Castrol India Limited — Q3 FY26

Castrol India Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=etHSgqYxNFc Published: 3 months ago

0:00 Ladies and gentlemen, good day and welcome to Castrol India Limited's quarter 4 CI25 earnings conference call. 0:08 8 seconds As a reminder, all buyers lines will be in the listenon mode and there will be an opportunity for you to ask questions after the presentation concludes. Should 0:17 17 seconds you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. 0:27 27 seconds I now hand the conference over to Mr. 0:30 30 seconds Sata Basur whole time director and interim chief executive officer. Thank you and over to you sir. Thank you and good afternoon everyone. 0:39 39 seconds Uh thank you for joining us on our fourth quarter and financial year 2025 earnings call today. As you read our 0:46 46 seconds reporting follows the January to December calendar year. Uh 2025 has been a year of strong and consistent delivery 0:54 54 seconds uh for Castrol India. uh we had our eighth straight quarter of volume le growth closed the year with the highest 1:02 1 minute, 2 seconds ever revenue and gained market share in our core automotive lubricants business for the full year volume grew 8% yearon 1:11 1 minute, 11 seconds year uh supported by steady demand in the personal mobility sector our continued scale up in the industrial business and our deeper distribution 1:20 1 minute, 20 seconds reach particularly into rural India our industrial portfolio and our rural distribution delivered doubledigit growth Yet again validating the choices 1:28 1 minute, 28 seconds we made over the last few years. The performance also reflects our agile approach which enabled us to navigate 1:35 1 minute, 35 seconds cycles. Business grew from expanding our reach, deepening our relationship with key OEMs from the automotive sector and 1:43 1 minute, 43 seconds better execution every day in line with our mantra stay close to customers make smart choices and deliver with discipline. 1:51 1 minute, 51 seconds In the fourth quarter, we saw some uh momentum. Revenue grew 6% year on year, making it our highest quarteron quarter 2:00 2 minutes revenue in nearly two decades. Uh while volume grew by 8%, reflecting sustained underlying demand. Uh however, what is 2:08 2 minutes, 8 seconds important to note is that this performance came in a very volatile operating environment. As competitive intensity continues, raw material 2:16 2 minutes, 16 seconds movement and currency volatility persisted through the year. Our focus remained on disciplined execution, 2:23 2 minutes, 23 seconds staying close to customers, managing costs proactively and continuing to invest in building our brands, uh bringing new innovations into the market 2:31 2 minutes, 31 seconds through new products and expanding our distribution reach. During the year, we moved at pace on innovation, launched 2:39 2 minutes, 39 seconds new products and localized close to 20 products across automotive, industrial and our specialties range. Uh some of 2:46 2 minutes, 46 seconds the major ones include advanced highol and alosol industrial products uh the new spherol range in res and we upgraded 2:54 2 minutes, 54 seconds our core uh offer in the personal mobility car space which is castrol magnetic. We also launched new products in the autoare range. 3:06 3 minutes, 6 seconds Uh we strengthen our distribution and relationship with key OEMs across automotive ecosystems. Uh we also forged 3:13 3 minutes, 13 seconds a collaboration with Triumph motorcycles for our brand Castrol Power One and signed an MOU with Winfast Auto India to 3:20 3 minutes, 20 seconds support their EV after sales uh at Castrol service centers. Our brand building initiatives reached an 3:28 3 minutes, 28 seconds unprecedented scale touching 300 plus million consumers and freight professionals through multi- channelannel campaigns such as the Gime 3:36 3 minutes, 36 seconds uh D3X protection best oil guaranteed on our commercial vehicle oil uh range along with establishing our presence across multiple major racing events. 3:46 3 minutes, 46 seconds These efforts deepen the brand's connection with consumers and trade alike. On the distribution front, we 3:52 3 minutes, 52 seconds continue to expand our market reach. Our distribution network now covers more than 150,000 outlets nationwide. The 4:00 4 minutes Castro Auto Care portfolio is now available across e-commerce, modern trade and another 67,000 outlets uh in 4:08 4 minutes, 8 seconds uh physical retail stores. Uh service network has also grown. We now have a network of 750 Castro auto service points across the country and we reach 4:18 4 minutes, 18 seconds 30,000 bike workshops and more than 11,000 multibrand retail outlets. Uh rural distribution continues to scale 4:25 4 minutes, 25 seconds up. We are now at over 40,000 rural outlets and we have over 500 rural service express installed in the 4:33 4 minutes, 33 seconds country. These network expansion initiatives ensure our products and services are available to consumers wherever they uh sustainability and 4:42 4 minutes, 42 seconds community engagement remains a core part of our ethos. We introduced India's first RBO based uh engine oil. RBO 4:50 4 minutes, 50 seconds stands for renewable closed based oil uh for BS6 engines and co-engineered with leading OEMs. We also scaled up our 4:58 4 minutes, 58 seconds community programs such as Sardi Mitra through highways as classroom initiative that reach truck drivers across 46 5:05 5 minutes, 5 seconds locations in Uttar Pradesh. Now before I speak further, I will hand over to Nanalini to take you through the financials in a bit more detail. Over to you Nalin. 5:16 5 minutes, 16 seconds Thank you Shto and a very good afternoon to everyone. 5:20 5 minutes, 20 seconds Let me start with the full year performance first. In fiscal year 25, we delivered strong results. Our revenue 5:29 5 minutes, 29 seconds from operations grew 7% year-on-year to 5,722 crores. AITARA for the year stood at 5:38 5 minutes, 38 seconds 1,38 crores, which represents a 5% year-on-year increase supported by strong volume growth and operating 5:46 5 minutes, 46 seconds discipline. Like Shago just said, profit after tax reached 950 crores, up 5:53 5 minutes, 53 seconds from 927 crores in the prior year. These gains reflect healthy operational execution and a good product mix. 6:02 6 minutes, 2 seconds Despite input cost volatility during the year, we were able to manage margins through disciplined cost control, pricing, and mix optimization while 6:12 6 minutes, 12 seconds continuing to invest behind brand building, distribution expansion, and capability development. 6:18 6 minutes, 18 seconds Let me turn to quarter 4. Revenue stood at,440 crores, which is up 6.4% 4% yearon-year 6:27 6 minutes, 27 seconds basis and profit after tax for the quarter was at 245 crores which is about 6:34 6 minutes, 34 seconds 8% sequentially higher than quarter 3 and it reflects the improved operating leverage as volume scaled through the years. 6:44 6 minutes, 44 seconds PAT was down from 271 crores in quarter 424 though this was impacted by one-time labor code related changes in this 6:53 6 minutes, 53 seconds quarter. Most importantly, our fullear EDITA margin which reflects the structure and health of the business 7:00 7 minutes remained healthy and cash from operations was robust underpinning the quality of our earnings. 