Ion Exchange (India) Limited (500214) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Ion Exchange (India) Limited Q1 FY '21 Earnings Conference Call. [Operator Instructions] I now hand the conference over to Mr. Anuj Sonpal from Valorem Advisors. Thank you, and over to you, Mr. Sonpal.

Thank you, Dipesh. Good afternoon, everyone, and a warm welcome to you all. My name is Anuj Sonpal from Valorem Advisors. We represent the Investor Relations of Ion Exchange (India) Limited. On behalf of the company, I would like to thank you all for participating in the company's earnings conference call for the first quarter of financial year 2021. Before we begin, I would like to mention a short cautionary statement. Some of the statements made in today's earnings conference call may be forward-looking in nature. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ from those anticipated. Such statements are based on management's beliefs as well as assumptions made by and information currently available to management. Audiences are cautioned not to place any undue reliance on these forward-looking statements in making any investment decisions. The purpose of today's earnings conference call is purely to educate and bring awareness about the company's fundamental business and financial quarter under review. I would now like to introduce you to the management participating with us in today's earnings call. We have with us Mr. Aankur Patni, Executive Director; Mr. N. M. Ranadive, Executive Vice President of Finance; Mr. Vasant Naik, Senior Vice President of Finance; and Mr. Milind Puranik, Company Secretary. Without much delay, I request Mr. Vasant Naik to give his opening remarks. Thank you, and over to you, sir.

Yes. Good afternoon, everybody. It is a pleasure to welcome you to the earnings conference call for the first quarter of 2021. First, let me take you through the first quarter financial performance of our company on a consolidated basis. The operating income for the quarter was INR 2,653 million, which was a reduction of approximately 17% on a year-on-year basis. Operating EBITDA reported was INR 313 million, which was an increase of about 35% on a year-on-year basis. And the operating EBITDA margin percentage stood at 11.8%, which is an improvement of almost 4.57 -- 457 basis points year-on-year. Net profit after tax reported was INR 175 million, which was a growth of 32% on a year-on-year basis. PAT margin percentages were 6.6%, an improvement of 246 basis points on a year-on-year basis. The operations in the first quarter of the current financial year 2021 were affected due to the COVID-19 pandemic and the resultant lockdown in several geographies, including India for a major part of the quarter. Currently, all our manufacturing facilities and offices at most of the locations are functional to a substantial extent. Overheads are lower due to reduced level of operations coupled with cost control measures. I will now take you through the quarterly segmental performance on a consolidated basis. In the Engineering division, the turnover was INR 1,702 million as against INR 1,871 million for the corresponding period last year, a decline of 9%. The EBIT was INR 111 million as against last year's INR 116 million, a decrease of 4%. Revenue recognition for the Sri Lanka project in the quarter was affected due to the COVID-19 lockdown impact. Post receipt of necessary permissions from the Sri Lanka government, we have resumed our supplies and civil works. The order intake for the quarter continued to be muted due to the general economic slowdown and the delay in order finalizations caused by the lockdown. In the Chemicals division, the revenue recorded was INR 827 million as against INR 1,196 million for the corresponding period last year, a decline of 31% on a year-on-year basis. The reported EBIT for this segment was INR 178 million as against INR 163 million, an increase of 9%. Sales and dispatches were affected due to the operational and logistic challenges caused by the COVID-19-induced lockdown. The margins improved due to the operational efficiencies, favorable price movements and benefits on account of the changed product mix. In the Consumer Products division, the turnover for the quarter was reported at INR 200 million as compared to INR 274 million in the corresponding quarter of the previous year. Loss for the quarter was INR 8 million as against INR 19 million for the first quarter of the previous year. Yet again, in this segment, the adverse impact of the COVID-19 lockdown significantly affected the volumes of this segment. I now open the floor for the question-and-answer question.

[Operator Instructions] First question comes from the line of Ajay Sharma.

I just had a few broad questions about the industry first. What's the distribution of your clients across the industries? Who are your end users? Where are they from? Hello?

Ajay, it's a broad question as you've warned us in advance. Our customer base is quite wide, industries across the very large core sector industries, medium, small scale as well as communities and homes. So we work right across the entire spectrum of customers. And this is not just in India, but globally.

But do you think you could give me the rough proportions of which industry they're from? Are they from the power sector? Maybe 15% from the power sector, 10% from the food processing. Do you have those details with you?

