Ladies and gentlemen, good day and welcome to FY 2021 annual investor presentation and earnings conference call of United Spirits Limited. We have with us today Mr. Anand Kripalu, Managing Director and Chief Executive Officer, and Mr. Pradeep Jain, Chief Financial Officer, United Spirits Limited. As a reminder, all participant lines will be in 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 is being recorded. I would now like to hand the conference over to Mr. Anand Kripalu. Thank you, and over to you, sir. Thank you very much. Well, a very good morning, everybody, and welcome to this results call where we will also review our full year performance and talk about some of the initiatives that have underpinned that performance. I'm Anand Kripalu. At the very outset, I want to extend on behalf of all of us a very warm welcome to our incoming CEO, Hina Nagarajan, who will take over from July 1st, 2021. Welcome, Hina, over to you to give a brief introduction of yourself to our investors. Thank you, Anand, for inviting me to be part of this session. Good morning, everyone, and welcome. Prior to taking on this exciting opportunity in India, I was leading the Africa regional markets arm, as they are called, for Diageo as managing director. Since joining Diageo in 2018, under my leadership, the Africa regional markets became a significant growth driver for Diageo Africa. I thrive to deliver results, and I am known for building strong teams that deliver outstanding outcomes with a strong commitment to Diageo standards and compliance. I have also been an active and passionate advocate for inclusion and diversity in Africa and more broadly at Diageo. Prior to joining Diageo, I have spent over 30 years in the consumer packaged goods business and held several senior marketing and general management positions at Reckitt Benckiser, Mary Kay, ICI Paints, and Nestlé India. I'm a commerce honors graduate from Delhi University and hold an MBA from the Indian Institute of Management Ahmedabad. I also have a diploma in hotel management from the Pusa Institute, Delhi. I am truly honored and delighted to lead one of the most exciting markets in the world for our industry. I know I've joined at a very difficult time, but I'm really energized and proud of USL results in such a tough year, riding on the strength of great brands and people, and on the foundations of what Anand and the team have created. I also look forward to interacting with each one of you in the next set of discussions, and I thank everyone for your time today. Thank you very much, and back to you, Anand. Thank you, Hina. Very warm welcome again. FY 2021, what a year we have had. I think if you had to script back to a year, nobody could have predicted how this year was going to unfold in front of us. From almost a complete lockdown at the start of this year to near towards the end of the fiscal, albeit with somewhat lower footfall, it's been just a journey of change through the year. Despite things being pretty open during the January-March quarter, the quarter just completed, as we know, there have been no big banquets, no big weddings, and none of those big consumption occasions that are really important for our business. Through this period, we have also seen certain changes that have been visible. The first is that alcohol behaves like a semi-essential category in a consumer's share of wallet. Therefore, we expect it to recover faster than other discretionary categories. Scotches will continue to grow faster than IMFL on the back of the fact that consumers who consume these brands are less price sensitive. People have found and discovered that in-home consumption is cheaper than out-of-home. Whiskey continues to grow from beer, particularly in the lower prestige and mid-prestige segments. This is expected to continue certainly as long as the pandemic persists with the fact that the on-trade is going to be relatively closed. Repertoire consumption declined during the pandemic. Moderation for Alcobev is the norm rather than downgrading irrespective of which socioeconomic class you're from. That's because alcohol plays the role of an identity marker for consumers, and therefore reduction in occasions and quantity is preferred over down-trading if you're trying to balance your expenses. Finally, in-home casual get-togethers are the most sought-after occasions during the pandemic. I'm sure that many of you who are on this call are now seeing that is becoming a reality. The real question is, how do you respond to a crisis? Our philosophy on this has been to focus on your circle of control rather than your circle of concern. Simply focus on what you can do and must do at a time like this. The first thing, of course, was to manage the crisis. I talked last year about the six Cs in our strategy for managing the crisis. First and foremost, care. This is the heart of USL, where employees and their health comes first. We are committed to the wellbeing of our employees and have launched significant programs to ensure that our employees are as safe and as much in the best of health as possible. Second, communication. During a crisis, you can only under-communicate, and you need to extend your communication not just to employees, but also to the wider ecosystem that depends on you. Third, the consumer. Keeping your finger on the pulse of shifts that are taking place and being agile and adapting as best as possible. Fourth, putting your customer first and ensuring that you support them and they feel supported, particularly during these lockdowns when their business has come to a grinding halt, and you do that through constant engagement with them. Fifth, cost. Dramatically reprioritizing and reallocating spend based on ROI. Dialing up productivity, so keeping your foot on the accelerator of cost savings and productivity across the lines of the P&L and having a laser-sharp focus on slashing non-essential spends. Finally, cash. The sixth C, cash. Cash is no doubt king. A single-minded focus on receivables and managing credit, managing advances, rigorously managing inventory, and optimizing CapEx spend based on business criticality and ROI. The six Cs that we focused on to manage the crisis: care, communication, consumer, customer, cost, and cash. The second leg has been to say that once this passes, we will emerge stronger as a company, or even in the windows that you have of the undulating increases and decreases of the pandemic. With every window, we will emerge stronger. For us, emerging stronger was on two legs. First, what will people say about our company when this pandemic passes? Did they say that this company stood up and emerged as a corporate citizen and did what they must do to help their people and the communities around them? That, for us, is look-back reputation. How will we be judged at the end of this crisis? The second leg of emerging stronger is to say that we must perform better than others in the marketplace. Pradeep is going to take you through detailed financials a little later. Here's a snapshot of how we have performed in the previous four quarters. What you can see from the segment on the left is our NSV growth. Our growth was 19%, if I remove Andhra Pradesh from the base, in the most recently concluded quarter, which is quarter four, and our P&A business without AP grew by 31%. This performance, albeit on a somewhat softer base, we believe is strong. In many ways, it just reflects the resilience of this business to bounce back when markets open. I also believe that in every quarter of the last year, we have outperformed competition in terms of our mantra of emerging stronger. I think importantly, we have seen a recovery of margins as well, and I think that really bodes well for the future of the business. With that context, let me dive a little deeper into today's agenda. I'm going to talk a bit about what's beneath those results through our strategic priorities, then hand you over to Pradeep to talk about our financial highlights in some more detail, and then I'll come back to move from looking through the rearview mirror to looking through the windscreen. As you all know, our performance ambition is to be one of the best performing, most trusted, and respected consumer products companies in India. This is what drives the passion with which we pursue every priority in this business. I'm sure when you read this, you will be able to connect with some of the stuff that we have done during this pandemic. The delivery of this performance ambition is