Hester Biosciences Ltd — Call Transcript 2025

Feb 1, 2025

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1 February 2025

To, To, BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Bandra - Kurla Complex, Mumbai - 400 001 Bandra (E), Mumbai - 400 051 Scrip Code: 524669 Symbol: HESTERBIO

Dear Sir/Madam:

Subject: Transcripts of earnings conference call held on 30 January 2025

Pursuant to Regulations 30 and 46(2)(oa) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find attached the transcript of the earnings conference call held by the management of the Company with investors on Thursday, 30 January 2025 at 2:00 p.m. (IST) to discuss the financial results for the for the quarter and nine months period ended 31 December 2024.

This is for your information and records.

Sincerely, For Hester Biosciences Limited

Vinod Digitally signed by Vinod Mali Date: 2025.02.01 Mali 18:19:36 +05'30'

Vinod Mali Company Secretary & Compliance Officer

Enclosure: As above

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“Hester Biosciences Limited Q3/9M FY25 Earnings Conference Call” 30 January 2025

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MANAGEMENT: ANAGEMENT: : MR. RAJIV GANDHI - CEO & MANAGING DIRECTOR, HESTER BIOSCIENCES LIMITED - MS. PRIYA GANDHI EXECUTIVE DIRECTOR, HESTER BIOSCIENCES LIMITED - MR. DIVYESH MARU CFO, HESTER BIOSCIENCES LIMITED - MODERATOR: MS. NISHA SHETTY ICICI SECURITIES

MANAGEMENT: ANAGEMENT: :

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Moderator:

Ladies and gentlemen, good day and welcome to the Hester Biosciences Q3/9M FY25 Earnings Conference Call hosted by ICICI Securities Ltd.

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 the conference call, please signal an operator by pressing “*” “0”on your touchtone phone. Please note that this conference is being recorded.

I now hand the conference over to Ms. Nisha Shetty from ICICI Securities. Thank you and over to you, Nisha.

Nisha Shetty:

Thank you, Lyba. Good afternoon, everyone. On behalf of ICICI Securities, I welcome you all on Q3 FY25 earnings conference call of Hester Biosciences and I thank the Hester Biosciences management team for giving us this opportunity to host this call.

Today on this call, we have with us Mr. Rajiv Gandhi – CEO and Managing Director; Ms. Priya Gandhi – Executive Director; Mr. Divyesh Maru – CFO.

I will now hand over the call to the Hester management team for the opening remarks. Thank you. Over to you.

Priya Gandhi:

Yes. Hi, good afternoon. Thank you, Ms. Nisha. This is Priya Gandhi – Executive Director, Hester Biosciences.

Just one little correction in your introduction with us, we have our CFO Divyesh Maru with us now on the call. So just that one correction. So thank you everyone for joining today as we present our performance for the third quarter and the first nine months of FY25.

While Q3 presented some challenges, we continue to remain focused on our long-term growth strategy, operational efficiencies and new product instructions. We have maintained a steady momentum in the first 9 months, achieving a year-on-year profitability growth while navigating some market fluctuations and some challenges in Q3. On a consolidated basis, our divisional product sales have increased by 2% for 9 months and profit grew by 85% compared to the previous year. Although Q3 divisional product sales declined by 6%, our profit has increased significantly. This is mainly due to the improved

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operational efficiencies and unrealized foreign exchange gains in our African subsidiary.

Coming on to the division wise performances, speaking of our “Animal Healthcare System”:

In Q3 the Animal Health System experienced a 24% decline in sales while the 9-months continues to show a growth of 4%. There are quite a few external factors which I was pointing off which constituted in the 24% decline of sales that we see in this quarter:

• The first one being the earlier than expected end of monsoon season in some regions did affect the market dynamics in these regions.

• Secondly, lower milk prices in some states where Hester has a strong presence, the lower prices to the farmers has led to this decline because that made the farmers prioritize more on the essential healthcare needs of the animals and that has also led to this decline.

• Third reason being a regulatory ban on Nimesulide which is an active ingredient in one of our products which has a regulatory ban at the last quarter did prompt us to recall that brand from the market. We were prepared for some time for this and in this preparation we already started working on launching a new product, we will be replacing this and the impact of which we will be seeing in the coming quarters.

