Ladies and gentlemen, good day and welcome to the Zydus Wellness Limited Q4 FY23 conference call hosted by ICICI Securities. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Manoj Menon from ICICI Securities. Thank you, and over to you, sir. Hi, everyone. It's a wonderful good morning, good afternoon, good evening, depending on the part of the world you are joining this call from. Representing ICICI Securities, it's our absolute pleasure to host the management of Zydus Wellness Limited for the results conference call. The company is represented today by Dr. Sharvil Patel, Chairman; Mr. Tarun Arora, CEO; Mr. Ganesh Nayak, Director; and Mr. Umesh Parikh, the CFO. Without much ado, over to the management for the opening remarks, post which we'll open the floor for Q&A. Over to you, sir. Thank you, Manoj Menon. Good afternoon, and welcome to the post-results teleconference of Zydus Wellness Limited for Q4, financial year 2022-2023. We have with us, like Manoj Menon mentioned, Dr. Sharvil Patel, Chairman; Mr. Ganesh Nayak, Director; and Mr. Umesh Parikh, our CFO. The quarter has seen gradual recovery in consumer sentiments, though urban demand is still better than rural. However, rural demand slowdown seems to have bottomed out and recovery is expected going forward. In spite of the inclement weather throughout the country in March, chilling effect, the company has registered a net sales growth of 11.8% during the quarter on a year-on-year basis, of which 4% is volume-led. For the financial year 2023, we have achieved a growth of 12.8% year-on-year on net sales. With appropriate price increases taken across portfolio during the previous quarters and inflation getting stabilized for key inputs, except for milk, the company has caught up with last year gross margins for the quarter four and reduced the gap over the last financial year that was built in first 3 quarters of the current financial year. The gross margin for quarter four stood at 50.6% on net sales for the quarter four. Let me take you through the highlights of the consolidated financial performance of quarter four, financial year 2022, 2023. During the fourth quarter of financial year 2022, 2023, our net sales grew by 11.8% to INR 7,099 million. Our total income from operations grew by 11.4% to INR 7,130 million. EBITDA grew by 2.2% year-on-year to INR 1,446 million. The company continued to witness high inflation in alternative fuel and labor costs. As a result of which, other expenses grew by 36%. It was accentuated by temporary outsourcing of manufacturing of Glucon-D to third parties. Almost half of the increase in other expenses is one-time in nature. The change in manufacturing footprint, coupled with cost optimization programs, shall result in reduction of expenses in coming quarters. Reported net profit was up by 9.0% year-on-year at INR 1,453 million. Adjusting for exceptional items, the net profit was up by 14.4% year-on-year to INR 1,525 million. Coming to the annual consolidated financial highlights, our total income from operations increased by 12.8% year-on-year to INR 22,426 million during the year. Our EBITDA was down by 2.2% year-on-year to INR 3,372 million. EBITDA margin as a% to total income from operations stood at 15.0%. Reported net profit was up by 0.5% to INR 3,104 million. Adjusting for exceptional items, the net profit was up by 3.7%. Our consolidated cash position stood at INR 1,081 million, including investments made in the liquid funds. Our consolidated CapEx for the year was INR 489 million. Let me share some of the highlights of operations for the year gone by. We continued our thrust on marketing initiatives to grow the categories and increase our market share of our brands during the quarter. To narrate a few, on Glucon-D front, with continued marketing efforts towards driving growth and recruiting new consumers, the brand continued its strong momentum for the financial year. We continued our focus on innovations and launched various extensions like sachets, Kaccha Mango under ImmunoVolt, and mango under flavored glucose powder during the financial year. The glucose powder category has grown by 10.7% at a MAT level. Glucon-D brand continues to maintain its number 1 position with a market share of 60.1% as per MAT March 2023 report of Nielsen, which is an increase of 159 basis points over the same period last year. On the Complan front, the health food drinks category has witnessed a slowdown during the financial year. The brand performance is a reflection in similar lines. As the category has seen a shift in trends from refill packs to jar, and jars to sachets and pouches, the brand has been able to timely intervene and enjoy a wider market play with category parity packs. Brand was supported by 360-degree campaigns throughout the year across the mediums of TV, print, digital and social media in influencer campaigns. The health food drink category has de-grown by 1.1% at MAT level. Complan market share stood at 4.5% in the category as per the MAT March 2023 report of Nielsen. On the sweeteners front, Sugar Free brand witnessed a revival in optics during the later half of the financial year as a result of sweetener portfolio has registered a mid-single digit growth for the quarter four on a year-over-year basis. We continue to build Sugar Free Green franchise with aggressive media campaigns