EPL Ltd — Q4 FY26

EPL Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=hAiIPoFbG_c Published: 14 hours ago

0:01 1 second Ladies and gentlemen, good day and welcome to EPL Minted Q4 FI26 earnings conference call hosted by systematic 0:09 9 seconds institutional equities. As a reminder, all participant lines will be in the listenable mode and there will be an opportunity for you to ask questions 0:18 18 seconds after the presentation concludes. Should any assistance during the conference call, please signal an operator by pressing star then zero on your 0:26 26 seconds touchstone phone. Please note that this conference is being recorded. I now hand conference over to Mr. Pratik Aoja from 0:34 34 seconds systematic institutional equities. Thank you and over to you sir. Thank you Nesh. Good evening everyone. 0:42 42 seconds On behalf of systematics institutional equities I welcome you all to the Q4 and fully FI26 earnings conference call of 0:49 49 seconds EPL limited. Representing the management today we have Mr. Hmed Bakshi MD and global CEO Mr. Emma Ramasami COO, Mr. 0:58 58 seconds Deepak Goyel, CFO and Mr. Honka Gang, head legal company secretary and compliance officer. We thank the EPL 1:05 1 minute, 5 seconds management team for giving us the opportunity to host this call. Without further ado, I will hand the floor to Mr. Hman Bakshi to commence the proceedings. Over to you, sir. 1:16 1 minute, 16 seconds Thank you. Uh good evening everyone and thank you for joining us for EPL Limited's quarter 4 FI26 earning call. 1:25 1 minute, 25 seconds This has been a landmark quarter for EPL. We announced our proposed merger with Indova, a transformational move 1:33 1 minute, 33 seconds that will significantly enhance our scale and strengthen our position as a leading player in emerging markets. 1:41 1 minute, 41 seconds Together, the combined entity will create a nearly dollar1 billion consumer packaging platform with a broader 1:49 1 minute, 49 seconds product portfolio, stronger manufacturing and innovation capabilities, and an expanded presence across high growth 1:58 1 minute, 58 seconds markets while also being margin and value accretive. We as the management team are very excited about this combination. 2:09 2 minutes, 9 seconds I'm pleased to share at the same time we have delivered exceptional operating performance in a dynamic and challenging 2:18 2 minutes, 18 seconds macroeconomic environment reflecting the resilience of our business models and the strength of our 2:24 2 minutes, 24 seconds execution. Revenue for the quarter grew by 17.6% with EITA growing by 17.2% and margin sustained above 20%. 2:38 2 minutes, 38 seconds This is the highest ever revenue growth in the last 5 years. This is also the fourth consecutive quarter of 2:46 2 minutes, 46 seconds doubledigit revenue growth reflecting the consistency and strength of our performance. The momentum was led by 2:54 2 minutes, 54 seconds beauty and cosmetics which delivered a record 30% yearon-year growth aligned with our strategic focus on this 3:03 3 minutes, 3 seconds segment. Oral care also showed a healthy recovery, growing 10% yearonear. 3:11 3 minutes, 11 seconds Growth during the quarter was broad-based with all four regions delivering doubledigit performance. EAP 3:18 3 minutes, 18 seconds and the Americas led the way, growing 25% and 24.1% respectively, driven by a focused push 3:27 3 minutes, 27 seconds in beauty and cosmetics, new customer additions, and strong pipeline conversions. 3:34 3 minutes, 34 seconds Europe also delivered a robust performance growing 15.5%. 3:40 3 minutes, 40 seconds Amisa grew by 10.4% while India stand alone recorded a healthy 11 12% growth. Aida margin stood 3:50 3 minutes, 50 seconds at 20.2% with all regions within our guided operating range marking the seventh consecutive quarter of 20% plus margins. 4:02 4 minutes, 2 seconds PAT for the quarter excluding exceptional items marginally increased by 1%. However, on a fullear basis, PAT grew by 15%. 4:13 4 minutes, 13 seconds For the full year, we delivered a solid performance. Revenue grew by 13% in line with our commitment to deliver 4:21 4 minutes, 21 seconds consistent double-digit growth. Aida increased by 15.8% with margins at 20.4%. 4:30 4 minutes, 30 seconds Our strategic shift towards beauty and cosmetics is now translating into results with the segment delivering 4:37 4 minutes, 37 seconds fourth consecutive quarter of over 20% growth in the segment and an exceptional 30% growth during the year. 4:47 4 minutes, 47 seconds This helped us effectively manage temporary headwinds in oral care. Our personal care and beyond mix now stands at 53%. 4:57 4 minutes, 57 seconds And beauty and cosmetics is now larger than oral care in most key markets, marking a clear shift towards a more balanced and diversified portfolio. 5:09 5 minutes, 9 seconds Strong Eida and PAT performance combined with healthy cash flow generation have enabled a further deleveraging of our 5:17 5 minutes, 17 seconds balance sheet with net debt to IBIDA improving to 0.52X. 5:23 5 minutes, 23 seconds Return on capital employed also improved to 19% expanding by 96 basis points. 5:30 5 minutes, 30 seconds Sustainability and innovation. 5:33 5 minutes, 33 seconds Sustainability and innovation continue to be integral to our growth agenda. 5:37 5 minutes, 37 seconds During the quarter, sustainable tube formats contributed 38% of total sales, reflecting steady progress in customer 5:46 5 minutes, 46 seconds adoption. We are also proud to have achieved the Ecoadis platinum rating this year, placing us among the top 1% 5:54 5 minutes, 54 seconds of companies globally on ESG performance. We are the only packaging company from India to be globally 6:01 6 minutes, 1 second certified. Innovation remains a key focus area with continued progress across advanced loop formats and 6:10 6 minutes, 10 seconds differentiated solutions aligned to evolving consumer needs. EPL was certified as a great place to work 6:17 6 minutes, 17 seconds across seven countries this year, a reflection of our consistent efforts to build an inclusive, engaging, and high performance workplace. 6:28 6 minutes, 28 seconds Looking ahead, let me first address the impact of current Middle East crisis on our business. The crisis has affected 6:36 6 minutes, 36 seconds both the availability and cost of our key raw materials. We are proactively navigating the situation with a clear 6:44 6 minutes, 44 seconds and structured approach. We are prioritizing supply security for our customers while ensuring that cost 6:51 6 minutes, 51 seconds impact gets fully passed on. In these dynamic times, we realize that strength of our decadesl long supplier 7:00 7 minutes partnerships and meaningful scale allow us to be a reliable partner for our customers. with nearly 50% of our 7:08 7 minutes, 8 seconds business covered under contractual pass through arrangements and capabilities built postcoid to effectively implement passroughs across the balance business. 7:19 7 minutes, 19 seconds We remain confident of delivering robust absolute ibidra growth. Our approach during this period is anchored in a few 7:27 7 minutes, 27 seconds clear principles. executing with agility, maintaining financial discipline, safeguarding customer 7:34 7 minutes, 34 seconds relationships, and continuing to drive long-term value creation. 