Jyothy Labs Ltd — Q4 FY26

Jyothy Labs Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=ZXvlPtvM_RI Published: 9 days ago

0:02 2 seconds Ladies and gentlemen, good day and welcome to the Joti Labs Q4 FY26 earnings conference call hosted by ICICA 0:11 11 seconds Securities Limited. As a reminder, all participant lines will be in the listenon mode and there will be an 0:18 18 seconds opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an 0:26 26 seconds operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. I now 0:33 33 seconds hand the conference over to Mr. Ash from ICX Securities. Thank you and over to you sir. 0:42 42 seconds Yeah, thank you Gesh. Uh hello and good afternoon everyone present on the call. 0:47 47 seconds I uh on behalf of ICIC securities welcome you on Joti Labs Q4 FY26 earnings call. I would like to thank the 0:56 56 seconds management to give this opportunity of hosting the call. From the management we have with Miss Joti chairperson and 1:04 1 minute, 4 seconds managing director and Mr. Pawan Agarwal CFO. I now hand the call over to Joti ma'am for her opening remarks. Thank you. 1:15 1 minute, 15 seconds Thank you Ashto. Uh good afternoon everyone and a warm welcome to the Q4 and FY26 earnings call of Jotilabs 1:23 1 minute, 23 seconds Limited. Our financial results and investor presentation are available on our website and the stock exchanges. I 1:31 1 minute, 31 seconds trust you have had the opportunity to review them. Let me start with the broader environment. FY26 was a year of 1:38 1 minute, 38 seconds volatility for the FMCG sector. Urban demand was uneven for a large part of the year. At the same time, input costs 1:46 1 minute, 46 seconds remain elevated with a sharp increase towards the end of the year due to the West Asia situation. Despite these 1:55 1 minute, 55 seconds headwinds, we maintain steady volume growth. This was supported by calibrated Gramage actions and a gradual 2:02 2 minutes, 2 seconds improvement in demand, especially in the second half of the financial year. Rural markets remained relatively resilient, 2:10 2 minutes, 10 seconds supported by monsoons and government spending. GST rate cuts also helped improve demand particularly in personal 2:18 2 minutes, 18 seconds care segment from the third quarter onwards. For the full year, our revenues grew by 3.5% in value terms and 6% in 2:27 2 minutes, 27 seconds volumes. Fabric Air grew by 8% in value and 9.5% in volumes, led by strong 2:34 2 minutes, 34 seconds growth in liquid detergents. Liquids nearly doubled during the year. Dishwash declined by 1.3% in value despite 6% 2:44 2 minutes, 44 seconds volume growth due to intense competition, price cuts and higher grammage across market. Personal care 2:52 2 minutes, 52 seconds recovered well with Imago franchise growing by 5% in value and 1.6% in volumes. We expect FY27 to be a stronger 3:02 3 minutes, 2 seconds year for the segment. In household insecticides, our focus was on reducing losses and improving the mix. While HI 3:10 3 minutes, 10 seconds sales declined by 1.3%, losses reduced significantly from 25 cr last year to about 5 cr this year. Q4 saw mixed 3:20 3 minutes, 20 seconds demand environment. Consumption remained steady overall. We had started seeing early signs of recovery particularly in 3:28 3 minutes, 28 seconds the urban markets after the GST changes in September. That trend continued into Q4 but towards the end of the quarter 3:37 3 minutes, 37 seconds the situation became less predictable due to the developments in West Asia. 3:42 3 minutes, 42 seconds While this region does not have any material direct impact on our revenues, the indirect impact through crude prices, packaging costs and currency movement is significant. 3:54 3 minutes, 54 seconds Crude prices moved up sharply and that has started reflecting in key inputs like lab, PP and PE. Packaging costs 4:03 4 minutes, 3 seconds alone account for nearly 15 to 20% of our material costs. As stated earlier, around 50 to 60% of our inputs are crude 4:11 4 minutes, 11 seconds linked directly or indirectly and therefore a sharp increase in the crude prices along with a weaker rupee has put pressure on the overall cost structure. 4:21 4 minutes, 21 seconds Looking ahead, there is some uncertaintity. 4:24 4 minutes, 24 seconds Higher crude prices could keep inflation elevated and may affect consumer spending. This is also a risk to rural 4:32 4 minutes, 32 seconds demand if farm income gets impacted in the coming quarters. That said, demand conditions through most of the Q4 remain 4:40 4 minutes, 40 seconds stable and we saw gradual improvement in the consumption especially in urban markets. Fabricad delivered strong 4:47 4 minutes, 47 seconds growth with 14.4% 4% value growth and 17.8% volume growth. Both main wash and postwash contributed. 4:57 4 minutes, 57 seconds Liquids continued their strong momentum while powders and bars also supported the growth. Our key brands Henko, Ujala, Mr. White and Moite performed well. 5:08 5 minutes, 8 seconds Dishwash saw a 5% volume growth but value growth remained flat. This was largely due to price reductions, gram increases and promotional offers. 5:17 5 minutes, 17 seconds Competitive intensity remains high with several players reducing MRPs and offering more quantity at the same 5:24 5 minutes, 24 seconds price. During the quarter, we strengthened the EXO portfolio with the launch of the bioenzyme based dishwash 5:31 5 minutes, 31 seconds formats across formats. Personal care saw a strong recovery. 5:37 5 minutes, 37 seconds The segment grew by 20% in value and volume in Q4. The impacts of GST related disruption seen earlier in the year 5:46 5 minutes, 46 seconds fully settled and demand improved meaningfully from December onwards. The Margo franchise performed well supported 5:53 5 minutes, 53 seconds by both core variants and refresh back for uh Margo originals. This will help improve visibility and support future 6:00 6 minutes growth. Household insecticides grew by about 3% in value while while coils continue to decline. Growth in liquid 6:08 6 minutes, 8 seconds vaporizer more than offset this. The mix continues to improve with LB now about 55% of the portfolio compared to 50% 6:18 6 minutes, 18 seconds last year. This is the moving this is moving the segment closer to profitability. 6:24 6 minutes, 24 seconds Channel trends remain consistent. Modern trade, e-commerce and quickcommerce continued to grow strongly. 6:31 6 minutes, 31 seconds These channels are becoming an increasingly important part of the portfolio. General trade also continued its recovery in Q4 with growth across 6:40 6 minutes, 40 seconds regions. Let me now cover the financial performance. For Q4, revenue stood at uh 6:47 6 minutes, 47 seconds 717 cr up 7.7% yearonear. Gross margin was at 45.2% 6:56 6 minutes, 56 seconds down about 400 basis points driven by input cost inflation and lower realizations. Employee cost was 11.9% of 7:06 7 minutes, 6 seconds revenue. Other expenses were at 12.8% of revenue. A&P spend was 7% compared to 8% 7:13 7 minutes, 13 seconds last year. Eida Eida margin stood at 13.5% down by about 330 basis points year. 7:22 7 minutes, 22 seconds For whole year 2026, revenue stood at 2,944 cr up by 3.5%. 