throughout the year. Sugar Free continues to maintain its leadership with a market share of 96% as per MAT March 2023 report of IQVIA. On the personal care front, Everyuth brand continues to outpace category growth during the quarter four of the financial year. We continue to support our core portfolio of face wash, scrubs, peel-off and body lotions through TV and digital campaigns throughout the year. The face scrub category has registered a growth of 9.1% at MAT level. Everyuth scrub continues to maintain its leadership position with market share of 41.9% in the facial scrub category, which is an increase of 68 basis points over the same period last year as per MAT March 2023 report of Nielsen. The peel off category has registered a growth of 4.5% at MAT level. Everyuth peel off has maintained its number one position with a market share of 78.4% in the peel off, which is an increase of 7 basis point over the same period last year as per the MAT March 2023 report of Nielsen. Everyuth brand is at number five position in the with a market share of 6.2% at a overall facial cleansing segment level as per the MAT March 2023 report of Nielsen. With good summer season, Nycil brand has witnessed a strong comeback for the financial year. The prickly heat powder category has grown by 13.4% at MAT level. Nycil has maintained its number one position with market share of 35.4% in the prickly heat powder category, which is an increase of 157 basis points over the same period last year as per the MAT March 2023 report of Nielsen. On the dairy and spreads category front, Nutralite brand has delivered a robust growth for financial year gone by, backed by well-planned digital and on-ground activations. We continue to focus on recovery of margins and improving profitability in the new financial year. Thank you. We will now start the Q&A session. Over to the coordinator for Q&A. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question is from the line of Ajay Thakur from Anand Rathi. Please go ahead. Hi, sir. Thanks for taking my question. Had a few questions. Just wanted to understand, firstly, what would be the absolute quantum of one-off in the other expenses during the quarter? If you can share that number? Absolute quantum of one-off, is, yeah. Sorry. Yeah, absolute quantum of one-off, you are asking for these other expenses, right? That's right. That is almost half of, you know, increase, half of the increase in the expenses. Okay. Okay. Got it. Secondly, wanted to understand what would be the repercussion of this Bournvita issue that we, you know, the industry has been facing. Can we expect it to actually have adverse effect on the segment or the HFD segment? Or can we also expect some bit of, you know, market share gain because of, you know, Bournvita kind of getting under fire from the consumers? I don't think there is a significant impact both in consumption and a market dynamics level as of now. We'll wait and watch. I think there have been discussions around these on sugar and other elements. One has to look at these products in totality from a nutrition point of view. I think right now it's too early to tell. Can we expect some kind of gain because of the same? If Bournvita is kind of losing because of the similar issues, can we gain some bit of, some bit out of that? Not sure. That doesn't seem right, no. We cannot really comment on that. Okay. Understand. Also just wanted to understand how has the traction been. You obviously mentioned about, you know, March having some inclement weather impact on the summer product portfolio. Given the fact that we have quite a bit of summer product portfolio and, you know, we that also carries towards, you know, Q1 of the current year. I mean, how is the trend been in the April and May months so far? Maybe more of a qualitative kind of, you know, understanding of how the things are moving in terms of some of the portfolio. We've got a good pipeline fill, but March and April have seen some bit of inclement weather. We'll have to see how the overall season plays out before commenting on this. People, there is a mixed view. One is there has been inclement weather. There is also view that it'll be a longer summer. We'll wait and watch before we can really comment. We are hopeful things will get better. Understand. Lastly, on the international business, if you can just share some bit of color in terms of international business growth, momentum, and, you know, how it is panning out in terms of geographies? International business continues to be about 25 countries like we mentioned, where the top five countries contribute about more than 1/4 of our business, and two brands, Sugar Free, Complan, constitute about 75%-80% of our business. During this financial year, we had a challenge between quarter 2 and 3, where there were supply issues in New Zealand and some local economic issues in Nigeria, which are two of our largest markets, which pulled down our growth levels. On a longer term basis, we continue to believe a high double-digit growth and growth which will contribute which will be accretive to our domestic business. We are back at growth after those couple of quarters of difficult phase. Now we expect continued or good growth momentum. For FY 2023, the international business would have seen some bit of a growth or it would have actually been more like a