built around five strategic priorities: to strengthen and accelerate our core brands. To evolve our route to consumer from being a push-driven organization to a pull-driven organization. To drive productivity so that you can invest in growth and also deliver improved margins, corporate citizenship, and finally, to build an organization that is not just ready for today, but ready for the future. Let's look at each of these in some detail. First, our brand portfolio is built around some of the biggest passion points for all Indians. First, Johnnie Walker is all about progress, and that's a very emerging market mindset to saying whatever happens, each passing generation must progress. Johnnie Walker is built on a legacy of making positive, progressive choices. Black & White whisky rides on the passion point of food, where pairing food and whisky, making it a kind of match made in heaven. Relaxing and unwinding with Black Dog, where it inspires achievers to at times pause so that they can savor their journey of success. Cricket and Royal Challenge whisky, hugely boosted by the association with two brand asset icons, Virat Kohli and the Royal Challengers Bangalore cricket team. Finally, music with our key brand, McDowell's No.1. Let's see what are some of the things that we have done around each of these brands. On Johnnie Walker, we focused our effort this year to inspire consumers to walk back to their favorite bars with the Walk In With Johnnie activation. It was a simple invitation to walk into the bar with any glass bottle, and then these would be reforged into bold Striding Man installations that will be kept in many of those stores. With the help of renowned glass artists, we were able to bring to life Striding Man installations across some key partner bars. On Black & White, we created an engaging short film, and if you haven't seen it, I encourage you to do that. It's quite an engaging film on sharing during the lockdown. On the inclusion and diversity, a renowned musician, a mixologist, and a fashion stylist came together over a brunch with Black & White to go back richer with shared stories and experiences. Finally, Black & White Pictures and Platters. A picture of a cocktail and a platter of food making that perfect, magical combination. On Black Dog whiskey, topical content with India's top comedian, Vir Das, and product-led content centered around the work from home theme. Our efforts on the Hipster pack continue to deliver momentum on this very interesting SKU, and it's now available across all planned markets in the country. I'm really happy to say that the momentum on the Hipster pack really continues. The integration of RC with RCB, as you can see, a special edition RCB player's jersey IPL pack. If you look at those packs, it looks like the player's jersey. That was surrounded by on-ground activation across outlets for the time that we could keep those outlets open. Also getting some key stars from our RCB team to do digital activation. Importantly, we won a YouTube Creator Award for surpassing a million subscribers for RCB. By the way, on social media, RCB was one of the most followed sports teams and most active sports teams in the world. I'm sure over the last few seasons, you would have also enjoyed RCB's performance on the field, both in September and October and in the more recently suspended IPL. Finally, Yaari and music and content published under the No. 1 Yaari Jam theme won 14 awards across categories during the course of the year. Supporting all this has been innovation and renovation that we've often spoken about. You can see the big, bold change in terms of the RC pack. You can see the change in the No.1 pack between the left and the right pack. That's the new pack. Also the pilot of introducing No.1 in a can. Finally, something that's just beginning to roll out as we speak, a breathtaking new, all new in fact, Black Dog whiskey, emboldened with a 14-year-old variant as well. You can see the difference on the right of your screen between the old packs of Black Dog and the new pack that's there below it. That's what's happening on our brands. Let's focus on our route to consumer and what are we doing on that journey. As you know, we think of India as at least three Indias. India is too large and complex to think of as one India, and we think of it at the minimum as three Indias. An affluent India of people who have globally traveled, they seek luxury experiences, and you need unique ways to reach these people. The middle India, who are brand conscious, willing to pay for value, and this represents the bulk of the prestige segment. Then, of course, aspiring India, which are people who are price conscious. They're just entering the consumption cycle, and that's where a large part of our mass business, popular brands really sit. We have a tailored strategy and a tailored organization structure to deal with each of these three segments. Let's talk about some of the things that have happened during the course of this year. Starting with Scotch whisky, we've had focused interventions to win at home, and we have enabled in-home consumption through do-it-yourself drinks on digital. Winning in the store, where we have gone in a focused way after duty-free sales and how do you capture duty-free sales in duty paid retail outlets within the country. Winning the on-trade, where we have leveraged our Raise the Bar program extensively to bring consumers back in. Festive season, the good news was that during the festive season, the markets were kind of more open than closed. We created limited edition packs, as you can see on the left-hand side, and also some stunning new visual identities for our key brands that came up in stores during the festive season as well. Finally, despite markets being closed, the renovation of McDowell's No.1 has had a big impact in the marketplace. Honestly, you have to see some of these stores to actually believe the impact that they had. Moving on to our third strategic priority, which is about productivity. We have continued our journey of focusing on driving productivity across every single line of the P&L. On net revenue management, ensuring that our spends deliver ROI and focusing on premiumization to deliver stronger price mix. Continuing to optimize our supply footprint, and we have taken several interventions, including factory closures, during the course of the year. Making sure that our marketing spends have a productivity program to, at the minimum, negate inflation. Continuing our journey of prudence on overheads, and the new effort now will be on office consolidation given the new future of work thinking. Finally, on cash. A massive debt reduction during this quarter. Many of you will recall we started our journey with more than INR 8,000 crores of debt in this business. We have come a long, long, long way since then, really bringing down the cost of capital and the interest costs for our business. Our fourth priority is on corporate citizenship, and I'll come back to more of it later. Apart from things like sanitizers and other support that we did, as you know, we have been rolling out Raise the Bar, which is a two-year program, and we're coming towards the end of only the first year. We have extensively worked for the revival of the on-trade with many of the critical customers who've been going through a very, very difficult time. The good news is that we will be continuing to do that through the next fiscal. We haven't taken our eyes off the environment and sustainability, which we also believe is a critical part of corporate citizenship. Our efforts to continue to promote positive drinking and the ethical marketing of alcohol, our efforts to build a more diverse and inclusive organization, not just within ourselves, but over time within our ecosystem, and continue to focus on the planet, optimizing water consumption and reducing greenhouse gases. Finally, on building a winning organization. Really four things here. First, we have continued to raise the quality of our talent via the right hires and also through the right development efforts for helping talent that we already have to reach their potential. We've tried to build a culture that is more open, more non-hierarchical, more fair, more apolitical, and above all, inclusive. That not just for genders, but people much beyond gender, people who are differently abled, people who have different sexual orientations, all feel very much included. We are continuing the process of simplification. We have