Ladies and gentlemen, good day and welcome to Sharda Cropchem Ltd Q1 FY 2027 earnings conference call hosted by Antique Stock Broking Ltd. 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 this conference call, please signal an operator by pressing star then zero on your touchtone telephone. Please note that this conference is being recorded. I now hand the conference over to Mr. Riju Dalui. Thank you and over to you, sir. Thank you Sania, and good afternoon to everyone. A warm welcome to all participants on Sharda Cropchem's Q1 FY 2027 earning call. Joining us today, Mr. R.V. Bubna, Chairman and Managing Director, Mr. Shailesh Mehendale, CFO, and Mr. Jetkin Gudhka, Company Secretary. Without further delay, I would like to hand over the call to Mr. Bubna for his opening remarks. Thank you and over to you, sir. Thank you. Good afternoon and very warm welcome to everyone present on this call. Along with me, I have Mr. Shailesh Mehendale, our CFO, and Mr. Jetkin Gudhka, Company Secretary and SGA, our Investor Relations Advisors. Hope you all have received our investor deck by now. As you are aware, we are engaged in the marketing and distribution of a wide range of agrochemical products catering to diverse global customer base. We develop comprehensive dossiers and obtain product registrations in our own name, and we continue to allocate substantial resources towards securing registrations. Which strengthens our market presence and helps us a substantial foothold across key markets. As on 30th June 2026, our total product registration stand at 3,016, up from 3,011 on 31st March 2026. With an additional 1,027 applications for product registrations globally at the approval stage. We have started FY 2027 on a strong footing with our operating performance showing clear improvement during the quarter. Revenue for the quarter rose by 9% year-on-year to INR 1,074 crore. Gross margins have grown. Sorry. Gross margins expanded by 120 basis points to reach 36.7%, while EBITDA grew a healthy 25% to INR 178 crore, taking the EBITDA margin up by 220 basis points to 16.6%. This improvement was driven by favorable product mix and our NAFTA, LATAM, and rest of the world markets all delivered growth along with the better profitability. Turning to Europe, our largest market and traditionally the one with good margins, we saw a temporary softening in the performance this quarter. This comes on the back of an exceptionally strong FY 2026, so some moderation was not unexpected. The main reason behind this was the distributors cut back on the stock largely because of unusual heat wave conditions and swept across parts of Europe this summer. It's worth noting, however, that even as the revenue in Europe softened, our agrochemicals margins in the region actually improved during the quarter. Given our strong registration base and the long-term relationship we have built with customers across Europe, we remain confident that volumes there will recover in the coming quarters. LATAM, on the other hand, kept up its momentum and have remained one of our strongest growth engines this quarter. We remain a debt-free company with cash bank and liquid investments of INR 767 crore as of 30th June 2026, as compared to INR 702 crore as on 31st March 2026. We continue to maintain our FY 2027 guidance of 10%-15% revenue growth, gross margins in the range of 35%, and EBITDA. One minute. Remain focused on strengthening on long-term growth platform through sustained investment in our registration pipeline. With this brief overview, I would now like to hand over the call to our CFO, Mr. Shailesh Mehendale, for discussion and our financial performance. Thanking you. Thank you, sir. Good afternoon, everyone. Coming to the quarter one FY 2027 performance, revenue stood at INR 1,074 crore in Q1 FY 2027 versus INR 985 crore in Q1 FY 2026, an increase of 9% year-on-year. Coming to the split, agrochemical business grew by 8% year-on-year to INR 915 crore, whereas the non-agrochemical business grew by 15% year-on-year to INR 159 crore. Gross margin stood at 36.7% in Q1 FY 2027 as against 35.5% in Q1 FY 2026, an increase of 120 basis points. EBITDA grew by 25% to INR 178 crore with EBITDA margin at 16.6% as against 14.4% in Q1 FY 2026, an increase of 220 basis points. Forex gains stood at INR 7.5 crore in Q1 FY 2027 as against INR 73.1 crore in Q1 FY 2026. This lower Forex gain had a corresponding impact on our EBIT, PBT and PAT for the current quarter. EBIT stood at INR 120 crore, PBT stood at INR 118 crore and PAT stood at INR 88 crore. On like-to-like basis, PBT, prior to this Forex gain, grew by 16% year-on-year to INR 111 crore, reflecting the underlying strength of our operating performance. Coming to the balance sheet, total equity stood at INR 3,245 crore as on 30th June 2026, as against INR 3,137 crore as on 31st March 2026. We remain debt-free company and have cash bank liquid investment of INR 767 crore as on 30th June 2026, as against INR 702 crore as at 31st March 2026. Coming to working capital days stood at 88 days as on 30th June 2026, showing an improvement of 10 days as compared to 31st March 2026. We can now open the floor for the questions and answers. 