Q1 22/23

Aug 2, 2021

Ladies and gentlemen, good day, and welcome to Surya Ghoshmi Limited Q1 FY 'twenty two 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 of the end of this call. These statements are not guarantees of future performance and involve risks and uncertainties As a reminder, all participant lines will be in listen only mode. Ma'am, 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. Rajiv Gupta, Thank you and good afternoon, everybody. Myself, Raju Prist, Managing Director of Sudhir Rosti. Good evening, once again, everybody, and a very warm welcome to everybody present on the call. Today, again, I am joined by our EDM Group CFO, Mr. R. Malu Mr. Dorum Bandhua, Executive Director and CEO of Steel Pipe Business and Mr. Nirupam Sai, Executive Director and CEO of Lighting and Consumer Durable. And SRA, our Investor Relations Advisers, I hope everyone got an opportunity to go through our financial results and investor presentation, which has been uploaded on the stock exchanges as well as on company website. We hope all of you and your loved ones are healthy and safe in the wake of ongoing pandemic. The downward trend of COVID-nineteen cases is certainly a good sign, and we sincerely hope that the pandemic gets over soon with the aggressive vaccination drive going on across country. We have been following all the necessary guidelines to safeguard our employees' interest and also ensuring that our operations are running smoothly and healthy. I will now share a few highlights for the quarter. And after that, I will request Mr. Malu to share his thought on the financial performance of the company in detail. A sudden spike of COVID-nineteen cases during the second wave increased facility and infection rates, which ultimately resulted in dampened consumer sentiment and disruption in supply chain and production. This was coupled with increased commodity prices and lack of ability of the workforces. However, during these difficult times, our first preference remains towards employee safety, offering support to the affected employees and their families, vaccination and spending with the entire community. We leverage technology to enable our teams to work efficiently from their respective homes. On the vaccination front, one hundred percent employees at our corporate office and eighty five percent about eighty five percent of our employees at manufacturing location and branch offices has been vaccinated. Even in such a difficult and challenging environment, we were able to improve our operation and achieve growth on the revenue as well as profitability front. Our revenue for quarter one FY 'twenty two grew by 64%, EBITDA grew by 112% and cash profit registered a growth of about 221%. This we believe is a testimony to our strong fundamentals, operational excellence, top notch domain knowledge of our management and shared dedication of our entire workforce. During Q1 FY 'twenty two, the Steel Pipe and Strip business performance has demonstrated strong growth in spite of facing challenges in the form of increasing raw material prices and COVID-nineteen led restrictions resulting in lower demand. The raw material prices in the international market has been on an uptrend since April 2020, with a peak around May. However, the domestic prices continue upward trajectory till June 2021. We try to mitigate this by our continuous cost to increase the shares of high value, high margin lucrative products like API coated pipes, GI pipes, export and high margin value added products. As a result, we reported revenue growth of 77%, EBITDA growth of 143% with the highest ever EBITDA portion of INR 5,033 compared to INR 2,463 in 2021. The cash profit also witnessed a strong growth of 289% for Q1 FY 'twenty two when compared to year on year basis. This performance was led by strong growth of 109% in value terms for export along with API quoted pipe registered a growth of 112% due to the timely start and accrediting of expanded capacity of three LP coated facility, which supported in robust execution of orders. Being the largest exporter with a long standing relationship with marquee customers and being repeated for maintaining the highest quality standard, our export revenue and realization are expected to accelerate further. With global business relooking at the supply chain and working towards China one plus sourcing strategy, we witnessed a broad based demand search for our product from various countries. China has withdrawn export incentives and is planning to impose export duty. The export demand is expected to improve further. This coupled with better pricing give us confidence to achieve around 30% plus volume growth in export business for FY 2022. We remain positive about steel consumption and demand for steel tubes and pipe driven by increasing economic activities and the wider reach of our vaccination program. GTI is well on track to