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Radico Khaitan Ltd
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Ladies and gentlemen, good day, and welcome to the Q4 and FY '22 Results Conference Call of Radico Khaitan Limited hosted by Emkay Global Financial Services. [Operator Instructions] Please note that this conference is being recorded.
I would now like to hand the conference over to Ms. Saaksha Mantoo, Emkay Global Financial Services. Thank you, and over to you, ma'am.
Thank you. Good afternoon, everyone. I would like to welcome the management and thank them for this opportunity. We have with us today, Mr. Abhishek Khaitan, Managing Director; Mr. Amar Sinha, COO; Mr. Dilip Banthiya, CFO; and Mr. Sanjeev Banga, President, International Business.
I shall now hand over the call to Mr. Abhishek Khaitan for his opening remarks. Over to you, sir.
Good afternoon, ladies and gentlemen. Thank you for joining us on our fourth quarter FY '22 results conference call. I hope you are all doing well and keeping safe. Building upon the momentum from the first 9 months of the year, we have delivered another quarter of a strong IMFL volume growth led by Prestige & Above category, which increased by 28%. In volume as well as value terms, Q4 FY '22 has been the highest ever reported by Radico Khaitan. We have continued to outperform the industry for the sixth consecutive year with total volumes of 26.4 million cases in FY '22, which is 18% year-on-year growth compared to an estimated industry growth of 13%.
Our growth was broad-based across the portfolio and across states. 8PM Premium Black whisky, which achieved a 1 million case mark last year, has crossed 2 million cases volume. It is now available across 20 states and will continue to contribute to our growth. Recently launched Royal Ranthambore whisky and Magic Moments Dazzle Vodka are now available across 7 states and continue to gain consumer confidence. We are focusing on placement and expanding the width of distribution for these brands to take them to pan-India level. As we continue to make investments behind our core premium brands such as Magic Moments Vodka, Morpheus Brandy, 1965 Spirit of Victory Rum, et cetera, they are all gaining traction, particularly in the post-COVID period when the social activities have resumed. Widespread volume has picked up the pace of growth.
Magic Moments Vodka is seeing very strong volume traction, which will be a key growth driver for FY '23. Jaisalmer Indian Craft Gin is making exciting progress as we continue to expand its distribution in India and it is available in 12 states now. We have recently launched an exclusive gold edition of Jaisalmer for the exports market. Our long-standing brand strategy is delivering anticipated results as we continue to record robust performance. We have a diverse portfolio that will reinforce our future growth trajectory. We expect to maintain the volume expansion trajectory of 13% to 15% in FY '23 with stronger Prestige & Above growth.
As you are aware that the cost of key raw materials remained at multiyear highs, which has impacted our profit from operations. In the near time, the situation is expected to remain volatile. During this period of uncertainty, we are focused on valuating across the brand portfolio to minimize the impact of cost push. We have already received price increases in the states of Uttar Pradesh, Uttarakhand, Madhya Pradesh and Rajasthan and are also pursuing other states. This would help us offset the input cost pressure to a large extent. This, coupled with the backward integration benefit from our Rampur greenfield plant, is expected to help in profitability improvement during the second half of FY '23.
The impact of the cost push has been much severe in the non-IMFL business where we are expecting a price increase soon. On the IMFL portfolio, the inflation was offset to a large extent by the ongoing premiumization. Both the Rampur greenfield and Sitapur greenfield projects are progressing well and are ahead of schedule. We have already placed fixed price orders for the key equipment with the global vendors. The civil construction is on full swing. We expect Rampur dual feed plant to be operational by Q3 FY '23.
Our brands are very buoyant. Overall, we are happy with the growth trajectory of our P&A portfolio. Even the industry continues to be very resilient. There is, of course, inflation which is driven by global macro situation. We are doing everything that is in our control to deliver industry-leading growth while, at the same time, driving the savings across import materials. We are seeing this as an opportunity where well-capitalized companies with strong brand portfolio and pan-India presence like Radico are likely to emerge stronger.
From FY '24 onwards, we have multiple levers for profitability improvement. Both our Rampur and Sitapur plants will be operational with UPML volume growth, our non-IMFL margins will also improve. We will have higher volume contribution from Rampur Indian Single Malt and Jaisalmer Gin, which coupled with ongoing price increases, will help us get back to our historical EBITDA margin level.