Despite the Q3 decline, our focus continues to remain on the steady growth of this division. Our PPR and Goat Pox vaccine for the national immunization program also has continued that we had envisioned and planned for the quarter, and we are committed to expanding our offer to the dairy sector.

Coming on to the “Poultry Healthcare” division:

Our poultry division has delivered strong growth with the sales increasing by 12% in Q3 and 20% in 9 months. This is primarily at the core strength which is vaccine. Our vaccine sales has grown by 20% in Q3 and 27% in 9 months which has been one of the big contributors. The main contributing factor is rising awareness of the Newcastle Disease and Marek’s Disease prevention, the two vaccines in which Hector continues to be one of the market leaders introducing and supplying this vaccine. We have also introduced new feed

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supplements and disinfectants and we are expecting this contribute significantly in the coming years.

With global demand for poultry products rising and our continued market penetration efforts were expecting to maintain momentum, we are also working towards launching the vaccine against the Avian Influenza in the coming financial year which will also significantly boost our Poultry Healthcare division.

Coming to the “Petcare” division:

Our Petcare division holds the strong growth trajectory of course with the base being small, but yes, we are continuing the stable growth trajectory achieving 105% growth in Q3 and 38% in 9 months of FY25. This was driven mainly by our strategic focus on our key brands and keeping the seasonality in mind, focusing on the seasonal product demands and also working on expanding the newly launched Pet food range in the Petcare division. It also got launched in Q2 as I had mentioned in the last call.

Veterinarian engagement and market penetration efforts have improved our brand visibility in the world and increased the prescription driven sales which is something that we want to do. While this division is still at a nascent stage, its growth potential remains very strong and we are committed to expanding our presence in the Petcare market.

Coming on to the “Financial Performance”:

Standalone gross margins have remained stable in Q3 FY25 and improved by 4% in 9 months supported by a favorable product mix. EBITDA sees a decline by 18% in Q3 but has grown 8% in 9 months due to better absorption of fixed costs. PAT has declined by 31% in Q3.

Moderator:

Priya Gandhi:

Management:

Moderator:

Ma’am, your voice is breaking.

Should I remove this?

Ma'am, I think it is a line problem. It's nothing to do with our side at all. Is it break intermittently or it is to break right from the beginning?

Yes, sir. You can continue.

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Priya Gandhi: Okay, sorry. Was I clear up until now or is there anything that I need to repeat?

Moderator:

Now you're clear.

Priya Gandhi: Should I repeat my explanation? Moderator: You can continue, ma’am.

Priya Gandhi: Okay. So, I was talking about the “Financial Performance”:

I was saying our PAT has declined by 31% in Q3, but has grown by 3% in nine months, which primarily reflects our overall operational efficiency. On a consolidated basis, our EBITDA grew by 12% in Q3 and 15% in 9 months. While PAT saw significant growth in Q3 9 months, this is mainly due to improved operational efficiency and unrealized foreign exchange gain in our African subsidiary, as I just mentioned earlier.

Talking about the performance of our “International Subsidiaries”:

They continue to play an important role in our overall performance. Hester Nepal has reported a net profit of Rs. 1.87 crores in nine months, fulfilling export orders and domestic orders for the domestic vaccine demand. This subsidiary continues to remain debt-free, something also which we had mentioned last time and that continues to be the same.

Coming on to “Hester Africa”:

We have significantly reduced our losses to half, Rs. 0.57 crores in nine months compared to Rs. 13.5 crores in nine months in FY24. The Tanzanian shilling appreciation against the US dollar has resulted in an unrealized exchange gain on borrowing for the nine months of FY25. We are continuing to participate in international tenders and trade sales across the continent of Africa. Also, beyond Africa, in Tanzania, just last week, we did confirm our participation in providing the vaccine in the country also just confirmed and we have closed on that with the Ministry. So a little bit in this quarter, but definitely from Q1 and next financial year, we will be very aggressively participating in the tender programs within Tanzania as well.

