Clean Science and Technology Limited (CLEAN) Earnings Call Transcript & Summary

Good day, and welcome to the Q1 FY '24 Conference Call of Clean Science and Technology Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Siddharth Sikchi. Thank you. And over to you, Mr. Sikchi.

Thank you. Good evening, everyone. I am happy to connect with all of you again to discuss the performance of our company in Q1 FY '24. Let us just talk about a little bit on the business environment. The current business environment is converted to what we witnessed last year. Last year was marked by high inflation, disruptive supply chain, leading to higher rates and geopolitical tensions. Due to these factors, raw material and end product prices were relatively higher in rising price environment and interrupted supply chain, companies were stocking up their inventory upfront leading to a higher sales volume and realization. However, this year, till date is marked by benign inflation, steady supply chain and relatively stable geopolitical environment. Consequently, raw material and end product prices are correcting compared to higher days of last year. in declining price environment, companies tend to go for destocking, which leads to lower sales volume. To summarize, last year was the seller's market while current year is a buyer's market. Companies with better technology, backward integration and lean cost structure would continue to report higher percentage margins. A quick on financial highlights as alluded during last con call following key trends have played out during Q1 FY '24. Raw material prices have corrected across the board. With correction in raw material prices, there is a moderate correction in extra product prices too, led by demand slowdown and inventory destocking, volumes are impacted severely, although we don't believe there is any significant loss in our market share. Revenues for Q1 FY '24 declined by 20% to INR 185 crores against INR 232 crores during Q1 FY '23. The revenue mix was 63% export and 37% domestic. EBITDA decreased to INR 77 crores against INR 91 crores during FY during Q1 FY '23. -- led by product -- better product mix, benign input prices and prudent operating cost structure, company could report higher EBITDA margin of 41.3% compared to 39.4% during Q1 FY '23. Higher EBITDA margin despite decreased revenue base, underscores our unique technology progress and univocally prudent operating cost. On a stand-alone basis, profit after tax was INR 58 crores against INR 70 crores during Q1 FY '23. It is worthwhile to note that last year. Company recorded a onetime gain of INR 9 crores during Q1 FY '23, which got adjusted in the consolidated P&L. So on a consol basis, PAT is lower by only 6% at INR 59 crores despite 20% decline in revenues. We are pleased to report that PAT margins are higher at 31.6% during Q1 FY '24 as against 30.4% during Q1 FY '23 sales profile. Performance Chemicals continued to be the main state with the segment contributing 67% revenues. Pharma and agro intermediates contribution decreased to 19% of revenues, and FMCG chemicals contribution increased to 13% of revenues and FMCG segment witnessed marginal revenue growth. update. We have incurred CapEx of INR 90 crores during this quarter. Of this INR 85 crores were invested in the subsidiary, CSCL and all CapEx continues to be incurred through our internal appeals. Initial civil construction activity is completed at Clean Final Chem Limited. Election of equipment pipe fitting, et cetera, has commenced at CSCL and the progress is on track as planned earlier. Outlook, this could be a year of gradual recovery with demand bottoming out during the first half of financial year, declining RL and fuel prices, along with demand slowdown remain key short-term challenge. But as a company, we will continue to focus internally to improve our yields and operational efficiencies. With our strong R&D pipeline, our endeavor is to continue de-risking our product portfolio and geographical presence. Thank you so much. We are now open for Q&A.

[Operator Instructions] The first question is from the line of Sanjesh Jain from ICICI Securities.

I got a few. Apologies for that. First, on the MEHQ and B, can you help us understand what's the volume decline for this quarter? And how are you looking at the market? Because it appears that China revenue for us has declined even more steeper at 47%. What's happening on the China side? It's just the destocking or you're also seeing a few local players getting active in the China market now? So that's my first question.

So Sanjesh on assented basis, there is -- I mean the revenue de-growth is on account of 2/3 on volume and 1/3 on price realization. To the best of our understanding, there is no new producer of MEHQ or BHA in China. However, because of destocking and lower demand, the offtake has been lower than anticipated.

Okay. So it's purely because of the lower offtake. It's very clear to understand that there is no new local producer who has just got aggressive or anything like that.

Not at the moment.