flattish number? It would be more flattish, because of what we faced through in FY, in the 2 mid quarters. Understand. Thanks. Thanks for that. Thank you. A reminder to all participants, you may press star and one to ask a question. Our next question is from the line of Kaustubh Pawaskar from Sharekhan by BNP Paribas. Please go ahead. Yeah, thanks for giving me the opportunity. My first question is on Sugar Free. Recently, WHO has come out with a notification stating that you cannot claim now non-sugar substitute as a low-calorie, you know, products. In that context, do we see any impact on the sales of some of our products under the Sugar Free brand? A related question to it is what, you know, if we have any study, what percentage of our sales come from actual, you know, diabetic patients who are using this product? What percentage of our sales is coming from, you know, the customers who are actually looking to considering it as a lower, you know, calorie product? Let me just first clarify. I don't think it can be debated by anyone, including the regulators, that sugar substitutes, like stevia, sucralose or aspartame, actually offer lower calorie than sugar. I don't think that's up for debate. They have clarified certain stances, which necessarily is not in line with their earlier stances, but I think we'll understand, and they are also saying country by country, these issues will differ. Right now I'm not seeing any significant impact. We'll have to study and also work with the regulators and do what is right best for the consumers. We do not see any significant impact as we speak now, and we'll work on this as we just talked. Will it have any change in our, you know, marketing strategy of this product or change in, you know, the branding strategy? Sugarlite, I think this product is specifically look from that perspective only. Will there be any change in the strategy for the brand or product mix? As of now, we've not emphasized. We'll study and we'll see if we need to make any shifts. As of now, I think we hold what we are doing. We have sufficient scientific evidence to back what we're doing. Right. In India, just wanted to understand from the consumption pattern whether these diabetic patients or, you know, having issues some with related to sugar, are having more attraction to these products or, you know, it's a mix of both, people who are looking towards the low-calorie products are largely from the healthy, you know, substitute point of view are also, you know, using Sugar Free as one of the substitutes. It's a mix of both, and there is good reasons from a health perspective for both of them. We believe it remains consistent. Okay. My next question is on the new product launches, what you have done. What is your current contribution from the new product? In the coming years, what are your, you know, new product pipelines? New products constitute about 3.5% of our share of our sales, products launched in last 2 years. Just one more question to what Ajay just asked earlier about the strong traction to the summer products. This quarter, we have seen our volume growth at around 4%. We have seen demand environment slightly improving. Considering the strong summers and the little bit of improvement in the sentiment, should we expect this volume growth momentum to improve in the quarters ahead or you expect it to remain at 4%-5% in the near term? Hard to guess how the whole thing will shape up, because the weather is very, you know, volatile thing, and it just changes every week, you know, especially in summers. We are happy that there has been a slight improvement over the last quarter in volume growth. We just hope that things get better, inflation stabilizes, and consumers are coming back and, you know, spending more. This should help us focus on volumes and new consumer traction. That really remains our focus. Hard to put a number to what that should be like in the next couple of quarters. Okay. Thank you. I will get back. Thank you. Before we take the next question, a reminder to all participants that you may press star and one to ask a question. Our next question is from the line of Mayur Parkeria from Wealth Managers India Private Limited. Please go ahead. good evening, sir. Thank you for taking my question. Am I audible? Mr. Mayur, may we request you to use the handset for optimum audio quality. Am I audible now? Or is it disturbed? Could you say something, please? Am I audible? Yes, please go ahead. Yeah. I had just one small question, actually. you know, just trying to understand. From Nutralite side, we did, you know, visited a couple of, you know, restaurants and health related focused players who are big in the regional markets. Obviously they are unorganized, organized, both put together. The feedback we got was that, you know, it actually scores very lower, even compared to Amul in terms of the, you know, B2B acceptability for the brand. Would you like to highlight any specific reasons for that? Is it lack of understanding more clearly? Is it actually some tweaking more needs to be done on the product side, or is it your availability and other issues? Just your feedback on that, your understanding on that, please. I'm not sure which of the markets you visited, but we'll, we can take it offline. At an overall level, we are seeing a good traction on Nutralite and both volume