Sharda Cropchem Limited (SHARDACROP) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Sharda Cropchem Limited Q3 FY '20 Earnings Conference Call hosted by Antique Stockbroking. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Manish Mahawar from Antique Stockbroking. Thank you, and over to you, sir.

Yes. Thanks, Melissa. On behalf of Antique Stockbroking, I would like to welcome all the participants in the earnings call of Sharda Cropchem. From the management, we have Mr. R.V. Bubna, Chairman and Managing Director; Mr. Dinesh Nahar, GM, Finance; and Mr. Jetkin Gudhka, Company Secretary on the call. Now I would like to hand over the call to Mr. R.V. Bubna for opening remarks. Over to you, sir.

Thank you, Manishji. Good day, ladies and gentlemen. A very warm welcome to everyone present here for the earnings call of Sharda Cropchem Limited for Q3 and 9 months for FY '20. Sharda Cropchem is represented by myself, Ramprakash Bubna, Chairman and Managing Director; Mr. Dinesh Nahar, General Manager of Finance; and Mr. Jetkin Gudhka, Company Secretary. Talking briefly about our third quarter results, revenues declined by 18.7% year-to-year from INR 470.7 crores to INR 382.7 crores in Q3 FY '20, mainly due to degrowth in Europe by 9.9%, NAFTA by 30%, and Rest of the World by 29% year-on-year. On the other hand, LATAM grew by 87% year-to-year. During Q3 FY '20, our volume grew by 7.3% year-to-year. Gross profit declined by 37.6% year-to-year -- I'm sorry, 31.6% from INR 132.8 crores in Q3 FY '19 to INR 94.5 crores in Q3 FY '20. The gross margin contracted by 47 bps -- 467 bps, sorry, year-to-year from 24.7% in Q3 FY '20, mainly due to challenging market environment in Europe and NAFTA. EBITDA declined by 40.9% year-to-year from INR 51.2 crores in Q3 FY '19 to INR 30.3 crores in Q3 FY '20. During the quarter, EBITDA margin contracted by 298 bps to 7.9% in Q3 FY '20 due to lower gross margins. Profit after tax stood at INR 5.9 crores in Q3 FY '20 as compared to INR 20.3 crores in Q3 FY '19, mainly due to higher depreciation of INR 33.9 crores in Q3 FY '20 as compared to INR 23.3 crores in Q3 FY '19. Net working capital days stood at 84 days in Q3 FY '20 as against 59 days in Q3 FY '19. Net cash balance as on 9-month FY '20 stood at INR 256 crores as compared to INR 208 crores in 9-month FY '19. With this brief overview, I would now like to hand over the call to our General Manager, Finance, Mr. Dinesh Nahar for discussing our financial performance. Over to Mr. Dinesh Nahar.

Thank you, sir. A very good evening to all. I will give you a brief about the Q3 FY '20 performance. During Q3, our revenue degrew by 18.7% year-on-year, this was due to unfavorable product and price variance by 25% and a decline in foreign exchange by 1% year-on-year in Q3 FY '20. However, our volume grew by 7.3% year-on-year. During Q3 FY '20, our agrochemical business revenue degrew by 17.8% year-on-year due to a decline in revenue in Europe and NAFTA regions. However, our revenue grew in LATAM and rest of the world. Our non-agrochemical revenue declined by 22.5% year-on-year. Cash profit for Q3 FY '20 stood at INR 39.8 crores as compared to INR 43.6 crores in Q3 FY '19. We incurred a CapEx of INR 123.9 crores in 9 months FY '20, vis-à-vis INR 100.8 crores in 9 months FY '19. Thank you. We now open the floor for the questions.

[Operator Instructions] We have the first question from the line of Bharat Gupta from Edelweiss.

This is Nihal Jham from Edelweiss. Sir, the first question was on the Europe region. You mentioned that because of the current weather condition we have seen a fall in the revenues, I am speaking specifically for the agrochemical segment. Now the season already started and Q4 being a biggest quarter. Just wanted to get a sense of how the revenue traction is coming along? And is it that weather impact will end up leading to a Q4 also being muted in that region?

Well, the signs of Q4 are better, and we hope to do better in this quarter.

Sir, is it possible to elaborate that what has changed in the last 1 or 2 months, the Q3 muted performance is changing into a better performance as you're expecting in Q4?

