Galaxy Surfactants Limited (GALAXYSURF) Q3 FY23 Earnings Concall Transcript

Galaxy Surfactants Limited (NSE:GALAXYSURF) Q3 FY23 Earnings Concall dated Feb. 13, 2023.

Corporate Participants:

Unnathan Shekhar — Promoter, Managing Director

K Natarajan — Executive Director and Chief Operating Officer

Abhijit Damle — Chief Financial Officer

Unidentified Speaker —

Analysts:

Sanjesh Jain — ICICI Securities — Analyst

Rohan Gupta — Nuvama — Analyst

Rohit Nagraj — Centrum Broking — Analyst

Dhruv Muchhal — HDFC Mutual Fund — Analyst

Srikrishna Sonti — JM Financials — Analyst

CA Garvit Goyal — MS Research — Analyst

Bobby Jayaraman — Falcon — Analyst

Bhargav Buddhadev — Kotak Funds — Analyst

Unidentified Participant — — Analyst

Malay Sameer — Breakthroughs in Stock Market — Analyst

Divyata Dalal — Trident Capital Investment — Analyst

Dinesh Pathak — Atos Asset Management — Analyst

Presentation:

Operator

Ladies and gentlemen, good day and welcome to Galaxy Surfactants Limited Q3 Ninth Month FY ’23 Earnings Conference Call.

This conference call may contain forward-looking statements about the Company, which are based on the beliefs, opinions and expectations of the Company as on date of this call. These statements are not the guarantees of future performance and involves risk and uncertainties that are difficult to predict. [Operator Instructions]

We have with us Mr. Unnathan Shekhar, Promoter, Managing Director; Mr. Natarajan K. Krishnan, Executive Director and Chief Operating Officer; Mr. Abhijit Damle, Chief Financial Officer from Galaxy Surfactants Limited.

I now hand the conference over to Mr. Unnathan Shekhar. Thank you, and over to you, sir.

Unnathan Shekhar — Promoter, Managing Director

Thank you. A very good afternoon, ladies and gentlemen. It gives me immense pleasure to welcome you all once again for our quarter three FY ’23 conference call.

Before we get into details, it is important for all of us to understand the journey, the story that has played out over the last 18 months. It was exactly a year back when we had reported one of our weakest quarters. This had come on the back of another weak quarter, which saw your Company report its first volume decline. Questions were being asked on the inherent strength of our business model. And though we remained confident, we knew only our actions and performance could reinforce and reassure our investors. As American author Robert Collier once said, success is a sum of small efforts repeated day in and day out. And at Galaxy, we have practiced and demonstrated the same over decades now.

It has been the small and consistent efforts put in by our team day in and day out that has ensured that we report our best quarter till date in terms of operational profitability and record the best calendar year in Galaxy’s history. Truly a remarkable turnaround when compared to our performance 12 months ago, given the highly volatile macro backdrop.

It is important to understand the context here because, on one side, we had an inflationary as well as a deflationary backdrop. On the other, we had significant demand cutbacks and deteriorating economies. But despite the multi-fold challenges, we have consistently grown and achieved our FY ’22 profit in the first nine months of FY ’23.

The consistency demonstrated by the team is worthy of praise. And I take this opportunity to acknowledge and thank them for the same. While numbers are lag indicators, one of the lead indicators is the equation we share with our customers. It gives me immense pleasure to share with you all that we recently received the Clean Future Partner award from Unilever. This award was only given to six suppliers globally who have partnered with Unilever and through multiple innovations, enable them in their journey towards a cleaner future.

As it is said, success is a journey and not a destination. And for us, the journey of innovation, partnering with purpose with all our stakeholders and delivering consistent performance continues. The inherent business model remains robust. And with a strong talent pipeline, we remain positive, confident and optimistic of a brighter future.

Moving on to the business performance. It is important that we understand the structural drivers as well as the short-term factors influencing it. India continues to remain a bright spot for us. While the volumes have grown 12% in Q3 and 7.7% for the nine months till December, the bigger picture is what pleases us. Today, we are on course to cross the 100,000 metric tons sales number for India. The same stood at 69,261 metric tons in FY ’18. That’s growing at 8% CAGR over the past five years. Based on this performance, we can safely conclude that the structural uptick we witnessed during COVID as not only sustained, but as inflationary pressures ease, we can expect further build up in momentum. I would urge you all to look at the bigger picture, which remains bright and healthy.

The Africa, Middle East, Turkey region has been a point of concern. While volumes have declined 14.8% till December and 6% for the quarter, it is the macroeconomic volatility that is a point of concern. This year, I’ve seen the Egyptian pound depreciate by 100% compared to December ’21 and the Turkish lira by 71%. While the lira seems to have stabilized, the Egyptian pound in the last one month has further depreciated by 25%. As our performance in India shows a stable macroeconomic environment is a precursor to growth. Stability ensures growth. And it is this stability that has ensured that on one hand we have India crossing the 100,000 metric ton mark annually and on the other, AMET recording its lowest volumes since FY ’17.

On an aggregate level as well as for the past three years, our volumes have remained flat, mainly due to the slowdown in AMET. Nearly 10% of the volume decline on an aggregate level has been contributed by the AMET markets, which has in turn been recouped by the growing Indian market, thus ensuring we remain flat on an aggregate level. But like it is said, there is always light at the end of the tunnel. This quarter has seen AMET grow 11% sequentially, with the bulk of the growth coming from the local Egypt market. While it would be prudent to observe for one more quarter barring for any other currency depreciation, we do remain hopeful that the worst is behind us. Volume momentum at AMET should make a comeback, and we remain optimistic about FY ’24.

The rest of the world has been a mixed bag for us. The last four years I’ve seen multi-fold challenges of varying magnitude. While in FY ’20 and ’21, our volumes got impacted due to the pandemic. FY ’22 supply chain issues further compounded the situation. As supply side factors started improving, the contraction of demand in Europe and China this year adversely impacted our performance. While the challenges continue, we do see our performance improving significantly in FY ’24. The optimism is based on consumption making a strong comeback in Europe and developed markets warding off a recession. This in turn will aid our specialties which declined 9% in this quarter and 5.6% YTD.

Before we move on to the outlook, it is important to understand the nuances of our operational performance which has been the best till date in this quarter. While multiple initiatives are being carried out in terms of product mix, operational improvements, our judicious price cost to capitalize on emerging opportunities, we need to acknowledge that the decline in volumes as well as reversal of multiple supply-led factors have also contributed towards this performance.

