Q1 2027 Zydus Wellness Ltd Earnings Call
Speaker #1: Ladies and gentlemen, good day and welcome to the Zydus Wellness Limited Q1 FY27 earnings conference call. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.
Operator 2: Ladies and gentlemen, good day. Welcome to the Zydus Wellness Limited Q1 FY27 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Aniket Kamble. Thank you, over to you, sir.
Speaker #1: Should you need assistance during this conference call, please signal an operator by pressing star, then zero, on your touch-tone phone. Please note that this conference is being recorded.
Speaker #1: I now hand the conference over to Mr. Aniket Kamble. Thank you, and over to you, sir.
Speaker #2: Hi. It's an absolute pleasure from ICICI Securities to host the Q1 FY27 earnings call for Zydus Wellness. From the management, we have Mr. Ganesh Nayak.
Aniket Kamble: Hi. It's an absolute pleasure from ICICI Securities to host the Q1 FY27 Earnings Call for Zydus Wellness. From the management, we have Mr. Ganesh Nayak, Non-Executive Director, Mr. Tarun Arora, CEO, and Mr. Umesh Parikh, CFO. I now hand over the call to management for further remarks. Thank you, over to you, sir.
Speaker #2: Non-Executive Director, Mr. Tarun Arora, CEO, and Mr. Umesh Parik, CFO. I now hand over the call to the management for further remarks. Thank you, and over to you, sir.
Speaker #3: Thank you. Good evening and welcome to the post-results teleconference of Zydus Wellness Limited for Q1, financial year 2026–27. I have with me Mr. Ganesh Nayak, Director, and Mr. Umesh Parik, CFO, on the call from our side.
Tarun Arora: Thank you. Good evening. Welcome to the post-results teleconference of Zydus Wellness Limited for Q1 FY2027. I have with me Mr. Ganesh Nayak, Director, and Mr. Umesh Parikh, CFO, on the call from our side. During the quarter, consumer demand remained resilient, with spending increasingly shifting towards higher-value products. The premiumization trend continued to strengthen as consumers traded up in categories such as personal care, beauty, and packaged foods, supporting value-led growth. Quick commerce and e-commerce remained the primary growth engine, sustaining strong double-digit growth and continuing to gain share across categories. However, seasonal demand was impacted by frequent summer showers across eastern region and parts of North India in otherwise highly salient geographies, which disrupted the usual summer consumption pattern and softened demand for weather-sensitive brands, particularly Nycil. On the cost front, input trends remained largely manageable despite divergent movements in commodity prices and currency.
Speaker #3: During the quarter, consumer demand remained resilient, with spending increasingly shifting towards higher-value products. The premiumization trend continued to strengthen as consumers traded up in categories such as personal care, beauty, and packaged foods.
Speaker #3: Supporting value-led growth. Quick commerce and e-commerce remained the primary growth engines, sustaining strong double-digit growth and continuing to gain share across categories. However, seasonal demand was impacted by frequent summer showers across the eastern region and parts of North India, in otherwise highly salient geographies.
Speaker #3: This disrupted the usual summer consumption pattern and softened demand for weather-sensitive brands, particularly Nysa. On the cost front, input trends remained largely manageable despite divergent movements in commodity prices and currency.
Speaker #3: Companies effectively navigated these pressures through disciplined pricing strategy, an improved product mix, and a continued focus on premium offerings. While ongoing geopolitical disruptions continued to create uncertainty, their impact on the company has remained limited due to proactive mitigation measures.
Tarun Arora: Company effectively navigated these pressures through disciplined pricing strategy, an improved product mix, and a continued focus on premium offerings. While ongoing geopolitical disruptions continue to create uncertainty, their impact on the company has remained limited through proactive mitigation measures. Innovation continues to be a key driver of our portfolio growth. During the quarter, we continued to leverage our strong R&D capabilities to expand into new demand spaces, address evolving consumer preferences, and strengthen the relevance of our categories through a steady pipeline of differentiated offerings. We strengthened our portfolio with targeted innovations, namely Complan Power Play Milkshake, which extends the Complan franchise into ready-to-drink nutrition beverage segment for active kids, combining great taste with essential nutrition, and is available in vanilla and chocolate flavors with no added sugar and no preservatives.
Speaker #3: Innovation continues to be a key driver of our portfolio growth. During the quarter, we continued to leverage our strong R&D capabilities to expand into new demand spaces, address evolving consumer preferences, and strengthen the relevance of our categories through a steady pipeline of differentiated offerings.
Speaker #3: We strengthened our portfolio with targeted innovations, namely Complan Power Play milkshake, which extends the Complan franchise into the ready-to-drink nutrition beverage segment for active kids.
Speaker #3: Combining great taste with essential nutrition, and available in vanilla and chocolate flavors with no added sugar and no preservatives. WeMax Diabetes Care is a scientifically formulated nutrition solution designed to support diabetes management through a low glycemic index and a high protein, high fiber formulation that helps manage blood sugar, promote satiety, support strength, and enhance gut wellness.
Tarun Arora: V Max Diabetes Care, a scientifically formulated nutrition solution designed to support diabetes management through a low glycemic index and a high protein, high fiber formulation that helps manage blood sugar, promotes satiety, supports strength, and enhances gut wellness. Comfort Click business continued to expand its portfolio through multiple product launches and raising extensions across key categories. These initiatives reflect our continued focus on premium science-led innovation and our commitment to addressing evolving consumer health and wellness needs. On the financial front for Q1 FY27, the company reported consolidated net sales of INR 14,299, reflecting a growth of 66.7% year-on-year. Our international business, including the Comfort Click business, delivered a like-to-like growth of 24.8%, while the domestic business grew by 4.6%.
Speaker #3: In addition, the Comfort Click business continued to expand its portfolio through multiple product launches and range extensions across key categories. Together, these initiatives reflect our continued focus on premium, science-led innovation and our commitment to addressing evolving consumer health and wellness needs.
Speaker #3: On the financial front for Q1, financial year 2027, the company reported consolidated net sales of ₹14,299 million, reflecting a growth of 66.7% year on year.
Speaker #3: Our international business, including the Complan Flex business, delivered like-to-like growth of 24.8%, while the domestic business grew by 4.6%. Within the domestic portfolio, skin and hair care and Food and Nutrition continued their strong momentum, delivering growth of 34.5% and 16%, respectively.