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 their touchtone telephone. If you wish to withdraw 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. The first question is from the line of Anubhav Mukherjee from Prescient Capital. Please go ahead. Sir, am I audible? Yes, sir. Sir, my first question is that, can you split the 9% revenue growth in Q1 into volume, Forex and price product mix? Can you repeat it once again, please? Sir, I was asking that the 9% revenue growth you have delivered in Q1. Yes. Will it be possible to split that into volume growth, Forex, and realization growth? Yes, sir. It is possible. Now just take a note. The volume growth has been -1.6%. FX impact is +12.7%. Product mix impact is -2.1%, and total growth is 9%. Sir, thanks for sharing that. Sir, in the press release for the quarter, it was mentioned that our product mix has improved and we have been able to sell more of high-value products. Sir, why is that not reflected- Sorry to interrupt, Mr. Anubhav. Your line is not clear. Okay. Is this better? Yes, sir. Yes, it is better now. Yeah. Okay. I'll repeat my question. Sir, in the press release for the quarter, it was mentioned that our product mix has improved, and we have sold more high-value products. Why is that not reflecting in the realization? The realization growth is negative, as you mentioned. Can you give some color on that? I will ask Mr. Shailesh Mehendale to address this question. Yeah. I think you have to look at overall picture in the sense we are having product mix negative to the extent of 2%. Looking at geography-wise, you can see that there's a degrowth, particularly in this particular quarter in Europe. There is a good growth in our other geographies. You have to look at as an overall position. This will have improvement in the coming quarter. Yeah. Okay. Sir, I also- Yes, please. Sir, I also have a basic question for CFO sir. Sir, in the P&L, the INR 7.5 crore gain in Q1 FY 2027, and there was a corresponding INR 73 crore gain in Q1 FY 2026. Can you explain what is that and what is the accounting treatment that leads to that gain? That will be very helpful. Yes, just hold on. The last year, quarter one, June 2025, is having INR 73 crore of gain, which is basically mostly unrealized gain on account of a sharp favorable movement of almost 10% in euro-USD, right? Whereas in the current quarter, there is only 1% degrowth in the Forex movement, mainly euro. That has resulted in the higher exchange gain accounted in the last quarter, vis-à-vis current quarter, there is a INR 7.5 crore gain accounted. Is it clarified? I get that, sir. I get the Forex movement. Yeah. What are the line items in the balance sheet that lead to this translation gain? If you could throw some more light on that would be useful. There's a lot of volatility in this. One quarter, there's a lot of gain, then there's loss. How do we account for this? Which are the line items in the balance sheet that lead to this? Basically, this particular unrealized gain or losses is coming in our balance sheet on account of realignment of our foreign currency trade receivable and trade payables. Those needs to be repriced on every balance sheet date and will have some favorable impact or unfavorable impact on our P&L. That is how we reflect a separate line item in our P&L statement to show that this is the FX gain or loss. This is mainly on account of unrealized gain or loss on repricing of our foreign currency receivable payables on every balance sheet. Get that. This is the sequential quarter-on-quarter movement that is. Correct. Yeah. If you track our full-year performance for the financial year 2025-2026, you will find more or less we are having similar gain in the last three quarters. This was a so-called exceptional unrealized gain, which is accounted in FY quarter one, June 2025. Because of this sudden appreciation in euro movement, almost by 10% in that particular year. From 31st March 2025- 30 June 2025, there is a favorable movement in euro, which is our main, I can say, position for our foreign currency receivables. Those have repriced by almost 10% increase in that particular quarter. This has resulted in that gain, unrealized gain. Get that. That's very helpful. The clarification is very helpful. Yeah. Just to clarify, for the purpose of our EBITDA calculation, we don't consider whether it affects gain or loss. We don't consider that. EBITDA is without considering these effects of gain and losses. Just to clarify on that point. Okay? Yes, sir, it's very helpful. Sir, I think you mentioned 10%-15% revenue growth for the financial year. Will it be also possible to share what kind of volume growth you are expecting for the year? Volume growth. Sir, almost 5%-10%. Okay. Thanks. I'll get back in with you for follow-up questions. Thank you. Thank you. The next question is from the line of Deepak Poddar from Sapphire Capital. Please go ahead. Yeah. Am I audible, sir? Yes, please. Yeah, sir. First of all, thank you very much for this opportunity, sir. Just I wanted to understand, first up, on the Europe thing. You mentioned that because of reduced restocking by distributor, we had volume issues in this quarter. But as we speak, has the restocking rate by the distributor has improved as we speak now? Or by when you expect this to normalize? Yeah. It has improved and has reached to normal, in most of the cases it is reaching the normality. Okay. It has improved and as we speak, it's normalized? Yes, please. Oh, okay. Great to hear that. Secondly, on your raw material, do we import any kind of raw material? What do you mean by import? I mean, for the raw material, do we have to import anything or we get it domestically sourced? Mr. Deepak, you have not studied our business model. You seem to be very new to our business model. Yes. I'm recently tracking it. We don't manufacture anything anywhere in the world, including India. Okay. We get everything manufactured as per requirement from the manufacturers, mainly from China. There's no question of an import for Sharda in India. 