Castrol India Limited (500870) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Castrol India Limited 2Q FY 2021 Earnings Conference Call. [Operator Instructions] We are joined in the room by Mr. Sandeep Sangwan, Managing Director, Castrol India Limited; and Mr. Deepesh Baxi, CFO; and Wholetime Director, Castrol India Limited. I now hand the conference over to Mr. Sangwan. Thank you, and over to you, sir.

Thanks. Good afternoon, everyone, and thanks for joining the call. I sincerely hope you are all keeping well and your family, too, is healthy and safe. This is the time to keep our guard up and follow all necessary precautions, including stepping out only when necessary, masking up and following hygiene protocols, including adequate and regular washing of hands to ensure our health and safety and that of our family and teams during this pandemic. As we talk about health and safety, our topmost priority remains the safety and well-being of our teams. As you are aware, our plants have continued to operate through this pandemic, safely deploying COVID-19 safety processes and guidelines as laid out by local governments to ensure we meet customer demand. We have completed vaccination camps for our staff in plants along with their families and also for our teams and their families who continue to work from home. Similarly, supporting communities is another strategic priority for us and our work with the trucker and mechanic communities was recently acknowledged when our flagship CSR programs were recognized with excellence in CSR award by the British Business Group Delhi. The award to Castrol Eklavya for upskilling of mechanics and Castrol Sarathi Mitra program for holistic development of truck drivers is a recognition of our endeavors towards sustained livelihoods with pride for these communities, along with recent interventions such as student scholarships, family connect programs focused on health and well-being, along with COVID awareness and community vaccination drives, that have helped us forge an even stronger bond with them during the pandemic. I'll share some key points on the second quarter and first half '21 results for Castrol India Limited, which we announced yesterday before we start taking your questions. As you're aware, we reported a strong set of numbers in second quarter and first half continuing on the momentum we've built in the last few quarters. We have maintained strong financials clearly in the first half of 2021 with our second quarter revenue from operations at INR 890 crores, which is 81% higher and second quarter PBT at INR 190 crores, which is 115% higher as compared to second quarter last year. First half '21 revenue from operations at INR 2,028 crores, up 72% higher and first half 2021 PBT at INR 523 crores is 103% higher than 2020. These numbers looked significantly high compared to the second quarter and first half numbers of last year as this period last year had witnessed a national lockdown on account of the first wave of the pandemic in India. And if you look at the recent situation, especially in the second quarter of this year, we've seen some of these challenges come back in the form of localized lockdowns, muted demand as well as a sharp rise in input costs. However, we've been able to navigate this dynamic and uncertain market situation very well through our timely pricing interventions, along with our ability to be agile and respond quickly. We continued to invest in our brands with increased marketing and advertising spend to support value delivery to our customers and reinforce brand salience. In our endeavor to deliver quick and reliable service brand experience to consumers as part of our recent collaboration with Jio-bp team at their retail sites, we launched a new concept of Castrol Express oil change outlets, which offer quick oil change service for consumers on the go. We leveraged digital platforms to continue building engagement with the biker community with our high-performance synthetics range of Castrol Power1 Ultimate, 2-wheeler engine oils through performance imagery-led impact properties including Bollywood movie launched, Toofaan, featuring Farhan Akhtar and directed by Rakeysh Omprakash. During this period, we celebrated a key milestone of our manufacturing plant at Silvassa completing 25 years of safe and successful operations. The plant has evolved into an epitome of trust and liability over the years for our customers, including key OEMs, and is considered as one of the most modern lubricant plants in the region. The Board of Directors of the company has recommended an interim dividend of INR 2.50 per share, and this is the same as the interim dividend that we announced last year for similar period. The management team of Castrol India is carefully and closely observing the situation, and we continue to respond with appropriate actions as needed. We remain confident of our strong business fundamentals and longer-term profitable business growth as the situation returns to a normal state. And with this, I now hand over back to you for the questions, and Deepesh is here with me who will be also taking some of the questions. Thank you.

[Operator Instructions] The first question is from the line of Viraj from Securities Investment Management.

I just have 2 questions and these are largely on the...

Mr. Viraj, we are unable to hear you. If you can speak closer to the handset.

Yes. Am I audible now?

Better. Yes.