I would now like to hand over the call to our CFO for a detailed operational and financial review. Thank you, and over to you, Dilip.
Thank you, Abhishek. Thank you, everyone, for joining us on this call today. During the fourth quarter, we reported IMFL volume of 7.29 million cases, representing an increase of 16.3% on Y-o-Y basis. This was led by Prestige & Above category volume growth of 28.1%. In value terms, Prestige & Above category registered 30.5% growth. Prestige & Above category account for 31.1% of total IMFL volume compared to 28.2% in Q4 of FY '21.
Net revenue from operation during Q4 was INR 813 crores, representing an increase of 18% compared to Q4 FY '21. During this period, IMFL sales value increased by 21%. As a percentage of total revenue, IMFL sales account for 81.7% of net revenue compared to 79.5% in Q4 last year. Gross margin during the quarter was 42.7%. This was impacted due to the ongoing commodity inflation, particularly in non-IMFL business. On Y-o-Y basis, some of the key commodity prices have increased in the range of 30% to 50% during Q4. Despite a significant increase in the raw material prices, the gross margin for the IMFL business was relatively less impacted owing to a favorable product mix. ENA prices have increased by 7% due to higher input raw material prices.
Going forward, we expect our material prices situation to remain volatile. We have seen further inflation in packaging material in April '22. However, over the last few weeks, the trend of certain commodity globally seems to be stabilizing now, but it is difficult to comment on the way forward. Government has also taken a number of proactive measures to contain the inflation, which should help alleviate the situation. Company is taking all efforts to optimize cost and to mitigate any margin headwinds, which, along with recently refined price increases, shall help in offsetting the inflationary pressure. We are undertaking a company-wide, brand-wide value engineering exercise which will also add over the longer term. In the long term, we expect to continue our margin expansion trajectory given our portfolio premiumization and backward integration.
Finance costs decreased by 51% on Y-o-Y basis from to INR 4.6 crores to INR 2.3 crores during Q4 FY '22. The company's cost of borrowing is one of the lowest in the industry due to stable profitability, strong capital structure and improved liquidity position. We have also further tightened our working capital, resulting in a continued strong cash flow generation. During the year, we reduced our net debt by INR 82 crores after CapEx of INR 71 crores on new projects. We have a strong financial position and a comfortable liquidity. During these times, we are taking all necessary steps to sustain our financial strength, maintain robust business model and grow consistently, competitively and profitably.
With this, we will now open the lines on Q&A.
[Operator Instructions] The first question is from the line of Harit Kapoor from Investec Capital Services.
Just had 2 or 3 questions. First was on the 13 the% to 15% growth that you are expecting going forward. Would that be at an overall level? Or are you saying for IMFL or for P&A? What's the -- you expect guidance for?
So we are expecting this 13% to 15% growth on the overall IMFL, where the Prestige & Above category are going to grow at strong double digits.
Got it. Got it. Second thing, Dilipji you mentioned that you will get back to historical margin level, which is that 16%, 17% kind of a number which you had achieved in FY '21. Would it be fair to assume that the full year '24, given the benefits that you've got to get from the CapEx as well as possible price hike, by then and you can achieve, is that something that you'll be targeting to get back to?
So yes, we will be, again, back to our expansion trajectory from H2 of current year. And in '23, '24, we will be back on 16%, 17% kind of margin with the ongoing premiumization, the price increase, non-IMFL, again, going back on profitability. Our production facilities will be on, so backward integration profits will also continue to be derived. So all these factors and the value engineering which we are doing, which will be also customized, sustainable and consistent, so we will be going back on our margins, which as we have guided earlier.
And plus also in FY '23, '24, we'll get extra production of Rampur. So that will also help us a lot.
Got it. Got it. And last thing was on the last call, Amar had also spoken about a separate distribution kind of that you're creating for the go-to market that has been created for the on-trade. So if you could just give us a little update on that, any targets for fiscal year '23, that will be very helpful.
So I'll tell you, see, basically, we are very strong as far as the off-trade distribution is concerned. Now with the growth of the premium portfolio of Radico, which will be -- in fact, we'll be having products in almost every category of the premium segment and super premium segment. So we are strengthening our on-trade distribution structure. And that is very critical because now post-COVID, on-premise consumption has also started spiraling, showing a growth. So this will give us advantage in the coming year, FY '24.
