Gulf Oil Lubricants India Limited (GULFOILLUB) Earnings Call Transcript & Summary

Thank you, Ayesha. Good evening, everyone. Hope this call finds you and your family in the best of health. From the management of Gulf Oil Lubricants India, we have Mr. Ravi Chawla, Managing Director and CEO; Mr. Manish Kumar Gangwal, CFO; and Mr. Vinayak Joshi, the Company Secretary. We thank the management for providing us the opportunity to host the call. I'll now hand over the call to the management for opening comments, post which we'll open the floor for Q&A. Over to you, sir.

Thanks, Mr. Jain. Good morning, good afternoon, and good evening to all of you who are on this call. First of all, let me hope that all of you are safe, and we wish you well in these unprecedented times. Well, I'd like to just give you an overview on quarter 1 to start with and then, of course, update you on what's happening on the ground currently, which is obviously a lot of you would be interested to know that also. So quarter 1, I think, April-June quarter for us, as we have seen, all of us, it's an extremely challenging one for the economy, the lubricants industry, as we saw demand really came to a grinding halt due to the obvious COVID-related lockdown in April. And of course, I must add here that in terms of our own operations and how we wanted to operate, safety was the first concern for all of us, our employees and all our related associates. And the market situation actually in April, where we saw complete shutdown, we still managed to do a little bit above 10% of our normal sale because of the essential services, the agri sector and some of the industries where we could supply. And we had always focused on getting the rhythm into our supply chain, opening up our plants in a few days. So that was April where actually it was close to complete lockdown, except this 10% odd plus sale, which we did. May, we again -- first half of May was quite subdued. And then we have seen that June, we have seen a significant uptick, and that is really across all segments. The first quarter, I would say, has been a very challenging quarter for us. We have done 17,500 KL versus last year's same quarter was around 29,500 KL, which is at 60% level. Of course, the shortfall is also due to massive drop in the factory fill, which was there last year, which is nearly 2,500 KL. So really, when we look at what has happened in this quarter, the market condition is obviously a challenge for everybody. And Manish will talk a bit more later about the ratios and the various segments. But one of the things we clearly saw is that with our rural distribution and our agri tie-ups, that was the first demand sensing which happened. And really happy to share that our agri products actually grew positively at an all-time highs in this quarter that really helped us. But as the quarter has panned out, we have seen other segments grow. And as I mentioned earlier, June was actually near normal, almost at pre-COVID level, we could say. And that's really been an excellent trend. And with Gulf really always being ahead of the market, we have tried to focus on the supply chain rhythm. We have looked at demand sensing in many ways. And as I mentioned, rural network, the independent workshop network, the agri support, we also saw that we were able to reach and distribute our products to where even competition did not -- were not able to reach. So we got a lot of accolades for that. And as the quarter panned out, as I mentioned, second half of May, we saw good recoveries happening, even some other segments started picking up. And June has come out with a tremendous, I would say, pre-COVID level kind of figure, which, to our surprise, also was a little bit of pleasant surprise, I would say. And this much needed surge that has come since June, which has seen significant pickup across all segments is really heartening. And when we look at what's happening in July, we're happy to share with you that July, actually, we have got a low-digit positive growth. And some of this demand is pent up, and some of it is obviously due to certain things we have taken past in terms of distribution. Our salespeople are highly motivated. And we also see that maybe some of the competition is cutting back on some of the resources, people, but we have kept our engines revving up. And really, this trend, which we see happening now right across, earlier it was agri, rural, industrial, but now every segment, including diesel engine oil has picked up in ending of June and July. Even our franchisee workshops across have picked up. Even I would say factory fill, which has really fallen, has started picking up in July. And I think this is really what has been happening. And another feature of our team and our performance has been that there have been a number of new business development initiatives, a few small OEMs, a few tie-ups with industrial customers. Also, we see a lot of new tie-ups with aggregators. So really a good quarter in terms of our satisfaction and what has been achieved. But definitely, the green shoots of demand are there and June and July really shows us that we are back, I would say. Of course, we would have to be cautious. We have to take care of the safety of people. We have to -- that is of paramount importance. And our strategy of having the resilience, having the resolve, reimagining how we want to get in and then getting ready for our return. I think this has really been the summary of the quarter and the last 2 months and we are also happy to see that the trend is continuing of demand, not only was earlier at COVID levels, but seeing it some growth, which came in July. So that's all I would like to talk about the opening remarks and hand over to Manish to talk about some of the other aspects of the business, which will be important to share. Manish?

