Rallis India Limited (RALLIS) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to Rallis India Limited Q2 and H1 FY '27 Earnings Conference Call. We have with us today, Dr. Gyanendra Shukla, Managing Director and CEO, and Mr. Bhaskar Swaminathan, Chief Financial Officer. Before we begin, I would like to mention that some of the statements made in today's discussion may be forward-looking in nature and may involve risks and uncertainties. A detailed statement in this regard is available in the results presentation. Please note that this conference is being recorded. [Operator Instructions] I now hand the conference over to Dr. Gyanendra Shukla. Thank you, and over to you, Dr. Shukla.

Thank you. Good morning, everyone, for joining us today for Rallis India Limited Q2 and H1 Fiscal Year '27 Earnings Call. As mentioned, I have alongside with me, our CFO, Mr. Bhaskar Swaminathan. Let me begin the discussion by pitching into the industry landscape initially, most which I'll discuss Rallis-specific developments. Our domestic market, India's first -- India's agri input sector faced significant headwind during the '26 -- I mean this ongoing Khariff season is just getting concluded amid deficient and erratic rainfall, a lot of crop exchanges, subdued farm economics and heightened competitive intensity. Moisture surpass across 3 agricultural states like Maharashtra, Andhra, Karnataka, Telangana, parts of Punjab and Haryana affected crop prospects for paddy soybean, maize, cotton and pulses, weighing on demands for herbicide, fungicide and insecticides and seed treatment products, softer product prices, higher trade discounts and channel inventory pressure further constrained pest purchases. Consequently, the domestic demand recovery is likely to remain uneven contingent on the crop condition irrigation availability and revival of farmer profitability. On global markets, commodity prices and margin since April 2026, global agriculture markets have experienced firmer commodity prices amid the weather-related supply risk and geopolitical disruptions. In September, the FAO food price index rose 1.5% month-on-month, while its cereal price index has increased by 5.1%, driven by higher wheat and maize prices amid Black Sea logistical disruptions and adverse weather conditions. Vegetable oil and sugar prices also strengthened on the back of import demand. Weather concerns and production uncertainties across key producing reasons. Although global cereal production is forecasted to decline in 2026, the projected harvest remains the second largest on record indicating tighter supply condition rather than a widespread shortage. The Middle East crisis has heightened energy and freight cost increasing pressure on agrochemical manufacturers input cost and margins. The firmer crop prices could support farm economics and agrochemical demand, the benefits may be offset by affordability constraints, competitive pricing and cost of replenishment, keeping the sector's recovery uneven. The global agriculture sector is expected to expand over the medium term, supported by rising food demand productivity improvements and agricultural intensification, OECD FAO projects, global agriculture production value to increase by 13% by 2035, with Asia, Sub-Saharan Africa and Latin America emerging as key growth reasons. Latin America remains strategically important given that substantial soybean, maize and cotton, while North America and Europe are mature input-intensive markets, the global crop prediction market is estimated at USD 70 billion in 2026. Although growth will remain sensitive to farm economics, weather regulation and product affordability. For Indian exporters, favorable currency movements may support route realizations, but sustained volume recovery remains critical. International sales may also face pressure from subdued channel demand distributor resistance, weather-related disturbance -- disruptions and heat waves in Europe, which have affected crop conditions and input application patterns. For Indian companies, the key indicators to monitor are active ingredients and intermediate prices, freight rate, rupee movements, export order volumes, channel inventories and farmer affordability, recent UN and international agency assessment also warned that prolonged shipping disruptions could affect crop yield and food prices into 2027. For the agrochemical industry, broader firmer crop prices can improve farm economics and support demand for herbicide insecticide and fungicide, particularly in export or agriculture regions. However, higher crude oil, energy and freight and input costs may put pressure on manufacturers margin, while elevated fertilizer cost food constraint powers overall input spending. The outlook is therefore cautiously constructive. Companies with strong distribution