Jain Irrigation Systems Limited (500219) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Jain Irrigation Systems Limited Q2 FY '21 Earnings Conference Call. We have with us today from the management, Mr. Anil Jain, Vice Chairman and Managing Director; and Mr. Atul Jain, Managing Director and CFO. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Anil Jain, Vice Chairman and Managing Director. Thank you, and over to you, sir. Mr. Jain, over to you.

My apologies for the connectivity issues. I hope now if everybody can hear me. I would like to wish everybody all the best for the current festive season and Happy Diwali. Good afternoon, and good evening to all the listeners and all the investors, the market participants who are on the call for Jain Irrigation. We announced the results for the September quarter. Typically, September quarter is the leanest quarter for the company, always historically speaking due to the continued rain during that period. This time, overall monsoon for the country has been good. But for some areas, the monsoon continued up to end October. So we are a little bit of a slow month of October in the current quarter as well because of continued rains, but we are already seeing good activity in month of November now. So we expect between now and month of May before the next monsoon, our company should register a good level of business, especially because rural India is comparatively doing well. And this good monsoon in most of the areas should be generating good cash flows, investable surplus with the farming community. Having said that, in terms of -- when we look at our overall business, in terms of the business numbers and metrics, this quarter, we registered INR 4 billion of revenue into current quarter, which is almost same as the last year same period. So that's a positive, right? Because in the first quarter compared to the June quarter, our sales were significantly lower compared to the last year's same period, but September quarter, we almost matched last year. Also, June quarter, this is stand-alone in their numbers for Jain Irrigation. We were close to a little bit less than INR 5 billion. And because also, we lost month of April due to lockdown and part of May. But we could do INR 4 billion or INR 400 crores in the current quarter. So overall, in terms of manufacturing trading, it's reasonably good performance, but not good enough because we have continued to lose money, and it's not at a break on level, which we hope we -- in December quarter, we try and reach there. When we look at underlying businesses in the current quarter, the Micro-Irrigation business was a positive revenue growth, almost mid-single digit, 4.4%. Our PVC pipe business in fact, almost doubled than the same period last year. We had negative growth in [ plastic ] pipes and some of the other products and divisions. So overall, we came out almost at the same level as last year. So 2 positives out of the current quarter revenue. One is Micro-Irrigation, and second is we were surprised that we had a positive revenue growth in the current quarter. When we look at overall for the first half, for the 6 months, because of significant lower business in the first quarter, we will have still in line about negative 27%, piping negative 25%, 26% like that. So overall, first half revenue is minus 29% compared to the same period last year. As I said, in the current quarter, we are same as last year. So we need to bridge this deficit of what happened in the first quarter due to lockdown and pandemic. And we're hopeful that month of November through March, should be good for the overall business. In terms of India business size going forward into the remainder of the big season, we have close to about INR 2,600 crores of orders for drip irrigation, the piping and all the businesses, including the projects. During this period, we are also now restarting completion of the pending projects. So company just from last September through this June, July, almost until August, we could not do much work in most of our project sites. First, due to liquidity issues as I said, then due to the pandemic and then due to the rain. But that is all past us now. And we are starting at various project sites to complete the projects faster. Because as we complete the projects faster going forward and complete the earlier milestone, then we will also start collecting our receivables in an effective manner, which will help company improve cash flow, generate the new revenue and business and a profit as well. When we look at profitability for the current quarter, in the way we calculate EBITDA, EBITDA is just nominally positive because of lower capacity utilization. And also during this quarter and earlier quarters, we have had some specific onetime expenses like cost related to restructuring of the debt or costs related to some of the unwinding of the projects we are bringing related to solar pump or cost of restarting of the projects, which is only one time. So some of these specific onetime additional cost, which have come, that has also impacted the bottom line. If it was not to be so in the current quarter, we would have seen at India level at least, almost double-digit lower EBITDA. So that's the positive news that in the current circumstances with a very low capacity utilization and all of the challenges we are facing, in one of the leanest quarter, we are able to go into double-digit EBITDA on a normalized operating basis. And we think as we move forward in the third and fourth quarter, we can look at improving that situation. While talking about EBITDA and earnings, one thing to note is that raw material, the polymers, those costs have come up. So let's just say February through May, there was significant reduction in prices of [indiscernible] or raw materials, which we use in our drip irrigation business and piping business. But since then, some of these costs have gone up because the oil has moved up and something like a PVC resin, there is a shortfall, structural shortfall. And it is expected that it will improve only in the fourth quarter or so. So next few months are going to be in that way dynamic in terms of the pricing of the raw materials and pricing of the finished goods. And we believe with our underlying business model, we should be able to pass on most of the increases to the marketplace as does the industry norm sort of output. When we look at our food business, which is a subsidiary, there, they had -- they continue to suffer because of the bad onion season last time where prices were quite high and availability also. And same thing happened in the recent mango season, the renewed impact of pandemic, whether on sourcing of mangoes because the material just couldn't come up to the market or even processing because labor was not available. This requires specialized labor. And most of the -- our factories are in western and southern India and most of the labor comes from northern parts of India and all of them have gone home. And therefore, availability of labor was limited. So we could run plants only at a very smaller capacity record. So that did impact that business. Now when we look at ultimately what's happening overall global basis, some of our overseas continue to do reasonably okay, considering, again, the pandemic scenario. And I think when I look at all our overseas subsidiaries revenue in the current quarter, it was about negative 9%, which was similar in the first quarter. So when I look at the first half business of all the it is approximately minus about 8%. So we have to keep