Ladies and gentlemen, good day, and welcome to the Sharda Cropchem Q1 FY 2022 post-results conference call hosted by Antique Stock Broking Limited. 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 touch-tone phone. Please note that this conference has been recorded. I now hand the conference over to Mr. Manish Mahawar from Antique Stock Broking Limited. Thank you, and over to you, sir. Thank you, Mallika. On behalf of Antique Stock Broking, I would like to welcome all the participants on the call of Sharda Cropchem. From the management, we have Mr. R.V. Bubna, Chairman and Managing Director, Mr. Ashok Vashisht, CFO, and Mr. Dinesh Nahar, GM Finance on the call. Without further ado, I would like to hand over the call to Mr. Bubna for opening remarks. Thank you, and over to you, Bubna. Thank you, Mr. Manish. Good day, ladies and gentlemen. A very warm welcome to everyone present here for the earning call of Sharda Cropchem Limited for Q1 FY 2022. Sharda Cropchem is represented by myself, Ramprakash Bubna, Chairman and Managing Director, our Chief Financial Officer, Mr. Ashok Vashisht, and Mr. Dinesh Nahar, General Manager, Finance. Talking briefly about our Q1 FY 2022 results. Revenues grew by 60% year-on-year from INR 389 crores in Q1 FY 2021 to INR 623 crores in Q1 FY 2022, led by strong volume growth across the geographies. Europe grew by 47% year-on-year, NAFTA grew 75%, and LATAM grew about 107%. Rest of the world grew by about 20%. During Q1 FY 2022, our agrochemicals and non-agrochemicals mix stood at 86: 14. The agrochemical business grew by 74% year-on-year. Europe grew by 60% year-on-year. NAFTA grew by 99%. LATAM grew by 110%. Rest of the World grew by 7.5%. The formulation to AI mix stood at 89: 11 in Q1 FY 2022. The non-agrochemical business grew by 8% during Q1 FY 2022. NAFTA grew by 13.5%. LATAM grew by 69%. Rest of the World grew by 38% year on year. On the other hand, Europe de-grew by 19% during this quarter. The company continues to strengthen its product portfolio by prudently investing in new product registrations. Sharda Cropchem's total product registrations stood at 2,570 in Q1 FY 2022. Additionally, 1,026 applications for the product registrations globally are at different stages of approval. The CapEx stood at INR 64 crores in Q1 FY 2022, vis-à-vis INR 71 crores in Q1 FY 2021. With this brief overview, I would now like to hand over the call to our CFO, Mr. Ashok Vashisht, for discussing our financial performances. Thank you very much. Now to Mr. Ashok. Thank you, sir. Ladies and gentlemen, a very good evening to all of you. I will give you a brief about the company's financial performance for June quarter. During the June quarter, our revenue grew by 60.1% on quarter-on-quarter basis. This was mainly driven by strong volume growth across geographies. At 42% and price impact was favorable to the tune of 8.2%, and coupled with exchange gain of nearly 3.7% during June quarter. In terms of gross profit, we grew by 57% on quarter-on-quarter basis. From INR 116 crores in quarter one last year, we grew to INR 183 crores in quarter one FY 2022. In terms of gross margin percentage, we were at 29.3% for quarter one FY 2022, which is the slight dilution in the margin is mainly because of the product mix impact. In terms of geographical mix, Europe region was the highest contributor, followed by NAFTA and Latin America. In terms of EBITDA, there was exponential growth by 119%, wherein from INR 49 crores in quarter one last year, we grew to INR 107 crores in quarter one this year. Even in terms of EBITDA percentage, we expanded the margin by 463 basis points to 71.1% in quarter one FY 2022. In terms of profit after tax, we grew by 36.4% on quarter-on-quarter basis from INR 28 crores last year same quarter to INR 38 crores in quarter one FY 2022. In terms of cash profits, we were at INR 92 crores for quarter one FY 2022 in comparison to INR 63 crores for quarter one last year. With this strong performance, we further strengthen our cash position. The net cash position as on June 30th, 2021 is INR 3,061 crores. In terms of working capital, in terms of days, we were at 88 days in quarter one this year against 89 days quarter one of last year. With this brief, we open the floor now for questions. Again, I would like to thank each one of you for your time and participation. Thank you. 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 the touch-tone telephone. If you wish to remove yourself from the question queue, you may press star. