Som Distilleries & Breweries Limited (SDBL) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Som Distilleries & Breweries Q4 and Full Year FY 2020 Earnings Conference Call. [Operator Instructions] Please note that the conference is being recorded. Joining us today on this call are Mr. Deepak Arora, CEO; and Mr. Nakul Sethi, Director, Finance and Strategy. Before we begin, I would like to mention that some of the statements made in today's call may be forward-looking in nature and may involve risks and uncertainties. For a list of such considerations, please refer to the earnings presentation. I would now like to hand the conference over to Mr. Deepak Arora for initial comments. Thank you, and over to you, sir.

Thank you. Good afternoon, everyone. I would like to welcome you all to Som Distilleries & Breweries Limited Q4 Full Year FY 2020 Earnings Call. These are unprecedented times, and I hope you all are safe, keeping -- safe and healthy. During today's call, I will discuss the performance highlights, industry environment, and outlook for the company. I will then hand over the call to Mr. Nakul Sethi, Finance and Strategy Director, for a detailed discussion on the performance, post which we will open the call for an interactive Q&A. Our results for the first 9 months ended December 2019 were incurable. The outbreak of pandemic of COVID severely impacted fourth quarter performance. The impact was predominantly felt in the month of March, which is the start of the peak season for the beer industry. During the year, we recorded a total income of INR 4,635 million, an increase of 16.8% compared to the same period last year. The revenue increase was driven by volume growth. Beer volume grew by 12.6% to 85.5 million cases and IMFL recorded a growth of 22.7% to 11.9 million cases. EBITDA for the year was INR 479 million, a decline of 9.2% compared to FY '20. And PAT declined by 23.9% to INR 150 million. The impact on profitability was primarily attributable to loss on sales on account of the outbreak, coupled with inventory write-off to the tune of INR 80 million. As you are all aware that beer has a limited shelf life and no sales during the lockdown, we had to take this appropriation. As you are already aware that our peak demand season was dominated by lockdown and other related restrictions, we expect this to reflect on our Q1 FY 2021. For the month of April, we had zero sales. However, we have some momentum in the month of May and June. We believe that the remaining part of the fiscal year, we will be able to record year-on-year growth. However, first quarter being the peak season accounts for a majority of our annual revenue. We expect FY 2021 top-line to see a decline compared to this year. At this stage, it would be difficult to ascertain the quantum, and we will update once we have more clarity. We ensure profitable operations during FY 2021. We have decided to primarily start focus on profitable markets and not on relatively new markets. In addition, we are undertaking various other measures to ensure operational efficiency. We would also like to inform that despite the challenging environment, the initial response to our recently launched Woodpecker has been very encouraging in a very limited [ PI ] as gross sales volume of 2 lakh cases. We plan to expand the reach of the products in the coming months. The pandemic has created short-term challenges for the broader markets, but we are confident of restoring normalcy in the medium to long term. Our May and June 2020 sales has given us some good initial hope, and we expect that the situation should improve furthermore relaxations are allowed at retail and the wholesale operation. Thank you. And with this, I would like to hand over the call to Nakul Sethi.