in mind that this is a 6-month period, where we had a maximum impact due to pandemic lockdown. And as you know, our manufacturing, selling and trading activities -- trading and sales are almost in 100 companies, but manufacturing is in 12 or 13 countries. And every single country we operate, whether it's U.S., Mexico, Brazil, Spain, Italy, Turkey or China, we always had everywhere lockdown, severe pandemic scenario. But despite that, I think our local management and CEO, CFO and the entire people, all our associates have worked hard to keep business at the even keel, continue to maintain all the operations running, continue to engage with our customers, our lenders, all the stakeholders in all communities. And we have been able to continue to manage the business with our loss of revenue in single digits, which I think if I look at also vis-à-vis our competition, what's happening in the marketplace, they have been able to do quite good there in totality. So when I look at the consol revenue for the whole group assets, we did INR 12.6 billion in this quarter in terms of revenue. Last year, same period, we were at about INR 14 billion. So it's about -- when you look at overall everything, we are almost down by 9.8% in revenue. And if I look at now first half, what we have achieved total, we have achieved INR 2,655 crores. So that's about INR 26 million. Last year, that was about INR 33 million. So on a global consol level for the first 6 months, our overall revenue is 20% lower than the same period last year. So I think as we move along in the rest of the year, I think, we will be able to improvise on these figures and further reduce this deficit because the June quarter was a maximum impact, September quarter is a little bit less. And we expect -- assuming things remain where they are, and we hear, again, new lockdowns and new pandemic scenarios in Europe, parts of U.S. So one has to worry about that and plan for it. But as things stand, if things are remaining somewhat normal as it stands today, we should be able to improvise on this 20% reduction in revenue, which has taken place. So that's, again, I would say, is a positive news that we are heading in a right direction. The overall -- the EBITDA, I think, has remained on same, at the consolidated margin, I would say, is closer to a little bit less than 6% now, which is almost same level last year, also same quarter. But if you look at the first half, our margin of less than 6% is last year same period for the entire first half was 10% for the [Audio Gap] and the reason in this reduction is because, as I said, last year '19 -- FY '20 June, June '19 quarter, business, everything was normal. So since then, we got impacted with the liquidity issues and the recalls and so on. So again, there, things are improving as time is hopping by. Now when we did so much of revenue from the business, we have sort of x amount on the EBITDA, what does that mean to overall cash flow? So in the current quarter, September '20 quarter, when I look at concerned business global, we have generated about INR 31 crore or INR 300 million. [Audio Gap] came across, as net cash from the operating activities, post working capital change. So despite the lower level of production and all of the challenges we faced, in both this quarter as well as for the first 6 months, we have been able to manage to create positive cash from the operating activities of the business. Of course, after this positive generation of cash from operating activities, we have certain amount of CapEx, most of which is maintenance CapEx. And maintenance CapEx was hardly INR 23 crores this quarter on consol basis. As against last year, same period, INR 80 crores, so significantly down by 70% or so. And for the first half, for CapEx is hardly INR 57 crores, which was last year, INR 130 crores. So again, it's about 60% down approximately -- 50% down. So when you look at free cash flow, that is still negative post CapEx and post stemming for interest, et cetera, so that's another positive point that we have been able to manage and operate our plants to the extent we can with minimum maintenance CapEx, of course, almost no growth CapEx around the world. Companies trying to conserve the cash on that basis. But we have remained focused on wanting to ensure that we will have a positive cash generation from other operations. Part of that comes from the working capital, on which we have worked. And when you look at working capital, if I look at last September though this September, global consolidated, last year, end of September, our overall inventory on a global level was INR 25 million approximately, and it is now INR 22 million. So about a reduction by INR 3 million. [Technical Difficulties] We have reduced almost by INR 950 crores, which in dollar terms would mean approximately about $130 million, $140 million kind of reduction in inventory and receivables. So we will continue to work on further optimizing our working capital cycle by, I think we have still some room for improving on the inventory, and we have a little bit larger room to improve on the receivable, especially the receivables in India, where they have instructed the government. Even government receivables are coming down. But as I said, we need to complete some of these milestones of relevance and the state government finances needs to also come up. They had some issues due to pandemic. They were not getting their GST share, et cetera, and all the investors might be aware of those issues. I believe those are getting addressed now. And based on that, I think we will be able to ensure that we will further improve on these numbers in the December quarter, March quarter and so on. So that's also -- that's on the working capital. We have covered working capital and cash flow as well as underlying business. Overall, company has a good order book when we are talking of the total order book, which we have. And we think that all goes well for the remainder half of the current fiscal. And we will continue to prioritize orders where we have a faster cash generation, faster cash flow. That's the focus we have in the overall scenario. Now in terms of the debt, there is no significant change in the debt. There is a slight increase in the debt compared to the June quarter. But it was partly change of the nature of the banking facilities, which were earlier letter of credits, now they have become funded facilities. And so if it is a letter of credit, it becomes usually part of accounts payable, but now it's debt because it's a funded facility. So because of that reason, there is some increase in the overall debt compared to the June quarter. But now when we look at overall debt at consol level, it is close to INR 65 billion. And against this debt, company's net worth after all the losses are captured, say at about close to INR 32 billion as things stand. Now in terms of -- so this is overall in the debt. So good orders in hand for the remainder of the year, improving profitability, improving working capital cycles, but we are still operating at significantly reduced capacity. We need more support as we collect receivables. And as you know, into the going forward, that was going to help the company to improve on the first performance in the second half. This performance, which we are having now is in line with our expectations. So there's no surprises here. And this is in line with the resolution plan also, which we have submitted to the lenders. And that brings me to the discussion about the resolution plan. Resolution plan has been discussed...

