Ion Exchange Limited Q3 FY17 Earnings Conference Call February 03, 2017 Ladies and gentlemen, good day and welcome to the Ion Exchange (India) Limited s Q3 FY17 Earnings Conference Call. As a reminder, all participants lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing * then 0 on your touchtone phone. I now hand the conference over to Mr. Anuj Sonpal from Valorem Advisors. Thank you and over to you, Mr. Sonpal. Anuj Sonpal: Thanks, Raymond. Good Afternoon, everyone. My name is Anuj Sonpal, the CEO of Valorem Advisors. We represent the Investor Relations for Ion Exchange India Limited. On behalf of the company and Valorem Advisors, I would like to thank you all for participating in the company s earnings conference call for Q3 FY17. Before we begin, I would like to mention a cautionary staement. Some of the statements made in today s concall maybe forward-looking in nature. Such forward-looking statements are subject to risk and uncertainties which could cause actual results to differ from those anticipated. Such statements are based on management s belief, as well as assumptions made by and information currently available to the management. Audiences are cautioned not to place any undue relianceon these forward-looking statements in making any investment decision. The purpose of today s earnings confernece call is to only educate and bring awareness about the company s fundamental business and financial quarter under review. Before we begin the call, I would like to give everyone a few minutes introduction about the company so that everybody is on the same page, after that I will introduce to the management and they will be giving their opening statements. Ion Exchange (India) Limited is a pioneer in the field of Water Management and Waste Management in India. It was formed in 1964 and it caters to industries, communities, consumer products side. The company is present across the length and breadth of Water Treatment products and solutions in India and across the world. The company is headquartered in Mumbai and has six manufacturing facilities and assembly facilities across India and it is also present abroad. Today, the company operates in three segments which are Engineering, which constitutes approximately 55% of the revenue, Chemicals division which represents about 35% of the revenue and the third is Consumer Products which represent around 10% of the revenue. The company has a rich history of more than 50-years and was formed as a subsidiary of a UK company Permutit, after that became a wholly-owned Indian Page 1 of 15
company in 1985. Currently, we represent India as a global MNC and we operate out of all major countries in the world either directly or through representatives in these countries. The company offers a wide range of solutions which deal in Waste Water Treatment, Water Recycling, Zero Liquid Discharge. Sewage Treatments, Water Distillation and also Chemicals, Resins and other components of water treatment equipments. The company has more than 50 patents to our credit and have probably been instrumental in more than a lakh installations across the globe. Now, I would like to introduce you to the management participating in today s earnings conference call and give it to over to them for their opening remarks. We have with us Mr. N.M. Ranadive Executive Vice President of Finance, as well as Mr. Vasant Naik Senior Vice President of Finance; we also have with us Mr. Milind Puranik the Company Secretary. I now hand over the call to Mr. Vasant Naik for his opening remarks. Good Afternoon, everybody. It is a pleasure to welcome you to this Q3 financial year 2016-17 earnings concall. I will briefly touch upon the quarterly performance of our company for this quarter ending December 16. The total income for the third quarter was Rs.196.6 crores, on YoY basis it represented a fall of 4.14%. EBITDA in absolute terms was Rs.16.2 crores, there is a small growth of 1.25% over the previous year. As a percentage to sales, EBITDA margin is around 8.2% and net profit after tax was 6.1 crores, there was a 17% drop on YoY basis. As a percentage to sales, the PAT margin was around 3.1%. In terms of the performance for the nine months, the total income of the company was Rs.595 crores, we grew at YoY basis at 4.24% over the same period last year. EBITDA is around Rs.47.8 crores. We grew around 14.8% over the last year and margin as a percentage to sales is 8% with absolute amount of Rs.19.7 crores. Here again, we have grown by almost 10%. The PAT margin as a percentage to sales is around 3.3%. In terms of the segmental performance for the quarter, as we have seen in the results, the turnover of the Engineering division is around Rs.106 crores, there is a drop as against the earlier last year Q3 of Rs.113 crores and the segmental profit is around Rs.3.1 crores as against last year s of Rs.4.2 crores. On a cumulative nine months basis, the turnover was around Rs.313 crores against Rs.306 crores, we grew around 2% over the same period last year. Profit was almost flat at around Rs.10.4 crores Vs Rs.10.2 crores in the previous year. Chemicals segment s revenue was around Rs.75 crores and profit has moved to Rs.12.2 crores from Rs.11.5 crores, the profit has improved by almost 6% on nine months basis and the Page 2 of 15