7:30 7 minutes, 30 seconds Gross margin was 47% down 320 basis points. EIDA margin was 15.3% down by 7:38 7 minutes, 38 seconds 230 basis points. Patch to debt 333 crores. Net working capital improved to 7:45 7 minutes, 45 seconds 15 days a reduction of 4 days. We remain debtree with a strong cash balance of,000 cr. The board has recommended a 7:54 7 minutes, 54 seconds final dividend of rupees 3.5 per share for FY26. 7:59 7 minutes, 59 seconds Input cross cost pressures increase sharply towards the end of the quarter. 8:04 8 minutes, 4 seconds We have taken selective price increases in March and their impact will be seen in Q1 FY27. 8:11 8 minutes, 11 seconds We may take further actions depending on how input costs move. However, given the current demand environment, it is 8:20 8 minutes, 20 seconds difficult to pass on the full impact of cost increases immediately. This is especially true in lower unit packs where price points are fixed. As a 8:29 8 minutes, 29 seconds result, margins are likely to remain under pressure in the near term. Also, there is typically a lag between cost 8:36 8 minutes, 36 seconds increases and pricing actions. We will continue to manage the pre margin pressure through a mix of price, pricing, cost control, operation, 8:45 8 minutes, 45 seconds operating leverage, and calibrated media spends. Looking ahead, the environment remains uncertain. Input costs, currency 8:53 8 minutes, 53 seconds movements, and geopolitical developments will continue to influence the business in the near term. We expect the full impact of recent developments to be visible in Q1 FY27. 9:03 9 minutes, 3 seconds Our focus remains on scaling recently launched NPDs, improving general trade productivity and sustaining volume 9:10 9 minutes, 10 seconds growth amid price in price hikes while maintaining brand investments in a calibrated manner to support medium-term 9:18 9 minutes, 18 seconds growth. We remain cautiously optimistic about FY27 while staying watchful of the external environment. Before I close, I 9:26 9 minutes, 26 seconds would like to thank our teams for their commitment, our trade and distribution partners for their support, and our investors for their continued trust. 9:34 9 minutes, 34 seconds With that, I conclude my opening remarks. We'll now be happy to take your questions. Thank you. 9:42 9 minutes, 42 seconds Thank you very much. We'll now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the on the touchstone phone. 9:52 9 minutes, 52 seconds If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use hands while asking a question. Ladies 10:00 10 minutes and gentlemen, we'll now we'll wait for a moment while the question Q assembles. 10:08 10 minutes, 8 seconds The first question is from the line of Vishal Kutka from Ask Investment Management. Thank you and go ahead. 10:16 10 minutes, 16 seconds Yeah, thank congrats on a decent set of numbers. Uh three for question. uh firstly on the fabric care uh excellent 10:24 10 minutes, 24 seconds numbers on the volume front around 18% volume growth and I think once in a lifetime opportunities available with regards to conversion from powder to liquid what more can be done so that we 10:33 10 minutes, 33 seconds grab heft hefty market share in the liquid detergent segment I understand you have doubled what do you call the business size and fally on a lower base 10:41 10 minutes, 41 seconds what more can be done from your onwards I think couple of products you launch that pjala conditioner young conditioner that you launched so I just wanted more 10:48 10 minutes, 48 seconds insight from you on that uh Secondly, second question on the dishwashing segment. Due to competitive pressure, I think uh we have increased the gramage 10:56 10 minutes, 56 seconds from the third quarter onwards. The margins have collapsed out over here from 18 the margins are down to around 10% for the quarter. Uh so what action 11:04 11 minutes, 4 seconds can be taken so that the margin gradually require I understand there are challenges with regards to competition with the inflation front but one of the action that you have taken is launching 11:12 11 minutes, 12 seconds launch of maybe X4 liquid. If you can elaborate a bit what is the game plan because since you already have drilled in the basket so how do you plan to 11:19 11 minutes, 19 seconds scale up both both the brands uh third question is on the HI third question on the HIP piece now since you have turned profitable on HI 11:28 11 minutes, 28 seconds uh during this quarter what's the long-term growth path as well as profitability path for the HIPS from your onwards and last question madam is 11:36 11 minutes, 36 seconds on the cash patterns that we have of approximately 1,000 cr that we are holding uh I think we've been I think uh scouting for acquisition for a while. Uh 11:45 11 minutes, 45 seconds what is the hindrance or what is what is what do you call prevailing us from being an M& doing an MA activity? Thank you. 11:57 11 minutes, 57 seconds Hi Vishal. Uh so fabricare uh is the first question that you asked. Liquid detergents for us has done really well. 12:04 12 minutes, 4 seconds Uh it is also to uh note that we that segment is growing and the uh the detergent powder segment as such is uh 12:13 12 minutes, 13 seconds you know seeing a marginal uh degrowth uh because you see most of the conversions from powder to liquid 12:19 12 minutes, 19 seconds happening. So u that uh and we have grown healthy. So the thing is that we've been investing uh on the brands uh 12:28 12 minutes, 28 seconds and that has helped us uh you know yield that uh results and uh it's not just on uh detergent uh liquid detergents it's 12:37 12 minutes, 37 seconds across the fabricare portfolio also our young and fresh also has done really well our uh u Dr. wool uh the liquid 12:46 12 minutes, 46 seconds detergent for woolen clothes and and u uh special clothes uh that we introduced in uh in the third quarter also has done 12:55 12 minutes, 55 seconds well. So if you see fabricare across we have done well um and very happy to see double digit growth also on that and 13:03 13 minutes, 3 seconds that will continue uh because that market is going to adopt more and more people are uh getting into liquid 13:10 13 minutes, 10 seconds detergents uh as a as it makes it easier for them to use. It's uh also milder on the hands. So you will see lot of action 13:18 13 minutes, 18 seconds in the liquid detergent space and uh we are there to uh you know grow along with that 13:26 13 minutes, 26 seconds on dishwash yes the gramage uh reductions uh the increases have happened uh and the price reductions 13:35 13 minutes, 35 seconds have happened. So if you see compared to last year versus this year that has been the uh the trend but uh we are you know 13:44 13 minutes, 44 seconds happy to say that we have maintained the market share and we are growing in fact in many markets. So uh uh that's good uh 13:53 13 minutes, 53 seconds and uh for some time it will remain especially because of the uh West Asia crisis that uh we'll see uh you know 14:02 14 minutes, 2 seconds that will be there for some time but uh we are doing well in the so no concern 14:08 14 minutes, 8 seconds there on the hi so on hi as madam on this excellent brill if you can 14:16 14 minutes, 16 seconds just elaborate what is the game plan because already the brill in the uh dishwashing liquid the brand is already there. So now we introduce Exol liquid 14:24 14 minutes, 24 seconds out over there. Just wanted your thoughts how do you what do you plan to scale up this brand also liquid? 