Sir, sorry to interrupt, but your voice is, like, breaking up in between, sir, if you can be a little closer to the device, please?

Yes. Can you hear me now well? Hello.

Yes, sir, this is better. You may continue.

Okay. Sorry for that. So the resolution plan has been discussed upon and agreed with all the banks and all the lenders, the current lenders and the working capital lenders. It has been going through some of the kind of final shape, small revisions. In principle, things have been agreed upon. It is also increasingly the rating agency, which is the work, which has been going on for last month or 2. I believe based on the trade records we have from the lenders and everybody else, we expect definite positive resolution to that in the current quarter. And we are working closely with all the lenders to formulate a number of next steps so that the resolution plan can be implemented practically and appropriately in a most positive way as soon as possible. And this delay is creating some impact for us in the underlying business operations. But because the plan is effective last year, the cutoff date of the plan is June 19, the conclusion the plan did not change due to this delay. While it has some impact on our continued operations. And as they are improving, but this delay is unfortunate, but everybody is committed in a positive way to move forward on the resolution plan. So we are fairly confident that it will come through. And from company side, we have done everything, whatever it takes. And now we just going through the remainder of the process to get it completed in totality. So that's where is a resolution plan, that's where is sits. And we are now overall as a company, we've seen that going forward, our objective -- first objective is that as soon as possible, preferably by fourth quarter of the current fiscal, companies start generating a net basis profitability. So that is our first objective. Second objective is that we continue to improve the working capital cycle, reduce the receivable and start reducing the debt. That would be the second priority. The third priority is to complete our existing projects as fast as possible and complete our obligations there and maintain substantial cash flows out of the project receivables, that is the third one. The fourth objective for the company is to rebuild the market connect with our dealer community, with the customers across India. Because during the last 4 to 6 quarters of issues, there is always some kind of a back brace, rumors floating and so on. We have been continuously engaged to improve our debt coming to the market, and that is seen now the fact that in the September quarter, our sales have almost matched the last year. And for December quarter, we see positive growth. So that's an ongoing scenario. That would be our fourth objective. And fifth objective is that we improve cash flow to an extent that all our stakeholders, including our suppliers, the people, associates who work for us and so on, all our dues and obligations to them become current. And as we do all these piping, which I spoke about, that would automatically mean that our resolution plan will succeed, and then that should be good for the lenders. And as the debt keeps coming down and the lenders make our account standard for next 1 or 2 years, that should also be then a good news for our shareholders. So in that line and on that basis and focus, we continue to work. That was more for India. As far as our overseas assets are concerned, overseas businesses are concerned, as I said, they have held themselves well during this pandemic. And despite the parents' precarious situation and the restructuring going on at parent, they have been able to manage their business quite okay. They continue to remain very relevant to the marketplace in the mind share with the customer base, very good technologies, very good products, continued innovation, and that will be there. And we expect our overseas businesses in the second half also to the least overall positive growth on a full annualized basis. And we continue to optimize the cost in overseas businesses in terms of people, in terms of the number of the plants we are running, the production processes, et cetera, rationalization of the capacity. The work which started last year has continued and will continue for other 6 months or so to get it fully completed. And from next fiscal, already now onwards, but from next fiscal, one will start seeing full benefits of all that reoptimization, reinventing of the underlying costs and businesses we have done in overseas entities. We are going to face still for next 2 quarters or so, the issues linked to the bad season into the food business because just that's the nature, right. One year bad season, you have to wait in the next season. So mango next season comes in June, July and onions will start in January. So the positive impact of the