growth in the current quarter which you guys see is mainly driven by that, which is mainly driven by a lot of the penetration in other markets and the people probably increasing acceptance of GenV products that what we had. So I'm not getting into, sir, once again, the uncertainty of the retail of the Chinese. I'm just saying that the currency line yield continues and the kind of work in which you have done, your company have done in the last 7.5 years, which has helped you gain more penetration in the many markets. Can we have this kind of 30% to 40% type of volume growth for this year? I would say in totality, I would place it around 15% to 20% or 12% to 18%. We may grow, but today I'll be very afraid to go into a very big figure because I have to face you after 6 months again. I have to be very practical. I have to be very practical. So 15% to 18% growth you are talking about is mainly volume that growth, correct? And volume plus also is the profitability also, EBITDA and also related ratio. Because we are We are living in a pricing increasing scenario. You said that the prices across the products are compensated. So the current quarter, 8% was mainly price led growth. So I just was looking more of the volume growth. Can we have a 15% to 20% volume rate base for this year? B. Balaji:] Ma'am, that is the last part of the question. I thought you're making a statement. What is the question, Rohendi? Sir, you are saying that given the conservative scenario, you want to get a 15% growth. That's not talking about mainly volume, sir? Or is it total revenue growth that includes both price increase as well as volume? It is total revenue, sir. Okay. Why, sir, prices are continuously rising, right? So commodity prices or input prices are continuously rising. We just mentioned that those definitely, sometime back, China was pulling some pulling off in the prices, but it has once again started hardening. So sir, it means that we will continue to deal with the price rising scenario, correct, sir? Both ways. Both ways. See, sometimes the prices are sometimes we get quotation from our regular suppliers, which is surprisingly at a low price. And some other time, the same supplier for some other products, the prices are higher. So it's totally a question of supply and demand for a person like us, I mean, the company like Sharjah, it is very difficult to make a precise prediction. We will say that this is our hunch feeling and this is our intuition that we should be able to withstand and all that. And thirdly, I'm very confident of our team. Our team is very committed and dedicated. Every crisis, they find some way out in solution and come out as a winner. We have not faced any failure situation anywhere. I think I have spoken enough. Yes, sir. So just another question on our Latin market. We have seen very solid growth. You mentioned almost 100% growth in Latin market. Right now, I would request you to rejoin the queue for follow-up questions. Okay. Thanks, Dhruv. Thank you. The next question is from the line of The next question is from the line of Dhruva from HDFC Mutual Funds. Please go ahead. Yes. Thank you for asking. Sir, one question. I guess one clarification again. Sir, do you see a trend of pre buying, which is also aiding growth? There is a lot of supply issues and all those things, so people are trying to just avoid any future uncertainty. Is that also a trend that you see and which is also aiding growth? Mr. Rohan, I mean Mr. Dhruv, you are a very intelligent person. You know many things. This is also the case. Lot of people are doing some pre buying and they want to be more sure and certain because agriculture is one activity where the time doesn't I mean the nature doesn't give you time. If there's a rain, it comes all of a sudden you have to be prepared for it and any kind of eventuality. So there is a trend. Those who can afford and who are more certain and confident, they are trending to do some pre buying. Okay. Okay. But sir, I'm not sure, but is it from an overall inventory level, have they in the system, I'm saying about the system, not our inventory level, have they increased significantly? Or the inventory levels are normal, so pre buying is largely getting even absorbed at the final consumer level also? [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] They are getting consumed at the final consumer level. People are preparing, say for example, if the spring is in the month of October or sorry, April or May, people used to start stacking the goods sometimes in the month of February, March. Now the same people are thinking or planning to have the goods in their warehouses in December. They don't want to take chances. I don't know what makes them so uncertain. So a lot of people are trying to buy and have the goods in their warehouses even in the month of December. It does not mean that they are increasing the quantities in a very big way, but they are making themselves secure. Yes. Got it. And sir, one thing is just to understand how the business works, say for example, you sell to and then the distributor and distributor finally sells to the final consumer. So say for example, the distributor was earlier associated with an innovator that he was buying the innovator product and selling that branded product. Now you come in and probably because he is buying from you because you have the product available, he comes to you, he buys from you, he probably has an advantage now. So have you in your past experience seen that the distributor goes back to the innovator after getting the benefit from you, he realizes how much benefit that you throw in? Does he still go back to the innovator and start procuring for him when the situation normalizes? Or you get a sneaky customer that way? This is not a general trend. Once the customer is accustomed to buying from us, he is intelligent enough not