turnover for the nine months around Rs.230 crores as against Rs.222 crores with a segmental profit of around Rs.33 crores as against Rs.31 crores. The third segment which is the Consumer Products segment, the turnover grew from Rs.22 crores to Rs.23 crores, almost 5% growth in the third quarter. Losses were slightly higher in the third quarter of around Rs.1.4 crores as against Rs.90 lakhs in the same quarter of last year. In nine months of the current year, the turnover has grown by 24% from Rs.60 crores to Rs.75 crores and the losses have reduced to around Rs.3.1 crores as against Rs.3.4 crores. In terms of the Operational Performance in the various three segments; if we talk of the Engineering segment, the Engineering segment for this company primarily comprises of the large EPC projects as well as the medium and the small Engineering projects. There has been a continued sluggishness what we have seen in the earlier quarters also in the capital goods industry and that has actually resulted in a negative growth in the large EPC segment. The sector which we had anticipated did not show the kind of growth considering the investments which have taken place in the first six months; however, the medium Engineering segment continue to show order inflows and turnover growth. So net-net on overall, there has been degrowth in the top line which is mainly because of the degrowth in the EPC segment. However, we expect that with the recent budget announcement of renewed push to the infrastructure spend by the government, things on the ground should look up in this segment, but we are keeping our fingers crossed. In the Engineering segment, most of you are tracking the large Sri Lanka order which we had secured and we have spoken about it in the earlier concalls also. There has been progress on this front and we expect the execution of this order will commence in this fourth quarter of 16-17. We have already done substantial amount of ground work so that we are able to take off as soon as the order starts commencing. In terms of the performances of the subsidiary companies, majority are operating in the Engineering segment and because of the unfavorable market conditions, the performance continues to remain muted. In the Chemicals segment, for the quarter we have seen some reduced offtake in the heavy industry customers mainly steel and also there has been impact of the demonetization in certain medium industry segments. That has also impacted the top line. The margin however we have continued to improve on the quarterly basis and that is mainly because of the manufacturing efficiencies which we have put in over the last few quarters in terms of the enhancement in our capacities, this has also contributed to the improvement in the margin. In the Consumer Products segment, the turnover remains muted; if you see the second and third quarter comparison, first is traditionally the third quarter is certainly on the lower side if we compare the earlier years also compared to the second quarter. Also, here the impact of the demonetization is also felt in some of the verticals in this segment. However, in this Page 3 of 15
quarter we have continued with the augmentation and strengthening of the team to improve the market reach and we expect this to have a better positive impact in the coming quarters. Anuj Sonpal: Now that the opening statements are done with. We can open the concall for questions-andanswers, although I would request all the participants to restrict their questions to the quarter performance and the future prospects of the company rather than broad-based understanding of different aspects about the company. Raymond, we can move on to the Q&A Session. Thank you very much. We will now begin the Question-and-Answer Session. We have the first question from the line of Dimple Kotak from SKS Capital. Please go ahead. Dimple Kotak: What is the current order inflow in this quarter and how much order have you executed? The current order book would be in the region of around Rs.600 crores; this does not include the Sri Lanka order. In terms of the order intake, it is comparable to what we have been seeing in the earlier quarters; there is not much of substantial growth in the order book side which is more or less at the same level as the second quarter. Dimple Kotak: With the amount how much order inflow has been there even if it is flat? If you see our invoicing was around Rs.100 crores for the Engineering segment and roughly the intake also would be on the same level. Dimple Kotak: Second is, for the Sri Lanka project, we are going to commence from Q4 FY 17. When are you going to book the revenues and in what percentage? In terms of the percentage, it will not be possible for us to quantify at this stage, but as I mentioned in my opening remarks, we have made a substantial investment in terms of our resources, in terms of the infrastructure and lot of work has been done on the ground prior to the starting of the project. So hopefully we should be able to take a call at the quarter end in terms of the revenue booking but execution will definitely start in this year. Dimple Kotak Last year also the subsidiaries did not do well, that is why our profits are subdued. So what is the status of the subsidiaries currently did we book any orders in this quarter or for the year what was the outlook for the year for the subsidiaries as we do not give consolidated numbers? As far as subsidiaries are concerned, subsidiaries operating in the Engineering segment definitely are having the subdued growth particularly because of the environment which is prevailing in the international markets also. Whereas subsidiaries which are operating in the Chemicals segment, they are likely to show a better performance. Page 4 of 15