network, differentiated products, efficient manufacturing and disciplined cost management are in better position to benefit. A sustained recovery in agrochemical demand will ultimately depend on the persistence of higher crop prices, improved farm economics and recovery in channel inventory such as purchasing activity. As far as Rabbi outlook is concerned, the outlook remains sensitive to winter rainfall, soil moisture, irrigation availability, IMD's northern Northeast monsoon forecast of 80% to 81% of the long-term period average is relevant to Southern Peninsula India, but does not guarantee adequate rainfall across the country. Major reservoirs held approximately 70% of the capacity below 10-year average of 76%, with the southern region facing relatively greater irrigation concerns. These conditions could influence Rabbi acreage, crop yield and farmer spending, particularly in water-stressed areas. The crop yield and farm -- the government's Rabbi MSP increases for '27, '28 range from 0.97% for Rabbi to 10.3% for safflower and mustard rising 6.6% and then till 5.5%. While higher MSPs provide a major of price support, actual farm return will depend on yield market prices and. Moving to Rallis-specific developments. We had a muted Q2 performance on the back of insufficient rainfall in the key agrochemical consuming states like Punjab, Haryana, Maharashtra, Andhra, Karnataka, Telangana, et cetera. Our quarterly revenue stood at INR 858 crores versus INR 861 crores of Q2 of previous year. Overall EBITDA for Q2 fiscal year '27 stood at INR 126 crores, lower by 18% compared to Q2 of the previous year. Profit after tax at INR 85 crores versus INR 102 crore of quarter 2 of fiscal year '26, which is 17% lower. Approximately 43% of India received 19% deficient rain in comparison to the long term -- long period average this monsoon season, which delayed the Kharif sowing. It resulted in slower liquidation and high carryforward inventory due to prolonged geopolitical situation, channel farmers prioritizes stocking for fertilizer rather than agrochemical. Fertilizers availability had been a concern due to logistical challenge. I will talk about new initiatives and launches. During the quarter, we launched 4 new Crop Care products namely Silentra, which is an insecticide. Marcellus, a fungicide. Blitox Super, a fungicide. Trynage, a herbicide. We have altogether launched 9 new products during fiscal year '27 across categories. In seed business, we have launched 6 new products across vegetable, cotton, maize in the quarter 2 of fiscal year '27, which takes the overall tally to 15 new products in fiscal year '27, which includes cotton hybrids for North India herbicide-tolerant seed rice introduced under brand. Digital marketing interventions continue to promote products through scheme, farmer QR code rewards schemes, enhancement in and seed saver application. initiative is a retailer level digital platform to support retailer engagement and benefit schemes and enabling tighter integration between dealer and retailers. Retailer registration as of September '26 ended has crossed 60,000, including seed and common retailers. Farmer QR post project helps in better product knowledge sharing with farmers. This helps in strengthening retail farmer royalty program, sales flexibility and return tracking. Our initiative SamparkPlus continues to capture farmer level demand signal to generate actionable insight and improve sales conversion. We have reached 4.23 lakh farmers in Samparkplus through regular engagement and social media post. We had launched Idea to Impact innovation platform in Q4 of fiscal year '26 to establish an open innovation ecosystem to secure, validate and commercialize agri innovations. Till now we have received encouraging participation of 42 applications out of which 2 are in pilot stage and 28 are under review. application enhances visibility and traceability of operations and improved data availability for the season making. We're developing 2 version, which will be high-performing future-ready adn more cost effective. We are also coming with new R&D center in Navi Mumbai for which onboarding of various consultants on project as government liasoning has been completed. The project is running as per the plan and likely to be commissioned by April 27. We are accelerating the launch pipeline for proprietary research-led varieties and higher potential. Our long-term priorities include strengthening customer centricities happening portfolio choices, accelerating new product launches, expanding strategic alliances and farmer reach and leveraging digitalization to enhance operational efficiency and drive sustainable growth. That concludes my opening remarks. I will now hand over to Mr. Bhaskar, our CFO, for a detailed analysis of financial situation. Over to you, Bhaskar.