No, Ajay, we do not give that breakup, unfortunately. But basically, I can give you a sense of how the industry works. The heavy sector, which is the core sector, the individual contracts tend to be much larger. They are also one of the larger consumers of water per se. And the medium or small segment of industries, the individual contract sizes tend to be smaller, but the number of contracts, obviously, tends to be much larger. In terms of overall sizes, distribution between heavy, medium and the light community within segments, they tend to be somewhat equal. And if you go from year-to-year, if you look at the trends for year-to-year, there will be slight variations, which is dependent upon specific contracts, which might be there in that particular year. Otherwise, they roughly tend to be somewhat equal.

Okay. Okay. That's very helpful. And how does the bid pipeline look like now because of the COVID lockdown and all this stuff?

The bid pipeline is pretty good. The order finalizations have not been at a pace which is normal. The customers are taking a bit longer to conclude the order finalizations. But overall, bid pipeline has improved compared to what it was at the end of March.

Okay. Okay. And my last question is with respect to your membrane plant, what actually happens in the plant? Are you just assembling the membranes or do you also manufacture the plastic filtration mesh?

No, we are manufacturing the membrane sheets, and we are also rolling the membranes.

Okay. And who are the end users for these, like are membranes going to go in-house systems or industrial systems?

Yes. It goes both to the industrial and the smaller, lighter segment, which includes the household equipments.

Next question is from the line of [ Sidharth Malhotra ]. He's an individual investor.

I'll limit my question to one being respectful for the other participants in the line, firstly. So my question is, by March '21, do you anticipate your revenue to come back to pre-COVID levels?

We are quite hopeful that we would be able to recover some of the top line losses by the end of March, but we will keep our fingers crossed to hope that we do not see any further economic shocks during the intermittent period.

Next question comes from the line of Deepak Poddar from Sapphire Capital.

Sir, pre-COVID, this year, we have been talking about 15%, 20% kind of revenue growth. So now with the COVID, sir, how has this been changed?

As I just said, we have -- as would be evident from the first quarter numbers, which have been released, we have lost some of the top line during this quarter. And I'm quite hopeful that we will recover that loss by the end of year. And hopefully, we'll have something to show in growth. But as the year is progressing, it is a trend that we are continuously monitoring to ensure that this growth does happen. And it would be a function of how the overall economy behaves, both domestically and to some extent on the global economy.

So a single digit kind of a growth would be a more fairer thing that one can expect this year, right?

I think given the current situation, as I said, very difficult to give you an exact kind of an estimate. I wouldn't say that limitation to single digit is the best way to forecast it. I think it's quite uncertain. It can go really well. We could see slightly better than that. And if things face any hiccups in the market, we could go into a flattish kind of numbers. So the prudent thing to say is that if we get back to recovering the entire amount of loss turnover, that should be the first milestone to achieve.

Next question comes from the line of [ Indrajit Chakraborty ]. He is an individual investor.

For the last 2, 3 conference calls, we have been hearing about the company winning a huge order like the Sri Lankan order. So can you please throw some light as to if there has been any developments in that regard?

We have still not been able to conclude any of orders, which are in the same price category as Sri Lanka. And per se, I think we have tried to be prudent and we've not really ventured out to make a statement that we are going to win or we are about to win. Yes, there are many discussions currently on and we are hopeful that we would be able to convert a few of those. Timelines is in such large orders is always uncertain because of last-minute clearances, documentations, approvals and all the other steps and procedures that these contracts need to go through. As I said, we have still not been able to conclude anything, but there has been some movement -- some positive movement.

[Operator Instructions] Next we have [ Avnish Thakkar ] from -- he's an individual investor.

So first, a couple of housekeeping questions. If you could just confirm the order inflow, order book pipeline and Sri Lanka order execution for this quarter, please?

Current order backlog is INR 642 crores. Order inflow was INR 77 crores. The current backlog doesn't include the Sri Lanka thing. And in the first quarter, we have executed invoicing worth INR 83.62 crores in Sri Lanka.

And pipeline?

Come again?

Pipeline. So last quarter pipeline, you indicated approximately INR 4,000 crores, which has gone down a bit.

That stands at INR 4,000 crores.

You mentioned -- okay. And second question is on the consumer business. So the trend, obviously, looks very encouraging. Even though the revenue is down, you seem to be pulling back some profits. Is there some light you can share on -- is this a one-off? Or do we think now we are turning the corner on the consumer business, please?