Good afternoon, everybody, and welcome to our quarter 4 and full year FY '20 earnings call. Our consolidated total income for the year was INR 4,635 million, representing an increase of 16.8% compared to last year. Our beer revenue increased by 17% to INR 3,807 million. IMFL revenues stood at INR 788 million, representing an increase of 26.7%. In FY '20, realization per case for beer was INR 4.45 compared to INR 4.29 last year. IMFL realization stood at INR 6.59 per case compared to INR 3.69 per case in FY 2019. Consolidated EBITDA for the period declined by 9.2% to INR 479 million. EBITDA margin for the period was 10.3%. Our profitability was impacted by lower sales in March, coupled with higher COGS due to the write-off of inventory. A loss on account of this write-off was approximately INR 80 million, which is equivalent to a margin loss of over 200 basis points. Consolidated PAT for the period was INR 150 million, a decline of 23.9% compared to FY 2019. Both our Karnataka and Odisha subsidiaries generated operating profit during the year. As of 31st March 2020, total debt stood at INR 2,202 million, and cash and cash equivalent was INR 219 million, representing a net debt of INR 1,983 million. Gross debt-to-equity was 0.69x and gross debt-to-EBITDA was 4.59x. The increase in debt was attributable to the last tranche of INR 350 million for our Bhopal expansion and higher working capital on account of lockdown. Our flagship brand, Hunter, recorded a volume growth of 10.4% to reach 35.9 lakh cases compared to the same period last year. Black Fort recorded volume of 14.4 lakh cases, a decline of 23.9% compared to the same period. Our mass brand, Power Cool, recorded a growth of 41.4% to 31.6 lakh cases in FY 2020. IMFL business recorded a volume growth of 22.7% to 11.9 lakh cases. Due to the challenges posed by the pandemic, the Board has decided to preserve cash and not to announce any dividend. The company has also decided to give -- not give any annual increments to the senior management during the year. We continue to evaluate the situation on a regular basis and will take necessary steps to overcome the challenges. With this, we would like now to open the floor for Q&A. Thank you so much for your patience.

[Operator Instructions] The first question is from the line of Vijay Ramchandani from Pragya Equities.

I have few questions. If you can just quantify the impact lockdown had in our sales for the quarter, on a sales as well as profitability?

So I mean how do I quantify it?

So basically…

Normally, I'll tell you that would better ahead starting -- started having an effect from maybe about 10th or 11th of March on the dispatches. The Bhopal, we had effect starting from 16th. Odisha also the same time.

Okay. Because I was just trying to understand because the lockdown was for just 10, 15 days of March. What would have been the impact of same on the numbers?

See, I mean, if you look at, I mean, we did about INR 114 crores, INR 115 crores of sales in last year in the March quarter. And I think we could have easily done another INR 35 crores, INR 40 crores of sales if we would have got a clear run.

So Vijay, what happens is -- let me add a little bit to that. What happens is the last 15 days, you are actually stocking up for the season because there are a lot of renewals at the retail level as well. So when you are stocking, you actually start stocking up from November, December. And that's when you're supposed to realize the sales in March, April, May actually, the stocking, which you do in November -- from November onwards. So the -- while you can quantify case on case sales, but the impact is much larger. It's because of the built-up inventory.

Okay. Have you witnessed restocking post ease of lockdown from month of May? I mean have you witnessed that?

No, because -- we have not witnessed that because the industries in some of the markets are down by more than 60% on a pan-India basis. The beer sales in total are down by over 50% to 60% pan-India. So there is no question of restocking. It's in fact the other way around where stocks are stuck in the depot levels, at the wholesale levels because the sales have not picked up.

Okay. So what would be our plant utilization as on today?

Plant utilization on a consol basis is less than 30%, right?

Less than 30%. Okay. So regarding our Bhopal expansion, are we still going to go ahead with that because of the current scenario?

Yes. I mean, like any other industry, we were geared up for growth to deliver on the season this year. And it has -- while that has been, as I said in my briefing that it's a short setback. But it's not a long-term setback. And we will definitely be looking at getting back to normal capacity utilization levels. And the expansion was done, keeping in mind that -- of realizing more share from our organic markets, such as Delhi, MP, Chhattisgarh, all that. Yes.

So we are going to target and still complete the expansion of Bhopal this year itself?

Yes. The Bhopal plant is -- the expansion is about 95%, 96%. Most of the money has been given. So there's not much to be incurred there.

Okay. So also, you mentioned that you will be focusing on only profitable markets from here on to control costs. I just want to understand which are the markets that you're going to let it go and what are the sales that will be -- that we have to let it go on those markets?