done huge work in reducing the complexity of this company, and we continue to make strides on simplifying our business. One of the examples of this was reducing the number of layers from 16 to nine. Finally, we are continuing to engage and energize our teams through progressive policy that puts people genuinely first. I just want to conclude on this slide by saying we recently had our all employee value survey. More than 90% people participated, so it's a very wide representation and a highly quantitative survey. I'll tell you this, despite this pandemic, our employee engagement scores have never been higher. We are operating at the highest levels of engagement in this virtual world, and the level of pride in working for Diageo and for United Spirits has actually never been higher. We really do believe that we have managed the crisis as well as we could have, and we have emerged stronger, even though the crisis is not over yet. At least thus far, we've emerged stronger, both in terms of our reputation and standing up as a good corporate citizen and also with each passing quarter in terms of our competitive performance. I'm going to now hand you over to Pradeep to take you through the financial highlights in a bit more detail. Pradeep, over to you. Thank you. Thank you, Anand, and a very warm welcome to our investor and analyst community. Let me just walk you through the financial year 2021 financial highlights. Right. Okay, this slide is, what you see on the left are our full year numbers. Right? I think the story is all about the sequential quarter-on-quarter recovery that the business has staged. Anand has already spoken about the quarter-on-quarter recovery. I will not want to repeat that. Maybe what I'll quickly move on to is the next slide, where I decode the full year 2021 net sales performance based on some two or three consistent themes that we have been talking to all of you about. Right. Can we move to the next slide, please? Yes. Ladies and gentlemen, here I make an attempt to decode the 13.2% decline that you're seeing on a full year basis on our net sales. Right? The 13.2% decline roughly translates to about a INR 1,200 crore net sales shrinkage. Right? From that, I back off about INR 250 crores of bulk Scotch sales sitting in our financial year 2019/2020 to make it absolutely comparable. Right? There are three things that I want to kind of seal out the impact of. Right? One is the March 23rd up till June 30th impact of the lockdowns in the prior year. Right? We are getting a benefit of the nine days of March in our current quarter. Right? It's the April June quarter, which took the entire brunt of the lockdowns last year. That's roughly a INR 700 crore shrinkage, net shrinkage. It's a gain of INR 240 crores in the current quarter, it's a loss of about INR 1,000 crores, INR 960 crores that we took in April, June. Right? That's roughly about eight points of growth. AP market access we've been speaking of for the last three quarters. The reassuring thing is that we have finished the lap up now, and hopefully going forward, this will no longer be an item of variance in our numbers. That's roughly INR 330 crores. The third one that we've talked of in the last two quarters is the West Bengal excise policy, and especially its impact on the popular segment. Right? That's roughly about INR 150 crores. I think what I want to leave all of you with is that leaving aside the quarter one impact and the two stages that I've called out on the slide, we are extremely pleased with how the business has performed quarter- on- quarter, and especially with the momentum with which we are exiting Q4. Right? Exactly the same thing for our P&A business. Roughly what you see is the extreme right-hand side, that's roughly the number that you will see for the last three quarters on a combined basis. Let me move to the next slide, right, which is our EBITDA performance. Yeah. Anand, we can move to the next slide. Yeah. Headline level, the EBITDA margin actually shadows the net sales performance. Right? Again, on the top right-hand side, if you see the quarter-on-quarter from a -8% in Q1, we are exiting Q4 with an 18.5% EBITDA margin. That 18.5% is driven on the back of slightly muted A&P spending. We'll talk about that as we come later. Overall, I think we are exiting with a significant momentum on our EBITDA margin as well. The left-hand side shows the broad bridge in terms of our financial year 2021 EBITDA over 2019/2020. The two big blocks, if you see in terms of the margin are what we lost in that quarter one of 2021, the sheer scale of the net sales that we lost. Right? The gross margin of roughly INR 550 crores. That's about 150 basis points. The two blocks on the right-hand side, when you lose net sales value of that quantum, the operating deleverage that it produces. At a headline level, there are two factors that have impacted our 2021 EBITDA performance. The Q1 lockdown which led to the net sales value decline, and therefore the EBITDA loss on account of that, and the Andhra Pradesh market access. We've already spoken about the unwinding costs associated with Andhra Pradesh and the large franchise business that we had in that market. Obviously that has come down to absolutely zero. We can move to the next slide. At a PAT level, again, it mirrors completely the EBITDA performance. I think the one thing that needs to be called out is that last year we were currently overlapping two exceptional items in our tax line last year, therefore the tax line kind of provides us a bit of a kicker. Having said that, we are also taking the exceptional items of about INR 150 crores in our PAT line. Overall, our PAT overall reduces from INR 700 crores to about INR 310 crores. Again, want to provide comfort that we are exiting Q4 with PAT margins that are almost in line with our established run rates. We'll move to the next slide, which is about the cash. As Anand mentioned, extremely pleased with what we have managed to achieve on the cash front in the year 2020-2021. Apart from the EBITDA of INR 1,000 crores, the INR 900 crores roughly on account of working capital efficiency. The INR 900 crores of working capital efficiency were a combination of two things. We are lapping a slightly inflated base as on March 31, 2020. Apart from that, I think the focus on productivity and extracting efficiencies through all elements of our working capital, and the fact that all the state corporations have continued to pay us well on time, and our top-line momentum across the geographies has ensured that the money is rotating faster for our distributors and our wholesalers, which is reflecting in our day sale outstanding efficiency. We'll move to the next slide. Anand's already spoken of that, INR 1,500 crores of debt reduction. This is the maximum we have achieved in the last six years. I think 2015, 2016, on the back of a one-time gain, we had a higher debt reduction. After that, this is the highest debt reduction that we have achieved in one financial year. Also pleased to share, we had spoken of it, I think in the last quarter, that CRISIL has reaffirmed its AA+ and A1+ credit rating for our bank facilities and our debt program. The debt equity ratio continues to come down. It stands at 0.1% on 2020-2021. Interest savings, while you see only about a 13%-14% reduction on a full-year basis, again, if you look at the quarter-on-quarter numbers, I think our Q4 numbers have reduced by about 40%, 45% compared to Q4 of last year, especially after we have refinanced our non-convertible debentures of about INR 700 crores in the last quarter. Interest coverage ratio has come down a little because of our overall profit numbers coming down, as I explained a little while earlier. Like I said, that's only momentary. We can move to the last slide. Again, want to leave the investors on a reassuring foot. If you look at our earnings per share progression, up till 2019-2020, we have roughly been in the INR 10 per share kind of earnings per share, and we are again exiting with a similar momentum. If you back off the exceptional items that we have taken in this quarter, I think our earnings per share for the last three quarters has been in the range of about INR 2 - INR 3.3, and that's well and truly in line with the run rates that we were operating on earlier. In fact, marginally better than that. Return on capital employed has come down because of the overall profit for the financial year. Again, not to keep saying the same thing, we are exiting at healthy