Thank you, Ravi. Good afternoon, everyone, on the call, and hope everybody is safe. You must have noticed the numbers by now that, of course, it was a challenging quarter on overall numbers because of the complete washout of April and almost complete wash out. And of course, May was also, till the middle of month, was not good in terms of lockdowns easing out, et cetera. But since then, the things have started picking up. And as Ravi mentioned, we are happy to report INR 240 crores of top line, which is nearly 55%. And that's quite satisfying. At the same time, we have been able to manage many of our costs, and we have recalibrated most of our line items in terms of cost, considering the existing situation on the ground and pullback quite an initiatives on those lines and especially on the A&P side and many of the variable costs were lower. So on the whole, we could still deliver double-digit EBITDA for the quarter, which is, again, very satisfying, and it gives that -- the impression that, yes, we can optimize our cost and we can variabilize many of our costs if the situation demands. So that was good. On the balance sheet side, we have continued to remain net debt free, and we continue to remain cash positive. And working capital management has been very good. Just to highlight also the collections, which were down in the month of April and May, recovered sharply. And actually, in the month of June and continuing to July, we have -- we are back to pre-COVID levels in terms of our collections also. So that has also given us a lot of confidence that, yes, because collections are a precursor to the future demand. Because if the money is rotating, which means that there is a selling at the secondary level, and we are in a position to realize faster. So these all things have given us a lot of confidence, and we would be happy to take more questions from all of you. Thank you.

[Operator Instructions] The first question is from the line of [ Kunal Sanghvi from LemonTree Advisors. ]

Congratulations on June and July being pre-COVID levels. So my first question was in regards to the secondary market. Can you provide some color on how secondary market is behaving? And we see that primary sales for both the listed space is like significantly down. Is it a right assessment that the channel inventory in the secondary market is lower than last year, June? How should one read that?

Yes. So I think the -- obviously, with no sales happening in last week of March and then April, the channel was obviously waiting like us to open. And today 90% -- 95% of our retail is open. If you talk about secondary sales, per se, that is our B2C business. And we have a system called direct reach to what our distributors build. So both in urban India and rural India, we know exactly what they're we're selling. And I'm happy to share that whatever numbers that we have been doing, there has been a similar secondary sales happening from there. So it is not that they are -- and some pent-up demand was there in June and now July to stock up because people are a little concerned that what will happen in terms of if there's another 8-day, 10-day lockdown. So there is that, but there is no increase in stock as far as we have seen in the secondary thing, and there is a good sell-out. In fact, in some months, I would say, also the industry did take certain measures to make the offers quite simple. In April, May, June, the offer was quite rationalized. We did give some additional incentives to trade to push and that has, of course, not been withdrawn in July. So that is good for the industry. And this facilitated movement of goods, and I would say that secondaries have been in line with what we are selling in. And Manish, maybe you can add a little bit more than this at this point.

Yes. So basically, what we want to say is that the pipeline inventory has not increased. It is -- the secondary is -- in the B2C business, secondary is almost equal to the primary sales.

And in general, what would be the pipeline inventory for the number of days?

Usually, it is around 25 to 30 days.

And it remains at the same level today as well?

Yes, that's right.

Sure. And my second question was on Personal Mobility segment, like how that particular segment has been doing with the emergence of our own personal vehicles to make sure that we don't board into crowded places, how that particular segment is doing both in the OEM and the secondary market?

Yes. So you see -- if you take personal mobility, we are there with Bajaj in the franchisee workshops. And that the opening of the dealerships have, of course, been not very fast. But in June and July, these -- all the workshops have opened. So that's a positive sign. So that's picking up. In terms of our own motorcycle sales, June, we again went back very strongly, and July is even stronger. So there is -- and people, when you see the bike is remaining at home and it comes back to getting used, they would obviously go in for some sort of servicing. And a lot of people who are not using the bikes because now people don't want to have a shared mobility, they would like to take their own vehicle. And wherever possible, we are seeing that Gulf is very well placed. And rural was anyway doing well right from mid-May onwards. On the car segment, see, we don't have much share, but we have again seen a pickup in July. So that's where it is going towards the normal level. But as we clearly mentioned, quarter 1 was a lot of agricultural products. And in agriculture also -- when we say agriculture and rural, we are also selling motorcycles there. So typical rural distributor would sell both tractor oils and motorcycles. So I think it's getting back to normal, and we are quite pleasantly surprised in some of the numbers in June and July in these sectors. What was slower was the diesel engine oil, which is now picking up in July.