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is on the line of Bharat Gupta from Edelweiss Securities. Please go ahead. Hi, sir. Thanks for the opportunity and congratulations for a good set of results. My question pertains to, can you bifurcate the growth in terms of pricing and the volumetric gains which we have done over the quarter? Yes, just one minute. The growth based on volume was 48.2%. What was the other? Okay. Foreign exchange, it was 3.7%, price variation 8.2%, sales variation 60.1%. Right, sir. With regard to what Mr. Gupta is trying to say, in terms of volume growth, the impact is 48%, price impact 8%, and forex 4%. Sir, can you just throw some light, like we have done a reasonable amount of volumetric growth. What can be the key growth drivers? Like Europe we have done nearly 60% odd growth. Ultimately can you throw some light, like what have been the key growth drivers for us during the quarter? I would say better penetration into the markets which we are already present in. More acceptability with the customers. Sir, in terms of our volumetric growth, can it be due to the incremental registrations which we have done over the quarter and the remunerative crop prices globally? You see, you cannot link directly with the number of registrations because there is a big time lag between the time we get the registration and the time when we start reaping the benefits of it. As we have stated, our total registrations were 2,570 and in March the figure was- One minute. It was 2,543. We've added 27 registrations during this quarter. I would say that the addition of these 27 registrations in this quarter would not have direct impact in the growth of business. This growth has come up from the registrations which were received maybe 12 months back or nine months back or 15 months back. Right, sir. Sir, we are seeing now 8% kind of a pricing increase which have been taken. Earlier when we used to organize concall, so you highlighted a couple of points that there has been stasis, like in terms of MNCs not hiking up the prices. How are we seeing that trend? Have we targeted increasing the prices for the molecules which we are also dealing? See, whenever there are sometimes a shortage and MNCs are not able to meet the requirements of a particular market or particular zone, we do have a spurt in the demand, and then we take advantage of the situation and also hike our prices marginally. The customers are always in need of the product. Right, sir. Sir, my last question pertains to the gross margin side. We have seen that the gross margins remain impaired during this quarter. Is it primarily because we haven't taken the requisite price hikes, or we haven't fully passed on the price hikes to the end customers and there is still room for further improvement? Is it a new norm where the gross margins are likely to continue below 30% range? No, there is a possibility of gross margins touching 30% or even crossing 30%. That is likely to witness in the subsequent quarters, right? Earlier guidance, which used to be 31%-33% range. That is sustainable going ahead. It is sustainable. Right, sir. Sir, just for a bookkeeping question, can you give a gross margin data across different geographies? Yes. See, gross margins in Europe were in the range of 39%. NAFTA it was 23%, LATAM 17%, and Rest of the World, 28%. Pardon? 29.3%. In North America it is how much, sir? 22.8% to be precise. Okay. Sir, can you also throw some light on the volumetric growth which we have done in the region? Yes, please. Volumetric growth was 31% in Europe, 73% in NAFTA, 103% in LATAM, and it de-grew by 13% in Rest of the World. Sure, sir. Thank you so much and wish you all the best. Thank you. Have a nice day. Thank you. The next question is from the line of Tarang from Old Bridge Capital. Please go ahead. Hello, sir. Good evening. Two questions from my side. One, sir, looking at your P&L, it seems like logistic cost inflation has not impacted you materially. While on the ground we hear different things. Just wanted your thoughts on that. Second, if you could give us some sense on the 1,030-odd applications, 1,026 odd applications, what proportion of them would be pending in Europe? Would you have some visibility in terms of how many of these applications should get registered, say, over a span of next two, three years? Your name is, Mr. Tarang? Tarang Agrawal. Tarang. Yes, sir. Mr. Tarang, if you have been exposed to our business model, we have said repeatedly year after year, that the process of registrations is very unpredictable. It is highly time-consuming, and it has to go through various levels of bureaucratic processes. Predictability as to how many registrations are we going to get in the next quarter or next three quarters is very difficult to say for three years. Three years. Yeah. All I can say is that the number of registrations in the pipeline in different geographies. Would you be interested in that? Yes, sir. The figure is about 648 registrations in Europe, which are in pipeline, 137 registrations in NAFTA or North American countries, 154 in Latin American countries, and 87 in Rest of the World. Okay. Thank you. Sir, on logistics? Yeah, logistics. See, logistics have increased considerably. In our case, the logistics have increased by about 38% from Q1 FY 2021 to Q1 FY 2022. Since the freight cost forms a very small percentage of our total cost, the impact is not so much felt in the totality. On