7:40 7 minutes, 40 seconds As we navigate this environment, our priorities for the future remain clear. 7:45 7 minutes, 45 seconds First, to sustain the growth momentum in beauty and cosmetics. We have now delivered consistent performance and 7:52 7 minutes, 52 seconds with ahead of the curve investments in capacity, innovations, extruded solutions, front-end specialization and 8:01 8 minutes, 1 second new technologies, we are seeing we see strong headroom to maintain this robust growth trajectory. Second, we remain 8:10 8 minutes, 10 seconds committed to scaling in high growth emerging markets. Brazil continues to outperform and deliver strong growth. 8:17 8 minutes, 17 seconds Our plant in Thailand is gra g g g g g g g g g g g g g g g g g g g g g g g g g g g g g g g g g g g g g g g gaining traction supported by a strong pipeline and new customer acquisitions. Thailand 8:26 8 minutes, 26 seconds represents a large and attractive beauty and cosmetics market with significant long-term potential for us. We are 8:33 8 minutes, 33 seconds strengthening our presence and capabilities to capture this opportunity while also exploring new markets that represent white spaces. 8:43 8 minutes, 43 seconds Third, we remain focused on margin discipline and capital efficiency. We continue to focus on delivering 8:50 8 minutes, 50 seconds profitable growth and improve margins through scale benefits and efficiency projects. In closing, FY26 has been a 8:59 8 minutes, 59 seconds defining year for EPS marked by consistent double-digit growth, resilient margins, and a transformative 9:07 9 minutes, 7 seconds strategic milestone with the announcement of our proposed merger. As we move into the next year, we remain 9:14 9 minutes, 14 seconds focused on sustaining this growth momentum, executing our strategy with discipline, scaling our presence in high 9:21 9 minutes, 21 seconds growth markets, and navigating near-term challenges with agility and a continued hunger for more. Thank you for your 9:29 9 minutes, 29 seconds continued support, and we will now open the floor for questions. 9:36 9 minutes, 36 seconds Thank you very much. We will now begin the question answer session. Anyone who wishes to ask a question may press star 9:43 9 minutes, 43 seconds N1 on the test telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants 9:51 9 minutes, 51 seconds are requested to use handsets while asking question. Ladies and gentlemen, we will wait for a moment while the question be assembles. 10:01 10 minutes, 1 second We have first question from the line of Sand Jen from ICIC Securities. Please go ahead. Yeah. Uh good evening sir. Thanks. 10:10 10 minutes, 10 seconds Thanks for taking uh my questions and for this opportunity. Um first on the point uh you you did touch upon your uh 10:19 10 minutes, 19 seconds initial remark postcoid in an inflationary environment. Uh we have seen u a two year of struggle to uh reach back to the margin of 20%. 10:31 10 minutes, 31 seconds Um you did uh made a point that you have taken a corrective measure in terms of contracts pass through and all. Um how 10:39 10 minutes, 39 seconds how much are we prepared in this scenario? Because this appears to be very similar higher logistic cost, higher raw material cost, higher power 10:46 10 minutes, 46 seconds cost in Europe. Um it appears to be a very close scenario between what happened for us between 23 and 24. Um 10:55 10 minutes, 55 seconds how should we see uh FI27 playing out for us? 11:01 11 minutes, 1 second Yeah. Okay. Uh thank you very much Sesh for that question. obviously very very topical and something which is uh top of 11:09 11 minutes, 9 seconds mind for everyone. Um so firstly I think this is a significant event there's no question about it. Uh and there are two 11:18 11 minutes, 18 seconds important things that we are dealing with at this point in time. The first is to secure supply availability uh which 11:25 11 minutes, 25 seconds is something which is extremely important for our customers and second is then to manage cost. As far as the 11:32 11 minutes, 32 seconds first is concerned, uh as I mentioned, we had long-standing relationships with our supply partners as well as the fact 11:39 11 minutes, 39 seconds that we are a scale player with which gives us an advantage and we've made sure that availability is adequately 11:47 11 minutes, 47 seconds covered till at least at this point in time till middle of July and we continue to increase that on a weekly basis. So 11:54 11 minutes, 54 seconds therefore on availability we are in a strong position. I think on pass through of our cost our model is much more 12:02 12 minutes, 2 seconds advanced and sophisticated compared to where it was at the time of COVID. We've learned a lot from that uh period as 12:09 12 minutes, 9 seconds well. More than 50% of our business comes from contractual customers where there is a clear agreement on pass 12:18 12 minutes, 18 seconds through on the other customers. We've been very proactive by being in the market and making sure we are able to 12:25 12 minutes, 25 seconds get price increases. So at this point in time we are very confident that we will be able to manage the cost impact that we will feel through this crisis. 12:37 12 minutes, 37 seconds Um so when we say pass through uh contractual term is this pass through for the raw material or this also 12:45 12 minutes, 45 seconds include the logistic plus currency plus freight um how is this pass through working as of now? I think in the past 12:53 12 minutes, 53 seconds the problem was that we were able to pass on the raw material cost inflation but other operational cost inflation is 13:00 13 minutes what uh took a lot of time for us to recoup uh those those cost and renegotiate the contract. 13:08 13 minutes, 8 seconds Yeah. So our model right now is a landed cost plus power pass through model and therefore it covers a lot of things 13:17 13 minutes, 17 seconds which you've spoken about. So that is something which we have covered for and this has been something which we've also learned through and evolved over a period of time. 13:28 13 minutes, 28 seconds Got it. My my second question is on the availability which you touched upon. Um have we seen any uh uh or or have we 13:37 13 minutes, 37 seconds been in a position that where we were not able to meet the requirement and is the shortage a reality and hence uh if 13:45 13 minutes, 45 seconds if we if we are able to procure the raw material we have an opportunity to grab some market share. 13:53 13 minutes, 53 seconds So availability um overall is a challenge but in our case we've been able to secure supplies uh of all our 14:02 14 minutes, 2 seconds raw materials as I've already mentioned and we are being very agile at this point in time where we are being able to 14:10 14 minutes, 10 seconds expand our uh inventories and extend this on a weekly basis. So at this point in time across all our raw materials uh 14:18 14 minutes, 18 seconds we are uh secure. Uh having said that this is a difficult time, challenging time and we do feel that we have some 14:26 14 minutes, 26 seconds competitive advantage in a situation like this and therefore there would be some opportunity for market share gains as well. 14:34 14 minutes, 34 seconds Got it. Uh one followup question Messa although revenue appears to have grown 10% I think a lot of uh pricing pass 14:42 14 minutes, 42 seconds through would have happened but ITA still at just 1% growth right and uh a bit growth negative 11%. Um and and we 14:50 14 minutes, 50 seconds have seen volume recovery for some of the FMCG players as they have reported the result. How should we see MSR? Are 14:57 14 minutes, 57 seconds we expecting a recovery or a re uh uh recovery in the EIA and rebate for MS and FI27? 