next likely normal season will flow into the next season. In terms of the balance sheet side, there is no significant change compared to, let's say, June. There is a small amount of reduction compared to the June and receivables. And if you look at compared to March, inventories are down about 10% and receivables are down about 4%, as far as standalone balance sheet is concerned. And if I look at the consol balance sheet, again, inventories are down about 3%, and receivables are down by almost 10%. So again, there will be 10 different types of business, there will be 10 different cycles, but structurally, all our businesses, we are trying to make them more working capital-efficient and maintain good relationships with all the stakeholders everywhere. But good part is all businesses seems to be doing reasonably okay and will continue to improve once we get over the current slump and the challenges in especially to pandemic, but also our liquidity situation and the default situation at the parent which has impacted us. So I think all of this should kind of cover my presentation. In terms of just to cover the last issue of the pandemic, its impact and how we continue to operate that we have instituted all the sustainable -- at all our plants around the world. I'm quite strict. And during this last 6 months, which we have operated 6 -- rather 8 months now, if you consider March and October, we have been able to ensure health and safety. We've had hardly 1 or 2 cases of people who couldn't sustain or survive post COVID because of some comorbidities they had an unfortunate situation. But other -- so considering the large number of people who come to work, overall, we have manpower of 12,000. The number of people who've got infected were limited in small lower single-digit numbers. And all of them have cured and are back to work, and we have instituted various programs from the rehabilitation to ensure they get continuously monitored and ensure that prevention is better than cure. With that mantra, we continue to operate every single day. And all our associates have been sensitized about the importance, not only them, but their families. So that's an ongoing issue, right? All of us are learning, but there has been a lot of news about vaccines, and there was positive news over the last few days. So we hope that between now and March, as we end the current fiscal year, good vaccines will provide stability and predictability to everybody in terms of how the next fiscal year will turn out. And this is generally -- everybody says this. And everybody wants to forget 2020 in a hurry and move on to 2021. But we must learn our lessons from 2020, while we want to forget 2020. So lessons we should not forget. And as a company, we will ensure that what we have suffered since mid of '19, '19 was a reasonably good year. We did INR 8,600 crores revenue, and we were profitable. So INR 86 billion revenue. It was highest ever revenue we were achieved. And 2020, we had significant losses, all the issues, especially due to the low trade receivables, which we couldn't collect in time due to the government, government-related issues and other issues and then pandemic came around. But I think as a company, sometimes an adversity is also an opportunity. And we have taken this adversity to our heart. We are learning from it, and we are changing significant changes in how we operate. And we believe the new model with the reduced cost, better operating capacities, reengineering whatever we have done, plus now as the liquidity comes by recovery of the receivable, and the resolution plan provides some more breathing space on the lender side, I think combination of the would allow -- will allow company to come back quickly and in a robust way back to what we do well, right? We have the best possible product line in the world in the way we service our customers. And we believe doing that, we will continue to create good amount of value, which can be shared with all stakeholders and see that ultimately, shareholders also get rewarded apart from all of the stakeholders. So we will remain focused on that as we go along. And during the pandemic, most of the management team and some of them working from a some coming to offices, where it is possible, have continued to stay fully engaged. And we have been able to retain, maintain 98%, 99% of all the management people as well as people of shop floor despite delays in salaries and all the challenges we have faced. I must register my sincere appreciation for all our associates, people who work in the company for their continued faith in the company as well as shareholders, our lenders, our vendors and suppliers who have stayed with us during this difficult time. Having said that, I would now change my presentation to close and we can take a few questions. And I again wish everybody all the best and Happy Diwali and happy festivities. Thank you.