Thank you, Dr. Gyanendra. Good morning, everyone, and thank you for joining us today for our Q2 and H1 FY '27 earnings call. I'll walk you through financial performance for the quarter and half year, post which we shall commence the Q&A session. Starting with the top line for the quarter, our Q2 FY '27 revenue stood at INR 858 crores, as against INR 861 crores for the same period last year, resulting in an overall flat growth kind of. Pricing growth of 5% was offset by similar volume degrowth. Overall EBITDA for Q2 FY '27 stood at INR 126 crores, lower by 18% compared to INR 154 crores in Q2 of the previous year. Profit after tax stood at INR 85 crores versus INR 102 crore of Q2 FY '26, which is 17% lower than the same quarter of previous year. Crop Care revenue grew by 4% to INR 788 crores in Q2 FY '27 from INR 760 crores in Q2 FY '26 due to 6% price growth. EBITDA decreased by 2% to INR 126 crores in Q2 FY '27 from INR 129 crores in Q2 FY '26. PAT increased by 1% to INR 88 crores. Crop production degrew by 3% and registered Q2 FY '27 revenue of INR 457 crore vis-a-vis INR 474 crores in Q2 FY '26, which was tracked by volume degrowth of 7%. Soil plant and health grew by 22% to INR 72 crores in Q2 FY '27 from INR 61 crore in Q2 FY '26, driven by price growth of 15% and volume growth of 7%. Demand for inorganic manure increased due to short availability of traditional fertilizers and import-dependent raw materials. Going to institutional category. Total B2B revenue stood at INR 232 crores vis-a-vis INR 198 crore in Q2 FY '26, a growth of 17%, primarily due to 8% volume growth and 9% price growth. Exports grew by 2.5% to INR 165 crore. There was lower demand for AI in Europe, coupled with pricing challenges from China market. We also witnessed constrained availability of raw material, partly due to supply chain disruption and prioritize allocation to India B2C crop production business, which impacted volumes of select products, for example,. There were also delays and uncertainty in shipping time lines due to port condition and logistical challenges. CSM Q2 revenue displayed promising growth by lodging 12x growth compared to the last year, topping revenue of INR 27 crores this time, driven by rebound in PEKK sales volumes. Domestic B2B grew by 11% to INR 39 crores in Q2 FY '27 on a base of INR 35 crores of Q2 of previous year. Moving to Seeds. Seeds revenue degrew by 31% to INR 70 crore in Q2 compared to INR 101 crores of last year, Q2 FY '26. This was mainly due to 26% volume decline. EBITDA decreased almost 0 in Q2 '27 from INR 25 crores of last year. PAT decreased to negative INR 4 crores from INR 16 crores of last year in the same quarter. Placement of millet, mustard, maize and vegetables seeds were as per plan. But the acreages of paddy and cotton declined due to lack of water leading to lower placement. On a positive note, north cotton farmers reported higher productivity, coupled with healthy prices, strengthening confidence for future seed adoption and cotton cultivation. For the Rabi seed production cycles, active planning and organized engagements are underway for pearl millet, paddy, maize and sunflower. Coming to H1 performance. Total H1 FY '27 revenue stood at INR 1,880 crores versus INR 1,818 crores of H1 FY '26 last year, resulting in growth of 3%. Crop care H1 '27 revenue crore clocked INR 1,485 crores versus INR 1,412 crore of H1 last year, resulting in growth of 5%, primarily led by price growth. Seed revenues. H1 revenue stood at INR 395 crores versus INR 406 crores of last year, resulting in a degrowth of 3% occurring due to volume decline of 6%. H1 '27 EBITDA stood at INR 311 crores versus INR 304 crores of H1 last year, resulting in growth of 2%. And H1 PAT of FY '27 stood at INR 210 crores versus INR 197 crores of H1 of last year, resulting in growth of 6%. We are focused on accelerating priority brand growth through sharper market execution, targeted production -- product promotion and enhanced phygital, so it is physical and digital engagement with farmers and channel partners. In crop care, key priorities include strengthening the go-to-market strategy, expanding customer reach, optimizing the product portfolio and improving sales productivity through territory rationalization and cost efficiency. Digital engagement, customer feedback and data rate market development will further strengthen channel effectiveness, deepen market penetration and drive sustainable revenue growth and profitability. In seeds, our primary focus will be on 5 strategic crops, as mentioned earlier, cotton, maize, millet, mustard and rice. A selective and concentrated approach in these crops is expected to drive operational scale and efficiency. Overall, we remain disciplined in improving capital efficiency across both fixed capital and working capital. At quarter end, our inventory levels remain elevated in comparison to the same quarter of last year. We expect capacity utilization to remain broadly stable, with growth driven by improved product mix, operational efficiencies and high-value product offerings. We have cash liquid balance of about INR 211 crores as of 30 September '26. That concludes our opening remarks. We can now commence Q&A session.