levels, and hopefully that should sustain going forward. That was, ladies and gentlemen, a summary of the financial highlights. I will now hand it back to Anand to wrap up the presentation. Thanks, Pradeep. Thank you very much. As I said, moving from the rearview mirror to looking through the windscreen about what is ahead. There's no question that we are back to having to manage the crisis in the short term, both for our employees and the communities that we serve. I just want to say that at the end of the day, if you don't keep your employees safe, then you have no business. At a time like this, you have to go beyond just helping them professionally. You have to help them personally. What we have tried to do is to make sure that we do whatever we can as an organization to keep our employees at the center of the policies that we create. We've created things like giving almost on-the-spot salary advances, supporting and enabling vaccination, COVID care leaves, specifically 14 days COVID care leave for self-independence, ensuring domestic medical expenses go well beyond what's covered through the insurance policies. We will cover any expense that's related to COVID so that employees are covered. Providing employee assistance for their overall wellbeing, not just physical and medical, but mental wellbeing. Free teleconsultations with doctors. Enhanced medical reimbursement, that is necessary. Providing self-isolation rooms in partnership with some hotels. Sadly, this time around, as many people say, last time wave one was about numbers, this time it's about names. Sadly, in the case of a demise, apart from a large payout that will come from insurance, we have committed to adding another year's salary to help people tied in some small way with at least the future of their lives. Equally, for the communities and the society. We have today just announced this morning, a whole new set of efforts and initiatives and investment to support the communities within which we operate. For instance, we are making sure that in at least one district in every state or union territory, we will make an intervention. We are creating 16-bed mini hospitals in 15 most needy districts, and these are mini-bed hospitals that are self-sufficient, but also that can be moved around to other more needy districts, as and when needed. We are investing in this. Providing oxygen plants in no-cost government hospitals in 21 districts. Across 10 states in the country, providing medical equipment, consumables, oxygen supplies, ICU beds, and so on, as requested by state governments to do this. I just want to say this, that Diageo is committing a further INR 45 crores towards this effort to help India at this time of need. Of this INR 45 crores, INR 35 crores or GBP 3.5 million will be funded directly by Diageo PLC, and INR 10 crores will be contributed by USL. Just if you add together what we've done in wave one, our Raising the Bar program and what we're doing now, Diageo in India or Diageo as a group would have committed almost INR 130 crores towards COVID relief. Actually, I must say, I feel very proud that our company is willing to open its purse strings at a time of dire need like this and help those who we depend on in the world outside. That's what we need to do in the short term. As we said, the medium term, this quarter, next quarter, you can see the state of the nation. Successive lockdowns. Nobody's breathing easy. The reality is we are in choppy waters again. We are not immune from these choppy waters. However, therefore there is going to be some short-term impact on the business. That's to be expected. As the lockdowns emerge, as we start sailing in calm waters again, as the sun shines brightly again, as it will, we need to make sure that we're as focused on the long term as a company and as a management team, as we have been on taking care of the short-term crisis that we've been in. Therefore, we are renewing our commitment to the planet with our Society 2030 Spirit of Progress commitment, we are making some significant commitments as part of this. Achieve net zero carbon emissions across India operations by 2025. Achieve net water positive impact in India by 2026, and ensure 100% use of only recycled or composted plastic packaging. This is something that every responsible company needs to do. The long-term opportunity in this industry remains optimistic. I have to say it is very optimistic. Yes, there have been lots of these funnies, as we call them, that have happened from year to year and sometimes quarter to quarter. The fundamental consumer opportunity of 17 million people entering legal drinking age a year, a young population who are open to new things with a median age of 27, low penetration, particularly amongst women, low per capita consumption of alcohol, and particularly spirits. Attitudinal barriers to alcohol breaking down with alcohol being more open and more accepting and more acceptable to people. Finally, consumers looking for better experiences. All this means that the consumer opportunity is intact. After that is the opportunity for long-term premiumization, and you have seen how our strategy of focusing on prestige and above and Scotch has continued to play out in this market. We are playing in line with how consumers are evolving. There's an exploding middle class. There's improving purchasing power. Not only that, people are willing to open their purses and Okay. My apologies, folks. I'm not sure where I left off, but was this slide covered in the presentation? Can somebody just text me and tell me whether this slide was fully covered? Yes, Anand, this was covered. Slide 44 was covered. Okay. Slide 44 was covered. Okay. Folks, I just want to say that the deliver opportunity, the premiumization plan is a collective category to rebound when things improve, the external funding surprise remains enormous. Equally, I just want to say that, not only the external environment, but also our business has never been in better shape. I just want to demonstrate that the external environment remains strong, the long-term prospects remain strong, and our business has never been in better shape. I'm going to use today's opportunity to recap some of the things that we've done over the past 7+ years that I've certainly been around. We have transformed the complex and fragmented USL business that Diageo acquired into not just a business, but I believe an institution, which is built on strong reputation and a cohesive and consistent strategy. Okay. Firstly, we focused on profitable growth pivoted around premiumization and productivity. The growth was focused on Scotch, on P&A, which is now 70% of our business, and renovation and innovation as a cornerstone of our strategy to build those brands. We supported this with productivity and efficiency across every aspect of the business. We demonetized a load of non-core assets. We have halved the number of manufacturing sites, we have halved the headcount, we have moved to a more asset-light franchising model for some of the popular or macroeconomic brands. Of course, we reduced debt very, very significantly. Secondly, we have transformed the reputation, I believe, not of this business, but of this industry. We have shown that business can be done, and we have genuinely changed the way business is done in this country and in this industry through ethics, governance, transparency, across every aspect of our business. We have changed the nature of engagement with state and federal governments and moved from a negotiation to more of a collaboration and have a seat at the table because we can add intellectual heft and experience and help them to craft a win-win strategy. We were seen as a liquor company. I do believe we have moved from a liquor company to a corporate citizen now, and we have transformed the reputation for our corporate brand and our employer brand, which is Diageo. Finally, we have created big shifts in talent and culture, an aspirational culture integrating the best of the erstwhile USL and Diageo. Building an organization that's future-ready in terms of organization design, capability, career development, and being a functional rather than a regional operating model. Importantly, diverse culture. Many of you know that there was not a single woman on the leadership team of this company, right, across the 25 people in the management committee when we started this journey. Today we have a proud representation of very, very confident women, actually leaders in this organization, though I must hasten to add there is a lot of work to be done. Then having progressive policies around matters for paternity leave or charity policies or indeed policies that treat everybody equally irrespective of your sexual orientation or other requirements. Finally, high-quality talent with strong hires from reputed Indian and global companies across diverse sectors. We continue to develop the internal pipeline. Very often in the past, I used to talk of the early years with USL when I used to say we are flying the plane while repairing the engine. Okay. I just want to say this, that I feel that the plane is today robust, and its engines are in good working condition. With what we've managed to do in the industry, I believe we have constructed also a solid runway. This plane that we have built now is taxiing and almost accelerating. I really believe that in the times to come, this plane, combining the potential of this industry and the strength of this business, will absolutely have every potential to take off. With that, I want to thank you for your time, for listening through to this presentation, and we will now open it up to questions. 