Godrej Consumer Products Limited — Q4 FY26

Godrej Consumer Products Limited Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=ZMxkLi0CC6o Published: 7 days ago

0:01 1 second Ladies and gentlemen, good day and welcome to Goodrich Consumer Products Limited Q4 FI26 earnings call. As a 0:09 9 seconds reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:17 17 seconds Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that 0:27 27 seconds this conference is being recorded. I would now like to hand the conference over to Mr. Vishal Kadia, head of strategy and investor relation. Thank you and over to you sir. 0:38 38 seconds Good evening to all. Welcome to the conference call for God consumer products for quarter 4. We will start the call with a opening statement from 0:45 45 seconds our CEO Mr. Sudhir Sithapati. Following which we will go to a statement by by our CFO Mr. Ash Mulbari. We will then 0:53 53 seconds move to the questions. post the questions. We'll also have an ending statement. Now I now hand over the call to Mr. Sumish Sidapati for his opening statement. 1:03 1 minute, 3 seconds Good evening everybody. 1:05 1 minute, 5 seconds Uh Q4 FY26 has been a quarter of strong broad-based performance for Goodrich Consumer Products Limited fully 1:13 1 minute, 13 seconds and strategic priorities. The quarter brings to a close a year in which the consistent execution of our goodness manifesto, our focus on category 1:22 1 minute, 22 seconds development and our discipline on cost have come together to deliver profitable growth across our portfolio. In Q4 at a 1:29 1 minute, 29 seconds consolidated level, revenues grew 11% in INR terms on the back of 6% underlying volume growth. A bit of with operating 1:38 1 minute, 38 seconds margin at 21.7% and net profit after tax grew by 10% on a reported basis reflecting the 1:46 1 minute, 46 seconds underlying quality of earnings being delivered by the business. I would like to call out growth have been weaker over the last two years. This is driven by 1:55 1 minute, 55 seconds significantly stepped up investments to ignite growth and expand into new categories. We have already seen parts of the portfolio that have started to 2:03 2 minutes, 3 seconds significantly outstrip growth driven by investments and profitability driven by scale benefits and we expect this to happen across the portfolio. Our 2:12 2 minutes, 12 seconds standalone business delivered an excellent quarter driven by 8% underlying volume growth and 10% sales growth 2:21 2 minutes, 21 seconds with margins at a healthy 24.7% supported by disciplined cost management calibrated pricing actions and improved 2:29 2 minutes, 29 seconds operating leverage within the standalone business. Home care delivered 12% value growth with strong momentum across household insecticide, air fresheners, 2:38 2 minutes, 38 seconds and fabric care and consistent market share gains in our key categories. 2:42 2 minutes, 42 seconds Personal care grew 3% with personal wash continuing uh uh gaining market share on the back 2:49 2 minutes, 49 seconds of strong inmarket execution. Perfume and deodorants delivered strong double-digit growth led by perfumes with 2:56 2 minutes, 56 seconds KS99 now scaled and India. Turning to our international portfolio in Indonesia, the pricing pressures we have 3:03 3 minutes, 3 seconds been calling out over the last several quarters have now largely bottomed out and we are seeing increasingly clear signs of sterilization. The business 3:12 3 minutes, 12 seconds delivered 4% underlying volume growth and 3% sales growth and we continue to expect operating conditions to improve from FY 2027 as the market normalizes. 3:23 3 minutes, 23 seconds Our Africa, USA, and Middle East business delivered another strong quarter with topline growth of 20%. EITA 3:30 3 minutes, 30 seconds grew 2% reflecting a deliberate doubling of media spends behind our FMCG categories to build the long-term 3:38 3 minutes, 38 seconds franchise. We believe this is the right investment to make as the geography enters its next phase of growth. Our Latin America and others business 3:46 3 minutes, 46 seconds delivered 26% sales growth impact time costs in the quarter. We expect this to normalize over the coming quarters. 3:56 3 minutes, 56 seconds Looking ahead, we enter 2027 from a position of strength. Our India business is well placed to deliver continued 4:04 4 minutes, 4 seconds calibrated growth at normative EIDA margins supported by improving demand trends, a strengthening innovation 4:11 4 minutes, 11 seconds pipeline and consistent inmarket execution. In Indonesia, we expect a meaningful step up in performance as 4:18 4 minutes, 18 seconds pricing pressure abates, and our Africa, US, and Middle East business continues to deliver on its stated objective of double-digit revenue and profit growth 4:26 4 minutes, 26 seconds over the medium term. Before I close, I would like to briefly flag and then hand over to our chief financial officer, 4:34 4 minutes, 34 seconds Asset Malvari, an important presentation of change that we are adopting from this quarter onwards in a manner in which we report revenue. I would also take the 4:42 4 minutes, 42 seconds opportunity to personally invite you to our investor meet scheduled to take place on Monday 11th May. The event will be held at our headquarters and will 4:51 4 minutes, 51 seconds provide in-depth perspective on our strategic vision, recent business performance and forward-looking initiatives. Our leadership team will 4:58 4 minutes, 58 seconds share comprehensive updates on market trends, innovation, and the company's growth map. As the year closes, our unwavering focus on category 5:06 5 minutes, 6 seconds development, cost discipline, and operational excellence continues to translate into improving performance. 5:13 5 minutes, 13 seconds With strengthening demand trends, consistent portfolio action, and a clear strategic road map, we are increasingly confident in our ability to deliver 5:21 5 minutes, 21 seconds sustained profitable growth and create long-term value for all our shareholders. I now hand over to ASF. 5:28 5 minutes, 28 seconds Thank you, Sil. Good evening, everyone. 