14:31 14 minutes, 31 seconds Yes. So Exo is uh Exo Liquid is quite differentiated uh compared to PR. Uh PR 14:37 14 minutes, 37 seconds was uh is at a premium and Exo will be uh in direct competition with the market leader. uh and we have bioenzymes uh 14:47 14 minutes, 47 seconds included in the formulation. It makes the washing process easier. Uh so that is one that is the differentiator. Uh 14:56 14 minutes, 56 seconds our focus is also to grow because you see the dishwash liquid segment also growing. So across if you see across formats the liquid segments are growing 15:04 15 minutes, 4 seconds and we want to capture it uh in every possible way. So for a exo bar user if 15:11 15 minutes, 11 seconds you see uh it is uh you know there are no much exo not being there in liquid 15:18 15 minutes, 18 seconds was a bigger uh gap rather so for any exobar user to upgrade uh you know it 15:26 15 minutes, 26 seconds was high time to launch exoli liquid so that is one exoliquid is antibacterial and it has bioenzymes but it is more on 15:34 15 minutes, 34 seconds decreasing and on premium u you know liquid uh segment. So that is the differentiation and we wish to see 15:43 15 minutes, 43 seconds that both the brands grow. We'll be investing on both the brands. Yeah. 15:50 15 minutes, 50 seconds On uh hi your specific question on uh the profitability and uh long-term plan. 15:57 15 minutes, 57 seconds So as we had stated uh some three four quarters before that we are working on a plan to turn this category profitable 16:06 16 minutes, 6 seconds and uh you know that plans you know is has started delivering some results. Uh 16:13 16 minutes, 13 seconds in terms of our focus uh we have been uh we have been focusing more on uh liquid uh vaporizer and we have taken some 16:22 16 minutes, 22 seconds aggressive price increases on coil segment that of course meant some decline in volumes and value in coil but that has been more than offset by uh 16:30 16 minutes, 30 seconds liquid vaporizer. Our uh NPD Maxo aerosol is also uh is a is a profitable product and is is doing reasonably well 16:39 16 minutes, 39 seconds although it's too early to come in because there are only couple of quarters the product is available. Um LV uh in quarter four if you see the volume 16:48 16 minutes, 48 seconds growth has been in high teens and for the full year also if you see we are almost touching double digits. So the strategy seems to be playing out well 16:56 16 minutes, 56 seconds and we had indicated that uh by the end of FY27 this category will be profitable but it 17:02 17 minutes, 2 seconds seems that you know the the if if the last two quarters are anything to go by. 17:09 17 minutes, 9 seconds I think uh we are on the right track and probably uh it can help us deliver the profitability target much earlier. Uh 17:17 17 minutes, 17 seconds your last question around the cash balance of,000 cr. Yes, you are right and we have been we have been scouting for right assets and very aggressively 17:26 17 minutes, 26 seconds we are looking for right asset but as we have mentioned earlier uh we we are going to pick up the asset uh which 17:32 17 minutes, 32 seconds actually adds uh you know adds to the overall shareholders value and we are in active dialogues with couple of them and 17:40 17 minutes, 40 seconds let's see you know how it pans out and an appropriate time we will let the street know about our uh acquisition decision. Thank you. 17:47 17 minutes, 47 seconds Thank you. Thank you. Just thank you for the insight. Just have a last question on the margin overall margin although to highlight that uncertaintity with regards to a lot of things but madam if 17:56 17 minutes, 56 seconds you can broadly provide a guidance for F27 we assume margin band of 13.14 for F27 that's a broader margin band that 18:03 18 minutes, 3 seconds we're targeting vish your question is valid but at this point of time looking at this situation uh you know we all we are all aware you 18:12 18 minutes, 12 seconds know the way input prices and packing metal prices are behaving the way crude is behaving um we are also taking price increases. All these factors put 18:21 18 minutes, 21 seconds together there is extremely high volatility. At this stage we'll be constrained to give any guidance on margin front. Maybe once the external 18:30 18 minutes, 30 seconds environment settles down a little bit hopefully it should in couple of quarters time then we'll be able to guide the street on our margin target for F27. 18:39 18 minutes, 39 seconds Very good. Got it sir. Thank you. Wishing you all the best. Thank you. Thank you Vishad. 18:46 18 minutes, 46 seconds Thank you. The next question is from the line of Rushab Sha from Burgger Pis. Thank you. Please go ahead. 18:54 18 minutes, 54 seconds Hi, thanks for the opportunity. Uh uh just to continue on the previous participant uh question. Fabric as we 19:03 19 minutes, 3 seconds know it's a clearly make or break segment for the company. So uh how typically is the pricing in the detergent category versus the surf tide? 19:14 19 minutes, 14 seconds Are they at a premium or a discount? And also uh I had read somewhere that the prices of the liquid detergent have 19:22 19 minutes, 22 seconds collapse because of the new players who have entered the market. So how is Henko's position out here and uh what 19:32 19 minutes, 32 seconds steps are we taking to defend the market share in the fabric air uh segment and the same question would be valid for the dishwashing segment as well. 19:46 19 minutes, 46 seconds Yeah. So, hi Rishab. Um, fabricare segment uh all of our brands that are operating uh it is not just Henko. We 19:54 19 minutes, 54 seconds have various brands at different uh segments and all are uh you know priced 20:01 20 minutes, 1 second uh same at parity to competition. Uh in fact in some markets we are at premium as well. So uh that said I hope that 20:09 20 minutes, 9 seconds answers your uh uh you know question there and liquid detergents yes it has 20:15 20 minutes, 15 seconds been competitive uh the intensity was there from local players as well but as we go along uh you know consumers also 20:24 20 minutes, 24 seconds see where the quality is. There are many brands especially