Got it. Got it. Second question is on the Pharma agrochemical intermediate business. That appears to have fallen even more sharply than our performance chemical while the pharma companies are doing fairly okay compared to the agrochemical, we haven't seen destocking or any of those things on the pharma coming at least their commentary doesn't tell that. So what's happening on that side for us. It's more of TBHQ, which is sorry, PQ, which is hurting us on that segment?

No, no. PQ has no impact. See, there are 2 major pharma products. I mean Graco is a major pharma product, okay, which goes into faster. Now with these current issues which happened in Indonesia, Iraq, where users from supply from India had I mean health issues of citizens of those countries. That is why all these regulations are correcting for India suppliers of casters and hence, there is a sluggish demand for this sector. On the other hand, our antiretrovirals, which is a DCC has almost peaked 80% of our plant utilization. So this is really only in particular to this particular product because of these cost of issues, which I'm sure you would have had in newspaper over the last few months.

Right. Do you think it's a permanent loss for this player or -- and somebody is getting replaced or you think these guys will come back because that -- if you read that new, that appears to be quite serious.

It is so, what Indian government is also doing is for those companies which we are making in North India, those few of those companies have been banked have been closed. But there are organized players in this business saline grander Gen X and other companies, which will, I think, get those market shares from those people. But of course, the customers sitting in overseas, saline Indonesia in Iraq and those parts will again need time and confidence to regain and come back to India. But definitely, they have to come back because of the price benefit that Indians can offer compared to a European or a Taiwanese.

So this recovery will be, I think, will be a slightly more back-ended than the destocking one. That will be a fair assumption, right?

Can you work in?

I'm telling the performance can recover earlier, probably Pharma segment may take a little bit more time for us? Will that be an assumption fair?

It depends on this particular note issue is little serious. So there is on it, but we are very hopeful that Performance Chemicals will arise back quickly compared to the pharma. But then we are also trying to get more share of overseas customers like mainly in Taiwan and in China. And we hope we will compensate for the loss of Indian customers, which we have accounted for.

Got it. Got it. The next on the health side of the business. We were expecting some revenue booking in the Q1. Can you give some color on the health side of revenue?

You see has. I mean it is taking a little longer because of the slower demand of master batches producers globally. So the approval processes are there. People have approved our product. We are getting repeat orders but to volumes. So if India was importing 3,000 tonnes, today, the imports have also gone down by more than 50%, have gone down, yes, have gone down. Hence, the demand has become slower, but we are quite optimistic that as and when people are trying our product, the volumes will gradually increase. I think today, we are at about 40, 50, less than 50% of our current capacity is what we are running. We hope in the next 2 quarters, we should electric 50% of our capacity utilization.

So next quarter, we expect to reach 50% capacity utilization...

Next 2 quarters.

Assuming by Q3 end of Q4, we should be taking a 100 metric right? We have put the...

For our new facility of HLS will also begin with other products lined up.

Okay. Fair enough. A couple of questions for Pratik. First, on the other income, it appears to have gone up again. Can you help us understand what's driving the other income?

Other income, there are 2 items. First is Forex where we have reported a INR 5.6 crore of gain this time and the other is treasury income has close to INR 6 crores gain. Apart from that, there is no nonrecurring item.

So this INR 6 crores is a recognition because of the completion of the period of the investment or it's on the mark-to-market basis?

Yes, it's mark-to-market. -- treasury investment is realized and unrealized gains both, Because what realized, Corrected during this quarter, from INR 750 to INR 710.

So that has led to some additional booking of the other income...

80% of our investments are into debt mutual funds. So as the yield is correct, we get mark-to-market benefit there.

Got it, Second question is on the operating costs. Can you help us bridge the operating cost from last quarter to this quarter? What are the line item, which is driving a 20% sequential drop in the other expenses? Because I think fuel costs have largely been stable is have normalized to [ preclevel ]. I know volumes have fallen, that will be one, but just more color will be for.

No, no. Sir, in fact, year-on-year, power and fuel cost has almost halved. So La...

Sequential...

Sequential...

Yes.

Yes. So sequentially -- I mean, Q4, we reported a power and fuel cost of close to INR 18 crores. This quarter, we have reported a P&F of close to INR 12 crores. That was a big impact, and in other expense, there is a small CSR expense, which that number was sizable during Q4 and not much bigger than Q1.

There is no change in the freight cost, I suppose...

Rate anyway is not a very big cost component.