Yes. See that was my question. So what are the steps you are taking to kind of drive that on-trade? Because my sense is pre-COVID on-trade was 4%, 5% of the business. What are the kind of steps that you take to kind of improve the -- now that you have the product portfolio in place, what does it take to kind of drive this?
So let me tell you, see, earlier, we had a very thin team because the number of brands are also thin. Now that we are represented in vodka, whiskey, brandy, in all the categories and gin, so we are basically expanding our structure to all the metro and Tier 1 cities where we are putting people in place to cater to these on-premise outlets. And at the same time, we are also now beginning to bring the visibility levels and these on-trade outlets to the next level. I think these 2 things put together will give us substantial trials and awareness for our products and as well as -- yes, of course, trial and awareness for our products in the year ahead.
The next question is from the line of Kaustubh Pawaskar from Sharekhan by BNP Paribas.
Congrats for good volume growth number. So my question is on the price increases, which you have witnessed in some of the space. Can you just elaborate on the same? In which markets you have seen price hikes and the quantum of the price increases?
See we've got price increase in the state of Uttar Pradesh. So that is, overall, say, in the range of about 7%, 8%. And then we've got in states like Uttaranchal, Uttarakhand, which is in the range of about 10% to 15%. Rajasthan, we've got 6% price increase, MP also, we've got about 10% price increase. So overall, blended, it comes to 300 basis points.
Okay. Sir, so blended comes to 300 basis points. And plus there would be a mix improvement which will add on to your realization in FY '23, right?
Yes, absolutely. And plus, we are also expecting price increases from other states where we are working very hard. So hopefully, we should be getting price increases in the coming months.
Sir, my second question is, you have presence in some of these large markets. So can you just give some perspective on highlights of how was the performance in these markets in FY '22? And what are your expectations considering the fact that you have been expanding your capacity?
So I'll take this question. So I should, first of all, tell you, it's very difficult to give you state-by-state performance, but I'll give you some very specific highlights. You see, like Abhishek began by saying that 8PM Premium Black achieved 2 million cases, Magic Moments is showing buoyancy and is on a very high growth trajectory. All power brands have grown in double digits, all of them in the year '21, '22. Further, all flavors and categories have grown in double digit with overall growth of 18% and power brands growth at 24.5%. The P&A market share -- actually, the P&A market share of Radico has grown by 1% point. So overall, if you see this year, we have shown growth in every product, every geography that we are represented in.
On the top of head, that for last 6 consecutive years, we have continuously outperforming the industry growth. So our market share across the -- or most of the large market is growing. Like on 11 out of the top 11 markets, we have outgrown from the other industry players, is 7. So it is a broad-based growth and broad-based in category as well.
Right, sir. Right. And my third question is on the capital expenditures. So this year, how much would be our CapEx, considering you have -- you are expanding your capacities and new facilities will be coming on. So for FY '23, what would be your CapEx?
So we have actually had these 2 projects. One is the greenfield project of Sitapur, which along with our 350 KLPD grain-based distillery has ramped more maturation with a large capacity as well as there are some 10 million cases in the beginning of the bottling capacity. The CapEx has been envisaged at INR 550 crores. And for Rampur dual feed, it is INR 180 crores. So all put together, 80%, 85% of the CapEx will be done. We have 10%, 15%, which is on performance-based and all that will be disbursed in the coming year '23, '24. Our projects are well on time, rather some are in advanced stage or earlier to what we have envisaged. All the orders have been given to the leading global vendors and is on a fixed price contract. So we are well on course for the CapEx.
Production will also start in Q3.
Yes, dual feed production for grain-based alcohol will start from the Q3 onwards.
[Operator Instructions] The next question is from the line of Pritesh Chheda from Lucky Investment.
Sir, the CapEx that just you mentioned is INR 180 crores plus INR 550 crores?
Yes.
Okay. And both will become operational this year or next year?
So the Rampur dual feed will come in operation -- full operation from Q3, and the Sitapur plant will come in operation at the Q4 end. So beginning '23, '24, this will be operational fully.
So this will -- this grain alcohol is meant for substituting what you purchased from outside or it is meant for your growth?