become a preferred destination driven by various initiatives by the government such as Make it India, Vocal for Local PLI team and China plus one strategy. We are participating in the tenders under the various government initiatives like Jaljivan Mission and CT Gas Distribution across country and have received a good quantum of orders. Also from a long term perspective, the decreased share of unorganized small players and the increased variance of larger organized in India players is expected to result in better opportunity and margins for the larger players, especially in the ERW segment, which has been the most fragmented segment historically. Our Lighting and Consumer Durable business has also registered a good growth, which is driven by strong growth in value added products like LED Lighting. LED Lighting grew by 29% in terms of volume, whereas conventional product, we saw a de growth by 14%, which was natural, with overall consumer lighting registered a 51% growth on consumer lighting segment. We have registered healthy growth across all regions even in the face of COVID-nineteen second wave. The plants remain underutilized in May and June in 2021 due to decreased demand due on account of market closure due to the spread of second of COVID. This along with higher price of natural gas impacted profitability for the quarter. During the quarter, we have also observed increase in raw material prices in Lighting, and we are passing on the same with continuous price hike in the market. We have witnessed a strong momentum of project inflow of our Professional Lighting business, where we have completed several marquee projects like Bandhari, Breeze, Phasrat, Zambhishar, Cricket, Stadium At Hyderabad, Barudra, M And E NHI Street Lighting and its 56 Street Lighting during the quarter. Several marquee projects under implementation like facade lighting of Ketteria, Guwahati and Lucknow Airport projects and additional projects from NHL like Aurangobad and Delhi Varodra package of five and six will enable us to strengthen our credentials for further project wins. We remain confident of maintaining the growth trajectory that we have witnessed during FY 2021. A favorable product mix towards value added product is expected to drive the margin expansion. We are focusing on high value product mix like LED pattern and double light and also on smart lighting LED, which has a very good growth potential. To augment the growth momentum further, we will continue to launch innovative smart lighting solution and new products. We are also continuously working on in house automation initiatives at our manufacturing facility and R and D to improve our productivity. Consumer Lighting, Professional Lighting and Consumer Durables are expected to drive our growth as we keep on introducing new products in the transition to being FMEG company. The PLI scheme for manufacturing of component of LED lights will enable accelerate growth in the medium term medium and short term as we are participating under the large investment category. We are planning a minimum cumulative investment of 25 crore between three to five years during this period. This will also enable us to augment our manufacturing facility further through backward integration leading to reducing reliance on imported components. To further enhance our brand building initiatives, we have appointed Ogilvy as our creative agency from last month June 2021. Ogilvy will work with us on brand building and on developing advertising campaign across digital, digital, etcetera. We firmly believe in creating values for all our stakeholders, including our employees and continuation of our policy of rewarding employee dedication and hard work, the company has granted 9.17 lakhs isop in the second tranche of tranche to two thirty four key executive and employees under the trust group. Cumulatively, it will be around 2.8% of the equity. We remain confident about the opportunity across all our businesses, focus on value added product offering along with improving operating efficiencies will enable us to achieve strong growth and profitability and create value for all stakeholders. I would like to thank all the employees, customers, suppliers, bankers and shareholders for their constant support and faith on us during this challenging time. Now, I will request Malaji to update you on the financial performance in detail. Over to you, Malaji. Thank you, Mr. Rishta. Good evening, everyone. Thank you for joining us on this call today. I will now take you through the quarterly financial update. On a consolidated basis, for quarter one FY 'twenty two, the revenue growth grew by 54 on year on year to INR $14.53 crores from INR $8.87 crores. The EBITDA reached a growth of 112% year on year to INR $19.53 crores from INR 44 crores, along with 144 points improvement in EBITDA margin from 6.41% from 4.96% in this quarter. This was