See the main factor is due to the weather, the autumn was not very good in Europe as well as in U.S.A., but the spring is appearing to be good. And we are having a better order booking position now than it was in the previous quarter.

Sure, sir. Sir, second, on the NAFTA region, I think, as you mentioned last quarter, a big reason for the fall, as you said, is because of the issues related to U.S.-China trade war. Would you attribute that mainly to the fall in revenue? Or is it that the weather also had an impact in that region also?

I would say both, but the U.S.-China trade war had a very big dampening effect on the sale of agrochemicals in U.S.A.

Fair, sir. With resolution coming along, at least the stalling of further duties being installed. Is there a possibility that the growth could come back in the coming quarters? Or it will still take time in this region?

I think that will take time. Because this will, if at all something happens, this will be only in the new imports, which -- need minimum 3 to 4 weeks, just a transit time. So for the new goods to arrive there and find acceptance, it will be also a little late for the spring. Because for the spring, most of the purchases are done by the customers in the first say February and March. So we are likely to miss the season of spring for the new trade war settlement to take an impact.

Sure, sir. And just one more question on the margin side. We've obviously seen a gross margin contraction. Is that completely attributable to the change in mix because Europe and NAFTA as a region has reduced? Or is it that we still see technical prices increasing, and that is also pressuring our margins?

No, technical prices are not on the increase. Technical prices are fairly stable, or I would say they are slightly on the downward side. But the main thing is demand and the customers -- I mean customers and farmers are offering a lot of resistance for the increase in the prices due to higher taxes in U.S.A.

Sure, sir. Sir, just last question from my side. If I look at the break-up of revenues, you mentioned, that the volume growth was 7%, but what has led to a negative 26% price/mix change? Is it mainly that we've seen a lower category of products being sold? Or is that a pricing be or reduction that we've taken? If you could just elaborate further on that also.

I would say, an element of frustration on the part of many players who want to just get rid of their stocks and who are beating down the prices.

So are we seeing this trend continue ahead also because then we could see pricing pressure continue at least for the next few months then?

No, the law of natural variation of statistics says that it cannot continue for very long. I feel that there will be some reversal of this trend.

[Operator Instructions] We have the next question from the line of Chetan Thacker from ASK Investment.

Sir, region-wise, what was the gross margin in the current quarter? If you can share that.

Just 1 minute. So the gross margin in European region was 37% as compared to 40% last year. NAFTA was 17% compared to 27%. LATAM, 26% compared to 15% and Rest of the World 33% compared to 23% last year.

So broadly, the correction that is there in Europe and in NAFTA. So NAFTA, is it a function of the duties because of which prices have to be adjusted and duties have to be absorbed by us? And in Europe, is it just a function of prices because people want to get rid of inventory?

You answered my question, sir. Those are -- in NAFTA, it's mainly because of the duty and the farmer's reluctance to bear the duty and ultimately, the distributors or sellers had to do that. And in Europe, a little bit of desperation on part of few players.

So Europe margin can recover once their inventory is cleared. So [indiscernible] margin [indiscernible] adjust, and NAFTA will take its time?

NAFTA will take more time.

Okay. And sir, [indiscernible] region-wise, if you can share the volume for this quarter?

One minute, sir. Well the volumes in Europe were INR 18,67,000 compared to INR 19,93,000, so there is a degrowth of 6%. In NAFTA, there are about INR 16,73,000 compared to INR 20,70,000, which is a degrowth of 19%. In LATAM, it is INR 8,23,000 compared to INR 2,31,000. So this is an increase of...

2.5x.

2.5x. You can say, 200%. Rest of the World, it is INR 9,67,000 compared to INR 6,75,000, which is an increase of 43%. Overall, it is INR 53,30,000 compared to INR 49,70,000, which is about 7.3% increase.

And sir, in LATAM, the growth is coming from which particular country?

One second. In LATAM, it is coming from Brazil, Peru, then Ecuador and Bolivia.

So Brazil is a larger contributor there?

Yes. Brazil is a larger contributor.

And sir, I missed the last quarter volume number also, if you can give that, that will be very helpful. Q2 FY '20?

Q3, you mean?

No, sir, Q2. September quarter FY '20?

That would -- I mean, I don't have it off hand with me, but we can give it to you later on.