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 touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use hands-free 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 Abneesh Roy from Edelweiss. Please go ahead. Yeah. Thanks for the opportunity and congrats on the good recovery. My first question is, versus industry, if you could tell us how much faster you have grown because you commented that you have grown faster than the industry. When I see the numbers in the last two quarters in P&A, the sales is almost flat, which is commendable given that top bars are shut and the COVID scenario. On marketing spends, it's at a multi-quarter low. Last quarter also on a year-over-year basis, there was some saving as a percentage of sales. Is there a structural lower cost environment currently, even a lot of event activations are not possible? Yeah. Thanks, Abneesh, for the question. I just want to say this, first of all, I can't tell you precisely, right? You'll have to wait to look at other results and try and triangulate the data. From whatever tracking we do, and unfortunately, I cannot share that more publicly, we believe we have outperformed competition in each of the quarters, right? Despite those quarters having been fairly subdued because of the environment and the way it was. Yes, marketing this quarter is at a low, I'd like you to look at marketing costs on a full year basis, right? We are probably about 90 basis points behind what we were in the previous fiscal. We like to spend money behind news. This quarter, we had set aside money to spend behind some significant activities, which because of the conditions, we couldn't fully execute, right? You will see that spend coming back. I also would like you to think of A&P spend the way we think about it. A&P is just the pure advertising and marketing that you see. We also think of are we investing behind our brands in terms of products and packaging and competitive performance and delivery, right? It doesn't come under the accounting line of A&P, but we treat that as brand investment. All right. Sometimes we add more money from there to here. If we are taking a pricing action in a particular state, right? We treat that when we total it up, we add all those levers together and say, t his is the total amount we are putting behind our brands. In terms of A&P, the way you should think about it is that, I think 8%-9% will be broadly the range that we would spend in a normal year, right? Spend may be tight. Right now, shops are all shut in half the states, so we're not going to be spending A&P money. You should think about on a full year normal basis, 8%-9% is what we spend, which will always mean a strong double-digit spend on our P&A portfolio. Sure. That's useful. My second and last question is on gross margin. Good improvement on a year-over-year basis. Quarter-on-quarter, it's gone down by 70 basis points. Any comment there? On outlook, given inflation everywhere and the fact that the sentiments are weak, could you see some risk because of the down trading also? We're not going to comment on guidance on gross margins, Abneesh. You know that. We've always said guidance is about operating margin. Having said that, don't read too much into quarter to quarter because they're not so funny right now. The fact is that the gross margins are at a reasonable level, and they've been enabled by a relatively benign COGS environment and benefits from our productivity program continuing to be driven really, really hard. Okay? As we look ahead, you've got to expect some inflation is going to come in after a benign year like this. I don't think you're going to see a big hit on COGS in this April to June quarter. I think we know that this quarter is going to be reasonably okay. You've got to believe that some level of inflation will set in. The counterbalance to that is the fact that, with the pandemic again in full fury, there's going to be a big supply-demand on commodities as well, whether it's glass or ENA and so on, right? If the overall demand is down, then the pricing could also soften as a consequence of that. That's the basic situation. I don't think you should read too much into the GM movement. We reiterate our commitment that when times are normal, when the ship is sailing in calm waters, that we will deliver mid- to high-teen margin with a consistent improvement in operating margin. That's all we really can say, Abneesh. Sure, sir. That was very helpful and thanks a lot and all the best. Thank you. Thank you. The next question is from the line of Avi Mehta from Macquarie. Please go ahead. Hi, Anand. Hi, team. Congratulations on exceptionally strong cost control this time, and productivity benefits clearly flowing through. My question was essentially on what you told just now. We have almost, in my view, kind of reached that mid to high teens mark clearly this quarter. Do you think there is more juice still, and that target is still something that high- teens is a much higher number in your view? Could you kind of give us some sense how should we look at margins on a sustainable basis? Yeah. Okay. Listen, there's always more juice in every business, and there are always opportunities, right? Having said that, I think, listen, we need to deliver this performance consistently before we go back and take guard again on scoring the second century. Okay. We need to be out in the woods in terms of the choppy environment we are in. This is not the time for us to be relooking at guidance, and therefore I would really, really resist from doing anything of that kind. I think in the future, once we deliver consistent performance, once the clouds clear, I'm sure there will always be an ambition in every business, including ours, we improve. For the foreseeable future, this is the guidance. I don't think we can add any more value to that guidance today, Avi. I'm sorry. If I hear you correctly, this number is something that you think is sustainable, right? Would it be fair at least in near-term? I understand that now we are in an uncertain world, but at least given whatever visibility you have, except the ad spend, when it moves up logically, the recovery should also be playing out. You think that should balance? Is that what would be the aim of the management? Don’t look at quarter-to-quarter margins, first of all. Okay. Please look at our performance on a full year basis. We don’t run the business on a quarter-to-quarter basis, and I said that before. This quarter we may have done less A&P, previous quarter may have been higher A&P. We’re running the year, and that’s how it’s going to be. Therefore I'm saying you have to look at our guidance as the goal. Okay. That’s our guidance. Don’t start extrapolating. One swallow doesn’t make a summer. Please look at our business more holistically than just one quarter is what I would advise. No, perfect. I hear you. Okay. Full year is what I'll hear. The second question essentially is there's a lot of pain I kind of pick up over here in the smaller players in the industry, especially given the working capital stretch that has happened with tax increases. I wanted to understand, is this an opportunity that is worth looking at or is the profit pool too unattractive given the segments that they cater to? Your thoughts on that. We have already announced our strategic review for parts of our