primarily due to secular growth across the regions, better product mix, reduction in finance costs. The diluted EPS stood at Rs. 6.86 for quarter one FY 'twenty two as compared to 0.41 in quarter one FY 'twenty one. Continuous reduction in debt driven by repayment of term loans of INR 102 crores during quarter one FY 'twenty two led to further improving debt equity ratio to 0.51. Even during the current challenging quarter, we have been able to lean in working capital days. Overall, as a company, we have been able to improve working capital days by fifty days to seventy three days as of 06/30/2021 from January as of 06/30/2020. I will now take you through the performance of the Ship Price and Ship division. For Ship Price and Ship, revenue grew by 77% in quarter one FY 'twenty two to INR $12.39 crore from INR $7.00 2 crore in quarter one FY 'twenty one. The EBITDA grew by 143% in steel pipe division in quarter one FY 'twenty two to 77 crore from INR 32 crore in quarter one FY 'twenty one. We achieved highest ever beta per ton of which INR 5,033 crores in this quarter, which against INR 2,463 crores in quarter one FY 'twenty one. Gross profit grew by 289% in quarter one FY 'twenty two to INR 62 crore from INR 16 crore in quarter one FY 'twenty one. As mentioned by Mr. Misra, earlier this robust performance was driven by our continuous pursuit to increase the share of high value margin lucrative products like API coated bikes, GI bikes and exports, coupled with a strong growth of 109 in value dumps and 36% in volume dumps for exports. In API wise, we registered a growth of 112% due to the timely expansion of the three LP coated facilities resulting into robust order execution for this sector. Our strong order book of INR 800 and crore some crores in hand for API coated pipes as on 06/30/2021 will be one of the key growth catalysts, the commissioning of the 72,000 metric tons per annum manufacturing facility capacity of section 5 up to three hundred-three 100 millimeters with direct forming technology GFC at the Kalliappala unit on next quarter will also add the growth momentum. On the working capital front, we witnessed an improvement to sixty six days as of June 30 as of 06/30/2020 in the C5 division. Moving to Government of Lighting and Consumer Deliveries division. For Lighting and Consumer Deliveries, revenue grew by 15% in quarter one FY 'twenty two to $2.15 crore from INR 186 crore in quarter one FY 'twenty one. EBITDA grew by 31% to INR 16 crore from INR 12 crore. The EBITDA margin for the Lighting and Consumer Durables also saw improvement of 93 basis points to 7.6% in this quarter from 6.7% in quarter one FY 'twenty one. Cash profits grew by 83% in quarter one FY 'twenty two to INR 14 crore from INR 8 crore in quarter one FY 'twenty one. There was a sharp movement to one hundred and thirteen days on the working capital front as of 06/30/2021 from two zero eight days as of 06/30/2020. With aggressive vaccination content by the Government of India, falling cases of COVID-nineteen, economic activities are returning towards normalcy at a quick place. Demand for pain and consumer appliances is expected to remain buoyant, driven by continuing work from home elevated commodity prices are expected to differ in the medium term, which will in turn help us to improve the margins further. Our growth of 51% in the Newmar Lighting with strong growth across all other regions demonstrates the strong fundamentals in both the businesses. We are confident of robust performance in the next few quarters, which will be driven by strong fundamentals across our product portfolio and businesses. I will now request the moderator to open the floor for the questions and answers. Thank you. Thank you very much, sir. Ladies and gentlemen, we will now begin the question and answer session. First question is from the line of Kunal Shah from Kartalian. Congratulations on good set of numbers as well. I have two questions for divisions. One is in the pipe engine business. You've got an EBITDA per metric ton at 5,033. This is one of the best so far. Right? And we are also seeing good traction when it comes to exports. So how should one look at it for the whole year? And what is your take? How is the management looking at it for the whole year along with the volume growth in this particular segment? Next question? The second question is, you know, according to the the lighting segment. So we have got EBITDA margin of 7.6% when it comes to basically q one, which was basically in q four at 11.4. So there has been a revenue drop for sure, but any specific reason as to lighting a margin can drop. And, also, what we understand is in the lighting segment pricing is kind of bottomed out, right? So how should we see margin for the lighting segment going ahead going ahead from here? And also, how is the scenario looking out there? Because, usually, we understand there's still