Ladies and gentlemen, welcome to our 3Q FY 2024 earnings conference call for Castrol India Limited. Please note that all participant lines will be in the listen-only mode, and you can ask your questions after the opening statements. If you need assistance during the call, please press star then zero on your touch-tone phone to reach the operator. Also, please note that this conference call may contain certain forward-looking statements, which are based on the beliefs, opinions, and expectations of the company as on the date of this call. These statements are not the guarantee of future performance and involve certain risks and uncertainties which are difficult to predict. We have with us Mr. Sandeep Sangwan, Managing Director, Castrol India Limited, and Mr. Deepesh Baxi, CFO and Whole Time Director, Castrol India Limited. I now hand the conference over to Mr. Sangwan for his remarks. Hi, good morning, everyone, and thank you for joining Castrol India's third quarter and nine months, 2024 earnings call. I hope you and your family are in good health and all in a festive mood because of Diwali. So, I'd like to start by wishing every one of you and your families a very happy Diwali. We're delighted to announce the strong growth that Castrol India Limited achieved in the third quarter of 2024. Please note that our reporting follows the January- December calendar. The company's strong performance this quarter, achieving strong third quarter sales volume and profits, reflects our strategic focus on operational excellence. Our balanced approach to optimizing volumes and margins, along with continuous innovation, expanding distribution infrastructure, and brand-building efforts, has driven sustained revenue growth. This quarter also marks the end of my tenure at Castrol India, and during my time serving Castrol India and our stakeholders, we made significant progress by transcending lubricants with the launch of Castrol ON, a range of EV fluids. We introduced Castrol AutoCare range, which is a step ahead of our expansion into non-lubricant related categories. We joined forces with Ki mobility with our investment in Ki mobility and also strengthened our ties with OEMs. From Shah Rukh Khan becoming the face of our brand to expanding deep into the heart of India's vast rural landscape, it's been an incredible journey that I'll cherish always. I'm confident that Castrol India will continue to thrive and contribute to India's progress as a leading force in the future. And I also want to kind of take the opportunity to thank you for your interest in our company. Now, I'll hand over to Deepesh, who'll walk you through our financial performance and key numbers for both the third quarter and nine months of this year. Deepesh, over to you. Thank you, Sandeep, and good morning to all of you. I, too, would like to join Sandeep in wishing all of you a happy Diwali and a great new year ahead. We released our third quarter full year 2024 results, and I would like to share some of the key financial highlights with you. In the third quarter, we reported a strong financial performance. Our revenues were up 9% from 1,183 crores to 1,288 crores, and 8% decline compared to the sequential quarter of 2Q 2024. Profit before tax was 280 crores, a gain of 6% year- on- year, compared to 264 crores in 2Q 2023. Increased volumes and balanced margins enabled us to achieve strong performance in nine months ending on September 30th, 2024. Our revenues reached 4,011 crores, representing a 5% increase from 3,811 crores in nine months, 2023, and profit before tax rose by 3% to 887 crores, compared to 857 crores in nine months ending 2023. We are committed to maintaining our momentum in the coming quarters as well, and we look forward for the rest of the year in terms of our performance delivery. I would now like to hand back to Sandeep. Yes. Thanks, Deepesh. In addition to discussing our financial performance, I'd like to highlight some significant business developments at Castrol India. This quarter, we launched four new rust preventive products in our industrial portfolio under the brand, Castrol Rustilo, catering to evolving customer needs. These products offer superior performance, environmental benefits, and ease of use. The AutoCare product range also saw new additions, establishing a footprint in over 45,000 outlets and major e-commerce platforms. The recently launched Castrol EDGE variants and Castrol CRB Turbomax Plus CK-4 are suitable for use across OEM engine platforms in the commercial vehicles and received widespread positive market reception, solidifying Castrol's position in the premium lubricants. Castrol EDGE premium range, which is for passenger cars, is now widely available through various channels, and the successful marketing campaign with Shah Rukh Khan has driven consumer upgrades. The company's continued efforts to expand its distribution network has resulted in reaching 35,000 workshops and retail outlets in rural India. With a robust network of 580 Castrol Auto Service outlets, 29,500 bike points, and 9,400 multi-brand car workshops and dealers, Castrol now has a national footprint exceeding 136,000 outlets. Recycled content in high density polyethylene, plastic bottles, HDPE, increased to 50%, aligning with Castrol sustainability goals. The company also empowered and trained over 8,000 truck drivers and more than 4,000 mechanics this quarter. We have progressively impacted the lives of more than five lakh truckers and mechanics since