and value level. We are quite positive about Nutralite's acceptance and both trade as well as. B2B segment? B2B specifically, yes. The positives which you are seeing, are they specific to any specific geographies which you are seeing, in terms of? Can you add some color on that, please? I think our growth is coming across the country. While North and West are the largest of the markets, but even the South and East, which are relatively smaller parts of the market, are also showing a good growth traction for us. Secondly, on the Everyuth side, you know, the personal care, this category is very large and it's growing in terms of, you know, the, as the income levels are increasing. I'm talking of a little macro trend here and a lot of, you know, people focusing in the, you know, right from young age of teens now focusing on, you know, products like this. Where do you see in the next 3, 4 years, what can be the size of Everyuth brand for us? What are the product gaps which you see over there, if any? Everyuth, if I were to take this question in two to three parts, I think first, we've seen a consistent double-digit growth except for the disruption, years like COVID or one or more. Largely, we have seen a very consistent trend of good double-digit, you know, momentum on Everyuth. Largely led by us growing, focusing and growing the segments which we play strongly in, which is the scrubs as well as the peel-off masks. Even the new spaces that we, you know, address the wash-off mask as with the tan removal, that's also helped us grow. That's really been our strength, and we have built around it. We have extended our product. We already have face wash, so a broader facial cleansing. We've also got into lotions and other skin benefits. We continue to believe that Everyuth has a strong double-digit growth potential over the years and can be a sizable brand for us, being a strong player in especially facial cleansing and some of the extension that we may choose to run. Sir, we see a lot of application for apricot, coffee, XYZ in these kind of... I'm sorry, I'm just being little more specific. We don't see that in Everyuth. Just a feedback that, you know, when we talk to some of the youngsters, they and what is missing in this brand, these are some of the variants. I don't know if they are available and not in specific markets or in they are not available, in general, I don't see. Some of these variants if you can see and, you know, look at it. No, sure. We look at it and we take your feedback and, we'll look at it, also what we can do to widen our portfolio. Yes. Thank you very much, Anish. If there's some more suggestion, you can take it offline. Sure. Thank you. Thank you. Ladies and gentlemen, you may press star and one to ask a question. Our next question is from the line of Alok Shah from Ambit Capital. Please go ahead. Yeah, hi. Thanks for the opportunity. My first question is on the distribution side. While you highlighted on the distribution expansion guidance for F24, just want to check, there was automation and digitization efforts also being rolled out about 2 quarters back. Where could the company be on that? Where all we can see the benefit, whether you see more happening on the fill rates or is it more on the sales force efficiency costing. Where can we see that benefit percolating? That's my first question. Alok, just to address, I think first of all, the field force automation, we have 100% of our field force now digitized with the digital support, and that clearly gives us a better control and better efficiency of the field force. It also helps us drive specific SKUs and a broader range selling through these people. That's one benefit. The other is also in terms of our available data being available and being able to sharply target our products for the right store types and the markets which we see. This is from the frontline digitization. At the back end, our digital efforts are more towards our operations planning, which is more at stronger inventory planning, some of which we've been focused and we are trying to drive as we move forward on those. Got it. Would you be able to share with respect to this new distribution expansion that will happen this year, any specific markets or geographies that, you know, we look to expand into? Yeah. There are certain states and certain geographies that we have actually targeted, but they are very specific in nature rather than a broad brush, where we see that there is a potential from where we are to go deeper and wider. Those are the markets and, you know, city by city planning has been done looking at data and the brand tractions that we have decided. There will be also a plan to, you know, go after those specific opportunities as we go. Just a follow-up to that. Now our focus, just to close that, will be more to drive overall reach over next two to three years to 3 million outlets. That I think will give us a much better outcomes. Okay. Okay. Just a follow-up to the previous one. The new cities and the target markets that you look to expand into this year, whether those markets would be serviced through a wholesaler as of now and now you're looking to go through the distributor route or those markets are completely sort of untapped as of now? I think with our brands and the market shares we have, most of these markets don't tend to be