Okay. Okay. But this explains only what, INR 6 crores and CSR on the few No, that clearly covers it. No, no, it covers it. Covers it, my back, It covers it. No, that's it from my side. Thanks, at foresees of for the coming quarter soon.

The next question is from the line of Ankur Periwal from Axis Capital.

Firstly, on the pricing bit, you did mention 1/3 revenue decline is led by pricing, and you did mention in the initial remarks that some bit of pricing correction may still happen. So are we largely done in terms of pricing correction? Or is it moving in sync with the RM prices?

Still moving in sync with the RM prices, but if I have to -- I mean, if I have to believe that I think the -- this is the worst price level we have seen in the history. So I do not see further erosion of prices. But unless there is again a sharp decline in RM prices, which at the moment are again on upward swing because of the increase in crude oil prices. So all the raw materials have again started inching up, so I feel the iron prices will -- the finished product prices should not go down further than this. my belief.

Sure, and the bigger issue here is inventory destocking only or there is a significant cut in demand as well, which probably can take slightly longer time to recover?

I think there is destocking and as well as there is a slower demand globally. So both are contributing to the volume reduction, and I think it will take a minimum of 1, maximum of 2 more quarters to get the business line impact on track.

Okay, and you did mention that we have not lost any market share in India globally. So it's more a market decline, which is where the impact is coming in.

Yes. This is to our understanding. I mean, maybe a little bit year on there, but not on major percentage levels.

Sure, sure. On the -- with this, given the demand slowdown and probably another maybe couple of quarters there, considering the CapEx that we had already planned for has as well as the other products, the INR 200 crores CapEx there. Any changes there? That is one. And secondly, on health specifically, we had launched only 2 products earlier. How do we see the new product launches going ahead? Will it be deferred or time lines...

Section 1, the CapEx plan is still on. There is no deviation from that plan that is point one. Point two, on HRS, the new range of product as planned will start in December, which are the other CV products. So the plan remains constant. There is no change in plan because of the change in demand scenario because these are market dynamics, things will move up and down. But our projections and our plans of projects will not be changed for this.

Sure. The earlier 2 products were largely focusing on the domestic market. The newer ones will be both export and domestic?

Yes. There will be both domestic and export. Again, first time in India.

That's right, Okay, Great. That's it from my side.

The next question is from the line of Rohit from Centrum Investments.

I just -- the first question I had was on the PDQ part. So there's another listed competitor in India, they are competitively larger than us. So what are our plans in terms of expanding that product do we plan to forward integrate into blends or anything? Or how are we going with that part of the market?

So currently, TBHQ is a decent market for us. We are not planning any expansion. And the major purpose of this TBHQ plant was to cater to the demand of our existing customers of BHA and EP. That is one, and number two, we have no intention in going into blends because those are B2C markets, and I don't see our company is equipped enough to even target the B2C market, and we would rather like to focus on B2B businesses.

Got it. Sir, and the hydrocodone, are we scaling domestically or from a -- from the international market or material?

Yes, we are sourcing hydrocodone from overseas market.

The next question is from the line of [ Nikhil Mishra from Five Star Investments ].

I just wanted to know about the Performance Chemicals business, how it is going and about the FMCG chemical business. How is the demand in the China and how it is going to impact our company.

So as I mentioned, Performance Chemicals, the -- I mean, I just mentioned that 2/3 of the volume -- I mean, the reduction in our revenue is because of volume. China is low at the moment and hence, we are seeing volumes de-growth, and on the SMCG Chemical, we have seen -- I mean, stability because I think the current markets are quite stable for FMCG Chemicals. But of course, since the RM prices have come down, so the prices of end products have also come down to that extent. But otherwise, those are these in stable businesses for us.

Okay. And have we lost any market client because of this scenario?

Because of which scenario...

Because of this demand scenario and slowdown say...

If there is a slowdown and if the customer does not need the material, then we cannot force and push the material. So to that extent, yes, we have a volume de-growth.

Okay. Can you please name the FMCG companies, which you are playing to?

We are not supplying -- we are not providing customer needs, please.

[Operator Instructions] The next question is from the line of Arun Prasath from Spark.

My first question is on the Geico situation you are hiring with respect to the cost setup. So wouldn't this be a problem for you in ramping up in MEHQ also because without the ability to dispose Glycol in the future, MH production and also is going to be difficult, right?