7:07 7 minutes, 7 seconds From a balance sheet and cash flow perspective, the business continues to remain smooth and resilient, supported by healthy cash generation and continued 7:15 7 minutes, 15 seconds financial discipline. We managed costs and working capital cycle which supported profitability even in a high 7:23 7 minutes, 23 seconds growth environment. This disciplined approach enabled shareholder value creation and we maintained a strong 7:30 7 minutes, 30 seconds balance sheet while returning cash to the investors. 7:34 7 minutes, 34 seconds In recognition of this performance, the board has recommended a final dividend of 5 rupe 25 per share taking the total 7:41 7 minutes, 41 seconds dividend for the year to 8 rupees 75 per share. This reflects our commitment to consistent shareholder return while 7:50 7 minutes, 50 seconds ensuring that we stability to invest in the business. 7:55 7 minutes, 55 seconds I'll now hang it back to Shov to share our outlook. Thank you. 8:00 8 minutes Looking ahead, uh we expect India's mobility landscape to evolve steadily rather than change overnight. Internal combustion engines and hybrid engines 8:09 8 minutes, 9 seconds will continue to form the backbone of the market for the foreseeable future. 8:13 8 minutes, 13 seconds Even as new technologies uh gradually scale up, sustained economic growth and low per capita penetration of cars and 8:20 8 minutes, 20 seconds bikes should continue to support the cold lubricant demand in the personal mobility space. At the same time, government led manufacturing initiatives 8:29 8 minutes, 29 seconds are expected to underpin growth in the industrial segment. That said, we remain mindful of comparator pressure, the 8:36 8 minutes, 36 seconds volatility in raw material prices and currency movements. Uh these are realities of our operating environment. 8:42 8 minutes, 42 seconds We are focused on uh keeping an eye on them and responding at them when the environment changes. Our response is 8:50 8 minutes, 50 seconds clear. Strengthen the core automotive business rate supply chain localization and grow and adjacencies where customer 8:57 8 minutes, 57 seconds are seeking value including services and solutions. Uh with our scale distribution reach and strong brand and deep customer relationships, we believe 9:06 9 minutes, 6 seconds Castrol is well poised uh to adapt to the shifts in the environment and continue building a resilient and future focused business. Uh thank you and I'm now happy for us to take questions. 9:16 9 minutes, 16 seconds Thank you very much. 9:18 9 minutes, 18 seconds Thank you very much sir. We will now begin with a question and answer session. Anyone who wishes to ask questions may press star and one on the 9:26 9 minutes, 26 seconds touchstone phone. If you wish to withdraw yourself from the question queue, you may press star and two. 9:31 9 minutes, 31 seconds Participants are requested to use only handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question assembles. You may 9:40 9 minutes, 40 seconds please press star and one to ask questions. 9:46 9 minutes, 46 seconds The first question is from the line of Naim Patel from Bastion Research. Please go ahead. Hi, I'm audible. 9:56 9 minutes, 56 seconds Yes, are you audible? Yeah. 9:57 9 minutes, 57 seconds Yeah. Hi, thank you for this opportunity. So, I had some questions regarding our supply side of the business. So when we use lubricant 10:06 10 minutes, 6 seconds additives in our products, so are these lubricant additives sourced internally or do we source it from some external supplier? 10:17 10 minutes, 17 seconds So if I could just repeat the question so I've understood it. Your question is the additives that are used in the lubricants are these sourced internally 10:25 10 minutes, 25 seconds from within castrol or bought from vendors. Is that what you asked? 10:29 10 minutes, 29 seconds Yes from one of the is from the big four is it from external big four or is it just from Castrol internally? Yeah. 10:39 10 minutes, 39 seconds So we have a variety of across our entire range of automotive and industrial grades. There are certain additives core molecules that we uh 10:48 10 minutes, 48 seconds develop internally uh within the global castrol system. Uh we have technology centers as you may be aware across the world and there are certain additives 10:56 10 minutes, 56 seconds which we have uh procured or which we procure from uh our global partners uh who supply who supply specialized additives for specific applications. 11:07 11 minutes, 7 seconds We do both. 11:09 11 minutes, 9 seconds And is there a mix like how much of it is an internal or how much of it is external? 11:16 11 minutes, 16 seconds when on the product range, right? And and a typical product in automotive will have multiple additives, right? So, you 11:24 11 minutes, 24 seconds would say a majority of that is uh is something that we source from our strategic partners. 11:30 11 minutes, 30 seconds Okay. And uh is is one of those partners one of the big four big players like Inanium, Chevron, Lubriol or Rapton? 11:40 11 minutes, 40 seconds Yes, we work in all fourments. 11:45 11 minutes, 45 seconds And just a follow up on that that uh do we have like a long-term agreements with them or do we switch our mix on a 11:52 11 minutes, 52 seconds quarter to quarter or a year on your basis? And if we do switch from one supplier to another for a particular 11:59 11 minutes, 59 seconds period, what factors do we consider that has led us to switch from you know one supplier to another? 12:08 12 minutes, 8 seconds So I'll give you a broad answer. 12:10 12 minutes, 10 seconds Typically this is driven by our innovation requirement. Uh as you know this is a brandled business which we're looking to deliver value to customers 12:18 12 minutes, 18 seconds that they are seeking and uh whatever the best suited chemistry for that then we go and figure out what which is the right molecule to put into the product 12:26 12 minutes, 26 seconds to deliver that benefit. That's the way we approach it over time. And there are different segments within castrol. There is there's commercial vehicle, cars, 12:34 12 minutes, 34 seconds motorcycle, industrial, so on and so forth. And there are different suppliers who have strengths and we accordingly work with them each of those sectors. 12:42 12 minutes, 42 seconds Just go to that and just one final question do we uh procure from any of the Indian suppliers in this aspect or 12:48 12 minutes, 48 seconds are we just global? I guess we have variety of suppliers as you can imagine I can't keep saying names but we 12:56 12 minutes, 56 seconds have whole variety of suppliers global as well as local. All right. Yeah, that uh thanks a lot. 13:03 13 minutes, 3 seconds All the rest of you that's all. Thank you. Thank you. 13:08 13 minutes, 8 seconds Thank you. The next question is from the line of Nitan Tari from Philip Capital. Please go ahead. 13:16 13 minutes, 16 seconds Hi. U good afternoon and thanks for the opportunity. So my first question is actually a bookkeeping one. Uh can you give me the volume number for the quarter in uh in million liters? 