So yes, we -- actually, as we have earlier guided when we have announced this CapEx and given a full background about the reason and rationale behind doing the CapEx, the government has -- UP state has created one category, which is a grain-based UPML. Before you see in Southern India, it is economy, IMFL and all that. So the molasses-based UPCL firstly has been converted for 42.8% category, which is around 25% to 30% of the overall volume. It's a large industry of 80 million cases. So we have a sizable market share. And in that, after our own grain alcohol, we will again be back in double-digit kind of EBITDA margin. So this was an important, for us, they still to cater to this segment also.
So the CapEx has -- one is the part of UPML, and another is with our grain with our volume expansion, as we have grown last year also in P&A category by 24.5% and on overall 18%. Looking at the India, this industry growth and all that, you are chockablock for our grain-based alcohol. We are also actually covering -- these are extending this alcohol to other units, et cetera, for our premium products like Magic, Flavor, Morpheus, et cetera. So this has also made us to think about that we should have our own grain-based alcohol. In 3 to 4 years' time, this 100% alcohol will be used for our own captive consumption.
Okay. Sir, my second question is, you mentioned in your opening comments that gross margin on IMFL has not been impacted. It is non-IMFL which brings down the gross margin. So if you could tell us what is the gross margin impact on account of non-IMFL or what is the EBITDA impact?
So gross margin on the non-IMFL used to be in the range of around double digits like 10% or so. In last quarter, Q4, it has come in the negative, this thing. And because of that, there is a pressure. 2/3 of the pressure on the operating margin is on account of non-IMFL. Last 1/3 is on account of the increase in the ENA and the grain price and the packaging material. So my gross margin on the IMFL has just been impacted by 200 to 230 basis points, whereas it's largely impacted on account from a positive 10% to a negative. So large impact has been non-IMFL which we are very hopeful at the advanced stage of stocks are on with the government, and we are very hopeful to get our prices increase soon.
Okay. Understood, sir. And my last question is, sir, there's this observation that there is actually a drop in your realization per case in the year gone by. If you could shed some light there based on the...
Realization per case has rather improved because of improvement in P&A category because P&A growth has been overall 25% in the whole year. So actually, it has gone up. You will see that volume and value growth also has a traction of around 350 to 400 basis points. So gross realization per case, overall basis as well as in P&A category, because of the improvement in my product mix, whereas we are also launching the brands like Royal Ranthambore, Magic Moments Dazzle, it has been rolled out in 7 states, it is to be rolled out in the coming -- this year in pan-India also. So we are expecting a continuous improvement in our per case realization on IMFL business.
I'm actually unable to -- okay, you have given the IMFL and non-IMFL. Okay. So it is because of the...
So look at our latest presentation.
Okay. I'm on Slide 6 to understand actually. I'm actually looking at that. Okay. Okay. I'll get back, sir.
The next question is from the line of Nikhil Chowdhary from Kriis PMS.
Congratulations on a good set of numbers with strong double-digit growth. I wanted to understand, sir, our year-on-year growth has been really healthy on the volume trend, even on the Regulars & Above. But Prestige was a bit -- like probably, we saw 4% degrowth quarter-on-quarter. Any specific reason? Or January Omicron was probably the thing that impacted it?
So Q-on-Q, yes, we have again been on listing that Prestige & Above.
Yes. There is actually -- this is hardly any -- this thing, 3.9%, you're right. But it is the, again, the quarter 3 from the seasonal point of view is the highest quarter for industry. However, yes, but this is a marginal impact. It is consistently growing. And in this quarter, again, yes, overall volume and growth has been 16%. And for the year, full year, we have grown 18%. Overall, where the Prestige & Above has been 24.5%.
Understood. Understood, sir. Sir, and second question was probably on the gross margin again. You have very well explained like what was the impact. But if I probably refer to the market leader who reported the numbers recently, although we have a higher gross margin, like historically, vis-à-vis the market leader. But here, even the margins of the market, it has not impacted. Were they able to take price hikes or like something different that I'm not able to understand?
See, one is the model is a little different. I don't want to have a detailed discussion, but there is some model where there is a large part of their revenue comes from royalty. And there is, in our case, it is completely our own sales. So the top line apple-to-apple basis is different. And secondly...
Yes. Understood, sir. And sir, last question, sir, I wanted to understand probably, I have seen we have been doing a lot well with our new launches also very -- probably we are doing very good with our 8PM, Magic Moments, worth and all. Wanted to understand, few of the brands we don't think about, 1965 and all spirits, probably is there any strategy if they're not contributing, we'll try to defocus in years to come and then focus more on probably brands like Royal Ranthambore, Jaisalmer Gin, Magic Moments and the brands that are doing really well for us, to defocus our strategy and focus on the power brands going forward?