inception of our social investment or CSR programs. We also launched a Two Wheels One Life program in Pune to promote safe two-wheeler riding among youths. There are some changes in the board as well. The appointment of Mr. Rakesh Nath as chairman and Ms. Satyavati Berera as independent director and audit committee chairperson strengthen Castrol's leadership and governance. Castrol Chemical Management and Services celebrated 12 years of incident-free operations across multiple customer sites, reinforcing Castrol's commitment to safety. Castrol's brand communication efforts for Castrol Magnatec and Castrol CRB Turbomax Pragati Ki Paathshala were recognized with six awards at the Indian Digital Marketing Awards, demonstrating their effectiveness in fostering brand equity and engaging with target audiences. Thank you for your attention, and now I invite you to share any questions, feedback, or views as we open the floor for discussions. Thank you. Thank you very much, Mr. Sangwan and Mr. Baxi. We will now begin the question and answer session. Dear participants, if you wish to ask a question, please press star and one on your touchtone telephone. If you wish to withdraw yourself from the question queue, please press star and two. Participants are requested to please use handsets while asking a question. Also, in lieu of the time, we will stick to two questions per person. If you have further questions, kindly rejoin the queue. Ladies and gentlemen, let us wait for a moment while the questions come in. The first question is from the line of Saket Kapoor, from Kapoor & Company. Please go ahead. Yeah. Namaskar, sir, and thank you for the opportunity. Sir, firstly, if you could allude to us what kind of volume growth are we looking in, and in terms of the fillers from the OEM, taking into account the current trends in the auto industry, what should we penciling in going ahead? So I think, typically what we're seeing is the volume growth is likely to be about, like, 4-5 odd%, for this year. That's kind of our estimate for the category. I think, in some of the segments, the new vehicle sales have been a bit muted, this year, okay? But I think most of our business from a Castrol perspective is not dependent on new vehicle sales, but it's more dependent on the aftermarket. So that's how we see the total market will continue to grow at about 4%-5%. Right, sir. And, can you comment on the raw material part? And one more question is pertaining to the application in the data center industry. So there have been talks of our products being into cables and as a coolant and all. Can you comment on our play into the data centers electrification part or, or the- it is just a misnomer? Yeah. So, I'll try and answer the question. I didn't get your question on raw materials. What was the question? Sir, I was looking at the grease and the grease part. How are the raw material markets shifting up and going ahead, with crude correcting and remaining lower, does that lead to incremental margins for us going ahead? Yeah. So I'll let Deeepesh answer the raw materials question, and then I'll comment on the data center question that he asked. Deepesh, you want to talk on raw materials? Yeah, sure. So, as you know, our raw material primarily is base oil, and then there are additives. And, if you see the last nine months, while crude has gone up and down, you know, base oil goes up and down with a lag. So if I were to just take a nine-month average versus nine months of last year, the base oil input cost has been largely flat, yeah, a couple of%. And that, I think, you know, we are able to manage with the necessary pricing in the market. And when it goes down, our input cost, you know, we will pass on to the consumer as well. Going forward, again, you know, with all the geopolitical tension, it is very hard to say, but our prediction is that at least for the near term, the input cost is largely going to be in the range of what we've experienced in the last nine months. So not a material sort of change is what we are kind of expecting. I mean, over and above that, you know, we do have long-term contracts.... term contracts with our suppliers. You know, we do spot purchases so that we can manage our sort of overall inventory and input cost averages as well, and that is a continuing strategy that we work on. Yeah, and on the data center bit, I think we see that as an opportunity area. In terms of the commercialization, may still take some time. We are running pilots, experiments with some of the customers. For confidentiality reasons, I cannot name them, okay? But as a company, we've invested in a R&D facility in Pangbourne, which is our global U.K. headquarters, around in this space, in terms of liquid cooling and immersion cooling for data centers, which brings efficiency both in terms of space and energy usage. So early days, but definitely this is an area that we see as an opportunity going forward, given the emergence of... And especially with AI going to play a more and more role, increasing role in the business, this will be definitely an area for growth. Correct, sir. Thank you for the clarification, sir. So just, I missed your point on the base oil part. So we are not seeing any margin improvement on account because of the long-term contracts, offtake contracts we have? Or, how should we take into it, since the crude prices have been benign for now, over last two, three quarters in a band, and that too trending lower? Yeah. So, look, like as we've been