at the local uh level that you know they had hardly anything 20:32 20 minutes, 32 seconds in the in the product and the pricing was set at a very low level. Uh you know end of the day consumers know what 20:39 20 minutes, 39 seconds quality is and where uh you know which brand to be chosen and there I think u if it were to be that uh this thing then 20:48 20 minutes, 48 seconds people would have chosen only locals over branded players. uh but the thing that um all the organized players are 20:55 20 minutes, 55 seconds growing handsomely in the segment which also means that slowly that trend will change uh going forward. Consumers will 21:03 21 minutes, 3 seconds definitely look for quality than uh just water. So that's what I believe in. Uh the same goes for dishwash as well. 21:14 21 minutes, 14 seconds Okay. And uh since we talk about uh brands different differentiation compared to the competition. So uh we 21:23 21 minutes, 23 seconds said that what uh what we offer is differentiated with what competition is offering. So uh my question is uh what 21:33 21 minutes, 33 seconds like uh when you say differentiated products what exactly are we talking about? Is it only the effectiveness of the product or it is the branding 21:41 21 minutes, 41 seconds differentiation? What are we talking about? 21:44 21 minutes, 44 seconds Yeah, it's the positioning. uh Rishab I I don't think I can sit and explain each brand because there are many in the uh 21:51 21 minutes, 51 seconds in the fabric air segment each one stands for a uh you know at a different this question this question is uh not 21:59 21 minutes, 59 seconds just related to the fabric air it's the overall uh ji labs I'm talking about yeah certainly what I'm saying is each 22:09 22 minutes, 9 seconds brand has a different positioning so it's uh what the brand speaks is what the brand delivers that is where it is. 22:16 22 minutes, 16 seconds So we are differentiated. Now I cannot uh sit and explain on the call what each brand stands for. Uh if you see uh uh 22:24 22 minutes, 24 seconds but whatever we speak on whatever we uh you know uh the the spends that we do 22:31 22 minutes, 31 seconds the the communication that reaches the consumer they are uh you know differentiated in terms of uh compared 22:39 22 minutes, 39 seconds to competition right and at pricing we are at a similar uh pricing to that of competition. So hence there is uh you 22:48 22 minutes, 48 seconds know we've been that way since quite some time and we have made our mark. So that's what I can explain right now. 22:58 22 minutes, 58 seconds And my second question is uh suppose you do an inorganic acquisition. What other things which you will investigate in 23:06 23 minutes, 6 seconds terms of the work culture of the company the profile of the customers etc and many other things. to what uh things will you investigate in the company. 23:18 23 minutes, 18 seconds So there is a there is a the reason why we we have not been able to announce any acquisition so far is the is the robust 23:27 23 minutes, 27 seconds screening process you know and we have a very robust and tight process through which we look at any potential opportunity and there are various 23:34 23 minutes, 34 seconds aspects to a deal. It is not just uh just the cultural alignment. Of course this is an important element but there are other factors also uh your channel 23:43 23 minutes, 43 seconds the category the the price point the consumer segment the market the you know the the presence on u you know organized 23:53 23 minutes, 53 seconds trade all these factors we take into consideration while taking a call on a particular opportunity. 24:02 24 minutes, 2 seconds Okay. Uh last question is what we have seen that certain categories which reach uh let's say a penetration of 14 15%. 24:11 24 minutes, 11 seconds And then the slow burn rate starts then the incremental penetration becomes difficult and a fight with the 24:18 24 minutes, 18 seconds competition. So what I wanted to know what is the thought process on rather or rather what are the strategies lying on 24:26 24 minutes, 26 seconds gaining incremental share in our categories alongside fighting with the uh competition 24:36 24 minutes, 36 seconds the end of the day you'll have to fight the competition rishop there's no escape from that uh so the categories that we are present is uh very competitive in 24:45 24 minutes, 45 seconds nature and uh I've explained in my previous uh this thing that uh we are differentiated, we'll keep spending on 24:53 24 minutes, 53 seconds the brands and uh our quality will speak uh for itself, right? So uh those are the parameters where you can fight uh or 25:03 25 minutes, 3 seconds u uh and if your consumer chooses you, it's a win for you. So that's all what I can explain uh to you on the call here. 25:13 25 minutes, 13 seconds Okay. Thank you, man. Thank you so much. Thank you. 25:20 25 minutes, 20 seconds Thank you. The next question is from the line of Naven from IO PMS. Please go ahead. 25:27 25 minutes, 27 seconds Uh I I hope I'm audible. Yes, you are. 25:33 25 minutes, 33 seconds Yeah. So I just wanted to understand one small thing about uh the margins. It's more of a clarification than anything else. So I just want to understand if 25:41 25 minutes, 41 seconds some uh lower priced inventory has uh helped us uh cushion the margin impact this quarter or if we've been uh like 25:49 25 minutes, 49 seconds you know exhausted all that low price inventory and we've uh like you know had to buy inventory that these elevated prices as of Marc 25:57 25 minutes, 57 seconds uh maybe just to uh get an idea regarding that. 26:02 26 minutes, 2 seconds No there is no such uh advantage of lower priced inventory in this quarter. 26:06 26 minutes, 6 seconds I think uh the the raw material prices have been uh moving in in upward direction. So uh not a material impact 26:14 26 minutes, 14 seconds as far as the uh lower priced inventory issue is concerned. Got it. Yeah. Thanks for that. Thank you. 26:25 26 minutes, 25 seconds Thank you. The next question is from the line of Yogesh Mittal from Individual Investor. Please go ahead. 26:33 26 minutes, 33 seconds Hi, thanks for the opportunity. Uh so I wanted to ask about the divisions that 26:39 26 minutes, 39 seconds we have the fabric air the wash the the personal care we have um our individual 26:48 26 minutes, 48 seconds the business heads for them or how do we we manage because they target to a different kind of the customer needs just wanted to understand this part. 27:00 27 minutes Thank you. 27:03 27 minutes, 3 seconds So, so the uh brand uh guys are different that's all. Uh rest of the supply chain the rest of the team are all common Yoges. 