So let me tell you, 1965 Rum is a power brand for us. We have at almost 10% market share in the defense services. This product was originally conceived for the defense supply. But seeing the great response in the defense, we are now selling it in the civil market, domestic market, and we are expanding distribution here. Rest of all the products are extremely buoyant and they are doing pretty well. Even 1965 Rum has shown a growth up 20% this year. So yes, we are focused on all of our brands, and they are all buoyant.
The next question is from the line of Sonaal Kohli from Bowhead Investment Advisors.
I had some questions regarding the EBITDA margin extrapolation which you have given. So when I look at your CapEx which is coming up, is my understanding correct based on certain calculations we have done that you have at least 350 basis points addition in your EBITDA margins in FY '24, based on the CapEx you have done? Or does that assumption flawed?
So Sonaal, the EBITDA margin overall for the year has been 14% versus last, say, 16.9%. As I said, that 2/3 of our margin erosion in EBITDA as well as in gross large...
I'm sorry. Maybe not clear too. Let me repeat my question. I wasn't referring to this year, I'm talking about FY '24. So you are doing the new CapEx, right? The CapEx will fully pay you off for the full financial year in FY '24. It will partially pay you off in FY '23. So when you take the benefit of this CapEx, ENA which you are going to make from molasses, my understanding is the benefit would be conservatively 350 basis points of that vis-à-vis if you were outsourcing it like you're doing now? Firstly, is that assumption correct or incorrect is what I'm trying to ask you.
So you are talking about after my CapEx is full in the stream in '23/'24, the improvement in EBITDA margin will be?
Only because of that. Other things being core.
No, it is partly because of the backward integration where we will have our own facility of grains and partly because of the product premiumization, so right? So keeping these both points together, there are multiple levers. One is this backward integration; another premiumization; and third, which is also a big lever, that we have a good quantity available of Rampur Indian Single Malt from '23, '24 onward. So this will also add to our gross margin as well as EBITDA margin. At the same time, these brands which we have launched in the last year, like Royal Ranthambore whisky and Dazzle, which is being taken to pan-India in the current year. So we are going to gain the momentum in all my premium portfolio. So it is both because of that. And we are very confident that we will be again back to our margins which we were having and we were guiding about. So '23, '24, our margin will be better than what we used to have.
Sir, so my question, is specifically to this CapEx. Because I tell you why I'm asking this question. Based on several scenarios we ran, based on our past discussions, it looks like that you will have at least 350 basis points expansion in margins because of your CapEx, which is very reasonable results. Historically, walk through for is 2% less than your year margins.
I can say, well, Sonaal, that the delta of the CapEx still is continuing there. The delta, we have calculated in the current cost structure also. The delta of CapEx, giving the return is still at the level which we were envisaged because from both sides, the grain prices and all that have gone up. At the same time, the ultimate finished product ENA price is also moving up.
Yes. So what I'm seeing is the margin assumptions you are taking, my numbers are coming out to be much higher than what you are saying. So maybe you can discuss it off-line. But my assumption was coming out to the 350 basis points benefit on the account of this CapEx, then you had a 15% hike in continuous efforts. So the benefits would be 270 basis points. Then you have delta of several things, so the margins are not adding up. I mean, but we can just discuss it off-line. Maybe it's too much of...
Yes, we can, we can. Yes.
I had a second question, sir. The -- what was the advertising spend and my call got disconnected. So did you say 13% top line growth for next 2 years? Or did I hear you correctly?
No, we have told that our volume growth in the IMFL segment would be in the range of 13% to 15% for the current year. That is what we are envisaging.
And sir...
The value growth would be a little higher.
Sir, as far as this quarter was concerned, the price hikes have happened back end of the quarter. So when you say 3%, you mean 3% blended average for the quarter? Or the entire price hike was 3% because you may have got a hike in different periods of quarter, so the full impact of that may or may not have come in the quarter. So can you explain when you say 3% what exactly you mean?
So this is the overall blended weighted average for full year basis. So the price hikes have come in, in the April, May, in these months. Like the UP has come from April 1, rest have come middle of April or end of April. So overall, weighted average, we worked out on our net sales business is a 300 basis point, whatever price increase have happened. We are also -- and we saving a couple of states at advanced stage pricing and during this year, we are seeing with the cost push and all that, the price hikes will happen in some of the large states even. So let's see. But we are very confident and hopeful.