a kind of finding challenge. But if you could help understand how our leasing section when it comes to consumer durable business and also the pricing part when it comes to the license segment. Yeah, that's it. Thank you. So I'll start with the second question about the license segment of which you asked on the front. I think in quarter one, we have raised 7.6% of the EBITDA. Okay okay. Also, consumer durable business consumer durable business growth for asset. Second question will be real electricity Thank you. So in the first quarter, our Home Appliances businesses grew at 80%, a very good growth in all our Home Appliances business, and we plan to continue that growth momentum. We will have a whole slew of new products across categories lined up for this quarter and the next quarter. We expect that growth momentum to continue. So it will be a major growth driver for us this year and going forward. On cables and wires, we are in the process of finalizing the plans. We'll take it to the Board and after approval from the Board, we'll definitely share it with all the investors as well. Okay. Fair enough, sir. Thank you. I wish you all the best. I'll join back in the queue, sir. Thank Thank you. You. Thank you. The next question is from the line of Bhavesh Chuhan from ICVI Capital. Please go ahead. Hello, sir. Congratulations on a great set of numbers. Sir, my question is on this other plan where where it's a very old plan. And if if I understand correctly, we do some margins to improve the improve there. But management has paid a 100 crores of debt and not undertaking savings as what is the reason for that, sir? So, see, call discussion. Plant technology or the fixed Okay, sir. That is helpful. Thanks a lot and all the best. Thank you. The next question is from the line of Mahesh Vi, Individual Investor. Please go ahead. Yes, hi. I had a couple of questions. One is regarding this Ogil, Ogilvy and Mathur being appointed. What is the nature of mandate given to them? And why when would we see, as in the general public will see the new ads or the new binding whatever they are undertaking, the results that they are undertaking, the results of that? So, Nirupamji will reply. So with HOGILVI, it is a full fledged agreement that we have. So they will work on brand building with us, which includes advertising across all media, so including digital, TV, print, radio, digital, etcetera. We already started work with them and the first campaign, the first national campaign will be out in this quarter itself. So you and all consumers will be able to see refreshed brand and the refreshed campaign in this quarter itself. Okay. Okay. Rajuji, meaning policy depreciation approximately. But even from your own talk about your own business, there is lot more optimism today than two years ago. So do you think that we are being a bit too conservative now? The opportunities are bigger, and probably the CapEx could be higher than our depreciation. Thank you. The next question is from the line of Abhishek Ghosh from DSP Mutual Fund. Please go ahead. Thank you so much for the opportunity, sir. Sir, what are segment may round or section by its quarter proportion that also help the margin? Yeah. Hi. Here. So the water water segment mainly the project has gone into the new and mission. So slowdown exactly because recently the tender has been finalized for Himachal Estate where we are also participant and we will get some orders. And today, our team is there in Jammu Kashmir. They are also genuine mission orders are under discussion. So there is no slowdown and we are getting orders regularly. Okay. And sir, in the Lighting segment, how is the competitive intensity at the market place? Yes. So you have a whole host of established players who've been there for several years who continue to be there. One trend that we've seen is the small scale players are starting to die out. So we've seen that trend over the last couple of years. And particularly in the COVID time over the last year, we've seen a lot of a small scale sector actually die out. So that leads to higher market share for the branded players. The second factor is China imports. So there was a lot of not quite legal imports that were happening to traders going across to China and getting a lot of material. That has pretty much stopped completely because of geopolitical reasons, because of restrictions due to COVID. So really, I think that import component has gone down dramatically as well, again, leading to Indian players like us really gaining market share. So those restrictions and the whole Make in India initiative that the government has and Surya is a proud Indian multinational is obviously fully integrated into that initiative of Make in India. So and as we mentioned earlier in the PLI team as well, we are trying to invest so that our dependence on components of China also goes down dramatically by