27:14 27 minutes, 14 seconds So the business heads do we have the business heads for each of the division or the segments as you call them? 27:22 27 minutes, 22 seconds Uh no not as a business this thing but yes it's it's only in one certain department that you have that way but as a business we combine and we give the results. Yeah. 27:32 27 minutes, 32 seconds Right. Okay. Right. Thanks for this. And just one thing wanted to ask one thing more if I can squeeze in for the 27:40 27 minutes, 40 seconds personal care. Um do we intend to go in the beauty segment as well 27:49 27 minutes, 49 seconds because soap and this as such in case like some some beauty uh segments or products which you are thinking of 27:57 27 minutes, 57 seconds coming in uh not uh currently we'll see if possible in future. 28:06 28 minutes, 6 seconds You're right. Thanks. Okay. 28:14 28 minutes, 14 seconds Thank you. The next question is from the line of Sonel presence cap. Please go ahead. 28:22 28 minutes, 22 seconds I can ask. I hope I'm audible. Yes, you are. 28:28 28 minutes, 28 seconds Uh thanks for taking my question. My first question was with regard to the dishwash segment. Uh just asking 28:35 28 minutes, 35 seconds subjectively, have you seen the competition become less intense as we speak in the month of April and May and 28:44 28 minutes, 44 seconds more uh sensitive in terms of pricing uh and volumes? Any directional data that you can give? 28:53 28 minutes, 53 seconds Sorry to interrupt sir. Uh the voice is muffled. May I request you to use your hands? 29:03 29 minutes, 3 seconds Sure. I am asking the question here. Is it better now? 29:07 29 minutes, 7 seconds Yes sir, it's better now. You can continue. Thank you. 29:10 29 minutes, 10 seconds Yeah. Yeah. I was asking, have you seen competition become less intense in the dishwash segment uh in terms of pricing 29:17 29 minutes, 17 seconds or damage? Uh anything you can share with uh no not right now. Uh it's it's the same it's continuing the same way. 29:28 29 minutes, 28 seconds Got it. Now second question with regard to the difference between the volume and the value gap between last quarter and 29:36 29 minutes, 36 seconds this quarter the gap has widened a little more by a percentage point wanted to understand for next year do we see 29:46 29 minutes, 46 seconds the convergence uh directionally anything if you could share? 29:51 29 minutes, 51 seconds Yes, you are right. U going forward with the price increases that we are uh taking I think the the gap between 29:59 29 minutes, 59 seconds volume and value growth would uh narrow down and slowly it will converge. 30:06 30 minutes, 6 seconds So for next year we should assume that uh by the uh later quarters uh the numbers should be in sync in tandem basically. 30:16 30 minutes, 16 seconds Now as I said giving any kind of guidance at this stage is is is uh difficult but uh you know the actions 30:24 30 minutes, 24 seconds that we are taking right now in the near term this gap should reduce is all I can tell you. Got it sir that is good enough for me. 30:33 30 minutes, 33 seconds My last question is with regard to the retail footprint uh of Joti as a brand. 30:38 30 minutes, 38 seconds uh just wanted to I think between last year and this year just picking up data from your deck you've seem to have added 30:45 30 minutes, 45 seconds a lack outlets uh overall just wanted to understand if there is broader guidance on uh states where your footprint is 30:55 30 minutes, 55 seconds less uh regions your footprint is less and you intend to have a plan of how many retail outlets you need to add to 31:02 31 minutes, 2 seconds uh to expand and pull the gaps in those areas. 31:08 31 minutes, 8 seconds Uh so we've been adding almost uh 50,000 to a lack of retail outlets every year and that is what will continue and that 31:17 31 minutes, 17 seconds is across the country. There's no particular geography or things like that. So it'll be an across uh GP uh uh increase in outlets. 31:29 31 minutes, 29 seconds Got it. All right. Thank you. Thank you. 31:35 31 minutes, 35 seconds Thank you. The next question is from the line of Adita Sonum from CLSA. Please go ahead. 31:43 31 minutes, 43 seconds Hi uh good afternoon and thanks for the opportunity. 31:48 31 minutes, 48 seconds Firstly uh can you give us a sense on market share? How you particularly you know 31:56 31 minutes, 56 seconds uh soaps and uh liquid vaporizers or insecttoides? Uh if if any sort of sense 32:02 32 minutes, 2 seconds you can give uh that would be very useful 32:09 32 minutes, 9 seconds uh in uh uh differently how are we differentiating on the liquid now we see 32:19 32 minutes, 19 seconds so your voice is breaking can you just come a little bit closer yeah yeah on liquid detergents we are seeing 32:28 32 minutes, 28 seconds a huge amount of competition coming uh How are we seeing how are we uh uh uh grow in in this competitive environment? 32:40 32 minutes, 40 seconds So uh we do not give the detailed brand wise or category wise market share data but on an overall basis we have protected our market share or improved 32:49 32 minutes, 49 seconds it across various categories is all I can tell you and in liquid detergent also specifically we have done really well. our market shares have improved. 33:00 33 minutes Understood. And and any sense on competitive uh uh positioning of the products? I mean uh how in terms of uh 33:08 33 minutes, 8 seconds price points uh or where you're seeing the most demand at at what price points in any sense will be very useful. 33:16 33 minutes, 16 seconds Uh so we have different segments um Adita that is uh you you have your premium you have your mass you have your 33:24 33 minutes, 24 seconds mid and we are priced at par with competition. So uh and uh like pav said we have either retained the market share 33:33 33 minutes, 33 seconds or have improved uh that across brands. 33:38 33 minutes, 38 seconds I understand. No no I I I I know about the different price points. What I wanted to understand also a little bit more is you indicated that we are seeing a shift from sort of powder to liquids. 33:49 33 minutes, 49 seconds Is this being also driven by being sort of more aggressive on pricing on liquids? Uh one of the things I am seeing in in my checks is that price per 33:58 33 minutes, 58 seconds unit on liquids has now dropped uh below powders for equivalent brands. Uh so would that be sort of a strategic choice? 34:07 34 minutes, 7 seconds Yeah. See if you see uh few years back when uh liquids were introduced in the country uh at that time it was at 34:14 34 minutes, 14 seconds premium to powders. Uh it is just to induce trial that uh you know players have uh you know to make it more 34:23 34 minutes, 23 seconds affordable to have more uh uh to see the benefits of liquid that uh such competitive pricing uh has been 34:30 34 minutes, 30 seconds introduced in the market and that has continued uh you know for some time. uh maybe after you know couple of years 34:38 34 minutes, 38 seconds things may uh see a different uh picture in that segment but otherwise uh for now uh yes it is very competitive. 