[Operator Instructions] The next question is from the line of Ronak Sarda from Systematix.

Congrats on decent performance. Sir, first question, on the demand side, if you can -- you highlighted rural has done well, and you also mentioned you have a very clear idea of what the stockists are also selling. So if you can just bifurcate this between, let's say, top 10 cities or beyond, or maybe rural and urban, how has that demand played out in, let's say, Q1 and now what has been seen in July? And a related question, again, what would be the product mix in B2B and B2C for Q1? And what are you seeing for July, if you can highlight how the change been?

So Ronak, I will cover the first part on rural. Manish will talk about the split, and Manish can add. My reading -- our reading right now is that when we saw the lockdown coming, we were expecting the -- obviously, agri was going to come in stronger. So we knew that's going to happen. Some of the OEMs also immediately wanted to start the -- because if you look at agricultural output, and you simply look at how much food we are consuming sitting in the cities, and everybody has a slight fear factor. So overstocking did happen. The agricultural coverage went up. So we knew that rural is going to be key. And the rural distribution piece, which we have started working 4 years back and 3 years back, and it's very systematic for us now. We had rural also earlier, that has really gone up. And I would say that supposing we were getting 10% to 15%, 20% from rural for the channel sales, that actually doubled for us in this period. So rural played a bigger role and of course, now it's coming down to the normal level because July, the season of rural tapers off because agri season -- the next season is going to come in September. So we have seen that clear sensing of demand in rural. And urban, you see the larger cities, we don't have that higher market share, which we probably have in some of the other cities, but we do have share in some of the cities. Those have been locked down slightly more, you know that. Pune, for example, just to give you an example, even Bombay, there are other cities also. So there, definitely, the markets have not opened up. And for us, it's a blend of both. And I think segment-wise, we are seeing that now motorcycle is also back. And if you talk about franchisee workshops, the commercial vehicle workshops, which we have, have really done well in July to our surprise. We were not expecting a pickup in July. June, there was some pickup. But other we have tie-ups Piaggio and all, we still want to see the full opening up. There are certain cities closed down, the three-wheelers, commercial vehicle still has to take up. And this is really segment-wise. Manish, you want to add?

Yes, so due to agriculture, the diesel engine oil was roughly 42% in this quarter, led by agri, of course, and some commercial vehicles. Personal mobility was around 20%, which is usually around 22%, to anything around 24% of our product mix because obviously, the urban side was still opening up slowly. And then industrial was around 15% and others, gear oil, greases, et cetera, were around 23%.

Okay. This is for Q1, right, Manish?

This is for Q1, yes.

Yes. Okay. So I think just a follow-up here. I mean, when you say urban cities were locked down, so that's what I want to exactly understand. So let's say Q1 would have been like the 65%, 70% decline or even more, but are we seeing that decline almost reducing by half in July and some bit of August? So I just wanted to understand the trend in urban, how opening up of these larger cities has played out on the demand side?

Manish?

So should definitely, as Ravi mentioned, things were very good in June and we were near to pre-COVID levels. And of course, as Ravi mentioned in his opening remarks, July, on an overall basis, is actually a low single-digit growth over last year, July. So...

And that is true for urban and rural. That's what I want to understand. Is this true for urban and rural as well?

It's difficult to give an exact track of which one has grown, but definitely, rural has grown more. And because of, of course -- but July, as we start, the agriculture season is over in terms of lubricant demand because this is a monsoon season. And typically, July to September is a lowest consumption month for lubricants. But in spite of that and in spite of the external conditions, we have done come back in July, which is giving us a lot of confidence that, yes, going forward, the things should be even better.

Okay. And Manish, question for you. I mean, gross margin, if I see, has taken a knock. Is this purely because diesel engine oil has contributed more and PCU has -- personal mobility has come down or is there some other factors, the base oil price? Because I think commodity has been largely benign?

So you are right. Two things have happened. As Ravi mentioned, again, there was some increase in the schemes for the quarter, quarter 1 because we wanted to revise the demand. So schemes were increased for the retail trade specifically. And that has been garnering some volumes there. And as we speak, from July onwards, those schemes have been rolled back. So that's a positive. And the product mix is the second point where if you sell more of agri, and obviously, the personal mobility and others are not to that extent. Plus, overall, the B2C was around 59%, which usually is around 63% -- 63% to 64% in other quarters -- earlier quarters, was 59% overall versus -- and B2B was 41%. So that also plays out on the overall realization. So the combination of both, I would say is that what we are seeing is 2%, 3% drop in gross margin.