13:30 13 minutes, 30 seconds Uh Uh Mr. Tari, very nice to talk to you. We we engaged even last quarter. So thank you for rejoining our call. Um 13:39 13 minutes, 39 seconds while specifics of how many millers we don't usually share. I think what you heard Shuto speaks uh at length was that 13:46 13 minutes, 46 seconds it is sustained volume growth uh as we closed the financial year 25 in fact all four quarters we were able to deliver high single digit 7 to 8% volume growth. 13:56 13 minutes, 56 seconds So I think uh that is that is what we really tried off uh and uh it's and the other good thing is it is a bit more diversified across all our portfolio uh 14:05 14 minutes, 5 seconds where we play automotive rural of course and in the industrial part of the portfolio. Uh yeah I would perhaps point 14:13 14 minutes, 13 seconds to leave it at that. Thanks for that Nani. But I suppose we've been sharing this number historically in the calls 14:20 14 minutes, 20 seconds like in the earlier call since I asked this question because you've been very specific with with the volume number and 14:27 14 minutes, 27 seconds would be great if you can like you know this quarters as well. 14:32 14 minutes, 32 seconds I understand. Let me let me help you a little bit there. Of course I won't get specific. Uh it has been a good year for us and we have seen you know upwards of 14:41 14 minutes, 41 seconds 60 milliliters in all our quarters. So we definitely are uh celebrating about your closure for us 14:48 14 minutes, 48 seconds about a 63 64 would be a good ballpark for this quarter upward of 60 in quarter 4 of last year 14:58 14 minutes, 58 seconds and every quarter if I may just respond has a certain seasonality in our business because at different times of the year where the agree business is big 15:06 15 minutes, 6 seconds and certain times of year the the automotive the core uh motorcycle businesses uh respond and has demand and 15:14 15 minutes, 14 seconds we anticipate that we will have se similar seasonality this year and we will we will hold on to a guidance of growing our volume at one and a half to 15:21 15 minutes, 21 seconds two times the market growth rate we to grow that's fair I'm just referring to this quarter because you mentioned that 15:29 15 minutes, 29 seconds you've grown at 8% for the year and also 8% for the quarter so hence I asked that would 63 to 64 million liter would 15:36 15 minutes, 36 seconds ballpark for quarter four to understand the volume yeah broadly ballpark you keep it at Typically quarter for quarter one is 15:44 15 minutes, 44 seconds slightly different but you can hold it around that range. 15:48 15 minutes, 48 seconds Okay. Uh sure. So and my second question 15:58 15 minutes, 58 seconds u sorry you saying something I yeah um yeah uh secondly um my question saying that your estimate is a good estimate. 16:07 16 minutes, 7 seconds Go back. Um my second question is with respect to your margin. So um our operating profits have grown by about 5 and a half% whereas volume growth has 16:16 16 minutes, 16 seconds been at 8% as we indicated. So we've seen a margin compression uh in this year visa v previous year right um so what are the key reasons for that and 16:24 16 minutes, 24 seconds how should we see this number going ahead uh so you would recollect had given a 16:32 16 minutes, 32 seconds guidance that we will operate in the margin range of 24% as we close the year we are actually 16:41 16 minutes, 41 seconds right at the top of range at 24% I'm sorry to interrupt you ma'am I'm sorry to interrupt you can you Please repeat uh because your voice broke in the middle. 16:52 16 minutes, 52 seconds Okay, I'm going to repeat one more time. Uh is my voice better now? 16:57 16 minutes, 57 seconds Yes, ma'am. Much better. I would request you to speak in the same manner ma'am please. Thank you. 17:02 17 minutes, 2 seconds I'll do that you thank you for letting me know. So Nathan as I was saying uh we've given our guidance as uh operating margin operating a margin in the range 17:11 17 minutes, 11 seconds of 21 to 24%. And as we close the financial year 25, we actually closed it right at the top of range uh almost at 17:19 17 minutes, 19 seconds the 24% mark. So from that sense we are very much within our guidance and we actually uh uh happy with that results. 17:25 17 minutes, 25 seconds But you identified the mix correctly as we do volumes high single digits and AITA groups about five five and a half% 17:32 17 minutes, 32 seconds there is a dilution and we've spoken about this earlier as well. As we expand, as we change our business mix 17:39 17 minutes, 39 seconds towards the industrial side of the portfolio, we know that we uh we cannot operate at the same levels as an automotive industry does. So that level 17:47 17 minutes, 47 seconds of dilution we expect, we anticipate and additionally we we have chosen to invest in the business. We are in a growth journey. So we you will see our fixed 17:56 17 minutes, 56 seconds costs also growing with really focused on the investment buckets and both of those have played out well for us which is why uh you see the 5% return. 18:06 18 minutes, 6 seconds Thanks that's a very elaborate one more. So uh given that you mentioned your focus is towards industry I mean 18:15 18 minutes, 15 seconds demand. So is data center um like you know demand something which you think is is a reasonable one which can come up in 18:22 18 minutes, 22 seconds the US uh to follow and what's your assessment of u like you know potential uh demand from data centers in the time to come. 18:35 18 minutes, 35 seconds Okay let me try to recap the question and then between and I we will try to address it. I think I think your question was on data centers. Yeah, your 18:43 18 minutes, 43 seconds question was do we see potential in data center business as a growth opportunity? 18:49 18 minutes, 49 seconds So uh let me uh take take a shot and sh can build on. So it is indeed very very small for us right now. We are at a very 18:57 18 minutes, 57 seconds early part of the journey. Uh being a part of the global cast we do benefit from the research and development which has brought us to this place where we 19:06 19 minutes, 6 seconds have a solution for uh cooling in data centers very small in India today and uh given the role that India will play in 19:13 19 minutes, 13 seconds overall data centers for the world more so looking forward indeed we do think it's a good opportunity for the future. 19:20 19 minutes, 20 seconds Ash over to you. Yeah, I I'll just build on what Linu was saying. I think two things. This is a market which is which 19:27 19 minutes, 27 seconds is uh growing fast. It's also changing quite quickly. And fundamentally what large data centers require is to cool 19:34 19 minutes, 34 seconds the uh the servers which are immersed into liquid that can conduct heat but not electricity. Uh the technology that 19:42 19 minutes, 42 seconds was used and is used in many other places today is pure air conditioning that is moving to immersion coolant. Uh so opportunity is evolving. It is moving 19:49 19 minutes, 49 seconds very fast. We think it is going to be a big big market out there. We have trials that are ongoing and we will see you know how as the market stabilizes what 19:57 19 minutes, 57 seconds is the size of the opportunity. You're still at a very early stage to project. 