34:49 34 minutes, 49 seconds Understood. Very clear and thanks. Thank you. 34:56 34 minutes, 56 seconds Thank you. The next question is from the line of Akash Sha from UTI MF. Please go ahead. Okay. 35:03 35 minutes, 3 seconds Um yeah uh hi am I audible? Yes you are. 35:09 35 minutes, 9 seconds Hello. Yeah sure. Uh thank you for the opportunity. Uh just uh uh wanted to ask uh sir how how much has the price 35:17 35 minutes, 17 seconds increase been taken in uh uh in uh dishwash and uh detergent uh uh uh uh uh 35:26 35 minutes, 26 seconds segment and how much uh inflation uh is there in the um uh in the uh raw 35:34 35 minutes, 34 seconds materials. uh just just wanted to get some sense on how far are we uh from 35:41 35 minutes, 41 seconds taking the full price increase to offset the inflation. 35:48 35 minutes, 48 seconds Thank you. Thank you Akash. Uh so uh we have as I mentioned earlier we have taken pricing action to the tune of uh 35:56 35 minutes, 56 seconds around 4% in the month of March. the result of which would should be visible in quarter one uh to a large extent and 36:04 36 minutes, 4 seconds uh full impact should be visible quarter two onwards. Uh second on the inflation side our large part of our portfolio is 36:14 36 minutes, 14 seconds uh impacted uh uh with uh you know crude or crude derivative uh inflation. So 36:21 36 minutes, 21 seconds there the impact is higher and also in packing material we have seen in the last couple of months uh the uh crude 36:28 36 minutes, 28 seconds linked HDP and PP uh going up prices going up significant. So on packing material side also there is a there is a 36:36 36 minutes, 36 seconds inflation impact. So overall uh pricing increase you know first action we have taken and if required we will take sub 36:45 36 minutes, 45 seconds going forward depending upon how inflation subsists. 36:51 36 minutes, 51 seconds Um sure. Uh and sir, if I were to uh sort of uh assume that uh current uh 36:58 36 minutes, 58 seconds prices uh prevail uh in terms of uh raw materials, then sir, how much price increase will be required to offset that inflation? 37:09 37 minutes, 9 seconds No, it's I cannot give that number uh right now. But we are monitoring the 37:16 37 minutes, 16 seconds price increases on the raw material side on on a continuous basis and depending upon uh 37:23 37 minutes, 23 seconds you know the the market situation and also the volume growth or ambition uh we have to keep all the factors in mind while taking any uh pricing decisions. 37:32 37 minutes, 32 seconds So we are taking calibrated uh steps and we'll continue to do so. 37:36 37 minutes, 36 seconds Right. Um sure sir. And uh sir this 4% price hike that we have uh taken that is 37:43 37 minutes, 43 seconds uh for both fabric care as well as dishwasher right at a at a company level I'm saying across various band brand categories SKU 37:52 37 minutes, 52 seconds it's a mix I'm talking about uh the portfolio level okay understood uh understood uh and uh 37:59 37 minutes, 59 seconds sir two bookkeeping uh questions one is sir how much will be uh tax rate for us 38:05 38 minutes, 5 seconds uh for uh FY27 7 it will be we will be going for uh 115 38:13 38 minutes, 13 seconds BA so rate should be around 15 25 to 26% uh it should be hovering between 25 to 26%. 38:20 38 minutes, 20 seconds Right and sir Kex for 27 will it be I mean similar to previous year or a bit higher similar 38:27 38 minutes, 27 seconds it will be in similar range yeah thank you. Okay thank you sir. 38:35 38 minutes, 35 seconds Thank you. The next question is from the line of Harit Kapoor from Invest. Please go ahead. 38:42 38 minutes, 42 seconds Yeah. Hi, good evening. Uh just had a few questions. One was on the pricing that you just mentioned. So while you did give the weighted average number, I 38:50 38 minutes, 50 seconds just wanted to understand that is this entire pricing in fabric and dishwash uh uh uh or you are also have taken up prices in personal care. 39:01 39 minutes, 1 second No, as I said, um this is across all the segment categories. So the blended increase would be close to 4%. A little over 4%. 39:10 39 minutes, 10 seconds Yeah, but I I I get that Tom, but I just wanted to check whether there have been increases in soaps as well. This that's the question. 39:17 39 minutes, 17 seconds Yeah, we have initiated as I said in the month of March we have initiated the effect would be visible in quarter one including Margo. 39:23 39 minutes, 23 seconds Got it. Okay. Got it. Got it. Okay. And the second thing was on HI you know uh if you could just help us understand 39:30 39 minutes, 30 seconds this uh product mix uh uh or category mix or subsegment mix whatever you call it in HI for the second half of this 39:38 39 minutes, 38 seconds year. uh just wanted to understand that at what what level of mix you've been able to kind of achieve these uh break even numbers in terms of LV nonLV 39:47 39 minutes, 47 seconds basically call however you want to call it understand no uh what I'm saying is uh 39:55 39 minutes, 55 seconds it is too early to draw any conclusion based on one or two quarters number while the LV's share in the total hi has 40:03 40 minutes, 3 seconds improved uh if you look at last uh four to five six quarters it has improved slowly but gradually Now it is at 55% and the coil is 45%. 40:13 40 minutes, 13 seconds And also when I say LV the the the new launches for example aerosol and rackets etc I'm bunching together because the 40:21 40 minutes, 21 seconds profitability is is is superior compared to coil. So these products are doing well and hence the ratio is tilted in 40:28 40 minutes, 28 seconds favor of uh LV and others whereas uh coil dependence is coming down. 40:35 40 minutes, 35 seconds Got it. Got it. Got it. Uh third question was really on uh you know these these price increases which have been taken by yourself in the market. Uh you 40:45 40 minutes, 45 seconds know do you see have these been broadly in line across most like most players would have taken similar levels of price 40:52 40 minutes, 52 seconds increases according your uh you know in your key categories is that what you're witnessing or you know there is comp you know players are using this as a mode to 41:02 41 minutes, 2 seconds drive competitive intensity. I would assume not but just wanted to get your thoughts on it. 41:07 41 minutes, 7 seconds No, you are right. Your your assessment is right. It is in line. 41:10 41 minutes, 10 seconds It is in line. Okay. Got it. Got it. And and last bit was on on the fabric air bit, you know, uh exceptionally strong 41:18 41 minutes, 18 seconds volume growth uh you know numbers. In fact, not even quarter four, even quarter three numbers are very good. uh 41:26 41 minutes, 26 seconds you know while you've mentioned uh you know liquids is like 2x but I I I remember it being like a low singledigit 41:34 41 minutes, 34 seconds uh uh share of your mix if I'm not wrong correct me if I'm wrong please but uh so so obviously the growth there it's not 41:42 41 minutes, 42 seconds really while while it has driven a part of it it would not have driven it entirely if you could just give a flavor in terms of uh uh this acceleration in 41:51 41 minutes, 51 seconds growth in H2 um you know I I I don't want a number but you know would it be primarily you know uh mark uh you know 42:00 42 minutes penetration or couple of categories like either premium detergents or mass detergents you know something doing much better than the others some color on that would be would be very helpful. 