sharing with the community in the past as well, the reason why we have put the EBITDA margin range-bound, which is about 22%-25%, is precisely for this reason. Because, you know, 1% or 2%,± margins do happen during the year, on a quarterly basis. And we expect that we will... So this time, we ended up with about 22.5%, and, you know, unless there is a sort of a big variation in the crude oil and base oil, we would like to manage to be, you know, deliberate within that margin range. So, typically, you know, one percentage margin on EBITDA would be 50 crores or so as a thumb rule. So, you know, you can do the math. That's really where I think it could be. But we need that elbow room, you know, as we maneuver, because every time there is a increase in input costs, we can't just go and take a price increase. Similarly, whenever there is a reduction, we just can't take price reductions or, you know, or pass on. So we do a bit more medium-term outlook through strategic pricing, and, that's why that margin. So in summary, we expect that next three to six months, we will be in that range bound, 22%-25%. Okay, so can I keep one small concluding remark and join the queue? Request you to join the queue. I've joined the queue. Yeah, yeah. I will do that. Thank you. Thank you. We have the next question from the line of S.M. Kumar, an individual investor. Please go ahead. Good morning, sir. First of all, Congratulations for great set of numbers. Just I could like to know about how much cash available as of now? We have about INR 1,200 crores on our balance sheet as of September thirtieth. Okay. Sir, regarding next question, what about Castrol ON, any volume growth specifically, can you share with crude numbers? Yeah, I think, we sell Castrol ON, but the volumes are very insignificant right now, given the penetration of EVs in India. So I think, is it making a significant impact to our finances? Not at the moment. In time it will grow. Okay, okay. Thank you, sir. Thank you. Ladies and gentlemen, if you wish to ask a question, you may please press star and one. We have the next question from the line of Rajakumar Vaidyanathan, an individual investor. Please go ahead. Yeah, Thank you for the opportunity. Actually, my question is regarding the data center liquid cooling opportunity that you talked about. First is, you know, as you know, you know, large scale data centers are getting built and we've moved from air cooling to liquid cooling, which is, I think, the right approach. So, you know, when you start, you know, these data centers are built much ahead before they come online, right? So I'd like to know whether when you build this infrastructure, we move from air cooling to liquid cooling, is it the data centers that we are building today, we can do the switch immediately and they can be liquid cooled immediately? Or is it something that you need to plan ahead? And also, you know, how big is this opportunity, and whether you are doing it in India or is it like, you know, outside India, in the U.S., is it already tried out? Could you add more color to this? That would be very interesting. So, so first of all, thanks for asking the question, because you are asking the right question. And, to be honest, I'm not the technical expert on data centers, but the way we see it is, it is a global opportunity, okay? India is not the only market. I think there are much bigger markets like U.S. and Europe, where, there's a lot more capacity which has been, built up or installed from a data centers perspective. The second thing is, as I understand, you are absolutely right, this is something that has to be designed, in the, inception stage of data centers. It's not something that you can retrofit, okay? Maybe there's a retrofit solution, but based on my limited understanding, I think this is something that, needs to be a part of the design, phase. And that's why we are working with people who design data centers or customers who are building data centers. So it's an evolving space right now, but I think we have the right intention and the right capability that we brought into the organization to work in this area. ... Yeah, thank you. And so just one more question, sir. So can I at least sort of the data centers that we are building today in India, right? Can we say at least they are already catering towards at least trying liquid cooling that Castrol is exploring? Is that something that is- I wouldn't like to comment on that, sir. Sorry, you? I would not like to comment on that, because that's something that we are still working, and this is not information which is available in public domain, so. Okay. Thank you, sir. Thank you. The next question is from the line of Manoj Rajan from Rajan Family Office. Please go ahead. Hello, am I audible? Yes, you're audible, sir. You may proceed. Hi. So actually, the question I'm going to ask the management is that how is, so basically how the company is planning to handle the, your supply chain distributions, given the, you know, the extensive plan that the company might be having, so basically the measures that they are implementing to reduce any kind of risks that might come? Sorry, I could not understand your question. Yes, so basically, like, you know, what is, how is the company handling the supply chain distributions, given that, given the extensive plan that they have from manufacturing to end users, basically, yeah. So I think, this is something which is not very new to us. We are the largest scale player