popular portfolio. Okay? I think we are very clear actually, and we have been clear right through this last many years that the future profit pool is moving towards prestige and a bove, and that's where we want to focus and there's a lot to be done there. Across prestige and across Scotch. Okay? It's possible that some of the smaller players may have a hard time, and we still have, I'm saying, a popular portfolio. We still haven't taken a call on what exactly we're doing with it. If there are opportunities to mop up volume because somebody else cannot supply, oh, we absolutely remain committed to the popular portfolio that's there with us. Okay? You know very well that we have regional business for which we look at it more strategically and franchise business which we allow third parties to manage. Absolutely, we will mop up any opportunities that are there. I think the way we have to think about this is, what is our strategy? What do we want to do as a team rather than be, I would say, opportunistic because that might be a short-term opportunity, but if you take your eyes off the big prize, then that’s not going to be wise in terms of how management will spend its time and where management will invest resources, okay. That’s how I would want you to really think about that. Got it. That’s very clear. Just a bookkeeping question for Pradeep. There’s been an increase in the excise duty payable in the balance sheet. Is this a timing thing or is this more structural in nature? That’s the only bit. Thank you. I’ll come back. No, this is timing. This is the fact. Okay, perfect. Thank you very much. Thank you. The next question is from the line of Aditya Soman from Goldman Sachs. Please go ahead. Hi, good afternoon. Just two questions from my end. Can you just throw some more light on the Scotch performance, particularly the BIO Scotch over the past quarter and the full year as well? You’d indicated in the previous call that brands like Red Label did exceptionally well. Any additional color you can give us on that? I can just tell you that Scotch is doing strong double digits. Very strong double digits. It’s the fastest-growing segment within our business, including in this previous quarter that we have seen. Okay? Within that, BIO is growing much faster than BII. BIO is growing faster partly enabled by some stoppage of duty digi sales, as you know. Partly, we have had some regulatory unlocks on pricing in several states actually, where BIO duties and pricing therefore have kind of rationalized. I'd like to believe that our teams have also done some really good job on the ground to exploit that opportunity and drive that opportunity hard. I would say it is the fastest-growing part of our business at this point. Without getting into more details on the specific numbers in detail. Thanks, Anand. Just in follow-up there, you talked about regulatory unlock. Can you just give us an example or throw some more color on what exactly has changed? It’s basically tax rationalization and therefore some pricing correction across 20 states in the country. Okay. If you remember, there was a big drop in prices in Delhi some time ago. Bring it closer into line with Haryana policy. There has been some rationalization in U.P. There has been some rationalization in a few other states. There are some states where we still are trying hard to get it rationalized. Okay. I think one thing that you all may be reading about too, that's connected to this, is what's happening on the U.K.-India free trade agreement. Whether that would lead at some point in time to some significant unlocks on duty rates for imported spirits, particularly Scotch and Scotch whisky. I can tell you there is a lot of dialogue happening, and you read about it in the papers as well, between both sides on seeing what's possible in that area. Thanks, Anand. Secondly, in terms of the strategic review of popular brands, when do you expect that to get completed? I think we had said by the end of this calendar year. I can tell you we are running absolutely on track to make it happen by then. Very clear. Thank you. Thanks, Anand, and all the best. Thank you. Thank you so much. Thank you. The next question is from the line of Percy Panthaki from IIFL. Please go ahead. Hi, good afternoon. My question is for Hina. Since you have spent time in the African geographies, what similarities do you see there with India, which can be sort of read across or kind of applied learnings to the Indian geography? Hina, you want to take that? Or do you want to just hold until your family in the panel? Yeah, actually, I'm not an active part of this panel. I'm only an observer today, so I would prefer to skip it. There are similarities and differences, but let's talk the next time. Okay. No problem. My second question is, with the second wave of COVID, what is the kind of impact you are seeing on the business? I would assume that it is not as bad as the first wave last year around. It can't be worse than the first wave when there was 100% lockdown and there was zero business. It can't be as bad as that, thankfully. Sure. As you see in the previous quarter, January-March was fine by and large. I think as we are now getting into this quarter, we are definitely taking an impact to this quarter. We ended it strong in the previous quarter, so we are seeing a slowdown. I don't want to put a number to it, honestly. The reality is many states are 100% shut. Many states are shut, but thankfully home delivery is happening. Just like Maharashtra and Maharashtra. Okay? Some states are open, but they're opening from 6:00 A.M.- 10:00 A.M. in the morning or 6:00 A.M. - 11:00 A.M. in the morning, which is not normally commensurate with the people going by. Of course, the off-trade or the on-trade is largely shut. I think you have to think about the fact that there are significant barriers to consumption as we speak. The impact in the short run is significant, but no idea what it was when there was a full lockdown. I think the only silver lining in this is that, like I said earlier in the presentation, people are seeing this more as a semi-essential category. Many states have allowed retail to keep open, like 6:00 A.M. - 10:00 A.M. or 6:00 A.M. - 11:00 A.M., or allow home delivery rather than shutting things down fully. I think the states also need the revenues, and they're not seeing any value in keeping alcohol completely shut. While they're keeping grocers and other people open, they're also finding a way to make sure people who want to buy alcohol are able to access it. Anand, in the first wave, the problem was mainly the restrictions on supply. This time around, while of course there are some supply restrictions, are you worried about any demand impact? The caseload is much higher, it's much more widespread across India. Therefore, in this kind of an environment, the recovery from a demand perspective may not be as immediate as, let's say, whenever the supply restrictions end. First and foremost, I must tell you that we've seen many markets around the world, and we've seen many incidents of this kind happen in our industry in the past. The category is resilient, and the category always comes in back without fail. Having said that, there is some short-term dampening of attitude, dampening of spirits of people, and therefore I would think some dampening of demand both hard to read how much of it is because of accessibility and shops being shut and how much of it is because these spirits of people are a little dampened because many more people have got impacted, many more people have got affected by this pandemic. I think you could believe that there is some dampening of spirits and therefore some dampening of demand. There are also supply challenges, by the way, because many factories are getting into lockdown zone. Many factories are able to work with limited people, limited timing, reduced number of shifts. It isn't only demand-led or retail opening-led. There are also cases where we aren't able to supply fully because if you have infected cases, then you have to go through a whole process of cleaning up your plant, and then you may be given permission to only open a shift or two. Look, we are in the situation we are in right now, and I think we'll just have to wait for this to pass. The only thing that I'm going to leave you with is, I really do believe this industry is like an elastic band. Its ability to recover is huge, and I think we should just remember that as we think about the business. Right, sir. That's