Dimple Kotak: What is the overall outlook for the full year because I believe in nine months we had top line growth of 4% and profit growth of 10%. So how do we expect to close the year like if you can just throw some light on that? Traditionally, our Q4 is better than any quarter in the financial year. So we hope that same trend will continue. Thank you. The next question is from the line of Sanjeev Zarbade from Kotak Securities. Please go ahead. Sanjeev Zarbade: Regarding the EBIT margins in the Chemicals division where the margins have increased to almost 16%. So just wanted to know what is the sustainability of this level of margins for the fourth quarter as also for the next fiscal? As I mentioned, we have invested in manufacturing efficiencies augmenting our capacities and margins should be sustainable. Sanjeev Zarbade: Sustainable at the 16% level for the next fiscal as well? Yes, we are optimistic on sustaining this level. Sanjeev Zarbade: Regarding the Sri Lanka order, I did not understand like you are saying that execution will start from the fourth quarter, that is the current quarter, but then the revenues you are saying some ground work has to be done? It is like this; announcement will happen somewhere around February 8 and initially we will have to start with the Engineering drawing. And so depends on what approval we get. Hence we cannot right now commit anything whether the revenues would be expected in the current year. Thank you. The next question is from the line of Vikram Kotak from Crest Capital & Investments. Please go ahead. Vikram Kotak: What kind of order book under bidding you will be having right now and these are main government contracts or do you see visibility from private sector also, can you throw some light on the visibility? In terms of the bidding pipeline, as we have mentioned earlier also it will be in the region of around Rs.3000-3500 crores. I would like to highlight here that it will be at the various stages of bidding; some level at the budgetary level, some at the initial bidding level and some maybe at the technical level in terms of the finalization. It is a mix of both government as well as the private sector. So it is difficult to really judge how much of it can be. Page 5 of 15
Vikram Kotak: But my question was coming mainly from, are you seeing lot of improvement in the private sector visibility or not? Not really in the heavy segment, small and medium segment yes. Thank you. The next question is from the line of Riddhesh Gandhi from Discovery Capital. Please go ahead. Riddhesh Gandhi: To the preparation of Sri Lanka order, are you expensing all the expenses are related to that upfront or you are going to capitalizing it and how much had you already spent on the execution of this order so far? As far as the expenses are concerned, this cannot be capitalized because this is the EPC order and they will be accounted for this order only. Riddhesh Gandhi: How much of the expenses have you already borne with regards to the Sri Lanka order? I think we may not be able to disclose at this point of time. Riddhesh Gandhi: But it would be effectively already being reflected in terms of expenses in this quarter but not in terms of revenue? What you are saying is right, because certain expenses will keep on incurring while the revenue will come at a later stage. Riddhesh Gandhi: With regards to the revenue recognition on the order, would this be split across the quarters after you start based on this is the amount of the three year order and therefore it is split across ex number of quarters or it would be based on achieving of milestones or? It is actually the three-year contract and we expect the revenues to be broadly symmetrical to across the three years. Riddhesh Gandhi: With regards to your offshore subsidiaries which you have, they were earlier effectively actually loss making and there were expectations of them turning around. Any idea how much negative they are in terms of EBITDA and expectations of how long it will be before they can turn around? As explained earlier, the subsidiaries which are dealing with the Engineering segment, they are not likely to turn around compared to last year but we hope subsidiaries which are in the Chemicals and Resin business will show the positive turnaround. Page 6 of 15
Riddhesh Gandhi: So on a blended basis, just to understand compared to last year with regards to how much for the losses and how much do you expect it to be this year in terms of aggregate offshore subsidiaries? The numbers are not available, cannot be disclosed. Thank you. The next question is from the line of Harsh Shah from Dimensional Securities. Please go ahead. Harsh Shah: Sir, just wanted to ask that now many players entering this water treatment space. I want to understand how is the competition shaping up both in domestic and international markets and how are you preparing to tackle this increase in competition? As far as domestic market is concerned, we find every year some new entrants coming and there are a few entrants going also. In fact, we have observed in the past that lot of competitors I do not want to take the names of those, the people have exited. So we are not really worried about any new entrants joining in this thing because we have seen lot of exits in the past. As far as the international market is concerned, there are a lot of big players are there and we are making good inroads in the international market. So we are well placed to face any competition. Harsh Shah: What are the reasons that some players are exiting the domestic