While some of these efficiencies will continue in the coming year, but for ensuring sustainable growth, volumes will be the key. While inflationary pressures have impacted the Mass and Mass-tige segments, thus impacting our performance products, easing inflationary pressure will ensure volume growth which will eventually result in correction of our EBITDA per metric ton as and when the same happens. This is particularly be true as the Africa, Middle East, Turkey volumes recover.

The recovery in Europe and China will lead our specialty volumes, thus ensuring volume growth for each of the segments. While the magnitude of recovery and period within which the same happens remains to be seen, we remain confident of complying with our cardinal principles that govern our business growth, which are: volume growth of 6% to 8%, EBITDA growth being higher than volume growth and PAT growth being higher than EBITDA growth with return on capital employed in the 22% zone.

The structural framework that has enabled our growth over decades remains the same and the volumes are an integral part of it. Therefore, while we specifically would refrain from giving out an EBITDA per metric tons guidance for FY ’24, it is safe to assume that your Company will aspire to grow in terms of volumes as well as EBITDA for the coming year.

To conclude ladies and gentlemen, it is said that success in business is all about building, building relationships, talent pipelines, great products and robust processes consistently and passionately. At Galaxy, we have done that for the past four decades and the ensuing decades will be no different.

Thank you, ladies and gentlemen.

Questions and Answers:

Operator

Thank you. We will now begin the question-and-answer session. [Operator Instructions] Should I go ahead with the questions?

Unnathan Shekhar — Promoter, Managing Director

Yeah, please.

Operator

[Operator Instructions] First question comes from the line of Sanjesh Jain from ICICI Securities. Please go ahead.

Sanjesh Jain — ICICI Securities — Analyst

Hi. Good morning — good afternoon, sir. Thank you. Thanks for taking my question. I’ve got a couple of them. One, on your cardinal rule of 6% to 8% volume growth followed by higher EBITDA and then even better PAT growth. Now considering that we are at an EBITDA per kg of close to INR26, INR27 and a volume growth of 6%, 8%. So if we want to comply with this growth where EBITDA normalizes, the volume growth requires to be significantly higher and the contraction in the EBITDA requires to be significantly lower. How should one see this in a very near term? I can agree with you on a longer-term that this may be established and we have done it for last 20 odd years. But for say next one to two year, how should we see this framework working for us? That’s my first question.

Unnathan Shekhar — Promoter, Managing Director

Sanjesh, in any case as far as the last nine months is concerned, we need to understand that some of this EBITDA per metric ton contribution has come from sudden export benefits incentives which we received — which were accumulated for a previous period in Egypt. It was quite significant as far as this nine months are concerned because they were of the order of approximately maybe INR20 crores or so, okay.

So that has been a very important inflow. We have also had certain sourcing gains, which came particularly because of a steep reversal in terms of raw materials during this particular period. And furthermore, as far as the freight rates which were very adverse in the same time last year with improvement in supply chain, those particular — we had a reversal of those reversals, okay?

So these are the sort of significant contributors as far as EBITDA per metric ton is concerned, as far as this quarter is concerned. So over a period of time, what we have done in terms of improvement in EBITDA is of course focused on sudden significant mix as far as our entire product portfolio is concerned. And again chosen customers very, very carefully in the various regions that we operate.

Now, we remain optimistic about — we want to remain optimistic about our volume growth, despite the various inflationary and deflationary situations that we are experiencing in various parts of the world, we would like to remain optimistic as far as our volume growth is concerned. And yes, for us, that particular cardinal principle of EBITDA growth being higher than volume growth, if a guiding principle, which we would like to — not only adhere to follow, but even surpass that. Now that’s it Sanjesh.

Sanjesh Jain — ICICI Securities — Analyst

Fair enough, sir. This INR20 crores benefit in Egypt is for this quarter, or is for the nine months FY ’23?

Unnathan Shekhar — Promoter, Managing Director

No, it was for a previous period. Because as you know, we don’t book any export benefit volumes till it is realized, okay? That is a policy that we have followed which we have communicated many times before.

Sanjesh Jain — ICICI Securities — Analyst

No, sir that is fairly understood. This INR20 crore has been booked for this quarter per se or for the nine months?

K Natarajan — Executive Director and Chief Operating Officer

Basically, we book it on a cash basis.

Unnathan Shekhar — Promoter, Managing Director

And it was booked in this quarter. Booked in this quarter.

Sanjesh Jain — ICICI Securities — Analyst

And what is the same number for the nine months?

Unnathan Shekhar — Promoter, Managing Director

I think more or less everything I think came only this quarter only. Am I right?

Sanjesh Jain — ICICI Securities — Analyst

Okay. Got it. My second question is volume growth. I do appreciate that you have a 6% to 8% volume growth. But considering the sequential 11% growth in the AMET region and from next quarter onwards, we will be on a much favorable base. Do you think next year could be an exceptional year where we’re normalizing for the last two to three years decline in the AMET? That’s Number 1.

Number 2, can Turkey become a incremental challenge for us, given the situation in Turkey remains very fragile? How do you see the AMET in a lens where Turkey is there? And Number 3, are we doing anything for a longer-term protection of this volatility in AMET, or are we have to live with it considering that how those markets behave? These are my three questions on the volume.

K Natarajan — Executive Director and Chief Operating Officer

Yeah, Sanjesh. Natarajan here. Good morning.

Sanjesh Jain — ICICI Securities — Analyst

Hi sir. Good morning.

K Natarajan — Executive Director and Chief Operating Officer

So see with regards to AMET, if you see, in terms of local Egypt volumes, we are seeing things are getting better. So we need to wait for one more quarter to know that it sustains, but that is really a good divesting. Despite the steep 100% inflation, we were able to see things are getting better.

So Turkey — unfortunately, Turkey was also adjusting the inflation almost 70%. But this earthquake has thrown things off guard. But yes, as of now, our only this thing is to see that our customers and their families are safe. We’ll probably have a better idea probably in the next 15 days as to whether we see any impact, because more than the demand I think, it’s how do you reach the suppliers. So, we are assessing that. So it’s a bit too early for us to comment on that.

With regard to the entire AMET volumes. Egypt, as I said, is getting better, okay. And only thing is that what I can surmise is that, with inflationary pressures coming down, both in terms of commodity and food price and we also see with the winter going off, the energy inflation also is going to be much better. So it only augurs well, okay, for the volume growth to happen pretty well. So I think, this I can conclude safely that the worst is behind us as far as the AMET volumes are concerned.