all from me. Thanks and all the best. Thank you. Thank you. The next question is from the line of Ashit Desai from Emkay Global Financial Services. Please go ahead. Yeah. Thanks for taking my question. My question is on other overheads. If you look at the other overheads for this quarter or year, they've been largely flattish versus last year. In a year which has seen a revenue decline in double digits, and also when we compare this to the other consumer peers, we've seen a good amount of savings over here. If you could highlight, what has driven this, why savings have been low a year, and are there any one-offs that we should be aware of? Pradeep, you want to take that? Anand will take that. Ashit, in the India accounting, as we have explained earlier also, the entire sizable component of the Andhra Pradesh unwinding costs sits in the other overheads line. If I kind of make it like for like, we continue with our run rate of about 5%-6% efficiency on a year-on-year basis on the overheads line. That's broadly the run rate that we have established. In fact, in 2021, because of the COVID-led restrictions, because travel, et cetera, was restricted, we would have delivered slightly higher than that. That's what the noise is on account of. The Andhra Pradesh unwinding costs have gone in two sections. One is above the gross margin line, to the extent of the franchise business that we had to surrender, all the unwinding costs sit in the other overheads. Pradeep, can you quantify how much are these unwinding costs? We normally don't share that. Throughout the year? Yeah. We normally don't share that, Ashit, but do get in touch with Richa after the call. She will be able to help you out. Okay. If I may take one more question. I had a question on working capital. Yeah. Broadly, if you look at the improvement in working capital, this has been driven by increase in payables and other current liabilities versus receivables and inventory largely remaining similar. Firstly, are these sustainable? Secondly, do you see any room for improvement in reducing inventory and receivable days also going ahead? Firstly, let me take that. Comparing the absolutes may not be the right bench. The scale of the business has come down versus last financial year. What I would want to share is that if you look at the last three to four-year progression, our working capital has always run, net working capital, has run at about, I would say, around 30% of our net sales value, and we have ended 2021 in the range of about 26% of net sales value. Obviously the India accounting kind of determines a lot of things, et cetera. On an underlying basis, we have improved our working capital across accounts receivable, inventory marginally, and across accounts payable. Roughly you will see a 3%-4% improvement. Like I said in my presentation, the improvement, part of it is driven by the fact that all the corporations have behaved. All the corporations are paying us on time. Therefore it becomes a slightly high base to lap. As Anand has mentioned and we have maintained that we continue to extract efficiencies across the value chain. It's an ongoing journey, and we will task ourselves to continue to extract working capital efficiencies year- on- year. Okay. Thanks, Anand. Thank you. Next question is from the line of Harit from Investec. Please go ahead. Yeah. Good afternoon. I just have three questions. Firstly, on BII. I know it's been one year since you've relaunched the No.1 and Royal Challenge. I understand it is a bit truncated because of COVID, but if you could give us a sense of, as per your action standard, how both these brands have kind of performed in their relaunch now over the last one year? I think please restrict to two questions, otherwise the others are going to be very unhappy with us. As far as the renovations are concerned, I would say the following. No.1 has been extended almost everywhere in the country and has done exceptionally well in most parts of the country. We are very delighted with that. As far as RC is concerned, the rollouts have been more limited. We have not managed to get to every place that we wanted to get to, and there have been some other moving parts. I'll say this, that in some states, RC has met action standard and done well, and in many states where there have been other things that have happened, like pricing movements and so on, the performance has been below what we would have ideally liked. It's a very unstable sign, and we still believe that it has potential to deliver. Right now it's still a bit mixed. Okay. Just a follow-up to that regarding RC. While the McDowell's have done well, regarding RC, are you relooking at it or you're just waiting till the environment kind of settles down till you get a little more in terms of demand-led data on how things are panning out? No, listen, we are constantly evaluating how brands perform, right. I think the teams will then come back with whether we need to change something or just wait for market to smoothen out and invest more and do whatever is necessary. I can't tell you more than that, but just recognize that we have our finger on the pulse, and if something needs to be done differently, it'll be done. If we need to persist with what we have, then we will do that. That's getting too much into the future. I'm just telling you clients how things are. Okay. The second question was on giving us a data point on franchise income. If you could just help us understand what has been the dip in franchise income for this year? You had mentioned in the beginning of the year that there'll be a significant reduction. If you could just help us understand what range has it been at for a full year? Yeah. Pradeep? Yeah. Look, we haven't shared the exact franchise number, but what I do want to share is, and I think we took this question two quarters ago, we have a master franchisee in the south part of the country. It is not just one geography. The franchisee operates across four or five states. Andhra was a big component of that master franchisee. Therefore, with Andhra going away, that has not just impacted the Andhra business, but the franchisee's ability to perform sustainably in the overall south geography. We have taken a bit of a hit. We've never shared historically the exact number, so I don't want to divulge more details on that one. It's been a sizable number. That's all the right. Sure. Okay. Ex-Andhra or probably ex-South, would you have seen a more or less? Yeah. Barring for the April-June lockdown period, I think our franchise income is absolutely stable ex-South. Okay. That's it from me. Thanks a lot. Thanks. Thank you. Thank you. The next question is from the line of Tejas Shah from Spark Capital. Please go ahead. Good afternoon. Thanks for the opportunity. My first question pertains to Andhra scenario. In past, you have spoken about couple of states like Chhattisgarh, Uttarakhand, where our sales had gone to almost zero and then things normalized pretty soon. In AP, we seem to be winding down for good, it seems like as of now. I just wanted your perspective on the same. You see, I have said this before, right? In this industry, what I have learned is that one door shuts, but another door is open, right? This is a constant game that happens, right? Gujarat fully shut, right, in the middle of everything. Uttarakhand, our sales had come down to zero. Chhattisgarh, to your point, right, our sales had collapsed. Uttarakhand has fully recovered and doing really well, and we are performing very well in that state and so is Chhattisgarh. AP, all I can tell you is that our current business is pretty much not there. We are engaging with the state government- Yeah. -repeatedly. Mr. Kripalu? Yeah. Sir, sorry to interrupt, but your voice is not clearly audible, sir. What do you do with these mobile phone connections nowadays, huh? That's why one uses Wi-Fi now. Is this any better? This is better, sir. Yeah. Thank you. Okay. All right. We are continuing our engagement with the AP government and talking to them, and we are also thinking about what are the other unlocks that we could get, right? Which include using other routes that are available to us as per the laws of the land. Right? Not just true for me, by the way, it's true for largely like-minded industry that wants to do business the right way. Okay? There's nothing more to say on this, right? Right now, the only silver lining is now AP has come off the base for us. Okay? Therefore, we'll see real performance on that