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Ladies and gentlemen, good day, and welcome to Prataap Snacks Limited Q4 FY '23 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded.I now hand the conference over to Mr. Mit Shah from CDR India. Thank you, and over to you, sir.
Thank you, Lizanne. Good afternoon, everyone. Welcome to Prataap Snacks Limited's Q4 and FY '23 Earnings Conference Call. Today we have with us Mr. Amit Kumat, Managing Director and CEO; and Mr. Sumit Sharma, CFO, from the management team.Before we begin, I'd like to point out that certain statements made in this call may be forward-looking in nature and a disclaimer to this respect has been included in the earnings presentation shared with you earlier.I'd like to hand over the call to Mr. Amit Kumat, for his opening remarks. Thank you, and over to you, sir.
Thank you. Good afternoon to all the participants, and thanks for joining our Q4 and FY '23 earnings conference call. I trust all of you have reviewed our earnings document, which was shared with you earlier.I'm delighted to share that we have delivered a strong sales growth of 19% during the financial year ended March 31, '23. Post the COVID disruption, this is the second consecutive year of strong growth with sales growth of 19% in the previous financial year. Our sales of INR 16.42 billion in '23 represents the highest ever sales reported in the company's history.One of the key contributors to this growth was the expansion in the average distribution reach by nearly 1.6 lakh outlets over the last financial year to 21.8 lakh outlets across the country. This was supported by the initiatives like direct distribution and range selling resulting in increased volumes.Another development that I wish to -- another development that I wish to highlight is the completion of the merger of Avadh Snacks. Following our purchase of around 90% holding of Avadh, we sought to acquire the remaining around 10% by way of a share [indiscernible] as we felt that a complete integration of both companies would enable us to unlock further synergies while contributing to streamlining and more efficient operations by reducing the reporting requirements. Building upon these initiatives, we are well positioned to maintain this positive momentum in sales growth in the quarters ahead.While we started the financial year strongly, we witnessed softening in consumer demand and flattish rural activities in Q4, which impacted the revenue growth. Despite reporting growth of 19% year-on-year sales for the full year, we have fallen short of the threshold revenue required to qualify for the production linked incentive this year. Hence the PLI recognized on accrual basis in Q1 to Q3 this year has been reversed in Q4, impacting the total income from operations and the reported EBITDA in the fourth quarter.The silver lining in our performance is that we have witnessed a sharp rise in EBITDA adjusted for the PLI reversal, which stood at INR 30.2 crores in Q4 '23, which was higher by 511% Y-on-Y. The adjusted EBITDA margin has improved by 620 basis points on a year-on-year basis from 1.4% in Q4 '22 to 7.6% in Q4 '23. This margin performance is the highest in the last 12 quarters. This improvement has been driven by our compressed distribution structure, cost optimization measures, and cooling of input prices, setting the tone for an improved margin performance in the next financial year.In this regard, I would like to bring your attention to Slide 20, which gives a more granular view on the margin performance. The company has shown its resilience by maintaining and delivering a strong margin profile despite the inflationary trend in the prices of key raw materials. In that backdrop, let me now quickly take you through our financial performance during the period under review. In Q4 '23, income from operations was INR 398 crores, registering growth of 11% year-on-year with it. Adjusted operating EBITDA stood at INR 342 crores, translating to a margin of 7.6%. The reported PAT of INR 21.6 crores in the fourth quarter. This was aided by the tax reversal of INR 19.4 crores on account of completion of the merger with Avadh.In FY '23, income from operations stood at INR [ 1,641.7 ] crores, registering growth of 19% year-on-year. Operating EBITDA was INR 62.4 crores, translating to a margin of 3.8%. We reported full year PAT of INR 20.3 crores, again, aided by the tax reversal due to our merger. The Board of Directors have recommended a dividend of 20% equity to [indiscernible] share, face value of INR 5 per share.A quick word on our improving balance sheet. You would have noticed a reduction in borrowings from INR 30 crores as of March '22 to INR 3 crores as of March '23. This has been achieved despite the CapEx undertaken across our facilities this year. We continue to ensure a debt-free status on net basis, and our balance sheet is strong to support our growth plans over the next couple of years. We have managed to drive further efficiencies in average working capital from a level of 23 days in '22 to 13 days in '23. Sumit, our CFO, is alongside me on this call for any further questions on our financials.To summarize, we are optimistic of delivering a strong revenue growth and profitability on the back of continued emphasis on distribution expansion and range selling activities. We expect that consumer demand will be supported by increasing economic activities, coupled with cooling off in inflationary trends.On that note, I conclude my remarks and we can open the floor for discussions.