5:31 5 minutes, 31 seconds I would like to take the next few minutes to walk you through an important change in the way we are presenting the revenue from the quarter ended 31st 5:39 5 minutes, 39 seconds March 2026 only. To set the context in the FMCG industry, companies incur a 5:46 5 minutes, 46 seconds wide variety of customer related expenditure like in visibility, display arrangements, mailers and other similar 5:53 5 minutes, 53 seconds panel level trends. Industry practice on how to present these trends has historically been mixed. Some companies have recognized them as expense on a 6:02 6 minutes, 2 seconds broad basis while others have netted them off against revenue. ECPS bill 2035 presented some of these trends as 6:11 6 minutes, 11 seconds expenses. A position restrict on a set of considerate judgments that these banks do not have a direct correlation 6:18 6 minutes, 18 seconds with sales. Products would continue to be sold to our customers under existing commercial arrangements regardless of whether we incur these or not. that 6:27 6 minutes, 27 seconds pricing remains unchanged irrespective of of these arrangements and a fair value for the services received could be reasonably demonstrated. On that basis, 6:36 6 minutes, 36 seconds we have presented some of these vendor [clears throat] operating expenses similar in substance to other marketing and promotional efforts undertaken by 6:44 6 minutes, 44 seconds the company. To give an example, visibility in stock and visibility on the street as out of home spend these 6:52 6 minutes, 52 seconds can be interchangeably used. In February 2026, the expert advisory committee of the Institute of Chartered Accountants of India took up this matter for 7:00 7 minutes detailed examination. The committee considered multiple instances of customer related arrangements typically encountered in the consumer good sector 7:09 7 minutes, 9 seconds and went through a detailed evaluation of the facts and circumstances of each. 7:14 7 minutes, 14 seconds Having considered each of these in details, the committee concluded that these customer related expense should be netted off from revenue rather than 7:22 7 minutes, 22 seconds presented separately as operating expense. DCPL has carefully reviewed the opinion and presented the relevant spend 7:29 7 minutes, 29 seconds accordingly. The company is implementing the opinion of the expert advisory committee in letter and script. The impact is straightforward. revenue from 7:37 7 minutes, 37 seconds operations and the corresponding lines within other expenses both reduced by the same amount period after period. 7:45 7 minutes, 45 seconds There is no impact whatsoever on absolute aid p profit after tax total equity or cash flow. Margin percentages 7:52 7 minutes, 52 seconds would be optimally higher under the new presentation simply because the denominator is smaller while the absolute profit pool is unchanged. 8:01 8 minutes, 1 second The underlying economics of the business, our pricing, our competitive position, the cash we generally remain the same. Our strategy and the way of running our business remains the same. 8:11 8 minutes, 11 seconds There will be no changes in the way we incur the spend going forward. Also to clarify, while AM expenses optically 8:19 8 minutes, 19 seconds look lower for the quarter, if you compare this after restated, the amounts are actually oddly similar yw. 8:27 8 minutes, 27 seconds We stated revenue for the last eight quarters and the last five years on the new presentation is it set out in the investor communication accompanying our 8:34 8 minutes, 34 seconds results. There is no material impact on growth or profit measures. We are actually extremely pleased that ICA has released this opinion to this effect 8:43 8 minutes, 43 seconds which will enable better consistency and complicity across all the players. Thank you. We will now move to questions. 8:53 8 minutes, 53 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press 9:01 9 minutes, 1 second star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you 9:07 9 minutes, 7 seconds may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will 9:16 9 minutes, 16 seconds wait for a moment while the question queue assembles. 9:37 9 minutes, 37 seconds The first question is from the line of Vive M from Jaffer. Please go ahead. 9:47 9 minutes, 47 seconds Vive, your line is unmuted. Please proceed. Hi, am I audible? Yes, you are. 9:54 9 minutes, 54 seconds Hi, good evening team. Uh, first question is on the personal care bit in India. Uh so uh Sud can you just elaborate because the presentation 10:01 10 minutes, 1 second slides talk about you know soaps have done well and uh so is the case with perfume fragrances and I think it looks like that powder hair dye has actually 10:10 10 minutes, 10 seconds been uh you know has been under pressure. Uh can you just talk elaborate a bit more on this? 10:16 10 minutes, 16 seconds Yeah I think there are two things bulk of our personal care businesses soaps and that market muted despite GST. So while we have 10:25 10 minutes, 25 seconds gained some market share, our growths have been uh pretty muted in soaps uh condom sexual wellness also has been quite muted and we've declined. 10:37 10 minutes, 37 seconds It's a small business uh and hair color has had an okay quarter. Not a great quarter but an okay quarter. I think 10:45 10 minutes, 45 seconds there was some seasonality impact of marriages etc. So overall I would say a somewhat muted quarter only on our personal care business. 10:54 10 minutes, 54 seconds Okay. And today when you say India business is a let's say has grown by 10%. Uh if home care and personal care 11:01 11 minutes, 1 second have grown by 12 and 3% respectively. I think the other other portfolio has grown like 75% which has added about 2 11:09 11 minutes, 9 seconds and a half 3 percentage points right can you just elaborate on what has happened there? 11:14 11 minutes, 14 seconds I think firstly homeare business salience is increasing uh uh uh every quarter and it's you know becoming bigger and bigger on the back of some of 11:22 11 minutes, 22 seconds these things. So that is one. The second is there is being a lot of uh uh explosive growth globally on our air 11:30 11 minutes, 30 seconds freshener business uh which we don't capture indeed uh with next time onwards we'll capture it. So far as a small number but that uh as I take you through 11:39 11 minutes, 39 seconds on Monday we are just having uh very high growth on air fresheners uh globally which is broadly we make in India and we export it from here and 11:47 11 minutes, 47 seconds that has been the uh delta contributor there. 11:52 11 minutes, 52 seconds Understood. And lastly on Indonesia you know how confident are you about the turnaround given that you know there has 12:00 12 minutes been uh has been certain whatever I understand inflationary pressures also in the economy. How confident are you of the turnaround over there and outlook also on Africa business for F27? 12:12 12 minutes, 12 seconds See Indonesia I think even last quarter we had about 4% volume growth and this quarter also we've had 4% volume growth. 