20:01 20 minutes, 1 second I I understand that Sita but I suppose that it's an early stage in India but can you help us uh with any any figure that you have from 20:09 20 minutes, 9 seconds Mr. Tari your voice is also muffled so if you could use your handset please sure uh just give me a moment. Is this better uh than before? Yes. 20:20 20 minutes, 20 seconds Yeah. So I was saying so if you can help us understand from any of the figures that we can source on cash fl global in terms of how much uh data center demand 20:28 20 minutes, 28 seconds is cash for global catering to uh and that will help us have an understanding on the potential for demand in India. 20:38 20 minutes, 38 seconds I won't be able to comment on the global demand honestly because but what I can tell you is large uh demand is coming out of markets such as the US out of 20:47 20 minutes, 47 seconds China uh part of Europe and and India of course and again as I said you'll have seen all the announcements on terawatts of data 20:54 20 minutes, 54 seconds centers being created but a lot of that is very early stage of execute and uh at this stage it's it's not completely 21:02 21 minutes, 2 seconds clear what is the technology that is going to be used on right so as I mentioned uh it is something which will evolve And that's the case even globally. 21:11 21 minutes, 11 seconds Got it. Fair enough. Thanks. Thanks so much for taking my questions. I'll get back in the queue for more. Thank you. Thank you. 21:20 21 minutes, 20 seconds Thank you sir. The next question is from the line of Sabri Hazarika from MK Global Financial Services. Please go ahead. 21:27 21 minutes, 27 seconds Yeah. Good afternoon. So uh so uh looking at your annual volume run rate of say around 240 to 50 million lit u uh 21:36 21 minutes, 36 seconds are you like uh fine with the current capacity of your plant or uh is there a thought process of like expanding capacity or something like that? 21:49 21 minutes, 49 seconds Yeah look uh we have been growing very strongly as you picked up uh and we have three toss in India. uh we we we feel 21:56 21 minutes, 56 seconds that at we are adequately equipped to release capacity there are always process transformation program which are 22:04 22 minutes, 4 seconds in play and we'll be able to support the growth uh for the next couple of years at least okay and uh and I I think you mentioned 22:13 22 minutes, 13 seconds uh fy ciex to be somewhere somewhere at around 130 140 k so I think 150 k so 22:21 22 minutes, 21 seconds that is the run rate we can expect going ahead also and ci25 plus 150 cr or was it different? 22:29 22 minutes, 29 seconds Uh let me take that question. Uh we invest capex and really it's a it's a growth driver for us. We we invest it in 22:37 22 minutes, 37 seconds two forms. One is in our plants and uh building capacity for innovation like Shaw just spoke and making sure that we 22:45 22 minutes, 45 seconds can enable all the new launches uh that he also spoke about in each which is about half my capex. I also we also 22:53 22 minutes, 53 seconds invest capex in growing in our uh you know to enable our distribution growth. 22:58 22 minutes, 58 seconds So in our dealer boards as well as in the market uh and you know rural service express investment as well. So overall 23:06 23 minutes, 6 seconds between the two buckets we spend about 100 crores of capex and uh that is the trend that we have you know we've demonstrated in the past. As we look 23:14 23 minutes, 14 seconds forward, we what we know for sure is we will invest when the investment pays out and given our strong structural margins, 23:22 23 minutes, 22 seconds we know that every time there is a growth proposal, it pays out. So, capex is not a constraint for us. We have kept a healthy cash balance sheet and we will 23:30 23 minutes, 30 seconds invest wherever there is a business need. 23:33 23 minutes, 33 seconds Right. Got it. And just one small followup, uh your dividend payout uh this time has been around 91%. Um I 23:40 23 minutes, 40 seconds understand in CI24 there was a special dividend but is uh 90 91% uh the sustainable rate right now for dividend payout. 23:50 23 minutes, 50 seconds Indeed that's a good question and I'm uh I'm hoping the shareholders are happy with the uh given out right now. 90% is 23:58 23 minutes, 58 seconds industryleading payout ratios and I'm very happy that we're able to do that. 24:02 24 minutes, 2 seconds Um last year was the celebration of the 125th year of Castrol because of which we had uh globally because of which we 24:10 24 minutes, 10 seconds had given that special dividend and we always look for such occasions to uh sort of delight our shareholders. Uh 24:17 24 minutes, 17 seconds nonetheless even without those special dividend our payout dividend payout is usually you know 4.8 5%. So and that's something we really want to see. 24:27 24 minutes, 27 seconds Got it. Thank you so much and all the best. Thank you. Thank you so much. Thank you. 24:33 24 minutes, 33 seconds We'll take the next question from the line of Loes from Ion Capital. Please go ahead. 24:40 24 minutes, 40 seconds Yeah. The first question is to return to the BP the patent company recently announced it selling stake 65% to be 24:47 24 minutes, 47 seconds precise in cash global global lubricant business. So how could this impact Indian shareholders in terms of like 24:55 24 minutes, 55 seconds brand licensing agreement R&D support from BP's global centers and basically long-term strategic direction under 25:02 25 minutes, 2 seconds ownership right thank you for the question let me try and address that and as you rightly 25:09 25 minutes, 9 seconds said uh the global announcement was made in December which was subsequent to strategic review that was also flagged 25:16 25 minutes, 16 seconds early in the year so at the parent level uh BP uh has signal that they will form a joint venture with an investor where BP will remain a 35% shareholder. 25:26 25 minutes, 26 seconds Investor will take 65%. I must caution that this is all subject to regulatory approval and we expect the transaction at some point to close toward the end of 25:34 25 minutes, 34 seconds the year as and when that happens there would be any regulatory uh related disclosures to be made that new 25:41 25 minutes, 41 seconds shareholders would do that. to your question on what may or may not impact uh very early it's business as usual for us over here and uh Castrol and India 25:50 25 minutes, 50 seconds particularly remain a very big market for Castrol globally and we are focused on executing on our plan and we think that you know those are the metrics 25:58 25 minutes, 58 seconds which have created that kind of value for our shareholders including the ones who invested yeah thanks for the thanks for the reply 26:06 26 minutes, 6 seconds sir and the second one is with regard to EV fluids we have been talking about EV fluids for a few quarters us. Now can 26:13 26 minutes, 13 seconds you give us any like quantitative update with regard to OEM approvals received in India in the last 20 12 months or the 26:20 26 minutes, 20 seconds current run rate of EV EV fluid sales and the kind of margin expansion that we 26:25 26 minutes, 25 seconds see with EV compared to IC products right okay so uh look the demand for EV 26:35 26 minutes, 35 seconds fluid is directly proportional to the number of EVs being