So I think looking ahead, our focus in the coming quarters is also getting our bottom line steady, something which in the first two quarters was looking very

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promising. However, in Q3, due to a little bit in the top line, it has sort of impacted the ratios a little bit. We are working on a couple of initiatives as mentioned in Poultry Healthcare. Our focus on our core strengths on vaccine efficiencies we are working on still further improving our product mix in new ranges in the Poultry Healthcare segment. Even with respect to our Petcare division, we want to further strengthen its leveraging its strong growth trajectory and we are committed to increasing products, committed to innovation in the market. Along with that, even in Animal Healthcare, yes, there was a dip that we have seen in Q3 though most of the reasons that I mentioned have been external and not really been in our hands. But at the same time, we do thank you for recouping and are able to balance that out.

I thank you all for hearing me out with continued support and confidence and we now welcome you.

Moderator:

Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press “” and 1 on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press “” and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. First question is from the line of Rushabh Shah from Buglerock PMS. Please go ahead.

Rushabh Shah:

Thanks for the opportunity. I have a few questions. Efficiency in a vaccine manufacturing company is really important. So is there an agency which monitors this and what is your efficiency rate in the vaccine business and is there any competitor who is near our efficiency rate?

Rajiv Gandhi:

Efficiency you mean to say the productivity, the product costing etc. what does that mean or the end result in the field?

Rushabh Shah:

Yes, end result.

Rajiv Gandhi: End result in the field, vaccines are released by pharmacopoeial standards. In fact tendered vaccines are even tested by the government before they are supplied. Private companies have a robust system to monitor their health programs and it's a very regimental release of vaccines. So there is nothing which as what we say in Hindi, “unnees bees” it is what it is as per the release titer and that's the way vaccines are released.

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Rushabh Shah: Okay. And my next question is in business like ours, which is so (Inaudible) 0:13:22, how difficult would it be for any company to stand against us? Because the difficult part is the registration part, which all companies would have, but what separate us from others?

Rajiv Gandhi: What separates Hester from others? You are asking our USP?

Rushabh Shah: Yes.

• Rajiv Gandhi: We are the only company in India that is into the full range of animal vaccines. If you take all other companies, they are either in poultry or they are in large animal. We are into full range whether it is poultry, cattle, sheep, goat, swine. So that is definitely a USP that we have. We have a larger excess, a bigger market to cover than the others. In terms of product quality, I think India is one of the world's biggest vaccine producers in human, of course, and now also in veterinary. I would say that all vaccine manufacturers have good quality and it is for each vaccine manufacturer to compete in the open market, the technical sales service, be it after sales service, allied products, etc. And we try our best to excel compared to our competitors.

Rushabh Shah: Sir, my question was your USP. According to you your USP would be a full range of vaccine, correct? Rajiv Gandhi: Yes, broad range of vaccines.

• Rushabh Shah: Okay. Sir, my next question is how much of the government intervention bothered us like for making the vaccine or other getting approvals?

Rajiv Gandhi: No, there is no government. There is a regulatory process which has to be adhered to. If we take regulatory process as a hurdle, I don't think it would be appropriate. Regulatory processes are well defined. And we follow the regulatory process. I would not say that there are any hurdles.

• Rushabh Shah:

Okay.

• Rajiv Gandhi:

Thank you.

Moderator: Thank you very much. Next question is from the line of Samir Desai from Ficom Advisory LLP. Please go ahead.

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Samir Desai: Good afternoon sir, congratulations for the great set of numbers. Sir, I have two questions. What is capacity utilization for nine months? Priya Gandhi: For the 9 months period it would be approximately 70% utilization. Samir Desai: Is it average or only India you are talking about? What about other countries? Priya Gandhi: No, I am talking about India. Samir Desai: And what about others? Rajiv Gandhi: For the other two, we are utilizing at the moment around 10% to 15%. In Nepal, it will be around 20%. In Africa, it is only 10% utilization. We have enough capacity.

Samir Desai: Okay, so current capacity is enough for the growth for next two years or we are planning to have increased capacity in India? Priya Gandhi: No, it is enough. Samir Desai: Okay, and last question, any guidance for FY26 and FY27? Any guidance? Rajiv Gandhi: Sorry, your voice was not clear. Samir Desai: Any guidance for coming years, FY26 or FY27, guidance on revenue side or growth side or CAPEX side, any? Rajiv Gandhi: We would want to refrain from this guidance to be honest. Yes, we have our budgets. We have our internal forecast. We have every single thing ready. But I would say that the as Priya did mention that there has been a little bit dip in Q3. We are sure to recover and in fact our targets are much better even whatever performances we have done in the last 2-3 years and that's the way we are taking forward and it's our clear determination to improve the bottom line substantially.