So it's not about a question of letting it go, it's a question of scalability of operations. While we are always planning to be a pan-India brand, and we have already started working towards that, there's no question of going back on that. But at the same time where we have to deliver markets which are not -- which do not have a organic brewery in place. We would just be scaling down the operations for the short term. So that once the demand recovers, we can come back. Yes.

Okay. Okay. And do we have margin guidance for FY '21? Any target or something?

I think it is too early to comment on that given the circumstances right now. And how far does the COVID actually gets relaxed and the impact on the industry for the same.

Okay. And last couple of questions, if I may. If you can provide brand wise sales for Q4 FY '20 because the presentation only had for 12 months?

Yes, we can give it to you.

Okay. I'll take it separately from you, sir. One last question, sir. Can you explain the rationale behind subdivision of shares? I mean, I don't understand our share price has already come down by 75% from its peak, it was 2 years back. What is the rationale exactly?

Well, it's -- we are going to take approval in the AGM in September. Then we'll have 1 year to do it. So maybe we can then explain the rationale after a year or so.

The next question is from the line of [ Ridhi Updesh ] from Banyan Capital.

[Technical Difficulty]

Hello. Sir, sorry to interrupt. Your voice is cracking. We're unable to hear you.

Okay. Is it better now?

No sir. It's still the same. The next question is from the line of [ Abhishek Agarwal from Gems Quest Capital ].

Yes. Also from -- since last few quarters, you've said that we are bullish on exports and you also had planned for U.S. markets, if you hosted there. And I guess we also launched our brand in Singapore and Mauritius if I'm not wrong. So how has this done in those markets? And what are our plans basically?

We are very clear on the export strategy. See when the product gets accepted worldwide, from an Indian company, it's a big thing because there's a testament to the company's quality at the world stage. And as far as that goes, we have been constantly supplying through our distributor network in places like New Zealand, U.S.A., Scandinavian countries, and the Middle East as well as Africa. While these markets have consistent demand, it is at the same time a little volatile right now. So if you take an example of Singapore, for example, as reported, Singapore came out of the lockdown, then went back in lockdown, then came back and then went again in lockdown. So it really depends on the country's position right now. While the countries outside India are open as they do not consider beer to be -- it's not a bad thing to consume during COVID. Although there might be medical restrictions on it, but at the same time, it's widely available. So there is no hampering on the distribution. So we would see consistent demand provided that there are no spikes, and it depends purely on the country to country basis. We are already started exporting. This quarter also, we have exported in the back end of the quarter when the ports opened up in India. So we are very much focused on that, and we'll continue to export.

Okay. Sir, one last question. How much of exports did we do in quarter 4? And also going ahead, how much of sales as a percentage of our total revenue do we see in terms of exports? Obviously, when the situation normalizes.

I think for the full year, we did about close to 2.5% to 3% of a sale in exports.

And sir, do we have any plans? I mean, what kind of export do we look at going ahead in terms of percentage of sales?

Sorry.

This would be better than last year in terms of value as we are also exporting a lot of IMFL. But as I said, it completely depends from country to country, how they look at it. And if they are open for 12 months, we are very confident of doing better this year versus next year.

The next question is from the line of Runjhun Jain from Nirmal Bang Securities.

Am I audible? Hello?

Yes, Runjhun. You are audible.

Sir 2, 3 questions. First is about the [ compressed ] cost prices. So how the bottle prices and the barley prices have been shaping up? And our barley concept was due in March. So what is the status?

So the impact has been on 2 accounts. One, since the demand -- peak demand is gone, so we would see on a medium term, the same price is being driven for this year. But at the same time, at the back end, it has not been secured, then we will see a spike. It's very difficult to say it right now what will be the prices. And the same thing with the glass bottle. It entirely depends -- the cost entirely depends on the returnable glass proportion, which is directly linked to the volume of sales. So again, at the same time, where our volume markets are there, we are not seeing any difference in our RGB utilization. But for the new markets, it will be a challenge because the sales on a volume basis are gone down. So you might just see a product cost impact in the lower [Technical Difficulty].