100% is contract manufacturing, right? Yes, sir. It's mainly we do it from China? Yes, please. Okay. Understood. Lastly, on your margins, you mentioned your volume and revenue outlook. Anything on margins, EBITDA margins, how should one look at FY 2027? It will be in the same range of 18%-20%. Okay. That would be it from my side. Would like to wish you all the best. Thank you so much. Thank you, Mr. Deepak. Thank you. The next question is from the line of Madhur Rathi from Counter Cyclical Investments. Please go ahead. Sir, thank you for the opportunity. Sir, I wanted to understand that in the past three years, we cumulatively added close to less than 100 registrations across the geographies that we are, versus around 300 in the previous three years, between FY 2021 and 2023. Sir, how should I look at our growth going forward? Because the registration pipeline is not as strong as it was earlier. If you could help me understand. Sir, I think it all depends upon how you look at it. When you say strong, what do you mean? We have been investing around INR 450 crore-INR 500 crore all these years, this year the investment is going to go up. Secondly, I have been telling all my friends and investors that the process of registration is full of all the uncertainties. Nobody can say when will he receive the registration and at what cost. It's full of uncertainties, but still, our efforts are very much there and very strongly there. They are also giving us the results and returns. Right. Sorry to interrupt, sir. Sorry. Please hear. Yeah, sir. I wanted to understand with older molecules, I think most of our registrations are previously three years out, like three years older, and there is a regulatory or scrutiny towards the older molecules, towards newer generation molecules. Sir, how should I look at our business going forward? Because right now, this past one or two years, there has been a year-over-year improvement, but volume growth is not seen in this quarter. Are we facing some kind of pressure on the molecules that we have under registration? No, we are not facing any pressure on the molecules that we have under registration. All these things I have explained. In Europe, the volume growth has been affected by the weather. Unexpected heat and lot of unpleasant weather. Nothing to do with the molecules. Right. Sir, my second question was on the El Niño. Can we still expect that 10%-15% revenue growth even with the El Niño effect this year? Where is the El Niño effect? Far it is not there. It's only being talked about. El Niño is not new to the world. They keep on happening and going. The world still goes on, and the number of populace is increasing, and the requirement of the food is also increasing. Okay, got it. Sir, just a final question from my end. Sir, lot of our revenue growth has been driven by the volume over last few years. How should I look at it going forward? Will it be from new product addition, which are at a much higher realization, or it will be volume-led only going forward? Both. New products as well as the volume. Okay, sir. That was from my end. Thank you so much and all the best. Thank you. Thank you. The next question is from the line of [Vikas Singh] from Neo Capital. Please go ahead. [Vikas Singh], you may please go ahead. Yeah, sir. Thank you for the opportunity. Sir, your CapEx guidance was INR 500 crore in. Vikas, your voice is not audible. It is getting cut in between. I have not been able to hear and understand your question. You need to take the help of the anchor or take care of your instrument. Hello? Hello. Hello, can you hear me? Now I can hear you. Sir, your CapEx guidance was INR 500 crore for the year, but in the first quarter you have done INR 273 crore. Have you revised your CapEx guidance upwards? Sir, I have explained you for answering the previous gentleman. The process of registration is full of uncertainties. You cannot predict anything, we have not revised our CapEx investment for this year just by seeing what has happened in the first quarter. First quarter has been a little unusual because we had to spend very heavily on some data compensations, but that's not going to repeat in the rest of the year. It will be only INR 500 crore for the whole year. It could be INR 500, it could be INR 550, or it could be INR 480. Okay, sir. Thank you. Thank you. Thank you. The next question is from the line of [Rohit] from iThought PMS. Please go ahead. Yeah. Good afternoon, sir. Sir, just two, three questions. First question is on the new products. Can you, if it's possible for you to share, let's