Tarun Arora: Within the domestic portfolio, skin and haircare and food and nutrition continued their strong momentum, delivering growth of 34.5% and 16%, respectively. Seasonal brands, however, declined by 12%, primarily due to softer summer season. Excluding the summer portfolio, all our key brands continued the momentum, and cumulatively delivered strong double-digit growth in line with our expectations. With the business becoming less dependent on the summer season, our diversified portfolio continues to support more balanced growth throughout the year. In Q1 FY27, our organized channel saliency reached an industry-leading 38%, with modern trade contributing 17% and digital commerce about 21%. Gross margin expansion in the core business remained strong during the quarter and was further supported by significantly higher margin of the Comfort Click business. On the EBITDA front, company reported a growth of 55.3% for the quarter, reaching to INR 2,417 million.
Speaker #3: Seasonal brands, however, declined by 12%, primarily due to a softer summer season. Excluding the summer portfolio, all our key brands continued the momentum and cumulatively delivered strong double-digit growth in line with our expectations.
Speaker #3: With the business becoming less dependent on the summer season, our diversified portfolio continues to support more balanced growth throughout the year. In Q1 FY27, our organized channel saliency reached an industry-leading 38%, with modern trade contributing 17% and digital commerce about 21%.
Speaker #3: Gross margin expansion in the core business remained strong during the quarter, and was further supported by the significantly higher margin of the Comfort Click business.
Speaker #3: On the EBITDA front, company reported a growth of 55.3% for the quarter, reaching 2 rupees 2,417 million. Robust improvement in EBITDA percentage of core business, as well as comfort click business, leading to overall EBITDA percentage expansion by approximately 0.4% on a like-to-like basis.
Tarun Arora: Robust improvement in EBITDA percentage of core business as well as Comfort Click business, leading to overall EBITDA percentage expansion by approximately 0.4% on a like-to-like basis. Net profit declined by 7% during the quarter. Net profit excluding amortization of acquired brands registered a growth of 26.5% for the quarter. Comfort Click business continued to be EPS accretive. Brand performance and market share developments are detailed in the investor presentation. Key highlights include Complan surpassed the growth posted in the previous quarter despite category degrowth. Revu delivered strong double-digit growth with the tan removal franchise continuing to outperform internal expectations. Digital-first consumer engagement expanded the brand's user base while sustained momentum improved its ranking in the overall patient-facing category from fifth to fourth rank.
Speaker #3: Net profit declined by 7% during the quarter; however, net profit excluding amortization of acquired brands registered a growth of 26.5% for the quarter. Comfort Click business continued to be EBITDA secretive.
Speaker #3: Brand performance and market share developments are detailed in the investor presentations. Key highlights include that Complan surpassed the growth posted in the previous quarter despite category degrowth.
Speaker #3: Reviewed delivered strong double-digit growth, with the tan removal franchise continuing to outperform internal expectations. Digital-first consumer engagement expanded the brand's user base, while sustained momentum improved its ranking in the overall patient cleansing category from fifth to fourth.
Speaker #3: Rukmini registered double-digit growth in West and South and moderate growth in North, which was offset by weakness in the East, a highly salient market due to frequent showers, resulting in a flattish quarter.
Tarun Arora: Nycil registered a double-digit growth in West and South, and moderate growth in North, were offset by weakness in the East, a highly salient market due to frequent showers resulting in flattish quarter. Nycil's performance was significantly impacted due to unseasonal rainfall in the North and East, key saliency markets, which showed double-digit growth in West and South, along with cautious channel stocking and slower uptake given by higher retailer inventory of the last year. Nutralite delivered strong growth supported by portfolio strength, innovation, AI-assisted consumer engagement, and a high double-digit six-year CAGR. RiteBite Max Protein continued its strong growth trajectory, reinforcing leadership in protein snacking through innovation, expanded distribution, and execution excellence, driving robust value, volume, and margin growth. Quick commerce remained our key growth driver through continued distribution expansion. Cuticolor witnessed strong demand traction internal expectations with positive consumer feedback across organized retail channels.
Speaker #3: Nysa's performance was significantly impacted due to unseasonal rainfall in the North and East, key saliency markets, which saw double-digit growth in the West and South, along with cautious channel stocking and slower offtake driven by higher retailer inventory from last year.
Speaker #3: Utilized, delivered strong growth supported by portfolio strength, innovation, AI, consumer engagement, and a high double-digit six-year CAGR. RiteBite Max Protein continued its strong growth trajectory, reinforcing leadership in protein snacking through innovation, expanded distribution, and execution excellence, driving robust value, volume, and margin growth.
Speaker #3: Quick commerce remained a key growth driver through continued distribution expansion. Cuticular witnessed strong demand traction. Internal expectations were met, with positive consumer feedback across organized retail channels.
Speaker #3: Within the suite of portfolio, Sugar-Free maintained category leadership, delivering double-digit growth in the core portfolio and significantly outperforming category trends. Sugar-Free Delight continued its strong momentum, delivering its high double-digit growth.
Tarun Arora: Within the Sweeten portfolio, Sugar Free maintained category leadership, delivering double-digit growth in the core portfolio and significantly outperforming category trends. Sugar Free D'lite continued its strong momentum, delivering a high double-digit growth. I'm Lite further strengthened its healthier living proposition, delivering higher growth on a year-on-year basis. With the Comfort Click business, we strengthened our internal presence by launching the WeightWorld D2C platform in the US, expanding into the Walmart marketplace, and accelerating Middle East growth through launches of WeightWorld and MaxMedix on noon.ae, alongside establishing a physical UAE base. Our long-term growth strategy remains anchored in building a future-ready premium portfolio through disciplined execution and technology-enabled decision-making. By leveraging technology and analytics across innovation, consumer engagement, brand investments, and execution, we are anticipating evolving consumer needs, strengthening organizational agility, enhancing investment effectiveness, and building a resilient platform for sustainable profitable growth. Thank you.
Speaker #3: Amlite further strengthened its healthier life, healthier living proposition, delivering higher double-digit growth on a year-on-year basis. With the Comfort Click business, we strengthened our internal presence by launching the Wake World D2C platform in the US, expanding into the Walmart marketplace, and accelerating Middle East growth through the launches of Wake World and Max Medics on Noon UAE.