12:19 12 minutes, 19 seconds I mean in a steady state if we can do five to six volume growth in Indonesia this uh sales growth has to do with 12:26 12 minutes, 26 seconds currency that may turn actually in Q1 the other way around. So I think revenue growth will now lead volume growth in 12:33 12 minutes, 33 seconds Indonesia. So I think what we will get in Indonesia is kind of mix singledigit volume, high singledigit value. Uh going 12:40 12 minutes, 40 seconds forward as far as Africa goes you know we are having a very strong performance in Africa. I think uh as I said one of 12:48 12 minutes, 48 seconds the big drivers has actually been FMCG driven by airare in Africa. Uh you know so revenues have gone up that requires 12:55 12 minutes, 55 seconds advertising spends. So we have kind of investing ahead of the curve in building FMCG in Africa. Our Africa business now 13:02 13 minutes, 2 seconds is looking more and more like a conventional FMCG business to us. 13:08 13 minutes, 8 seconds Okay. And just a follow up on Africa you think constant given that the base has been high and the last few quarters have been uh quite good in Africa on growth 13:16 13 minutes, 16 seconds as well as margins. Do you think FI27 we should be mindful of the base uh given that you know the performance in the past few quarters and this quarter also 13:24 13 minutes, 24 seconds constant currency growth has been somewhat okayish. It's the uh reported number which has been very good right because of the currency moves. 13:31 13 minutes, 31 seconds Yeah. See I think the uh in FY25 we had a very depleted performance in Africa. 13:37 13 minutes, 37 seconds So the FY26 numbers come on a depleted base. I expect Africa performance to be quite strong because there are and you 13:44 13 minutes, 44 seconds know again on Monday we'll explain to you there are some underlying drivers in FMPG which are driving bulk of the growth in Africa and those will continue to compound in FY27. 13:56 13 minutes, 56 seconds Got it. Look forward to see you on uh Monday. Thank you. 14:04 14 minutes, 4 seconds Thank you. Next question is from the line of Maha from Namura. Please go ahead. 14:11 14 minutes, 11 seconds Hi sir, thank you for taking uh uh so when I when I look at your looking ahead era uh you've highlighted 14:18 14 minutes, 18 seconds the India businesses place to deliver uh constantly calibrated that become margin 14:24 14 minutes, 24 seconds given the context of uh the west Asia war and inflation that we are seeing uh should one assume that what you're 14:32 14 minutes, 32 seconds indicating is that you will be able to hold up that 21 and a half% uh norative margin in on console and and 2425 on 14:40 14 minutes, 40 seconds India business. Is that what this statement reads? 14:44 14 minutes, 44 seconds To be honest, next this quarter and next quarter I expect some pressure on Eida percentage margin, but we are seeing upsides on a 14:52 14 minutes, 52 seconds variety of other areas. We're seeing pricing growth higher than what we thought we'd get. We are seeing in certain categories like laundry and 15:02 15 minutes, 2 seconds household insecticide a lot of pressure on locals. So overall I'm expecting 15:08 15 minutes, 8 seconds lower margin still this oil remains at 100 110 but uh higher revenue and kind of netting out at reasonably good levels 15:17 15 minutes, 17 seconds as far as evida goes and I think it's just you know it's just if this oil remains at $100 to $110 that's what we expect and that go for a few months 15:25 15 minutes, 25 seconds because this $110 as we had spent in the pre-note is not something that we can't price up for over 3 4 months so it may 15:34 15 minutes, 34 seconds take 3 4 months again of a little bit of a dip in percentage margins but unlike in the case of you know very sharp palm oil prices where even if if I have a 6 15:43 15 minutes, 43 seconds 7% inflation because of palm oil it affects only one category and then that becomes really hard to take up prices in the case of crude oil it affects all 15:52 15 minutes, 52 seconds categories so that same 6 7% is spread out over every category so while we may have a percentage gross margin lower 15:59 15 minutes, 59 seconds than Q1 we of course we also lapping a weak comparator I think it will come back much sooner 16:06 16 minutes, 6 seconds than it does when there's a Palmer crisis. 16:13 16 minutes, 13 seconds Understood. Got it. Uh um and again on the personal care front uh just wanted to get a sense of now you know we had 16:22 16 minutes, 22 seconds some tailwind of restocking in third quarter that seems to have normalized. 16:26 16 minutes, 26 seconds How should one think about the growth of personal care from here on? uh is the pregnancy of hair color just because of 16:33 16 minutes, 33 seconds the marriage issue marriage seasonal impact uh and the soaps are going to be remain yeah I mean look we didn't have a backwater and hair color just a little 16:42 16 minutes, 42 seconds lower than what we usually have I think pricing growth will come into soaps pretty significantly uh uh going forward so I do expect this 16:50 16 minutes, 50 seconds uh personal care performance to improve uh I'm sorry sir we are not able to you if you're speaking. 17:03 17 minutes, 3 seconds Uh no, I I I was saying that uh you know pricing is coming back in soaps more than what we thought to the various cost 17:12 17 minutes, 12 seconds inflation both in soaps and in general personal care. So I do expect higher revenue growth than this uh in FY27 and going forward. Can you hear me? 17:23 17 minutes, 23 seconds Yeah. Thank you. Go ahead. And uh that's all for my only 17:31 17 minutes, 31 seconds Thank you. Next question is from the line of Adita Sman from CLSA. Please go ahead. 17:38 17 minutes, 38 seconds Yeah. Hi, good evening and thanks for the opportunity. So two questions. So firstly on uh home care uh uh we've seen 17:45 17 minutes, 45 seconds fairly strong growth on on on on what was a tough base as well. Uh so can you just uh maybe throw some light on what's really worked uh is it just a broad I 17:54 17 minutes, 54 seconds mean the LD uh launch being pushed wider uh and and acceptance and and in similar vein as we sort of get into summer uh 18:03 18 minutes, 3 seconds and this year there's expectation of an extended summer would that have any any seasonal impact uh uh with the extended 18:10 18 minutes, 10 seconds summer on on the inside business so uh I think quarter 4 was pretty good 18:17 18 minutes, 17 seconds and broad-based in terms of uh home care. All our businesses did well. 18:21 18 minutes, 21 seconds Household insecticide, air fresheners, fabric care. Uh both in terms of topline and bottom line, uh they did well. Uh I 18:30 18 minutes, 30 seconds think going forward if the summer is a hotter summer. Last year was a cooler summer and actually the whole of last 18:36 18 minutes, 36 seconds year cooler and I think soap volumes have been a bit muted in the overall category because of a sort of slightly 18:44 18 minutes, 44 seconds cooler year. I think uh summer Q1 is typically a small quarter for HI. So yes, it's possible that the HI numbers aren't as uh great as they should be. 18:55 18 minutes, 55 seconds But then on the other hand, there is a dynamic of local players not getting kerosene to make uh infense stick and so on. So there are some complicated 19:03 19 minutes, 3 seconds dynamics going on between the weather and West Asia. So I'm equally I'm expecting a a better quarter in terms of uh soaps. 