markets? People from outside they may be thinking the water equipment business maybe little lucrative in the margins but it may not be really the case. Harsh Shah: Is the order supply enough to accommodate the existing number of players or are you seeing intense competition, that is why the margins are not so low? Typically, the margins in the Engineering business are lower compared to the Chemicals business. So if there is any competition, which does not have all the combinations of this thing, always they will have difficulty in the surviving. Thank you. The next question is from the line of Saloni Shah, who is an individual investor. Please go ahead. Saloni Shah: Just a few housekeeping questions from my side; could you tell us will the company start reporting consolidated numbers in a quarterly or semi-annual basis so as to improve disclosures to the street? Presently, it is not mandatory, maybe we can take a call in the future as and when we feel it is necessary. Page 7 of 15
Saloni Shah: Could you also tell us if anything is happening on the BSCT category circuit limits under which we are placed? Management: There are some legal issues involved, we are into T2 segment, we are taking a legal opinion on that, we are taking up the matter with BSE so that our shares are upgraded. Saloni Shah: Why are we not pursuing an NSE listing of our stock? Management: NSE listing we may consider after our T2 segment is in place. Saloni Shah: How do you plan to control losses in the Consumer Zero B division? I think this has been a drag on profitability for the past few years. As we have mentioned earlier, if you see the top line we have improved by almost 14% on YoY basis. So our strategy in terms of exploring the newer markets segment is slowly paying off and in this quarter also we have augmented our staff to reach the newer niche segment. The improvement may not be dramatic in the coming but we expect that the losses certainly will gradually come down so that the business becomes self-sustainable in its own. Thank you. The next question is from the line of Kunal Bhatia from Dalal & Broacha. Please go ahead. Sir, just wanted to know in case of your Chemicals division which is 34% of your revenues, what is the kind of competition do you have in the overseas market? You have started with new products for the US and European markets and this time your EBIT margins have also moved up. Secondly, what is the USP which Ion Exchange has in the products which we supply vis-à-vis the other players? In the Chemicals business, if you see the international operations, we are mainly exporting into the US market and our major competitors are in fact much bigger than us if we talk of competitors like Lanxess or Dow Chemicals. So we are operating only in the one segment of the market. In terms of the growth, as we have mentioned that we have set up USFDA complying facility in Ankleshwar and these approvals are still under process and we expect that in the coming year, the operationalization of this facility in terms of the turnover should start reflecting and we expect that the profitability should improve in the US market also. In terms of the USP, we have been in this business since 1980s and our quality and our ability to address the customers is well known locally as well as in certain pockets of overseas and we have a continuous R&D facility which helps us to keep pace with the market presence. This Resin business requires a lot of investments in terms of manufacturing capacities as the Engineering segment. This business since we have been there since 80s and we have been continuously augmenting our capacities locally, so we expect that our businesses internationally as well as locally should keep on growing. Page 8 of 15
In this segment, if one were to look at the growth in the last decade, how much will it be? Double digit growth we have been seeing in this segment actually. Apart from Dow Chemicals, which other company you mentioned would be? Lanxess would be one more company which offhand comes to my mind, GE is there in the overseas segment. Anything do we supply to them directly? We do not directly supply to these manufacturers. Any of the products where we have monopoly? No. I know you mentioned the figure on the expenses which you have spent for the Sri Lanka project. But going forward, do we expect any more of these expenses without revenues to come in or we would see those revenues on symmetrical basis starting in from Q4? As I said earlier, the revenue recognition in the fourth quarter we are not able to commit at this juncture but definitely as we come to the 17-18 quarters, there will be revenue, there will be expense. So we do not expect only the expenditure to come into the P&L. At the moment, just wanted to get your sense on what is your plan in terms of the debt are we with Sri Lanka project also kicking on and are we planning to reduce any debt in FY 18-19 period or it will remain at the same levels because we are bidding in for any newer or larger projects of this size? Debt primarily increased if you see more in the long-term because to fund the CAPEX. So in terms of the working capital debt, we do not expect significant change. Our debt-equity ratio we are quite comfortable. So we could assume it to remain at the same levels? That is right. But have we planned any additional debt at the moment? Other than the CAPEX, no specific debt has been planned. How much will that CAPEX be? Page 9 of 15