15:06 15 minutes, 6 seconds Yeah. So I will um cover one part of the your question and then pass on to uh Deepak our CFO who can respond to the 15:14 15 minutes, 14 seconds second half. I think you implied that in this uh volume growth there might be some effect of uh the Middle East crisis. I just want to clarify that's 15:23 15 minutes, 23 seconds not the case. um this quarter has not really been uh to that extent affected by the Middle East crisis. uh so this is 15:32 15 minutes, 32 seconds really underlying growth which we are seeing and I think it's made up of two very important factors. I think one is 15:39 15 minutes, 39 seconds that beauty and cosmetics which is something which we've spoken about in the past which is a strategic priority 15:45 15 minutes, 45 seconds for us is gaining momentum in u uh a misa especially in our large market of 15:52 15 minutes, 52 seconds India and we are seeing really good response there and that continues to grow quarteron quarter I think in addition to that we've clearly seen 16:01 16 minutes, 1 second recovery in the oral care category as well and when the two of them come together we get good results on the top line as indeed you are seeing uh for 16:10 16 minutes, 10 seconds India standalone as well as AMISA I think on bottom line I'll ask deeper to cover that part yeah hi Sanjesh 16:18 16 minutes, 18 seconds so Amisa margins remain structurally very strong if you look at full year our margins have improved from 18.5% last 16:26 16 minutes, 26 seconds year to 18.7% this quarter is particularly impacted because of two one-offs one we had CEO 16:34 16 minutes, 34 seconds transition related cost we had two CEO cost uh in this quarter which impacted and second is last year margin included 16:43 16 minutes, 43 seconds uh a phasing one of reversal uh which because of which the base is high if we uh equalize for both then our margins 16:52 16 minutes, 52 seconds are in the target range and and that that's reflected in the fiery numbers. 16:59 16 minutes, 59 seconds Okay, got it. Um one one question on beauty and cosmetic. Uh earlier we used to tell that when as the beauty and 17:06 17 minutes, 6 seconds beauty and cosmetic contribution increases we will see a a kicker in the margin. Uh this year has been a 17:14 17 minutes, 14 seconds exceptionally strong year for uh beauty and cosmetics but that really didn't translate into the better margin. uh uh 17:24 17 minutes, 24 seconds though we are able to hold on to 20%, I thought there was a scope to increase further considering that there was a product mixed tailwind with us. 17:34 17 minutes, 34 seconds So if you look at our margin uh Sanjay and we should look at 17:43 17 minutes, 43 seconds please be an old man line has been disconnected and reconnected please 17:56 17 minutes, 56 seconds management line has been reconnected. Yeah. Hello. Yeah. Yeah. 18:02 18 minutes, 2 seconds Yeah. Uh Sanjesh margins. Uh let's look at full year to full year because that's a right benchmark. 18:10 18 minutes, 10 seconds We have improved from 19.9% to 20.4%. 18:15 18 minutes, 15 seconds Right? Which is a 50 basis point expansion in a year on a on a already high base. Another thing is that we have 18:23 18 minutes, 23 seconds got this uh margin improvement. When we continue to invest in the beauty and cosmetics category, we are investing in 18:30 18 minutes, 30 seconds the front line. We are investing in innovation. We are also investing in the capabilities across both back end and 18:38 18 minutes, 38 seconds front end. Right? And those investments if you see some of our course lines etc have grown and I have mentioned it in the past as well that our priority is to 18:48 18 minutes, 48 seconds drive growth and we will resource the growth fully because we believe that these are the good good costs and hence 18:55 18 minutes, 55 seconds the expansion is is uh gradual and that's how uh we expect it to continue. 19:02 19 minutes, 2 seconds No, I was just looking at a bit because some of the currencyled uh benefit would have come in ITA while that get negated 19:11 19 minutes, 11 seconds at the level of depreciation right you will have higher EIA you'll have higher depreciation that's purely a translation 19:18 19 minutes, 18 seconds effect uh a bit margin has not really grown u uh so so my my fear is that uh 19:26 19 minutes, 26 seconds the growth what we are putting I I completely appreciate that we are focusing on growth no doubt that's the priority for us. Uh but if I look at 19:34 19 minutes, 34 seconds EBIT level, the growth really doesn't look like as strong as it it appears at the level of IBITA. 19:40 19 minutes, 40 seconds So if I look at EBIT and again I prefer to look at uh full year numbers versus the quarter when we are comparing as a 19:48 19 minutes, 48 seconds structural business performance our revenue has grown at 13% our EIDA has grown at 15.8% EBIT has grown at 18%. 19:58 19 minutes, 58 seconds And EIT has moved from 11.8% 8% to 12.3%. So even in abbit we see uh 50 basis point expansion and you're right. 20:07 20 minutes, 7 seconds So if you look at our capexes for this year we have expand we have spent 480 crores plus which reflects the investment that we are making in BNC. So 20:16 20 minutes, 16 seconds there are investments in all the lines but all the investments are in the areas where we want to grow and the results are also reflecting but at the same time 20:24 20 minutes, 24 seconds we are very very conscious of our margin profile and the and how we are spending costs and and I believe both AIDA and EBIT are are moving in the right direction. 20:34 20 minutes, 34 seconds No I was referring to more Q4 Deepak. 20:37 20 minutes, 37 seconds Yeah, but Q4 my my request is Sanjay that u that for these structural questions saying are we really improving 20:46 20 minutes, 46 seconds our AIDA margin or not a slightly longer term allows us to see how we performing on a yearly basis 20:54 20 minutes, 54 seconds that fair enough that's fair enough just one last question with the uh improving volumes in India are we hopeful of a 21:02 21 minutes, 2 seconds better MSR performance in FI27 I think um As uh we've mentioned in the 21:09 21 minutes, 9 seconds past, we are clearly seeing improvement on oral care which had uh headwinds which we had faced last year. Uh we feel 21:17 21 minutes, 17 seconds uh confident that this year will be a much better year in oral and we are sustaining our BNC momentum. So we 21:25 21 minutes, 25 seconds remain very very optimistic uh about the Amisa region and more specifically India. 21:32 21 minutes, 32 seconds Got it. Uh great uh thanks for answering all those questions and best of luck for the coming quarters. 