the other hand, in case of non-agrochemical business, the logistics form a very significant part of the cost. There, we have been able to pass on more than 50% of the price increase on our consumers. Nowadays, when we quote to the consumers, we tell them this is our FOB price. This we save maybe $4,000 per container, is the sea freight from shipment to port of discharge. Sometimes this $4,000 goes up to $16,000. We tell them we can save 50%. Out of this $12,000 increase, $6,000 will be borne by us and $6,000 will be borne by you. Customers are fully aware of the situation, and without much of a grudge, they are willing to pay the 50%. Sometimes we also ask more than 50%. Since it is a universal phenomenon nowadays, everywhere is the same situation, we don't have much of a difficulty in passing on the logistics cost to our consumers. Correct. Thank you, sir. Yes. Thank you. We would like to remind participants that you may press star one to ask a question. The next question is from the line of Somaiah from Spark Capital. Please go ahead. Hi, good evening. Thanks for the opportunity. Sir, my first question is with respect to the top-line growth. Can you just share some color in terms of the broad macro trends that you are seeing in Europe and NAFTA? The broad macro environment there, both in Europe and NAFTA. There has been an increase in the demand and growth. As you are all aware, agriculture assumes the highest priority among all the countries and all the governments in the countries. There is no drop or no stillness in the demand. The demand is growing, the world population is growing, and food products are in demand. There is a good increase in the demand. This demand has not been impacted adversely because of corona. Sir, with respect to our previous comment on having a better penetration in the last quarter being one of the drivers, what has actually led to us in terms of a relatively higher penetration last quarter? What has aided in better penetration last quarter? Sir, wider product mix and longer presence in the market, good quality, and good service. Got it. Sir. In terms of raw material cost price trajectory, so how are you seeing things from Chinese raw material cost angle? How has it been in last quarter and how are you seeing things currently? I have been too wrong in the last two quarters. I was thinking the Chinese prices are subduing, and they did that for some time. Now they have started again increasing. The trend is mixed. For some products, the availability is comfortable. For some products, the current price is maybe 40% or 50% of a price about a year back. In other products, the prices came down to 30%, 40%, and now they have gone up to 60%. It's a dynamic and continuously changing situation. It varies from product to product. Overall, there is a small increase, but it is affordable and it is manageable. Got it. Sir, now that we have a very strong 60% growth in this quarter, so what would be our thought process in terms of outlook for this year, both in terms of top line and margin front? What is our hope? I would say around 15%, ±3%-4%. Okay. Sir, one last question. What would be the reason for the tax rate higher this year, and do we expect this to kind of get back to normal in subsequent quarters? I will ask Mr. Ashok to comment on that. One minute. Can you speak a little bit? This is Somaiah, right? Yes, sir. Somaiah. Actually last year we got some benefits from MAT credit. This year, in India, Sharda Cropchem Limited, we have got a dividend income, where there is a tax implication, and when you consolidate the accounts, it gets eliminated. Actually your tax rate would be in the range of 30%-32%. It is actually this quarter looking higher. When we close the year, it will be in the same range, around 30%-32%. Got it, sir. Sir, you had mentioned about the volume growth for this year, and so you had given Europe, NAFTA, the volume growth on a YoY basis. If you can give the volume number as well, it should be helpful, sir. The number that you used to generally give on a quarterly basis. Sure. You want the numbers for the quarter ended June 2022? Yes. In Europe, the quantity is 3,695,700. In NAFTA, it is 2,666,000. In Latin America, it is 16 lakhs. Rest of the world, it is 435,000. Total, around 84 lakhs. Thank you, sir. Thank you. Thank you. The next question is from the line of Dhruvam from HDFC Mutual Fund. Please go ahead. Yeah. Thank you so much, ma'am. Sir, a question again on the top line. A solid 60% growth, although, I mean, we see the last year was a bit weak, last year base was a bit weak. Even on a two-year basis, it is about 50% growth, which is very strong. If I look at some of the global majors, they are talking about strong demand, but not as strong as what we are seeing. Also, if I see the trends for the last two, three quarters, we have been doing 30% kind of growth. Sir, what is changing? Is there something which has changed? If you can help us understand what is driving this