Right. And finally, on the other expenses, Manish, cost control on the other expenses during the quarter, if you can highlight how much of this is structural or it won't come back once the volumes recover, let's say, this quarter or in the second half of the year? And how much do you think we'll have to, again, get back into the market in terms of advertisement and promotion expenses?

So other expenses, you are seeing that as a percentage, while it has remained similar, but in terms of absolute number, it is down by around INR 50 crores.

Right. Is it a very strong strict cost control here?

A large part of it, obviously, is because in these conditions, outside BTL activities for A&P were not happening. We have not done any major promotion events in this quarter, only some of the fixed expenses which are committed contracts were there. There also we have negotiated with them in terms of extending the contract terms and, et cetera. So overall, A&P was a big area where we could leverage. And that is a very variable thing. As the things start picking up, we can quickly ramp it up depending on market needs. So while -- if we see the visibility on the top line side, we will not continue to cut back on A&P. If the situation is improving, we will definitely like to keep investing in the brand going forward, but that's a variable position depending on market sensing and how the overall industry is doing. Plus, there were other expenses which were -- one of the components was in other expenses, OEM royalties. So as sales were low for OEM products, the royalty was lower. Even the Mauritius parent company royalty has been lower in line with the lower volumes and lower sales and margins. So overall, I think travel was not there. So we could save around significant numbers on travel as well. So I think around the -- across all, each line item, we have been able to do it, and that's a very, very positive sign for the business.

The next question is from the line of from Tanay Gabhawala from Emkay Global.

I have got 2 questions. Firstly, could you shed some light on the industry growth for lubricants vis-à-vis our degrowth in Q1? Basically, I'm just trying to understand, you said that we would maintain about 2 to 3x over and above what industry would be growing at? And secondly, seeing the 40% Y-o-Y decline in volumes, could you share some estimates for the next quarter and going forward for the rest of the year?

Manish, you want to take it?

Yes. So you see very difficult to say how industry would have done it because we all know that April was in complete washout for the entire industry. There are no published numbers for this industry, first of all. So you don't get monthly numbers like you get for automobile, et cetera. And it is everybody's estimate, best estimate. So very difficult to say, yes, industry definitely has degrown in line or in more than what we have delivered, certainly. And our supply chain has been one of the key highlights in this quarter, which we would like to also highlight to all of you that, that led us to gain market share again in these times, because we could cater to demands which were because of very good supply chain network, we could open our plants in time and our warehouses are owned by our own team. So that also helped us to take those actions in supply chain, which helped overall gaining, definitely, again, a market share in these times, but to quantify would be very difficult in these times. But overall, our trajectory of 2 to 3 years growth remains, and we are all quite committed for that.

Just to add to what Manish is saying, we have our own internal estimates of tracking various segments, which we added. And as Manish said, we have clearly seen that our advantage, our supply chain and our brand and distribution strengths and our customer, I would say, a big deal is also the passion of the team, we are continuing to grow 2 to 3x the industry and ahead of some of the key competitors. That's our estimate. At least even during this time, we were definitely looking at what others are looking. And Manish also mentioned to you, our supply chain efficiencies also helped us to gain many customers. In fact, I would say that during this COVID time, what is one of the most satisfying things for our team is that we have been actually able to get a number of new customers who are looking to be with us. And I would say at this time when everybody is -- most of people are working from home, they have looked at proposals. We are seeing some building blocks coming in and continue to grow ahead of competition and the industry growth.

So just for the benefit of everybody, we have at least got quite a number of appreciation letters from our customers and key OEM partners about the kind of services we have given in these tough times to them and to their dealerships and to our end customers in many other industries. So we have got, in fact, written letters of appreciation from many of them.

That's great. If you don't mind, one quick bookkeeping question. Could you give us a breakup between automotive and nonautomotive volumes?

So what we give usually is B2C, B2B. And as I mentioned earlier in one answer that it is 59% in this quarter, B2C, which is lower than our usual 63%, 64% and B2B was 41% in this quarter. Although, this is not a product mix, we are -- because usually, our automotive-grade of products are around 85%, 90%, and industrial grades are around 10% to 15% in terms of product classification, but this is more route to market, which we shared usually.