We have the next question from the line of Vishnu Kumar from Spark Capital.

Sir, my first question is, if you want to -- if you have to place the product in NAFTA and Europe in the fourth quarter, by when you should have started the purchases? And if you could just tell us broadly the time line when you do a PO? And when the product goes to those regions?

We've already done most of the purchases for the Q4 and NAFTA regions. Because in NAFTA region the people want the product, at least 1 or 2 months before application, and this is in their own warehouse. We have to take the product, get it formulated, packed and keep it ready, and the customers come and they want the delivery on the next day. So we've done most of the purchases for Q4 in NAFTA region.

Okay. So which means that if you have to place the product between Jan to March, your purchase price would have been -- your technical purchases would have been prior to September, October rates or November, December rates?

I would say, September to November period.

Okay. So if you -- okay, this is the window where you buy and you formulate and it has to be in the market by that time?

Yes, sir.

Last year, we did kind of -- I mean, if you have to take the Q4 run rate, I mean, last year, we did about INR 750-odd crores. Do you think that -- I mean, based on the current run rate, at least, how does it look like for this particular season, sir, I mean, this quarter specifically? Because this is the biggest quarter.

Sir, we are hoping to reach the same level, one minute. I think we will reach around same level of about INR 750 crores.

Okay. We'll reach the similar levels in the current quarter?

Yes, sir.

Okay. Sir, you also mentioned that prices are gradually coming down. But would you have the benefit of the prices? Because you mentioned that September, November is when you had procured and prices have probably have started coming off from November, December or January. So when will we, as a company, get the benefit of lower cost reduction?

Sir, not in the fourth quarter, but there's also a seasonal factor. The demand for these products is lowest in the third quarter. So when we do the buying, in the third quarter, that is the lowest rates. In the fourth quarter, the demand from the Chinese local markets and others go up. So the prices are on the rise in the fourth quarter. Have I answered your question, Mr. Vishnu?

No, not really, sir. My question was that because that you had procured this for the fourth quarter, you had procured in the third quarter probably when prices were still not coming down. So which means that the margin benefit, will it come in the fourth quarter? Or is it only that the next year, we will see some margin benefit of the reduction in prices?

See the purchases that we have done in the third quarter, has also been very good because the seasonal factors, the prices in the third quarter are the lowest. So we have been able to take advantage of that seasonal factor. If we have to buy the same products in this quarter, we would be ending up paying more because there's a lot of demand coming from various sources in general. So we are better off having bought in the third quarter.

Okay, sir. Sir, how structural are you seeing this prices come down, because you're also mentioning that fourth quarter, some amount of prices may come back because there will be more demand. Are you, as a block, seeing this prices come down next year? And in your sense, at least, will there be a 10%, 15% correction for next year and the year after? How are you seeing the Chinese because you're talking to a lot of these customers there who are supplying products? Do you see that generally prices will start going lower over the next 1, 1.5 years?

As I see, the prices in the fourth quarter would be lower than the same -- the prices in the same fourth quarter last year. And so is the case of the first quarter of financial year, the prices will be lower compared to that period last year.

Okay. So this is because you are seeing better -- the new factory starting up or because there's, I mean, or put it differently, lack of demand or something of that sort? Are you seeing structurally, this is going to play out, so -- we have -- the peak of the prices is behind us and we're not going to see it again. Is that the right assessment?

No, I think the right answer is that the factories, the restriction is that factories had to produce, those restriction have been removed more or less. So the availability is more than the demand.

Okay. Is it a temporary -- I mean, the restrictions, and which mean they are removed, is it that temporary restriction has been moved, which can come back? Or factories have been resited on the new locations and they have started?

The factories have also relocated themselves. And those situations coming back. In my opinion, the chances are remote.

Okay, sir. Got it. Okay. Sir, my next question is, again, for the first 9 months last year, this is for December 2018, we did almost about INR 70-odd crores, now we have done only INR 23 crores. Obviously, there are a lot of reasons behind this. Do we see from next year onwards, at least we will be definitely on the growth path? And any rough guidance you could give that we may be at least see this kind of growth in top line margins or any of that sort for the next year?

Sir, I can only give you overall impression. I feel that if the situations remain the same and the China-U.S. trade war gets cooled down, then the things will be better next year.