Sir we've assumed some marginal CapEx at our Orissa plant also. So is it done? Or are we going with that plant put on hold? What is the status of that?

We have added a canning line in Odisha, so that has been done. That has been completed. So I think that the -- we have a better product mix this year onwards in Odisha.

And sir, other than that, there was -- there is no CapEx at Odisha?

Sorry?

Other than that, there is no CapEx at Odisha?

No, no. Than that no CapEx in Odisha.

Sir, last question. We have seen that many states have increased the excise prices which would definitely have impacted the MRP of the product. So are we able to pass on the whole increase or we are consuming it or absorbing it ourselves also?

So most of the states, Runjhun, have taxed at the consumer level. So what has happened is, there was an MRP and then they taxed on the MRP. So most of it impact has gone to the consumer, but that has reflected in the consumption. So as I stated, 50%, 60% is down because of lockdown as well as, as you mentioned, that the MRPs have really shot up. So these are the 2 reasons. And the governments are realizing that slowly that they cannot have revenue in a way that where you just keep on increasing the MRP and you will keep getting more revenue. Prime example of that is Delhi, where they increased the prices and then reduced it. And similar rationale will be adopted by the states in future. So I don't see this as a permanent phenomenon. I would see that once the consumption starts tailing off and the state revenue starts falling, there will be governments, which will be reconsidering the add of COVID tax, which they have put on. So I mean the same way, if you look at it, even Karnataka, some of the mature markets like Karnataka, they have not placed a 50%, 60% type of a tax. They have only placed a 10% tax. So that has not affected the consumption to that level. While states like Andhra and states like Delhi, states like West Bengal, who had put a 50%, 60% tax, over tax, those are the ones who are really, really suffering right now on account of consumption as well as state revenue. I'm sure there will be corrections there.

Hopefully, sir. Sir, we have seen -- you are saying that May and June have seen some momentum coming back. So like even if I have to take June as a whole month because May initially I believe has started in a sales manner. So how was June in terms of year-on-year growth has been? Or in terms of how much lower it was than the last year? I mean how closer this is the normalization in our different base?

So I mean, Runjhun, we can always discuss that separately on how it would be done. But prima facie is, as I said, the consumption is down by 50% and 60%. So when I say not 90%, there are some states like Odisha where consumption is down by more than 90%. But the reason I'm saying is it's -- 50%, 60% is because some of the states like Karnataka, some of the states like Delhi, who have rolled back the COVID tax, there you are seeing some positive momentum in terms of sales, but they are also less than last year only. So it's basically -- we are discussing the gravity of the loss of consumption. So for us, right now, it is important that we see, which all markets are less down compared to some of the other markets, which are totally down. So that's how we are approaching it. So when I mean there is some hope in terms of momentum, I mean that these markets, such as Karnataka, such as Delhi, have shown signs of revival because they have rationalized their tax regime. So they are actually working on a broad-based tax model where they are keeping the prices a little constant so that they can encourage a little bit of more consumption in terms of spendability of the consumer. So that's how it is working out right now.

The next question is from the line of Sunil Jain from Nirmal Bang.

Sir, my question relate to more on this inventory write-off which you had taken. Is this over or we can have something more in even in Q1 also?

I think, Sunilji, we will assess the situation once we get the proper -- after we close June, basically.

Okay. So now the situation must be under your control, like how much is you are selling, so you will be producing that much only?

Yes, yes. Now we are more cautious because considering how the lockdown has developed and we are also aware that our natural MP market is also not opened up properly. So we are taking care of the things.

Okay. And sir, this collection from your debtors and all, that has also increased a bit. But how is the situation now? Means whether you are able to collect the money or there can be some write-off in that also?

No. So on a positive note, all our debtors are mostly government corporation. So about 95%, 96% are corporation markets only where we operate in. We are not going to see any write-offs, but we'll see some delays but no write-offs on the debtor front.