say, what is the contribution for us from these new products, let's say, products that you've introduced in the last 12- 18 months. If we can share what is the revenue contribution for the last year or this quarter, whatever you may see fit? That is my first question. Sir, the new products are contributing to the better margins and the immediate impact on the quantity is much lesser because the product has to have acceptability from the customers and get a recognition. Do you understand? Right, sir. Yes, sir. I understood. The newer products are more valuable to the company and older products are slowly getting faded away. Just as a thumb rule, do we have any sort of an internal framework or benchmark that we need to introduce? Like every year we should get a certain number in terms of volume or like you said, maybe value-wise it is not much, but any benchmark that you use for your new products internally that every year that we should introduce so many new products, or we should get so much volume from these new products or something like that? Just to understand. No, sir. As I have told you, new products, we do not know whether we'll get 10 new products or five or 15. That is not in our hand. We are totally dependent upon various government authorities and committees. They are not very scheduled. They have many other commitments. There are a lot of uncertainties, as I'm telling you. We try to do what best is available and what best is acceptable to the market. Got it, sir. I understand that. From your side, you keep your registration momentum going on. Is that the right way to think about it? Yes, please. Sir, the second question was I think you alluded to the fact that the volume recovery in Europe should be very strong for the next nine months. That is how we should take it? I have said the word "very" has been added by you. It will be strong. No. I mean, sir, given that- It will be better. it has been negative. When you're saying that your overall year you still see around 10% volume growth. Given that, the next nine months should be good is what I mean, much better than what you've seen. Is that the right way to put it? Expected to be. As I've told you, i n the first quarter, it has not been good, not because of any human factors. This is the effect of Mother Nature. We cannot predict. As the things are predicted, the next three months, three quarters, will be better than the first quarter. Got it. Sir, what is leading to this improvement in NAFTA and LATAM? I think last year, NAFTA was a bit tepid, but this year we've seen very good growth in the first quarter. Do you see this kind of momentum in the coming quarters also? Like for example, last year Europe did really well, which improved the margins also for us. Is this possible that in this year, as you said, that if volumes come back in Europe in the coming quarters, and if NAFTA and LATAM continue to do well, so like all three engines will fire together. Is that a possibility? Is it probable that will happen? I can only make a broad estimation. That Europe will come back to what it was in the previous year. Everywhere, there are a lot of factors which are not under our control and which you cannot predict. There are a lot of political impacts, weather impacts, and many other things, economies of various countries in different regions. You cannot do a very precise calculation that what will exactly happen. We have to prepare ourselves for all the situations that develop. Yes. Yeah. No, I totally understand. Just sorry if I have to ask this in a different way. If you can maybe help us understand what led to the strong volume growth in NAFTA and LATAM. Like last year, you explained what led to this sort of an improvement in Europe. If you can share similarly, if there is something structural that you've done, or like new products have taken market share or something like that, if you can share for NAFTA and LATAM specifically? The growth has been very good. All the factors, along with the weather conditions. Weather conditions also play a very important role. Sure. Thank you, sir. I think this is pretty much it from my side. All the very best for the coming quarters. Thank you. The next question is from the line of Riju Dalui from Antique Stock Broking Ltd. Please go ahead. Yeah. Hi, sir. My question regarding the gross margin. I think earlier you had guided for this full year gross margin of 35%. Now if I look at in terms of Q1, despite the lower contribution from Europe, you have achieved 37% kind of a gross margin. With given the recovery that you are expecting from the Europe market, how do you see for this full year gross margin going forward? Between 35%-37%. With that, you are still expecting the EBITDA margin of 18%-20%, right? Yes, please. Also one more thing. Sir, this time we have seen the LATAM market growth was very high in terms of volume and in terms of the overall value growth. What is driving this growth? Despite the lower contribution from Europe, your overall gross margin was at the higher level. What is driving this as well? See, again, this is a very detailed calculation, which cannot be explained on the phone or like this. I am giving you the total picture, and you have to just be satisfied with the total picture rather than going