in the private sector in, the Indian lubricant industry, and we have the largest, reach and, distribution in the country. Okay, as I said, we cover more than about hundred and thirty-six thousand outlets, and we have a very robust established supply chain, right from sourcing to reaching the end consumer point. And we keep innovating, in our, route to market. Like, for example, a few years ago, we moved our distributor sales, for example, to a sales agency called Smollan. This is, information which is available in public domain, because we think we can that way train better people, better frontline sales people. In terms of our supply chain, I think we have a very cost efficient and a robust route to market model, which makes our products available to every nook and corner of the country. And I'll just add to what Sandeep said. So, I mean, if you just step back, I'm just going to reiterate our current sort of model, which itself has the flexibility to, you know, expand. So we have plants, and we have our DCs or, in other words, the senior agents, about 15 of them, and then we have more than 500 distributors. Then there are retailers and dealers, which is more than about 50,000. Then there are independent workshops, okay, where the mechanics play advocacy role, and then consumers and truck drivers and, you know, that's our ecosystem, which is actually much more than 200,000, 300,000. And anytime, you know, we are looking to go deeper, whether it's in rural or anywhere in more area, and that is something that we shared in our press release, and we just mentioned that when we've started our auto care products, that's already available at more than 35,000 outlets. Yeah, but our core products are available at more than 50,000 outlets. So if we have to expand, I think, in fact, we believe that we have a competitive advantage, given that we've been here for more than 100 years, and we built this over a period of time. From that point of view, I think we are well covered, but we'll continue to innovate, especially in digital and other areas, to make our products reach faster. Thank you. Ladies and gentlemen, to ask a question, you may please press star and one. We have the next question from the line of Abinash S from NAFA Asset Management Company. Please go ahead. Hi there. Congrats on the good set of numbers. I just want to know what has been the volume growth in this quarter, and what is split between OEM and aftermarket sales? Thank you. Yeah, so volume growth has been about 8% between this year, quarter three, and last year's quarter three. I think I just need to explain, you know, because the retail business, that's almost 60% of our business. Yeah, and OEM, in both the categories, the volume growth has been in about 8% or so in this quarter. Now, when you break it down further, then there are those other market spaces that we operate in, like personal mobility and commercial vehicle. In commercial vehicle, we've grown about in double digit, and personal mobility, we've grown in middle single digit, and all of this has been above market growth. So, for this quarter it will be? 59%. 59 million liters. Overall, for Castrol India, 8%. Thank you, sir. Thank you. The next question is from the line of Rohit Maheshwari from Tata. Please go ahead. Thank you, and congratulations for a good set of numbers. Can you give the absolute numbers for volume for this quarter? Yeah. So we did 55 million liters. 55 million liters. And any specific reason, because when I see quarter on quarter trend, can be the last quarter we sold around 61 million liters, and this quarter, close to 55 million liters. Any specific reason for it? Yeah, so I think there is a seasonality in our business. Quarter three, even if you look at the historical data, quarter three tends to be low compared to the second quarter, and then you see again a bump in the fourth quarter. And this is also driven a lot by the agricultural cycles in the country. And that's why you see quarter three being the lowest quarter. So it's not an area of concern for us. We know the seasonality in the quarters, and that's why I think what is more important is to see the growth rates versus last year rather than the sequential quarter. Okay. And in the last earnings call, you mentioned that, well, by the year end, we'll be looking at analyst presentation on the data center opportunity. Any update on that front? I think what we said is we're working on it, okay? I don't know how firm commitment you take our comments to be, but definitely as we work through this and we gain more and more insights and knowledge, this is something we'll bring to our investor community. By year-end? Unlikely. Most... Yeah. It'll possibly be next year sometime, sure. Okay. Thank you. Thank you. Participants, you may press star and one to ask a question. The next question is from the line of Samruddhi, an individual investor. Please go ahead. Hello, am I audible? Yes, you are. Yeah. Thank you for taking my question. My question was regarding raw material prices. How are we hedged against volatility of oil prices? Yeah. Samruddhi, thanks for that question. So, I mean, within the raw material, the base oil, which is, you know, a by-product of crude, is what we normally import from other parts of the world. And that earlier used to be about 70%, now it has become 50%. Okay? We do not hedge locally anything on base oil, but of course we have support from our global parent, yeah. And some of the rates and term contracts