[Operator Instructions] The first question is from the line of Rohit Nagraj from 360 One Capital Limited.

First question is in terms of the sales returns. So have we accounted for the entire sales returns during the quarter? Or will there be some sales returns will be coming in Q3? And then a question in terms of your perspective on how the channel inventories are currently? And will that have any repercussions on the Rabbi as well?

So as far as sales return are concerned, all the care-related sales return for majority of the market are completed. There might be instances in certain crops where crops -- kharif crop does not terminate by September based on the numbers we follow. So for example, crops like cotton, in south where rice planting was delayed even to August. Barring those areas wherever kharif season is over, it is over for us, and we have accounted for the returns, and we have taken provisions for the remainder of the market as well.

Right. And any thoughts on channel inventory, sir?

So channel inventory, I think -- so first of all, we are not flooding the channel. We have taken a very conscious effort this year because this year, given there was a highly uneven rainfall distribution, we have gone with a more market-based approach only place the product in the markets, where the demand water situation is certain. So it's not a uniform placement everywhere. I think channel inventory is only there to the extent it is needed to either conclude kharif season or beginning of the rabi season. So there's no extra channel inventory.

Perfect. Second question is on the seeds part. So given that monsoon has been low how are we placed for seeds availability for the 2027 kharif season? And will there be any possibility of pricing improvement for next year on the seeds part?

So seed, I think last year, if some of you remember, last year, there was a very good production of the seed because rains have terminated on time and seed production season starts from October all the way to March. And because this year seed season has been soft, I think we have a decent amount of inventory to carry forward and cater to the oncoming season. Now. ability to increase prices will depend on how the monsoon forecast and sentiments build up for the next year. I think based on what I see today, India has never seen 2 consecutive monsoon failure. So I wish and I hope that monsoon will be returning to the normal. Of course, there's a subdued what we call rainfall forecast for January, February month, which means in the areas where water scarcity is there and rainfall was expected that area will continue to suffer. But wherever there's an opportunity and commodity prices are high and product competitive -- competitiveness there from our side, we'll certainly try to see price increases can happen. The only crop price increases are not possible is cotton because it is capped by the government.

The next question is from the line of Prashant Biyani from Elara Securities Private Limited.

Sir, what explains the inflated inventory this time versus the end of H1 last year. if you can explain that, there's more relating to raw material or finished products?

So it is a combination of things. I think one thing is that when a begin, everybody was inventory was trying to get the inventory so that when it turns out to be normal, we are in the position to supply. So it may not necessarily be volume. It could be some of the -- the higher price at would have procured the inventory, and it is a combination of inventory of seed as well as crop. I think seed inventory this year is more elevated compared to crop protection. But I think all the seeds which we have in our inventory is fresh seed, which was harvested in the March, April of 2026. So it's all good inventory. But yes, because season did not turn out the way for example, cotton. Cotton, North India did not get planted. The other thing happened is that cotton areas shrink on the top of that, there's a lot of illegal which proliferated. But other crop, I think inventory is normal.

And sir, a portion of higher inventory would also be leading to higher price of raw material? Is that...

So on chemical side, yes, some of the inventory we are procuring comes at a higher price. Now this year, in the beginning of the season, we did try to pass on some of the cost increases to the customer, but season did not take off as expected. In fact, demand went down. As a result, it became unrealistic to hold on to the cost increase which we are trying to pass on.

Sir, how is your initial estimate of demand patterns for Q3?

So Q3, I think if you say North and East, if you go Indo Gangetic built all the way to the east. East, potato there's a challenge right now because see earlier, we were able to export a lot of potatoes and all to Bangladesh, that has stopped. As regards to our potato prices are low, but wheat is going to be normal given that commodity prices. Rice, certain areas in South, probably in Telangana and all where water is not available, rice may go down. Maize area is expected to be normal. But the maize area in the central part of India where it used to be dependent on water storage, I think that is going to be challenging. I think the silver line, I would say, is that while area will remain challenging, but because commodity prices are higher, wherever crop is there, farmers will try to use input to protect and maximize their income and returns. What has not turned out well this year is chilly crop because chilly prices are very high. But unfortunately, in the chilly growing area, water situation, particularly in Andhra is not that good.

Sir, for North, in particular, how is the herbicide demand preemergent? And how do you anticipate fungicide demand to be?

So fungicide, we will come to know later. I mean maybe it's a story for December, January, February, quarter 4. At this point of time, herbicide demand is strong. but there is a pressure on prices.

Okay. And sir, just lastly, what kind of liquidation growth or decline would you say you saw for your portfolio in kharif and how much would be the same for the industry?