19:13 19 minutes, 13 seconds So yeah, I mean there are two dynamics going on here. I mean short point is there's a weather dynamic and a west 19:20 19 minutes, 20 seconds Asia dynamic. Both of which are playing out positively and negatively. I think in soaps is largely the weather dynamic 19:27 19 minutes, 27 seconds is positive. In HIL the weather may be negative. West Asia may be positive. 19:32 19 minutes, 32 seconds Laundry also the west thing may be positive. 19:42 19 minutes, 42 seconds Thank you. 19:43 19 minutes, 43 seconds Next question is from the line of Aishroy from Noama. Please go ahead. 19:48 19 minutes, 48 seconds Yeah, thanks. Uh two questions. My first question is on uh Mustak and uh your other recent uh acquisition essentially 19:57 19 minutes, 57 seconds in terms of the Raymond what is the update and uh going ahead in terms of outlook how do you see that uh given these two scenarios you mentioned uh in 20:05 20 minutes, 5 seconds terms of west Asia impact on the say the cost inflation and say the summer which is likely to be on the stronger side for these two businesses how do you see it 20:13 20 minutes, 13 seconds in terms of the outlook so uh Amish maybe that must question and the ray's question I will take on Monday 20:22 20 minutes, 22 seconds when you guys are here because we have some slides on how Mustach and Raymonds are doing but let me answer because what we wanted to do was to use this call to 20:29 20 minutes, 29 seconds really answer off Q4 questions and Q1 questions and kind of uh more portfolio questions answer it in one day if that's 20:36 20 minutes, 36 seconds okay by you but short point is we're very happy with Mustach I think uh we we're also quite happy with uh PKX a 20:45 20 minutes, 45 seconds little bit of uh we had early successes in sexual wellness which seem to have dried off But good consistent volume growth on uh deodorant. I think as I 20:54 20 minutes, 54 seconds told you the way we're looking at the year there's a negative in terms of cost. There's a positive in terms of you 21:01 21 minutes, 1 second know middle distillate prices which is basically linear alkal benzene and kerosene which are used in detergents and uh household insecticide. Those 21:11 21 minutes, 11 seconds prices going up significantly and a lot of locals uh coming under from a business point of view the positive of West Asia. As far as weather 21:19 21 minutes, 19 seconds goes, if the predictions of Elmino are right, there will be uh Q1 will be a 21:28 21 minutes, 28 seconds difficult quarter for HI will be a good quarter because when it's hot and reasonably wet, actually it's reasonably good. So Q2 and Q3 should be okay. Soap 21:37 21 minutes, 37 seconds should generally be good. Indonesia does quite well during El Nino uh in general. 21:42 21 minutes, 42 seconds But you know, general consumption, if monsoons are poor, I don't know how Q4 will be. But overall the last Elino year I think we had was FY24 if I'm not 21:52 21 minutes, 52 seconds mistaken and that turned out as a reasonably good year for us. 21:57 21 minutes, 57 seconds So this is the sum of moving parts between West Asia hotter summer and Elino know understood. Uh my second question is on 22:06 22 minutes, 6 seconds soaps in Q4 Sud we have seen that in most of the FMCB categories GSC has had some benefit. I do understand in soap 22:14 22 minutes, 14 seconds local players is not very big number but if you could tell us from a compliance side at least uh is there is there some improvement because at least at 5% the 22:23 22 minutes, 23 seconds degree of uh uh bypassing the system is much lower so are you seeing some evidence of that it may not translate to 22:30 22 minutes, 30 seconds number as yet and your optimism on soap volume's recovery say in Q1 Q2 based on say Elino etc is that the main reason or 22:38 22 minutes, 38 seconds because of inflationary condition you and pay the market leader will gain market share is that the main reason uh no I 22:47 22 minutes, 47 seconds two three questions you're asking uh I mean on the second question on uh why I'm recently bullish is last year pretty 22:56 22 minutes, 56 seconds cold summer as you know and uh various beverages categories etc and ice cream categories and this one is expected to be the other way around. 23:05 23 minutes, 5 seconds uh the on your uh second question on the impact of GST to be honest 23:13 23 minutes, 13 seconds the overall impact on GST has been quite good I think the consumption you we've seen results we're also quite happy with 8% volume growth in India 23:23 23 minutes, 23 seconds so I mean the overall consumer sentiment certainly seems to have improved after GST and that is benefiting a lot of discretionary 23:31 23 minutes, 31 seconds categories like laundry liquid and airare which may not have had a direct reduction in GST prices. As far as soaps 23:39 23 minutes, 39 seconds itself goes, it doesn't seem to have shown at least for us and uh from what I'm able to read from reported results 23:47 23 minutes, 47 seconds significant improvement in uh uh volume unlike some GST categories. I think categories which are slightly 23:55 23 minutes, 55 seconds underpenetrated or which have heavy locals but certainly underpenetrated categories really have benefited from the GST price cut but 24:02 24 minutes, 2 seconds soaps and a few other universally penetrated categories the impact has been limited on the GST they will be passed on all the benefits to consumers 24:09 24 minutes, 9 seconds because hairs have seen very good benefit and that's also very well penetrated uh my I don't know whe is it 24:17 24 minutes, 17 seconds premium yeah premium has also grown strongly bah has gone very strongly That's what I also believe that it's a premium 24:26 24 minutes, 26 seconds phenomenon you know where so when you have a very premium brand and prices come down so other categories you know 24:33 24 minutes, 33 seconds you know there are other you penetrated categories like oral etc but I don't know what the impact has been on GST 24:41 24 minutes, 41 seconds and last question in terms of uh the pet food any update or you would want to share that in the analyst given it's a 24:49 24 minutes, 49 seconds big sector from a longer term but may not be that relevant currently So any update on that? 24:54 24 minutes, 54 seconds No, I think you know we are in the quest of product market fit and getting increasingly convinced we have it. We've set up a state-of-the-art plant in Narik 25:01 25 minutes, 1 second and we've shipped our volumes from there. So the more we understand this category firstly it's going to be a long burn. There's going to be a lot of uh 25:12 25 minutes, 12 seconds feel that uh and I I'll again share this on Monday but we do feel that this is a category that has a good odd for us to 25:19 25 minutes, 19 seconds really become a big business in a few years time. 25:23 25 