Samir Desai: Okay, thank you sir. Rajiv Gandhi: Thank you. Moderator: Thank you. Next question is from the line of Himanshu Upadhyay from BugleRock PMS. Please go ahead.

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Himanshu Upadhyay: This product which were active in one of the ingredients Nimesulide has been banned. How big is the size of the product? And there are new products what you will be launching, will it be premium to the market and are there existing products in the market already which don't have this active ingredients and how what percentage of our business was from this product? Can you give some thoughts on this? In Animal Healthcare division?

Rajiv Gandhi:

Yes, so this product has been now banned by the government of India. And this ban is across for human as well as veterinary, if I'm not mistaken, because our focus is veterinary. So therefore, we feel. So your question is, what is the impact on the sales to our company? Am I right, you are asking the impact?

• Himanshu Upadhyay: Yes, the impact in the new product what will be launching, would it be…?

Priya Gandhi: Yes, so the new product we will be launching we’re still working on the formulation and I will, unfortunately I don't have the exact details to give you at this point in time and in terms of a financial impact, I think 5 crores to 6 crores is the financial impact which we are going to be registering in Q3.

• Himanshu Upadhyay: And is there a competitive product already there by some other company or right?

Priya Gandhi: I'm sorry can you repeat that, for some reason the line today is not very clear. Can you repeat it?

• Himanshu Upadhyay: Yes, so my question was is there competitive, a product from competition already there in the market which is fulfilling this requirement or?

• Priya Gandhi: So mostly all our healthcare products in the AH division are not really any unique formulations so far. So yes, there are other products that exist and there have been other companies also that have been impacted with the same ban.

• Himanshu Upadhyay: Okay. And what would be your top three priorities and how is the poultry market itself doing? Means are we seeing the impact of inflation which was there on the poultry historically? It has now faded and the farmers are able to price the product and feed prices are down. So some thoughts on the poultry market will be helpful to us.

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Rajiv Gandhi:

• Rajiv here. The poultry industry is doing relatively better than what it had been doing in the last 2-3 years. Maize prices continue to dominate the total economy of poultry farmers. So the feed prices, etc. have become high, but now it has more or less become a routine for poultry farmers and there is an acceptance to the higher price and therefore there is a price adjustment and that is how the poultry industry is now performing. To repeat, it's definitely doing better than earlier. So that's on the poultry industry. As far as our growth plans are concerned, vaccines and health products, there are two streams of products that we as a company are looking into. One is the vaccine side and one are the non-vaccine products. While we continue to progress on vaccines, while we continue to add vaccines in newer diseases, as well as improvise current vaccine that we have, not in terms of performance because performance is anyway good in terms of internal production efficiency to improve our profitability. We definitely now are focusing on health products for all the species, poultry, cattle, sheep, goat and swine and we would want to add a bigger, higher topline with these products as well besides continuing the focus on the vaccines. Vaccines remain flagship, but under the banner of vaccines, we would want to increase our health products turnover substantially. And it should even exceed the vaccine sales in the next few years’ time.

• Himanshu Upadhyay: And generally, historically, what is the price rise have you been able to transfer in the market for poultry vaccines?

• Rajiv Gandhi: Our poultry vaccines pricing is something which is a trade business and we would not really want to discuss on what are the price rise in our price list etc. We are in the market there are competitors, we ourselves have our USP and we decide and it would be a very arbitrary answer to give you on a price increase or something of that sort.

• Himanshu Upadhyay: No, so what I was trying to understand, historically inflation which is there are we able to transfer the...

Rajiv Gandhi: Yes, that is not an issue at all.

• Himanshu Upadhyay: Thank you. I will join back in the queue for further questions.

Rajiv Gandhi: Thank you.

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Moderator:

Keshav Garg:

Rajiv Gandhi:

Keshav Garg:

Thank you very much. Ladies and gentlemen, please limit your question to 2 per participants. Next question is from the line of Keshav Garg from Counter Cyclical PMS. Please go ahead.