So difficult to say as a unit for the industry. But all I can tell you, we had a very strong growth in insecticide. We also had a good growth in herbicide. Fungicide segment, which suffered when there's low moisture, fungal diseases are low, we had a good margin uptick in silane plant health business. We have been able to improve our margin on the seed business while volumes are lower. So overall, I think it depends on the company and portfolio. The products we launched as new product this year, they have contributed well. New product launches have done quite well, both particularly on insecticide, fungicide and herbicides. So from a strategy perspective, what we are saying, our strategy seems to be working and on track. Obviously, we are an agriculture and when this war, and it's kind of double event happening in a very short period, you start -- the war started and within 3 months, we had a bad news on the rain. And that turned out to be actually worse than what people expected.

The next question is from the line of Siddharth Gadekar from Equirus Capital Private Limited.

Sir, first, just on the cotton market. Can you give us a sense of what is the kind of legacy that have come into the market this year? And how much of that overall market are you for this year?

So we do a very simple math. I think cotton at the peak, had reached to almost 13 million, 12.8 million. It has come down to about 10 million, 10.5 million hectare. So progressively cotton area has come down by 20%, 25%. On the top of that, on the area which is getting planted and industry estimate is that roughly 25% to 30% of the seed. So if you say 10 million-hectare is where seed gets planted, and on an average, farmers were using 2 packets equivalent, that amounts roughly 5 crore packets. Out of 5 crores, if you take 25% to 30% out as illegal, then you are left with roughly 3.5 crore packets. So that's a big shrinkage where legal packages used to be sold on 5.25 crore packets is down to 3.5 crore. Now 2 things will happen. So I think what we have to see how illegal will perform and whether that area will continue to grow this year or it will shrink and then again will be recovery of the legal product. And the cotton acreages. I think cotton acreages in my view will rebound because cotton prices are very attractive. And -- but again, at the time of planting farmer makes the season based on the related pricing of soybean, cotton and maize. So that is very too early to forecast. But yes, cotton has been one of the most challenging crop from a seed perspective. For us, challenge came from North India planting had actually significantly reduced, and it was very, very difficult to say why it happened. But later on, it turned out that it was because farmers are not able to get good harvest because of big control and the top -- on the top of that, government was not able to release water on time for the cotton because all the North Indian cotton is dependent on release of canal water by the government. So cotton, I think if you say from a peak illegal packets, it is down to almost 30%, 35%.

And what would be our market share in cotton currently versus maybe last 2, 3 years? Have we lost any market share or legal?

So I would say we have actually held on because our volumes are marginally down compared to last year and market has shrunk so much, even in North India, in spite of -- so while our number of packets sold would have got reduced, but we have gained market share. And not particularly.

Got it. Sir, secondly, in terms of the seeds sowing. So this year, we will be going for a crop given that we have inventory, or we will build up some more further inventory.

So some production will need to take place because if you say last 2, 3 years, I was saying I didn't have enough seed because then planting happens by the time harvest happens, planting demand already starts in the planting area, so we were not able to supply. This year, last year, when we went for production, we had deliberately planned for some surplus inventory to bring it to a level where at least when you start the season, you're not waiting for the fresh crop harvest. You are producing about 30% to 50% of inventory of the following year in advance, right? So we are back to normal inventory cycle, I think while it looks elevated, but it's not the right comparison because last 2 years, we had a bad inventory situation, right? So we would be -- I think going forward, our aim would be to carry forward, particularly in crops like maize, rice, bajra and all, 150% of the requirement because then when you start the following season, you have an opening inventory. And now I think in some crops, we might have more than 150% because production also was very high. As a result, we will slow down. Doesn't mean -- but new launches, for example, you have to produce. Some of the new product launches we made last year where we did not produce a lot of inventory because you want to see the response. So at a gross level, we'll still produce something, but it may not be the same product. But it will not be the same as previous years. Yes, significantly reduced area.

The next question is from the line of Riju from Antique Stock Broking Limited.

I just wanted to get us saying that how much of our revenue is coming from the southern state like Maharashtra, Karnataka and Tamil Nadu?

I will not be able to give you state by breakup right away, but we will get back to you. I think our -- we have divided the country into something called India 1 and India 2. I will get back to you with a detailed breakup.

Okay, no problem. And in terms of the exports revenue, so if we exclude the segment and if you look at our export business appeared in the B2B segment for the city, so in the H1 number, what we have seen last year H1, so the growth has been in the negative side. So what explains that apart from the issues that are facing in the Europe market and the LATAM market. So if you could explain that?