So I just have basically 2 questions, just asking you on [indiscernible], which you are trying to scale up and enter into. So one is can you kind of provide some color in terms of how the scale-up begin with 3M now? What are the pipeline we have in terms of other partners or product segments we're still looking to cater to? So what is the broader thought process for this particular segment over the next 3, 5 years? Any particular road map you can share? So that is one. And second is we talked about this Castrol oil change express outlet. So will it purely be an association with BP and that, too, only limited to lubricants? Or we'll be looking to cater to more outlets outside of BP tie-ups and also other products sort of at the car stops or service centers? So yes, that's all from my side.

So let me -- thanks, Viraj. Let me take the first question, which is around 3M partnership. So we completed our first pilot in select cities with Castrol oil change products and we've had some good learnings across portfolio mix, consumer and customer behaviors as well as distribution channels. And taking these experiences and learnings from pilot 1, we will be launching the second stage of this pilot in September 2021. I think because of the COVID situation, because of the pandemic, we've taken a break while we kind of learned from our experiences. So in the second phase, we have 6 cities from the first pilot and then possibly we'll add a few more cities and then see where that goes. So I think in terms of projections or where this will go in the next few years, I think still time to call for that. But our intent is to participate in this category, and 3M and Castrol are 2 trusted brands by consumers. So that's the long and short of it. So the pilot will go -- the second stage of the pilot will go live in September and then we'll see how we scale that up. Coming to your second question around new change express centers. Our current play is planned for Jio-bp outlet. That's where we focused, I think, because we have a very strong partner in Jio-bp, where we are their exclusive lubricant supplier on their fuel courts and we want to give our consumers a much better experience than what they get in some of the other aftermarket workshops or places that change their oil. And we just started on that journey. We've got 2 of these stations going live now. And the BP -- Jio-bp network is going to expand to about 5,000 outlets in the next 5 years. And we will focus on that because that gives us enough headroom for growth also, and it's called Castrol Express Service.

Sir, just a follow-up. On the adjacencies, the reason why I'm asking is the parent also has been quite vocal about tie-ups so they have a time with Bosch for a couple of after-service segments in U.S., China. And when we look at the India business for us, that is one of the most -- strongest asset we have is the network or the service infrastructure, which we have built over the years.

Yes.

But somehow, there's been some flatness or we have not been that aggressive in terms of monetizing it. So just trying to understand probably not in the next 1 or 2 years, but trying to understand this [ foreign ] business, how big our avenues in terms of different product segments it can be for us. Any thought process you can share?

Yes, yes. I think a very good question and I think what you're saying is right. The parent as a global company is very active in expanding into the service and maintenance area, and I think we're not kind of -- we're looking at that very actively in India also. And if you've heard the news over the last quarter, we've signed up with ki Mobility, okay? ki Mobility is part of TVS Group, which is primarily in the aftermarket service and maintenance area. In fact, they've taken over Mahindra First Choice, and we just signed a 3-year partnership deal with them in the service and maintenance. We are their lubricant partner. But possibly, we look at exploring what else is the other possible. That's one. We also have our own kind of branded workshops. These are not owned by us. These are not our assets, but leveraging Castrol as a trusted brand. We help workshops drive more consumer traffic into those workshops. So we have about concepts of this Castrol auto service, Castrol service or Castrol branding, so we're actively looking into that area.

The next question is from the line of Vidyadhar Ginde from ICICI Securities.

My first question is regarding if you could share with us your second quarter volumes. And the second question is regarding if you could also give us some indications on margin outlook for next -- now going forward, mainly next year, given -- assuming that oil prices and lubes prices stay somewhere where they are right now.

So can I request Deepesh to take both these questions, please? Deepesh, over to you.

Yes. Thanks, Sandeep. So our quarter 2 volumes was around 45 million liters, okay. Second question you had was around the margin outlook. So I wouldn't want to give a forecast number here. But as a concept, if you see in this quarter there has been unprecedented increase in the input cost and this has happened in the first quarter as well, right? And we have taken 3 price increases in the market, one was in January, second was in April and then the third was in the month of June. Of course, this is in the retail. And so the way we look at our margins is we try to manage the input cost increase through strategic pricing, not tactical pricing. Increase in crude is one aspect. But if you look at what impacts us is base oil, not directly crude, because base oil is something that is then a byproduct after the crude goes into refining, right? And in first half, we've had supply constraints because refineries were not producing base oil. The trend of base oil is still in terms of the input cost increasing right up to July and we expect that there will be some relief in the later part of the year. The other cost that impacts us is ForEx. We do hedging, but as you know ForEx in the last 1, 1.5 years, in fact, has been very, very volatile. So just to summarize, our operating margin is generally in the range of 22% to 25%, 26% and that's the broad range that we operate in.