[Operator Instructions] The first question is from the line of [ Ankit ] an individual Investor.

Sir, I want to know about your irrigation business. Sir, you are the second largest Micro-Irrigation player in the world?

Yes.

I want to know what benefits do you enjoy being the second largest player?

I'm sorry, I didn't get you.

I want to know about the Micro-Irrigation business. I want to know what benefits do you enjoy being the second largest player in the world. Are your customers loyal to you?

That's a good question. So in India, especially, as you know, our market share has been significantly higher, about 40% plus. And some of our businesses like Micro-Irrigation in India, we pioneered, in specifics, the business which we have in U.S., which we have acquired companies that have been in existence since '60s. The business we have through our company in Israel, they have been business in 1940. So a very long history. And the fact that all of our businesses have survived for so long. So 50 years, 70 years, 60 years like that. It's only because good quality products, we make good services, and we are competitive, and we enjoy that loyalty. And that's the point I was trying to make that in the most impact of the COVID even when our competition business in the June quarter was down, let's say, 15% or 20%. Our people managed to retain business at only at minus 5% or 8% or 9%. Now they could have possibly maintained the same level of business with no reduction. We had, in fact, even more demand and orders. But our liquidity situation didn't allow us to fulfill all these orders. So we are addressing those issues. But the most important thing, which we have earned as a company is the loyalty and trust of our customers. And that is what is going to allow us to continue to serve them going forward. And again, when you talk of customer loyalty, in India, there are 12 crore or 120 million farmers. We have reached a very small portion of those farmers as of now. And there are a lot more we can still go for over the next decade or so. So this loyalty is important, and it is there, and that is what Jain is known for is because we believe in customers and bring solutions which really matter to them.

Maybe a [ next question ] maybe. Whether India may be [indiscernible] Why are you not exploring whole of India?

I could hear only last part of your question, why we are not exploring whole of India. And that partnership understood, I will answer, is that we have -- while we started in Maharashtra. As of now, we operate quite well, I would say, Maharashtra, Gujarat, MP, Karnataka, Tamil Nadu, Andhra and Telangana, these states we are quite well on drip irrigation. We have started doing good amount of work in Rajasthan, Haryana. We have also opened our accounts, I would say, in UP and Bihar. And we have done some amount of work definitely in Uttarakhand Himachal Pradesh, et cetera. So we still need to do a lot more in, let's say, eastern parts of India, northeast part of India. But I think you will see that over the next 2 to 3 years, we have planned that we will have our dealer, somebody who sells our product, in almost every [ third thing ] across India. And to broad message, almost across... [Technical Difficulty] I was saying that to answer that question, I was saying that we have a plan that we will be doing more robust effort to sell more products in Northern and Eastern parts of India over the next 2 to 3 years.

The next question is from the line [ Parag Khare ] of from TCS.

Sir, on the debt resolution plan, it's getting a little late in terms of we were expecting it by end of March, but we -- because of the pandemic, it is getting late. Sir, my question is, when the debt resolution plan is implemented, will there be any lag effect to show benefits on our operations and overall earnings? Or we will start seeing the benefit immediately as and when the plan is implemented, let's say, in the Jan payment March quarter? Can we expect some benefits from that in -- once the plan is implemented, it will be when we start seeing the effects on the ground?