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

Congrats, first of all, for posting satisfying Q1 numbers during such challenging times. My question to you is, do you have any plan to go for lithium-ion batteries for electric vehicles, specifically for two-wheelers as electric vehicles is developing to be a sunrise sector and two-wheelers in percentage terms are 39% of the total number of vehicles on Indian roads?

So I think we are -- as most of you will know, we are already into the VRLA batteries for two-wheelers. So currently, electric vehicles penetration and the battery challenges are there in terms of cost. So I don't think we are seeing any replacement requirement at the moment for this type of battery. But our focus is more on the VRLA technology now. And as a brand, we are known to the motorcycle, buyer as -- for our lubricants and now for our battery. So at the moment, I would say that it is -- still we feel that the EV penetration is going to take a long time for the demand to come for this kind of battery. And many challenges to see how this can be panning out. And though there are a lot of announcements that it will happen, the replacement of market for this battery will take a long, long time to come. Manish, you want to add?

So I would just like to also highlight that during the last 3 months, our two-wheeler batteries have done exceedingly well. And in fact, YTD July, they are up 30% over last year in these tough times also, which, again, proves the point that our -- directionally, our venturing into two-wheeler battery and the pickup and the confidence of the customer in our brand is very strong.

[Operator Instructions] The next question is from the line of Prayesh Jain from Yes Securities..

Sir, just wanted to check on the data. So, could you share some data on the batteries business for the quarter?

Sorry? Prayesh, your voice was weak.

Can you hear me now?

Yes. Yes, better.

Yes. Could you share some data on the batteries business? And what are the plans that you have for the future of this business now?

So as I mentioned, we have grown YTD July, roughly 30% over last year same period in terms of volume, and that's very encouraging. And as regards localization of the production, we are looking at all options, as we mentioned in the earlier calls, including putting up a greenfield plant or also to buy out some existing plants so that we can do a quick turnaround in terms of starting the local production. But nothing concrete has been decided as of now. And as soon as we finalize something, definitely, we'll let you all know. But the total CapEx around this is not envisaged to be more than, I would say, around INR 70 crores to INR 80 crores, if we put up a greenfield. And if we acquire, it will be even much less.

Okay. And sir, has been -- has it been difficult to source base oil in this current lockdown?

No. So there was challenge more on the logistics side of it, earlier when some of the Korean side and ports, we are not working to the full efficiency. And even Indian ports had some congestion. But nothing which disturbs the overall cycle of base oil as of now. We could get sufficient supplies.

Okay. Okay. And lastly, it's more of a slightly medium-term demand question for personal mobility. While there -- Mr. Ravi rightly said that people would prefer personal mobility over public transport. But then there is a counter to that, that a lot of people are also working from home. So how do you see the demand for the personal mobility shaping up for the rest of the fiscal and beyond?

So it's an interesting question. See, work from home is there now. As you see, now people are moving out, unlocking is happening. Definitely, we see that shared mobility, people would prefer to have a bike and even you see now some of the car and entry car level and the -- definitely, the bike dealerships we talked to, they're looking at a positive purchase of new bikes, and that is one thing which is there. Just on the other side, we must tell you, we also supply oil to Zomato people who are delivering these things. So there is going to be an overall, I think, increase in personal mobility. I think that India penetration levels are very low. So I would only look at it as an opportunity. I cannot really foresee and tell you at this stage, whether there will be a massive shift and people would like to look at it. And I don't think people are going to be sitting work from home the way Indian work happens. As soon as we find it safe, there will be people out there. Of course, there's a challenge with public transportation and all, but I see that overall penetration of vehicle usage will grow, both for cars and bikes.

[Operator Instructions] The next question is from the line of [Ritish Rangwalla] from NRC.

Just wanted to ask, it's creditable with the way you've grown your market share from around 2% to around 7% currently. Just wanted to understand, but Castrol being currently the leader with a good 20%, 22% market share. What are the areas or specifically, the segments that you believe that they are leading in vis-à-vis Gulf? And what are the areas that you're planning to target going forward over the next 2, 3 years to further narrow this gap with Castrol?