This quarter was quite an abnormal quarter, if -- I mean, as all of this that we realized. Overall level of operation and the ability to reach out to consumers was severely restricted. And this was particularly true for the Consumer Products division, which relies quite heavily on face-to-face consumer contact. Therefore, we suffered quite a bit during the first 2 months of the quarter. We also -- so that explains some of the dip in the revenue that we've seen. But consequent to the overall prospects of this particular segment, we have taken a lot of initiatives to cut down costs and to ensure that the segment does not become a big drag on the other 2 segments of the company. They had yielded quite a lot of benefits in terms of bringing the bottom line of this segment to the level, which is sustainable and acceptable. Some of these costs would come back in the coming quarters. However, I'm quite certain that a lot of efficiency improvements that we have seen during this quarter are sustainable, and we will continue to see slightly improved bottom line numbers.

Next question is from the line of Kunal Shah from Carnelian Capital.

A lot of things were not audible, so pardon me if I ask a repeat question. Sir, I mean, in the first place, congratulations for a good set of numbers, not only in this particular quarter, but in the last few years as well the results have been quite impressive. So, sir, on a broad parameter, if you would kind of explain how you have been able to achieve this? And what is like your 3-year kind of vision for the company, where do you see in, say, 3 years? That is the first part of the question. The second part of the question was like we have managed working capital really efficiently all throughout these years, while we have been growing and our EBITDA margins have been increasing. So if you could help understand a little bit about working capital management as well.

The broad vision of the company is to retain its leadership position in the space of water and environment management and to do so in a profitable manner.

Excuse me, sir. I don't know, is this only me who is not able to hear it properly? Or -- if you could please be a little louder, sir?

Is this sounding better to you?

Yes, sir, a little better.

So the broad vision of the company is to be the leader in this business of environment and water management, and to do so in a profitable and ethical manner. So overall, the approach has been to ensure that the Engineering piece of business will continue to be a little bit prudent and not too adventurous in picking up riskier orders. And wherever, we are picking up large orders, we make sure that they do not have large risky or adverse implication to the overall balance sheet. Having said that, we are continuously striving to pick in more of these prudent orders so that the overall size of the Engineering business goes up and keeps trending at a good pace. The other part of it is to ensure that the broad-based, medium-sized and small-sized orders, which makes the overall business much, much more sustainable, and also the profitability profile of the smaller orders tends to be better. This we are doing not just in India, but we are also making sure that this approach is carried forth in all geographies where we are actively present. That would mean South Asia, Southeast Asia, Middle East and Africa. So that's as far as the Engineering piece is concerned. As far as Chemical piece is concerned, we would very much like to extend our portfolio of Chemicals in terms of what we are exporting and improve both the width and breadth of the penetration globally. We are getting very good traction in the international markets. The profitability profile or trend is also showing very good trends in the global markets, which we are quite sure that we will be able to sustain over the medium term at least. In the Indian market, also, we are trying to expand our product profile to keep picking up new adjacent product lines, which are profitable and which would be good additions to our product basket. And we also try to keep adjusting our focus areas away from those products, which have become commoditized or where we start to making lesser margins. On the Consumer segment, you would see that we have not really been doing great, and we do not want that to -- we do not want to shut that part of business, and that's been quite dearer and integral to our overall approach to total water management, where we want to be present in all segments of the market, and we also want to make sure that our technical abilities are used to help the -- to serve the needs of consumers at all levels. So having said this, we are evolving ourselves in terms of our product profile and the way we reach out to those segments of the markets, which are not adequately serviced, so that our volumes as well as the margin profile keep improving. Overall, I think we should see reasonably good growth, sustainable growth and profitable growth over this period of 3 years that you spoke about.

Okay. Okay. And if you could just sort of help understand how does the business work and how we have been able to manage our working capital so efficiently all throughout these years, managing the growth as well. I mean if we just take -- probably broadly cover that particular aspect as well. I mean you've covered the business thought process that you have when you look for different business verticals and geographies, domestic exports, this particular piece, probably you would want to share something, sir?

It's -- we always strive to make sure that our approach to business does not put the business or the balance sheet of respective segment at risk, and therefore, try to make sure that the terms at which we are picking up the contracts and the way we are managing these contracts are as conservative as possible and minimize the risk which we take in all terms, including the working capital exposure that we are taking. So it's more to do with the overall philosophy with which we approach this business and as things go, we do hope that we will be able to maintain a lot of this prudent balance sheet management in the future as well.