Sir, last question. Your raw material cost inflation compared to Q4 versus Q1, is my understanding correct, there's another 100 basis points, 150 basis points inflation?
So on IMFL, yes, it is 100 basis points to 150 basis points on a Q-on-Q basis, IMFL, yes. But non-IMFL, it is much larger.
[Operator Instructions] The next question is from the line of Chetan Cholera from Pragya Equities Private Limited.
What will be the debt -- outlook for the debt in another maybe 2, 3, 4 years down the line as we are doing a lot of CapEx.
So as per our plan, our debt at this point of time on a net basis are INR 119 crores. With the current cash flow and internal accrual being deployed in the project expansion and all that, debt at -- peak debt will be at March 23, which will be in the range of INR 600 crores to INR 610 crores. And thereafter, we will have a free cash flow. In 2 years' time, we will be a debt-free company. So as per our plan that by '25 we'll be a debt-free with some surplus.
And secondly, what's the reason for maybe 5 years down the line? Because since I'm a long-term investor, I'm an investor since last 7, 8 years, so. So vision for the company for next 5 years.
Vision of the company for the next 5 years.
Yes.
Yes. Actually, our vision over the next 5 years is this, that we would continue to drive our premiumization journey. We want to leave the area where we have launched the brands. There are brands in the luxury segment which we are taking to global level. So our vision is to make this as an Indian MNC with a global brand presence. In India, we are actually finding the places, and we are the largest leader in the white space segment, in the brown space segment, also we are the leading player in the brandy. We have the highest price point. Rum in the country with 1965 and all that, having a market share of 10% plus in the defense category. And in whisky also, as you have seen, where we have launched the products like Royal Ranthambore, which is the first time an Indian company launching a product at the scotch prices and above that, so right?
And as you've seen that in my recent this thing, we have also launched a couple of brands like for the international market, and we will add to that. I think this Jaisalmer Gin, which after the opening of that -- the travel and all that, is -- and we are expanding our footprint in Europe, America and everywhere in the on-trade and on the restaurants and bars and hotels. So these are the areas we are working very hard. And for a new brand, which has even launched recently, just a month back, in Jaisalmer -- I think on Jaisalmer Gold Edition, which is priced even higher than the Monkey 47 and all that at 500 ml, this will be also rolled out from July onwards. So this -- we are working for making this an Indian MNC company.
Any point of time you give thought on dropping any strategic investors?
Naturally, we have reiterated this point, I think, at least 5, 7 times earlier also. We want to be a true Indian global MNC, number one. Number two, with the debt-free balance sheet, we have proven that even in the single malts, we have been able to create a brand where the demand is more than the supply. So I think with a debt-free balance sheet and with a strong track record of developing organically Indian brands, we are not looking for any strategic partner. In fact, we will -- we want to create luxury brands which will command in the global arena also.
And see, for the one -- just one point to add is that in the next 3 years, with the way premium products are being cultivated in Radico, you will find that Radico will be the one company which will have the largest portfolio of premium and super premium and super, super premium products. And that you can therefore imagine where this company stands to be in the next 3 years.
And any thoughts on entering other category of alcohol, like beer or something?
No, we will be concentrating in that. The liquor itself has so much of opportunity, and beer is a very CapEx-oriented industry. So we have no plans of entering into beer. Our focus will be purely IMFL.
Ladies and gentlemen, this was the last question for today. I would now like to hand the conference over to the management for closing comments.
Thank you, everyone, and we have continued to deliver upon our premiumization strategy, which is reflected in strong P&A volume growth during the quarter and full year. All our core premium brands are registering a strong growth. The 2 of new luxury brands are also doing very well and continue to receive positive consumer and sale feedback in the new markets that are being rolled out. Next year, we will roll them out to pan-India basis. There has been a near-term margin pressure due to the commodity inflation, but we are confident of maintaining our long-term margin expansion given the premiumization of our portfolio and backward integration. We look forward to interacting with you all on our next earnings call. And in the meantime, if you have any query, please follow up with me or my colleague, Saket Somani, will be free to give you any reply. Thanks a lot and stay safe and healthy.
Thank you. On behalf of Emkay Global Financial Services, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.