R.A.K. Ceramics P.J.S.C. (RAKCEC) Earnings Call Transcript & Summary

Hello, everyone, and welcome to the RAK Ceramics Fourth Quarter and Full Year 2021 Earnings Call. This is Mohamad Haidar from Arqaam Capital. And from RAK Ceramics, we have Mr. Abdallah Massaad, Group CEO; and Mr. P.K. Chand, Group CFO. Over to you, Abdallah.

Thank you, Mohamad, and good evening, everyone. I sincerely hope that everyone on the call, along with families are keeping safe and healthy. I'm pleased to report that our fourth quarter and full year 2021 results exceeded our expectations, and we continue to deliver strong financial performance in 2021. With revenue and profitability surpassing pre-pandemic levels, despite challenges created by the imposing of custom duty of 12% in Saudi Arabia, and the significant increase in input prices, logistic costs due to the global shortage of containers. Our business saw a positive momentum towards a gradual return to normality with the resumption of economic activities and trade. We strengthened our brand positioning as a global provider of premium ceramics lifestyle solutions by exhibiting at many international events, and by sponsoring several high-profile architectural and interior design awards. The strength of our brands has enabled us to partner with several award-winning designers, including world-renowned fashion designer, Elie Saab. These partnerships have produced some of our most unique and innovative product to date. In the first quarter of the year, we reported a significant revenue increase, marked a 5-year high. Following that, we reported 3 consecutive quarters of positive revenue growth and reported a healthy net profit of AED 283.9 million for the full year 2021. Our total EBITDA also increased by 32.7%, reaching AED 501 million during the full year 2021, driven mainly by the strong growth trajectory of our core business. Our total revenue for the fourth quarter 2021 increased by 4.5% year-on-year and increased by 9.9% quarter-on-quarter, reaching AED 752 million and surpassed pre-pandemic levels, increasing by 9.9% to Q4 2019. Driven by strong growth trajectory in the UAE, India and Bangladesh markets, also rebound in tableware business. Our total gross profit margin for the year of 2021 increased by 4.1%, reaching 36.2%, driven by improved production efficiencies and optimization of production line across all our plants. Production capacity utilization for tiles was optimized to match the demand during the quarter. We continued to reduce production costs by optimizing the production line to increase productivity and the first choice of production. The UAE end market revenue in the fourth quarter 2021 was higher by 19.5% quarter-on-quarter, supported by growth in wholesale and retail business while it is lower by 7% year-on-year, reaching AED 157 million. In full year, revenue decreased by 3.1% year-on-year, reaching AED 595 million. In Saudi Arabia, the company strategy continues to yield results. The imposition of a 12% customer duty, effective from 1st July 2021, reduced demand initially impacting our sales during the quarter. We have already submitted duty certified regulatory documents to comply with the requirements like value additions in the UAE and a minimum threshold of local employment in the organization with Saudi authorities in October 2021 and we are waiting for grant of duty exemption. Our products have been approved by ministry of housing projects and supplies have started in the first quarter. We were able to strengthen our position as a premium provider with an opening of 3 new showrooms, 2 in Riyadh and 1 in Medina. In 2022, there are plans to open another 3 showrooms. Our Saudi Arabia revenue decreased by 19.9% year-on-year and by 17.8% quarter-on-quarter to reach AED 105 million during -- to reduced demand. In the full year of 2021, our revenue increased by 26.7%, reaching AED 544 million. In Europe, performance was impacted by higher shipping freight rates owing to global container shortages resulting revenue decrease by 16.4% quarter-on-quarter and 17.2% year-on-year, reaching AED 82 million. In full year 2021, the revenue increased by 17% year-on-year to reach AED 395 million. Compared to the full year 2019, revenue increased by 20.2%. Our relentless focus on providing world-class product management has resulted in increased customer base, which saw an overall increase of revenue in 2021. A new showroom in London will be opened in the first quarter 2022. In India, operations marked a strong turnaround with the business surpassing pre-pandemic level. This was underpinned by positive business sentiments as reflected in improved profitability, despite significant higher fuel cost and third wave of COVID-19. Revenue grew by 32.9% year-on-year and by 12.5% quarter-on-quarter to reach AED 117 million. In the full year of 2021, revenue increased by 61% year-on-year to reach AED 389 million and higher by 42.6% compared to full year's 2019, surpassing pre-pandemic levels. Our Indian operations continue to post positive results for the last 5 quarters. Our focus is on introduction of innovative products to drive better margin and improve geographical