21:41 21 minutes, 41 seconds Thank you. We have next question from the line of Samir Gupta from AFL Capital. Please go ahead. 21:48 21 minutes, 48 seconds Uh hi, good evening sir. Congrats on a good set of numbers and thanks for taking my question. Uh firstly sir can you just quantify the amount of 21:56 21 minutes, 56 seconds inflation that we are facing in our cost basket and I know Sanjay asked this question but uh uh last time around we 22:04 22 minutes, 4 seconds saw a bita margin bottoming at around 16% with the current capabilities and sophistications around uh the passroughs 22:13 22 minutes, 13 seconds uh where do you expect you know the margin to bottom out at this time and your absolute grow absolute aida might 22:20 22 minutes, 20 seconds not see a uh uh uh uh contraction but uh uh uh margin optically will still because uh the path through will just cover the absolute increase in prices. 22:31 22 minutes, 31 seconds So this is the first question sir. 22:34 22 minutes, 34 seconds Yeah. So thank you very much uh for the question. Uh obviously as we've said this is a very uncertain and volatile 22:42 22 minutes, 42 seconds time. We are managing it on a agile basis at this point in time. I think what we can say very confidently is that 22:50 22 minutes, 50 seconds we will recover all the additional cost which comes on account of this crisis and that itself is a monumental task but 22:59 22 minutes, 59 seconds we've built the muscle to be able to do it and we will do it both with our contractual customers as well as other customers. There might be some optical 23:08 23 minutes, 8 seconds changes as a result of it which we will see as we go along. 23:13 23 minutes, 13 seconds And do you still expect the non-contractual to come with a significant lag or any any any kind of guidance on this will be helpful? 23:22 23 minutes, 22 seconds Yeah. So we don't see um we even with non-contractual we don't see any lag any 23:29 23 minutes, 29 seconds likely lag but over a period of time we are absolutely confident that we will recover all the additional costs. 23:37 23 minutes, 37 seconds Great sir. Uh second question and I think Deepak mentioned this uh to Sesh but uh capeex of 480 cr this year versus 23:45 23 minutes, 45 seconds depreciation of 385 uh slightly on the high side. I understand there was a green field in Thailand but uh is there 23:52 23 minutes, 52 seconds any other or maybe you can just give a breakup uh of the broad capex this year and a related question to that is I 24:00 24 minutes noticed no dividend this time. So uh any any particular reason for that? Are we planning on a big capex or is is this 24:08 24 minutes, 8 seconds like uh uh an indication of any any further you know inorganic uh activity that is in the plans? 24:16 24 minutes, 16 seconds Yeah, let me take that. First of all, capex uh is largely driven by the beauty and uh cosmetics investments. If you see 24:25 24 minutes, 25 seconds that the beauty and cosmetic category has grown by 30%. on a uh already higher base and that requires certain 24:34 24 minutes, 34 seconds investments and as we had said earlier while over a period of time our capexes will be closer to our depreciation we 24:41 24 minutes, 41 seconds will pull back we will do the phasing uh of the capex investments to make sure that the growth is not constrained and for this kind of growth then we have we 24:50 24 minutes, 50 seconds have invested ahead of the curve and uh we will continue doing that if we if we see uh that there are growth 24:57 24 minutes, 57 seconds opportunities that we capture on the dividend. Uh the dividend is actually because of the merger. Uh we are doing a 25:06 25 minutes, 6 seconds share swap as per the proposed merger announcement and both the companies cannot declare dividend till time merger is completed which is common in these 25:15 25 minutes, 15 seconds kind of uh uh these kind of mergers to ensure that the valuation construct uh remains. But at the same time let me 25:22 25 minutes, 22 seconds also talk about the uh the inorganic. We continue to remain hungry uh for the in inorganic because we believe that as a 25:31 25 minutes, 31 seconds combined organization or as we are kind of going along we have significant balance sheet uh muscle and also 25:39 25 minutes, 39 seconds customer relationships that we can capitalize on. So uh we continue to be on a lookout for a for a inorganic opportunity. 25:48 25 minutes, 48 seconds Uh uh just a followup here. Can you quantify the green field investment in Thailand that has gone? Uh $5 million. 25:57 25 minutes, 57 seconds Great sir. And last question if I may squeeze in uh more of a bookkeeping one. Uh tax rate continues to be up and down. 26:04 26 minutes, 4 seconds Uh uh so uh I understand there are nitty-g gritties but any kind of guidance here would be helpful. 26:11 26 minutes, 11 seconds I think our tax rate is a combination of uh country mix where the tax rates continue to be very very different. We 26:19 26 minutes, 19 seconds have tax rates right from 0% because of certain exemptions going up to 34% 35% in in some countries and hence the 26:27 26 minutes, 27 seconds country mix plays a big role on the tax rates. Uh steady state uh I expect our tax rates to be in the range of 18% to 26:36 26 minutes, 36 seconds 22%. I know it's a large wide range but that's how uh differential or uh the variation in the tax rate exists in in 26:45 26 minutes, 45 seconds various countries. If you see this year our tax rate is is about 18% which is at the lower end of the uh lower end of the range. 26:54 26 minutes, 54 seconds Uh that's all from me. Thanks Deepak. 26:57 26 minutes, 57 seconds Thanks Ammon. All the best for the future. We'll come back in the queue if there are any follow-ups. Thanks. Thanks Amir. 27:05 27 minutes, 5 seconds Thank you. Reminder to all the participants please restrict yourself to two per question. Reminder to all the 27:12 27 minutes, 12 seconds participants please restrict yourself to two per question. 27:15 27 minutes, 15 seconds Next question from the line of Misha from Numara Numara. Please go ahead. 27:21 27 minutes, 21 seconds Hi sir. Uh good evening. This is Miha from Namura. Um so first question on the revenue growth of 17 and a half% and 27:30 27 minutes, 30 seconds across the geographies except for Amisa the growth has been relatively super strong. Um can you explain what is 27:39 27 minutes, 39 seconds really driving the 17 and 12% revenue growth? Is there any pricing growth element in this 0.1 or is there any 27:46 27 minutes, 46 seconds because of the Trump tariff any uh uh inventory push of sorts or or any of oneoff that was there sitting in this quarter? 