So the last few years could be a good -- except maybe assuming CY '22 is a non-COVID year, then year before '20 could be a good indicator of that range?

Very difficult to predict, right, because 2019 was a non-COVID year, right? And in some way or the other, and if you look at, our financial year is Jan to December. So I think when you say 2022, are you referring to Jan to December? Very difficult to...

Yes, yes. yes. I'm talking of the next calendar year for you. Yes, yes. Not financial year.

Yes. We'll have to really see, I mean, how the market behaves and how demand behaves in light of pandemic as well as the crude scenario, crude as in base oil.

The next question is from the line of Yogesh Kulkarni from Quantum Mutual Fund.

Yes. I have a question from the ESG point of view. As your parent company is having in detail as per the report. Would you like to share any thoughts that you plan for Castrol India [indiscernible] ?

Sorry, Yogesh, can you repeat your question? I did not hear it very clearly.

Yes, yes. The question is regarding the ESG point of view. The parent company is having in detail [indiscernible] ESG report published annually. So with Castrol India, do we have any plan or thoughts on this?

Absolutely. I think, first of all, I'd like to say it, as Castrol, we consider ourselves a very socially responsible company so ESG is very important for us, okay? And I think as far as communities, employees and governance is concerned, we are pretty much up there with best-in-class companies. I think as far as the sustainability aspect is concerned, Castrol globally has launched a program called Path 360, okay, which we are completely committed to, which aims to make sure that Castrol as a brand becomes net zero by 2050. And the 3 key components of that Path 360: one is around reducing waste, the second is around reducing carbon and the third area is improving lives of -- improving people's lives by providing them better products. So I can talk to some of the initiatives that we've taken in this area in Castrol India. So to give you an example, in terms of plastic reduction, we have a project where we want to reduce plastic in our small bottles by about 20% and that project was launched in last year. And this year, most of our small plastic bottles will have reduced plastic content by about 20%. We have installed solar panels for renewable generating in our plants. And in fact, this year, we're doing -- undertaking energy audit in all our plants to understand how can we switch to more to renewables in the coming years. The third area, which we've done is we started in our plants blending at lower temperatures, okay, which reduces energy consumption. And then we are also actually looking at things like where can we use rerefined base oil. The BS VI range of products that we launched are more efficient products, okay, because the consumption is lower, they're more efficient products. So we're looking at every angle where we can reduce the carbon impact of our business.

The next question is from the line of [ Vipul Shah ] from [ Sumangal Investment ].

Congratulations for good set of numbers. My question is will there be any CapEx involved for -- in this Jio partnership?

So I'll let Deepesh take that. Deepesh, you'll have a better hand of numbers. But yes, there is an involvement of CapEx when we say we're supporting the -- these -- we're establishing these lube express service stations on Jio-bp side. There is a CapEx involvement, but I'll let Deepesh talk to that.

Yes, Sandeep, thanks. So I think Sandeep is right, absolutely, we have some CapEx involved as we expand the new oil change stations and services over a period of time. I mean overall, that CapEx will not be significant in terms of our overall CapEx plan. As you know, in the last couple of years, CapEx has been in the range of INR 80 crores to INR 90 crores and that's broadly the range that we operate in leave aside any expansion plans if we do in our plants. So that's separate.

And sir, can you give me quarter 4 volume numbers? I mean, yes, the March quarter.

61 million liters.

61 million liters. And lastly, sir, can you quantify the rising base oil price over last 1 year in percentage terms?

So base oil, let's say, around quarter 4 2020 was in the range of $650. And that at the end of June, I would say, is almost in the range of about $1,100.

It has almost doubled in 6 months.

That's 8 to 9 months, I would say.

The next question is from the line of Kunal Thanvi from Banyan Tree Advisors.

I had 2 broad questions. One was on we have been talking about rationalizing the price and being more competitive on the CV side. Can you talk about how do you see gain on the CV side [ as you see ] in the market share gain? And what would be our strategy on that business going ahead as well? And the second question comes -- is on the industrial side of the business with reopening of [indiscernible], some greenfields in terms of production numbers across industries, especially the CapEx-driven industry. How do -- we are looking at that business? And any sense on how that business could evolve in the next 2 to 3 years?