Speaker #3: Alongside establishing a physical UAE base, our long-term growth strategy remains anchored in building a future-ready, premium portfolio through disciplined execution and technology-enabled decision-making. By leveraging technology and analytics across innovation, consumer engagement, brand investments, and execution, we are anticipating evolving consumer needs, strengthening organizational agility, enhancing investment effectiveness, and building a resilient platform for sustainable, profitable growth.
Speaker #3: Thank you. We will now begin the Q&A session. Over to the coordinator.
Tarun Arora: We will now begin the Q&A session. Over to the coordinator.
Speaker #1: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone phone.
Operator 2: Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone phone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking the question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Hardik Jathelya from Artico Asset Management. Please go ahead.
Speaker #1: If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question.
Speaker #1: Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Hardik Jatelia from Artico Asset Management.
Speaker #1: Please go ahead.
Speaker #2: Hi. I hope I'm audible.
Hardik Jathelya: Hi. I hope I'm audible.
Speaker #1: Yes, yes. You are audible.
Operator 2: Yes, you are audible.
Hardik Jathelya: Yeah. Sure. Thanks for the opportunity. Just, firstly, on the international business, sir, we have broadly reported approximately 25% Y-o-Y like-for-like growth. Just to understand, was this quarter in any way constrained by stock availability or supply chain disruptions?
Speaker #2: Yeah, sure. Sure. Thanks for the opportunity. Just firstly, I'm in international business, sir. We have broadly reported approximately 25% year-over-year, like-for-like growth.
Speaker #2: So, just to understand, was this quarter in any way constrained by stock availability or supply chain disruption?
Speaker #3: No, there will be no specific constraints for us. Twenty-five percent is a good growth. We've been talking about our double-digit growth.
Tarun Arora: No, there were no specific constraints for us. 25% is a good growth. We've been talking about our double-digit growth.
Speaker #2: Yes, and that should be the growth rate, broadly, which we should be working with for the upcoming quarter, and this should be the new sustainable growth rate.
Hardik Jathelya: That should be the growth rate broadly which we should be working with for the upcoming quarter, and this should be the sustainable growth rate?
Speaker #3: We normally don't give a forward-looking; we've just said double-digit, so that's what we will continue.
Tarun Arora: We normally don't give our forward looking. We've just said double digits, so that's what we will maintain.
Speaker #2: Fair. Thanks. I'll get back to you.
Hardik Jathelya: Fair. Thanks, sir. I'll get back with you.
Speaker #1: Thank you. The next question is from the line of Simran Kumari from Namolya Financial Services Limited. Please go ahead.
Operator 2: Thank you. The next question is from the line of Simran Kumari from Nomura Financial Services Limited. Please go ahead.
Simran Kumari: Hello. Good afternoon, sir. Am I audible? Hello?
Speaker #4: Hello, good afternoon, sir. Am I audible? Hello?
Speaker #1: Yes, you are audible. Please ask.
Operator 2: Yes, you are audible. Please ask.
Speaker #4: Yeah, I'm good. I just wanted to get an outlook on the effective taxes across FY27 and FY28.
Simran Kumari: Yeah. Hi, sir. I just wanted to get an outlook on the effective tax rate across FY27 and FY28.
Speaker #3: So as probably you would have noticed that the current effective tax for this quarter Q1 is close to 27%. And that's largely because of the disallowance of some of the items because of thin cap rule in the UK.
Tarun Arora: As you probably would have noticed that the current effective tax for this quarter, Q1, is close to 27%, and that's largely because of the disallowance of some of the items because of thin capitalisation rule in the UK. Otherwise, it would be in the range of 25%. However, having said that, out of 25%, 12% to 15% would be a cash component this financial year. From next year, we probably would be in the 25% tax rate entirely in cash.
Speaker #3: Otherwise, it would be in the range of 25. Having said that, out of 25, 12 to 15 percent would be a cash component this financial year.
Speaker #3: And from next year, we probably would be in the 25% tax rate, entirely in cash.
Speaker #4: Oh, so for FY27, we can get, like, a 25% effective tax rate. Is it?
Simran Kumari: For FY27, we can get like 25% tax rate, effective tax rate. Is it?
Speaker #3: Yeah, that excludes the deferred tax, but the cash component would be lower—maybe half of 25, or a little more than half.
Tarun Arora: Yeah, that controls the effective tax, but the cash component would be lower, maybe half of 25 or little more than half.
Speaker #4: Okay, sir. Thank you. And I have another question. If we see that interest rate during the quarter has been reduced versus quarter-on-quarter...
Simran Kumari: Okay, sir. Thank you. I have another question. If we see that interest rate during the quarter has been reduced quarter-on-quarter. May I know the reason behind reduction of interest rate, please?
Speaker #4: So, may I have a reason behind the rejection of the interest rate?
Speaker #3: Oh, we have actually transitioned from the GBP loan to a euro loan at a much reduced interest rate, and therefore, that gave us a saving.
Tarun Arora: We have actually transitioned from the GBP loan to euro loan at a much-reduced interest rate, and therefore, that gave us a saving in the interest cost. Going forward, I think, it should hover around this subject to the benchmark rate which is declared in euro.
Speaker #3: In the interest cost and going forward, I think it should hover around this, subject to the benchmark rate, which is declared in euro.
Speaker #4: So for the upcoming quarter, will the effective finance cost—100—be the same as the one that we saw in...?
Simran Kumari: For the upcoming quarter, is it the effective finance cost going to be the same like the one that you've shown in?
Speaker #3: Yeah. Yeah. Unless there is a too much of variability in the base rate, in euro currency, otherwise it will be if it remains the same or around the same, the effective interest would be around the same amount.
Tarun Arora: Yeah. Unless there is too much variability in the base rate in euro currency. If it remains the same or around the same, the effective interest will be around the same amount.
Speaker #4: Okay, sir. May I ask one last question?
Simran Kumari: Okay. Can I squeeze in one last question?
Speaker #3: Sure.
Tarun Arora: Sure.
Simran Kumari: Can you just provide an outlook on Nycil revenue for this quarter, as well as for the year FY27?
Speaker #4: Can you just provide an outlook on national revenue for this quarter, as well as for the year FY27?
Speaker #3: So Nigel has had a difficult last quarter, largely because there was—
Tarun Arora: Nycil has had a difficult last quarter, largely because.