27:56 27 minutes, 56 seconds Yeah. So Misha thank you for your question. The first thing I want to clarify is that there is no oneoff in this growth. Um you know all the things 28:04 28 minutes, 4 seconds you mentioned whether it's the Middle East crisis or the tariffs etc. this is this growth is not because of that I 28:12 28 minutes, 12 seconds feel that our strategy which we've articulated many times you are seeing the manifestation of that uh we've said 28:19 28 minutes, 19 seconds that we will get steady growth in oral care and we will get significantly higher growth in BNC uh and in this 28:27 28 minutes, 27 seconds quarter both of those categories have done well and have been on strategy uh so let me first talk about BNC which has 28:34 28 minutes, 34 seconds grown 30%. We've made some very conscious strategic choices this year. 28:39 28 minutes, 39 seconds Uh we've invested ahead of the curve on capex. We have focused a lot in building our innovation capabilities. We've then 28:49 28 minutes, 49 seconds started participated in participating in the extrusion segment which we hadn't done as actively in the past and in in 28:57 28 minutes, 57 seconds addition to that we are bringing in a lot of uh premiumization and new technologies uh in the BNC market. It's 29:04 29 minutes, 4 seconds a faster growing market. We start with lower market shares and we are gaining market share across all markets and some 29:12 29 minutes, 12 seconds of our big markets are really getting to scale and they are driving growth. So BNC our strategies clearly worked and 29:19 29 minutes, 19 seconds you've seen the results this quarter but I think it's also important to look at oral. Uh oral care did have some headwinds last year which we've spoken 29:28 29 minutes, 28 seconds about but in this quarter we've seen a very healthy return to growth in oral. 29:33 29 minutes, 33 seconds Oral has grown by 10%. So therefore both our categories have done well. But in addition to that BNC now has scale. So 29:42 29 minutes, 42 seconds 40% of our business comes from BNC. 49% of our business comes from oral and when a large category which has scale starts 29:51 29 minutes, 51 seconds growing at this rate you get the uh growth which we've delivered this quarter so I feel very confident that our strategy which we've articulated 29:59 29 minutes, 59 seconds where we've invested behind and really gotten behind it is now delivering and you can see the results from this quarter 30:08 30 minutes, 8 seconds understood um so the 25% growth in EAP uh is 30:14 30 minutes, 14 seconds largely Thailand le uh and the 24% in America's 30:21 30 minutes, 21 seconds uh and 15 in Europe uh is broadly category or any specifics you can share out there. 30:29 30 minutes, 29 seconds Yeah. No, very happy to share that. So firstly I must start by saying that Thailand is a very attractive market. Uh 30:36 30 minutes, 36 seconds it's a large BNC market. Uh we feel very excited about what we can do in Thailand. We have a strong pipeline. But 30:45 30 minutes, 45 seconds to also be fair, our plant was set up only in November. We've since then been working on validation with our 30:53 30 minutes, 53 seconds customers. There's a lot of certification which has to be done and you will see significant growth coming out of Thailand in the future. However, 31:02 31 minutes, 2 seconds in this quarter, I must say that bulk of the growth if not the entire growth is because of a very strong performance 31:09 31 minutes, 9 seconds which we've got in China. So therefore silent we are very uh excited about very optimistic but that has not contributed 31:17 31 minutes, 17 seconds to growth in this quarter. This is coming from our core market of China. Uh as far as America's is concerned again Brazil's been a standout performance. 31:27 31 minutes, 27 seconds It's a blockbuster for us in the last since the three years we've gone there. 31:32 31 minutes, 32 seconds We've made a significant impact in uh Brazil. We started with a single customer but we've got multiple customers there. So Brazil again a 31:41 31 minutes, 41 seconds standout performance but what I'm even happier about is that every country in America has grown double digit. So 31:49 31 minutes, 49 seconds therefore a great performance in America but it is because of US, Mexico, Colombia and Brazil all four growing 31:56 31 minutes, 56 seconds double digit. So you know really uh good performance there and again in uh Europe uh it's a growth which we are getting as 32:04 32 minutes, 4 seconds a result of a strong category performance across different markets. So you know it's not because there is no oneoff in this growth. 32:15 32 minutes, 15 seconds Understood. Sounds like a allon performance. So how should one think about the sustainability of this growth sir? I mean uh should one expect this 32:23 32 minutes, 23 seconds kind of elevated growth to continue given that these structural changes have happened? Uh any any uh light you can 32:31 32 minutes, 31 seconds share on that one? So if you look at our full year growth uh Misha is 13%. 32:38 32 minutes, 38 seconds Uh and we are we've so far guided to a low double-digit growth in the range of 11 to 13% and for a longest period of 32:47 32 minutes, 47 seconds time we will hold on to the same guidance. So therefore you can expect a low double digit growth from us. Uh our range remains between 11 to 13%. 32:59 32 minutes, 59 seconds Understood. Um uh sorry I I am asking a few more questions. Pardon me uh for that. Uh just on the West Asia crisis uh 33:08 33 minutes, 8 seconds if you can share what is the element of price increases that you will have to take and that will be sitting in the growth in the coming quarters uh and the 33:17 33 minutes, 17 seconds impact on margins if at all how should we think about that in the near term and I'm sure uh uh 50% is covered 50% you 33:25 33 minutes, 25 seconds will have to uh take a hit initially and then it will be recovered later on. So uh just heard the walk through of the 33:33 33 minutes, 33 seconds West Asia crisis pricing growth and the margins uh and I'll stop here for my questions. 33:38 33 minutes, 38 seconds Yeah Misha on West Asia crisis we've spoken earlier as well. Uh so the first thing is that we are confident that we 33:46 33 minutes, 46 seconds will recover the full cost impact uh and we do not uh think that there will be a lag in recovery of the cost. uh your 33:56 33 minutes, 56 seconds question implied that with 50% of our customers there'll be a lag. We are making sure that our price uh increase is proactive and we do not have a lag. 34:05 34 minutes, 5 seconds Um so we remain confident that the full cost will be recovered. As far as how much will be the pricing, it's very uh 34:13 34 minutes, 13 seconds difficult to give one number because it's different by market. Every geography is behaving differently and the situation changes on a ongoing 34:21 34 minutes, 21 seconds basis. uh as I've said earlier, we'll remain agile. We will act quickly and we'll make sure that our model is 34:28 34 minutes, 28 seconds resilient to this uh crisis which we face. Um but I again want to reiterate that we will recover the entire cost increase which we see. 34:39 34 minutes, 39 seconds Got it. Wishing you all the very best. 34:41 34 minutes, 41 seconds Uh that's all from my side. Thank you very much. Thank you. 34:45 34 minutes, 45 seconds Thank you. We have next question from the line of Sububam Shagar from SML. Please go ahead. 34:53 34 minutes, 53 seconds Hello, I'm audible. Yes, audible. Yeah. Uh thank you for the opportunity. 