base without AP. It's not as if we are right. We are doing what we can. Right now, options are limited. They just are. Sure. I just want to follow up on that. Is it the same for other peers, key peers as well, or is it our call as of now and others are continuing? Largely true, give or take a bit for the multinational peers, right? Some people are doing a little bit more business than others. Right? We're doing almost nothing. Right? I think we are more governed by whatever we do, we do it right. Okay? That's it. I would say by and large, for most of the international players, AP has become no business at all. I think that's true even in the beer business, by the way. Anyway. Sure. Second question is on ethanol blending policy. Now it's been in place for one or two quarters now. Any visible impact of the same on the ENA pricing? I will just say this and then if Pradeep wants to add, he can do that. I will tell you, the ethanol blending policy is something that I have also learned, don't predict because you just don't know when a new policy comes with a new plan. Okay. All I can tell you right now is that if that comes, and then there will be a correction upwards or downwards depending on the policy of the ENA pricing. We have seen that happen in history, and that's how ENA pricing went up significantly because of the push towards ethanol blending. Is this possible, I think with oil prices going north and foreign and fuel prices hitting what they are in India, it's always possible that the government will relook at the ethanol blending policy. Just two things from our side I will say is this. One is that the immediate future seems okay and some inflation may come, but that's regular inflation and we can't build our plans based on a discontinuity on the ethanol blending policy. The second thing is that we are progressively increasing our in-house distillation to make ENA, so that we can securitize ourselves better in the times to come on this particular raw material. That's the only way of hedging against some of these policies in the longer term. Great. That's all from my side, sir. Thanks and all the best. Thank you. Thank you. Thank you. The next question is from the line of Alok from Ambit Capital. Please go ahead. Hello, folks. Thank you for giving me an opportunity and congrats on the set of cost-saving mechanism. Might two questions. First question is on the realization. Is it possible to elaborate further on what led to this strong realization increment in P&A? Is it more to do with the duty-free versus duty paid stock that consumers have bought or any price hikes or state mix that you can call out? Secondly, within the states where home delivery has been allowed, can you share how are the numbers stacking up, how is the growth, et cetera? Thank you. Home delivery, listen, it's happening today in six or seven states. Today, all the sales in Maharashtra are home delivery. West Bengal is doing reasonably well. In other states, it's kind of small and a bit of a trickle. We know that some of these things just take time for them to evolve and hoping that home delivery is here to stay, and more and more states will open this up. We are continuing to talk to states. They have a resistance because of concerns from the retailers particularly, and the retailers are worried about the home delivery or more importantly, e-com business stealing some of their business, and that's the tightrope we are walking. Your first question was not clear. Was it about P&A or BIO or what was it? Or Scotch? I'm not sure what the question was. Sure. I'll just repeat it. It was more to do with the realization growth that we are seeing in the P&A portfolio. I wanted to check whether it is more a function of some technique changes, some price hikes, or you think it's more of previously duty free paid stock being bought by the consumer, which is now that demand is moving to duty paid. Yeah. The P&A realization for case is what you're asking for. Yes. Yeah. It's really all of the above. All the reasons we have said have contributed to this. First of all, there's a premiumization of the portfolio, Scotch has grown much faster, as we have said. There is some pricing pieces that we've got. Contrary to our thinking, as we were entering the pandemic, we thought we're not going to get any pricing, we have, well, I would say been pleasantly surprised that we have managed to get some pricing. There are a few more difficult states that we're still trying to attract. State mix I cannot confirm for you because I haven't looked at that data closely enough. Certainly, brand portfolio premiumization and pricing are key contributors to that. Yeah, sorry. Yeah. Basically that. Yeah. No, that is good. No, that's all. That's all from me. Pradeep, anything to add on that? No, Anand, I think you've covered it. I think the premiumization is working at two legs. Within the overall portfolio, the P&A salience is going up and within the P&A salience, the Scotch portfolio going up. It's literally two levers of premiumization within the overall portfolio. Yeah. Got it. Thank you lot for the answer. Thank you very much. Okay, thank you. Thank you. The next question is from the line of Arnab Mitra from Credit Suisse. Please go ahead. Yeah. Hi. Thanks for taking my question. First question was, we've just kind of entered into the excise cycle for FY 2022, so any kind of really positive outcomes in terms of pricing or taxation for any of the major states or any states where you have a worry other than West Bengal where I think there are challenges, but from an FY 2022 perspective, how is that looking from a tax and price point of view? I would say we have not had any significant adverse taxes. There have been small movements here and there, but nothing significant to be a disruption. Okay. I think that's the first thing which is good news. Pricing, like I said, there have been some forfeitures on pricing and I think more than a dozen states we have received some level of pricing or the other. Not just talking about the FY cycle, but in the run-up to the FY cycle as well, including some pricing pieces that the market has taken in the state of Maharashtra. Okay. I would think that that's all good news. Yes, West Bengal, like you said, we still have to fix the policy itself and we still have Karnataka where we have not been able to crack pricing, which is in a very important state for us. We are at it. We still believe there's a possibility of getting it before July 1st. On pricing with the state government, you never know for sure. Sure, Anand. Just last question from me. If I look at your 4Q revenue numbers, it's about 3%, 4% higher than what you had done in the second quarter. Why I'm taking second quarter is that I know third quarter is a seasonally strong quarter, not a right comparator. With all the reopening happening, is it that as the on-premise reopening happens, there is a compression in the retail sales, or is it more of a West Bengal effect, which is playing out in 4Q, which was possibly not the case in 2Q? If you could just help us understand that sequential movement in the revenues as the reopening happened. It's very hard to read this, because even though the on-trade was open, it was open with very low footfalls. Okay. We know that when the on-trade has been completely shut also, the off-trade has been pretty robust. Right? Pretty strong. Honestly, it's not easy for me to respond to your question. Yeah. Maybe I can just give a headline response, Anand. Sure. Q2 and Q4, the two lap-up issues are very, very different in scale, right? The West Bengal policy came sometime around October, post Pujo, I think. That impact is very high in Q4. Right? Similarly, I think the scale of the impact of Andhra Pradesh has diminished as we have progressed over the quarters. Okay, thanks. Thanks for the insight. Great. Thanks. Okay, thanks a lot. All the best, Anand. Thank you so much. Steven, I think we are out of time. I request you to close the call. Sure, sir. Over to you for any closing comments. No, I just want to thank everybody for their continued interest in the company, for their incisive questions as always. I look forward to continuing to engage with you at least till the time that I'm here, which is the next five weeks or so. Till then, stay safe, everybody, and thank you for dialing in. Thank you. Ladies and gentlemen, on behalf of United Spirits Limited, that concludes this conference. We thank you all for joining us, and you may now disconnect your lines.