to spend unnecessary extra higher prices and buy from the innovators. Yes. So that is what I was thinking because anyway due to mark to market, you're driving to be in the hotels. You don't keep the situation. I mean, we run into a situation when we our supplies have dried up and to replace those supplies if we need 4 to 6 weeks or 8 weeks, then of course, he will go to the multinationals. But as long as our goods are available, he will not go to them and pay higher prices. Got it. So once you get a customer, it is largely for a very broad sense, once you resume it, it is largely sticky. He will continue to give you volumes. And there are many customers who want to place it. If they have a requirement of, say, 100 gallons, he will buy 80 gallons from the multinational and 20 hour gallons from me. After 2 years, he will reduce the multinational share to 75 gallons and buy 25 gallons from me. So in this way, they are also securing themselves, but they are not let down by our in capacities in any way. Got it, sir. Perfect, sir. So it's a small sort of question here. On the FX item, so why do we have this FX fluctuation? What does it I mean, I understand we have global trading. So but what this FX item relates to, to up and P and L which is recurring? [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] FX items is foreign exchange. Foreign exchange? [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] But this is mainly the cross currency exchange rates like euro dollar or Canadian dollar to U. S. Dollar, all the different currencies and U. S. Dollar. Okay. Okay. So I will take that offline. No worries, sir. Got it. Thank you so much, sir. Thank you. Thank you. The next question is from the line of Rohit Nagaraj from NQ Global Financial. Yes. Yes, thanks for the opportunity. So my question pertains to a broader strategy level. As I understand, there are about 2022 products which are going off patent during this decade. So how I mean do we have any positive negative impact from the sale and if there is any how are we going to take any advantage or how will we be scaling through the situation? Thank you. Sorry to interrupt, sir, There is a disturbance coming from your line, sir. I request you to mute your phone. Hello, Mr. Rohit? Yes. Can you hear me now, sir? Yes. We can hear you, but our respected lady was not able to hear you. So can you repeat your question for her benefit? Yes. So basically, we are expecting about 20 products going off taken during this decade. So will it have a positive or negative impact on our business? And how are we assessing this situation? Thank you. Mr. Rohit, this will be having a positive impact on our business. And the biggest advantage we have today in this business is that we are not manufacturers. These kind of changes affects the manufacturers when a product gets banned and they're sitting with a big capacity to produce it and that becomes idle. And that leaves a vacuum there. Because we have very wide range of portfolio, if glyphosate goes off the market, we are not impacted. If there is a big glut of glyphosate in the market, we are less interested. We stop buying them. But the person who's manufacturing, he can't help it. He has to dump the product because he can't keep it sitting on the stocks. So we are very nimble footed and very flexible and this business model of flexibility helps us in this kind of situations. That's helpful, sir. Thank you so much and best of luck. Thank you, sir. Thank you. The last question is from the line of Himanshu Vinani from Antix Stock Broking. Please go ahead. Yes. Hi. Thank you for taking my question. So sir, I do have a few questions. So firstly on the intangible write off side, so just wanted to understand what would be the quantum DTT? How should one actually look for the 22 numbers for the for the full tangible items for this year? You are Mr. Binani? Yes, sir. Mr. Binani, this is another factor which is again not very predictable with certainty. This kind of write off is driven by many factors and combined effect of all those factors. But I would say that we will not have any significant write offs. We do not foresee any significant write off in this year. Okay. And so any sense on the margin profile for this current year for the next 3 quarters of this year given an inclusionary R and D situation? So how does one look into the margin profile overall? Margins? Yes, ma'am. We are very positive. We are hopeful of improving our margins as the time passes. Okay. And sir, one last booking question from my end. So can you please help us with the registration makeup geography? I think we have given that, but this information is available with me. I think I actually Registration geography wise is 1347 registrations in Europe, 237 registrations in NAFTA countries or North American, 748 registrations in LatAm and 238 in rest of the world. Total, 2,570. Sure. Thank you. Thanks a lot. Thank you. I would now like to hand the conference over to Mr. Manish Mahawar for closing comments. Yes. Thanks, Mallika. On behalf of Antalya Stockbroking, I would like to thank the team of Shagha Talkcamp calling us an opportunity to close the call. Gohmar, would you like to make a closing comment, sir? Yes, sir. I'm very grateful to all the participants who have taken their time, very valuable time for this conference. And we have tried to answer their questions to the best of our capability. And I want to repeat that we learn a lot from all these investors who are reporting questions. This helps us to guide our business and manage our business better. We understand what is expected by investor and what is expected by the financial experts out of any company. So it's very helpful and learning, sir. Thank you so much. Thank you. On behalf of Antics Frog Working Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you, everybody. Thank you so much.