Okay, sir. And sir, if you could just give the CapEx done till -- for the first 9 months?

I think I had already stated in my written speech, the CapEx then as of December 31 is INR 124 crores compared to INR 101 crores last year.

And for full year, how much we'll be doing?

Pardon me?

Full year -- for full year, how much will we end up doing for the full year?

Full year, we hope to do between INR 150 crores to INR 170 crores.

INR 150 crores to INR 170 crores. Got it, sir. Sir and I just missed the margin, when you mentioned region-wise, if you could repeat that, sir.

One second. In Europe, the margin is 37%. NAFTA region, 17%, LATAM, 26% and Rest of the World, 33%. Overall...

Sir, comparable numbers also.

Overall -- comparable number I'll tell you. In Europe, 37% versus 40% last year. NAFTA 17% versus 27% last year. LATAM 26% versus 15% last year. And Rest of the World 33% versus 23% last year.

[Operator Instructions] We have the next question from the line of Chirag Dagli from HDFC Mutual Fund.

Sir, for the first 9 months, Europe sales in euro terms have been flat. And Q4, we are getting into a weak base last year. So how should we think about the fourth quarter, specifically for the European region? If you can give us some sense whether this will be a significant growth? Weak growth?

Sir, as I look at the order book position and demand, I think we should be able to do the same as last year in the fourth quarter in European region.

So we should be flat Y-o-Y in Europe?

Yes. There could be a 5% plus or even 2%, 3% minus. But generally, it should be flat.

Okay. And sir, when you -- when one looks at the gross margins in Europe. Historically, we've been 47-odd percent, 45%, 47% and now we -- last year, in FY '19, if my numbers are right, we were at 43.5%. Is there any outlook that you want to give for the full year? What sort of gross margin should one sort of bake in?

One minute, what is that?

For Europe, gross margin, sir.

Europe?

Yes.

Sir, I'll tell you in Europe, the overall gross margin is about 37.1%. And if you have a breakup of between agro and non-agro, agro has been about 40.6%, almost 41%, and non-agro is about 22%. I feel as far as the agro are concerned, we should be able to cross this 40.1%, our margin should be higher overall for the whole year.

For the whole year you should be able to do more than 40%?

More than 41%.

More than 41%. Okay. And sir, in U.S. if you can talk a little bit about how our pipeline is looking, especially in new products, you know what is the outlook looking like for some of our key products?

Well, the pipeline is good. We are continuously investing on new registrations and receiving them. But somehow, the market is very complicated. More than 75% market is controlled by the big 4 distributors and the generics are fighting for the balance, 20% to 25% market share. So it's very -- to get the margins, it's a little tough, but we hope it will be better.

Have we resolved our Acetochlor formulation issue, sir?

Yes, sir.

So the product is now available in ample supplies in the market?

Yes, please.

Okay. So it's only a matter of time that this picks up, sir?

Matter of time. And again, there is a less of demand in the sense that we are not able to get good margins because the multinationals, the main competitor, they fill up the stocks of the customers in the month of June, July for the next year. And they give them a very long credit. Somehow, we are trying to learn the market and try to improve, but the margins are -- we are not very happy with the margins.

So this Q4, we won't see a big pickup in Acetochlor.

Well, we may be able to sell the goods, but not a very good margin as we want.

We have the next question from the line of [ Vishal Gugnani ], an investor.

I caught in your initial comments that one of the reasons for lower profit is higher depreciation and it was quite a substantial increase in the depreciation. So is this because we've got a lot of new registrations that we are going to expense out now? Or is it that we've spent significantly on the registrations in the recent past? If yes, can you elaborate on which registrations these are? And for which markets?

See, we had capitalized a lot of registrations last year. So this is the impact of the previous year as well as new registrations that we are getting this year. Our CapEx this year is about 25% more than what we did last year.

Could you elaborate on which key markets these are?

Yes. They are mainly in European region and NAFTA.

[indiscernible]

No, that I -- I don't have the details. But I can only tell you that it's mainly in Europe and NAFTA region.

We have the next question from the line of Nitin Agarwal from IDFC Securities.

Sir, in the last 2 years, in particular, while the global agrochemical market has been a little choppy for the last 3 or 4 years now. We've had particularly relatively more severe pressure on our business model over the last 2 years. So when you sort of look out the next 2, 3 years. I mean, how -- do you think there's any -- I mean, with the changes that are happening in the industry, I mean, how do you feel about the business model that we have? Do we feel any need to tinker it in terms of any geographical focus? Or anything we incremental need to do to grow incrementally from here on, sir?