Sanjesh Jain — ICICI Securities — Analyst

That’s fair enough, Natarajan. But just thinking, can FY ’24 be a year where we normalize all the last two years of decline where we can recoup and market is also coming back? What are our customer telling in terms of their market share because I think they have lost a significant market share in the local market?

K Natarajan — Executive Director and Chief Operating Officer

Yeah, correct. So customers are also — they probably also saying that things augur well for them in terms of the prices getting now corrected. They do expect that things should start getting better. So what I’m saying is a reflection of what my customer share with me.

Sanjesh Jain — ICICI Securities — Analyst

Got it. Thanks. And my last question is on the competition. One on the general competition within India where we have seen few surfactant companies like Aarti have been coming back. And Number 2, on the phenoxyethanol, I think Rossari is talking of expanding their footprint in the export market. How do we see competitive intensity coming out of India base?

Unnathan Shekhar — Promoter, Managing Director

So we have been, Sanjesh, as you know, that in the last 40 decades, we have seen and managed a huge amount of competition. So this is nothing new. I don’t see this as anything of great significance. So we know how to compete, and that’s important. And I’ll hope that the market allows everyone to grow. But certainly, we know how to manage competition.

Sanjesh Jain — ICICI Securities — Analyst

So we remain confident of maintaining and improving our market share, right?

Unnathan Shekhar — Promoter, Managing Director

Yes, of course.

Sanjesh Jain — ICICI Securities — Analyst

Okay. Got it. Thank you. Thank you very much, and best of luck for the coming quarters.

Unnathan Shekhar — Promoter, Managing Director

Thank you.

Operator

Thank you. [Operator Instructions] Next question comes from the line of Rohan Gupta from Nuvama. Please go ahead.

Rohan Gupta — Nuvama — Analyst

Yeah. Hi sir. Good afternoon. Thanks for the opportunity. Once again, congratulations on such a strong set of numbers. Sir, the question may be a little bit extension of the previous answer which you gave the previous participant. Shekhar sir, if I heard you rightly, that you said that definitely EBITDA margins per ton this year nine months have been phenomenally high, benefiting from the multiple factors and product mix and also the export benefits. But I think that you are still — though you didn’t give any guidance on margin per ton. But if I heard you right, you said that you’re still looking at absolute EBITDA growth next year. Am I right sir on that front?

Unnathan Shekhar — Promoter, Managing Director

No, the EBITDA per ton certainly, as our cardinal principle says, it would be ahead of the volume growth. That is what our striving will be, okay?

Rohan Gupta — Nuvama — Analyst

So if I extrapolate that, it means that you are still looking EBITDA margins per ton next year will be much above than what you used to give earlier guidance of INR16,000 to INR18,000 per ton. If you are still looking…

Unnathan Shekhar — Promoter, Managing Director

What I would like you to note is that this particular EBITDA per ton is in terms of a certain proportion of performance and specialty, okay? So when the performance and specialty percentages normalize, okay, then we would again see — but in the individual categories, our striving will be to grow the EBITDA per ton at a higher rate with as the [Phonetic] volume growth rate, okay? But the overall growth rate is a mix of both the specialty contributions as well as performance contributions.

Rohan Gupta — Nuvama — Analyst

Sir, fair enough. Come whatever permutation combinations we apply, I mean in terms of the change in the product mix, we understand that this nine months have been tepid in terms of volume growth for specialty. And going forward, probably that the surfactant business will drive the volume growth. That we fairly understand. But still sir, volume growth in the surfactant business and given by sticky nature of our business, it cannot be 30%, 40% in terms of the volume growth. So the volume growth has to be in a certain percentage range of maybe just 8% to 12% kind of both in absolute volume.

Also we will see the price led decline in terms of the — because of the softening raw material prices. So probably, a revenue growth which we may be looking probably for FY ’24 may be as modest as maybe a flat. With that topline growth, what I am just concerned that, if we are not able to protect our EBITDA margins per ton and with the certain weakness, probably we should be seeing a declining EBITDA — absolute EBITDA should be declining in FY ’24. That’s what our numbers suggest.

So, but on the contrary, you will still look at growing EBITDA. So that’s something which I am not able to comprehend.

K Natarajan — Executive Director and Chief Operating Officer

Rohan, I’ll answer this. Natarajan here. So I didn’t know that how — what number — how you have worked it out. But I can tell you in a simple way, how do we look at business. First is, it is clear that the only way to sustainably grow our business is to ensure that you grow your volumes ahead of the market. That’s very clear. In situations and if you see, till the time that the volume global macroeconomic headwinds resulted in negative growth in volumes, we were actually growing our volumes pretty significantly ahead of the market. And even this year, we are, okay?

But whenever we see that the volume growth is not going to be an opportunity — the volume growth is not going to be available, in fact it is going to de-grow, we smartly manage our operations, okay, our product mix and our pricing. And this is what it is. Because the ultimate aim is to deliver profitable growth. Now, when my volumes de-grow, how do I deliver a better EBITDA growth is what we look at.

Now when the volumes — when we do see that there are good signs for us to start growing our volumes, then we need to ensure, okay, that we need to prioritize our entire strategy in terms of getting the volumes back and participate fully in the volume growth. So this will result, because finally EBITDA per metric ton is only resultant of that. But we are very clear that we will continue to grow our EBITDA year on year EBITDA, as well as what the volume growth is only something what the market will allow us. But we would want to ensure that grow our EBITDA year on year. okay, to ensure that we deliver on a profitable growth.

Rohan Gupta — Nuvama — Analyst

Fine enough, sir. So, it should also be implied that whenever the market picks up significantly and there is an opportunity to gain market share in terms of volume growth, you may offer some price discounts to the customers to gain even slightly higher volume growth. Will that be the scenario?

Unnathan Shekhar — Promoter, Managing Director

Yeah, that depends on case to case. And obviously, yes, that typically is what we’ll do. Because if the volumes are going to come back, that’s what even my customers will do, correct? They will start reducing press only when they say that is going to result in volume growth. When they do that — and it’s typically any businessman will operate. And that’s what we would also do.

Rohan Gupta — Nuvama — Analyst

Right sir. Sir, just second question is on our — we have always mentioned that our ROCE profile, generally we look at this 22% plus before looking any projects. But historically we have seen in last three to four years, our margin profile have improved significantly in terms of absolute EBITDA per ton. That used to be roughly 13,000, and now we are almost at 18,000 to 20,000 on a generalized basis, on a normalized basis right now. So definitely it’s very high.