that we enter into with our suppliers are actually supported by global, because, you know, the scale is much higher than prices are negotiated globally, and we get that advantage. So frankly, on that piece, there isn't a need for local entity to do hedging. What we hedge is the foreign exchange impact for this 50% import that we do, and some of the other materials, so that we do locally, and I think so far we've been able to do a good job on that. Okay. Okay. Thank you, sir. The second question I have was regarding any CapEx. So are we going for any major investment plan or any CapEx? Yeah. So, typically, we've invested about INR 100 crores CapEx in a year. As at sort of nine months, we've spent about INR 60 crores, INR 60 cores-INR 65 crores so far. Our CapEx will be in two or three categories. First category is going to be the organic CapEx, and that is really about, you know, the investment that we will make in, you know, some of our expansion into the rural markets and some of the newer businesses that we are entering into, like Castrol Auto Services, et cetera. So that's the kind of organic CapEx we will invest in. Given the trajectory of the growth plan that we have, from a supply chain capacity building perspective, we don't need to invest, at least for the next couple of years, because we do have capacity, plus, you know, we can outsource that. And I think the third part always, as you know, is, you know, what can we do differently, more in a different area of diversification and all that. I mean, that's a CapEx, which is a part of the board discussion. So to summarize- Sure. 100 crores is what we spent. I mean, we will, in the next couple of years, be in the range of INR 125 crores-INR 150 crores. Okay. Okay, got it. Thank you. Thank you, sir. Thank you. Thank you. The next question comes from the line of Rohan Jain, an individual investor. Please go ahead. Yeah. Hi, am I audible? Yeah. Yeah. Hi, sir. So just a couple of questions, sir. The first one being, you know, given the current, geopolitical tensions around the world, primarily in the Middle East, would our business face any kind of threat at all from these tensions? So, I think right now we've not seen any impact because of the current geopolitical situation. Difficult to comment on how the future will unfold. But none of our supplies are impacted per se, because most of our base oil is either sourced out of Singapore or locally procured, and same for additives. And I think you're fine for the time being, and at least we don't foresee any major impact from a supply side perspective. And on demand side our business is almost 100% driven by domestic demand, so we don't have any export component which could be impacted, so. ... Right. Right, right. Okay, okay, fair enough. That's great to know. Secondly, I wanted to understand from you, like, given, you know, the government's focus on clean energy and, you know, like the reduction in carbon footprint across, you know, the different corporate entities. So just wanted to ask you, like, are we taking any steps in regards to this? Like, are we doing any kind of initiatives for that? Yeah, absolutely, so I think sustainability as a responsible organization is very important to us, okay, and we do have a carbon reduction program, and some of the things that we worked on, first of all, like, we are making major progress on plastic side. From a sustainability perspective, most of our bottles now have all at least 50%, if not more, recycled plastic content. We do collect all the plastic that we put in the market, okay, and we've reduced, if I'm not mistaken, about 1,000 tons of virgin plastic usage in our packaging. The second area we work on is energy consumption in our plants. So, Paharpur, one of our plants, is completely on renewable energy from the grid. And we've installed solar energy systems, solar panels in two of our other plants to make use of renewable energy. And the third area is, for example, in one of our plants, which was earlier running on fossil fuel for our boilers. We've shifted that to piped natural gas. So multiple initiatives. We also work on water conservation in our plants. So there are multiple initiatives around this area. Okay. Okay, okay. Understood. And, do these initiatives make any cost benefits for us? Like, or are we, you know, like, spending more money for these, or are they, like, making any monetary benefits for us? I think it's more, we see it as the right thing to do rather than looking at monetary benefits, okay? Something which is good for the society, something which is good for the environment, okay? And, in a sense, cost is a consideration, but is it the only consideration? No. Okay. Understood. Thank you so much once again, that's all from my end. Thank you. Participants, to ask a question, you may please press star and one. We have a follow-up question from the line of Saket Kapoor from Kapoor & Company. Please go ahead. Yeah. Thank you, sir, for the second chance. So you mentioned that our CapEx ballpark number is INR 100-INR 120 crore, and our cash balance is of INR 1,200 crore. So how are we looking to utilize this cash in value creation ideas for your shareholders? Yeah, no, great question, and I think that is that is definitely a continuous conversation with the board. So, you know, while I shared with you our CapEx numbers, which are a part of our immediate plan, obviously, we're looking into, you know, what other organic expansions we can do to supplement the