Yes, sure. So let me take that question. I think, Kunal, the first question, I think, was more around our pricing strategy. I think -- what I'd like to say is we have a pricing strategy, and we have certain parameters that we continuously monitor in the market and then we take corrective actions or not, depending on what that situation is. So I wouldn't like to go into detail about pricing strategy. But some of the actions that we took in the second half of last year seem to be bearing fruit. We are growing our share and the last 1 year, if I look at, we've improved our share -- market share in the retail segment by about 2 percentage points, which is good news. And I think we'll continue monitoring the situation, and we want to stay true to our pricing strategy and not kind of get into any certain interventions that are not sustainable in the long term, okay? So that's in response to your first question. I think on the second question, industrial business, it has set up very well in the -- what we call as the first quarter and what you call as the fourth quarter, which is Jan to March period. But I think the second wave has hit the industrial business also pretty hard. If I look at IIP, was down about 8% in the month of May, okay? It was negative in April as well. And I think now it's starting to come back. But again, industrial business has also been impacted by input costs. So for example, I'm sure you're all aware, for example, the automotive industry is facing a huge chip shortage, which has an impact on production in automotive industries, et cetera. So I think with all the business sentiment we see currently and let's hope there's no third wave, even the industrial business should do well. But difficult to predict anything. But we are well-prepared to service all the demand that comes in. All our plants have been operating, and we are fully prepared and we have the scale and the distribution strength to service all the demand that comes through from that part of the business.

Sure, sure. Just to follow up on the first answer that you gave. So 2% market share that you indicated, is it on the CV side or the entire business?

No. It's across segments where we kind of gained, whether it's commercial vehicles, 2-wheelers. And I think on the passenger car side, we've gained in some geographic areas; where some areas we need to do a bit more work. But I think overall, we're quite happy with the way shares have progressed.

Sure. Just if I can squeeze one more question on the price increase that you just talked about. There was almost 100% increase in last 8, 9 months. So conceptually not any -- not what is happening now, conceptually, when there is this kind of price increase, right? How does the price pass-through work? Like how much time does it take for us to pass on the increase in raw material prices to the customers and especially in an environment like this when demand is also subdued. Can you just throw some light on broader perspective how does that work?

Yes. I think it differs channel by channel. So typically, what you will see is the price increases in retail tend to come through much faster, okay? It's a function of what inventory is sitting in trade. But typically, the retail price increases come through faster. Depending on products and brands and what have you, it could range anywhere from 1 to 3 months, okay? Whereas B2B price increases tend to take a bit longer because there the pricing discussions are almost done at a customer by customer level and the lag on prices coming through is a bit longer than the retail business.

The next question is from the line of Abhijeet Bora from Sharekhan. As there is no reply from the current participant, we move to the next question from the line of Deepan Sankara from Trustline PMS.

Firstly, wanted to understand how is our market share, specifically in the bazaar segment and personal mobility space where we are expecting much higher growth than even CV and the industry?

Yes. So I think the share number that I was talking in my previous -- in response to the previous question were the bazaar segment because we measure shares through Nielsen in the retail or what you call as the bazaar segment. And I think we have pretty strong shares. Our shares in the 2-wheeler segment are around 26%, 27%, I wouldn't to give specific numbers. And similarly, in the automotive segment, we are -- in the passenger car segment, we have around 35%. So pretty strong shares across both the segments. Just to give you an idea, in the bazaar segment, our share of the retail segment as measured by Nielsen, our share is -- market share is around 22%, 23%. And the second closest player is around 7%. So I think that's the strength Castrol has as a brand.

Next question is from the line of Nitin Tiwari from Yes Securities.

My first question is on the ethanol blending target that government has said and they are pretty aggressive ones. The blending is also improving. So does that require meaningful changes in the lubricant quality as well? And would that require any cost or typical -- so your thoughts on that, please.

Sorry, Nitin, your sound is not very clear. Can I request you to please repeat your question?

Sure, sure. I'm sorry about that. Now is this audible?

Yes.

Yes. So I was -- my first question was around the ethanol blending target that government has said. Those are pretty aggressive targets of about 20%, 25%, which would mean that the fuel specifications would change and evolve very rapidly. So would that require a change in the lubricant quality as well? And in turn, would that entail any CapEx or costs that are in to obviously align the lubricant quality along with the fuel specification change? Your thoughts on that. So that's the first one.