Speaker #4: National quality interest, but I'm asking about national, not international.
Simran Kumari: Sorry to interrupt, but I'm asking about Max, not Nycil.
Speaker #3: Yeah. Okay. Max protein business. That's been going on a very that's been growing at more than double the historical growth rate as we have reported earlier as well.
Tarun Arora: Okay. Max Protein business that's been growing at more than double the historical growth rate, as we have reported earlier as well, and we continue to see a very strong momentum led by three axes. One is brand building, where we are expanding our investments on brand building. You would've probably seen it on FIFA World Cup and various other places. Second is distribution expansion, and third is enhancing our portfolio. We are expecting it to maintain its growth momentum.
Speaker #3: And we continue to see very strong momentum, led by three actions. One is brand building, where we are expanding our investments in brand building.
Speaker #3: You would have probably seen it at the FIFA World Cup and various other places. Second is distribution expansion. And third is enhancing our portfolio. So, we are expecting it to maintain its growth momentum.
Speaker #4: Okay. Thank you, sir. And all that is for the future quarter.
Simran Kumari: Okay. Thank you, sir. All the best for the future quarters.
Speaker #1: Thank you. The next question is from the line of Umansha from Banyan Tree Advisors. Please go ahead.
Operator 2: Thank you. The next question is from the line of Umang Shah from Banyan Tree Advisors. Please go ahead.
Speaker #2: Hi. Am I audible, sir? Hello?
Umang Shah: Hi, am I audible? Hello?
Speaker #3: Yes. Yes, you are audible.
Tarun Arora: Yes, you're audible.
Umang Shah: Hi, sir. Thank you for taking my question. I just had one question with respect to the summer portfolio. Our understanding was that the monsoons this time were quite delayed all across India, and our salience was higher in west and north. In that context, just wanted to understand if you could help us understand the 12% decline in terms of the geographical markets.
Speaker #2: Hi, sir. Thank you for taking my question. I just had one question with respect to the summer portfolio. Our understanding was that the monsoon this time was quite delayed all across India.
Speaker #2: And our savings were higher in Western North. So in that context, I just wanted to understand if you could help us with this 12% decline in terms of the geographical markets.
Speaker #3: Sure. So let me break it down. And I think, if you would have heard, we've had a flattish growth in Mukundi, and the bigger impact is coming on Nysen.
Tarun Arora: Sure. Let me break it down, and I think if you would've heard, we've had a flattish growth in Glucon-D and a bigger impact is coming on Nycil. Now, as far as Glucon-D is concerned, it's largely the impact of east. North and east are the most significant part of our portfolio, the highest salience, where east has actually impacted us, and therefore while north and west and south have seen a positive momentum, but all that gain has been nullified by east, where there were continued rain, especially in April and May. If I look at Nycil, there I think there are two or three. There again, north and east have been the biggest challenges because west and south have seen good growth. North and east are some of the most salient geographies for Nycil as well.
Speaker #3: Now, as far as Glucondi is concerned, it's largely the impact of yeast, which is north and east are the most significant part of our portfolio, the highest salient.
Speaker #3: Where yeast has actually impacted us. And therefore, while north has and west and south have seen a positive momentum, but that all that gain has been nullified by yeast.
Speaker #3: There were continued rains, especially in April and May. And if I look at Nysen, I think there are two or three. There again, north and east have been the biggest challenges because west and south have seen good growth.
Speaker #3: North and East are some of the most salient geographies, for Nycen as well. And then, there is also—compounded by the fact that there has been a subsequent retail stock within the consumer stocks.
Tarun Arora: There, that is also compounded by the fact that there has been a suction retail stocks in the consumer stock. Therefore, the optics have been challenging. Towards the end of the quarter, we've seen. Actually, it was more towards the first half of the quarter. The second half of the quarter, we have seen a good recovery in growth rates for both these brands, not enough to recover the full growth for the quarter. As we speak, we are seeing growth momentum coming back, we should end up on a more positive note for the remaining part of the financial year, hopefully.
Speaker #3: So, therefore, the offtakes have been a little bit—not a little bit, is being challenged. But towards the end of the quarter, actually it was more towards the first half of the quarter, the second half of the quarter we have seen a good recovery in growth rates.
Speaker #3: For both these brands, but not enough to recover the full growth for the quarter. But as we speak, we are seeing growth momentum coming back.
Speaker #3: And we should end on a more positive note for the remaining part of the financial year—hopefully.
Speaker #2: Understood. Understood. And how does the launch pipeline look like this year?
Aniket Kamble: Understood. How does the launch pipeline look like this year?
Speaker #3: So we've had a series of launches. If you look at it, in the last three to four quarters, across the portfolio—whether it's Complan, Sugar-Free, Max Protein, or Glucon-D—we've had, and even a new slide.
Tarun Arora: We've had a series of launches, if you look at in last three to four quarters, across the portfolio, whether it's Complan, Sugar Free, Max Protein, Glucon-D, and even Nutralite. We've had series of launches. We have couple of more launches in the coming quarters, I think our focus is the launches that we've done, the entities we've done, how to scale them up. We are quite excited with the possibilities because some of them have shown very good response from consumers and trade, we hope to build them further. Our long-term pipeline is looking fairly robust for next two to three years.
Speaker #3: We've had a series of launches. We have a couple more launches in the coming quarters. But I think our focus is on the launches that we've done, the entities we've created, and how to scale them up. We are quite excited with the possibilities, because some of them have shown very good response from consumers and trade.
Speaker #3: So we hope to build them further. Our long-term pipeline is looking fairly robust for the next two to three years.
Speaker #2: Understood. Understood. And this last question: This expansion that we are doing in Comfort Look in the US and Middle East, the services and support team continues to be in India, right?
Aniket Kamble: Understood. Just last question. This expansion that you are doing in Comfort Click in US and Middle East, the services and support team continue to be in India, right? You are not expanding those in the new countries that you set up.
Speaker #2: We will not be expanding those in the new countries that we set up.
Speaker #3: Yeah. The support team continues to be in India. Yeah.
Tarun Arora: Yeah. Support team continues to be in India.
Umang Shah: Yeah. All right. Thank you so much.
Speaker #2: All right, all right. Thank you so much.