expansion of dealer network by covering more districts. In Bangladesh, the company demonstrated resilience and reported strong year-on-year growth supported by differentiated products for premium segment with revenue increased by 26.3% quarter-on-quarter and by 6.2% year-on-year to reach AED 86 million. For the full year 2021, our revenue increased by 30% year-on-year, reaching AED 295 million. At RAK Ceramics Bangladesh, share price increased from BDT 27 to BDT 61 million in the last 1 year. It is trading at a PE multiple of 26x. In Middle East, revenue increased by 48% year-on-year, reaching AED 129 million in the full year 2021, considering that the last year's revenue was substantially impacted due to the pandemic. Our tableware performance witnessed a rebound to pre-pandemic levels, and we have increased production to meet the growing market demand. During the quarter, we posted robust growth and profitability despite continued supply chain disruption and higher shipping freight costs. Tableware revenue in the fourth quarter 2021 increased by 33% quarter-on-quarter and by 109% year-on-year, reaching around AED 90 million. Compared to the third quarter 2019, our revenue increased by 15.2%. In full year of 2021, revenue is higher by 73% year-on-year reaching AED 254 million. Our faucets revenue increased by 17% year-on-year in full year of 2021, reaching AED 166 million, driven by all market. Despite the continued pandemic, our liquidity position remains at a comfortable level. Our working capital days decreased from 180 days to 175 days. During the quarter, our net debt to EBITDA remains at a very stable low at 1.94x quarter-on-quarter in December 2021. In December 2020, our net debt-to-EBITDA was 3.25x. Cash dividends of AED 0.20 per share has been proposed by the Board of Directors for the year 2021, out of which AED 0.10 per share were already paid in October 2021, as an interim dividend. The Board of Directors has approved an amendment to the company's dividend policy. The new policy stipulates a minimum dividend payout of AED 0.20 annually for the full year 2022 to be paid on a semiannual basis and also provides for a commitment to pay a minimum dividend of AED 0.60 over the next 3 years from 2022 to 2024. The revised dividend policy will be subject to factors such as business outlook, capital requirements for growth opportunities, expansion plan, optimal leverage level and the healthy cash reserves in addition to regulatory approvals. The revised dividend policy will be presented to the shareholders for approval in the next annual general meeting. Now please allow me to take you through our financial highlights for the fourth quarter of 2021. Total revenue increased by 4.5% year-on-year, reaching AED 752 million. Quarter-on-quarter, revenue increased by 9.9%, supported by India, Bangladesh, Middle East markets and tableware business. Tiles revenue remained stable year-on-year at AED 490 million, while quarter-on-quarter revenue increased by 4.3%. Our sanitary ware revenue is lower by 10% year-on-year, reaching AED 131 million due to reduced revenue from Europe markets on account of significantly higher shipping freight rates. Our tableware revenue improved quarter-on-quarter by 33% and by 109% year-on-year to reach AED 90 million in the fourth quarter 2021 as the market situation across our core market has gradually improved. Total gross profit margin in the fourth quarter 2021, margin is decreased by 80 basis points year-on-year reaching 33.6%, and quarter-on-quarter decreased by 460 basis points mainly to increase in input prices including freight and considering 12% customer duty in Saudi Arabia as part of our COGS amounting of AED 12.5 million. Total gross profit margin decreased by 1.6% year-on-year, reaching 38.11% in fourth quarter 2021. Financial reward margin in the fourth quarter 2021 decreased by 11.3% year-on-year, reaching 27.4% due to significant increase in raw material and freight costs. Our tableware margins improved quarter-on-quarter by 5.5% reaching 50.1% and by 17.6% year-on-year due to increase in revenue and productivity. Our like-for-like net profit is also higher than pre-pandemic level, increasing 46.1% compared to the fourth quarter 2019 and 5.1% year-on-year to reach AED 81.4 million. Like-for-like net profit margin is stable year-on-year at 10.8%. Reported net profit stands at AED 62.9 million, outperforming pre-pandemic level of a net process compared to the fourth quarter of 2019, which was the profit was AED 49.4 million. In the fourth quarter 2021, net margin -- net profit margin was 9.3%. Net profit after minority in the fourth quarter 2021 was AED 45.2 million compared to 59.3% in the fourth quarter 2020, excluding impairment losses in last year. Margin in the fourth quarter 2021 is 6% compared to a margin of 8.2% in the fourth quarter 2020. Our EBITDA is at AED 122 million compared to AED 137 million on the fourth quarter 2020. Our margin is 16.2% compared to 19.1% in the fourth quarter 2020. Our net debt level is stable quarter-on-quarter at AED 971 million in December 2021. Thank you for listening. And I will now hand over to Mr. P.K. Chand, our CFO.