I don’t see that there would have been any significant increase in metric ton or capex cost would have gone up so significantly, except that may be some marginal increase. Should we assume that the ROCE profile of the company in last two to five years have also improved? And now, the projects which we undertake is above 22% on maybe what it was earlier, but now it is roughly 26% to 27%, if you look at the current margin…

Unnathan Shekhar — Promoter, Managing Director

ROCE will continue to be at — the threshold will continue to be at 22%.

K Natarajan — Executive Director and Chief Operating Officer

Yeah, so, Rohan, it’s like this. We are very clear in the way that we divest [Phonetic] our efforts to deliver a weighted average ROCE of 22%. But how we look at individual projects are very different, okay? So our this thing is to deliver 22%. That’s what we work on. Now depending on how — maybe depending on project-wise, product-wise, the thresholds are very different. But we will be delivering. So typically you can have times when the ROCE can be a little bit [Phonetic] lower, but it will always be with the very clear this thing of delivering a weighted average cost of return on capital employed of 22%.

Rohan Gupta — Nuvama — Analyst

Sir, third question if I’m allowed. And if there is a long queue, I can come back in queue then. So in terms of volume growth guidance, I know it’s the volatile market scenario and the decision clear in the global market. But still you see that with the falling raw material prices, I mean inflation is easing now, what kind of volume growth or just simple market growth you can anticipate over next couple of years? Can it be significantly higher than last four to five years average, which we used to guide 6% to 8%. Can it be in a 15% to 18% volume growth range over next couple of years?

K Natarajan — Executive Director and Chief Operating Officer

No, we would be happy if that happens. Certainly, we look forward to that happening. But yes, I don’t think that we would be able to harden any guess on what the volume growth will be with the inflationary correction.

We are very clear that our — this thing value [Phonetic] is 6% to 8%, in line with the way the market grows. And if the market grows by 10%, we need to grow ahead of that. If the market grows little bit 4%, we’ll have to go ahead of that. That’s the way it is. Now how it will — the current price reductions will start resulting in volume, we need to wait and watch, Rohan. I’ll not be able to harden any guess on that.

Rohan Gupta — Nuvama — Analyst

Thanks a lot sir. Thank you very much for answering all the questions.

Operator

Thank you. [Operator Instructions] Next question comes from the line of Rohit Nagraj from Centrum Broking. Please go ahead.

Rohit Nagraj — Centrum Broking — Analyst

Yeah. Good afternoon, sir, and thanks for the opportunity. And again, congrats on good set of numbers. Sir, first question is, last time we had alluded that the inventories at customer end were higher. What is the scenario that we are experiencing now across our operating geographies? Thank you.

Unnathan Shekhar — Promoter, Managing Director

Yes, so we do see that I think the inventory reductions in many of the markets other than in U.S. U.S. typically I think there is still some amount of correction that is expected. That’s what our customers tell us. Otherwise, I think in most of the other geographies, I think there is no inventory corrections to be done furthermore. It’s only in the U.S., as I’ve said, we expect some more to happen because the pipeline inventory is still not got corrected fully. Hello?

Rohit Nagraj — Centrum Broking — Analyst

Yeah, am I audible?

Unnathan Shekhar — Promoter, Managing Director

Yeah. So did you hear my response, Rohit?

Rohit Nagraj — Centrum Broking — Analyst

Sorry. [Technical Issues] There were some disturbance.

Unnathan Shekhar — Promoter, Managing Director

What I said was, we — except for U.S. where we are informed by our customers that there is still some amount of inventory corrections to be done, okay in the trade whereas in all the other geographies, they say things have got — the inventory corrections have been done.

Rohit Nagraj — Centrum Broking — Analyst

Sure. That’s helpful. Sir, second question is again, I mean, apologies for harping on again on the EBITDA per metric ton figure. So you alluded that there was a INR20 crore one-time cutback from the Egypt. Now couple of questions to this. Is this recurring in future as well? That is one part. And second part, in first nine months, what was any other one-time benefit that we have received beyond this INR20 crores because of which the number which is close to about 25,000 [Phonetic] EBITDA per metric ton for nine months is probably inflated. Thank you.

K Natarajan — Executive Director and Chief Operating Officer

So, other than this export incentive that we received, there has been no other significant one-time…

Unnathan Shekhar — Promoter, Managing Director

The quarter was INR20 crores, but in nine months, how much was it?

Abhijit Damle — Chief Financial Officer

Nine months. it would be somewhere around INR23 crores [Phonetic], INR24 crores.

Unnathan Shekhar — Promoter, Managing Director

Okay. Yeah, so I think you heard it.

Rohit Nagraj — Centrum Broking — Analyst

Yes, INR23 crores, INR24 crores in the nine months.

Unnathan Shekhar — Promoter, Managing Director

Yes.

Rohit Nagraj — Centrum Broking — Analyst

Thanks. And will this be occurring in future as well, right whenever we book the volumes?

Unnathan Shekhar — Promoter, Managing Director

That’s the reason because there is uncertainty we accounted on cash basis. Because it’s only when the government releases the money that we can. When they will release is anybody’s guess, okay. So that’s why. We cannot give any statement on what will be next quarter or six months, next six months.

Rohit Nagraj — Centrum Broking — Analyst

Sure, sure. That’s very clear. Thank you so much. I’ll come back in the queue.

Unnathan Shekhar — Promoter, Managing Director

Thank you.

Operator

Thank you. Next question comes from the line of Dhruv Muchhal from HDFC Mutual Fund. Please go ahead.

Dhruv Muchhal — HDFC Mutual Fund — Analyst

Yeah, sir. Thank you so much. So the question is, again coming back to the EBITDA per ton or per kg. You mentioned part of the reason is because of the product mix. Some of these products are — so depending upon the product mix. But sir, if I look at the gap between the performance, the growth in the performance products and the specialty products, the share of performance products has increased in the last say this quarter or the last nine months. So based on your, is it fair to then conclude that the EBITDA per kg that you earn on the performance product is probably higher than the specialty products?

Unnathan Shekhar — Promoter, Managing Director

No.

K Natarajan — Executive Director and Chief Operating Officer

See, what I can tell you is that we even within performance products, okay, there are products and certain segments where we are able to manage better realizations depending on how the market allows us an opportunity, okay. So it’s always the case where the specialty is higher in terms of EBITDA per metric ton, okay? But even within performance, there are times that where we are able to get better pricing. And that’s what we have been able to do over the last nine to 12 months.