increasing the component transaction that we do ourselves. So all these factors are leading to branded players and particularly Surya being in a very good position to take advantage of these trends in the market. Okay. And sir, would you help us with what would be the proportion of this imports and small factor in the overall lighting segment? Would it be, like, 50% or higher, if any sense you can give us? Originally, And sir, just one last thing. Commodity price increase consumer durable price $3.04 generally. Ma'am, season Correct. Q Sir, just last question, if I may. April, May, June impacted July in terms of B2C business and consumer demand that is virtually back to normal levels after the trade has opened up? Okay sir, Thank you so much for the opportunity and wish you all the luck. Thank you. Thank you. You. The next question is from the line of Rajesh Parekh from Barclays. Please go ahead. Thanks for the opportunity and congratulation on good set of numbers. Sir, I will first like to understand about this margin from the steel side, where we have done a highest EBITDA margin of INR 5,000 plus per metric ton. So, how far is sustainable, how far this is sustainable at least? You know, this question has already been taken up by and I will just, your clarity, I will take up this. Let me, higher margin is basically on account of increased volumes in this quarter, 22% and also the high profit margin products and the markets. Export has increased by thirty six percent and eight ks has grown by about double in volume terms. CR quantities are more or less three times 10 of last year. The price margins has already increased in case of CR products. So this all has added with slightly the propane, this margin has come and has told by that we are expecting about you know 4,000 plus total of EBITDA for all of the year. Okay okay, that's interesting. I think sir coming to the TLI team, so what is the kind of opportunity we are looking at and have we participated over there and any investments or what we have planned over there? Yeah, so we are planning to invest as we shared earlier, we are trying to invest a minimum of INR25 crores over the next three to five years under the PLI scheme. So as you probably know, for LED lighting, it is now purely on components, it's not on the finished product. So we'll be investing the INR25 crores plus on components, and this is across categories. There are multiple categories available. We'll be doing it across multiple categories within the list that is available. So we already have the plans in place, and we'll be putting in our application very soon. Okay, so once that is approved then we will go forward with it, right? Yes, absolutely, absolutely. And my last question is on, I mean, have talked about this investment into wire and other business. So what is the kind of CapEx we are looking at and what exactly we are looking at as a product picture down the line? Yes. So we will obviously have to go to the Board, as I mentioned earlier, but we are looking at an investment of INR 30 crores plus in the wires and cables business in terms of CapEx. Okay. And what kind of business or I mean, the opportunity we are looking at from the next three to five years is just the broader plan what we're looking at? So that's part of the business plan that we shared with the Board. As you know, the market is very large. So there is a big opportunity that we see. We'll also be able to leverage our existing distribution. And that is a big strength for us, and that's the reason we're actually planning to go into that business. So leveraging our very, very strong distribution, we have about 1,800 odd distributors across the country, and we reach out to about 200,000 retailers across the country. Given that distribution that we have, we believe that we are in a very strong position because the same retailers and the same distributors deal in wire as well. So that gives us the confidence that we will able to grow the business substantially over the next four, five years. Thanks very much and all the best for me. Thank you. Thank you. The next question is from the line of Ghosh Tandon from Anansi Capital. Please go ahead. Yes. Thanks for the opportunity, sir. Sir, I have a little basic question. In both of our business units, lighting and steel, how much business would be distribution led versus project led business? Mister, far as the lighting is concerned, it's b two c segment is about your 75 to 80%. And in '85, it is about 60 to 65%. Okay. Excluding exports. Understood. Understood. And, sir, if I see your EBITDA trends, especially in the lighting business in the last year, we did $1.29 crore EBITDA in the lighting business. First quarter was very soft at 13 crore. Similarly, this year also, it's been 16 crore only in in quarter one. So, you know, I just want to understand that q two, q three, q four last year, the ramp up in