Okay. Okay. And historically, sir, have you seen any bad debts written off or provisions been made in the last 3 to 5 years?

So the provisions as a part of -- the normal part of -- in the overall operations is quite -- has been done on a regular basis. And we, on a regular basis, assess the overall quality of our debtors and make sure that we are not carrying anything which is not adequately provided.

Next question comes from the line of [ Ayush Agarwal ] from Mittal Analytics.

I have one question on the expansion. I mean as we can see in this quarter that our EBITDA margins have risen because you may have taken some cost-cutting measures. Can we see this as a norm going ahead and will this play in our future operation trend when sales pick up again? And do you think these are permanent cost-cutting measures? And are these viable? And if they are, what kind of cost-cutting measures have you taken?

We have taken quite -- in some cases, quite aggressive measures for cost cutting. And some of the improvements, which you are seeing is also at a gross margin level. Efficiency improvements have also been dropping, and these efficiency improvements, I'm quite hopeful, will sustain themselves over a medium term. We've also seen some benefits coming in, especially in the Chemicals segment because of the way the prices have moved, both on the input side and in select cases on prices, which we've been able to command in the market. These -- I think, as we speak, they are being sustained either the bigger market variables, which can change in the short term also. However, I do not see that happening at least in the coming couple of quarters. In terms of the other cost-cutting measures, some of them would certainly sustain and some of them are a function of the overall reduction in the level of operations. As we return back to normal and the physical activities start climbing up, I would expect some of the costs to come back so we should be -- on those particular fronts, we should be seeing slightly increased numbers.

Okay. That was really helpful. And my second question would be, what is the unexecutable order book left in Sri Lanka?

So what you're asking is, what is the revenue still to be booked in Sri Lanka?

Yes, yes, yes.

Balance around Sri Lanka is close to INR 600-plus crores.

Sorry, I couldn't hear that.

Order book balance in Sri Lanka is close to INR 600-plus crores.

Okay. I think in Q3 also, we had around INR 600 crores of revenue to be booked from Sri Lanka and this quarter also, we booked some revenue around INR 84 crores. So are we sure about this number?

So first, we have booked close to INR 637 crores in -- up till last year and currently, we have booked INR 83 crores.

Next question is from the line of Sunil Kothari from Unique Investments.

Sir, one question is on this Sri Lanka order. So looking at the current situation and rightly, you mentioned in your opening remarks and north to our results also that now we got permission to do -- go ahead with the work. So what type of execution we are expecting from the Sri Lankan order in current year?

Current year, we are expecting a revenue of close to INR 400 crores from the Sri Lanka order.

Okay. Remaining 9 months? Or including this first quarter?

Including first quarter.

Okay. Great. And sir, regarding second is this Vedanta order. I understand you don't specify any major number related measure, but are those order -- Vedanta-related order is progressing well or any hiccup is there?

Vedanta, we had...

Sorry, sir, your voice is a little bit very low, please, if you can talk little louder, please?

On the Vedanta order, we have been continuously monitoring the situation. The pace at which the order is moving has slowed down over the last couple of quarters, but we are very hopeful that the pace will pick up again in the coming quarters.

Great. And sir, my last question is on Chemicals segment. This first quarter performance I understand is because of COVID and lockdown and everything. But overall, we were and we are very hopeful and confident about the growth of Chemicals segment. So any change in scenario, this China plus opportunity, which -- coming to India? Any longer or medium-term thought process on Chemicals segment?

Chemicals segment, we are seeing a good outlook. Our acceptance of our products both in Indian and international market is good. And we are seeing an uptick in -- at -- in this aspect globally. China situation has certainly given us an increased pace of acceptance in the global market. And it is also giving an opportunity to be able to realize the fair value of the products and services. So in -- we do expect that we will be seeing a sustained growth in this particular segment in the medium term and long term. As we had informed earlier, we continuously keep adding capacity in our chemical line, depending upon product-specific capacity utilizations. That process continues even in -- will continue even in the current year.

Right, sir. And sir, on membrane, I think we are one of the very few in the world who manufacture it from the base, every product and every raw material. So -- and we were expecting very good growth and markets within that segment. So any update on those segments?