minutes, 23 seconds I mean we I think we probably may have entered this at the right time. Right. One last follow up on palm oil. 25:29 25 minutes, 29 seconds So the feedback given was palm oil and crude oil the linkage has been broken but we have seen fantastic linkage this time also. So your thoughts and second 25:38 25 minutes, 38 seconds on the soap new formulation which number one player has taken. Uh what is the current stance you have given? There is 25:46 25 minutes, 46 seconds a big palm oil orientation. It makes much more sense now uh than ever. So what will be your stance now? 25:53 25 minutes, 53 seconds See, I think palm oil inflation after this see look at the way to look at this is crude went up from give or take $70 26:00 26 minutes let us say to $100 right which is a 40 50% increase in crude palm has gone from 4,000 myrr to about 4 a half th000 myrr 26:09 26 minutes, 9 seconds which is a 10 11% increase in palm uh some of the middle distillates which is kerosene and linear alky benzene which 26:17 26 minutes, 17 seconds is basically the stuff that competes with jet fuel costs have more than doubled. So in the scheme of things you 26:24 26 minutes, 24 seconds know palm oil of 10% is not a it's not like a deal breaker the way like you know 20 25% is it it is of 26:32 26 minutes, 32 seconds course going to be not I mean it's okay in the overall scheme of things as I said we are anticipating at $100 rent 26:40 26 minutes, 40 seconds and 4.5,000 myrr uh palm oil which still seems to be roughly where we are kind of 26:46 26 minutes, 46 seconds 7 to 9% inflation which uh between costs and you know some cuts and I think we should be able to recover. As far as the 26:55 26 minutes, 55 seconds you know formulation on competitors are not proper for me to comment on that. I think it is important to say that uh you 27:02 27 minutes, 2 seconds know we are on our path uh on soaps. I think we're happy with the margins that we have on soaps a little bit. The 27:10 27 minutes, 10 seconds volume in the soap category is a little lower than what it's typically been. We wonder whether it's because of a colder 27:16 27 minutes, 16 seconds last structure is going on but it is not an alarming change in volumes either you know so I think it's a little bit of 27:24 27 minutes, 24 seconds weight and watch in soaps it doesn't seem to be from what I see a game changer one way or the other for FY27 27:32 27 minutes, 32 seconds sure thank you that's all for myself thank you next question is from the line 27:40 27 minutes, 40 seconds of sesh des please go ahead Uh hi sir this is uh Percy Pantaki here. 27:48 27 minutes, 48 seconds Uh I just wanted to understand in light of the inflation uh while there are going to be moving 27:56 27 minutes, 56 seconds parts in terms of the percentage margin and the top line. Uh if I just look at 28:02 28 minutes, 2 seconds the rupees cr in terms of the growth y of the abida level. uh do you think 28:09 28 minutes, 9 seconds because of all these uh uh events there is any need for us as analysts to relook at the uh uh rupee million AIDA figure 28:17 28 minutes, 17 seconds or you think you will be able to sort of manage uh what you had in mind uh before the war started out 28:27 28 minutes, 27 seconds I mean the guidance on Monday but this this at this current stage this is not an alarming inflation because it is 28:35 28 minutes, 35 seconds spread out over all categories even evenly versus a typical 20 25% palm oil inflation which then one category takes 28:42 28 minutes, 42 seconds and can't price up and you know there's a limit to what and you can't really take prices on other categories and palm oil inflates. So I mean it's hard 28:51 28 minutes, 51 seconds exactly given you know you can see because there are two variables we're playing with here. I mean there's one fundamental variable which we'll talk on 28:58 28 minutes, 58 seconds Monday which is we believe our business is on a compounding uh effect of uh couple of our categories like airare and 29:06 29 minutes, 6 seconds uh actually some parts of HI and laundry etc. There's a so that's one underlying variable where we just see volume momentum building quarter after quarter. 29:15 29 minutes, 15 seconds there's another compounding factor of a potential El Nino and a third one on West Asia. These are the three dimensions we're looking at uh given so 29:23 29 minutes, 23 seconds that that does put a little bit more uh difficulty but I would not say that this is an alarming uh number as things stand today. 29:33 29 minutes, 33 seconds Got it. Second question on soaps. 29:36 29 minutes, 36 seconds Typically what happens in the soaps category is that when there is a price increase there is a significant and 29:43 29 minutes, 43 seconds measurable uh sort of volume impact of that price increase. uh do you think that this time around that volume impact 29:51 29 minutes, 51 seconds will not happen because what has happened is because of the GST the prices have got cut and now because of 29:58 29 minutes, 58 seconds inflation they will go back again but if you see pointtooint over the last 5 6 months uh for the consumer the price 30:05 30 minutes, 5 seconds would not have changed at all it goes down and then comes in a period of less than half a year or so so from a 30:12 30 minutes, 12 seconds consumer point of view if he's seeing that the MRP is roughly unchanged changed. Uh uh does that mean that there 30:20 30 minutes, 20 seconds will be no volume backlash and whatever pricing you take will be purely incremental to the top line? 30:28 30 minutes, 28 seconds I think so. I think uh in fact it may be the other way around which is GST went from 18 to 5 as I told you you know palm 30:35 30 minutes, 35 seconds oil is up 10%. Uh we may not take up the full palm oil is not the only thing we may put into soaps. So the chances are 30:42 30 minutes, 42 seconds that the price increase we take will be less than the GST benefit that we passed on to consumers. So if anything compared to October, the consumer will see a a 30:51 30 minutes, 51 seconds pre-occtober preGST will in fact see slightly lower prices of soaps. So our realization will improve because that GST doesn't obviously affect our realization. 31:02 31 minutes, 2 seconds Yeah, exactly. That that's what I was uh saying. Okay, got it. Uh uh we'll catch up on Monday. 31:12 31 minutes, 12 seconds Thank you. [clears throat] Next question is on the line of Harit Kapoor from Invest. Please go ahead. 31:18 31 minutes, 18 seconds Yeah, good evening. Uh you you mentioned you know some price increases already in place. So any indication on uh you know 31:25 31 minutes, 25 seconds what's the kind of range of price hikes on a weighted average basis that have already gone through the market? 