Yes, yes. So I think as far as the fuel specification changes regulation is concerned, it's not something which is alien to us. Being a part of a global organization and having a very strong R&D parent -- R&D, the parent company in U.K., we are very well prepared because most of these specifications tend to come to India a bit later than what they've come in the developed worlds as has happened in BS VI. So we are the first one to kind of leverage our global technology centers and development to come out of the BS VI portfolio. So I think whatever is the need of the market we'll be able to fulfill that dependent on what was required.

My question is more specific to the requirement for lubricant. Would the blending of ethanol require incremental blending of any additive? And would that raise the cost and subsequently the price as well for the lubricant? That's the more specific question.

Yes. So I think what happens is whenever you get a better-quality product, right, it's an opportunity also, okay? It's an opportunity to trade up, okay, because these are better products giving better value to consumers and customers. So it's -- again, it's a function of a price/cost equation that delivers value to the customers and that's what we look at.

Okay. Fair enough. And my second question was around the volume mix. So if you can just give us a broad indication of how the volume mix was in this quarter in terms of automotive, 2-wheelers and 4-wheelers and CVO sector.

Deepesh, would you like to take that question, please?

Yes, sure. So in terms of volume mix in this quarter, we had about 40% going into personal mobility and another 40% to 45% in CVO and the rest is industrial.

Got it. Understood. And if I may squeeze just one more. So what was the market share that we have originally in the totally synthetic segment, the fully synthetic oils?

Yes, I don't have the numbers off my head, but our synthetic share is also -- it's going to be higher than the total share that we have as a company because I think that's where Castrol is strong in technology. But I'm afraid I don't have the specific numbers in my head right now.

The next question is from the line of Abhijeet Bora from Sharekhan.

I have only 1 question, that any good guide upon the volume we come in July and August post the like this COVID wave is like coming down?

Yes. Thanks. I'd like -- I won't like to give any projections as far as volume or any -- revenue is concerned for future months. All I can say is I think we've seen good momentum in the business. I think in the second wave of pandemic, for example, if you look at the second half of April and May was impacted in a major way because there were lockdowns. But post that, we've seen good recovery in June and I think we continue to see good momentum in the business in July as well. And as I said earlier, let's hope there is no third wave and this business momentum can continue.

The next question is from the line of Sabri Hazarika from Emkay Global.

Just 1 question. What is the current plant capacity that Castrol has totally in these 3 plants?

Yes. So we -- our plant capacity is 225 million, okay? And then we have third-party suppliers who can help us extend that capacity. We have third-party partnerships. So we have enough capacity to fulfill any demand. And as things progress, we are also probably investing more to build capacity.

The next question is from the line of [ Imran Khan ] from RatnaTraya Capital.

Am I audible and clear?

Yes, [ Imran ].

Sir, just 1 question. What is our market share in bazaar segment for CVs?

Sure. In the Bazaar segment, our CV share is around 18-odd percent.

18%?

17%, 18% yes.

Okay. And what is the second largest [ gas ] share if you have that number?

No. I don't have that numbers with me.

The next question is from the line of from [ Varatharajan S ] from Antique Limited.

Am I audible, sir?

Yes.

Yes. Your packaging cost has gone up sharply quarter-on-quarter?

Deepesh, would you like to take that question, please?

Sorry, what cost? I could not...

Packaging. Packaging costs.

Hello?

Yes, your packaging cost.

Sorry, what is -- I can't hear you.

Let me respond to that. I think the packaging costs have gone up because the input costs have gone up, okay? And especially in the first half, we saw a steep increase in things like steel, okay, and some of the packaging material pass-through. So the costs have gone up, okay?

Okay. My second question on your base oil procurement. How much is imported and how much is domestic?

Deepesh, do you have the numbers?

Yes, yes. So about 70% is imported.

Okay. And domestic is between IOC and HP? Or is there [indiscernible] on the mix?

Yes. I mean, across suppliers, domestic. And we do -- I think that's not some rule, but obviously, as procurement, we try to optimize the purchase and the cost. So sometimes the ratio changes as well.

The next question is from the line of Sumeet Rohra from Smartsun Capital.