34:58 34 minutes, 58 seconds My first question is so previously we had mentioned that uh you know to focus on increasing our gross margins and our 35:06 35 minutes, 6 seconds operating margins. Uh the management has monthly meetings where I think uh the discussion is mainly about where all we 35:14 35 minutes, 14 seconds can pay the price and the price increases. So first part is that are we still doing these uh you know proactive 35:21 35 minutes, 21 seconds monthly meetings and what kind of price increases all our customers have made in 35:30 35 minutes, 30 seconds yeah Shbam your voice is uh volatile going up and down so we couldn't hear you fully but what I understand I think 35:37 35 minutes, 37 seconds you are refering the question uh are you referring to our customer GC review that we had spoken about are you able to hear me properly Yeah. 35:47 35 minutes, 47 seconds Yes, we can hear you now. We Yeah. Yeah. I'm just asking Yeah. I'm just asking about the monthly meetings that we had mentioned about taking price 35:54 35 minutes, 54 seconds hikes throughout our customers wherever we can you know to support our margins and increase our margins. So my question was are we still conducting these 36:02 36 minutes, 2 seconds monthly meetings with the management and you know where we taking proactive decisions to increase prices across the customers and like if we are doing it 36:09 36 minutes, 9 seconds what have we achieved through it? That's my first question. So let me clarify what we had mentioned was that we have 36:17 36 minutes, 17 seconds post corona we have developed a muscle on pricing. We now review our customer wise DC on a monthly basis to make sure 36:25 36 minutes, 25 seconds that if there are any deviations any uh any abnormal margins etc. We go and initiate conversations at an early 36:32 36 minutes, 32 seconds stage. In times like this that muscle becomes very very important. So today we are even more focused on customer 36:40 36 minutes, 40 seconds margins and what is the price increase that we have to take to absorb all the cost that we are getting and that we are doing very very regularly and that is 36:49 36 minutes, 49 seconds why Hmon has mentioned that we remain confident that we'll be able to recover all the cost increase that will come from yeah I just want to say that we are 36:57 36 minutes, 57 seconds not doing monthly meetings we are doing more likely weekly or even more frequent meetings. This is a time where we have to be significantly agile. we can't wait 37:06 37 minutes, 6 seconds for a month. Uh so within our business in this crisis, it's all hands on the deck and we are being significantly more 37:14 37 minutes, 14 seconds agile than what you would have expected in the past. 37:18 37 minutes, 18 seconds Uh got it. Thanks for the answer. Uh my second question was uh could you provide any color uh on Indoid's operating margin like are we able to maintain the operating margins there? 37:29 37 minutes, 29 seconds Yeah. So I think the first thing I want to say is that we are very excited about the opportunity uh we have of this merger. It's in line with our strategy. 37:38 37 minutes, 38 seconds It takes us into more emerging markets. 37:41 37 minutes, 41 seconds It helps us expand our portfolio and in addition to that it's marginative. Uh it'll lead to faster growth for us. So 37:50 37 minutes, 50 seconds you know it has lots of positives. It's also one thing which I think we did mention in the past is that they are 37:57 37 minutes, 57 seconds completely debt-free and therefore with our um you know ratio of debt also being very low we now have a very healthy 38:04 38 minutes, 4 seconds balance sheet which will allow us to invest both for growth as well as acquisition. So we are very excited about this uh opportunity the merger 38:13 38 minutes, 13 seconds which we have uh spoken about at this point in time we are seeking a regulatory approval for it and the the 38:21 38 minutes, 21 seconds work which needs to be done for that is also on track. We are hopeful that we will have the approval within a year of 38:28 38 minutes, 28 seconds us uh filing for it. But till such time as per the uh regulation uh we have to 38:35 38 minutes, 35 seconds remain extremely uh careful that there is no um sharing of information of any kind between the two companies because 38:44 38 minutes, 44 seconds we remain independent companies till such time as we get approval. So we neither have any knowledge of nor can we 38:51 38 minutes, 51 seconds share obviously any information about Indovita now. 38:55 38 minutes, 55 seconds Okay. Got it. Just lastly two short questions. So uh the oral growth we have finally seen recovery uh good growth we 39:02 39 minutes, 2 seconds saw this quarter. So firstly how are we seeing uh the oral segment going forward like what do you believe like will we 39:09 39 minutes, 9 seconds still continue this kind of growth or what exactly is going on if you could provide some color and the second question being uh as you mentioned that 39:17 39 minutes, 17 seconds you know already have gotten good growth uh through our Thailand plant and we are still in order to get good growth from 39:23 39 minutes, 23 seconds there. So what could be the roughly the you know capacity utilization at our Thailand plant. So just last two questions. 39:31 39 minutes, 31 seconds Yeah. Uh Sha I just want to clarify the Thailand question first. What I had said earlier as well that very we are very 39:39 39 minutes, 39 seconds optimistic of what Thailand will deliver in the future. At this point in time the plant was set up in November. Since then 39:47 39 minutes, 47 seconds we've been doing certification in the plant, validation with customers and building a pipeline. All of that is going very well and on track but at this 39:56 39 minutes, 56 seconds point in time in these numbers there's not much volume from Thailand because it's still at a stage where it's being 40:04 40 minutes, 4 seconds set up and will be ready. So therefore we are very optimistic about it but uh I think it'll be wrong to assume that there is a significant volume of 40:12 40 minutes, 12 seconds Thailand in our numbers which we've uh declared so far. Uh as far as oral care is concerned, it's a very we we uh our 40:21 40 minutes, 21 seconds core is in oral care. 49% of our business comes from oral care. It's a very steady category and globally we 40:29 40 minutes, 29 seconds have very strong relationships with leading uh customers and therefore we feel that this will be a category which 40:36 40 minutes, 36 seconds will deliver uh as expected results uh in this year. So we are optimistic about oral care as well. 40:44 40 minutes, 44 seconds Okay. Okay. Got it. So, so Thailand plant uh so you mean to say that uh we can expect the growth coming in in FI27 40:51 40 minutes, 51 seconds or will it take much more longer for all the validation to clear or all of that has happened and now we are ready for it? 40:59 40 minutes, 59 seconds FI27 we will start seeing volumes of uh from Thailand in the next couple of quarters and it will scale gradually. Um 41:08 41 minutes, 8 seconds and you know as you've seen Brazil uh after 3 years is giving us fantastic growth which you are all aware of and we 41:15 41 minutes, 15 seconds uh we see no reason why Thailand will not repeat the same uh example. We will see growth over an extended period of 41:22 41 minutes, 22 seconds time. But I just want to also say that you know the expectation that in the quarter which has just gone by we would have got significant high volume uh is unrealistic. 