Speaker #1: Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in this conference, please limit your questions to two per participant.
Operator 2: Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in this conference, please limit your questions to two per participant. The next question is from the line of Mayur Parkeria from Wealth Managers India Private Limited. Please go ahead.
Speaker #1: The next question is from the line of Mayur Parakia from Wealth Managers India Private Limited. Please go ahead.
Speaker #5: Good afternoon to the entire team. I think, given the challenges which you faced for Nysen, it was still a decent quarter that we went through.
Mayur Parkeria: Good afternoon to the entire team, I think given the challenges which you faced for Nycil, I think it was still a decent quarter which we go through. While there is clearly expectation, which was now for investors were higher, there's an industry situation, given that, a great execution. I had two questions on Comfort Click itself. First is, because of the fact of Comfort Click now getting consolidated, we have seasonality not in our favor for Q2 and Q3 as we go ahead. Now we have high fixed cost into our P&L in terms of interest and depreciation cost of close to INR 80, INR 85 crores.
Speaker #5: So, while there is clearly expectation, which now for investors was higher, there is also an industry situation. So given that and great execution, I had two questions on Comfort Click itself.
Speaker #5: First is because Comfort Click is now being consolidated, but we have seasonality not in our favor for the September and December quarters as we go ahead.
Speaker #5: And now we have high fixed cost into our P&L in terms of interest and depreciation cost of close to 80, 85 crores. And I just want to understand that is it possible that we will report positive EBITDA as we go ahead despite this high cost structures for the next in the September and December quarters because of the seasonality products not being there?
Mayur Parkeria: I just want to understand that Is it possible that we will report positive EBITDA as we go ahead despite this high cost structure in Q2 and Q3 because of the seasonality products not being there?
Tarun Arora: That is a very possible. As we have mentioned earlier also that Comfort Click has become EPS accretive from Q4 of the last financial year and continue to do so. If the same momentum continues, which we expect, I think, we'll register increase in the net margin as well as the EBITDA, as well as profit before tax.
Speaker #3: So, as we have mentioned earlier also, Comfort League has become EPS accretive from Q4 of the last financial year and continues to do so.
Speaker #3: And if the same momentum continues, which we expect, I think we will register an increase in the margin—the net margin—as well as the profit before tax.
Speaker #3: EBITDA as well as profit before tax.
Speaker #5: Okay, okay. So that's a great confidence, I think. It will also be positive. And since the rain impacts are behind us, I think, and we are seeing some recovery on the domestic side, this will help us.
Mayur Parkeria: Okay. That's a great confidence. I think it will also be positive. Since the rain impacts are behind us, I think, and we are seeing some recovery in the domestic side, this will help us. Will that be a correct understanding overall?
Speaker #5: Will that be a correct understanding overall?
Speaker #3: Yes. Yes.
Tarun Arora: Yes.
Speaker #5: Okay. The second question is on the Comfort Click. I had was there is a lot of narrative now being because of the GLP-1 adoption, across the globe, the importance of our portfolio in terms of this diabetes management and the various vitamins and the package which is required.
Mayur Parkeria: Okay. The second question is on the Comfort Click I had was, there is a lot of narrative now because of the GLP-1 adoption across the globe, the importance of our portfolio in terms of this diabetes management and the various vitamins and the package which is required from that perspective. I wanted two understanding of that. Is any of our products will require a doctor's prescription or a prescriptive situation or is it consumed on a completely OTC basis by the consumer? How is it abroad, firstly? Secondly, how are you seeing the early signs in the US entry, and can that be a big needle driver for Comfort Click as we go ahead in the next two years?
Speaker #5: From that perspective, I wanted to understanding of that. Is any of our products will require a doctor's prescription or a prescriptive situation or is it consumed on a completely on a OTC basis by the consumers?
Speaker #5: How is it, out broad? Firstly, and secondly, how are you seeing the early signs in the US entry, and can that be a big needle driver for Comfort Click as we go ahead in the next two years?
Speaker #5: Yeah.
Speaker #3: So, you've asked two or three parts to this question. So, first of all, Comfort Click portfolio is a digital-only business, largely. And there is no doctor prescription involved.
Tarun Arora: You've asked two or three parts to this question. First of all, Comfort Click portfolio is digital only business largely, there is no doctor prescription involved. All the products are OTC by nature, therefore, don't need any prescriptions. We do not envisage any change to this structure. Therefore, any demand which arises out of GLP-1 or any other trends will remain from our servicing these requirements, which is perspective. That should take care of the whole thing. Did you have any other part to it?
Speaker #3: Most of—not most. All the products are OTC by nature and therefore don't need any prescriptions. And we do not envisage any change to this structurally.
Speaker #3: And therefore, any demand which arises out of GLP-1 or any other trends, we will remain focused on servicing these requirements. I see the perspective. So that should take care of the whole thing.
Speaker #3: Did you have any other part to it?
Speaker #5: The US part—how do you see early signs of entry, and how, over the next two years, do you think it will be a meaningful driver for Comfort Click as we go ahead?
Mayur Parkeria: The US part, how you see early signs of your entry and over the next two years, do you think it will be a meaningful driver for Comfort Click as we go ahead?
Tarun Arora: Too early to predict, but right now, very small, but growing well. We are positive and we are building on it. Time will tell where it shapes up, but it's a very small portion of our business right now, but growing well, in line with our expectations.
Speaker #3: It's too early to predict, but right now, it is very, very small, though growing well. So we are positive, and we are building on it. Time will tell where it shapes up, but it's a very small portion of our business right now, albeit growing well in line with our expectations.
Mayur Parkeria: Okay. Thank you. I'll come back in the queue for more questions.
Speaker #5: Okay, okay. Thank you. I'll come back in the Q4 with more questions.
Speaker #1: Thank you very much. The next question is from the line of Roniksha from Equitas Securities. Please go ahead.
Operator 2: Thank you very much. The next question is from the line of Ronak Shah from Equirus Securities. Please go ahead.
Speaker #6: Thanks for the opportunity. So my first question is regarding the seasonal portfolio. Now that the major part of those two brands has been called off, can we expect further channel-related disruption in terms of higher inventory in the next cycle or the next season?
Ronak Shah: Thanks for the opportunity. My first question is regarding the seasonal portfolio. Now the major part of it, two brands have been called off, and can we see a further channel-related disruption in terms of higher inventory in the next cycle or the next season?