lighting was primarily because of opening of the economic distribution, or was there some project business, onetime business also there? Si, Okay sir. Sir, and one more question. Lighting in the EESL business Right. How do returns happen, sir? I mean, do can they happen, like, the business you've done three years back? Do you do you tend to get returns even after three years in this business? Okay. Sir, may I ask you a question? Investment promotion assistance, your line item annual report. Benefit because we have set up plans in in locations which are little backward and government gives us incentives. Sir, is that going to continue for the next two, three years? What is the view? Because that is a decent amount that comes to our top line every year. These projects are Hindupur plant in steel pipes and the Gwalia plant. And this is about up to 2024, 2025. And thereafter, this will not be available. Okay. Okay. Last this was 1920, it was on higher side, but the last financial, it was very less. It was below 10 crores. Below 10 crores. It was below 10 crores. Okay. And going ahead, it will continue to be below 10 crores? Yes. Okay. Understood. Thank you, sir. So those are my questions. Thanks a lot also. There were two schemes in Gwalia plant. One scheme was already over in the somewhat March 20. Okay. Got it. That was the major part. Sure, sir. Thanks for all the questions. Thank you. Thank you. The next question is from the line of Rajnish Mahal from Master Capital. Please go ahead. Hello. Thank you for the opportunity. Sir, I have two, three questions. Sir, one is regarding the digital presence, like new consumer vision. I see there is no, hardly any digital presence. So you have to, you know, if I go to Amazon, Flipkart, and all these online sites. So we want to get the brand and all these electrical brand That is one. And secondly, it is a, you know, like an LED. I want to know what are the new products that you are doing to firstly of the actual Internet of things, you know, IoT related lot of and. Mean, Google is a trend, Alexa, or if you use. So I don't see any thoughts there. So Yes. Let me start with the first one. So as I mentioned, Ogilvy will be helping us with the digital marketing part of it. We have also we started on our website, you can actually buy consumer durables. So that is right now on our website. And we are also developing an e commerce strategy, which will enable us to sell on the Flipkart and Amazon of the world while not disturbing existing distribution. So that's been a big thing in this industry, where when you start selling aggressively on Amazon or Flipkart, existing distribution actually gets dispelled. So we're going for an e commerce strategy where we're able to balance selling to the large aggregators as well as carrying our existing distribution along. So that will happen in the next few months as well. On the smart lighting products, as you mentioned, we've just launched some products in the last quarter. Unfortunately, because of lockdown, we couldn't have the full impact of the launch because the markets were pretty much closed till mid June. But we've launched the smart lighting range in June the last quarter. And as I mentioned, we have a whole slew of new products lined up over the next few months, so pre Diwali and post Diwali. We'll have a whole host of smart lighting products. We already have a lot of smart lighting products in our professional lighting business. Whether it's in street lighting, industry lighting, etcetera, we already have a lot of products because that was a requirement there. Even the consumer space, we'll have aggressive launches over the coming months. Okay. And sir, my next question is regarding this, how do you see, like, financial competitors, the reverse and all? They have just announced that they are they were more in our current tier one tier two cities. Now they are focusing more on rural, and your your market is already rural. So how do you see the competition, you know, when this is coming to the rural market? And so positive, you know, pressures come in, and how how do you see that? And the second thing, there's also news in the market that he was might be taking over Cisco. So will that change our liquidity positioning, market share and all of that little bit of assistance? Yes. So on the second part, we really won't talk about competition and what they're doing. So on the first part, yes, our strength is below Tier two, Tier three and rural. What we've done over the last six to eight months is really continuously increase our distribution reach even in Tier two, Tier three and rural. So we're strengthening our distribution in our strongholds in rural and semi urban. That will enable us and it's not that easy to enter the rural market. It takes years and years to set up distribution because it's slightly different. You need wholesalers, you need vans. So it's