31:33 31 minutes, 33 seconds I mean in soaps we have taken up prices by uh 31:38 31 minutes, 38 seconds uh 5%. Uh in detergents we have taken up uh prices again by 31:47 31 minutes, 47 seconds uh 6 or 7% which is now a meaningful part of our business maybe 7%. In household insecticide we have taken up 31:56 31 minutes, 56 seconds prices again by four 5%. So that's the kind of range. 32:00 32 minutes Got it. So it's already a meaningful price increases which will monitor the market as well. 32:05 32 minutes, 5 seconds Yeah. I mean like some of those price increases just happened in uh April. In fact all of them just happened in April. 32:10 32 minutes, 10 seconds So they're not reflected in the results of uh [snorts] last quarter. 32:15 32 minutes, 15 seconds Got it. Got it. And the second question is from Indonesia. You know uh you know you've slowly kind of been building back the margin also uh you know this quarter 32:24 32 minutes, 24 seconds again you know at 28% plus operating margin. uh just wanted to get your sense on you know whether uh you know the 32:32 32 minutes, 32 seconds issues on competitive intensity etc are kind of completely behind us because it doesn't it reflects like that at least in your margin delivery over the last uh over the last few quarters. 32:44 32 minutes, 44 seconds Yeah, I think this margin delivery uh has a little bit to do with revenue recognition uh which in India Indonesia 32:52 32 minutes, 52 seconds actually we already did around last even before this uh uh expert advisory committee recommendation came up we 33:00 33 minutes already did some reclassification so broadly Indonesia margins are where they are if not 28 it comparatively and then quarter four also we generally 33:08 33 minutes, 8 seconds have a spike because it's the you know a month of labar which is Ramadan there etc. So I I would say Indonesian margins are steady, volumes are back to being 33:17 33 minutes, 17 seconds steady, two quarters in a row of four, probably potential to go to five to six. 33:22 33 minutes, 22 seconds Uh but I I really do think that some of the businesses which we'll talk about again on Monday which is Africa, 33:30 33 minutes, 30 seconds international business, even Latin America etc. we may be in the cusp of much higher growth there. 33:37 33 minutes, 37 seconds Then last is bookkeeping. This depends on what your tax rate output is for for fiscal year 27. 33:45 33 minutes, 45 seconds That's all. 33:46 33 minutes, 46 seconds Sorry. The taxp likely to remain the same as this year. Uh the one which you've taken and we've clarified separately. 33:56 33 minutes, 56 seconds Thank you. Uh Har does a question. 34:05 34 minutes, 5 seconds Yeah. Yeah. Yeah. Thank you. Be sure. Thank you. Thank you. 34:09 34 minutes, 9 seconds Next question is from the line of Aves Bakshi from Sundra Mutual Fund. Please go ahead. 34:16 34 minutes, 16 seconds Hi Sud, am I audible? Yes. 34:20 34 minutes, 20 seconds Uh there's two questions from my side specifically to your Godidge portfolio. 34:25 34 minutes, 25 seconds Uh firstly in terms of your uh ARR where are we tracking versus the 500 cr exit aspiration and a subp part to it would 34:34 34 minutes, 34 seconds be the south and north south split of that current ARR number and secondly you know at what revenue scale does the fab 34:41 34 minutes, 41 seconds portfolio and ITA positive for us at a brand level. I think those are the two questions from thanks. I think our ARR 34:49 34 minutes, 49 seconds uh is about uh on GSV terms about 500 crores in quarter and maybe 450 crores 34:57 34 minutes, 57 seconds in uh NSV term. So it's very I mean it's we of course internally look at our raw sales values about 500 crores. We very very fast scaled brand. Every quarter 35:06 35 minutes, 6 seconds it's kind of doing better than the previous quarter. It's also kind of broken even in quarter 4. Again there'll be some issues in quarter one because 35:14 35 minutes, 14 seconds laundry does get pretty badly affected by uh uh crude but uh we have a good 35:20 35 minutes, 20 seconds solid path to profitability on fab and uh look we just think that the sky is the limit. This is a 4,000 cr market in 35:28 35 minutes, 28 seconds India very rapidly. We've come from nowhere to becoming 500 crores and uh I mean we feel this market is a hyperrowth 35:37 35 minutes, 37 seconds market and uh we have a lot to gain and very little to lose here. Sure. 35:43 35 minutes, 43 seconds And just a followup here. Would it be fair to assume that uh the 500 cr is more or less to do with south? So more than 50%. 35:52 35 minutes, 52 seconds So is now across the country doing extremely well in most states north Maharashtra 35:59 35 minutes, 59 seconds uh it has gone significantly beyond being a south play. 36:03 36 minutes, 3 seconds I mean south is leading it so everything is bigger. I mean because we started there in the south but this is a national play. We're very excited. uh 36:10 36 minutes, 10 seconds with the scale opportunity this provides us in the future. So thanks for taking my questions. That's it. Thank you. 36:20 36 minutes, 20 seconds Thank you. Next question is from the line of Adita Vikram from DB Securities Private Limited. Please go ahead. 36:28 36 minutes, 28 seconds Hi Shir, thank you for taking my question. Uh so if I understand it correctly, we will see margin pressures 36:36 36 minutes, 36 seconds over the next two quarters because of where the crude is. Is that is that correct interpretation of what you said? 36:43 36 minutes, 43 seconds I think percentage margins we will absolute uh also we may or may not but you know we we will try and see where we can 36:50 36 minutes, 50 seconds recover because we do expect uh both pricing growth and some kind of share growth in a few categories. 36:59 36 minutes, 59 seconds Okay. Uh thanks for that. Um however uh just one thing Sudir it has been couple of quarters now where if one category 37:08 37 minutes, 8 seconds performs something else doesn't and specifically on personal care things are not going as planned right so what is 37:17 37 minutes, 17 seconds the long-term strategy because it does not the roadblocks now or the blockers which we will see in next two quarters 37:25 37 minutes, 25 seconds will only amplify anything which doesn't perform. So what is the thought on that front? 