That is a valid point. But at the moment, since even MEHQ is on slower terms, so we are able to cater and manage both the products together. However, in the longer run, if you see that this is a permanent problem, we will look for other outlet of Glycol which goes into FMCG chemicals or think of manufacturing something ourselves, which can -- so where we can use our goal actively.

Right, right, Will it be very capital intensive? Or do you have a ready-made markets if you have to go for the Plan B?

So if we go for a plan B, one is the ready-made market, there is a market where we have to establish ourselves.

Right, but the time taken to execute this plan, will it be been weeks or months or years because until then, the growth in MH will also be difficult even if the end market turns or on right?

I think plan B -- I mean in Plan B also, we have 2 plants, plan B1 plan B2. So planned B1 will be quicker, and we to will take relatively longer time, sorry, you can call the land and plan then.

Sure. My second question is on. Now that you have run this plan for last 6 months and a reasonable understanding and everything. The costing is at par with what you envisaged during the project conceptualization stage. Is it better? Or how do you see that?

Now more or less I think what we have anticipated and what we are quite closer. Of course, only the deal is since we have to enter a market at a time when the demand is suppressed. So the customer expects a little bit more discount compared to what is available in the market. So I think only that is a little tricky situation, but otherwise, we are seeing -- I mean, the margins which we are anticipated are in line with what we are -- which we are seeing currently.

And do you think even at this current low price scenario, we will be able to -- you will be competitive and able to substitute the imports into the country as far as the domestic market is concerned. We have no choice for us. Okay. Now -- and I understand Jobs will you be making money similar to the levels of the current business?

No, in terms of margins? No. The plants are still running at 40%, 30% capacity utilization. My fixed cost still remains the same. So the AI ramp this up these capacities and when market prices may start getting prices equal to my competitor is when we will start making a decent amount of money...

Right, and the other part of this has interests you are integrated up to, say, a ton and ammonia and all. But Suberic acid is another raw material that you do have to consume. Any chance for you probably, say, 2 years, 3 years down the end where you can backward integrate in this as well? Or you always have to depend upon the purchase?

The Suberic acid, what you're talking about, right?

Yes.

No. So we are seriously contemplating on how -- because castor oil is easily all in India, it's a derivative of castor oil. So we are just trying to understand whether it makes sense to even make for our captive consumption. But right now, we are currently buying from the domestic or even import markets.

Okay. So that is an additional -- you will be able to capture the same margins if you are able to go back into that manufacture...

We're able to do further backward. I'm sure we will have a better competitive advantage over our competitors. Because to our understanding, no other producer of 770 is making Suberic acid himself.

Right, Understood, and lastly, on PPQ. We still see a lot of PBP getting imported into this country. So is it like a different segment or quality is different or we are not able to substitute or we have on that capacity? Can you just throw some light on this?

Yes. So there is a specific grade which is coming from U.K. which is -- I mean -- so the basic issue is the color of this product. We are still not there with the color, which is required for this particular customer. But I think in lab and pilot, we have understood what was going wrong, and now we are planning to start those -- I mean to procure those equipment where we can get the exact quality which was currently imported from overseas. So I think it is about a matter of time, say, probably about 3 months when I think we should be able to get similar quality which is imported into India.

And what is the current utilization in PPQ?

Sorry?

I was asking what is the current utilization...

It is quite low. It is about 20-odd percent. It is because of this particular factor that we need to improve the color of the product, which now we have realized and probably in the next 3 months, we will be able to restart our supplies to the customers who are looking for this absolute color -- I mean, to the yellow product color.

And does have to procure HQ from outside to manufacture BBQ, does it have any impact on this? Or is it irrespective of where you purchase, you can still manage to tinker in your R&D and deliver this to this potential customer.

So if you buy from decent sources of hydrocodone, I don't think there is any issue on that aspect.

The next question is from the line of Rohan Gupta from Nuvama.

Just one thing that our prudent basket is more dependent on China basically that we do the products which are first time in India, and probably China was one of the key manufacturers, in this current environment, do we see that China coming back and absolutely putting the realization gain much below probably on some of the approved costs also. Do we see that you threat or underlying threat in our business model right now as long as the Chinese manufacturers remain aggressive? Or do we see that whether new product development and the process that you follow the lean chemistry, we'll have an advantage even in the Chinese players in terms of the cost, then also our product acceptance will be there in the market even at higher prices?