41:33 41 minutes, 33 seconds Got it. Thanks for the clarification. All the best. 41:37 41 minutes, 37 seconds Thank you. Reminder, reminder to all the participants please stick to two per question. Reminder to all the participants please stick to two per 41:46 41 minutes, 46 seconds question. We have next question from the line of Ax Sha from Ka Rebecca MF. Please go ahead. 41:53 41 minutes, 53 seconds Yeah. Uh so thank you for the opportunity. So just on your uh guidance, the question is related to the guidance that you have given about 11 to 13%. 42:04 42 minutes, 4 seconds So sir if I just see the RM inflation that's I'm referring to the slide 27 even if I assume say the 40% that is our 42:12 42 minutes, 12 seconds cogs if that has gone up by around say 20%. You can correct me if here what is the blended inflation that we are seeing 42:19 42 minutes, 19 seconds at the company level so even if I assume a 20% inflation then so 40% goes up by 20 so 8% would come from the cost 42:29 42 minutes, 29 seconds inflation itself. So still why we are guiding for 11 to 13%. Shouldn't it be a mid- teens kind of a number? Because 42:36 42 minutes, 36 seconds even your thyline plant has to start kicking in and if we are anticipating a strong growth in BNC which I assume is the better ASP product. So still why 11 42:45 42 minutes, 45 seconds to 13% sir? Yeah that is the only question that has thank you. 42:49 42 minutes, 49 seconds Yeah I think our guidance is a long-term guidance and therefore for us to look at it every quarter and all will be 42:56 42 minutes, 56 seconds challenging. If you look at our fullear delivery this year, it's 13%. Uh and we are guiding in the long run that we will 43:05 43 minutes, 5 seconds continue to deliver low double-digit growth. Having said that, there will be quarters where if the pricing I mean 43:12 43 minutes, 12 seconds costs go up, pricing uh you know is much higher. There could be some change from there could be a variation from that. 43:18 43 minutes, 18 seconds But I think we just want to make sure that we are guiding for the long run and in the long run we are guiding that we will grow in the range of 11 to 13% 43:27 43 minutes, 27 seconds consistently and our bida growth will be slightly ahead of our revenue growth. uh deep you want to add anything on 43:35 43 minutes, 35 seconds specific information I would just say that the situation in Middle East is very very volatile and hence we don't know for how long would it continue and 43:43 43 minutes, 43 seconds hence right now what we can guide which is a steady state guidance etc cannot include the inflation exactly so that will come probably on a temporary basis 43:52 43 minutes, 52 seconds in a quarter and any blended inflation that we are seeing on the raw material at a company level if you could quantify I know it 44:00 44 minutes would be difficult but still any blended I would say it is actually different by region right. So I can tell you that 44:09 44 minutes, 9 seconds India impact is different from China impact while both are in South Asia uh Southeast Asia and uh and Europe and US 44:18 44 minutes, 18 seconds are behaving differently and hence getting to a common and this impact is actually changing almost by week. The pricing is changing by the week the 44:26 44 minutes, 26 seconds availability challenges are there and hence it's very difficult to quantify to a common global number. Okay. Thank you. 44:35 44 minutes, 35 seconds Thank you. 44:38 44 minutes, 38 seconds We have the next question from the line of Smith Gala from SPN Ventures. Please go ahead. 44:46 44 minutes, 46 seconds Yeah, thank you for the opportunity and congratulations on a good set of numbers. Uh my first question is uh on a book book picking question. Uh like our 44:54 44 minutes, 54 seconds depreciation has grown by uh 7 to 8 crores on on sequential basis. Uh and 385 crores for the full year. Uh so what 45:03 45 minutes, 3 seconds has gone along this quarter and what is the steady state cape uh what is the capex will we be looking at for f27 45:11 45 minutes, 11 seconds and will the depreciation be in line with the capex and secondly uh have we booked uh all of our merger expenses uh in this quarter? 45:22 45 minutes, 22 seconds Yeah. So first on the uh depreciation there were some large equipments which uh we got in Q4 and capitalized and 45:30 45 minutes, 30 seconds hence the depreciation in the quarter has grown sequentially as I said u when the BNC is growing at 30% we had to make 45:39 45 minutes, 39 seconds investments in capacity innovation and and flexibility at our back end and that is reflected in our 45:47 45 minutes, 47 seconds capexes as well as depreciation for FI27 I think we will continue at a slightly 45:54 45 minutes, 54 seconds elevated level of cap access because uh we are seeing the opportunity in the marketplace uh gain market share and we 46:02 46 minutes, 2 seconds will continue capturing that on the uh and your your second question was on on the merger expenses have all the expenses expenses been booked already? 46:13 46 minutes, 13 seconds Yeah on the merger we have taken uh almost all cost in this quarter. Okay, that was all comment. 46:25 46 minutes, 25 seconds Thank you. 46:27 46 minutes, 27 seconds We have next question from the line of Tushar Talwar, India investor. Please go ahead. 46:34 46 minutes, 34 seconds Hi, thank you for taking my question. Uh I I have a limited question on the dividend point which was raised earlier. 46:40 46 minutes, 40 seconds So I just wanted to understand that uh when are we expecting the merger to be complete because I assume that for that period we will not be able to issue any dividends. 46:51 46 minutes, 51 seconds Yeah, we had uh said pishar that merger would take uh about 12 months from the date of announcement which was end of 47:00 47 minutes March. So it could get completed u let's say in Q4 of this financial year. 47:07 47 minutes, 7 seconds Right sir? So the so the typical timeline generally tends to extend to at least 18 months practically. So should we be looking at no dividend for roughly 47:17 47 minutes, 17 seconds the next two financial years this one and the next one? 47:21 47 minutes, 21 seconds Right now as we understand we expect the merger to get completed by Q4 of next financial year. However obviously it is dependent on multiple approvals 47:30 47 minutes, 30 seconds happening at multiple levels. We are working uh rapidly on all the processes. We have already filed for SB approval. 47:37 47 minutes, 37 seconds We have already filed for CCI approval. 47:39 47 minutes, 39 seconds Um we are u antitrust approvals etc in multiple countries. So we have we have done all that we are moving at fast pace. Um however the timeline is not in 47:48 47 minutes, 48 seconds our hand and uh uh partition please management line is disconnected is beyond I'm reconnecting. 47:57 47 minutes, 57 seconds No problem. 48:12 48 minutes, 12 seconds Hello. Yes sir. You are a welcome. 48:14 48 minutes, 14 seconds Yeah. So basis what lawyers are guiding us. We believe that Q4 FI27 is a fair 48:23 48 minutes, 23 seconds timeline post which we will operate as a merged entity and then dividend payout will happen as per the board guidance and approval. 