growth and what can continue to drive healthy growth for us. 15% looks conservative based on what we have been delivering for the last three or four quarters. For the full year that you have given. Sir, I have answered this question in part to one of the previous participants. I would say it is greater penetration in the market and more acceptability among the customers. When you enter a market as a generic company, for the first one or two years, many people don't know you, and they keep their fingers crossed whether we will be able to perform and deliver. Slowly, they are gaining confidence in our capability to perform and deliver the goods, and deliver it on time to their requirement. Our prices are always better than the multinationals, so they say, "Why not?" I think these are some of the factors which have helped us. Got it. Sir, basically, because you are growing, of course, our size is relatively smaller to the others, I mean, to the global majors. I would understand you are gaining market share from some of the APIs. I mean, the generic players are gaining market share from this. Is this the trend which is happening, the innovators are not cutting prices, and that allows you to penetrate or push your product even better? I believe this trend has started now. This has only started recently. I mean, the acceleration in trend. Why do you think that the growth will only be 15%? Why not higher than that? Sir, we are playing on a very tough terrain. Multinationals are still controlling about 75% of the market or even more. We are a very small fry, so we are not big enough to force them to cut down on the prices. Our presence is not impacting them so much. For us, of course, in terms of relatively or percentage-wise, we are growing, but we are very small fry compared to them. Of course, they don't like us, but then this is the rule of nature. They're tolerating us. Yeah. Sir, I mean, given the growth that you're doing- Our 30% growth may impact them by 1% or half a percent. True, sir. It's relatively small for them. I'm just wondering on a very incremental basis, you're taking a decent market, it seems. It seems a developing trend. I'm just trying to understand why this cannot continue for a very long time, given that advantage that you have, the cost advantage that you have. Probably if the innovators are not cutting prices, this trend will ideally keep on continuing. I mean, more and more this shift will happen because this is just the tip right now. I mean, as it gains scale, others will also look at you for sourcing, isn't it? See, these are the factors which are giving us the confidence to survive and sustain, and of course, grow. The path is very difficult. The challenges are very much there, and every day we come across some challenges, and things are not so easy, sir, as it appears on paper. Yeah. In reality, there are a lot of challenges. That's true. Sure, sir. Sir, just to also better understand on this growth, is there any set of products which are driving this? Or is it also probably because the last few quarters have also coincided with a lot of these shipping issues and all these things, sourcing issues, because we have been able to better manage probably our sourcing, that is why we are also getting larger volumes, probably others are not able to do that. Is that also a factor which is helping us? Or that's not a big thing that you see? No, I think these are the factors which are helping us. Okay. These are the factors really helping us. Okay. Our ability to take quick, on-the-spot decisions. If the shipping company says the prices are increased by 20%, we don't try to bargain. We accept it because we know after two days it may become 30%. This is what we are facing and experiencing every day. Our customers in the non-agro business keep on complaining that one week back you said this is the freight, now you say this much. We are very polite and tell them, "Please check up from any other sources that you have." Here we are not making any extra money, and they do check up. Everybody's very intelligent and smart, and our ability to adapt to the situation is helping us. Got it. Okay. Sir, what I was trying to also understand then is, say, for example, the shipping issues get resolved in, say, a year or two. Say probably a year is what the market forecast is currently. Would this growth normalize? Because then the other players will also start entering the market and try to take your share. Is that a thing? If those things improve, we'll be very happy. I don't think it's going to cost us in terms of volume and growth. Okay. We will also take advantage of that situation and as everybody else. Got it. Sure. Great, sir. That was very helpful. Thank you so much, sir. Thank you. Thank you. Reminder to the participants, anyone who wishes to ask a question, you press star and one at this time. The next question is from the line of Rohan Gupta from Edelweiss. Please go ahead. Bubnaji, hi sir, good