Sir, the results are really disappointing, and I think we have clocked the consolidated EBITDA of Rs. 5 crore which in my memory is the lowest in the past decade at least. And if we see the consolidated sales have come to only less than Rs. 40 lakh whereas last quarter the consolidated, the sales on subsidiaries was Rs. 11 crores or thereabouts. So I don't understand what exactly happened on a consolidated basis. Even the standalone numbers are weak but consolidated numbers are especially bad. So when I hope in the fourth quarter we can see some kind of a turnaround?

Yes, the financial results, the figures say it all. There is nothing different that we have been trying to say as what we have published and what you have read. The international market, especially Africa, it has been riddled with each of the countries with some political issue with some financial situation in each country etc. We have tackled and withered to all of these in the last two years. We see the brighter side now. Tanzania, as Priya mentioned, tenders have already been published, we have already been awarded tender. We are moving forward now to begin the supplies in the African continent. This is something which has happened for reasons beyond our control. And that's something which we are still battling. And we will battle. Not that we will not battle. But it's just that we need one small window, because our margins are good. Our capacities are very high. There are no other expenses that we will have to put in. So to answer your question, yes, there has been a turmoil, a little bit of a downside in this. But we are looking ahead to a much, much bigger scale, especially from the African continent. And not just African continent, even in Ethiopia, we are very confident that we will be pushing things forward. If you really go to see the second and the third quarters, even on the animal side, there are always dips in the second and the third quarter in terms of size. We are going through this and we rest assured at least the African business will give a very big leap in the next two quarters, which will change the complete complexion of our consolidated balance sheet further.

Great sir. I hope the performance of the company improves and best of luck to you and your team. Thank you.

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Rajiv Gandhi: Nice of you to wish and be rest assured we are working on it, we are determined and we now definitely see things improve it.

Moderator: Thank you very much. The next question is from the line of Rushabh Shah from BugleRock PMS. Please go ahead.

Rushabh Shah: Thanks for the opportunity. So, whenever we enter new markets like Africa, you do your you do your R&D. What could go wrong in those research and development things because we are having so much registration delays in Africa?

Rajiv Gandhi: So your first line was not audible. Can you repeat the first line please?

Rushabh Shah: So whenever we enter new markets like Africa, so you must have done your own research in development out there. So like what could go wrong to enter in these new markets because we are having so much so many registration delays in Africa?

Rajiv Gandhi: Yes, see the registration delay, it is a constant factor for all, whether it is Hester Biosciences or anyway, but at the moment we are not even battling for registration delays, actually the issue is that the vendors that would come they have come. There is no registration issue that at this point of time we are battling to be very honest.

Rushabh Shah: Why did you choose Africa as a country for expansion purposes? What was your thought process behind it? And… Rajiv Gandhi: Somebody is talking behind, we are getting different voices also I do not know if everybody else could put it on mute because there is too much of disturbance. Anyway, please carry on with your question.

Rushabh Shah: My question was why did you choose Africa as a country for expansion purposes? What was your thought process behind it and what are your thoughts on Latin America?

Rajiv Gandhi: Okay, why we chose Africa? This is something which is now a five-year-old issue. Africa is a growing continent in terms of economics and that's something and health care, the sister, the opportunities are immense. And in fact to tell you Hester Biosciences is the biggest pharma investor in the country in

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Tanzania as on today. We see Africa as a very fast growing continent. Now, when things grow, it does not mean that everything grows at the same pace. There are different growth parameters for every industry. So would be even for our vaccines, Animal Health products, etc. But in the long term, that is the place where we feel we should be and that is why we have chosen the African continent. Why not South? Okay, another reason for Africa, nearness to India, it's just 5-6 hours flight away from India, etc. Why not South America? Our own knowledge as Hester Biosciences is, is very limited on South America. We have done surveys but still our ability to gather information of that continent has not been very good. It's too far away to reach to the nearest city in South America. it would take approximately 24 hours, or if not 24 hours, at least between 18 and 24 hours to reach the nearest city and then go further another 5-7 hours etc. It is not within our thought process to actually look at South America as a market. There are inquiries and we are willing to export to South America but it is not in our radar to do any manufacturing activity there.

Rushabh Shah:

Rajiv Gandhi:

Rushabh Shah:

Rajiv Gandhi:

Rushabh Shah:

Sir, since you are on Geographic expansion, one of the annual reports you have written that North America is the largest market for Animal Health care. So what is your long-term vision? Is it to enter North American market? Are you thinking about it?