48:32 48 minutes, 32 seconds Understood sir. And uh so we've mentioned you know a few times and we've actually mentioned it over the years also that you know we we are always open 48:39 48 minutes, 39 seconds to the right acquisition and uh given you know we could have you know up to one one and a half years where we're 48:47 48 minutes, 47 seconds going to be accumulating a substantial amount of cash are we seriously looking at any opportunities or should we simply I mean just from a conservative 48:55 48 minutes, 55 seconds perspective just consider that there's going to be a new dividend policy after the merger and we should just look at this cash being used at that point in time. 49:03 49 minutes, 3 seconds No, we are very actively looking for acquisitions. Uh we've said this in the past that inorganic growth is a clear 49:10 49 minutes, 10 seconds part of our strategy. Uh having said that, we always say that when we are looking for a new acquisition, it should get us either into a new geography or 49:20 49 minutes, 20 seconds get us a new capability. So those are the two key uh criteria we use. As we've said uh very often in the past and many times today, BNC is a priority for us. 49:31 49 minutes, 31 seconds uh that's a strategic choice we've made. 49:33 49 minutes, 33 seconds So we will look for acquisitions which will strengthen our position in BNC uh and if they get us into new geographies 49:40 49 minutes, 40 seconds and help us get new capabilities uh that would be ideal. We also always maintain internal guideline that any uh 49:48 49 minutes, 48 seconds acquisition we do should be growth and margin accurative. So those are the conditions and criteria we have. But we are very actively looking for 49:57 49 minutes, 57 seconds acquisitions. Uh and as soon as we have something which is uh in place, we will uh come back to you and inform you about this. 50:07 50 minutes, 7 seconds Uh just one last follow-up question. Are we looking especially hard now that we don't have any dividend uh payout 50:14 50 minutes, 14 seconds obligations for the next year or so? No, I don't think that's influencing our decision. As we've said and we've said this even before the merger uh 50:23 50 minutes, 23 seconds announcement that we are actively seeking acquisitions uh after the merger actually our desire as well as our 50:31 50 minutes, 31 seconds ability goes up u because as I have mentioned uh Indova is debtree our uh debt to um you know ratios are very low 50:41 50 minutes, 41 seconds we have a very strong uh balance sheet so we have the capability to do uh acquisition in addition to that um you 50:49 50 minutes, 49 seconds know the IPL group has strong capabilities in this space which should again help us uh and it's clear part of 50:57 50 minutes, 57 seconds our strategy. So we've sought acquisitions in the past. We continue to seek acquisitions now very very actively 51:04 51 minutes, 4 seconds and the dividend policy has uh no material impact on that. 51:10 51 minutes, 10 seconds And would we be maybe looking to pay down our debt further? Is that on the cards or are we comfortable with what we 51:16 51 minutes, 16 seconds have? So that is the uh ongoing uh cash management. Uh so far we keep seeing growth opportunities. All our capexes 51:26 51 minutes, 26 seconds are organically funded. Uh BNC is kind of growing well. If we need to invest in capex we will not uh make it we will not 51:35 51 minutes, 35 seconds our growth will not be resource constraint and if we have excess cash then we'll pay off uh the debt. 51:42 51 minutes, 42 seconds All right. So thanks that's enough from my side. Thank you. 51:49 51 minutes, 49 seconds We have next question from the line of Ishan Sharma from Noama Wealth PCG research. Please go ahead. 51:57 51 minutes, 57 seconds Uh thank you for the opportunity sir and uh congratulations for uh great topline growth uh that we achieved. Sir uh while 52:05 52 minutes, 5 seconds I understand that we can't share any uh details related to Indova uh but it would be great uh help if you can share 52:13 52 minutes, 13 seconds some sense on how the beverages category where they are strong uh that has done well because going forward that would 52:20 52 minutes, 20 seconds also be an important factor to look at it. So just wanted to have some comfort on that front that how's the performance, how's the industry growth over there. 52:30 52 minutes, 30 seconds We don't have any customers in the beverages industry. It's not a category we track. Uh so you know we're not in a 52:37 52 minutes, 37 seconds position to be able to give you any information or insights about the beverages category. 52:44 52 minutes, 44 seconds Okay. So sure because uh just wanted to sense going forward uh we would also be closely tracking how's the performance 52:53 52 minutes, 53 seconds because that is going to get merged with us and uh broadly what we are targeting 11 to 13% kind of a uh growth uh that is 53:02 53 minutes, 2 seconds precisely for EPL but as a console entity uh just wanted to have some sense uh on that front that's why I was just 53:10 53 minutes, 10 seconds looking at that number post merger once the merger is completed we'll give you as much information as possible on the beverages category. At 53:18 53 minutes, 18 seconds this point in time, we have no knowledge or information on what's happening on the Indova business, their market, their 53:25 53 minutes, 25 seconds market shares, etc. And I think it'll be uh we are not in a position to be commenting on the beverages category at this point in time. But even if I could 53:34 53 minutes, 34 seconds add uh that at the time of acquisition basis the information that we've shared with the investors Indoida will grow in high single digits on a steady state 53:43 53 minutes, 43 seconds basis because it's a very strong business with number one or number two position in all the markets that it plays in. They have a very strong uh new 53:52 53 minutes, 52 seconds geography expansion strategy and hence have very solid growth plans in place. 53:56 53 minutes, 56 seconds So it's a business which we at least from a historical performance basis we looked at very very closely and we 54:03 54 minutes, 3 seconds realized that it's uh it's uh it's accative to our uh growth strategy it's accative to our margins it's accative to 54:12 54 minutes, 12 seconds our balance sheet and that's how we decided on the budget. 54:16 54 minutes, 16 seconds Uh sure thank you very much and all the very best thank you I'll call back in queue. 54:23 54 minutes, 23 seconds Ladies and gentlemen, that was the last question. I now had conference over to management for closing comments. 54:30 54 minutes, 30 seconds No, I think uh thank you for a very engaging conversation. Uh as we've said earlier, we are very excited about uh 54:37 54 minutes, 37 seconds what lies ahead for this business and we uh look forward to your continued support. So, thank you very much. 54:45 54 minutes, 45 seconds Ladies and gentlemen, on behalf of systematic institutional inquities, that concludes this conference. Thank you for joining us human district. Thank you. 54:56 54 minutes, 56 seconds Thank you.