Thank you, Mr. Abdallah. Good evening, everyone, and thank you for joining us. Mr. Abdallah has already briefed summarized financial performance, financial highlights and regional performance for the fourth quarter of 2021. I will take you through the full year of 2021 results and segmental highlights with details on revenue, profitability and the balance sheet. We will start from Slide 7. Total revenue increased by 21.8% year-on-year to AED 2.86 billion. Full year 2021 revenue has surpassed the pre-pandemic levels increasing by 11.1% compared to the full year of 2019. Tiles revenue increased by 21.3% year-on-year to AED 1.95 billion, driven by all markets except UAE market. Sanitary ware revenue also increased by 17.5% year-on-year to AED 543 million, driven by all markets, except Saudi market. Tableware revenue improved year-on-year by 73% and by 33% quarter-on-quarter to reach AED 254 million as the market situations across all our core market is gradually improving. Total gross profit margin in full year of 2021 increased by 4.2% year-on-year to reach an all-time high of 36.2%. Tiles gross profit margin increased by 5.2% on -- year-on-year to reach an all-time high of 36.6%. Last year, margins were impacted due to plant shutdowns. Sanitary ware margins for full year of 2021 decreased by 1% year-on-year to 33.8% due to increase in raw materials and freight costs. Tableware margin improved by 1.6% year-on-year to 42.7% due to increased revenue and profit productivity. Net profit after minority was AED 246.5 million after considering gain on sale of China assets amounting to AED 50.1 million and write-off of excess lease learned recognized in earlier years for the hotel amounting to AED 27 million. The net one-off gain were recorded during the second quarter of the year, and it was AED 22.9 million. The margin is 8.6% in full year of 2021 compared to 8.2% in the last year. The reported net profit is AED 283.9 million in the full year of 2021 compared to a net profit of AED 110.1 million, excluding one-off impairment losses of AED 236.2 million in the last year. Margin is 9.9% in full year of '21 compared to 4.7% in the last year. Like-for-like net profit before impairment losses, gain on sale of China assets and write-off of excess lease rent recognized in earlier years, increased by AED 150.8 million year-on-year to AED 298.1 million with a margin increase of 4.2% year-on-year to 10.4%, mainly due to higher revenue and gross profit margins. EBITDA is AED 501.3 million compared to AED 378 million in the full year of 2020. The margin is 17.5% compared to 16.1% in the full year of last year. Net debt decreased from AED 1.23 billion in December 2020 to AED 971 million in December 2021 due to higher cash profits and receipt of proceeds amounting to AED 69.6 million from sale of China assets. Net debt-to-EBITDA decreased from 3.25x in December 2020 to 1.94x in December 2021. In September 21, net debt-to-EBITDA was 1.89x. And since then, in October, we paid a dividend of 10% as interim dividend. On the cash front, capital expenditures for 2021 was lower at AED 91.3 million compared to AED 110.5 million in 2020. CapEx for 2022 is expected to be in the range of AED 300 billion to AED 400 million. As informed cash dividend of AED 0.20 per share has been proposed by the Board of Directors for the year 2021, out of which AED 0.10 per share have already been paid in October 2021 as interim dividend. Further, the Board has recommended a revision in the dividend policy, as already briefed by Mr. Abdallah. Now we turn on the working capital cycle. In absolute terms, overall working capital decreased by AED 32 million to AED 1.29 billion quarter-on-quarter due to decrease in trade receivables. In terms of days, it decreased from 180 days in September 21 to 175 days in December 2021, mainly due to decrease in trade receivable days. Inventory days remained stable quarter-on-quarter at 217 days. Trade receivable days decreased from 102 days in the third quarter of 2021 to 94 days in the fourth quarter 2021 due to decrease in trade receivables. Trade payable days also decreased from 69 days to 62 days quarter-on-quarter. We continue to take measures to manage our liquidity. The next slide shows the share price movement of RAK Ceramics, which has increased from AED 1.62 to AED 3.01 in last 12 months and trading at P multiple of 11.49x. Now we turn to Slide 17, where you can see that our Bangladesh entity listed on Dhaka Stock Exchange, the share price has significantly improved from BDT 26 to BDT 61 per share, an increase of 135% in last 12 months. The market cap of our Bangladesh entity is around $308 million, which contribute nearly 37.8% to the group market capitalization, while the revenue of Bangladesh entity is around 10.5% to the group revenue. Now I would like to turn it back to Mr. Abdallah for final comments on 2022 priorities before we answer your questions.