• No, our vision, if you look at the American market, it is more pet centric. The pet business is the biggest. We have started our pet division in India and we will now grow it. Our focus right now is on production animals. Production animals means those animals which are reared by human beings to derive a source of income. We are addressing this market in growing economies. It is the production animals which are more relevant rather than the pets and therefore our focus at the moment internationally is production animals but in pets we have started the business and we are growing that business organically first in India and then we will look into it and improve it further.

• My last question is when you apply for registration, how much time and how much money does it take for the process to get the final approval in Africa?

Different countries have different timelines. Different countries have different costs for registration. So it's nothing one specific thing. At an average, it would take between 6 months to 2 years for registration.

Thank you so much. I will get back in the queue.

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Moderator:

Thank you. The next question is from the line of Utsav Adani from Oaklane Capital. Please go ahead.

Utsav Adani:

Thank you for the opportunity. Sir, I wanted to understand the market size for Avian influenza vaccine and which geographies do you plan to cater to? Also, are there any existing players in these geographies for Avian influenza vaccines?

Priya Gandhi:

The market for Avian influenza in India is approximately 100 crores. Right now we are focusing on the domestic only. We are still working on the development and release of the vaccine which will happen in the coming financial year and right now our focus continues to be the domestic market and there are also some inquiries for us to export it in certain countries mainly Middle East and Africa and that's going to be our focus. In terms of competition, yes, there are some multinational companies. The government will start (Inaudible) 35.48. We do have some competition but we are very confident on our quality given that Poultry Vaccines is our strength. So I think we are reasonably confident to take a reasonable share half-pie of the higher market demand.

Utsav Adani: My second question is about the government of India is allocated close to $2 billion for various vaccination programs in PPR, classical swine fever under National Animal Disease Control Program. So how has been the tendering activity across different programs in India?

Rajiv Gandhi: We as a company are at the moment supplying the PPR vaccine via the government tenders towards the national eradication program. There are other companies supplying other vaccines. Of course, we are also supplying the goat pox vaccine for the immunization against lumpy skin disease in cattle. I would say that the government tendering process is very straightforward, clear and transparent. And the main (Inaudible) 0:36:57 and the government checks every batch that is supplied under their purchases and supplies are made all across the country. It's a well-defined good process.

Utsav Adani:

• Right. Do you expect the tendering activity to go up or it will stay at the levels where it is?

Rajiv Gandhi:

No, it will continue the way the tenders are. It will continue. In fact, you see, there is an x amount of population that needs to be vaccinated. If the government is more or less covering around 70% to 80%, what we could say

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safely is that the similar quantities or with a 10% increase as the population of those species increase, it can go on. But government doing a very good job as far as PPR and goat pox is concerned, majority of the animals are covered. So the number of doses required would more or less be the same or a little higher in subsequent years.

Utsav Adani:

Rajiv Gandhi:

Utsav Adani:

• Moderator:

Priya Gandhi:

Moderator:

Got it. So there have not been material delays for vaccines that you are supplying? It might be for others, but…

No, not at all. Nothing. Zero delays.

Got it. Thank you.

Thank you very much. Ladies and gentlemen, that’s the last question for today's call. I would now like to hand the conference over to the management for closing comments.

Thank you all for joining the call today and hearing us out. Yes, we take full responsibility and are mindful of the fact that the numbers this quarter has not been very encouraging. You are not to look at on a piece of paper, but at the same time our commitment to not make this disappointing last remains as strong with many quantitative as well as qualitative efforts that we are trying to make. A few years ago, we were having a similar discussion with respect to the poultry division, which was seeing a downturn because of the market dynamics. These are cyclic things, sometimes impact the business. However, if you all can see, we've recouped our performance in the poultry industry. In fact, this year, we are seeing, even in the last quarter, there is a similar growth. Yes, Animal Health is a little bit concerning in the last quarter, mainly for external… We are still continuing to work internally to recover all these gaps. And Petcare, as mentioned, the scope is huge. Our base is small, yes, but the scope is huge and we are trying to catch. A lot of promises that we make sometimes may seem a little slow because they also are a little bit long-term in nature, so they take some time. But all I can say is that we are at it and we thank you all for your support and confidence.

Thank you. On behalf of ICICI Securities Limited that concludes this conference. Thank you for joining us and you may now disconnect your lines.

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