And if suppose there is I mean -- we see a lot of variability in your expenses when we see the turnover of different quarters. So how much scope is there to reduce the expenses looking at the conditions of the market now? How much of your fixed cost or how much you can reduce it, your expenses?

So it is a function of consumption, sir, where you see the consumption going down. So obviously, your factory costs and your establishment costs need to come down. So we are working on that to bring that down. Simultaneously, we are also working at optimizing our sales channels. So when I said a little bit about how we are going to approach the market, what I meant was that any channel, which is in a very dormant state or very early stage, some of the markets, we would try to optimize our volume there rather than go for the distribution. While where organically, we are growing, that is where we would be optimizing our sales. So it is a function of looking at it 1 apple at a time and customizing your approach state to state, market to market. So that's how we will be approaching that in terms of market to market and in terms of state to state. So if we see that this market is required for the overall health and visibility of the brand, we will continue to invest in those markets. But as far as profitability goes, we would be a little cautious in terms of driving volume, but also keeping our costs in check. So that is what -- how fundamentally we'll be approaching the year.

Yes, yes. That is true. I agree with you. Only thing I was looking at, see, in the near term, because of the lower sales, there could be some constraint on cash flow and all. So on that account, I was thinking how much more we can reduce on the cost side, also. Because sales is down, but cost how much we can reduce.

So obviously, the costs will come down when the demand goes down. So the raw material, packing material costs tend to come down because of the demand. But at the same time, the fixed cost component is something which you have to, I mean, maintain. I mean, we are not microbreweries. We have setups, which are scalable. So we have to maintain the minimum fixed cost to run those setups.

So is that -- you can quantify how much is your fixed cost for a quarter or something for a month?

We can take it on the side if you want.

Okay. And last question about debt. How much is the repayment of the debt in the current year?

I think on a consolidated basis, we repay about INR 18 crores to INR 19 crores of debt per year. But we have taken a moratorium till September. So I think we'll pay about INR 10 crores of debt.

The next question is from the line of Nitin Awasthi from East India Securities.

I just wanted to understand something. So over the years, in this whole industry, there was always this play of premiumization that was talked about. And during those years, you have built an array of mass-market products in your IMFL segment, if I'm not wrong, because a lot of brands have been put up by you, which weren't existing or some have been revamped. Now the stories, which is going around is, there is a lot of down-trading happening because of the taxes, et cetera. There's a lot of down-trading happening in this segment. So are you seeing anything of that sort of thing play out, whereas you're seeing that the brands created by you in the past, mass-market brands, are now gaining more and more traction?

So that is very true in terms of some of our brands. That's why, categorically, if you look at the Power Cool sales, they have gone up substantially over the last year, primarily because of this reason that when the lockdown ended, we had sales of Power Cool going from INR 22.3 million to INR 31.6 million. That -- therefore we registered a 41% growth. But at the same time, if you look at Hunter, we registered a 10% growth there, which is a premium segment as well. So that is, I mean, a typical portfolio strategy where you might have toppling effect that, okay, the premium consumer might come down to a lower segment. And the same thing happens in IMFL as well. So someone who's on a premium will come to a deluxe, a deluxe guy will come to a semi-premium. And things like that happen depending upon the state. So when you add a lot of migrant labor working across different states, that consumption footprint was very different of that city or of that state versus today, where they have allowed online and where some of the states had allowed online and some of the states had opened the shops on a e-token system. So again, it is a very state to state call depending on how they plan to open the market up. So accordingly, it will move. So for example, Karnataka has a -- although there is a dip in consumption, you see that the premium and the mass brands, both have continued to remain robust in terms of the saliency. While if you compare a Delhi, which had hiked prices from INR 100 to INR 200, you have seen a substantial increase in the mass products versus your premium products. So again, it's a state to state call depending on the kind of taxation they want to levy. So same thing happened in Bengal. Actually, there was a IMFL spike in Bengal or country liquor spike in Bengal comparatively, where you saw a dip in beer sales. So that's why it is our strength. Actually, we have seen a little growth in our IMFL operations in Karnataka as well because of that.