So 2 things happened, and it's very, very complicated because we're running the business. You're always not trying to see what is right for the company and for the customer. So when war started, nobody was sure of whether there will be -- any company will be able to provide enough product to domestic market because by then this El Nino situation was not clear that how bad or good it will be. So when it came to making a decision export versus domestic, I think we were trying to balance between making sure enough product is available on domestic market, at the same time, optimizing margins and keeping customers outside also very happy. So part of the degrowth in the export market was deliberate, and we use that as an opportunity to improve the margin. As a result, our margins have not shrunk as much in export market as much as volume. So it was more trying to manage the situation then I don't think we have lost significant customers. In fact, we have added customers and we have added new products also in the export market.

Understood, sir. So sir, my follow-up question relates to exports only. So how do you see the H2 spending given the higher trade cost and the challenging environment in the. So how do you see the growth there in the exports market?

So I think a lot will depend on how this war plays out because I can tell you all of us compete with China. And China supply chain to America is much closer and much more straight forward than us supplying from India because our products cannot do pass through Red Sea and all. So they have to go around. As a result, our cost of freight, cost of insurance, time taken and availability of container, everything is a challenge. So I think to your question, how do we see going forward? I think they are dedicated customers. We will continue to serve them. We're also trying to follow with them more aggressively to get orders early so that we can bridge some of the extra lead time we need. Having said that, it's a very dynamic environment. Not only for export even importing raw material, container availability, delay shipment. So a lot of things are linked. For some certain export product, I also need a critical raw material, which might be coming from import. So I think overall, I would say there's 2 to 3 weeks, sometimes 4 weeks cumulative delay in the supply chain.

Understood, sir. And one last thing, I think in the Q4 and the Q4 con call you have mentioned that we have deliberately refer some of the automatic lower cost in the month of Feb and March. So -- but if we look at it in terms of H1 number, the number is not reflecting the low-cost inventory benefit. So if you could explain that? And along with that, I can understand that there was an issue in terms of the domestic demand which impacted the pricing of the domestic CP business. So if you could explain these things and if we didn't have the low-cost inventory benefit, then in that case, how our margin would have been impacted?

Yes. So if I may just take this question. See, the low-cost inventory benefit was already taken in Q1 because that's where the mix of inventory of last year versus this year was taken, but as we proceed to Q2, then that weighted average benefit is already lost. And this is the period when the Q2 was much more challenging than Q1 because market has already related, but that time the rains come late, and it was a reality by that time. So that's where you have to compete with everyone in terms of price.

Understood. But yes, if I can look at your Q1 gross margin, the margin roughly at around 38%, while all the last year Q1 margins that were roughly around 36%. But these had a higher growth in terms of the in terms of seeds business and the seeds business. So I'm not being able to understand this equation to production.

See, when you see margin at a total level, the mix of products also make a lot of difference actually. And each of them have a different margin profile. So depending on which of this material has gone in excess, that's how it's going to decide. Domestic both the cases, the mix of product is always different. And in our case, if you see fungicide is supposed to be the best of products for us, and that's taken a beating.

Understood. And sir, if you could break down your seeds revenue by the crop that will be very much helpful.

So what breakup you want?

Seeds revenue by the key crops.

So seed, I think now, I would say corn is as big as cotton. So corn, I mean, cotton is still the largest, but corn is pretty close to that followed by, obviously, rise and millets.

The next question is from the line of Ajay Sharma from Prescient Equity Fund.

Sir, my question was regarding the -- in your earlier comments -- in the starting comments, you told that the exports have increased. Can you give the new data and which have increased our exports. And despite in the export market?

So your line wasn't very clear. Bhaskar, did you follow?

Yes, yes. I followed. See, if you are specifically asking about Q2, we have done well on the CSM side of it where we have -- that's an export actually. The PKK is an export item.

So on exports, CSM has done well, and that also helps us protect our margins.

No, sir, basically, which continent we have done?

Okay. Majority of our exports are basically to Americas, and now we are trying to -- in fact, we have added resources in ASEAN as well as Africa and we have started signing new contracts. So we expect now besides Americas also some volume and revenue to start coming from other world areas. But right now, I would say it is bulk of it is to U.S., Brazil and those countries.

Despite have the acreage has gone up?

In India, no, they have significantly reduced.

Not India, in the exports market?

In exports market, yes, I mean, many countries have suffered. U.S. probably had one of the driest planting season this year. Now Latin America season is just beginning there in South. There have been challenges in many markets. And that's why commodity prices are trending up.