too much into the details of every region and all that. Doesn't help anybody. Understood. Yeah, sir. I think that's all from my end. Thank you, sir. Thank you. The next question is from the line of Nitin Shakdher from Green Capital. Please go ahead. Hi. Good afternoon to Bubna and to the management of Sharda Cropchem. I think most of my questions have already been answered on Forex and Europe market and product registrations. As an Investor, I just have one suggestion to make. I've understood the detailed calculation on the Forex gains on quarter-to-quarter and the volatility. What happens is when you release the results, the absolute comparison is quarter-on-quarter, and then you have to go into the fine print and then calculate the Forex gain, and then minus the Forex gain from the PAT comparison. Effectively, your PAT for last year without the Forex gain, Q1 FY 2026 comes to around INR 70 crore, and I think it is INR 88 now. Is there a way that we can offset the Forex gain and mention the PAT on a like-to-like comparison excluding Forex, as long as you make any regulatory and listing requirements? See, what's your name, Mr. Nitin Shakdher? Yes, sir. Mr. Shakdher, this Forex situation is totally beyond any human being's control. When we are talking about Forex gain or loss, we are talking about cross-currency foreign exchange rates. Now, any developments can happen in U.S. and the dollar goes up. Some development happens in Europe, the euro goes up. They are totally unpredictable by any human being. You cannot say, what is going to be the result of this Iran, Iraq, and so many wars. No, sir, I'm not debating that aspect of- No, this foreign exchange gains are. Sir, these foreign exchange gains and loss are very much dependent upon those factors. Correct. I'm not debating that aspect. I understand currency variations will be there. I'm just saying in reporting, when we are talking about Forex gains and plus and minus, and if it is affecting the PAT, then there should be a segment where you talk about without the Forex gain. Effectively, I need to know in quarter one, your net profit was INR 70 crore, and in quarter one of FY 2027, your profit was INR 88 crore. Simple. I'm just trying to explain and understand that as an investor in the capital markets, it's very complicated when I have to keep on calculating Forex gains and then I take off the impact of Forex gain completely, whether it's profit loss, it's not an operating part of the company's income any which ways. Is there a way that right now in Q1 FY 2026 comparison versus Q1 FY 2027 comparison, we mention profit after tax as INR 70 crore versus INR 88 crore versus INR 143 crore versus INR 88 crore? That's not a fair comparison. I think I'll better give this to my CFO. He'll be able to explain you better. Mr. Shailesh, please take it too. I think what you are facing so-called challenging calculating the PBT, PAT without Forex impact, right? Precisely, that is what we have given in our presentation which we have filed, that PBT impact without considering this EBIT, PBT, without this Forex impact, what is our like-to-like growth? That we have already given in our presentation. You can refer that. Yeah, I saw that. Effectively, as per regulation, you still have to include Forex gain as part of your statement. You still have to show a drawdown of 30%- 38% versus the statement is actually. It's unrealized at the end of the day. You have to still capture it. If it's unrealized, I think there can also be a way where you can talk about Forex after-tax without the impact of Forex. Profit after-tax without the impact of Forex. A comparison being INR 70 crore versus INR 88 crore in quarter-to-quarter like ones. What you have done, the working is absolutely perfect. When it comes to the reporting as per the requirement, we have to disclose that as a separate line item, which we are doing as per the requirement. That Forex, what is the impact? Though most of the part is unrealized loss or gain. Correct. Yeah. We will bring more in future if this kind of. We are taking your inputs and- What happens is that there is extreme volatility in terms of the declaration of the result and the stock impact. Once you have to go through the details, then you understand, and then the market participants realize, "Oh, actually it's because of Forex gain, and it is not actually a reduction in the net profitability." In fact, there is a 22%-25% increase in your net profit from quarter-to-quarter, if you look at it like-to-like comparison. Correct. Operationally, we have done better compared to last quarter. Because of this Forex impact, the reported numbers, which is there in your accounts, is showing some dip, but it is not the case. We are taking your inputs. We will way forward. We will amend those or give more clarity through our presentation. Okay? Thank you, sir. All the best. Some amazing growth rate, on NAFTA and LATAM and rest of the world. People only look at Europe going down, but they don't look at the growth rate of other countries and regions going well. I'm assuming after the weather issues resort, Europe will be backfiring and Sharda should be on track. Yes, sir. Thank you so much. Thank you, sir. All the best. Thank you. The next question is from the line of Himanshu