So first of all, there is no higher price we have to match what is available in the market. So that becomes -- that is one issue. But secondly, if you see, looking at our Q1 numbers, that we have not anticipated any new Chinese player at the moment in our product segment, but of course, because the demand is lower in China and because ultimately, they are also dependent on Europe and U.S. and hence, to that tune, I think there is a volume de-growth. I think the volumes should come back to normalcy in Q3, Q4.

So if it just on the volume de-growth problem and not that Chinese players for producers dumping the material in the market. My question was that are we better in terms of cost curve than the Chinese player so that what we are hearing in many other products also that they are dumping the product and even willing to sell the product at a much lower cost of prices because of the government is focusing more on the manufacturing and they want to focus more on the GDP growth and also with respect to their cost structure, they may dump the product. So I just wanted to understand we follow a differentiated process, a different chemistry, -- does that give us some edge over the Chinese manufacturer where our cost of production is higher, lower them? Or since we follow the green chemistry, that's why the customer still will prefer our products even if it is a higher price. So that you already answered that we have to make the cost in the market. So there is no arbitrage opportunity there. But do we have a lower cost cut than the other manufacturers because of the process which you follow...

See some of the products, of course, because we have established over a long period of time, we feel we have a cost benefit because these are depreciated plants. These plants have been working. We are approved at majority of the locations. So of course, however, when we come to newer products like the HLA or the 770 where we are, we have to compete with the Chinese players as well in the market. And of course, if they dump product below the lower cost, and of course, it is going to be a difficult, not just for my industry but for any new start-up of that product to compete with established Chinese players. But of course, because of our in-house grown processes and products, we are able to still complete or get market share wherever we can.

The next question is from the line of Abhijit Akella from Kotak Securities.

The capacity utilization for our key products or maybe segment-wise which you might be able to just share where we are running at right now across the business?

So Performance Chemicals, the capacity utilization has kept to close to 60%. This is primarily because of addition of a capacity of 2,000 , which is running below the average utilization level. FMCG segment has done really well. It is running close to 70%, and pharma and agro is running close to 62%.

Got it, that's helpful. So it Was down by half. It's not as if there's been a major slippage in the other mainstay products, right, like MEHQ or BH, et cetera.

There has been a de-growth in MH BH also, but because it's a 2,000 capacity which we have added into Performance Chemicals, and that got commercial end during Q4, Q3, Q4. that is also weighing down.

Right, Sure. Understood, and the price erosion that you are seeing is basically like just weak demand and in that context, suppliers competing to sell out their material. Is that essentially the main reason, and so in that context, I mean, do you see it continuing for another 1 or 2 quarters? Or are we sort of near the bottom now?

I think it will extend for another quarter because I mean we are already in August. So we can see that gain even in this quarter. But hopefully, the market should rebound and things should start looking upward in quarter 3 and quarter 4 is the hope.

Got it, so I mean from a margin perspective, 2Q could be a little bit more subdued compared to what we've seen here in 1Q?

Bid, it will be very difficult to comment on margin perspective because this quarter also because the closing stock prices was much lower than our consumption prices. So there was a hit in that sense also on our margins. So it could be at par or could be better also from a margin perspective, and anyway, we are again commenting that at EBITDA margin, we are better by 200 bps compared on a year-on-year basis.

Right, Sure. Got it, and the demand outlook for the new house sees that you are going to launch by end of the year, the 15,000 tonnes, so by, say, CY '24, should we expect that things sort of move towards a little bit more of normalcy in terms of the demand scenario there?

Volume, I think, assuming we start the facility in Q4, we expect to resolve because it is first time this facility is installed, we look about 2 or 3 months will go into solving the TD issues and probably another quarter might go in customer validation because this will be an entirely new zone of business or new products, which will enter the Indian market. So about -- so I think Q2, H2 FY '25 is where we should start seeing revenues coming out of that facility.

Right. But I mean, the target of trying to fully use up all the capacity in maybe 3, 4 years, that is still a target we are working towards.

Absolutely.

The next question is from the line of [ Deepak Singh from Hexaware ]. There seems to be no response from the line of Mr. [ Deepak Singh ]. We'll move to the next question. The next question is from the line of [ Gopa Surya ] from Anand Rathi. There seems to be no response from the line of Mr. [ Surya ] either. The next question is from Dhruv Muchhal from HDFC Mutual Fund.

hypothetically, assuming this cap setup in the glycol issue companies for longer, probably the class car setup issue. I'm just wondering the demand for car syrup still remains, right? And if not from India, somebody else will be supplying. So the glycol demand effectively all should remain. So I'm just wondering, if not from -- not to India, is it will be -- how easy or difficult is it to export these like for somebody who is making profits outside?