Should be in the region of another Rs.10-15 crores for FY 18. On fully consolidated basis or it will be slightly more on consolidated basis? Consolidated will be slightly more, but not much. Thank you. The next question is from the line of Prateek Singhania from Param Capital. Please go ahead. Sir, my first question would be regarding the Chemicals business. What kind of volume growth did we see in this quarter and vis-à-vis the realization growth YoY and QoQ? In terms of the volume growth it would have been more. What has happened is we have seen some cost efficiencies which to some extent we have passed on to the end customers, there would be some element of volume growth but it is difficult to just pin point a figure because we have a huge number of products line, but there is the volume growth. You said that you passed on the efficiency to you customers. So you do not have a pricing power in this Chemicals business? Have a pricing power, but to some extent if there is softening of the commodity prices or to take care of the market competition also and to grow the volumes, sometimes we do pass on the pricing benefit also. So this 16% of PBIT margin what we did in Q3 FY 17, is there a possibility that this 16% can go up to say 20% to 25% over next two-three years or this is the maximum peak level of PBIT margin that we should expect given that if you pass on the benefit of any efficiency arising to you? It will be difficult to put a ballpark figure on this at this juncture. As I said, we expect the margins to be sustainable. We are always trying to improve the margins further. But our endeavor is towards increasing the margin, right? That is right. You said that you are also focusing on bringing more niche products. So over there, can we expect the margins as and when they start contributing could be material like what kind of a product you are trying to venture into? When we say niche products, definitely the profitability will be better, that is the objective, margin definitely will be better. Page 10 of 15
For the Sri Lanka project, like how much money has been spent till date on that project? Last two-three years, we have spent close to say $2 million probably. You said incrementally you will be spending around Rs.10-15 crores? What we have spent is not CAPEX, it is part of the EPC order and it is nothing to do with the capitalization. You are trying to mix up two things, that is not correct. So in this $200 million of order, what is the breakup between say annual maintenance and is this entirely EPC? This is EPC because we have to do a lot of the soil work studies, travel, all these work will have to be done. CAPEX is different, CAPEX is for Chemicals business and Engineering business. So in that $200 million would be also bifurcated between the services part and the component part, right, what is the breakup of that? As we have mentioned, it is integrated water supply project. There is no separate breakup in the services, it is order of the projects. Contribution of the projects and carrying out the distribution of the water pipelines. So you said there would not be any incremental working capital requirement for this project? This is the EPC project. There will be the advance of the project and we will be receiving our payments against the running basis. What kind of EBITDA and PAT margin are we targeting in this order? We cannot comment on those margins of the order. You do not report consolidated quarterly numbers and if I see last 3-4-years on annualized basis the sales is okay, it is more or less same, but when it comes to EBITDA margin especially the PBT and PAT, the consolidated and standalone is wide apart in terms of the profitability. So as an investor like we do not get to know the real picture of what exactly is the profitability of the company QoQ, standalone is not representative of the performance of what you are delivering. So how can you address that sir, even if say it is not audited, it is not reviewed, at least give us some ballpark figure saying that this is not audited, this is not reviewed but this is what we have compiled by MIS kind of a thing. Page 11 of 15
Because of the unfavorable market conditions, the performances are muted, we have already mentioned that. Why we are not in the position to give the consolidated results? One of the reasons is that they are the foreign companies, these are the joint ventures abroad also, and in the accounts audited, reviewed and all those things. We are working towards that aim, in future we would like to consolidate and give the quarterly results. Even if it is not audited, you can give just pro forma, right, giving a disclaimer that this is not audited by the auditors like even yesterday also one of the listed companies they give it that way that it was not audited by the auditors, so you can have the look but this is just the disclaimer. We do not give the unaudited this thing. As I told you, the subsidiaries are operating in the Chemicals segment, definitely they will show the improvement. Thank you. The next question is from the line of Yash Agarwal from Crest Wealth Management. Please go ahead. This Ankleshwar facility is US FDA approved, I want to understand how big will be the size of opportunity for you what sort of sales can you look at yearly from this new facility and when will this get operational? We expect all the approval process to get because being USFDA facility, certain approvals from the customers are also required from the regulatory authorities, so we expect those approvals to come through in second half of 17-18, but as far as the revenue and margin, unfortunately at this stage we are not in a position to give any guidance. How much money has been spent on this facility? It would have come in the normal CAPEX of this Ankleshwar facility. Coming to this Sri Lanka order, it is about Rs.1200 crores executable over three years, right, so that means Rs.400 crores yearly right for you? We cannot divide by three, but roughly yes. So can we expect like this Rs.450-odd crores annual run rate of Engineering going to Rs.750 crores by next year at least Rs.300 crores jump? This will definitely add to my regular Engineering revenue. Page 12 of 15