untapped. Some of it actually ends up taking over from indirect servicing to our direct servicing, which allows us for a better, wider, range availability. Quite often some of these outlets have some of our products already in there. Got it. Absolutely clear. My second question was in terms of, while you're given revenue share from new launches at about 3.5%. I just wanted to check conceptually that when you look to introduce a new product or a brand, what are the typical markers that are defined and, you know, those products, how they would have fared on those markers? If at all you can share something qualitatively on that. We look at, for us a new product is which has not existed for us. We don't count as variants and flavors as just a new products, but we count as more of products which are either new in technology or new benefit from a consumer's perspective that we count in this. Typically we make a good mix between substantive innovation versus platform innovation, where substantive takes a much larger share of investment and therefore far and few. Those are the guiding principles that we work with. Got it. Got it. Absolutely. Yeah. In terms of some of the markers, would it be more like, you know, geographic reach in first 12, 24 months, or would it be more like a brand size that you look to achieve? What are the broad markers that are sort of defined for a brand manager as a new variant or an adjacent case launch? A new launch has typically a go-to-market plan which covers the distribution target and repeat purchase targets, where the brand acceptance is one of the things that we track and see what we, there could be some course correction which can be done after first year's learning. Therefore, there is typically a similarity test market in a research which is then played out in the marketplace, both from a market execution on ground, repeat purchase and investments that it takes. Those are things. Got it. Got Got it, got it. Lastly, just from a bookkeeping perspective, just wanted to check that, would it be possible to share the volume growth, but you gave for the quarter? I'm not sure if you gave for the full year. Your broad revenue breakup across brands, if at least some ballpark numbers you can share just for my sake. Thank you. By brand we can't give, but for the full, for the full year, you can take it at 4.8 as a volume. Okay. Got it. Got it. Thank you very much for this. Thank you. Thank you. Our next question is from the line of Karan Bhuwania from ICICI Securities Limited. Please go ahead. Good evening. Thank you for taking my question. Sir, first question was the price hike that you implemented of close to 7.8%. If you look at the gross margins, it was in FY 2021, it was close to 54%-55%, and currently we have a gross margin of close to 51%. Do these price hikes take care of moving the gross margins back to those levels? If you can guide on that. Yeah. Price hikes, you know, in the last quarter we have talked about the price hikes, and last quarter we have taken about 6.5% price hikes. At a year-end, you know, it's noticed that the price hike has taken care of the gross margin for the, you know, as compared to the last year. Now, if we compare it with the 2021, the margin which you are talking about, there has been a, you know, certain inflation led themes which actually, you know, like nuclear inflation, which we have not been able to pass it on, that's the only thing which probably is impacting. Over the next few quarters we'll further take price increases to get back to those levels. We've been able to cover the last year's number in the last quarter gone by, but we will take further price increases as needed to go back to our earlier levels. Got it. Thank you, sir. Secondly on looking at the working capital inventory and receivables have increased. If you look at the receivable, total receivables change and which have increased from INR 140 crores to INR 210 crores, and inventory also increased from INR 360 crores to INR 457 crores. Any reason for this stock of inventory and increase in receivables? Receivable was mainly year-end, credit passed on to the customers or distributors and customers, and that's temporary in nature. The inventory increase which you see is on account of the stocks which we had at Sitarganj factory and it's under legal approval and we did not have access to. The second reason is that we had accumulated some inventory as a strategic backup for our manufacturing. Okay. Okay. Got it. Got it. All that will correct now. Yeah. In the half year 2. Yeah. Half year reporting you will see that correction when we share. Got it. That is very useful. Finally on one more thing, sir. We saw a news article that Sugarlite brand, which is... There was a news article that some Delhi marketing has been given the rights to Sugarlite brand. If you could highlight what are the plans going ahead for that particular brand, yeah, that'll be helpful. We've gone to the higher court and We believe it will get sorted as we move along. Okay. Okay. Okay. Got it. That is helpful. Thank you. Thank you. Thank you. Thank you. Our next question is from the line of Urmil Shah from Anvil Share and Stock Broking. Please go ahead. Sir, I just wondered if you can throw some light what is the sales contribution from Glucon-D as Everyuth Complan and all the categories, and also gross