sold in a year right and uh you would know from public I mean 26:42 26 minutes, 42 seconds publicly available information that uh the number of two-heer EVs is roughly 10% of the total uh new vehicles sold in 26:49 26 minutes, 49 seconds each year and in cars that's about 5 to 6%. Okay. Uh the good news is that we have access to the best technology on 26:57 26 minutes, 57 seconds the EV fluid front which is developed by a global team. We have a center of excellence in Europe on EVs and in India 27:04 27 minutes, 4 seconds I think stand today about 70% of the of the OEMs especially in cars they have approved uh gasol products and they used 27:12 27 minutes, 12 seconds in a lot of the vehicles over here but again the population is quite small uh so therefore it is not a material part of our business today but we have prepared and ready uh to cater to the demand as that business scales up. 27:24 27 minutes, 24 seconds Yeah, I get it sir. But uh just a bit on that, how would we see the margin expansion that we see? How is there any like higher margins? So in the EV fluid 27:32 27 minutes, 32 seconds sales compared to IC so there are certain segments in which the EV margins are better like when you say IC there are a whole range of 27:40 27 minutes, 40 seconds products that we sell starting from commercial vehicle uh engine oil uh we have grease gear oil and then we have the high-end synthetic products that go 27:48 27 minutes, 48 seconds into cars. So those uh margins are higher uh on on a aggregate basis I would say the EV margins would be uh at 27:56 27 minutes, 56 seconds the same range as if you have a poor automotive business. 28:00 28 minutes Yeah, that's a great clarification sir and thanks uh for the upgrade. Thank you very much. Thank you sir. 28:08 28 minutes, 8 seconds We'll take the next question from the line of Vijay Pande from Nuama. Please go ahead. 28:15 28 minutes, 15 seconds Hi sir. Uh thank you for taking my question sir. So sorry um this is first 28:22 28 minutes, 22 seconds time I'm coming to the conference so you know I may not be well worth the much 28:28 28 minutes, 28 seconds details about previous call. So I wanted to understand how are we uh what is our 28:36 28 minutes, 36 seconds expectation because of the upcoming EV growth. So how do we see the transition 28:44 28 minutes, 44 seconds in between the from that uh How much impact will it be on our number of pull 28:50 28 minutes, 50 seconds power in midterm as well as in the long run and in the case of because of the 28:58 28 minutes, 58 seconds increasing PHV and hybrid sales does that also carries uh lower contribution 29:08 29 minutes, 8 seconds to our like does PH and hybrids have a lower face for unit sales for is at similar level as compared to ice. 29:20 29 minutes, 20 seconds So that was my first question. 29:25 29 minutes, 25 seconds Right. Okay. So I if I'll I'll rephrase or I'll recap the question you mentioned because the voice was not very clear to 29:33 29 minutes, 33 seconds make sure that I've got it. You're asking what is the going to be the impact of the transition into uh EVs uh 29:41 29 minutes, 41 seconds in mobility space in the medium and long term and does hybrid also have an impact on demand for lubricants? Is that are those your two questions? 29:50 29 minutes, 50 seconds Yeah, exactly. 29:53 29 minutes, 53 seconds Okay, thank you. Got it. So the first thing I would say is look uh we believe that uh the transition to low carbon 30:01 30 minutes, 1 second mobility is going to have multiple pathways for that. What do I mean by that? I mean that there are efficiencies 30:09 30 minutes, 9 seconds to be had in uh in the existing ice power trains which is already happening uh and the regulations that are making those engines much more efficient. Then 30:17 30 minutes, 17 seconds there are multifuel engines which are being introduced in the market. So you have lot of uh manufacturers now selling vehicles which have either on CNG and 30:26 30 minutes, 26 seconds even some people are experimenting in heavy commercial vehicles with LG and then you have uh hybrids and EVs and all of these are happening in service of 30:34 30 minutes, 34 seconds efficiency and bringing down the carbon intensity in uh in uh mobility space. So 30:40 30 minutes, 40 seconds uh the the second point I would make is the penetration level of personal mobility especially in India is quite 30:47 30 minutes, 47 seconds low today when you compare to middle income and developed markets. Right? So the headroom for growth on motorcycles 30:55 30 minutes, 55 seconds and cars remains very robust and we can see that in terms of the growth that you see in new vehicle sales registered last year. So there about 4 and a half 31:02 31 minutes, 2 seconds million cars being sold in the country and there's another 18 to 20 million two wheelers being sold in the country. The contribution of pure EV within that 31:11 31 minutes, 11 seconds today is still small. Okay. Uh but the contribution of multiffuel or alternate fuel vehicle CNG, LPG, LNG all of that 31:19 31 minutes, 19 seconds is growing. All of them along with hybrids require lubricants and we have we have products in fact for hybrids we have a new range of product called 31:28 31 minutes, 28 seconds highspec and all of those are available but estimated in the medium term uh in India hybrids and ICE will remain the 31:37 31 minutes, 37 seconds backbone of the uh market uh and as and when EVs do scale up we have taps with 31:44 31 minutes, 44 seconds uh all leading OEMs in two wheelers and in cars and we will uh you know cater to that demand I hope that answers your question. 31:53 31 minutes, 53 seconds Uh yeah, partially. So, so does the EV also. 31:59 31 minutes, 59 seconds Mr. Pande, Mr. Pande, I'm sorry to interrupt you. There is a lot of background noise at your end. I would request you to move to a quieter place 32:06 32 minutes, 6 seconds and also please your handset to ask questions so that we have more clarity on your questions. Thank you. You may please proceed. 32:15 32 minutes, 15 seconds Is it okay now? Yes sir, much better. Please continue. 32:20 32 minutes, 20 seconds Yeah. So I wanted to check so uh does the EV also required uh 32:27 32 minutes, 27 seconds like just requirement of uh lubricant as EVs should be lower than the 32:34 32 minutes, 34 seconds requirements of lubricants and ice and hybrids. Is this understanding correct? 32:43 32 minutes, 43 seconds on a per unit basis an EV will require less is likely to require less number of liters of product. The application of uh 32:50 32 minutes, 50 seconds lubricant application of fluids in EVs can be in two places that and and it's evolving. There are certain batteries that require immersion coolant uh 32:58 32 minutes, 58 seconds technology uh where you know the coolant enables faster charge and better discharge rates for the batteries and therefore prolong the life of the 33:07 33 minutes, 7 seconds battery and that is a high value product and there are certain cases where the EV uh transmission fluids have uh 33:14 33 minutes, 14 seconds dialectric coolants in that whereby it cools the uh motor the transmission at the same time you know it it uh removes heat but does not conduct electricity. 