So while I'm unable to share more specific details of the plan, as you know, because unless it is fully approached. But directionally, I can share with you that as soon as the plan gets implemented, certain amount of interest, which has been accrued on our books will get reversed. So that would be a gain coming to the profit and loss account. From that day onwards, for the debt which we have, we will be having a lower interest. The third part would be, there would be a release of certain amount of working capital into the business, which would allow us to generate better revenue and so on. So there are going to be multiple benefits as soon as the plan gets implemented. And as I said at the beginning, the delay is there, right, due to pandemic now, we lost 6 to 8 months, the plan is effective last year, June '19. So that does not change. So although benefits, which has to come, they will come effective as if starting that only plan has already happened on the 2019. So overall, as soon as plan gets implemented, you will see that we should have some good benefits, which would allow us to operate in a normal way, reduce our cost, improve earnings and reverse some of the losses and then ensure that we make certain amount of repayments to all the lenders so that our account becomes standard, it becomes investment-grade and then company becomes normal.

And the second question is on the overall business. We have been with the company for a very long time. We saw the journey from INR 3 crores to INR 253 crores, plus PAT. We had INR 8,600 crores top line in FY '19. Do think we can go back to that glory? Or it will -- or it is a history now and then we should expect a little lesser number of top line and little less number of PAT. What is your take? Can you expect the glory in 2 years, next 2 years, 3 years?

I think I know one thing I'm certain that glory will be there, so the revenue number. But I think more important on that revenue number rather than revenue number, you will see that we will have better margins and better cash flow, that those 2 things are important. In terms of number, in terms of revenue, I don't know how the pandemic plays out, second wave, third wave, how long the vaccine immunity says, we don't know those issues. But in terms of -- I can share with you demand and requirement from customers, that remains very strong. So as soon as we become normalized post the debt revolution and some of the improvement in our working capital cycle by a reduction and receivables bringing that liquidity into the business, I think there is a good chance, I would say, at the management level in terms of production capacity, technical excellence, we can go back to that. Now timing is a question mark right now, whether it happens in 2 years or 3.5 years or 3 years, one does not know, one cannot commit. But direction is there that definitely, not only we go back where we came from, but we should do better because when you think about drip irrigation, especially, the penetration level in the market is still so low in India even overseas. So this is a business for next few decades, right? It's not for the few quarters. And we have scale. We have a brand. We have innovation. So I think once we start off this commercial issue of liquidity, cash flow and the best part of it, I think we will come back quickly. That's what I believe. We not just we, but our entire management, all the associates, 12,000 people in the company believe in that, and that's what we are working so hard.

[Operator Instructions] The next question is from the line of [ Maresh Koppanyi ] from [ Koppanyi Securities ].

I'm asking this question because many times in restructuring and debt resolution plans, the shareholder value becomes 0. So are we asking for much higher cut from the lenders? Or we are asking only for interest and debt reschedulement?

If you look at our company, again, only if you just look at book value of the company is I think at least 4 or 5x of the current share price or whatever. So company has a lot of intrinsic shareholder value today already today, even though it is not reflected because of losses and what we are facing this temporary issue, let's say. But as we move forward, once the restructuring is in place, there should be a significant accretive effect on the shareholder value in any case. The way the resolution plan is getting structured and due to confidentiality reason, right now, I cannot discuss all the details. But the way it is getting structured, it is going to allow company to generate shareholder value as we also ensure that all our debt to the lenders become more sustainable, more standard date and so on. So it's a win-win scenario. It's not one at the cost of another. This is a resolution plan, which is good for lenders as well as the shareholders, both. And once it is announced, you will see what I'm saying that, yes, that's right. And we'll be able to see fruits of that over the next few quarters.

Sir, we are not going to have an investor in food business. And this INR 4,300 crore orders that we have, are to be executed in which time, sir?

Some of these orders, about, I think, part have brought us close to, I would say, a 50% needs to be executed in the next 9 months or so. And the remainder of 50%, I would say, over 18 months or so.

Ladies and gentlemen, I now hand the conference over to Mr. Anil Jain for closing comments.

So thank you for listening, and thank you for support of all the market participants, investors, lenders and stakeholders. Again, we are committed to a positive growth and a positive path for the company, which would be balanced for all the stakeholders and not one stakeholder at the cost of another. And we have a lot of confidence on moving forward in a positive way in the direction which we have espoused over the last few quarters. And we wish all the best, and let's hope that we get over the pandemic scenario over the next 6 to 9 months in a right way. And meanwhile, we will continue to improve on our business and business end. Thank you, again.

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