Thank you, P.K. Despite the challenges, our business of positive momentum and a gradual return toward normality with economic activity and trade resumption. Our priority for 2022 is to protect our market share and further strengthen brand perception in our core market with a sustained investment and brand initiatives, such as a new showroom, retail outlet store and launching our e-commerce platform. Despite rising input costs and supply chain disruption, we aim to sustain our current operation cost by enhancing our plans in the UAE, India and Bangladesh initiating the greenfield project in Saudi Arabia and increasing selling prices to offset the increased freight costs in Europe. We are committed to increasing efficiency while reducing our environmental impact and protecting the health and well-being of our employees. We will continue to evaluate the ongoing situation as the potential for new COVID-19 variant remain. Thank you for your time. Now I would like to hand over the call to the operator and open the line for questions. Thank you.

[Operator Instructions] Our first question today comes from Nafez Alabbas of Ajeej Capita.

Hello, can you hear me?

Yes.

Congratulations on the results. Can you give us a little bit more details on the performance in Saudi Arabia? Was the decline driven mainly because of demand? Or was it more competition? I mean do you think that competitors have got more market share from you during this quarter?

Thank you, [ Ajeej ]. I -- during any implementation of new regulation, always in Saudi, it will drive better demand for us. Two things. First, we already -- you see we had a great 3 quarters. And strategically, we wanted to -- and not to flood with the market. If the market is a question between demand, supply and demand. And on purpose, we did not push much during the quarter as the demand locally was low due to changes in building permits in Saudi, but we do not see any negativity going forward, and we don't see any loss of our market share in the segment where we are playing.

Our next question today comes from Vijay Harpalani of Al Tayer Group.

Got one question with reference to taxation. So the recently announced taxation policy in the UAE, which comes into effect by mid of next year. What is the impact? I mean, since RAK Ceramics generates a vast majority of revenue outside the UAE, what some thoughts on the potential tax impact would be really helpful and I'll perhaps wait for my next question.

See, as far as the 9% corporate tax is concerned, it has been introduced for the company's effective for which the financial year starts after 1st of July 2023. In our case, since the financial year starts on 1st of January, and therefore, for the operations of 2024, we will be liable to pay tax in the year 2025. So that is going to be the situation. Now there is a global international tax also, and there is a UAE corporate tax, so we will have to actually assess. So the main profitability is coming from UAE. So obviously, 9% tax is applicable on that amount.

Our next question today comes from Adil Rashid of Daman Investments.

My question is regarding the revenue growth. Could you break it down in terms of the impact by price and by volume?

See, as far as the price and volume, it is -- we share it with analysts, but it is not -- publicly, it is not disclosed.

Okay, fine. Then can I sort of ask another question? Regarding the freight costs, have you been able to pass this on to the end consumer fully of partially?

Look, for sure, it was too early, especially our biggest market is Europe. And we could not pass it during last year, but some we pass it fully and some partially starting 1st of January 2022.

Our next question comes from Anoop Fernandes of SICO.

Just one question on your Bangladesh business. You highlighted that the share price is up, and yes, it is like, I think, almost at a 3-year high. Also, we see a big drain from minority leakages in your consolidated financials. I'm assuming this comes from Bangladesh. So what is really happening in the Bangladesh operations? What has really changed in the last -- this quarter or in the past year where there is such a big turnaround in the share price as well as profitability?