33:24 33 minutes, 24 seconds So the application or use cases change and these are differentiated product uh and therefore not something which we can 33:31 33 minutes, 31 seconds compare clearly with the lubricants that are going into ice engines. 33:35 33 minutes, 35 seconds Okay. Okay. And uh so sir if I consider as 2030 so how do you see our product 33:44 33 minutes, 44 seconds mix changing between autos and industrial and within autos the hybrid ICE and EV if I just comment 33:55 33 minutes, 55 seconds on that discussion so your question to up to 2030 the 34:03 34 minutes, 3 seconds contribution change between automotive and industrial And within automotive the contribution change is that your question? 34:10 34 minutes, 10 seconds Yes. Yes. 34:13 34 minutes, 13 seconds Okay. So today predominantly our business uh has been automotive but we have we have uh informed uh all our 34:21 34 minutes, 21 seconds investors uh a couple of years back that we want to scale up in industrial and the industrial business has uh delivered 34:28 34 minutes, 28 seconds doubledigit volume growth. Uh our core business has delivered singledigit high singledigit growth. I I anticipate that 34:36 34 minutes, 36 seconds profile of growth from industrial segment will continue. Okay. So therefore over time going up to 2030 which is just about six year about four 34:44 34 minutes, 44 seconds years away and the contribution of the industrial business on the volume side is going to higher than what it was and what it is in 2020 what it was in 2025. 34:53 34 minutes, 53 seconds Within the core lubricant business uh we see growth uh coming through uh in all three that is a commercial vehicle, cars 35:01 35 minutes, 1 second and bikes. Different parts uh of the country are growing uh differentially. 35:06 35 minutes, 6 seconds So our two-wheeler business, motorcycle business is being uh is growing very strongly driven by our reach into rural 35:13 35 minutes, 13 seconds India where based on uh you know media reports you will see that anywhere between one in two or one in three new two wheels are being sold in rural India 35:21 35 minutes, 21 seconds and that's why we have invested heavily in terms of increasing our distribution rural India in the last few years that is bearing results we anticipate that will continue and that's what is going 35:30 35 minutes, 30 seconds to drive our motorcycle uh category growth where we have leading we are the market leaders with a brand called Castro active 35:37 35 minutes, 37 seconds uh in cars it's a big city play again uh we are leading in the market with the brand magnetic and GTX we anticipate 35:46 35 minutes, 46 seconds that is going to grow faster in terms of percentage growth compared to two years uh because just because the penetration level of cars is quite low in the core 35:54 35 minutes, 54 seconds commercial business vehicle business the resilient uh low singledigit growth which is linked to uh growth of freight 36:01 36 minutes, 1 second uh there we anticipate uh the business to move beyond the diesel as I mention mentioned earlier the multif fuel uh vehicles going in the market. So we'll 36:09 36 minutes, 9 seconds have products which can be used or which are used in uh powertrains that you see in commercial vehicles. We also have products that are used for last mile 36:17 36 minutes, 17 seconds mobility your submundon uh delivery vehicles that you see in cities and that will contribute to the growth in commercial vehicles but those are going to grow at low single digit. 36:28 36 minutes, 28 seconds Okay. Okay. Thank you sir and all the best. Thank you. Thank you very much. 36:36 36 minutes, 36 seconds Thank you. The next question is from the line of Daval Popit from Choice International Limited. Please go ahead. 36:46 36 minutes, 46 seconds Uh congratulations on the results and thank you for the opportunity to ask question. Uh my question is on Baser. So I see a recent announcement where there 36:55 36 minutes, 55 seconds has been partnership with HPC and uh it has been trying to use Zenol for B oil. 37:03 37 minutes, 3 seconds I understand 50 to 55% of baseline is currently uh uh imported and uh so is 37:11 37 minutes, 11 seconds can this percentage go down uh going forward and how much uh incremental payroll can be procured from this 37:18 37 minutes, 18 seconds partnership. My question is finally to do with your gross profits or more you get it domestically the lower the impact 37:26 37 minutes, 26 seconds of FX and higher the profits. So how do you see your basel being uh procured 37:33 37 minutes, 33 seconds locally? Uh that's that's my first question. 37:41 37 minutes, 41 seconds Maybe uh Dan let me take that uh firstly back I remember speaking with you last time as well. Um so you're right we do 37:49 37 minutes, 49 seconds import about slightly more than half of our base oil is imported and uh the rest is bought locally and uh that is a trend 37:57 37 minutes, 57 seconds I believe we would like to continue because as we buy locally we save a little bit on freight and it's better cost for us uh it's also better response 38:05 38 minutes, 5 seconds like lower uh inventory lower lead time so it's the right strategy that being said I heard your question within that 38:12 38 minutes, 12 seconds was uh does it really protect us from the you know the foreign exchange exchange fluctuations uh there u 38:20 38 minutes, 20 seconds incidentally it doesn't because end of day base oil is a commodity and uh it does it is really back to the you know 38:27 38 minutes, 27 seconds dollar price that is a globally tracked metric so while we save a little bit on cost what we don't really protect 38:35 38 minutes, 35 seconds ourselves is on uh foreign exchange fluctuation which is why our discipline on cost saving on pricing and on you know hedging is very important and we 38:43 38 minutes, 43 seconds continue to focus on those strategies Um did you have any other questions related to this the HPCL uh uh MOU? So let me 38:52 38 minutes, 52 seconds hand over to Shaw and he can talk about that. 38:56 38 minutes, 56 seconds Yeah I think on the HPCL piece R that is a MOU that we have signed with HPCL to explore the two companies coming together to explore what can what we can 39:05 39 minutes, 5 seconds do to help and develop a way soil a ecosystem in India. So one of the one of the big challenges that we have 39:13 39 minutes, 13 seconds determined which is coming in the way of a very vibrant RGO ecosystem in India the challenge on collection and last collection and given the reach of Castro 39:22 39 minutes, 22 seconds and uh and HPCL and different segment we are we are exploring what could be ways of working together to try and get that going and that in itself should help at 39:31 39 minutes, 31 seconds some stage to develop an RV by RV industry in India. So that's at a very early stage of uh scoping out. 39:41 39 minutes, 41 seconds Okay, that helps. And uh I understand you domestically took your bas oil from PSUs and IOC are coming up with more 39:49 39 minutes, 49 seconds refineries or more output of basil. So is there already some contracts in place? Are you guys already talking to 39:57 39 minutes, 57 seconds them uh regarding procuring domestically or can you shed some color on that? 40:05 40 minutes, 5 seconds Yes. So we as you rightly picked up we we source uh base oil uh domestically from the PSUs um and there is new new 40:15 40 minutes, 15 seconds there's a new base oil plant that IOC has commissioned with group three. So we are in conversation with them and as and when that scales up and as or as 40:23 40 minutes, 23 seconds requirements creep up we always look at what is the most efficient way to source our waste oil and we are quite uh quite agile and tactical in terms of making 40:31 40 minutes, 31 seconds choices as and when opportunities open up uh to bring efficiency. 