Dhruv Muchhal — HDFC Mutual Fund — Analyst

Okay. Sir, because otherwise this does not give a clear picture is because if the share of performance has increased and EBITDA per ton has increased, on an overall basis, it seems your EBITDA per ton on — EBITDA per kg on the performance product is better based on what your commentary that, it is the product mix which is partly driving this EBITDA per kg increase.

K Natarajan — Executive Director and Chief Operating Officer

Product mix within performance, product mix even within specialty. So even within specialty, there are certain products where we have been able to get — they have been positioned well in terms of better realizations. So it’s a combination of all this.

Dhruv Muchhal — HDFC Mutual Fund — Analyst

Okay. And is there also — if I look at your MNC share has increased, your 51% it was last year YTD. It is now 56%. Some of the other regional and local levels have declined. While we are used to think the MNCs have a better marketing power, so probably the EBITDA per kg will be lower there. But that seems not to be the case.

K Natarajan — Executive Director and Chief Operating Officer

I don’t think you can draw any such correlation, okay. But one thing is that it is important that what this probably you should conclude from this is that, the sort of strength of the relations that we have. And obviously, in this market situation, you would see that only the big players have been able to take out the inflation and are able to grow. So that actually is a demonstration of the sort of the business model that we have, the sound business model that we have.

Dhruv Muchhal — HDFC Mutual Fund — Analyst

Sure, sir. Got it. Thank you so much. Thanks. All the best.

Operator

Thank you. Next question comes from the line of Srikrishna Sonti from JM Financials. Please go ahead.

Srikrishna Sonti — JM Financials — Analyst

Good afternoon, sir.

Unnathan Shekhar — Promoter, Managing Director

Good afternoon. Please go ahead.

Operator

The line of Srikrishna has been disconnected. We’ll go for the next participant. And that is Mr. CA Garvit Goyal from MS Research[Phonetic]. Please go ahead.

CA Garvit Goyal — MS Research — Analyst

Hello.

Unnathan Shekhar — Promoter, Managing Director

Yeah.

CA Garvit Goyal — MS Research — Analyst

Good afternoon, sir. Am I audible?

Unnathan Shekhar — Promoter, Managing Director

Can you be a bit louder please?

CA Garvit Goyal — MS Research — Analyst

Yes, sure. Now is it okay?

Unnathan Shekhar — Promoter, Managing Director

Yeah.

CA Garvit Goyal — MS Research — Analyst

Okay. Yes sir. Sir, most of my questions have been answered. Just one thing, whether your nine-month EBITDA per metric ton is sustainable in FY ’24. You’ve mentioned it is around INR23 crores because of export incentive. So if we exclude that impact, then also it is around INR23,700 per ton. So can we achieve this INR23,700 number in FY ’24 sir?

K Natarajan — Executive Director and Chief Operating Officer

No, that’s what we said. This EBITDA per metric ton is only final result of the way that we conduct our business. So that’s what I explained. Now, whenever we — the first priority — business priority is to ensure that we grow our volumes ahead of the market. If the market doesn’t allow you to grow your volumes because of the macroeconomic headwinds, then we need to see how we manage the profitably. Because finally, the objective is to deliver profitable growth.

But delivering volume growth is priority. So if the market now starts offering me opportunity to enhance volumes after once the prices start correcting and the consumer demand starts coming back, we will then start prioritizing growing our volumes. And then the EBITDA per metric ton will be different. So how it will pan out we are not able to say. That’s specifically why I cannot able to give you a guidance on EBITDA per metric ton. But what we said — what Shekhar said very clearly in his address is that we will grow our volumes ahead of the market. And we will also grow our EBITDA ahead of our volume growth and our PAT ahead of the EBITDA growth. So that tells us as to how we are structuring the way that we do our business.

CA Garvit Goyal — MS Research — Analyst

Okay. That’s all from my side.

Unnathan Shekhar — Promoter, Managing Director

Thank you.

Operator

Thank you. The next question comes from the line of Bobby Jayaraman from Falcon. Please go ahead.

Bobby Jayaraman — Falcon — Analyst

Yes. Compared with last quarter, your volumes barely grew. Then how did you achieve growth on realization? The overall revenues had a big [Phonetic] growth.

Unnathan Shekhar — Promoter, Managing Director

Can you repeat your question? I couldn’t hear probably. Can you please repeat your question?

Bobby Jayaraman — Falcon — Analyst

Yeah, the year-on-year volume growth for this quarter was flat. So how did you achieve your revenue growth, given a falling RM environment?

Unnathan Shekhar — Promoter, Managing Director

See the revenue growth is — it has a correspondence to the raw material prices.

K Natarajan — Executive Director and Chief Operating Officer

Yes, our raw material prices starts correcting. But then we also know that there’ll be it always corrects with a lag of three to five months, okay? So there’ll still be some pricing that would have been done based on the raw material price that was three to five months back. So, you would not see a immediate correlation between raw material price coming down and the revenue growth getting impacted. So you will see that Jan, Feb, March revenue growth will be much lower than the previous quarter, this quarter because the corrected price will start reflecting in Jan, Feb, March.

Bobby Jayaraman — Falcon — Analyst

Okay, got it. But how would that impact your EBITDA?

K Natarajan — Executive Director and Chief Operating Officer

Impact our?

Unnathan Shekhar — Promoter, Managing Director

Yeah, we did mention that we had certain sourcing gains because of the reversal of raw material prices, okay? That also added to our EBITDA per metric ton.

Bobby Jayaraman — Falcon — Analyst

So, the next quarter likely when the revenue normalizes, reflecting the lower RM environment, your EBITDA would come down too, correct? That’s what you’re saying.

K Natarajan — Executive Director and Chief Operating Officer

So what we’re saying is that, there are opportunities out in the market to manage your positions in a way that you are able to get better realizations, that’s what we will do. Now, as I said, in the next quarter, okay, more important is to prioritize our volume growth. So whether the two things, one is in terms of whether we will be able to get the volume growth with keeping price reductions and whether my raw material scenario will allow me to be able to get certain efficiencies. Now this is something that we’ll be able to say only after the quarter ends because day to day we are doing business to ensure that we are able to get our volume growth and manage our RM positions in a way that we are able to get better realization. So that’s the way I’d like to put it.

Bobby Jayaraman — Falcon — Analyst

Okay, sir. Looks like there are too many moving pieces here, right, actually.