growth plans that we have. So, you know, there will be there is an intent clearly to ensure that we spend the CapEx for the right reasons. Now, apart from that, you know, I can't say much about the other sort of avenues that we are exploring, but the fact is, we want to continuously make sure that we add value to the shareholders and, you know, and share the sort of cash in the best way, either with the shareholders or invest into the, you know, wider projects that we are in the process of thinking. I'm sorry, I can't tell you much. Yeah. Beyond that, but I mean, obviously, this is something which is on top of our mind. Sorry, go on. But- What has been our average cash balance for the last three fiscal? How has the cash balance grown, if you could give an understanding, since you are working with the same of how to deploy it more efficiently, if you could just give me the color of the same. And then, sir, when we were speaking about data center, the other thrust or the other area of growth has been global capability centers that are getting a lot of traction in the country, in not only in terms of the numbers, but also in terms of the size and the volume they are generating. Have you worked out on how the efficiency, the applicability of use in the data center can replicate it in that could be replicated in the same model with Global Capability Centers, where numbers are 2,700-2,800 in the country as of now, what we have read in the newspaper? Yeah, so I'll just take the cash question first. So, firstly, you know, we manage our working capital and cash deliverables really, really well, and therefore, you know, a real sort of positive thing to sort of acknowledge that, you know, as a business, across any part of the businesses, you know, we work towards generating that cash. Traditionally, for the last 3 years-4 years, you know, we generated about INR 700 crores-INR 800 crores of cash every year, in addition to the opening balance that we had. And, the dividends that we paid, you know, is in the range of about 80%-85% of that. So that is one sort of outflow of cash. One, in terms of major. Other big cap pieces that, you know, we invested INR 487 crores to make an inorganic investment in a company called ki Mobility, which is a part of the TVS Group. That was a conscious investment, a strategic investment. We got a stake in that company and, you know, this is about aftermarket independent workshops. So, principally, these are the two big outflows other than the INR 150 crores of cash also that we have for our, you know, organic CapEx or supply chain CapEx. Right. And the comment on global capabilities then? Yeah. Yeah, so, definitely I think, first of all, thanks for your suggestion on looking at GCCs, which are expanding in India, and India is becoming a major force in that area. So as part of BP, our parent company, we are also looking at leveraging GCC more from a building capability and efficiency perspective, but that's a part of a bigger kind of corporate programs. In terms of applicability of data center concepts to GCC, I think that's an excellent suggestion, and that's something that we'll definitely take into consideration. Sir, and last small point before I join the queue again. So you mentioned about 88% of our cash profit being... Our profit after tax being shared with your investors. But taking into account the tax regime and the changes being done over the past few years, tax incidence on dividend income has gone up significantly. So the cash being shared from the company level to the investors get knocked off by anywhere between 20%-40%. So why not invest, why not the promoters looking at innovative ways of sharing cash with investing communities where there is lower tax incidence? If the thought process was that. No, absolutely. Thanks for that thought, but, I mean, let me assure you that we have a dividend policy, so we work within that frame, that's first. And the second piece is we're definitely looking at options, which are, you know, just beyond dividend as well. But at this stage, it's very difficult to say, and after we do our analysis, you know, is when we really come down to what is the best way to reward our shareholders. So that's really what it is. It's a part of the shareholder value creation work that we keep doing. Sir, lastly, on the employee benefit part also, we have seen that also escalating Q- on- Q, year- on- year. So is that the variable part of the portion or what has attributed to this? If we compare the year-on-year number from 69-81, and Q- on- Q it is from 77-81. So if you could just explain the trend and what is our annual expense for the next financial year also, or the next calendar year rather, for us to take into account in terms of the employee benefit expenses? Yeah. So, I think so, you're right. I mean, the employee benefit expense, quarter on quarter has gone up by about 17%, the number that you mentioned. Now, in that, there are sort of all the elements that is between last year and this year, obviously, there is a salary increase that is there across the board, because April one is when we get our salary increase, so there is an impact of that. Then the second impact of that is in variable bonuses. And the third is, there has been some restructuring costs that is included in this number. So that is also a part of that. So I don't think it's a recurring one. The restructuring is a one-time expense, and it will, you know, come inbound in the rest of the year. So what should