40:38 40 minutes, 38 seconds Okay. Thank you. Thank you for asking question. Thank you. 40:41 40 minutes, 41 seconds Thank you. Thank you sir. The next question is from the line of Mander A from Investo. Please go ahead. 40:48 40 minutes, 48 seconds Thanks for the opportunity. So I have couple of question. Uh could you please share the current revenue mix between 40:55 40 minutes, 55 seconds B2B and B2C segments and additionally what is the product mix breakdown within 41:01 41 minutes, 1 second automative segments specifically from on PCMO and NCO category? 41:08 41 minutes, 8 seconds Let let me give it a shot. uh mand the the the industry is still heavily retail 41:17 41 minutes, 17 seconds focused. So I I would say almost about out of my automotive sales um 65 70% still is in you know uh in the retail 41:25 41 minutes, 25 seconds segment would be let's say in franchisee workshops etc. I I think your second part of the question was uh about 41:34 41 minutes, 34 seconds industrial versus automotive is that correct? Uh yes. 41:43 41 minutes, 43 seconds Yeah. So um I I think Shabuto alluded to this earlier. Automotive is a big is a big part of our business today. 41:50 41 minutes, 50 seconds Industrial is still relatively small at about uh 12 13 but growing very fast and uh we expect that share to go up. 42:00 42 minutes Okay. Additionally, what was the advertisement and promotion spent as a percentage of revenue for most recent quarter? 42:12 42 minutes, 12 seconds Um, so you'll see these in our published financial results. We we maintain it actually at a healthy 2 3% uh as 42:19 42 minutes, 19 seconds financial year uh 25 we close at 3% of revenue into advertising and sales promotion. 42:27 42 minutes, 27 seconds Great. with in the recent commentary you mentioned continuing the to strengthen the 42:34 42 minutes, 34 seconds relationship with key OEMs. So which new automotive OEM have you adapt with? 42:44 42 minutes, 44 seconds We just so we continue to work with the largest OEMs in the country uh which is again in the public domain. We worked with the Tatas both commercial vehicle 42:51 42 minutes, 51 seconds and passenger cars. We've been one of the early partners of uh Mali Suzuki when it commenced operations in in the 42:59 42 minutes, 59 seconds country. We work with two wheels as well as with some of the EVs which we talked about. So Tata passenger electric car 43:06 43 minutes, 6 seconds and like so the point that we made on the on the announce we continue to invest in strengthening that relationship. For example, on the off 43:14 43 minutes, 14 seconds road side, we work with JCB uh and we keep we develop products which specifically meet their requirement and that is what we have invested in. So 43:22 43 minutes, 22 seconds that those are the relationship that we uh continue to nurture. Uh we also made an announcement uh few months back that we have signed an MOU with Winfast as 43:31 43 minutes, 31 seconds they enter the country and help them uh meet their requirement for after sales service for the EV cars. 43:39 43 minutes, 39 seconds Got it sir. That Thank you. That was really helpful. Thank you. Thank you. 43:48 43 minutes, 48 seconds We'll take the next question from the line of Vipple Kumar Anuk Chan Sha from Sumangal Investments. Please go ahead. 43:56 43 minutes, 56 seconds Hi, thanks for the opportunity. I was disconnected from call for 5 10 minutes. 44:01 44 minutes, 1 second So I don't know whether my question has been answered or not. So can you give the split between uh uh automative and 44:08 44 minutes, 8 seconds industrial and within automative what is the sub segments like two wheeler four-wheer and commercial vehicles? 44:18 44 minutes, 18 seconds Uh Mr. Vipur good afternoon uh indeed your question was picked up just before this by Lini. Uh so I'll reiterate what 44:26 44 minutes, 26 seconds I said earlier. Our automotive business is the largest part of our portfolio historically and remains so industry is around 10 to 12% growing faster than 44:35 44 minutes, 35 seconds automotive. So automotive is going in high single digit industry going in double digits. So the ratios will change within automotive we have a fairly 44:42 44 minutes, 42 seconds diversified business. Uh so we have a sizable commercial vehicle business which goes into trucks and agri we have 44:49 44 minutes, 49 seconds a market leading position in motorcycles with Castroactive with the largest operators in that uh segment and we have also got a market leading position in 44:58 44 minutes, 58 seconds cars and therefore across all three uh we are material players and that contributes a very diversified and resilient business in automotive. 45:06 45 minutes, 6 seconds So what is your overall market share and how it has moved over say last two years? 45:15 45 minutes, 15 seconds So market share has gone up in the automotive side. Uh so if you you look at NESM is a third party uh um uh you 45:24 45 minutes, 24 seconds know uh provider of market share in the automotive space of market share going by uh 50 bips at the end of the year uh 45:30 45 minutes, 30 seconds and it is uh in the early 20s and this is at an overall automotive level covering commercial vehicle cars and two wheelers. 45:41 45 minutes, 41 seconds Okay. Thank you sir. 45:45 45 minutes, 45 seconds Thank you. Thank you. The next question is from the line of Hush, an individual investor. Please go ahead. 45:52 45 minutes, 52 seconds Yeah. So I was asking we get a volume based discount for the volume that we sell from our parents in the December quarter, right? 46:02 46 minutes, 2 seconds We get volume based discount from our suppliers of base oil and and that those are some of those contracts are global. 46:09 46 minutes, 9 seconds So this comes from the suppliers. 46:12 46 minutes, 12 seconds Okay. And it's in December quarter. So did we get get that in this quarter? And I just wanted to understand because 46:19 46 minutes, 19 seconds usually we see a a margin hike in the December quarter whereas this quarter I just wanted to understand what happened. 