We have people down the line. They are very optimistic and very positive. And I don't think that we can do much of a tinkering. The core sector of businesses, our model is to get registrations, which we are successfully getting. So we should look forward to a better performance in the near future.

And sir, in terms of the geographical focus, we continue to do well in Europe. But NAFTA, you alluded to the fact that in U.S., it's difficult to get a market share, given the way the market is structured in terms of the big guys there. And so how should we look at -- how do you look at U.S. for the -- on an outlook on a more long-term basis, sir in terms of harsh. Do we see a way around these challenges there in the U.S.?

See, we have been able to do -- perform very well last year. This year, there have been some challenges, but I think there is a good time after every challenge. So we hope to do better next year in U.S.

Sir, the LATAM, we know -- is there anything differentiated we're trying to do in LATAM? Or LATAM is also the way we've grown probably -- we believe the same template for growing in LATAM also as we've used in Europe? Or given the fact that the market has its own peculiarities in terms of the customer channels. Do we need to do anything different there?

No, we've put more efforts in Brazil and in some other countries in LATAM. And they have given us the result. So we have performed well in terms of volume as well as in the margins.

Okay. And sir, lastly, how -- it is -- with the challenges which have come in China over the last couple of years, I mean, has there -- what do you experience with respect to the sourcing of products? Has it become more difficult? Or in terms of more the supply chain uncertainty has made it a little more difficult on that part? Or...

No, sir, it is not difficult, it's getting easier. As I explained earlier, the production is increasing, and the availability of the products is also increasing. So that makes the sourcing more easier.

We have the next question from the line Tarang Agrawal from Old Bridge Capital.

I just wanted to get a sense on what are your -- what is your average registration expenditure per product? If there is a broad average?

Mr. Agrawal, it would have been very nice if I can answer this question. So there is no real answer to your question. The expenditure per product depends upon the product itself, and the territory, the region where you are doing it. It can vary from maybe INR 1 crore to INR 10 crores. It's very difficult to say per product on an average.

Okay. And once you put in that registration, what is the kind of turn that you expect from the product? Generally, when you are filing in for registrations?

I didn't understand your question correctly.

Sir, if you say, registered a product for INR 5 crores. Generally, prior to registration, what is the market potential of that product that you see, which sort of incentivizes you to go in for registrations?

Mr. Agrawal, it all depends upon on what figure you want to put. The potential -- potentials are used, if I'm investing INR 5 crores, I can look forward to a return of INR 20 crores. And after I get the registration over a period of next 5 years. But this INR 20 crores can come down to INR 10 crores or it can go to INR 22 crores.

Okay. And sir, in terms of your current registrations, which are -- products, which are up for registration, how many products are up for registration?

The number of products in the pipeline are about 1,013 as on December 31.

[Operator Instructions] We have the next question from the line of Bharat Gupta from Edelweiss.

Sir, Nihal here again. Sir, I'm guessing that the reduction in creditor days is mainly a factor, as you said, that because of the tightness in supply that was happening in China. As you mentioned, with the situation improving, and your factories coming on board, is there a potential that this could reverse in the coming days?

See the Chinese normally, they don't give credit and they don't give a longer credit. So I mean, from that point of view, the credit period is going to remain the same. We had a credit of, one minute, 125 days last year, it has come down to 112 days this year.

Yes, sir. So is this a choice from our own side, because when I look at the data a couple of years back also it was close to 150 days. So going forward, our working capital days would be similar to the range that we've done in Q3?

I think it will be the same range as we are doing now.

Sure, sir. And just the last follow-up on that. I think in the earlier discussion, you had mentioned that the MNC end up placing the products much earlier in the system and they end up giving credit days, which I think would be one of the reasons why they must be seeing better sales compared to us. So do we have a thought of increasing our receivables or our debtor days outstanding to drive sales in the future?

No. Please repeat the last part of your question.

Yes, sir. I was saying that in our -- in the earlier discussion on the call, you mentioned that most of the MNC companies end up placing their products much earlier in the system. And they end up giving receivables or at least the credit days outstanding for a much higher period. So is there a chance that we could also extend our credit period to the system to drive sales in the future?