42:11 42 minutes, 11 seconds No, I understand uh the from where you are coming Harit, but overall um the fabric care category has been doing well 42:19 42 minutes, 19 seconds for us both in main wash as well as in post wash. 42:22 42 minutes, 22 seconds Uh you know detergent powder, liquid, bar, soaps, uh our premium, our flagship product fabric whitener, fabric conditioner that we recently launched. 42:33 42 minutes, 33 seconds You pick any product. I think we are doing a decent job uh across uh various products and categories within fabric air. 42:41 42 minutes, 41 seconds Got and and sorry one last yeah one last question was that you know any sense of 42:49 42 minutes, 49 seconds uh apart from you know apart from premiumization because there's also a lot of volume growth so apart from premiumization uh you know uh in terms 42:58 42 minutes, 58 seconds of adoption penetration usage overall category growth have you also seen that lift lift up in the last two quarters 43:06 43 minutes, 6 seconds like not for you overall but just overall category growth have you seen that pick up as well because uh your you've definitely been gaining but uh 43:15 43 minutes, 15 seconds would you see category growth also being haven't really you know adding to that tailwind 43:22 43 minutes, 22 seconds uh so that category is definitely growing compared to powders liquids are growing that is what I can say and that 43:29 43 minutes, 29 seconds has been on a similar uh listing through the year this year last year also so uh but yes we've done well uh the uh 43:38 43 minutes, 38 seconds the powders have started diminishing that is the main thing. So, Got it. Got it. Yeah. 43:45 43 minutes, 45 seconds Perfect. Thank you very much. Wish you all the best. Thank you. 43:51 43 minutes, 51 seconds Thank you. The next question is from the line of Amit Drait from Ara. Please go ahead. 43:59 43 minutes, 59 seconds I sir, thank you for the opportunity. Uh you are audible. Yes, you are. 44:06 44 minutes, 6 seconds Yeah. uh just trying to understand uh I mean on on the pricing side you already highlighted the 4% price increase uh at 44:15 44 minutes, 15 seconds a portfolio level. Uh if I look at Q4 versus Q3 uh uh the price reduction or the difference between volume and value 44:23 44 minutes, 23 seconds has further gone down by a percent or so. Um is that largely to do with some of the mix or some schemes that you 44:32 44 minutes, 32 seconds might be running? uh um is is that the reason that yeah it's a combination of a lot of 44:40 44 minutes, 40 seconds factors uh not just the schemes you know your grammages or quantity then MRP cuts uh it's a combination of a lot of 44:48 44 minutes, 48 seconds factors across different segments and categories and then you have taken price increase of 4% uh have you uh reduce the schemes 44:58 44 minutes, 58 seconds as well uh is a combination or you when you say 4% everything is included in I'm saying overall impact around 4% 45:06 45 minutes, 6 seconds which we took uh towards second or third week of March large portion of it which should be visible in uh quarter 1 and 45:15 45 minutes, 15 seconds quarter two at a totality level that's a combination of you might have reduced some schemes as well as ASP increases 45:23 45 minutes, 23 seconds price pricing action you know basically the net effect of pricing decision would be about 4%. 45:30 45 minutes, 30 seconds Okay. Okay. And uh sir on the uh uh just to again on the margin thing while I understand it's a volatile uh scenario 45:39 45 minutes, 39 seconds uh but when I look at uh I mean current numbers and we would be carrying some bit of an inventory or which would be a 45:46 45 minutes, 46 seconds old stock inventory which would and you indicated not much of benefits would have come. uh but uh if I think of from 45:55 45 minutes, 55 seconds a uh two quarters down the line uh are we in a scenario where the inflation 46:02 46 minutes, 2 seconds concern is has only risen uh while we do have taken price increase. So uh could 46:09 46 minutes, 9 seconds there be a scenario in the near term that uh this exit margins of Q4 could be slightly lower in the near term is that 46:18 46 minutes, 18 seconds directionally if you can help will be uh much better for us to understand while I I take your point on the volatility 46:26 46 minutes, 26 seconds scenario but to just to to model it it will be better for us. No, fair question. Um as as I indicated um rather 46:36 46 minutes, 36 seconds as Juthi indicated in her opening remarks um near-term we are seeing margin pressure. Uh so quarter one definitely there is some pressure on 46:44 46 minutes, 44 seconds margins but it's highly linked to what happens on the crude and crude derivative prices uh which which which 46:52 46 minutes, 52 seconds would have a a bearing on you know our pricing actions. So for for the current portal there will be some pressure on 46:58 46 minutes, 58 seconds margins. Sure. And lastly sir, uh is there any uh structurality change in the 47:06 47 minutes, 6 seconds margin profile because of maybe uh liquids gaining significant traction in the recent times in the fabric category 47:16 47 minutes, 16 seconds uh or competition is there in the dishwash uh but that was there earlier also. I mean this quarter saw significant fall in uh in the bit 47:25 47 minutes, 25 seconds margins. So uh there is no uh uh otherwise a structural change which would probably result in a slightly 47:32 47 minutes, 32 seconds lower margin profile from here on one should expect but excluding the crude scenario which we are seeing right now. 47:41 47 minutes, 41 seconds This margin drop that you are seeing is largely driven by the um the crude or crude derivative prices. Structurally 47:48 47 minutes, 48 seconds there is no major change in the business uh construct of the company. 47:54 47 minutes, 54 seconds Okay. And lastly, sorry on the uh supply and sourcing side uh I just wanted to know uh how are we positioned uh 48:02 48 minutes, 2 seconds relative to some of the smaller players do we have some advantage over there and you are seeing on the ground some market 48:09 48 minutes, 9 seconds share gains uh as from smaller players especially on the liquids fabric or powder if you can touch upon that uh uh 48:17 48 minutes, 17 seconds and our ability to source is slightly better just on these points quality so our our volume growth the numbers uh 48:25 48 minutes, 25 seconds tell you the story. So we would not like to comment beyond that. Okay. 48:34 48 minutes, 34 seconds Okay. Thank you. Thank you. 48:45 48 minutes, 45 seconds The next question is from the line of Siddesh Deshmuk from I Phil Capital. Please go ahead. 