evening. Hi, good evening. Rohanji, I always confuse there are two Guptas in Edelweiss. One is Mr. Bharat Gupta and one is yourself. Am I right? Yes, sir. Bharat is my colleague also with Edelweiss. Good. Good to know and clarify. Go ahead, sir. Okay. Sir, first of all, congratulations on such a strong set of numbers driven by volume growth almost 50% in the current quarter. Sir, you also just mentioned that the times are very challenging, and you still mentioned that for a full year you are looking close to 15% growth. I understand that it's coming from the conservative approach that you have. Sir, given such a solid growth in the first quarter itself and just I think elaborating from the previous participant's question, we have already achieved such a solid growth. It means that even for the rest of the year we do only just 5%-6% growth, we will achieve 15% growth for the full year. You mentioned such times are challenging, and we don't know how the competition will act in the market. Sir, can you elaborate a little bit more what are the challenges you are seeing? While you also mentioned that the global agri in the current scenario has benefited. Pandemic actually has helped the global agricultural industries and all. All these things and the volume and growth which we are seeing in the current quarter is mainly driven by, you mentioned that you have increased further your penetration in the main market. Sir, what are the concerns and what are the challenges which you are seeing in the market which can deter you in the latter part of the year from doing anything? Rohanji, the biggest fear today is a sense of uncertainty. This corona pandemic was totally unthought of about 15, 16 months back. When our prime minister declared the lockdown for the first time for about three weeks, if I recollect, we were thinking after three weeks things will come down to normalcy. Then it got extended by another two weeks. Now the whole thing is getting extended for about 16 months. There are a lot of uncertainties which nobody can be confident of what is going to happen next. Now people are talking about Delta and Gamma and all kinds of various viruses. We cannot know. We do not know. It is going to impact the whole world, whole universe, and we will be a part of it. That overconfidence we do not want to have and we should not have. Now shipping or freight costs, nobody could imagine that a container which we used to pay $1,500, we'll have to pay $15,000. Still shipping companies are surviving and the businesses are surviving. There are a lot of such things. There can be any climate change. Now we hear some glaciers melting. Many things. Sea water level rising. These are the acts of nature. Such a heavy rain in the city of Bombay and this part of India was not imaginable. Now some of these factors are affecting some people very badly. If some section of people gets affected badly, the indirect impact will come on everybody. I cannot name any specific factors, Rohanji, but the things are uncertain. Sir, fairly understand, sir, that we are living in a dynamic world, more so after the pandemic. Many risks related to agri, sir, have always remained there in agri-input industry because that is the nature of the industry, especially monsoon, unpredictable nature of rainfall and the climatic conditions. That definitely we have always been used to. Yes, I understand, sir, in last one year we are living with the pandemic environment that is quite uncertain for everyone. Sir, apart from that, if things remain like this, do you see that this kind of growth in the current quarter which we are seeing, if it is mainly driven by our further penetration in other markets and the people probably increasing acceptance of generic products that was released we had sometime later. I'm not getting into, sir, once again, the uncertainty of the nature of the pandemic. I'm just seeing if the current scenario continues and the kind of work which you have done, your company have done in the last one and a half year, which has helped you in gaining more penetration in the main market. Can we have this kind of 30%-40% kind of volume growth for this year? I would say in totality, I would place it around 15%-20% or 12%-18%. We may grow. Volume growth. Today I'll be very afraid to go onto a very big figure, because I have to face you after six months again. No, sir. Fairly I have to be very practical. 