37:32 37 minutes, 32 seconds I mean look you know in every quarter you'll have some category performing. I think you have to look at the overall numbers. You know in uh India we delivered 8% volume, 10% sales growth 37:41 37 minutes, 41 seconds and 18% eida. Across the world you know we delivered 11% revenue and 10% eida. 37:48 37 minutes, 48 seconds There will always be some category in some quarter that uh doesn't do well. I think uh as long as most geographies are 37:55 37 minutes, 55 seconds rangebound and more you know then one one should be okay with it because these things uh they do change a little bit. 38:03 38 minutes, 3 seconds So the personal care number is a bit lower than what we thought but this you know three can go to 78. I mean a personal care structurally is a slightly 38:11 38 minutes, 11 seconds lower slow growing business for us than home care because of the weightage of soaps. But I'm not unduly worried about uh personal care. It's at the lower end 38:19 38 minutes, 19 seconds of what it should be. It may be a little bit higher than this on the long term. 38:23 38 minutes, 23 seconds We do expect our homeare businesses to really grow much faster and so one can expect in the long term our homeare businesses to grow faster 38:31 38 minutes, 31 seconds than our personal care businesses just because of the weightage of scopes. But uh it's it's not a it's not one of those things that you know if if you have a 38:40 38 minutes, 40 seconds you know one part of business doing well another part doing badly and the overall business doesn't do well then you know it's a problem. But if the overall business is you know the two big numbers 38:49 38 minutes, 49 seconds for us are India UVG which at 8 is good and you know overall AIDA which at 10 is okay. So I guess that's how we look at it. 39:00 39 minutes Okay. And and just one basically on personal care itself, right? Uh you have been bonus in your 39:07 39 minutes, 7 seconds commentary for past couple of quarters on soap doing well or so picking up, right? But it is not doing as well as we 39:15 39 minutes, 15 seconds thought and it's impacting the overall [clears throat] growth if you look at it because the sheer rate of soaps, right? 39:22 39 minutes, 22 seconds Is there any plan uh from the management side to increase the marketing spends or increase the awareness or is there some 39:29 39 minutes, 29 seconds sort of a strategy because this apparently is one pain point which has been there for past couple of quarters at least to if I can recollect it 39:38 39 minutes, 38 seconds properly right so if there is any strategy around this that we will spend more on the marketing side to enhance the visibility or enhance the performance. 39:49 39 minutes, 49 seconds See I mean there are a couple of things on soaps. One is last year we genuinely think was uh the temperature affected the overall category volumes because 39:57 39 minutes, 57 seconds when we look at the data it is a bit anomalous. Uh FI24 was a good year in terms of volumes. FI25 was okay. FI26 40:05 40 minutes, 5 seconds okay and in a couple of months. So so there is a temperature impact there and also there is a movement of soaps to liquids. So again we'll talk about it on 40:13 40 minutes, 13 seconds Monday. The biggest thing that we'll have to do is to look at the overall skin cleansing business. We're having a lot of green shoots on synthol body wash. You know, we doing extremely well 40:22 40 minutes, 22 seconds on magic hand wash. And now with Mustach, we have an acquisition in face wash which is also kind of very promising. So really we have to change 40:30 40 minutes, 30 seconds our lens from soaps to cleansing. Uh and look at the growth there. 40:38 40 minutes, 38 seconds But but nothing more to do on the marketing spends or visibility or anything else, right? It's just the scope is really to kind of gain 40:46 40 minutes, 46 seconds market share consistently. So not to lose market share uh but you know the the growth of the market is the growth of the market. So between cleansing 40:54 40 minutes, 54 seconds between other categories we'll have to compensate and you know as we'll show you on Monday there are some categories which are you know on hyperrowth and 41:03 41 minutes, 3 seconds those are compounding every quarter. So the impact of that is becoming bigger and bigger every quarter. 41:10 41 minutes, 10 seconds Okay. Okay. Thanks so much for the best of Thank you. Next question is from the lineup from BNP Paraba. Please go ahead. 41:23 41 minutes, 23 seconds [clears throat] 41:23 41 minutes, 23 seconds Thank you. Uh our next question on margins. uh in the previous two instances when groups crossed $100 in 32 41:32 41 minutes, 32 seconds you saw about 200 with cons margin contraction your comments indicate that uh this time the margin contraction may 41:39 41 minutes, 39 seconds not be meaningful what's different this time is there a change in business or raw material mix or is it palm oil high in the days or 41:47 41 minutes, 47 seconds GST rate cut is making it easier to raise prices any comments on this I think a combination of the palm oil hike so far is a 10% palm oil hike like in 22 and all it had gone up 20 25%. 41:59 41 minutes, 59 seconds So that is not the extent of palm oil inflation we're seeing today. 42:04 42 minutes, 4 seconds Uh and I think uh the relative salience of soaps is lower than what it used to be because we are now becoming a larger 42:13 42 minutes, 13 seconds and larger homeare business. So as a combination of all these I still expect as I told you uh lower than normative 42:19 42 minutes, 19 seconds margins on uh Q1 and probably Q2 though it may not be very different from what 42:26 42 minutes, 26 seconds it was last year but uh I think that's the reason 42:33 42 minutes, 33 seconds [clears throat] 42:36 42 minutes, 36 seconds increase in cost is there I'm sorry to interrupt sorry that question I don't Yeah, 42:45 42 minutes, 45 seconds the question was on detergent. Uh you can it's quite high the raw material cost has gone up meaningfully 50%. 42:53 42 minutes, 53 seconds Wanted to understand if there is more efficient required in I mean yeah we will we will uh kind of you know do this in a couple of steps. 43:06 43 minutes, 6 seconds uh we are of course you know committed to pricing it right but one is you know we're still no the market leaders in this category so we will be led by the 43:14 43 minutes, 14 seconds market leader there understood actually on HI like molecule has been around now for more than a year 43:22 43 minutes, 22 seconds how has it impacted the HI like categories market share growth acceleration or uh like what kind of beans you've seen what kind of traction 43:31 43 minutes, 31 seconds you've seen both in case of uh infant stick as well as in case of lvs and Do you do you expect continued acceleration, continued gain from this or now it's in the base? 43:42 43 minutes, 42 seconds Yeah, I mean we again talk about this in mundane detail but you know having looked at our numbers now for a few quarters we conclude that in general RNF 43:51 43 minutes, 51 seconds has worked uh worked better in some places than others but overall it has worked and we feel reasonably confident that from a kind of zero to low 44:00 44 minutes singledigit growth category household insecticide is at least a high singledigit category and you know over a period of time can compound into a 44:07 44 minutes, 7 seconds double uh uh digit category. So we do feel that the household insecticide 44:14 44 minutes, 14 seconds problem that plagued us for 10 years is probably behind us. Though of course there will be whether you like it or not a volatile category in terms of season. 