48:55 48 minutes, 55 seconds Yeah. Hi. Uh this is Percy here. Uh just uh wanted to ask uh regarding your gross 49:02 49 minutes, 2 seconds margin this quarter. It was 400 bits down. Just trying to understand the reason for this because the input cost 49:10 49 minutes, 10 seconds uh inflated only in March and typically uh uh uh there is a lag between the crude prices going up and the 49:18 49 minutes, 18 seconds derivatives going up plus there is a inventory or some kind of cover that companies have. So why in this quarter 49:26 49 minutes, 26 seconds gross margin has gotten affected by 400 basis points. 49:30 49 minutes, 30 seconds So our uh good question peri there are two reasons for this. One is of course some bit of uh inflation did hit us in 49:38 49 minutes, 38 seconds uh in in quarter 4 but uh on the pricing side lower overall lower sales realization uh has also impacted the 49:46 49 minutes, 46 seconds margin. As you know we have uh a typical two to three months of lack uh between the uh the the the cost increases on the 49:56 49 minutes, 56 seconds input side and the price action that we take on the on the sales side. So that has impacted the corrective action the sale price increase decision was taken 50:04 50 minutes, 4 seconds towards the end of the quarter while the lowering of sales uh average sales realization was happening through the through the quarter and hence you see 50:12 50 minutes, 12 seconds some impact in uh gross margin uh in this quarter also we have uh given grammages extra grammages and all that comparative to 50:21 50 minutes, 21 seconds last year. So that is also there per se. 50:26 50 minutes, 26 seconds So this extra grammages is something driven by competitive pressure or it's something that like you have done even 50:34 50 minutes, 34 seconds though the competition has not done the same thing. 50:37 50 minutes, 37 seconds No no uh so it is a competitive uh reaction uh also um as as we speak. So last year versus this year there's a 50:46 50 minutes, 46 seconds huge price reduction also that had happened. Uh if you see quarteron quarter uh uh last year's price versus 50:54 50 minutes, 54 seconds this year there's a huge difference. So even if we have grown by volume uh the price pricing action and the grammages 51:01 51 minutes, 1 second these put together along with your other uh inflated raw materials all of this together all converged in this quarter. 51:08 51 minutes, 8 seconds So that is why you see that. 51:12 51 minutes, 12 seconds Okay. Because uh just trying to understand this a little bit in detail. 51:16 51 minutes, 16 seconds One is of course uh uh there is some in some categories there is just GST leadage and lower price but detergents 51:24 51 minutes, 24 seconds did not have that. Uh so and if I'm also looking at HL result they have not seen a significant uh kind of margin 51:32 51 minutes, 32 seconds pressure. uh so just wanted to sort of put across these data points and see what is happening that I mean and see 51:41 51 minutes, 41 seconds where I'm come from is even if I see the last uh crude uh price cycle a few years ago uh our margins had come down from 16 51:50 51 minutes, 50 seconds 17% to a 10 11% uh and uh EPS I think on a full year basis not just for one quarter had 51:58 51 minutes, 58 seconds fallen approximately 30% or something like that uh so just wanted understand why uh uh uh uh I mean uh why this kind 52:08 52 minutes, 8 seconds of uh impact on bottom line uh happens to us much more than other companies 52:15 52 minutes, 15 seconds even adjusted for the product portfolio like for example instead of looking at HL overall as a company if I look at 52:22 52 minutes, 22 seconds only the home care uh in the past cycles we do not see such a big impact or if we look at other FMCG companies we do not 52:31 52 minutes, 31 seconds see such a big impact so just wanted to understand what uh is different uh uh uh 52:37 52 minutes, 37 seconds for us that uh we are uh sort of uh facing the brunt of this. Of course, it reverses when the crude price goes down 52:44 52 minutes, 44 seconds and the margin does come up. Not denying that but a few quarters can be very painful in the interim and I was just trying to understand what is the reason for that. 52:54 52 minutes, 54 seconds No, fair question. Um as we have mentioned earlier also about 60% of the business is linked to crude and crude 53:03 53 minutes, 3 seconds derivatives and also if you look at u the key raw material lapsa uh the prices have gone through the roof in in this 53:12 53 minutes, 12 seconds quarter uh if you look at January and if you look at prices today they are up by 60 65%. If you look at uh HDP packing 53:21 53 minutes, 21 seconds material item which is roughly 15 to 20% of our purchases that has gone up by about 50 55% and that has happened in uh 53:29 53 minutes, 29 seconds March and April. So all these factors plus the average lower average sales realization has uh affected the margins 53:36 53 minutes, 36 seconds and as I indicated quarter 1 is also going to be some pressure while you know calibrated pricing action will be taken but uh it is all linked to you know how input prices behave going forward. 53:47 53 minutes, 47 seconds Yeah. Another uh reason uh Percy is uh almost uh 70 to 80% of our uh portfolio 53:54 53 minutes, 54 seconds is into uh home care uh and uh if you see while the rest have u you know the other segments also so hence you don't 54:03 54 minutes, 3 seconds see as much uh apart from that the coil as a segment is also margin u you know 54:10 54 minutes, 10 seconds decorative so that is an addition to us uh but we have performed very well on liquid so while we are trying to correct 54:17 54 minutes, 17 seconds that segment as well as you see. Uh so these are the factors which impacts us more than uh you know for others. 54:26 54 minutes, 26 seconds Got it. Got it. But why not then take a higher price increase 4% seems very low. 54:33 54 minutes, 33 seconds We are also keeping an eye on our volume retention because the volume growth momentum that we are maintaining while in the near term there could be some 54:40 54 minutes, 40 seconds pressure in in margin but we want to retain the volumes. So we have to strike a balance between the two. I'm not saying one versus the other. It will be 54:49 54 minutes, 49 seconds a combination of both. But again, it will 100% the input price increase as you know cannot be passed on to the the market. 54:58 54 minutes, 58 seconds Okay, got it. Thank you so much. Thank you. 55:04 55 minutes, 4 seconds Thank you. That was the last question for the day. I now hand the conference over to Mr. Paws for closing remarks. Please go ahead. 55:12 55 minutes, 12 seconds Thank you. Thank you. Thank you so much. 55:14 55 minutes, 14 seconds Uh we really appreciate your interest, your continued interest in Joti Labs Limited. Thank you so much. Have a pleasant evening ahead. Thank you. 55:24 55 minutes, 24 seconds On behalf of Joti Labs Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.