15%-18% of growth you are talking about, it's mainly volume that grows. Correct? Volume plus also in the profitability also. Right. EBITDA and all those related ratios. We are living in a pricing increasing scenario. You said that the prices across the products are continuously rising. The current quarter, 8% was mainly price-led growth. I just was looking more of the volume growth. Can we have a 15%-20% volume-led growth for this year? I didn't understand the last part of your question. I thought you were making a statement. What is the question, Rohan ji? Sir, you are saying that given the conservative scenario, you want to give a 15% growth. That you are talking about mainly volume, sir? It's a total revenue growth which includes both price increase as well as volume? It is total revenue, sir. Okay. Why, sir, prices are continuously rising? Commodity prices or input prices are continuously rising. You just mentioned that though definitely sometime back China was showing some cooling off in the prices, but it has once again started hardening. Sir, it means that we will continue to be in a price rising scenario, correct sir? Both ways. See, sometimes we get quotations from our regular suppliers, which is surprisingly at a low price. Some other time, the same supplier for some other products, the prices are higher. It's totally a question of supply and demand. For a person like us, I mean, the company like Sharda, it is very difficult to make a precise prediction. We will say that this is our hunch feeling and this is our intuition, that we should be able to withstand and all that. Thirdly, I'm very confident of our team. Our team is very committed and dedicated. Every crisis, they find some way out and solution and come out as a winner. We have not faced any failure situation anywhere. I think I have spoken enough. Yes, sir. Right, sir. Sir, just another question is on our Latin market. We have seen that a very solid growth. You mentioned almost 100% growth in Latin market- Sir, would request you to rejoin the queue for follow-up questions. Okay. Thank you. No problem. Thank you. The next question is from the line of Dhruvam from HDFC Mutual Fund. Please go ahead. Yes, sir. Thank you for giving me. Sir, one question. Just one clarification again. Sir, do you see a trend of pre-buying which is also aiding growth? Quickly, there is a lot of supply issues and all those things, people are trying to stock up to just avoid any future uncertainty. Is that also a trend that you see, and which is also aiding growth? Mr. Rohan, I mean, Mr. Dhruvam, you are a very intelligent person. You know many things. This is also the case. Lot of people are doing some pre-buying, and they want to be more sure and certain because agriculture is one activity where the nature doesn't give you time. If there's a rain, it comes all of a sudden, you have to be prepared for it, and any kind of eventuality. There is a trend. Those who can afford and who are more certain and confident, they are trending to do some pre-buying. Okay. Sir, I'm not sure, from an overall inventory level, have they in the system, I'm saying about the system, not our inventory level. Have they increased significantly or the inventory levels are normal, pre-buying is largely getting even absorbed at the final consumer level also? They are getting consumed at the final consumer level. People are preparing. Say, for example, if the spring is in the month of April or May, people used to start stacking the goods sometimes in the month of February, March. Now the same people are thinking or are planning to have the goods in their warehouses in December. They don't want to take chances. I don't know what makes them so uncertain. A lot of people are trying to buy and have the goods in their warehouses, even in the month of December. Okay. It does not mean that they are increasing the quantities in a very big way. They are making themselves secure. Yeah. Got it. Sir, one thing is just to understand how the business works. For example, you sell to the distributor, the distributor finally sells to the final consumer. Sir, for example, the distributor was earlier associated with an innovator. He was buying the innovator product and selling that branded product. Now you come in. Probably because he is buying from you, because you have that product available, he comes to you, he buys from you. He probably has an advantage now. Sir, have you in your past experience seen that the distributor goes back to the innovator after getting the benefits from you, he realizes how much benefit he is providing? Does he still go back to the innovator and start procuring from him when the situation normalizes? You get a sticky customer that way? This is not a general trend. Once my customer is accustomed to buying from us, he is intelligent enough not to spend unnecessary extra higher prices and buy from the innovators. Yeah. Sir, that is what I was thinking, because anyways you too mark to market your pricing to the innovators. You don't keep a differential. Unless we run into a situation when our supplies have dried up. To replace those supplies, if you need four to six weeks or eight weeks, then of course he'll go to the multinationals. As long as our goods are available, he will not go to them and pay higher prices. Got it. Once you get a customer, it is largely, for a very broad sense, once you resume, it is largely sticky. He will continue to give you volumes. There are many customers who want to play safe. If they have a requirement of, say, 100 gal, he