Okay. And going ahead, so you think, at least on the percentage mix, IMFL could be growing at a much faster rate than beer not only this year but at least for a few years down the line because of this whole downplay thing going on?

Not really, not really because IMFL also has a peak limit. I mean, you can't keep taxing both continuously where your consumption has tapered off. So you have to actually take some corrective actions to get the consumption back, and then you can probably start taxing again. So while the downplay is a temporary phenomenon because of the restrictions to the market. Once you don't have those restrictions, things will pretty much even out because the state governments measure the revenue both in terms of beer as well as IMFL sales. So they would see this very, very clearly that the spike in IMFL sales is not enough to cover the whole pie. So they would have to take those steps to ensure that both of them put together give you a volume plus in terms of taxes.

The next question is from the line of [ Justin Anthony ], individual investor.

So [ initially you have said ] that if there were no pandemic like we would have registered INR 32 crores, INR 35 crores profit. So I want to understand that if we were in a position where we clocked like INR 35 crores more profit -- sorry, more sales, which means that from stand-alone, you might have sold INR 20 crores more, right? Currently, the stand-alone sales, excluding tax, was INR 65 crores. And last year, it was INR 85 crores. Since the capacity is running almost at 100%, that were -- it outsold for INR 20 crore plus. Am I right?

Yes. So we -- if you look at the -- not the expanded capacity, we are running at 90%. Exactly.

Yes. Currently you have sold it for INR 65 crores in this current quarter. Last year, you sold it for INR 85 crores. So overall there was a down around INR 20 crores in the stand-alone. Correct? If there were no pandemic, are you saying that you might have sold INR 20 crores in the stand-alone mode?

Could be.

So basically, what I'm understanding is that other companies have told that even and assume that there is no pandemic like the volume has come down by 6%.

So what -- so I mean -- so we had a very good start in quarter 1 of '19/'20. So we continue the trend. And it's very specific. When you try to get more market share, you are a new entrant, of course, your growth trajectory will be slightly higher than others.

Okay. So I'm assuming that in stand-alone, you might have sold INR 20 crores more, but not more than INR 20 crores, right?

No, no. I mean, I had estimated INR 35 crores, INR 40 crores. It could have been INR 50 crores also.

No. But what I'm asking is that you have estimated that…

What exactly is your question, sir?

Sir, basically, I'm trying to understand based on your past estimate and if there were no pandemic like where we would have landed, and what is the possibility in future. That's what I am trying to derive.

If you would have -- in quarter 3, we had projected, we'll end up at between INR 475 crores to INR 500 crores. I mean, we could have ended at INR 500 crores.

Yes. So that's what I'm trying to understand. How…

And for this current year, like our CEO sir has mentioned, we are currently evaluating the situation, and we are not in a position or I think for that matter, nobody will be to give a projection that where we will stand at the end of this year.

No, sir, I'm just trying to understand the product capability like and how people like it. Like currently if you look at it positively, last year, the same quarter, you have sold it for INR 25 crores and this year you have sold it for INR 30 crore. If there were no pandemic, like what -- how much you must have -- that have sold it? That's what I'm trying to understand. See, this is unexpected situation, which is something everyone has to understand. But if the situation was not there, like how you would have grown is I'm trying to understand this and that I can evaluate how it can go in future.

So let's assume I would have done about another INR 25 crores, INR 30 crores.

Yes. So from subsidiaries, you might have sold maybe INR 10 crore more, like last year INR 25 crores, this year you might have sold INR 40 crores or INR 35 crores?

Right.