Look, as you can see, our improvement in our gross profit margin or over the group. So at RAK Ceramics, we started a program of rebranding on differentiating ourselves from the competitor to move from a commodity to a solution provider -- and we've done also in our production process, a lot of improvement from energy consumption to efficiencies to -- we tried our R&D department, we have a lot of ideas, which we implemented in the UAE, and it was successful. So last year, we roll out all these initiatives in India and in Bangladesh, -- and from there, despite in Bangladesh, we had a lockdown during the first quarter, but with the innovative product, with the efficiency and manufacturing, with the ability to move fast and with the supply chain in terms of raw material availability. So it was a good year all over the group and specifically in Bangladesh, we were able to differentiate ourselves from the competition. And that's why we, in the 3 quarters, were able to sell even more than the pre-pandemic. And I believe it was also appreciated by not only our clients or all the stakeholders, including investors in the market.

Okay. Just a follow-up on the same thing. In the fourth quarter, there was a big increase in the minority interest. This comes from Bangladesh, right? Almost entirely.

It comes from Bangladesh as well as the RAK porcelain and our RAK porcelain business, which historically was one of the best performing division. And during the pandemic, it is directly related to the HoReCa industry. And last year, it was restarted and specifically after the first quarter this year and the impact came on the third and fourth quarter. And there, RAK Ceramics own 50% and we have a 50% minority where the business show a very big turnaround.

The next question comes from [ Mohamad Ahmed Omar ].

First of all, I would like to thank you for the nice results for this year and I hope [Foreign Language] to keep going through this for next year. My question is regarding the selling and distribution costs for comparing between 2020 and 2021. I noticed that the -- we spend -- company spent around AED 409 million for selling and distribution in 2020. But also in 2021, it's raised up around AED 573 million. It's around 32% raising up. I would like to know what the reason of this big percentage raising during 1 year.

Yes, because -- thank you very much for your question and comments. Look, it is higher sale. And with the higher sales, you have that freight included in the selling cost. So it's higher freight on increased volume, plus the increase in freight, which was enormous during -- the main challenge, which was in 2021, which would continue in 2022 is the supply chain disruption and specifically the container costs. So this is why the volume mix of volume increase as well as the freight increase.

And I would like to know, as you said, the supply chain -- how much the shipment is costing like a margin cost from the products, if you can tell me.

Look, it is market by market. At RAK Ceramics fortunately or unfortunately, we are very diverse. If you look going to UAE is different than going to Saudi, which could -- at least in Saudi, it is stable by traders, trucks, it didn't increase while a container to Europe, which was costing us EUR 1,200, today is costing us EUR 5,600. So going into even the sales we have selling, which is the ex factory to most of the market, while for our distribution centers in the U.K., in Germany, in Italy, it is -- we have to consider the freight included. So therefore, it varies, but we had said that we have paid almost 50 -- more than AED 50 million extra in freight costs coming from a price increase.

As a percentage of -- can you know how much as a percentage?

I don't know if we have it. If we don't have it, we will send it to you. Our team will work it out and send it to you.

[Operator Instructions] We have a follow-up question from Adil Rashid of Daman Investments.

Regarding your capacity, do you have excess capacity at the moment? And if so, how much can you utilize without incurring further CapEx?

Look, in terms of capacity, we can say that almost 90% of our capacity was utilized during the year. Meanwhile, we already declared that we are increasing 1 line in the UAE, which will be ready by end of the year. And we are adding 250,000 pieces of sanitary ware, which will be ready gradually from the second quarter to the third quarter during this year in UAE. Also, we are investing and upgrading the machineries, which will allow us to have extra capacity in Bangladesh. So I believe that what we see as a demand and the capacity we have, we will be able to match. And we are working on several initiatives to grow and the growth around us, which for the time being, we have another 10% extra capacity, which we can -- depends on the production typology. So when we say 90% of the capacity is utilized, we can have more efficiency. It depends on the typology which we produce.

Okay. And just to follow up on that. Are you guiding for a certain amount of CapEx for this year?

We already mentioned -- P.K. mentioned that our CapEx during the year will be between AED 300 million to AED 400 million. The variant is that we are monitoring on a -- we are still in the pandemic, and we failed, as you see very well the last 2 years. We are monitoring on a day by day, how -- what's happening on the supply chain and accordingly, will be the spending. So that's why it is between AED 300 billion to AED 400 million.

The next follow-up comes from Vijay Harpalani of Al Tayer Group.

So I'm not sure if you disclose margin breakdown by geography.

P.K.? We don't give it. It's too detailed.