will buy 80 gal from the multinational and 20 gal from me. After two years, he will reduce the multinational share to 75 gal and buy 25 gal from me. Okay. In this way, they are also securing themselves that they are not let down by our incapacities in any way. Got it, sir. Perfect, sir. Sir, it's a small question. On the FX item, why do we have this FX fluctuation? I understand we have global trading, what this FX item relates to, that you have shown in the P&L? FX items is foreign exchange. Foreign exchange. Sir, this is mainly the cross-currency exchange rates. Like Euro-Dollar or Canadian dollar to US dollar, all the different currencies and US dollar. Okay. Somewhere I'll take that off. No worries, sir. Got it. Thank you so much, sir. Thank you. Thank you. The next question is from the line of Rohit Nagraj from Emkay Global Financial. Yeah. Thanks for the opportunity. Sir, my question pertains to a broader strategy level. As I understand, about 20, 22 products which are going off patent during this decade. Do we have any positive, negative impact from the sale, and if there is any, how are we going to take maybe advantage, or how will we be scaling through the situation? Thank you. Sorry to interrupt, Mr. Nagraj. Sir, there's a disturbance coming from your line, sir. Request you to mute your phone. Management will answer your question. Hello, Mr. Rohit. Yeah. Can you hear me now, sir? Yeah, we can hear you, but our respected lady was not able to hear you, so can you repeat your question for her benefit? Yeah. Sir, basically, we are expecting about 20 products going off patent during this decade. Will it have a positive or negative impact on our business, and how are we assessing the situation? Thank you. Mr. Rohit, this will be having a positive impact on our business. The biggest advantage we have today in this business is that we are not manufacturers. These kind of changes affects the manufacturers when a product gets banned and they're sitting with a big capacity to produce it, and that becomes idle. That leaves a vacuum there. Because we have very wide range of portfolio, if glyphosate goes off the market, we are not impacted. If there's a big glut of glyphosate in the market, we have less emphasis, we stop buying them. A person who's manufacturing, he can't help it. He has to dump the product because he can't keep it sitting on the stocks. We are very nimble-footed and very flexible, and this business model of flexibility helps us in these kind of situations. That's helpful, sir. Thank you so much. Best of luck. Thank you, sir. Thank you. The last question is from the line of Himanshu Binani from Antique Stock Broking. Please go ahead. Yeah, hi. Thank you for taking my question. Sir, I do have a few questions. Firstly, on the intangible write-off side, I just wanted to understand what would be the quantum basically. How should one actually look for the FY 2022 numbers for the intangible write-offs for this year? You are Mr. Binani? Yes, sir. Mr. Binani, this is another factor which is again, not very predictable with certainty. This kind of write-off is driven by many factors and a combined effect of all those factors. I would say that we will not have any significant write-offs. We do not foresee any significant write-off this year. Okay, sir. Sir, any sense on the margin profile for this current year for the next three quarters basically? Given an inflationary RM situation, how does one look into the margin profile overall? Margins? Yes, sir. We are very positive. We are hopeful of improving our margins as the time passes. Okay. Sir, one last bookkeeping question from my end. Can you please help us with the registration breakup geography-wise? I think we have given that, but this information is available with me. I think I've actually- Registration geography-wise is 1,347 registrations in Europe, 237 registrations in NAFTA countries or North American, 748 registrations in LATAM, 238 in the Rest of the World. Total, 2,570. Sure. Thank you. Thanks a lot, sir. Thank you. Thank you. I would now like to hand the conference over to Mr. Manish Mahawar for closing comments. Yeah. Thanks, Mallika. On behalf of Antique Stock Broking, I would like to thank the team of Sharda Cropchem for coordinating an opportunity to host the call. Bubnaj i, would you like to make a closing comment, sir? Yes, sir. I am very grateful to all the participants who have taken their valuable time for this conference, we have tried to answer their questions to the best of our capability. I want to repeat that we learn a lot from all these investors who are putting questions. This helps us to guide our business and manage our business better. We understand what is expected by an investor and what is expected by the financial experts out of any company. It is very helpful and learning, sir. Thank you so much. Thank you. On behalf of Antique Stock Broking Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you, everybody. Thank you so much.