K Natarajan — Executive Director and Chief Operating Officer

There are. You got it right.

Unnathan Shekhar — Promoter, Managing Director

You got it right.

Bobby Jayaraman — Falcon — Analyst

Okay. My next question is — I remember in the — some of the earlier con calls, you had mentioned that during the COVID days that you’re seeing a lot of business in the e-commerce players, the new e-commerce players that have been — that started selling consumer goods. Is that still on or was that just a…

Unnathan Shekhar — Promoter, Managing Director

That trend continues. I think a number of e-commerce players have strengthened themselves, grown pretty well. There have also been cases where some e-commerce players have fallen base as we said, okay? So the good guys are getting better and better and growing.

Bobby Jayaraman — Falcon — Analyst

Okay. So they would also be a driver for your volume growth, right, which then exist before the COVID, correct?

Unnathan Shekhar — Promoter, Managing Director

Yeah, they do offer opportunities for volume growth. But as you know, the e-commerce segment is a very, very small portion of the overall size of the market.

Bobby Jayaraman — Falcon — Analyst

Okay. Got it.

Unnathan Shekhar — Promoter, Managing Director

All right. Thank you very much.

K Natarajan — Executive Director and Chief Operating Officer

Thank you.

Operator

Thank you. Next question comes from the line of Bhargav Buddhadev from Kotak Funds. Please go ahead.

Bhargav Buddhadev — Kotak Funds — Analyst

Yeah, good afternoon team, and congrats on a good performance. I have couple of questions. One is, what would be the contribution of Turkey in terms of the overall revenue?

Unnathan Shekhar — Promoter, Managing Director

Turkey will be approximately 9% to 10% of our overall.

Bhargav Buddhadev — Kotak Funds — Analyst

Okay. And that you mentioned, you’ll come to know the exact assessment only in the next 10 [Phonetic] to 20 days?

K Natarajan — Executive Director and Chief Operating Officer

Yeah, because Bhargav what’s happening is that right now, we are assessing whether, first is whether any of our shipments have got into trouble. So we have realized that that’s not an issue there. And then the second is, we are now only talking to all our customers and asking about their well-being. Now the impact on business is we’ll probably wait. It’s not the right time to ask them. So we’ll assess that probably in the coming days, okay?

Bhargav Buddhadev — Kotak Funds — Analyst

But do you think there is a significant risk to this business maybe in FY ’24 or too early to…

K Natarajan — Executive Director and Chief Operating Officer

I don’t know if you ask me, I’m not able to comment in terms of whether very clearly that this will not have any impact. But yes, the probability looks lower. We need to wait. We need to…

Unnathan Shekhar — Promoter, Managing Director

There will be some impact, but there will be some impact.

K Natarajan — Executive Director and Chief Operating Officer

Yeah, short term. Because more in terms of the demand sentiment getting impacted there. So which we’ll see. But we don’t see it to be prolonged once they start adjusting to the new normal.

Bhargav Buddhadev — Kotak Funds — Analyst

Yeah, sure. And my second question is, out of our 1,800 odd customers, how many of them would still be under ladder one. And obviously, your endeavor would be to graduate them to ladder two, ladder three etc., etc.

K Natarajan — Executive Director and Chief Operating Officer

You’re right. See, obviously, the top most step in the ladders takes anywhere between 25 to 30 years, okay? So this climbing is gradual, deliberate and compounded and cumulative. So a majority of our customers in this 1,800 will all be in the first above the ladder, okay? So, as we have always mention, the number of customers in the top most step of the ladder, you can count on fingers.

Bhargav Buddhadev — Kotak Funds — Analyst

All right. So would it be fair to say that 80 odd percent would be ladder one or maybe more?

K Natarajan — Executive Director and Chief Operating Officer

Even more.

Bhargav Buddhadev — Kotak Funds — Analyst

Even more. Okay.

K Natarajan — Executive Director and Chief Operating Officer

Yeah, but it’s important that we get them in ladder one and keep them there and then move them to the subsidy process. So that’s also an important job for us to do, which we are doing pretty well.

Bhargav Buddhadev — Kotak Funds — Analyst

And as they move up the ladder, obviously the effort increases disproportionately in terms of engagement, right?

Unnathan Shekhar — Promoter, Managing Director

You’re right. Obviously, also the opportunities increase manifold, okay or the engagement increases, the opportunity also increases. Because you’re able to deal with them a wider package of your products.

Bhargav Buddhadev — Kotak Funds — Analyst

And would it be fair to say that we would have 100% share of them as they move up the ladder or they go to some other supplier?

Unnathan Shekhar — Promoter, Managing Director

No, normally we have seen that all customers in their own risk metrics don’t like to have only one supplier in their procurement. They always have one more supplier to ensure that they fulfill their risk criteria as far as their organization is concerned.

Bhargav Buddhadev — Kotak Funds — Analyst

Understood. Okay sir. Thank you. Thank you for your time and all the best.

K Natarajan — Executive Director and Chief Operating Officer

Thank you so much.

Operator

Thank you. Next question comes from the line of Anubhav Sahoo from [Indecipherable]. Please go ahead.

K Natarajan — Executive Director and Chief Operating Officer

Yeah, Anubhav.

Unidentified Participant — — Analyst

Yeah, thanks a lot for the opportunity. Yeah, couple of questions. So, one is on your comment on the benefit arising out of sourcing gains due to reversal in plummeted prices. So when you mentioned that, do you mean to say that you could get some better deals in getting some of the input prices. If otherwise in the normal course of operation we don’t do. Is that the case?

K Natarajan — Executive Director and Chief Operating Officer

No. It’s the question of…

Bhargav Buddhadev — Kotak Funds — Analyst

It’s a combination of many things, okay. It also is the way we manage our procurement, which we have said is an area which we are very, very particular about and careful about, given that the raw materials are highly subject to ups and downs.

Unidentified Participant — — Analyst

Right. Okay. And is there a way you can quantify this benefit, which happened this quarter, which otherwise is not a normal course of operation?

K Natarajan — Executive Director and Chief Operating Officer

No, that we will not be able to comment upon.

Unidentified Participant — — Analyst

Okay. Thanks. And sir, you did mention about the channel inventory. And I think the inventory at the customer at the U.S. operation probably is on higher side. I had a question regarding our position on our own inventory. I mean, it looks like as for the result for Q3 is concerned, we probably were not impacted much on high cost inventory. How do you see this thing? Are we part of that challenge because they had been a quite a good climb down of fatty alcohol prices and all. So, how we are positioned as far as the high cost inventory is concerned?