[Operator Instructions] We take the first question from the line of Nilesh Shah from Envision Capital.
My question is that we're targeting a 10% EBITDA margin over the long term. I have just 2 questions on this. How far do we think we are from this goal or this milestone? And second is, is this EBITDA margin more than 10% that we are targeting? Does that include the PLI incentives in future or not?
Yes. Good afternoon. This is Sumit. We are on the path of -- we are on the path of this double-digit EBITDA margin and -- which is already reflected in our Q4 margin where we have delivered 7.6%, even tended over the period increasing our distribution network, and that has really helped us to improve the EBITDA margin. Our target is to be very close to double-digit EBITDA margin by end of this financial year on a run rate basis. That is excluding PLI. So we should be able to reach to somewhere around 9% EBITDA margin on a run rate basis by end of this financial year. That is what we are targeting for.
So target by the coming year-end is to exit at 9%. Have I understood that correctly? Or it's going to be 9% for this full year?
For the quarter for the quarter.
For the quarter. Q4 FY '24 will -- we should look forward to something like 9% EBITDA margin.
Right, right, right. That is what we are targeting for. Because we have already invested in our distribution, EBITDA, increase in salary cost that is primarily on account of increasing headcount in the sales force. So whatever investment is required, we already invested. Now we should get the operating leverage once we get the increase in revenue, we'll be getting the benefit of operating leverage as well.
The second is regarding the accounting policy for this PLI incentives. I mean, how appropriate was it for us to basically start accounting for it at the start of the year and not wait to cross the threshold?
This accounting standard, it is allowing you to recognize the incentives on an accrual basis. And we feel that's more prudent to accrue on a quarterly basis rather than accruing at the year-end because in the event you get spike in one particular quarter. And that's why we took the call to recognize the revenue with respect to the PLI on a quarterly basis.
And how would we be doing now going forward? Would we kind of wait for the milestone or the threshold to cross? How would it work going forward?
Since there was a reversal in quarter 4, and we could not meet the sales threshold. We might be slightly conservative with respect to the PLI accounting for the coming -- for the current year, for FY '24.
So would we, even we say conservative, would we wait for us to hit the target and then account for it?
Yes, yes, absolutely.
My second question is essentially on the business outlook, and we're targeting a 15% plus growth rate. How is the demand situation right now on the ground? Do we feel that the inflationary pressures that we saw in the last financial year and its impact on discretionary income and therefore on spending on a category to like ours, do those pressures still persist or those pressures have abated? And I'm also saying this in context of how have we seen competitive intensity? Is that also playing a role in terms of our revenues? So, yes.
If you see our last year performance, the actual grow basically was growth of close to 27%, dropped down to 11% in H2, the demand was definitely reducing across the country, across the categories, which is very evident from Nielsen data also. The accrual basically [indiscernible] but I think that things have started picking up. And this year, market should be much better because the inflationary pressures have come down considerably. If you see all the prices across all the categories from laminate packages to edible oil, everything has gone down, except 1 or 2 items like wheat probably which have gone up and down in the recent few months. I think the demand should be better this year, much better than H2 of last year.
[Operator Instructions] We'll move on to the next question that is from the line of Dhwanil Desai from Turtle Capital.
Sir, my first question is that in the earlier interactions, we have indicated that as we improve our margins beyond [indiscernible] start plowing it back on the [ A&P ] side because we are underinvested on that. So when we are guiding for this 9% margin, will it be sustained or then once we reach that threshold, we'll start plowing back in A&P for growing and then margins will stabilize at a lower level?
I think if we can get sustainable 8% to 9% margin for 2 quarters, we definitely look forward to invest in A&P. But we are looking for at least 2, 3 quarters to get anywhere between 8% to 9% margins. [indiscernible] and I think that can continue post that.
So anything above 8% to 9% will get invested in A&P, right? That's what I understand.
At least for the shorter run. Longer run, probably we have to target double-digit EBITDA and then invest in advertisement. But in the short term, we haven't done a lot of advertisement in the last few years. First, there was COVID period and then probably we couldn't do anything. And the margins were back for the last 3 years, since they have started improving. If we get to 8% to 9% margin, which should definitely go on advertisement. But consistent advertisement can only come once we cross double digit EBITDA margin.