No, we cannot match with them. Because they are in a different atmosphere, we have a lot of regulations, and we have to comply with a lot of regulations in India. So we cannot give a very long credit even if we feel that the customer is safe.

Sure. Has it happened that over the last couple of years or, say, 4, 5 quarters that the MNCs have got significantly aggressive with their receivables?

This is what I feel. The MNCs are getting more and more aggressive and more liberal in giving credit.

[Operator Instructions] We have the next question from the line of Deepak Kolhe from B&K Research.

Sir, can you please give the registration as per geographic wise?

Beg your pardon?

Sir, registration pipeline geography wise?

Yes, sir. Europe region it's INR 720; NAFTA region INR 85; LATAM INR 142; and Rest of the World INR 66.

And sir, so how is the inventory situation currently? And can you please give some color on that?

One minute. Well, the inventory situation is 103 days in this -- I mean, on 31st December 2019, as compared to 92 days in the same period last year.

I'm sorry to interrupt, sir, the current participant line has got disconnected. So we will move to the next question. And once they come back, we'll put them through. We have the next question from the line of Somaiah V from Spark Capital.

Couple of questions. Sir, based on your explanation on the procurement cycle. So is it right to say that we had a high-cost inventory impact, which impacted our gross margins this quarter?

Can you repeat your question once again, sir?

Sir, based on the procurement cycle that we follow 3 months to 6 months ahead of the placement season. So probably we had bought out our inventory at the time of peak technical prices. So that kind of had an impact on our gross margin this quarter. Is that the right reading?

No, I won't say so. Our procurement policy has been more or less the same in the last 2, 3 years, subject to availability of the goods. And our procurement policy, this year, we feel will have a positive impact in Q4 this year.

Yes, sir. So for the current quarter, our gross margins have dipped for this -- for the current quarter, whatever we have placed, we would have probably bought 3 or 4, 5 months back, where the technical prices are on the rising trend. So is that one of the reasons we had high-cost inventory stacked up, which kind of impacted sir, this quarter?

I won't say that the current inventory is high cost. I think our current inventory is reasonably positive.

Okay, okay. Sir, and also, can you give some color on the channel inventory in both the key markets, U.S. and Europe? So how has this been after the weather impact? So is this still elevated? Or we are seeing people giving a lot of discounts and getting the inventory clear in both these markets?

Channel inventory, meaning Sharda inventory or the trade inventory?

The overall inventory in the system, sir. In both U.S. and Europe?

It's very difficult for me to comment, sir.

Okay, sir. Sir, this U.S.-China trade deal, what we are -- this is the first phase, so what -- I mean, I understand that probably for this season -- I mean we have to probably wait. So what is the kind of positive impact that this could bring for us in North America, sir. We've talked about having a negative impacts on duties. And also what is the kind of volume shift this could bring for us in North America?

Yes. Not had a chance to go into the details of this trade deal, but if it is involving reduction in the additional duties that the U.S. government had put, then you could have definitely a positive impact on the agrichemical market.

Okay, sir. Sir, on the working capital, so you had given -- point us on the working capital movement. So overall, you think things have changed between the way things were in Q3 last year versus now. So we have a shift in working capital. I mean, that the days have gone up. So I mean, overall, do you see things have changed? And what is your outlook for probably next few quarters?

This working capital number of days is a technical calculation. But I feel, today, the situation is better than last year.

Okay. Sir your -- on the tax rate, I believe you had mentioned that you will wait before you move on to this newer, lower tax rates, so that still continues?

No, no. I didn't understand. We were not waiting for any newer tax rates. You mean…

25% -- the 25% lower tax rate adoption?

In the Indian context, for the income tax you are talking about?

Yes, sir. Yes, yes.

No. We are going to continue with our old tax rate because we have a lot of incentives to encash upon.

Thank you. Ladies and gentlemen, that was the last question. I would like to hand the floor back to the management for closing comments. Please go ahead, sir.

Hello. I would like to thank all the participants, and thank you very much for a very informative and lively question-and-answer session. And we hope you'll continue to be in touch. Thank you very much. Thank you, everybody.

Thank you, gentlemen. Ladies and gentlemen, on behalf of Antique Stockbroking, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines. Thank you.

Thank you.