The COVID situation has been a bit of an impediment in that growth process. And in the last quarter, the numbers have obviously not climbed to the extent that we would have wanted it to. But yet by the end of the year, we do expect the numbers to show a good improvement over whatever levels that we have achieved in the past. As I have mentioned earlier also, this particular projection of year-end situation is very much dependent upon how the overall economic situation progresses from herein.

[Operator Instructions] We have next question from the line of Kaushal Dedhia from Standard Chartered Bank.

Firstly, sir, congratulations for a resilient set of numbers given the COVID-19 pandemic. I just have a couple of questions on the large orders, sir. So I would want to understand when is the Sri Lanka and Vedanta project expected to conclude, like the contractual completion date?

We expect both of these to go into the next financial year. Neither the Sri Lankan order nor the Cairn order -- based on current trends, we would expect that we would be able to complete the invoices. But we are quite hopeful that it could get concluded in the next year.

Okay. And sir, on the order execution, Vedanta this quarter, if you could give any number?

This quarter, the numbers would be very negligible in Vedanta. It's been very slow in this particular quarter.

So has it been picked up since July, August?

No. As I mentioned earlier that for the last couple of quarters, the progress in the Vedanta order has been very slow. And in the coming quarters, we're hopeful that this pace will pick up.

[Operator Instructions] We have a question from the line of Ajay Sharma from Cycas Investment Advisors.

I just had another basic question about how the company reaches its customers. I understand that the larger customers the company sells to directly. But for the smaller customers, does the company go through middleman? And if so, how does the company market its products toward the end customers via the middleman?

I think this is a very...

Sorry, if I can just step in here. So the purpose of this earnings call is primarily the discussion of the current quarter's earnings. If you don't mind, can we touch base with you to give you a better understanding of the business slightly later on?

Sure. So I'll just...

We -- my name is Anuj Sonpal. We manage the Investor Relations at Valorem Advisors. I have your contact information from the con call. We'll contact you. If there's any questions with regards to the Q1 earnings, please go ahead and ask the management.

No, that's it. That's it.

Next we have [ Avnish Thakkar. ] He's an individual investor.

I just had a question on the Enviro Farms and whether the litigation is still ongoing. And if so, could you guide us on how to think about the risk that we may have as a company?

The issue is still ongoing. We are in appeal in Supreme Court, and we are well covered for the -- any probabilities.

Sir, the cover is provisioned? Or is it...

No provisions. They have the agricultural lands with them. Company has lands, which are owned by the company, which is much higher than the water liability can come. And we don't anticipate any liability to come.

[Operator Instructions] We have a question from the line of Sunil Kothari from Unique Investments.

Sir, just once again on this order inflow during first quarter, that number?

INR 77 crores excluding Sri Lanka.

INR 77 crores. Great. And sir, my larger question to Mr. Patni is, sir, last -- during last 1, 1.5 years, this China-related issue is creating opportunity for a country other than China. So are we seeing any major benefits of -- other than Chemicals segment I'm asking, like manufacturing, we are very strong in Engineering. So any benefits, any observation of yours that this can become a good or better opportunity for Ion Exchange also over a period?

This is, to an extent, subjective outlook and it could vary from company to company and from firm to firm. But broadly, in different market spaces, the sentiments of various customers, and I'm talking globally, it has not remained as positive as it used to be about China. That almost always has [ a robot ] in all businesses, including Engineering. And secondly, we are seeing some greenfield projects which are being talked about for implementation in India, which are a direct consequence of multinationals trying to broad base their production setup. And any such project opportunities in India would -- should have opportunity for Ion Exchange because almost all large projects would have significant requirement for water and wastewater treatment projects.

Next question comes from the line of [ Vinod Shah ] from [ Banas Finance ].

Yes. Sorry, I have joined the con call pretty late. Do pardon me for that. Just 2 questions. Number one, if you compare our sales with, likes of, let's say, VA Tech or Veolia or the other guys who are present in India and operate out of India. Now we have specifically, I think, 3 segments: the Consumer, the Chemicals and the Engineering part of it. In all 3 segments, how do we compare with the competition, if you can just get some sense on that? And secondly, if the moment we -- on every, let's say, every INR 100 incremental, what is the capital allocation policy that you normally follow?

So when it comes to competitive scenario on the Engineering segment...

Sir your voice is quite feeble.

I'm sorry. It's -- the network has been acting up today. Is it better now?

Yes, sir.