This Engineering segment EBIT margins are 3-3.5%. What is the ideal number that you are targeting? Why is it so depressed right now this 3-3.5% number? This industry is like this and that is the margins are like that. Yes, we are working towards improvement on the margins. But unfortunately, something or other goes wrong particularly economy at the moment is in question, then some other issues coming up like we had some inflation coming out of the demonetization. So you expect this margin to be here only at 3-3.5? We want to improve it and we would like to have better margins definitely, with this Sri Lanka order margins overall definitely will be much better. This Rs.600 crores order apart from the Sri Lanka is purely domestic or there are exports also in it? Including exports. How much is exports in it and which countries are they? They mainly will be in the Asia Pacific and the Middle East countries and generally what we have seen is the large exposure in the Engineering exports, local projects and Engineering exports are 50:50 in terms of the order book pipeline. How much is the large orders as a percentage of the order book? Export orders will be in the region of around Rs.200 crores. This Rs.3500 crores bid pipeline that you mentioned is domestic plus international or is only domestic? Domestic plus international. Generally, where is the profitability higher in domestic or international orders? International. Thank you. The next is a follow up question from the line of Dimple Kotak from SKS Capital. Please go ahead. Dimple Kotak: In the previous concall as you mentioned that the export market is not doing well and is expected to do better in H2. What is the situation currently? Page 13 of 15
We are seeing some encouraging signs but still it is not to our expectations, it is still a bit flattish kind of market which we are facing. Dimple Kotak: What is the outlook for the foreign markets for export orders you are expecting going ahead? As I said, we are expecting it to improve. So hopefully in the coming quarters, we should see some traction but it really also depends on how the global economy factors impact the market. So there are too many variables. It will not be possible for us to give some kind of concrete answer on this. Dimple Kotak: What percentage of the subsidiaries constitute the top line and the bottom line on a consolidated level? 10% would be the top line and unfortunately bottom line is the loss, standalone profit goes down when we are consolidating it, on consolidation basis standalone contribution is 100%. Thank you. The next question is from the line of Kunal Bhatia from Dalal & Broacha. Please go ahead. Just wanted to know in terms of your receivables how are they in terms of Engineering and the Chemicals business? If you could also segregate how are the receivables in case of the government and the non-government orders? As we have informed earlier also, the Engineering segment, the payment terms are bit elongated in terms of there is a fair bit of retention which goes in each and every year order. So that is also reflected in the receivables. So if you see a large part of the receivables, major chunk will be of the Engineering segment. In terms of the mix, it will be largely a mix of both government as well as the private sector. How much will be the government and private? When I say private, it includes the public sector also, so when I say including public sector and the private, majority should be in that segment. Like how much percentage would be purely from the government side? Presently quite frankly it is not possible to tell at this juncture, maybe offline we can just come back to you. How about in case of the Chemicals business? Chemicals segment, the receivables will be substantially lower as a percentage of the total receivables. As I said, majority should be in the Engineering segment. Page 14 of 15
But any kind of improvement you have seen on that end in terms of receivables? In terms of receivables, there have not been a deterioration, that much we can mention. Sir, because you were just mentioning something about the issue because of the demonetization, so just wanted to get some sense? It has affected the sales, on the receivables part we have not seen much of impact but certainly in terms of the offtake, in the Consumer Products segment and in certain medium segment, the offtake had come down. Thank you. That was the last question, ladies and gentlemen. As there are no further questions, I would like to hand the conference over to Mr. Vasant Naik for any closing comments. Thank you very much to all the participants for taking your time out and joining us on this Earnings Presentation. We hope to continue to interact with you in the future. Anuj Sehgal: Thank you, everybody. On behalf of Ion Exchange and Valorem Advisors, we would now like to end the call. Thank you. On behalf of Ion Exchange (India) Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Page 15 of 15