Binani from Anand Rathi. Please go ahead. Thank you, sir, for taking my question. Congratulations on good set of numbers, sir. Sir, my first question is largely on the gross margins. Maybe if you can give me the region-wise gross margins for this quarter. Just one minute. Region-wise gross margins. In Europe, our gross margin has been 44.2%, NAFTA 32.8%, LATAM 16.9%, rest of the world 30.8%. Total, 36.7%. Sir, if you can give me the last year numbers also, last year 1Q. Wonderful. I was expecting this, I see that my documents are already there. Last year in Q1, Europe was 42.9%, against this year it has been 44.2%. Last year, NAFTA was 25.9%, this year, NAFTA is 32.8%. LATAM last year was 28%, this year it is 16.9%. Rest of the world, last year it was 26.8%, this year it is 30.8%. Total last year was 35.5%, this year it is 36.7%. Right, sir. Sir, the registration breakup, region-wise, if you can provide. One minute. I have the figures compared to March 2026 and June 2026. Okay. Do, sir. Okay. As on March 2026, Europe had 1,679 registrations. In this quarter, we've added three more to 1,682. NAFTA, we had 323 registrations, and in this quarter we've added two, which makes it 325. LATAM, 760 registrations, and they continue to be the same. Rest of the world, 249, and that also continues to be 249 at the end of this quarter. Got it, sir. Thank you. Thank you. The next question is from the line of Rohit Nagraj from 360 ONE Capital. Please go ahead. Thanks for the opportunity, and congrats on good set of numbers. Sir, first question is, NAFTA and LATAM, we have seen very strong top-line growth. However, the margins have been relatively under pressure. You just mentioned about the gross margins. Have we seen s ome kind of a difficulty in terms of increasing or passing on the increase in prices to the customers during Q1, and how is the situation during the last one month of Q2? Thank you. Last one month of Q2 has been better than the entire Q1. Right. Just a second question alike to the same. Given that there has been a strong growth in Q1, is it like pre-buying which has happened in these regions, and effectively some stocking has been done and which will normalize in Q2- Q3? Your just thought on the same? Sir, I didn't hear the first 1/3 part of your question. Can you please repeat it once again? Yes, sir. On LATAM and on NAFTA, we have seen very strong growth. Is it that some pre-buying has happened in Q1 and stocking has been done by the dealer distributors ahead of the season? Effectively in Q2 and Q3, that growth rate will probably normalize or slow down. Just your thought on the same. See, we don't have all the access to the information that our customer has. Some people, if they find that the prices are good and available goods are available, in order to secure the requirement of the products and in the proper time, they do some stocking. Right. I don't think there's a very strong trend or tendency on this side. It depends upon the individual customers. Sure, sir. That's all from my side. Thank you and all the best. Thank you, Mr. Rohit. Thank you. The next question is from the line of Viren Deshpande from Alphap eak Investments. Please go ahead. Hello? Am I audible? Yes. Yes, please. Mr. Bubna and Mr. Mehendale and the team of Sharda Cropchem, congratulations for the good set of results continuing over the last year also, which has been a very good year for the company. We are creating new historic higher revenues as well as profits. This is really commendable, that shows the differentiated model of the company, how it is helping it maintain to be resilient one in the difficult times also. Congratulations to you. Thank you, sir. Regarding this, I had two, three questions. Regarding this working capital also, we have managed it very well last time, and we have reduced it by 10 days. That is also commendable. The question is regarding this effective tax rate. This time has been quite higher at 26%. What is expected to be for the year? About 18%-20% I think was mentioned last week. I'll give the phone to my CFO. Okay. Our effective tax rate on annualized basis could be in the range of 18%-20%, which you will find in the earlier years also. Because we are having different tax rates applicable to our overseas subsidiaries vis-à-vis our Indian holding company, more or less, the rate will be in the range of 18%-20%. Annualized basis. The current quarter, there could be a higher rate, but this will get normalized when it comes to annualized basis. Regarding this, in this quarter, we had this amortization of around INR 100 crore, quite higher compared to the last quarter of last year also, and the preceding quarter also. Do we have any guideline for the year where this depreciation and amortization will be? This is again a subject of Mr. Shailesh. Yeah. Now looking at this particular this quarter depreciation, amortization, bit on a higher side. On annualized basis, you will find more or less it will trend will continue for this full year. Last year it was around INR 325 crore for the year? Yeah. This year- See, please understand, we are regularly investing in our this intangible CapEx, particular product registrations year- on- year. Yes. You can say INR 450 crore- INR 500 crore, which will get finally amortized and