Speaker #3: Not really, because if you really look at it, I mean, it's very hard to predict. We have visibility on what is the stock in our system and with our distributors.
Tarun Arora: Not really, because if you really look at it, I mean, very hard to predict because we have a visibility on what is the stock in our system and with our distributors. We can't predict beyond a point, but whatever I've seen of it, I think let's look at it. Our own inventory is not more than what it was last year, probably a bit lower. Secondly, the shelf life of the products is three years. Sometimes by season, it can prolong the usage, and consumers typically buy one to one and a half pack in a season. That's the history of this whole thing. I don't see this really rolling over to a next year issue. Already a good sign of a positive growth on a low base already in last couple of months.
Speaker #3: We can't predict beyond a point, but from what I've seen of it, I think—let's look at it—our own inventory is not more than what it was last year, probably a bit lower.
Speaker #3: Secondly, the shelf life of the products is three years. So sometimes, in a bad season, it can prolong the usage, and consumers typically buy one to one and a half packs in a season.
Speaker #3: So that's the history of this whole thing. I don't see this really rolling over to a next year issue. I already see a good sign of positive growth on a low base, already in the last couple of months.
Speaker #3: So, I'm quite positive about how this will shape up over the coming quarters. But, finally, the numbers will have to play out.
Tarun Arora: I'm quite positive about how this will shape up over the coming quarters. Finally, the numbers will have to play out.
Speaker #6: Understood. Secondly, regarding the overall right by next looking portfolio, where we are seeing very strong traction both in terms of top line and profitability, how is the progress we are seeing in terms of offline expansion, especially into the newer T2 and T3 regions, where we are seeing very good early signs of visibility based on our initial checks?
Ronak Shah: Understood. Secondly, from our RiteBite Max Protein portfolio wherein we are seeing very strong traction both in terms of top line and profitability. How the progress we are seeing in terms of the offline expansion, especially into the newer T2, T3 regions wherein we are seeing very good early sign of visibility based on our initial check?
Speaker #3: So, we are seeing very good traction in our distribution. As I mentioned in an earlier question, there are three drivers of growth: brand, portfolio, and distribution.
Tarun Arora: We are seeing very good traction. Our distribution, I mentioned in earlier question, three drivers of growth were brand, portfolio, and distribution. We are going deeper and wider. In offline, specifically, we've committed resources in terms of distribution expansion, and that's really working for us. We will continue, but we are selective about it because these are high-value products, and still it is top towns which contribute to a significant throughput. We'll continue to drive it deeper and wider. Rural is too far, but next two plus of towns, I think we are already seeing a good traction.
Speaker #3: So we are going deeper and wider. And in offline specifically, we have committed resources in terms of distribution expansion, and that's really working for us.
Speaker #3: So we will continue, but we have to be selective about it because these are high-value products, and it is still top-down, which contributes to a significant throughput.
Speaker #3: So we'll continue to drive it deeper and wider. Rural is too far, but the next two-plus tiers of towns— I think we are already seeing good traction there.
Speaker #6: Okay. And so lastly, on the Comfort Click part, when we are seeing very strong double-digit growth over there, based on our understanding, the UK is one of the larger parts, and the balance of the EU market is the larger secondary pie.
Ronak Shah: Okay. Sir, lastly, on the Comfort Click part, when we are seeing very strong double-digit growth over there, based on our understanding, UK is one of the larger part and balance of the EU market is the larger secondary pie. How the growth rates are segregated between these two geographies?
Speaker #6: So, how are the growth rates segregated between these two geographies?
Speaker #3: So, we don't segregate UK and the rest of Europe. I would say Europe has five key markets, namely: UK, France, Italy, Germany, and Spain, which constitute the bulk of our business.
Tarun Arora: We don't segregate UK and rest of Europe. Europe has five key markets, namely UK, France, Italy, Germany, and Spain, which constitute the bulk of our business. I think overall growth rate is captured here. Market by market growth will be a little I would want to avoid sharing those things. We don't go there.
Speaker #3: And I think overall, the growth rate is captured here. Market-by-market growth will be a little... I mean, I would want to avoid sharing those things.
Speaker #3: We don't go there.
Speaker #6: No issues. No issues. That's it from my side. Thank you.
Ronak Shah: No issues. That's it from my side. Thank you.
Speaker #1: Thank you very much. Next question is from the line of Aniket Kamle. Please go ahead.
Operator 2: Thank you very much. Next question is from the line of Aniket Kamble. Please go ahead.
Speaker #7: Yeah. Hi, team. So my question is on Complan. For the past two quarters, we have been reporting good growth in the Complan segment. Despite the category de-growing, what has fundamentally changed in the recent past that is helping us to grow in this category?
Aniket Kamble: Yeah, hi team. My question is on Complan. From past two quarters, we have been reporting good growth in the Complan segment and despite the category degrowing. What has fundamentally changed from the recent past that is helping us to grow in this category? That is question number one.
Speaker #7: That is question number one.
Speaker #3: So, I think our approach has been fairly consistent as far as Complan is concerned. We have looked at breaking down the whole Complan into three or four segments.
Tarun Arora: I think our approach has been fairly consistent as far as Complan is concerned. We have looked at breaking down the whole Complan into three or four segments. First is the core kid segment, which has been most under pressure. Our constant endeavor to offer better superior nutrition, supported by high-quality advertising and investment and distribution expansion has helped us focus and get growth back on this. We've also got celebrity Vaibhav Sooryavanshi, who's been a Complan boy now for couple of quarters. Plus, if I look at it, we are also participating in specialized nutrition spaces with toddler space for Complan NutriGro and adult nutrition through VieMAX and VieMAX variants now, which we launched last quarter. We have actually entered a new space which is new for the brand, which is the RTD, where Complan Power Play coming in.
Speaker #3: First is the fourth kid segment, which has been most under pressure. Our constant endeavor to offer a better, superior equation supported by high-quality advertising, investments, and distribution expansion has helped us focus and get growth back on this.
Speaker #3: We have also got celebrity Weber Surivanshi, who's been a Complan boy now for a couple of quarters. Plus, if I look at it, we are also participating in specialized nutrition spaces, with the toddler space for Complan NutriGo, and in drug nutrition through Vmax and Vmax Diabetes now, which we launched last quarter.