margin-wise contribution? We don't share that. If you can just say highest to lowest, both the categories? We don't do product wise. No, no. If you can just tell us which is the highest contributor to your sales from- Glucon-D is the highest contributor. Second? We do not give. Okay. More detail. Okay. Okay. That's it from my side. Thank you. Sir, this in the coming year, the gross margin should continue, no? As all the inflation is coming down, all the raw material inflation except milk is coming down. Our gross margin should improve on year-on-year basis, no? Compared to last year. Yes, absolutely. That's the part we are working on. Okay. Okay. Sir, that's it from my side. Thank you. Thank you. Our next question is from the line of Pritesh Chheda from Lucky Investments. Please go ahead. Just, I didn't understand why you mentioned that you need to take further price hike to recoup the margins, especially when we see the bridge on slide nine, where the GM-led impact is not there in the quarter, and we have a slide on all the material prices drop except milk. On one side we said we need a further price hike, and on the other side we said we'll recoup the margin just on the previous participant's question. Which one we should refer to? There are specific opportunities of price hike, for example, Complan, which have got impacted, and we will take those price hikes as is required. There will be a mix impact. There will be some raw material or packaging material where the costs have come under control, and there are some products where we will still have opportunities of price increase. We will consider that and, therefore, we still have a distance to cover to reach to our FY 21 gross margin levels. The FY 22 gross margin which you lost about 200 basis point, that you'll recoup at least or even that you-. That we recovered already. Ha. That was I referring from last quarter we have already recovered, which means you'll recover this 200 basis points at least, and for it, for you to recover FY 2021 GM, you have to take price hikes. Mix of cost reductions or due to. Pricing. price improvement as well as some price increases will get delivered. Okay, okay. The last year's price increases that you have taken, how much of it will still flow to FY 24 growth? Two-third has already flown in. One-third will flow to the next one. Okay, sir. Thank you very much. Thank you. Our next question is from the line of Kapil Jagasia from Nuvama Wealth Research. Please go ahead. Thank you for taking my question. Sir, my first question is on the increase in other expenditure, which you have mentioned in the presentation. The first point being the third-party manufacturing of Glucon-D, going up because of seasonal demand. The scenario would have been the same before COVID times, right? Because these two years of COVID were impacted. What was the scenario pre-COVID like? Even during that time there was increase in the third-party manufacturing. We used to have before the acquisition, we used to have a third-party manufacturing. We had completely taken it in-house. Now that we have shut down our Sitarganj plant and we were expecting a good summer, we tied up additional quantities just in case if the volumes go beyond the regular levels, then we should have a backup plan. Therefore, that's one of the reasons we covered it up. Would this other expenditure be going up in next quarter in Q1 also? No. All the expenditures have been accounted for. Yes. Okay. Second thing, you know, again, on the margin. Sorry, I joined in late. Like you had mentioned your journey of operating margins towards 20%, most of the raw materials being, you know, in control now. And you know, you have taken price hike and you further price hike warranted. Can we expect the journey towards 20% operating margins in FY 2024 or, you know, it would still take some time, you know, or probably, you know, probably, you know, more than a year for, you know, that level to be reached? It takes some time for us to get there because, gap in gross margin itself is substantial. We want to get our gross margins back. With the scale obviously and the operating leverage, we should get that. It'll take a longer period of time. You know, just on a broader level, you know, if you could answer like in each of the product segments, which product segment would have reached, you know, the gross margin level, you know, as it was before this inflation scenario cropped up? Complan would be the most challenged, but otherwise most others are getting there. Are there or almost getting there. Okay. Okay. Okay. Fine. Fine. Fine. Thank you very much. Thank you. Ladies and gentlemen, you may press star and one to ask a question. A reminder to all participants, you may press star and one to ask a question. Our next question is from the line of Ajay Thakur from Anand Rathi. Please go ahead. Thanks for taking my follow-up question. Also wanted to understand on the ad and sales promotion spend, which has actually come down for FY 23. What would be the outlook for the same going forward into FY 24 and in FY 25? We continue to remain interested in taking it up to 10.5%, 13%. We balance given what our PNL can afford, and that's why, we balance it. When the gross margins can afford, we'll push it back to those levels. 