Sir, I have 2 basic questions. One of them is a thematic one, which I'll come to a second. Sir, firstly, if you can just share your thoughts on how do you basically see volume shaping up for the current year? Seeing that in the point of time that we had a little bit of a severe second wave and now, I mean, how do you see basically volume across all the fronts? And sir, secondly, my second question is more on a thematic basis. So what's the study, I mean, which you guys have done on this EV mobility? And when do you actually think that if it seriously come into India and kind of affect volume for us. And basically, how do you see the market evolving of the EV part, please?

So let me respond to your first question. As far as volume projection for the rest of the year, I wouldn't like to comment on that. The only thing I would say is we're seeing good momentum in the business and it's difficult to predict right now whether there will be a third wave or there won't be a third wave. So -- but I think -- from our intent, we've always, as I said in previous earnings calls also, is we stayed focused on 3 things, right? One is making sure that our employees are safe and they're taken care of and we're providing all the support to them to navigate this. The second is protecting the financial health of our business. And the third is supporting our communities. And I think we'll continue operating more with those 3 principles for rest of the year also. And let's hope the business momentum continues. Then on second question related to EVs, I think I wouldn't like to go into what specific study or what have we done. But I think the demand for lubricants in India will continue to stay pretty robust going into -- late into 2030 and even till about 2040 because I think the car penetration is pretty low in India. And I think there's enough scope for growth in the lubricant business as we get into the 2030s and 2040s. The 2-wheeler impact may come sooner. I think the electrification in 2-wheelers and 3-wheelers will come earlier, but there's still a large substantial car part of internal combustion engines that need service and maintenance.

The next question is from the line of Yogesh Patil from Reliance Securities.

I have 2 questions. First one is related to advertisement expenses during second quarter CY '21. And second one is regarding your CapEx guidance for current year and next year.

So I'll hand over to Deepesh, but I think when you say advertising in the second quarter, I did not hear any specific questions. So can you please ask the question you have in your mind.

Yes, sir. So generally, you provide the breakup of other expenses, which includes the advertising -- advertisement expenses. So can you give us the...

Okay. Deepesh, can you please take that, sir?

Yes, sure. So in the second quarter, we have spent about INR 35 crores to INR 40 crores in the advertisement expenses. And that last year was about half, and I mean the main reason for that is that we continue to spend during this as an investment in brand to also support the price increases. And Sandeep has explained earlier strategically we want to make sure that we support the brand salience with our customers. The second question you had was around CapEx, right?

Correct, sir.

Okay. So around CapEx, look, there are 2 types of CapEx. One is obviously CapEx related to what we spend in the business, which is signages and other strengths. And secondly, it is into our plants if we want to do the expansion. So typically, our CapEx is in the range of about INR 100 crores, INR 120 crores. And going forward -- I mean, that's the broad range. Expansion is something we keep looking at. And as Sandeep explained, if we need to expand for requirement of capacity build, so that evaluation is always there versus do we want to build or do we want to use our outsourced processors to manufacture and support us on filling.

Okay. And sir, last one, if you could allow me. Regarding your dividend payment -- dividend per share. So last year, if I'm not wrong, INR 5.5 per share was the dividend. And what we can expect this year? Would it be higher, lower? Any idea, guidance which you can provide us?

So last year was total INR 5.5, right? Interim was INR 2.50 per share, which is what we have declared. Even this year, the Board has made that decision. I really cannot give you the forecast for dividend. I mean that's just not something we do. But if you see our last year's track record, we have a consistent record of paying dividends and it's a factor of how you do in terms of your performance. But as a commitment, we always are thinking on how we can reward our shareholders.

As we see the cash flow from operations are quite strong as compared to the last year, can we expect a better dividend this year? Is that a proper understanding?

That is something the Board will decide. I really cannot make a commitment around that. It depends on so many factors.

Ladies and gentlemen, due to time constraint, that was the last question. I now hand the conference over to Mr. Sandeep Sangwan for closing comments. Over to you, sir.

Yes. Thank you very much, and thanks for all the insightful questions that you've asked. And I think, as I said, we've got pretty strong results in this quarter and let's hope the momentum in the business continues. At the same time, I request everyone to get vaccinated as and when they can and your families. So stay safe, stay healthy. And let's hope we don't have a third wave of -- it's not as severe as the second wave. But please do continue to take all the precautions, and look forward to speaking to you again. Thank you.

Thank you. Ladies and gentlemen, on behalf of Castrol India Limited, that concludes this conference. Thank you all for joining us, and you may now disconnect your lines.