So far, the best part is that we are approved with all the process, be it in China or be it in Taiwan. So there are basically 3 producers. I mean 3 country producers, India, Taiwan and China. We are approved with all the customers. So if India loses some of the market share, it will either go to these customers, and we are approved at both the locations. So if not from there, we will get this from outset. So hence, we feel that eventually that should come back and we should start seeing that growth again back in quiet good.

But exporting it is not very difficult. I mean you can -- probably there will be some freight cost element, they would want to source it cheaper but in the way...

Below 0.10.

[Operator Instructions] The next question is from the line of Ranjit from IIFL.

I have one question. This is Ranjit from [ investing ]. You mentioned that your volumes are 60%, 62%, 70% health de-production volumes that you have. So it has not gone to market, hasn't gone to inventory.

Yes. What we mentioned was there is a 20% drop in revenue. So 14% of that, which is 70% came because of decline in volume and balance came because of decline in realization...

[Operator Instructions] The next question is from the line of [indiscernible], [ Envision Investor ].

I just wanted to talk, where do you see your company in the 5 years in now on because I see that the utilization is low. Let me see what we anticipate in...

Please repeat your question. We are not able to hear you clearly.

I just wanted to know, where do you see our company a sense from now on because now I see that you capitalization is low. So what you anticipate in the future...

Utilizations are lower during this quarter because of -- and these are again temporary things. We don't see this as a challenge for a High outlook, and I mean the outlook remains like we are launching products where we have probably first-time manufacturers in India domestic market, and we have some advantage on the manufacturing process. So we are -- as we have always been mentioning, we are processed innovator, and we'll continue to do that.

[Operator Instructions] The next question is from [ Anil Kumar ], who is an individual investor.

So last time you had mentioned, I'm sorry, I have missed some part of the nation earlier. So last time, we had [ a mentha ] companies are destocking because of the pretty slower demand in Q1 and Q2. So do you foresee that it can be over by Q2 do you think it is going to follow, considering the fact that China is now opened up that we are also trying to dump their stocks which we had there and which they had earlier.

As of date, we are anticipating it could be 1 quarter. As mentioned, it could be up to 2 quarters, whether it's destocking or lower demand phenomena could play out probably Q2 or Q3, it could bottom out.

And the second has like the probably the revenue real -- guess on this half is will we start from Q4 of this year financing right Yes, so the other series of -- and how about the other series of the half in the segment on changing how it?

Yes. So the plan remains to import subsidiary. The revenue should start contributing from Q4 of this financial year.

The next question is from the line of [ Anthony Maheshwari ] from Mirabilis Investments.

Sir, I wanted to know about the second one of CapEx that you had mentioned about in the last quarter as well about the new performance chemicals. So could you talk a bit more about kind of products which would be maintained there? And like in given the sort of the demand. Just...

So we are specifying we are only mentioning the segments. We are not talking about the actual product name. So these are, again, in performance chemical intermediates for pharma and agro.

Okay. So like -- so there'll be -- it will be spread across the cone already into.

Okay. That's...

[Operator Instructions] The next question is from the line of [ Deepak ], who's an individual investor.

One. Can you hear me?

Yes, sir. Great.

So actually, I have a question regarding contract manufacturing opportunities. So since -- so I know in Europe and in China, many factories are closing out, at least in Europe, I know, and many of these customers are looking for manufacturing partners in India and other emerging countries, where the labor cost is not that much. So are you also looking for such opportunities? Or are you already working on them?

So our existing set of customers have some ideas. We are thinking on those lines, but nothing is concrete to discuss at this point of time.

That was the last question in queue. I would now like to hand the conference back to Mr. Siddharth Sikchi for closing comments.

So thank you all for taking time out to discuss the performance of the company for Q1 FY '24, and we look forward to meeting you all again once we present our Q2 FY '21 results. We'll then have a good one and take care and good evening. Thank you so much.

Thank you very much. On behalf of Clean Science & Technology Limited, that concludes this conference. Thank you for joining us. Ladies and gentlemen, you may now disconnect your lines.