K Natarajan — Executive Director and Chief Operating Officer

We ensure that we are always flowing in line with the market. So it will start reflecting — the buying prices will start reflecting in the lower prices as the months move on. But as I did answer a question earlier, that the prices will not start to be immediately down. Alcohol prices started correcting say, four months back. It again went up, it again has come down. So it’s a combination.

So you will see a relational trend in terms of my raw material inventory prices coming down. Very clearly. Yeah. We will see my prior — Jan, Feb, March will be lower than what it was October, November, December, logically because the corrections majorly started in June, July. Came down, again went up. It’s come down again. So we’ll see that. Yeah.

Unidentified Participant — — Analyst

Okay. Quite clear. Thanks a lot for this.

Operator

Thank you. Next question comes from the line of Malay Sameer from Breakthroughs in Stock Market. Please go ahead.

Malay Sameer — Breakthroughs in Stock Market — Analyst

Sir, you have been sharing with us that the EBITDA margin will lead the volume growth. We can say the EBITDA in absolute term will grow much more than the volumes? And on the other side, you were sharing with us, that you will sacrifice the pricing for the volume growth. So aren’t these two statements contradictory?

Unnathan Shekhar — Promoter, Managing Director

We didn’t say any of those things.

K Natarajan — Executive Director and Chief Operating Officer

I’ll tell you what we said was volume growth is the priority. And then, if the market affords us — tells us clearly that there is a volume possible with a judicious pricing approach, we’ll do that. That is what is important. If the market tells us that there is no possibility of a volume growth, then it’s our job to ensure that we get the right pricing. So that’s what we have to manage. But finally, we said that we need to grow our volumes ahead of the market, grow our EBITDA ahead of the volume growth and the PAT ahead of the EBITDA growth. That’s what we said.

Malay Sameer — Breakthroughs in Stock Market — Analyst

So if you were to take a scenario where the volume does not grow hypothetically in FY ’24, right? Then your EBITDA in FY ’24 will be lower than FY ’23 because volume is the priority on the pricing.

K Natarajan — Executive Director and Chief Operating Officer

So I did tell you that finally the EBITDA per metric ton is a derivative of how the macro-economic situation is and how we ensure that we are able to grow our volumes. What we are clearly telling you is, we do not know what the situation in terms of demand is going to be six to nine months from now. If it is going to grow by 10%, we better ensure that we grow at 10% minimum, correct? If that requires us to do judicious price corrections, we need to do that.

Malay Sameer — Breakthroughs in Stock Market — Analyst

So if there are challenges on the volume growth and if we do not get the benefit of export from Egypt like we’ve got this time and if volume is the leading focus for us, our EBITDA in FY ’24 could be substantially lower than what it is in this quarter.

K Natarajan — Executive Director and Chief Operating Officer

Not necessary.

Unnathan Shekhar — Promoter, Managing Director

You very well know how EBITDA gets arrived at, right? Revenue minus cost, right. Minus various costs.

K Natarajan — Executive Director and Chief Operating Officer

So how do we manage your cost judiciously? How do you manage your RM position judiciously? How do you manage your pricing appropriately? Sum total of all that is the EBITDA per metric ton. So various levers available. Correct. So we need to use the appropriate levers to be able to deliver profitable growth.

Malay Sameer — Breakthroughs in Stock Market — Analyst

Okay. Thank you so much.

K Natarajan — Executive Director and Chief Operating Officer

Thank you.

Unnathan Shekhar — Promoter, Managing Director

Thank you.

Operator

Thank you. Next question comes from the line of Divyata Dalal from Trident Capital Investment. Please go ahead.

Divyata Dalal — Trident Capital Investment — Analyst

Hi. Good afternoon, sir. Thank you for taking my question. I wanted to understand a little bit more on the statement that you made that in terms of performance perspective. We are able to manage better realization because of the product mix. So one, I would like to understand which are the geographies where we are able to get a better product mix. And second, are these trends sustainable?

K Natarajan — Executive Director and Chief Operating Officer

First question we cannot answer with geographies. That’s very clear. okay? Second question, we want the environment to enable us to sustain that, okay. But as I said earlier, okay, we’re not going to be — if it requires that we need to price it appropriately to gain volumes if the market allows us an opportunity, we will do that. So that will be the answer, but we can’t make any such specific statement on that right now.

Divyata Dalal — Trident Capital Investment — Analyst

Okay. No, my question was more pertaining to see since we’ve seen that the Indian market is also growing well. So are you seeing a structural change where you know in the product mix where the mass are lower realization products are lesser as compared to people moving towards premium products, like…

Unnathan Shekhar — Promoter, Managing Director

Kindly note that, the policies that we talk about is always what has happened. We are only telling you what has happened. But our effort is always to grow in all categories and in all segments, okay. Now what has happened is that in the last year because of the highly inflationary pressures okay, the market chooses to — certain product categories before we start on other product categories. This can of course change once normalization happens, once normal edition happens, okay? And our job is to respond to this market and respond to these opportunities.

Divyata Dalal — Trident Capital Investment — Analyst

Okay. So you mean to say that this is not a normal situation and probably once normalization happens, we will see…

Unnathan Shekhar — Promoter, Managing Director

Yeah. Kindly note that we don’t design our business on the basis of EBITDA per metric ton.

Divyata Dalal — Trident Capital Investment — Analyst

Right.

Unnathan Shekhar — Promoter, Managing Director

To repeat, EBITDA per metric ton is always a derivative.

Divyata Dalal — Trident Capital Investment — Analyst

Derivative. No, I completely understand that. My question was just to understand the trends in the market, whether in performance surfactants, whether the demand is that, that it is moving towards more premiumization product as compared to mass product. I just wanted to understand the trend in the market.

K Natarajan — Executive Director and Chief Operating Officer

Nothing such trend is visible.

Unnathan Shekhar — Promoter, Managing Director

See, what is important to understand is that all markets are a combination of Mass, Mass-tige and Prestige. What you mean by premium, okay? Now, particularly in the last year, there was a significant impact with respect to the Prestige products, which in a way reflected in the decline of specialty products as far as last year is concerned, okay?

Now again, as far as these markets which have had a impact because of inflation in terms of the volume, our customers very obviously re-check their particular portfolio to ensure that they respond to the ultimate consumers’ requirement and demand and need, okay? They accordingly calibrate their own offerings.