46:27 46 minutes, 27 seconds Uh did you know the forex eat our uh that hike that we get 46:34 46 minutes, 34 seconds maybe maybe let me take that hush uh I in fact alluded to this in earlier in the commentary as well. Uh I'll just 46:42 46 minutes, 42 seconds answer this question from an EITra standpoint. Average for the year I closed at about 24% AITA whereas if you see Q4 margins were healthier at 26% and 46:52 46 minutes, 52 seconds that's actually the primary reason for the quarter 4 AITA margins being high and you will see this is a trend in every year uh because these bases come to us at the end of the calendar year. 47:05 47 minutes, 5 seconds Okay, fair enough. And uh my other question was uh when do we take our annual price hikes and uh what uh sort of price hikes can we expect in the next year. 47:18 47 minutes, 18 seconds So we look at the market uh we benchmark ourselves to our key competitors and we have a certain price range within which 47:26 47 minutes, 26 seconds we operate. Um at the same time we are very mindful of the cost inflation currency movements. So as and when there are opportunities where we see we're 47:35 47 minutes, 35 seconds bringing new innovations in the market or we see the cost inflation going beyond the range that we operate in we take uh pricing action then and that's what we have done that's a that is a 47:44 47 minutes, 44 seconds approach we have taken for the last several years and we'll continue to remain in that way. 47:48 47 minutes, 48 seconds Okay. So so it's not a it's not a fixed time thing. It's a as in when we see something pop up we according 47:56 47 minutes, 56 seconds okay fine thank you. Yes, it's hard to explain. 48:04 48 minutes, 4 seconds Thank you. Before we take the next question, a reminder to all the participants that you may please press star and want to ask questions at this 48:11 48 minutes, 11 seconds time. The next question is from the line of Kesha from Kotak. Please go ahead. 48:18 48 minutes, 18 seconds Uh hi, I just have one question. Uh what is the reason for more more than 200 decline on buy a bit? So last year if I 48:27 48 minutes, 27 seconds can see the AIDA margin was closer to 27.8% in PQ and this year this year it is somewhere around 25.5%. So what's the reason for that? 48:39 48 minutes, 39 seconds Let me take that Kesha thank you for the question. Uh indeed you have spotted the trend right? It is on a percentage margin basis it is a uh it is lower 48:47 48 minutes, 47 seconds versus same quarter last year and I think the reasons are few of the factors that we've discussed in the call. uh for example structurally we know that we are 48:55 48 minutes, 55 seconds invest we are growing faster in the business versus the automotive indust business and that uh that will have a certain play on the margin. Uh secondly 49:05 49 minutes, 5 seconds because u I'm sure you are also very well aware uh the foreign exchange exposure to dollar uh to dollar euro has 49:13 49 minutes, 13 seconds been very very steep in the fourth quarter. So from a macroeconomic lens standpoint, we did have an input cost inflation and like Shabuto just said, we 49:22 49 minutes, 22 seconds don't take knee-jerk reaction. So we have a structural intervention in play to address such macroeconomic trends and those structural interventions take some 49:31 49 minutes, 31 seconds time to see to hit the market and hence Q4 saw a little bit of uh dilution behind those macroeconomic trends as 49:37 49 minutes, 37 seconds well. And then uh uh so overall nonetheless like I just shared with the previous question also we landed at 26% 49:46 49 minutes, 46 seconds of the uh uh as a repetit margin which is still uh be beyond our guidance of 21 to 24%. So I think we still in a very 49:54 49 minutes, 54 seconds healthy thank you so much. 50:02 50 minutes, 2 seconds Thank you. The next question is from the line of Vira Jatish Matthani from Jupiter Financial. Please go ahead. 50:10 50 minutes, 10 seconds Yeah, my question is regarding data centers. 50:12 50 minutes, 12 seconds Uh the colon is in data centers. Uh can you give some clar that when this business will become will be starting and what kind of growth we anticipate? 50:25 50 minutes, 25 seconds Actually the growth percentage is not sign is not the main criteria because the business is very small uh today. 50:32 50 minutes, 32 seconds they'll rapidly grow on a very small base. Uh when will it become material is a bit difficult to project at early stage because the data centers that have 50:40 50 minutes, 40 seconds all been announced are still at a early stage of execution. Uh so we'll have to see how that space evolves into data centers being established and then there 50:48 50 minutes, 48 seconds is also a technology change that is happening. Um the early data centers are being cooled conventionally with conditioning. The new data centers in 50:57 50 minutes, 57 seconds search of efficiency and and scale are looking for immersion coolant where they where they dip the server inside uh 51:04 51 minutes, 4 seconds fluids uh immersion coolant fluids as we call them which are dialectric and that is where these products are sold. So there's a there's one element which is 51:13 51 minutes, 13 seconds to understand how far the new data centers executed and and put on the ground and the second bit is to understand how many of them and how 51:20 51 minutes, 20 seconds quickly are and helps people scale up and run data centers efficiently. So we'll need get more time uh to quantify uh to 51:29 51 minutes, 29 seconds understand how big that opportunity could be. 51:33 51 minutes, 33 seconds I think four years away right could be could be could be sooner than that too. 51:42 51 minutes, 42 seconds Okay. Thank you. Thank you sir and all the best. Thank you. 51:48 51 minutes, 48 seconds Thank you. The next question is from the line of J Sha an individual investor. Please go ahead. 51:55 51 minutes, 55 seconds Hello. Yes, please proceed. 51:58 51 minutes, 58 seconds Hello. Uh sir, in previous phone calls, we have mentioned the pilot study being done with the data center players for the liquid cooling technology. Can you 52:06 52 minutes, 6 seconds give uh some any further update on the same? 52:13 52 minutes, 13 seconds Yes, I can tell you that uh there are those pilots that are happening in India. um our global technology center of uh developing data center fluids in 52:22 52 minutes, 22 seconds the UK and we have a team which is looking into it and they're working with certain large hyperscalers in India um to develop that we also have a tech 52:30 52 minutes, 30 seconds center in India and Patalonga which further optimizes some of these products to make them suitable for use in India and we continue to work with some of the 52:38 52 minutes, 38 seconds people who have announced data center uh uh data center uh projects for India. So those pilots are still on. 52:46 52 minutes, 46 seconds uh would it be possible for you to name them and when can we expect the commercialization of the thing? 52:54 52 minutes, 54 seconds Well, you can understand I can't name them. It is their business. So, that won't be appropriate for us. Uh all I can say is that we are working very 53:01 53 minutes, 1 second closely on the tech front to help them solve for removing heat which enables them to operate data centers more efficiently and that is where our 53:09 53 minutes, 9 seconds technology comes into play. both the global technology center in the UK as well as the work that our technologist in Kal Ganga which is near Mumbai do to 53:17 53 minutes, 17 seconds optimize the products for Indian environmental conditions. So as and when that those some of those arrangements close and those data centers are uh you 53:25 53 minutes, 25 seconds know scaled up uh we would you know make the necessary disclosures and announcements. All right sir. Thank you. 53:33 53 minutes, 33 seconds Thank you. Thank you. Ladies and gentlemen, we are at time. This brings us to the end of the call. 53:40 53 minutes, 40 seconds On behalf of Castrol India Limited, thank you for joining us and you may now disconnect your lines. Wish you a good day ahead. Thank you.