So the growth is coming from subsidiaries at Bangalore or is it coming from -- in between there was a update from the company, stating that the new capacity which you have opened in Bengal like it's doing well, and the draught beer is very well perceived like. I did not understand like how much the growth, everything. So I'm just trying to understand. From stand-alone, if you have sold it for INR 35 crore, instead of INR 30 crores or INR 40 crores like do you think that out of this INR 15 crore, maybe INR 5 crores might have come from Bengal and INR 10 crore might have come from Karnataka?

Yes sir.

Okay. Sir, with this projection like I'm not trying to understand anything for FY '21, FY '22. What you have lost because of this pandemic is not something you're going to lose it. Business is going to perform well. So what do you think will happen in FY '22?

I mean FY '22 is a long way off. I don't think, sir, that we'd like to give any forward-looking statement.

No, I'm not asking you to give any ballpark estimate. What I'm trying to understand from you is that the new capacities, which is coming up in Bhopal, like, which will add depreciation, and there will be more interest. So what I'm trying to understand is that how much the depreciation would be like for FY '21. We know that it's not going to be good, but FY '22, what would be the depreciation and what would be the -- not sales perspective, like what do you visualize? What is that we're looking for in FY '22 with the current capacity?

So if you look at the depreciation, right now, I am at about INR 4.75 crores in a year. So on the [ pended ] plant, it would be close to about INR 10 crores.

Yes. Sir, totally if you look at it, depreciation plus tax comes to INR 32 crores, right? So whatever EBITDA you lost like INR 32 crores will be vanished as depreciation and interest. So we need to make profit out of -- after this INR 32 crores. So that's what I'm trying to understand that do you have a clear-cut plan for FY '22 to get more capacity and grow at 30%, 40% because the kind of capacity which you will have will enforce you to grow at 30%, 40% to have a proper bottom line, right?

The capacity has been set up, considering that we want to grow. Otherwise, there was no sense in putting up the capacity, right, sir?

Yes, yes, which I agree. That is why…

And the management and the execution team is well aware that we need to improve our ROCE and we'll keep you updated, sir, how things develop.

So that's -- there's some capacity expansion has been done in Bhopal, [ not offering ] to do much more or is it pending?

So we have already done for the Bhopal about 95%, 96%, as I mentioned in the call earlier. So there is -- and I think bulk of the money is already spent. And we are already providing for all the debt interest is coming to the P&L. So -- and for any other further details, you may please connect with Bijay who is handling our account at Churchgate Partners.

Okay. Sir, so for FY '21, 1/3 of the revenue has already gone. That's how I'm looking at it. If you look at it [ I would consider this asset ] FY '20 as INR 500 crores if there is no pandemic like INR 500 crores. 1/3 of revenue comes from Q1. So I'm taking out INR 150 crores out and INR 350 crores. On top of it, let's say, you are going to grow at 25%. So INR 430 crores, INR 440 crores growth sales, do you think you would be able to achieve by FY '21? I'm not asking you that it has to be appropriate. But do you have this growth plan? Let's say, if there is no more lockdown, if there is not much of things happening, do you foresee that you would be able to get 25% growth and INR 430-plus crore of revenue?

At this point of time, we will not be able to give any kind of guidance on the projections or the numbers we plan to achieve.

Okay. That's perfect. So do you see -- at least we will get back to the old capacity? I'm not asking in terms of number. Getting up at least back to the last year's sales itself going to be difficult because a lot of bars, so many social activities are not happening. That's where the base sales would go. But you said that we are expecting we will get back to the further years, we may be clocking year-on-year growth. Do you think it is feasible?

I think it's feasible, sir. I think it's achievable.

As there are no further questions, I would now like to hand the conference over to the management for closing comments.

While this year has been tough on account of our sales, I would like to firstly thank everyone for patiently listening in. And I would just like to state to all our investors and well-wishers that although the going is tough for this year, but the outlook on a midterm perspective will be great because we have invested in the assets. We have invested in the distribution. So going forward, we look forward to all your support and thank you for listening to this call.

Thank you. On behalf of Som Distilleries & Breweries, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.