13% is broadly what we are looking at in terms of. That's half. I mean, it's a range we tend to operate. It's also a function of some of the initiatives which can sometimes drive it up to 13%, 13.2%, sometimes don't have. That's the range we'll operate with. Understand. Once we have recovered our gross margin. Sure enough. You also mentioned about in the one of the earlier calls about tax rate guidance. For what would be the tax rate guidance for 2024, 2025? I believe for 2025 you had mentioned about, you know, taxes coming back to the full tax rate. Will that be the case? No. Up to 2024, 2025 we will not have any cash payment of tax. Thereafter, we'll be in the normal regime of cash payment. no taxes for even 25 you are saying? Yeah. Okay. Okay. Thanks. Thank you. A reminder to all participants, you may press star and one to ask a question. Hi. Our next question is from the line of Akshay Krishnan from ICICI Securities. Please go ahead. Yeah. Hi, sir. Thanks for your time. My question is on the Complan business. We had this economic unrest in Nigeria and also the supply chain issue down in New Zealand. I want to understand what will be the contribution on both on the international aspect and also on the domestic side for Complan enterprise, sir. Could you repeat? Sorry, I didn't get it clearly. The question is on the Complan business. We had this supply chain issue down from New Zealand and also the economical unrest in Nigeria. I just wanted to get to know the brand contribution between the international and the domestic line for Complan as a whole. On a quarter-over-quarter and on a year-over-year basis, what is the growth that we are seeing in spite of this political and economic uncertainty? We review them separately and therefore most of our answers are separate. 7% to 8% of India business is done outside in the international. Is all I can give you on same, sir. Okay. Just a follow-up on that. Now with the milk inflation prices and then also the powder prices down that we get from New Zealand, now how are you capturing the RM pressure just for Complan? Outside India there is no significant pressure because the milk prices are actually. Which are produced outside. Yeah, these products, New Zealand product is. We have third party locations in New Zealand as well as Oman, which cater to most of the Complan requirements outside India. There the milk prices are actually coming down substantially. There are no, not very similar pressures that we face in India. Okay. Got it. My follow-up question is on the Everyuth. Now, when we see the market share change that we see, captured on between the facial cleansing and the scrubs. Now, towards who's the competitor that we are gaining and are also losing because I find scrubs business we are getting a 68% market share increase on a YOY basis, on a bps basis, and also on the facial cleansing some 30. Are we getting some competition from the other PSA on the natural segment? It's still very small segment and there are still marginal players. I think our focus is to grow these segments because the opportunity is much larger in terms of driving it. Obviously, the smaller players who are not able to impact are the ones who lose out in this one. Okay. Got it. The final question, sir. On the rural aspect, since we have a stress on the rural aspect continuing, are we getting any hints from the rural consumers on the SKU rationalization? Are they looking at the slower, the lower SKU packs or they are bit comfortable on the mid-tier thickness of the SKUs? The voice is not clear. Especially at the-. I'm not able to follow your questions clearly. if you could... Sorry. I just wanted to understand on the rural demand. I just want to know at a rural aspect, what are the consumers' preference? Are they looking at the lower SKUs or are they looking at the SKU price reduction point? My point is, are they looking at a SKU price point of INR 5, INR 10, INR 15 or is the demand at overall being impacted? I think both are at play. I think overall demand has been impacted in rural. Obviously some traction has moved towards higher access packs, which are the lower lower priced packs, which has helped us, you know, stay in the game. It's a mix of both. There is a general reduction in demand, LUPs have filled in part of that demand, whatever exists. Therefore there's a down trading as well. It's a mix of the two. Can you just highlight what will be the contribution from the lower SKU packs, like a INR 5, INR 10 pack? What will be the majority contribution from the rural side compared to an urban? For us, that's not such a significant driver of numbers beyond a point on LUP. Complan, like we are growing, but it's not just the rural, it is also in other markets. Glucon-D, we've just launched the sachets, which are more on the go than rural. In Everyuth where we have a good realization on the sachets, there, I think that's been growing fairly well, and the contribution continues to go up. That's largely how it is. I think at a market level, I would say it's confused. Okay. Thank you. Thank you. As there are no further questions, I would now like to hand the conference over to the management for closing comments. Thank you everyone for your questions and your suggestions. We will meet next quarter. Thank you. Thank you. On behalf of ICICI Securities, that concludes this conference. Thank you for joining us. You may now disconnect your lines.