being a conservative policy amortization, this will have an impact in the subsequent period. That is how you will find an increase in the current quarter, and this trend will continue even for balance period. Annualized basis you will have more than this time. Instead of INR 325 could be around INR 370 crore-INR 375 crore. Okay. That will be nice. Because of the new registration cost right now, is amortized? Correct. That get amortized, this will continue. Yeah. You have to look at annualized basis, this depreciation now. Okay Yeah. Another question to you only. Regarding euro-USD, which has really made the change in our profitability. Last year it was very favorable at 1.16- 1.17, last year in the first quarter also and throughout the year. Now it is around 1.14. Yes, sir. If the volatility is not there, then our margins will continue to be in the similar level? Yes, sir. For this, you have to thank the most important political leader in the world, our friend, Mr. Donald Trump. Yeah. Yes, sir. Even if it is 1.14 compared to 1.17, et c., we will continue to have the similar margins which we are currently targeting about 35%+. More or less, yes. Okay. Thank you, sir. Just remember, our sourcing or purchasing is all the time in U.S. dollars. Our sales are in different currencies in different countries. Yes. These are totally unpredictable and incalculable. We have to just face it. Yes. If there is a big volatility, definitely the things will go difficult because you can't raise the prices last moment, et c., and realization. If it remains in the similar range, then the product pricing which we do for our selling also will be quite predictable and so? Mr. Deshpande, we have limited time, and we like to devote our time in constructive things and management of the business rather than a lot of ifs and buts, because ifs and buts don't lead us anywhere. We are facing many problems. If you can say there's a tomorrow catastrophe or all these things, we can keep on spending our time and imagining things. No, that is true. The world will stay and people will keep on growing and the business will keep on growing. Yes. Another important- Sorry to interrupt, Mr. Deshpande. You may return to the queue for any follow-up question. The next question is from the line of Anubhav Mukherjee from Prescient Capital. Please go ahead. Sir, thanks for the follow-up opportunity. Sir, can you share some color on what are the pricing trends you are seeing in your different market? Like, is the pricing improving sequentially? Yeah. Yes, sir. This is a very pertinent question, and the answer is the prices are improving. The prices had taken a very severe beating two years back, and now they got stabilized and they're slowly improving. Good. Sir, this quarter, the de-growth in our realization was then mainly product mix driven because of fall in Europe revenues. Is it the correct interpretation? More or less, yes. Good. Thanks, sir. That's my only question. Yeah. Thank you. Thank you. The next question is from the line of Himanshu Binani from Anand Rathi. Please go ahead. Sir, thank you for taking my question again. I just have one question. Last year, when we look into the four quarters, all the four quarters were like blockbuster. We started this year with a decline in the European region in terms of revenue. However, when I actually look into the gross margins for this quarter, as alluded by you, that stands at 44%, which is up by somewhere around 120 basis points on a year-on-year basis. While last year, four quarters, the margins are better during this quarter. Last year, the average was somewhere around 42.5% sort of, and this year we started with 44%. The point which I'm trying to make is, this sort of margins are likely to continue. How one should actually look into the gross margins, particularly into the Europe and the NAFTA region for the rest of the years? Mr. Himanshu, I'd like to answer your question in a very broad way. Right, sir. The answer is yes. We look forward to the same range and the same level. Why I'm saying that is despite a revenue decline in Europe, we have substantially improved our margins. Sir, any reason if you want to cite in terms of what has led to this improvement into the margins? Very simple. In the LATAM, the volumes have grown, but not the margins. Right. Okay. Margins have taken a small dip. You understand? In Europe, the volumes were less, but the margin was still very attractive and very good. This is largely due to the product mix or the price increase? I would say product mix and also to some extent, price increase. Mainly because of the product mix. Got it, sir. Thank you. Sure, sir. Thank you, sir. Thank you. Ladies and gentlemen, we take that as the last question. I would now like to hand the conference over to the management for closing comments. Thank you everyone for joining us. I hope we have been able to answer all your queries. We look forward to such interactions in future. We hope to meet your expectations in the future also. In case you require any further details, you may contact us or our Investment Advisors, SGA, who are our Investor Relations Partners. Thank you so much. Once again, thank you. On behalf of Antique Stock Broking Ltd, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.