[Indiscernible] like India, Bangladesh and maybe some direction would be helpful in that case. I mean you talked about [indiscernible].

Look, we are going -- If you see our margin is improving day by day. And I believe during 2021, our margin was the highest in the last 10 years. And what I can tell you is that we will continue working on improving our margins.

But do you think current levels are sustainable? Or [ how will you achieve that number ]

We are thinking on how to improve the current margins. As I said, our investment the last few years in branding and positioning and differentiation and efficiencies and manufacturing combined should help us and sustain and improve our margin going forward.

Last question, if I may, on dividend policy. What drove that change in the dividend policy? If you could please elaborate on that.

So if you see that we are already having a guidance of paying 60% at least from our net profit. And if you see the last year, the last year, the Board recommended and the general assembly approved paying of semiannual, which were already paid last year, and the Board recommended for general assembly to approve at least to pay AED 0.20 in 2022 as well as combined for the next 3 years '22, '23 and '24 to be at least AED 0.60. For sure subject to anything macro happened, but this is how the Board recommended for the general outcome.

And this will be a cash payout, right?

Yes, it's a cash. Yes, it's a cash.

And on your question on what was the percentage of freight to the revenue? I've got the details now. So in 2020, it was 8.5%. In '21, it was overall 10.8%. While in the fourth quarter, where we felt the maximum hike in the freight rates, it was 12.6%.

And our next follow-up comes from Dina Hicham of EFG Hermes.

I have a question on Bangladesh. There were reports from Bangladesh that is facing an acute gas shortage over the past few weeks. Did it impacted your operation? And what is your view on the situation? Any chance it will spill over to gas price increase in Bangladesh?

Thank you for your question. But to be honest, we -- our team on the ground didn't inform us of any disruption in gas supply. And we did not see any -- we did not see any changes there.

No. So far, the increase has not yet been announced. But yes, the team is foreseeing that, yes, there will be some price increase.

But no shortage in this.

No shortage. So far, no shortage has been reported.

[Operator Instructions] We have no further questions in the queue. So I'll hand back to the management.

Abdallah, I have a question. On CapEx, how much of the AED 300 million to AED 400 million is going to be maintenance next year -- or this year?

Look, the maintenance costs, if you saw the last 2 years, we were spending AED 100 million. Normally, we were standing -- it will be like AED 200 million as CapEx -- as a maintenance, sorry, and upgradation. And we have the remaining in CapEx.

Understood. And just one more on Q4 margins. They were a bit lower than the full year margins for gross margins. Are these going to be the levels for 2022 or more of [indiscernible]

Mohamad. No, Mohamad. What we -- what I said that the increase in freight came into the fourth quarter, whereas we were not able to increase our prices for a commitment earlier than the hike in logistic costs. Starting 1st January 2022, we already implemented a hike in prices to cover at least a big portion of the increase in transportation costs.

[Operator Instructions] The first question comes from Adil Rashid of Daman Investments.

Just to follow up on the natural gas costs. Could you provide some clarity on how is it priced across different geographies. I understand some is -- some of it is hedged, right? So could you just explain how the contracts are set?

Look in terms of gas price for us, we do not see any risk in the gas, our contract, which we buy here, we buy from RAK Gas which is blended of a fixed rate for a portion and a portion linked to the brand. So honestly, the portion which is fixed is like a natural hedging, reducing the impact on the increase. We will have an increase, but not severe or a major increase. This is in the UAE and in India, we already saw increase in gas prices but it is for all the manufacturing, which they pass it on the increase in prices. And that's why if in Bangladesh, the price increase, this will lead to an increase in prices by us and other manufacturers.

And our final question is another follow-up from Dina Hicham of EFG Hermes.

I just have a final follow-up question. Was there any capacity expansion going in the UAE for tiles and sanitary ware as you were discussing about 4 million square meter capacity additions in the UAE, I think last year?

Yes. We started by increasing -- we have a big capacity here. So we were adding approximately 4 million square meter of tiles capacity and 250,000 pieces of sanitary ware in the UAE, which will come by end -- the tiles will come by, say, end of this year. And the sanitary ware will come approximately on the third quarter of this year.

[Operator Instructions] There are no further questions.

Thank you, everyone, for joining. Mr. Abdallah and Mr. P.K., thank you for your time, as always, and we hope we have you all in the next quarter with us.

Thank you very much.

Good evening. Thank you.