To give one example, you would have seen some of our multi-national customers saying that customers in the last year preferred a lot of smaller packs. They prefer to buy a lot of smaller packs, because of the inflationary situation. In which case, the entire mix of offerings that they offer differs from previous. However, they may play a different tune when the situation comes back to normal, okay? So these are sort of changes which happened in the market. And our job is to fundamentally respond to these changes with agility and ensuring that we are able to meet our service requirements of our customers, very, very promptly and properly.

Divyata Dalal — Trident Capital Investment — Analyst

Got it sir. Got it. All right. And one bookkeeping question on the capex. What is the capex that we have planned for FY ’24 and what capex have we done till nine months FY ’23?

Unnathan Shekhar — Promoter, Managing Director

As we said, we have always indicated that our capex per year approximately will be INR150 crores. And it would be there even for the next maybe two to three years also.

Unidentified Speaker —

Excuse me, we have already crossed about INR120 crores in this nine months.

Unnathan Shekhar — Promoter, Managing Director

Yeah, they have already crossed INR120 crores in the nine months.

Divyata Dalal — Trident Capital Investment — Analyst

Okay, fine. All right. That’s it from my side. Thank you and all the best sir.

K Natarajan — Executive Director and Chief Operating Officer

Yeah.

Unnathan Shekhar — Promoter, Managing Director

Thank you.

Operator

Thank you. The next question comes from the line of Dinesh Pathak from Atos Asset Management. Please go ahead.

Dinesh Pathak — Atos Asset Management — Analyst

Sorry, this is Dinesh Pathak from [Indecipherable] Asset Management. Sir, what is your market share in the covered categories and the geographies? Maybe you can take one by one like India…

Unnathan Shekhar — Promoter, Managing Director

We would not be talking about these numbers. We don’t talk about these numbers.

Dinesh Pathak — Atos Asset Management — Analyst

No, so, what I wanted to understand is that, you said that we will grow volume ahead of the market. But market like from my understanding, there would be various markets where you’re not present in right. Are you like nurturing new markets? Can you talk a little bit about that?

Unnathan Shekhar — Promoter, Managing Director

No, in the various — see we are already present in about 76 to 80 countries. What we are saying is that in terms of the products that we operate in those particular countries or geographies and with respect to those particular products, we grow ahead of the market.

Dinesh Pathak — Atos Asset Management — Analyst

Okay. When you said Turkey is 10% of the revenue, this is total revenue or just AMET revenue?

K Natarajan — Executive Director and Chief Operating Officer

Total.

Unnathan Shekhar — Promoter, Managing Director

Total revenue.

Dinesh Pathak — Atos Asset Management — Analyst

Total revenue. Okay, Sir, this lauryl alcohol would be what percentage of your raw material buying?

K Natarajan — Executive Director and Chief Operating Officer

It’s about 60% of our raw material buy.

Dinesh Pathak — Atos Asset Management — Analyst

Okay. This is important only for performance. And specialty, there is not much lauryl alcohol, right?

Unnathan Shekhar — Promoter, Managing Director

Yeah, there will be not much of lauryl alcohol in specialty products.

K Natarajan — Executive Director and Chief Operating Officer

Yeah.

Dinesh Pathak — Atos Asset Management — Analyst

Okay. How much of the like tonnage is exported from India where you — and how do you account for the slate [Phonetic], you book it both in revenue as well as in other expenses rate?

Unnathan Shekhar — Promoter, Managing Director

I didn’t — we didn’t understand. What is the question?

Dinesh Pathak — Atos Asset Management — Analyst

So how much of the tonnage that you sell every year is exported from India, and also, let’s say, exported from the plant that you have in Egypt?

Unnathan Shekhar — Promoter, Managing Director

The international customer — international sales constitute approximately two-thirds of our total sales, okay? So as far as India is concerned 50/50 approximately. Approximately 50/50.

Dinesh Pathak — Atos Asset Management — Analyst

So what you produce in India? 50% [Phonetic] you consume in India, selling again, 50% you sell in abroad right, like that?

Unnathan Shekhar — Promoter, Managing Director

Yeah.

Dinesh Pathak — Atos Asset Management — Analyst

Okay, for the 50% that you sell abroad export, you — like raw material I have an understanding of your pass throughs with some of the clients. For freight if you can explain this 50% of which is exported from India, how is freight accounted for and is it pass through? What is the exposure to freights volatility?

K Natarajan — Executive Director and Chief Operating Officer

It is not as simple as that. Because finally, freight was still — last year, the way it went up was a very small component of the overall pricing. So typically, freight moves with — there are some places where we do a three-month freight contracts for customers. We have some place where we do a six-month contracts. It’s not one-size fits-all sort of a situation. So the objective is to ensure that we take the right service, deliver volumes, customer schedules very well on time, and then ensure that we buy at the right price the freight. But that’s how it is worked out. So there is nothing where we try to manage our freight positions in a very different way.

Dinesh Pathak — Atos Asset Management — Analyst

Okay. And what would be our capacity utilization, sir?

Unnathan Shekhar — Promoter, Managing Director

Approximately 67% [Phonetic].

Dinesh Pathak — Atos Asset Management — Analyst

67%. It can go up to maximum of what?

Unnathan Shekhar — Promoter, Managing Director

We normally when it goes — when it almost nears 80% to 85%, we start thinking about increasing the capacity further.

Dinesh Pathak — Atos Asset Management — Analyst

So the capex that you’re doing INR150 crores a year, this is just maintenance capex? There is no growth…

Unnathan Shekhar — Promoter, Managing Director

It’s a combination of maintenance as well as growth.

Dinesh Pathak — Atos Asset Management — Analyst

Okay. How much capacity are you adding, if you can just like talk about that as well?

K Natarajan — Executive Director and Chief Operating Officer

We have given that the combination of what we do in both performance and specialty. So we typically would not be able to comment on that.

Dinesh Pathak — Atos Asset Management — Analyst

Okay. Thank you, sir.

K Natarajan — Executive Director and Chief Operating Officer

Thank you so much.

Unnathan Shekhar — Promoter, Managing Director

Thank you.

Operator

Thank you. Due to time constraints, we have reached the end of question-and-answer session. I would now like to hand the conference over to the management for closing comments.

Unnathan Shekhar — Promoter, Managing Director

Thank you. Thank you very much. Thank you, ladies and gentlemen. Thank you for your presence. Have a good day, and see you in the next quarter.

K Natarajan — Executive Director and Chief Operating Officer

Thank you all.

Operator

[Operator Closing Remarks]