44:22 44 minutes, 22 seconds So there'll be ups and downs in seasons but that entire mean is I think going to change uh pretty meaningfully. That's what we've been observing because we've been observing the spread over season. 44:31 44 minutes, 31 seconds We have a seasonality index on and we've been observing a meaningful variance on our total business over 44:39 44 minutes, 39 seconds seasonality since we launched RNF. I mean it's taken some time bit of time to happen but we do feel one of our main 44:46 44 minutes, 46 seconds themes on Monday is to show you in detail on why we believe the uh HI uh issues may be behind us. 44:55 44 minutes, 55 seconds Understood. Uh thank you. That's it for me. 45:00 45 minutes Thank you. Before we take the next question, a reminder to all the participants, if you wish to ask a question, please press star and one. The 45:10 45 minutes, 10 seconds next question is from the line of Nihal Maher Cham from HSBC. Please go ahead. 45:17 45 minutes, 17 seconds This has to be evening. I had two questions. Uh the first was on soaps again that in Q3 you commented that you 45:25 45 minutes, 25 seconds know the packet growth was uh better than the volume growth. So just trying to understand that with the full impact of the gramage increase sort of playing 45:32 45 minutes, 32 seconds out in Q4 uh what led to maybe the growth not accelerating versus Q3 that impacted or the unit growth sort of saw 45:39 45 minutes, 39 seconds deceleration it's still sitting on very high uh gramage growth last year at the same 45:47 45 minutes, 47 seconds period see what happened in soaps is between Q4 Q1 and Q2 uh basically Q4 of FY 24 sorry FY25 45:57 45 minutes, 57 seconds Q1 and Q2 two we've had very sharp gamage cuts. So we're still lapping bases uh where our damage on small packs 46:04 46 minutes, 4 seconds is significantly lower than what it was in Q4 of last year. So one of the reasons why volumes are still a little bit muted on large packs they're better uh than they are on small packs. 46:16 46 minutes, 16 seconds Even adjusting for the GST why the gravities for the small packs are lower. 46:21 46 minutes, 21 seconds Yeah. Yeah. because the the the kind of hikes that we took in or drops we took in uh soaps between Q3 of FY 25 and Q2 46:31 46 minutes, 31 seconds of FY26 when palm prices shot up if I'm not mistaken for example gold number one 46:39 46 minutes, 39 seconds uh 10 rupees fell from uh something like uh 55 g to 40 g and we took it back up 46:47 46 minutes, 47 seconds to I think 46 or 47 so it's still a good 15 20% lower than what it was last year. 46:54 46 minutes, 54 seconds Understood. The second question is I'm sorry, can you use your handset mode please? You're not audible properly. 47:07 47 minutes, 7 seconds Sorry for that. Is this better? Yeah, please proceed. Thank you. 47:11 47 minutes, 11 seconds uh you alluded to the individual components of RM of how they've inflated uh whether it is for LP or for P farm but on a blended basis what is the 47:19 47 minutes, 19 seconds inflation we are at present facing for the company as a whole I think we put that out in our 47:26 47 minutes, 26 seconds results 7 to 9% is what we're seeing even on the spot prices even on the spot I mean like spot is 47:34 47 minutes, 34 seconds changing every day but even on an average I mean spot price let's just say at a 100 to 105 rent and 4,500 uh CTO that's what I see. 47:45 47 minutes, 45 seconds Got that. And and just one final question on FAB. Uh if I heard you right, you mentioned that obviously the pricing choices that you plan to take 47:52 47 minutes, 52 seconds will be more determined by how the market reacts rather than how the RM sort of behaves. 47:59 47 minutes, 59 seconds Yeah. Yes. I mean see when we are leaders we lead price. When we followers we to follow price. 48:05 48 minutes, 5 seconds That's sir. Thank you so much. 48:10 48 minutes, 10 seconds Thank you. Next question is from the line of AI Mata from Mcquaryi. Please go ahead. 48:17 48 minutes, 17 seconds Yeah. Hi Vir. Thanks for the opportunity. Uh you know just had one simp basic question and most of them others have been answered. Uh you know 48:25 48 minutes, 25 seconds while you're seeing margin under stress over the next coming quarters you know you do have price hikes whereing sales growth. In such a scenario, do you see 48:33 48 minutes, 33 seconds consolidated aida growth also following a similar trajectory of margin that is moderating from 43 levels in the person or how should I see that? 48:41 48 minutes, 41 seconds Yeah, I think so because of course India gets hit the most but uh I think the same principle will be there percentage 48:48 48 minutes, 48 seconds and uh uh we will have uh uh absolute eida margins are quite high. 48:59 48 minutes, 59 seconds Got it. Okay. Perfect. That's all my friends. Thank you very much. 49:06 49 minutes, 6 seconds Thank you. 49:12 49 minutes, 12 seconds Next question is from the line of Adept Vikram from DB Securities. Please go ahead. 49:17 49 minutes, 17 seconds So, Subir one follow up. Uh you are not that you will take some nice hides u and you have already taken some over the 49:26 49 minutes, 26 seconds last two quarters, right? I just wanted to understand in the specific categories like not hitting a price hike. Uh are 49:34 49 minutes, 34 seconds you seeing some sort of a price and elacity or are you seeing some sort of a drying up on volume based on whatever we have done so far? 49:43 49 minutes, 43 seconds today but I don't expect drying up on volumes to be honest because as I told you you know I've seen a couple of these 49:49 49 minutes, 49 seconds hyperinflations on crude before there is been uh there are market share gains versus locals in some categories you get 49:58 49 minutes, 58 seconds so maybe volumes will be a little lower than what we wanted at the beginning of the year maybe uh revenue growth will be a little higher than what we thought we'd get at the beginning of the year 50:06 50 minutes, 6 seconds maybe EIDA will be as things stand slightly lower than what we thought but still pretty good or maybe it'll be where it is but uh that that's what I'm anticipating at current costs. 50:19 50 minutes, 19 seconds Okay. Thank you. That's I appreciate. 50:25 50 minutes, 25 seconds Thank you. That was the last question for today. I now hand the conference over to Mr. Vishal Kadia for closing comments. Over to you sir. 50:34 50 minutes, 34 seconds Thank you everyone. We hope we have been able to answer all your queries. In case of any further queries, please reach out to us on our uh contact details. Again, 50:43 50 minutes, 43 seconds I would like to invite you all to our analyst investor meet on Monday and we hope to see you there. Thank you and good evening. 50:53 50 minutes, 53 seconds Thank you very much. On behalf of God Consumer Products Limited, that concludes this conference. Thank you all for joining us today and you may now disconnect your lines.