So if you look at the competitive scenario in the Engineering segment, the Indian market can broadly be looked at as being divided into 3 categories, which is to look at the government segment, the large industrial segment, and then would be the medium and small size of industry, which comprises of communities as well. We are not so active in the municipal segment, whereas we are much stronger in the industrial space. And that's the -- where we would develop the top participants in a competitive respect. In the small and community space, the number of organized and unorganized players is very large. And we tend to participate in that part of the market, which is conscious about the quality and the overall service level of the product and delivery. And therefore, I mean, that particular subset of the market, we tend to be pretty strong. Internationally...

if I can just interject you, I mean, our capability would be to go up to what level of desal or -- and we have all the adjoining technologies, be it RO, be it filtration, be it -- all the combined technologies, all of them, we have capabilities. And up to what MLD can we? So can we do a single project of, let's say, 100 MLD or 200 MLD or something like that?

So we have all the technologies which are relevant to address an opportunity. And in terms of the specifics that you're asking, that is that a detail, which we would like to share on the call per se. In terms of the other market segments that you spoke about, which is the Chemicals segment, we are certainly one of the few players in the Indian market to address the kind of opportunities in the large business segment. And in value-added products, we would be one of the market leaders in almost all product lines that we are active in. Internationally, the market share that we would have would vary from geography to geography. But on an overall level, that market share percentage would not be very large, it could be quite small. And in the Consumer segment, we -- while we are one of the pioneers in the industry in terms of introducing the various technologies, but in terms of the overall revenues which we generate, we are -- we do not hold a very large market share. And -- specifically in the home water RO, which you would know is dominated by players like Kent and Eureka. We address -- we try to focus on different subsets of the market and also look at products, which are differentiated from these other players. And in those subsets, as we speak, we are trying to ensure that we establish ourselves as the player to go to and also to ensure that we are able to build on volumes, not just in the Indian market, but progressively internationally. So that's the long and short of how we are competitively placed in the various segments.

Right. Sir, in the last segment, the Consumer segment, would it be fair to say that incrementally, given our fervor for introducing new products and also introducing the same in new geographies will lead to a more profitable growth in the near future?

Hopefully, yes. We are looking at introducing much more value-added products. And it is expected that the margin profile will improve.

Great. And coming to the -- my second question of how -- what is the capital allocation? How do you internally assess? And how do you all kind of reinvirogate (sic) [ reinvigorate ] or assign monies for growth internally?

Engineering segment tends to be working capital heavy, whereas the capital expenditures tend to go more towards the Chemicals segment, whereas you would see that the EBITDA and return on capital is much higher.

Next question comes from the line of Raunak from Valuequest Research.

Sir, I would just like to know how much part of the margins are sustainable, especially, the INR 11 crores -- if you look at your numbers, we have done around 11% margin. So how much of that is sustainable? And how much of that is nonsustainable?

Some part of the margin expansion, as we mentioned earlier, is a function of the extraordinary situation that presented itself in the first quarter and aggressive cost-cutting measures that were undertaken. But I would expect a good portion of that to sustain itself in the short and medium term. Very difficult to quantify the exact percentages, which we would be able to carry forward. But as I said, I'm hopeful that a substantial portion would be sustained.

Last question comes from the line of [ Sidharth Malhotra ]. He's an individual investor.

My question was with regards to COVID-19. How do you see the water treatment situation changing? I mean what does it mean to your business in light of the pandemic and the demands on water treatment and more fresh water?

As a direct outcome of the pandemic, the visible impact is in terms of the preference of the people who wash their hands more frequently. And certainly, there has been an uptick in the overall consumption of water towards this particular activity. On an industrial level or on a -- where we talk about consumption in large or small or medium industries, there's no real direct impact of the pandemic except to the extent of the variances in their operating levels. But differences would be more visible in the community, in the Consumer segment, wherein -- where the overall consumption of water has gone up and the sense of hygiene and sanitization has improved.

As there are no further questions in the queue, I now hand the conference over to Mr. N. M. Ranadive from Ion Exchange (India) Limited for closing comments. Over to you, sir.

Thank you all for participating in this earnings con call. I hope we have been able to answer your questions satisfactorily. If you have any further questions or would like to know more about the company, we will be happy to be of assistance. We are very thankful to all of our investors who stood by us and also had confidence in company's growth plan and focus. And with this, I wish everyone a great evening. Thank you.

Thank you. On behalf of Ion Exchange (India) Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you all.