Well, consistently, over the last decade, we have looked at the segments where we think we can win. And motorcycle is one example, then there is tractor oil, then there is a diesel engine where we want to do both for Ashok Leyland, Tata and other vehicles. So every segment, B2C and B2B, we have looked at where we can win. And our focus is as a value plus player and obviously look at us also getting to the premium area. Now as we look at competition, different people in the different industry occupy different places. And we really don't want to target anything, but we've seen that there is a scope to grow in every focus segment which we have taken, which we still believe that is for us and it's happening. So whether it is the motorcycle or it is tractor or it is diesel engine oil, we see that also growing, and industrial, where other competitors are strong from the one you named. And we also see that one of the segments where we have not been able to get that much growth has been the passenger car motor oil. So there, we are very happy to see that we are doing very well even till February and now also we see a pick up. There, the growth rates are much higher than the 12%, 13%, which we talk of the overall volume we do every year. And I must also share with you at this time that our global parent company, Gulf Oil International, they are actually -- we are an iconic brand and they give us brand and technical support, as you all know. We have just announced a couple of weeks back, a multiyear strategic partnership with McLaren for Formula One racing. You may have seen it. It's the most iconic brands, Gulf and McLaren, in fact, go a long way in history in certain pockets of the world where motor racing is really one of the big sports. Gulf is an iconic brand. McLaren is an Iconic brand. So things like tying up with McLaren Automotive, tying up with the imagery and the Formula One, our logo is now on the beautiful McLaren car. And this partnership, we believe, can also help us directly with the passenger car motor segment, which we think we can also use the platform and bring experiences to the motorcycle and the car enthusiasts. So this is one segment where we have a gap. But I think overall, our bazaar market share, we estimate is about 7.5% to 8% in certain segments like motorcycle and diesel engine oils for trucks. We believe it is closer to the double digit figure. So we are trying to grow in these segments. And we believe that there's also good scope because as people look at Gulf as a value plus and a brand which is in the reckoning. I also shared last time, I think, in the call that in our internal brand track, we have now emerged as the #2 brand in India overall across private sector and public sector brands. We were at #3. So obviously, we know the #1 because it's a huge investments for more than 100 years plus even longer. So Gulf is moving up as a brand in terms of brand awareness, top of mind, brand consideration. So really for us, I think, the scope to grow in personal mobility is high. Manish mentioned to you, the competitors, the leaders would have at least a 40% plus in that segment. We are at 22%, 23% in personal mobility, which is mainly cars and bikes.

I would just like to add here, again that, as Ravi mentioned, the brand recall is very high now, and it has grown over the years. And in line with that, we have been growing our distribution also, but there is a lot of scope to grow still in the distribution to increase the depth and width of distribution. And that's where we believe that the gaining of market share can continue because in compared to the overall size of the market in terms of distribution numbers plus the market leaders, we are still at 75,000 retail outlets. And there is a huge scope to continue to increase our distribution and in that way, of course, the overall market share.

Sure. Sure. Just a follow-up, sir, in the passenger vehicle segment, as you mentioned that this is one area which you would like to grow in. But just from the overall, the segment per se, is this one segment that is growing faster than two-wheeler or a tractor consumption at the industry level?

No. No. So you see industry, we obviously say that 2%, 3% growth happens in a normal year because the oils have got better and others. Now in the replacement market, generally the motorcycles and car segment is growing. And of course, the factory fill is related to whatever new vehicles are made and sold. So if you take the replacement market, certainly, as penetration goes up, there have been challenges in the economy now and, of course, with COVID. But as a long-term, there will be growth in both motorcycle and cars as we see it in the Indian environment for years to come.

[Operator Instructions] As there are no further questions, I would now like to hand the conference over to the management for closing comments.

Thank you so much. I would like to say in closing remarks that the positive confidence that the team has in terms of the what the quarter, the achievements, a very, very challenging quarter. And happy to share that we have been seeing a lot of the green shoots, externally and internally, really getting momentum, especially June and July. We are also a sponsor of the IPL team, Chennai Super Kings. So I must add here that as we all are expecting the IPL to start and obviously, that is going to lift all our spirits in terms of being at home. And similarly, we are seeing the green shoots of demand and the Gulf team is extremely charged up. Batteries did well, but I can tell you there's a lot of charge-off in the team. We have taken very good care of our people and our far associates. And I think that our partners and I think this is really adding to the passion that the team has. We hope we can gain with the momentum behind us. And anyway, we have plans to improve our market share, gain market share. And we hope that the services we provide to our customers gives us a good edge. We've described some of it. And we assure all the investors that, both in terms of energy and our strategies, evolving our strategies further to look at the new way forward. We are confident that we'll be able to take the performance as we've all built out. Thank you so much.