a different kind of distribution. It's not that easy to set up, it takes a long time. Having said that, we continue to strengthen our distribution even there. And we're also doing the reverse. So we're gaining market share in metros over the last few months because, for example, we grew at about 98% in quarter one in the metros. So we're increasing our distribution and our presence in the metros as well. And when I talked about the new advertising campaign that we'll be launching in a couple of months, then we're really going to be going national and we believe that that's going to have a huge above in terms of our visibility and our sales in the metros. So we will go into the stronghold of competitors while they try and go into ours and we'll defend there and expand our distribution, but we'll also attack them in the metro in Teowanda. Okay, that's good. So are we planning some picking up some big star like the competition has and all this, so are we looking at that also? Any results that you want to I can't get a still on the development, so I can't really share more details at this stage. Okay. You'll see. You'll see it soon. Okay. And, yeah, I think that's it, sir. I hope I understood. Thank you. Thank you. Thank you. The next question is from the line of Anurag Patel from Roha Asset Managers. Please go ahead. Thank you for the opportunity. Sir, what is our advertising and branding expense for FY22? So we're trying to spend between 25 and INR 13 crores on advertising and promotion in the financial year. It's got substantial step up from the previous year. Am I audible clearly now? Yes. Now it is. Thank you. Yeah. So, sir, do we maintain our earlier guidance of 25% growth in consumer and 12% volume growth in price segment? Yeah. Volume growth So we are stick on it. Okay. You very much. That's it from my side. Thank you. The next question is from the line of Panal Shah from Kartlianian. Please go ahead. Yes. Just I had one follow-up question on one of the questions which a participant had pertaining to investment promotion scheme allowance, which used to form a very significant proportion of our revenue and in turn profitability. So just wanted to understand when we do our pricing of the product. Right? I would assume that these allowances would be taken into account while calculating the sales price and initial profitability. And therefore, if, you know, this kind of Huawei can say a year or two, right, there would not be much of a significant impact on the EBITDA margins of profitability to say so because then the selling price would be adjusted accordingly. So, you know, if you could share your thoughts on the same a little bit more. Thank you. Yes, yes, yes. You already assumed right thing that this is in due course of time, this is adjusted with the pricing of the product. And this is not going to affect the profitability, this means a bit of burden. Okay. So just one more question, does it look at the competitive scenario if it's in the market? We have to understood that why these schemes are granted. These schemes are granted for the accelerated profits. We are already getting it. And in due course of time, all these advantages of putting the industries in the acquired areas, all these areas are already developed. And therefore, you know, these units becomes a sizable unit and becomes very competitive. So I don't think that in going forward, it is going to make any difference. Okay okay. Thank you, sir. Thank you. No, this is last year, it was just. Yes yes, there are there there are receivables on this account and we are continuously pursuing with the government. We are hopeful that in this year, substantial part of this will be released. Okay, all fine sir. Thank you sir. Thank you. Next question is from the line of Rajneesh Mahal from Master Capital. Please go ahead. Hello. Thank you again. Sir, I had a question regarding this entire MCB and. You had said in last quarter that we'll be going to the board and then we say now saying. Now you heard again the same thing. I mean, can you give us a little timeline if what is there? I mean, when can we expect that? So we're in the process of finalization of the proposal. As I mentioned, we'll take it to the board and then come back. Okay. Okay, sir. Thank you. Thank you. Ladies and gentlemen, that was the last question. I now have the conference over to Mr. Arun Malu, Executive Director, Corporate Affairs and Group CFO for closing comments. Thank you. We thank everyone for participating on the call. We hope we have been able to address all your queries. For any further information, we would request you to get in touch with us or with the FDA or Investor Relations partners. Stay safe and stay healthy. Thank you very much. Thank you very much, sir. Ladies and gentlemen, with that we conclude this conference call. We thank you all for joining us, and you may now disconnect your lines.