Speaker #3: And we are also, not wanting, we have actually entered a new space, which is new for the brand, which is the RTD, where Complan Parkway is coming in.
Speaker #3: We believe, through multiple formats and propositions, the Complan overall brand is seeing good acceptance from consumers, and the whole brand building initiative, portfolio expansion, and distribution pieces are coming together in the way we had initialized.
Tarun Arora: We believe through multiple formats and propositions, the Complan overall brand is seeing a good acceptance from consumers and the whole brand-building initiative, portfolio expansion, and distribution pieces coming together in the way we had envisaged. We are hopeful that this momentum will continue. There is headwinds thanks to what the category faces, but we've been able to navigate now for two, three quarters. We hope to continue that momentum.
Speaker #3: So, we are hopeful that this momentum will continue. There are headwinds, given what the category faces, but we've been able to navigate them now for two, three quarters.
Speaker #3: We hope to continue that momentum.
Speaker #7: Loud and clear, sir. One more thing on the same part—the growth that we have, the additional growth that we have been reporting—is it coming more from the kids' nutrition portfolio or the adult nutrition portfolio?
Aniket Kamble: Loud and clear, sir. One more thing on the same part. The additional growth that we have been reporting, is it coming more from the kids nutrition portfolio or the adult nutrition portfolio?
Tarun Arora: It's coming across, but kids nutrition is the core of the business, a substantial part of the business. That is certainly contributing to it. That's the driver of it.
Speaker #3: It's coming across, but kids' nutrition is the core of the business—a substantial part of the business. So that is certainly contributing to it.
Speaker #3: That's the driver of it.
Speaker #7: Okay. Thank you, sir. Super interesting.
Aniket Kamble: Okay. Thank you, sir.
Operator 2: Thank you very much. Reminder for all participants, please press star and one to ask a question. Participants who wish to ask any question may press star and one. The next question is from the line of Parth Sodha from Permira Asset Managers. Please go ahead.
Speaker #1: Thank you very much. Reminder for all participants: please press star and one to ask a question. Participants who wish to ask any questions may press star and one.
Speaker #1: The next question is from the line of Parth Sota from Premitra Asset Managers. Please go ahead.
Speaker #8: And then my audible. Hello.
Parth Sodha: Hello.
Speaker #3: Yes.
Tarun Arora: Yes.
Speaker #8: First of all, thank you for the opportunity. My question is around the protein portfolio. Regarding our protein portfolio, how do you see the revenue mix evolving within the protein portfolio over, let's say, the next three years?
Parth Sodha: First of all, thank you for the opportunity. My question is around protein portfolio. Like our protein portfolio, how do you see the revenue mix evolving within protein portfolio over, let's say, next 3 years? Will protein bars remain the largest contributor or do adjacent categories like beverages and snacks have the potential to become meaningful growth drivers?
Speaker #8: Will protein bars remain the largest contributor, or do adjacent categories like beverages and snacks have the potential to become meaningful growth drivers?
Speaker #3: It's very hard to predict which part will grow much bigger. Each one of them has substantially large possibilities. We are driving each one of them with an equal level of conviction.
Tarun Arora: Very hard to predict on which part will grow much bigger. Each one of them has substantially large possibilities. We are driving each one of them with the equal level of conviction. Right now, bars constitute the largest part of our portfolio, but 3 years out, hard to predict today.
Speaker #3: Right now, bars constitute the largest part of the portfolio, but three years out is hard to predict today.
Parth Sodha: Okay. My second question is, Everyuth continues to gain market share in facial cleansing. Beyond the current portfolio, do you see any opportunity to expand into adjacent skincare categories while maintaining profitability?
Speaker #8: Okay, and my second question is: As you continue to gain market share in PHL cleansing, beyond the current portfolio, do you see any opportunity to expand into adjacent skin care categories while maintaining profitability?
Speaker #3: Yes. So, while our core remains in patient cleansing, and within that, there is enough space for the core to grow—basic scrubs, peel-off, face wash—but within that, we have been exploring new propositions like tan removal, anti-pollution, and other things that we have in our pipeline.
Tarun Arora: Yes. While our core remains in facial cleansing, and within that there are enough space for the core to grow, basic scrubs, peel off, and face wash. Within that, we've been exploring around new proposition like tan removal, anti-pollution, and other things that we have in our pipeline. Beyond that, we are certainly exploring, but I think in a smaller way because there is enough resources required to just ride this growth in a profitable way. We'll keep piloting and exploring and expanding in the other spaces too, till they become sizable and meaningful. Today, I think our priority remains on facial cleansing, where we see a big enough room for growth and make this brand a sizable skincare brand. Okay, got it. That's all from my side and happy to join.
Speaker #3: Beyond that, we are certainly exploring, but I think in a smaller way because there are enough resources required to just drive this growth in a profitable way.
Speaker #3: So we keep piloting and exploring and expanding in the other spaces too, till they become sizable and meaningful. But today, I think our priority remains on patient cleansing, where we see a big enough room for growth and making this a sizable skincare brand.
Speaker #8: Okay, got it. And that's all from my side. Have a happy day.
Speaker #1: Thank you. The next question is from the line of Mayur Parkeria, a follow-up question from Wealth Managers India Private Limited. Please go ahead.
Operator 2: Thank you. The next question is from the line of Mayur Parkeria, a follow-up question from Wealth Managers (India) Private Limited. Please go ahead.
Mayur Parkeria: Thank you once again for taking a follow-up. I had a question on the RiteBite side. When we acquired, I think it was around INR 200 or INR 220 odd crores, if I remember. Was that the number when we acquired that business size?
Speaker #6: Thank you once again for taking my follow-up. I had a question on the Right Bite side. When we acquired, I think it was around 200 or 220-odd crores, if I remember correctly.
Speaker #6: Was that the number when we acquired the business size?
Speaker #3: Acquired 24, we had, when we acquired, we had reported—we acquired in quarter three. The acquired 24 reported number was close to about ₹130 crore.
Tarun Arora: When we acquired, we had reported. We acquired in Q3 FY24, reported number was close to about INR 130 odd crores.
Speaker #6: 130 or 120.
Mayur Parkeria: INR 130 crores.
Tarun Arora: It was INR 120. Sorry, INR 120.
Speaker #3: Sorry, 120.