be the quarterly run rate? Sir, only to conclude, sir. Yeah, yeah. What sir is, what sir has explained, I was just concluding that. What should be the quarterly run rate in terms of the employee benefit expenses, and your thought on also the other expenses line item. I'll join the queue. Thank you, and happy Diwali to you too. Yeah. So, look, there is, there isn't, one-off other than the, I mean, in three months we'll get the results, so you'll see what the number will look like. But you know, in India, the inflation goes up between the range of 5% to 8%, depending upon which category do you see. And we have various programs that run so that we can sort of arrest that inflation through efficiency and effectiveness. So at this stage, I would not like to give you that number. That's the... I'll give you a sense around what the numbers will look like in terms of the cost of inflation. Right. So on other expenses, if you can comment something, I'll join the queue. Where the variations is and how to understand the variation Q- on- Q and year- on- year. Yeah, yeah. Sure. Look, I mean, every company will have a component of fixed and variable. As you see, from one Q versus last year, we grew 6% volume. In second quarter versus last year, we again grew 6% volume. This year, we grew 8%, sorry, this quarter we grew 8% volume. So there is a variable part of that expense also, which plays into a lot of the expenses, which are also linked and are the part of the other expenses. So you have to take that out. And then there is a fixed component. So it, basically, 7%-8% is the volume growth and 3%-4% is the inflation growth, and that's really what the combination of the other expenses is. But you know, you have to sell more, you have to travel more, and that's really the principle that will be there, yeah. Thank you. Thank you. The next question is from the line of, Rajakumar Vaidyanathan, an individual investor. Please go ahead. Yeah, hi. Thanks for the follow-up, and sorry to harp on the data center liquid cooling again. So assuming that the pilot in terms of successful would it require Castrol to set up a new plant? And what kind of CapEx are you looking at when, you know, when the pilot gets successful? Could you add some color to this test? I think we have enough installed capacity. This would require some CapEx, because the quality requirements of these fluids are very different. But I think both from a capacity perspective and technology perspective and CapEx perspective, we don't see any issues right now. The exact cases have not been worked out as yet, so. Okay, excellent. So also for the current pilot, I'm assuming there is no revenue. So, so- Yes, yes. - the cost of this is already baked into the PNL, right? Yeah, yeah, yeah. So would you be able to tell us, like, how much you spent in the pilot? That, that's something that I wouldn't like to comment or share. Okay. But the costs have already been kind of, they are in the PNL, so. Okay. And, yeah, and congratulations, Mr. Sandeep, for your bigger role. Thank you. Thank you, sir. Thank you for your interest. Thank you. The next question is from the line of Aditya Shah from Meteor Management. Please go ahead. Good morning, sir, Aditya here. So just I have one concern, or, you can just, highlight this. As the market is evolving toward more of the EV segment, say, cars or bikes or everything, so how does Castrol picture itself for the next five years towards the EV segment? So do you see a product increase, or are you going to, have new product development? Because even luxurious cars to any cars today are going towards the EV segment. So can you shed some light, how does Castrol see itself for the next five years compared to the EV segment? Yeah. So let me just answer this question in two components. So first of all, we see for the next five years a robust growth in the ICE vehicle market, okay? Because as car penetration increases in India, not the whole demand cannot be fulfilled by EVs alone, okay? So EVs will grow, but I think the ICE will grow. And also, hybrids are growing at a much faster pace now, because all the Japanese OEM see hybrids as a, not even as a transitional technology, but as a main technology that will support the low carbon agenda. That's number one. The second is, we already supply EV fluids to two of the largest EV manufacturers in the country, okay? So we already have supply positions. We also have global supply positions with OEMs on EV fluids, and as these OEMs bring in more EV models or EV cars into the country, we are fully geared to supply to them as well. So I think both from a growth perspective and from a participation in the EVs segment, we are well positioned to continue in our business. Okay. So just want to add on to that. If you can just share, you know, the EBITDA margin in the next five years compared to this, like, any ballpark number, like you see a growth by, say, 5%, 10%, what ballpark number do you see in the same margin? So I think I wouldn't like to share a specific number. We said we will continue to operate in the range of 22%-25% from an EBITDA margin perspective. That's something that we are committed to maintaining. Okay, sir. Okay, thank you. That was very helpful, sir. Thank you for your time. Thank you. Thank you. Ladies and gentlemen, we are at time. This brings us to the end of the call. On behalf of Castrol India Limited, I thank you all for joining this call. You may now disconnect your lines. Wish you a good day ahead.