Speaker #6: Sorry, not 120. 120.
Mayur Parkeria: Sorry, not INR 120.
Speaker #3: 120. Closer to 120.
Tarun Arora: Closer to 120.
Speaker #6: 120, yes. So when we look at the market and the various expansions of distribution which you have done, apart from the quick commerce, we also see good visibility now in offline channels.
Mayur Parkeria: 120, yes. When we look at the market and the various expansion of distribution which you have done, apart from the quick commerce, we also see good visibility now in offline channels. I just wanted to understand that while the business continues to grow from the time when we acquired, has the number of SKUs also gone meaningful change? I am not asking only in terms of the grammage change, which we see in the market, but the number of SKUs, is that a big driver of the growth or is it the similar kind, the old portfolio SKUs which are driving and the new? How has been the growth, if you can add some color on it, and what is the strategy behind this product expansion?
Speaker #6: I just wanted to understand that while the business continues to grow from the time when we acquired, has the number of SKUs also gone meaningful change means I'm not asking only in terms of the gramage change which we see in the market, but the number of SKUs is that a big driver of the growth or is it the similar kind the old portfolio SKUs which are driving and the new means how has been the growth if you can add some color on it and what is the strategy behind this product expansion?
Speaker #3: So, the core which we acquired—some of the lead products continue to drive the growth of the core, but we have expanded ourselves into multiple newer spaces, including newer bars, like the wafer bar, which is a millet-based wafer bar.
Tarun Arora: The core which we acquired, some of the lead products continue to drive the growth of the core. We have expanded ourselves into multiple newer spaces and which includes newer protein bars, like wafer bar, which is a milk-based wafer bar. We have also launched Roots, which is a tradition of ghee, jaggery, and dates. These are two sizable platforms in protein bars that we have launched in last four quarters. We have launched Korean Chips, Korean flavored chips. We have launched RTDs, which we did not have a presence in. As we speak, we are also expanding our range on the Max Protein cookies. We do believe that each of the portfolios, while the core will continue to grow, we are expanding and reaching out to new consumers through wider range of products, which help us gain faster acceptance.
Speaker #3: We've also launched Roots, which is a tradition of ghee, jaggery, and dates. These are two sizable platforms in protein bars that we have launched in the last four quarters.
Speaker #3: We have launched chips—Korean chips, Korean-flavored chips. We have launched RTDs, in which we did not have a presence before. And as we speak, we are also expanding our range of Max Protein cookies.
Speaker #3: So, we do believe that each of the portfolios, while the core will continue to grow, we are expanding and reaching out to new consumers through a wider range of products.
Speaker #3: Which helps us gain faster expansion. So not just the original products, but the new expanded portfolio is helping us.
Tarun Arora: Not just the original products, but new expanded portfolios helping us drive this growth.
Speaker #6: Okay, and sir, on EverYuth, I just wanted to understand—is there any plan to expand this in the B2B professional face cleansing market, or will we remain B2C?
Mayur Parkeria: Okay. Sir, on Everyuth, just wanted to understand, is there any plan to expand this in the B2B professional face cleansing market-
Tarun Arora: No.
Mayur Parkeria: We remain-
Tarun Arora: No
Mayur Parkeria: B2C?
Speaker #3: Not right now. We remain focused on B2C as of now.
Tarun Arora: Not right now. We remain focused on B2C as of now.
Speaker #6: Okay, okay. Yeah. Thank you so much. Thank you, and wish you all the best.
Mayur Parkeria: Okay. Thank you so much. Thank you. Wish you all the best.
Speaker #3: Thank you.
Tarun Arora: Thank you.
Speaker #1: Thank you very much. The next question is from the line of Aniket Kamble. Please go ahead.
Operator 2: Thank you very much. The next question is from the line of Aniket Kamble. Please go ahead.
Aniket Kamble: Yeah. Hi, team. A quick follow-up from my side. For this quarter, what will be our A&P spends as a percent of our overall sales?
Speaker #7: Yeah. Hi, team. Quick follow-up from myself. For this quarter, what will be our A industry spends as a percent of our overall sales?
Speaker #3: Sorry, Aniket, could you repeat? What will be our percentage? What will be our...?
Tarun Arora: Sorry, Aniket, could you repeat? What will be our percentage?
Speaker #7: Advertising spends. For our as a percent of our overall sales, so at a overall reported level, our ANP as a percentage of total sales is at 18.2%.
Aniket Kamble: Advertising spends as a % of our overall sales.
Tarun Arora: At our overall reported level, our A&P as a % of total sales is at 18.2% for the quarter.
Speaker #3: For the quarter.
Speaker #6: And that includes.
Aniket Kamble: Okay.
Tarun Arora: That includes Comfort Click, because Comfort Click has a much higher % involved in this.
Speaker #3: That includes Comfort Click because Comfort Click has a much higher percentage involved in this.
Speaker #7: Okay. And the lifestyle—like, has it increased over the past year?
Aniket Kamble: Okay. Like for like, has it increased over the past year?
Speaker #3: Like for like, it is similar to last year on the core business.
Tarun Arora: Like for like, it is similar to last year on the core business.
Speaker #7: Okay. And how are our digital spends?
Aniket Kamble: Okay, sure. How are our digital spends?
Speaker #3: So, digital spend as a percentage of overall investments is only shooting up because consumers are consuming a lot more digital media, and engagements are easier and sharper with digital media. So, the share of spends is completely pivoting towards the digital space.
Tarun Arora: Digital spend as a percentage of overall investments is only shooting up because consumers are consuming a lot more of digital media, and engagements are easier and sharper with digital media. The share of spends is completely pivoting towards the digital space across platforms.
Speaker #3: Across platforms.
Speaker #7: Okay. Thank you.
Aniket Kamble: Okay. Thank you.
Speaker #1: Thank you very much. That was the last question for today. I now hand the conference over to the management for closing remarks. Over to you.
Operator 2: Thank you very much. That was the last question for today. I now hand the conference over to the management for closing remarks. Over to you.
Speaker #3: Thank you, everyone, for joining the call. We'll see you next quarter. Stay healthy and happy. Thank you.
Tarun Arora: Thank you everyone for joining the call. We'll see you next quarter. Stay healthy and happy. Thank you.
Operator 2: On behalf of ICICI Securities, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.