And sir, if you can give us some sense as to category wise, which categories are growing faster, which categories have performed below par? And also, we talked about in our presentation, discontinuation and cooling of the product portfolio. So if you can talk a bit more about that, that would be helpful.
Since last year, if you see the 19% growth, most of the categories have done well for us. But one category which has done exceptionally well is the pellets, the fryum business, which has probably all grown by a big number compared to all other different -- all other categories. So the fryum fall in this exclusion category, where we are leader in one of the categories. But overall growth has come from pellets category most last year. As far as pruning of exclusive [indiscernible] we thought that we have done too many launches in the past 1 to 2 years, and there was a big confusion in the distribution market and the marketing people and the sales guy. So we thought it is better to concentrate on a few items which are doing well rather than keep offering everything to the retailer. There is a limit on which you can supply to retail a number of [indiscernible] supply to the retailers. So it's better to keep basically [indiscernible] which can move faster from the retailer shelf.
And just a follow-up on that. So I think we were -- during COVID times, we were facing challenges on the Rings side. So have we come out of it and if that segment, again, started to grow, that was one of the major segments for us.
Members of the management team, we're unable to hear you. Ladies and gentlemen, we seem to have lost the audio from the management side. Please stay connected while we try to regain the audio. Hello.
Hello. Sorry, there was some technical glitch in our end. Sorry, there was some technical glitch in our end. We just got disconnected.
Sir, you are reconnected to the call.
Sir, my question was about -- did I -- did you get the question or should I repeat that?
No, no. We got your question. You were asking the Rings category was down during the COVID period, that has improved or not. I think that has started improving slightly. It was basically [Technical Difficulty] during the COVID time. It has started improving. And we further improve going there.
And sir, the last question is on the Avadh side. So things now will be merging, you won't be providing separate numbers on that, right? But at least for this year, if you can give us some sense how that business has been going? You had initiated some changes in organization, and we were expecting that that business will grow at a decent pace. So if you can throw some light on that.
Yes. Avadh has grown in line with the [Technical Difficulty].
Sorry to interrupt. Hello. Sir, your audience is breaking up. We are not able to hear you clearly.
Okay. Sorry. How is it now?
Sir, slightly better. Sir, please proceed. Hello. Ladies and gentlemen, we have lost the audio from the management side. Please stay connected while we try to regain the audio.
So Avadh, I was talking about in terms of bottom line, Avadh has delivered better margins than Prataap for H2, for quarter 3 and quarter 4, consistently Avadh has delivered double-digit EBITDA margins. The topline growth was in line with Prataap's standalone topline growth.
[Operator Instructions] The next question is from [ Shrinjana ] from RatnaTraya Capital.
So my question is regarding the margins, firstly. So in this quarter, our margins have improved. And as you mentioned, partly -- part of the margin improvement has come because of the distributor, like since we have removed the [ super stockists ]. So how -- what I wanted to understand is how much percentage of the margin improvement is because of the -- due to the channel effect and how much is because of the raw material price correction. So if you can just help us on that.
Hello, Shrinjana. Shrinjana, actually we started compressing our distribution network somewhere in FY '22, and we completed that process by end of '22. So most of the benefit has started going from FY '22. The overall savings what we got out of the compression of distribution network is roughly around 3.25%. And for FY '23 specifically, that would be roughly around 1.6% to 1.7%.
And this is just in gross margin or including the EBITDA margin? Because I think as I remember in earlier con calls, you also mentioned in terms of today's cost also, we got some benefit because of this super stockist. So the freight costs also reduced. So this -- what you're mentioning, that is this gross margin or an EBITDA level as a whole you're seeing?
So the entire saving has been rooted through the gross margin because the reduction in general margin has helped us to improve our freight realization. So that has improved gross margin as well as extra margin.
And sir, in terms of growth, like this quarter, we did see like a little -- on the growth front, it was a bit weaker, right? So what would be the reason for that? And if you could help us understand a little bit in terms of category, which category is doing well and which category are you seeing some weakness and where we can improve? That could be helpful.
As Amit-ji has shared in the earlier answer, there was some softness in the market, what we [indiscernible] especially in the rural economy. And that was the primary reason for slowing down the growth for us. We think it has started picking up from May. And in terms of product category, most of the product categories have grown in high teens and pellet particularly, the growth rate was significantly higher.
And sir, just one more question, like for our Avadh subsidiary, what was the sales number for Avadh for the full year FY '23? What did we close at, Avadh?
Yes. Avadh revenue number was roughly around INR 215-odd crores.
And in terms of EBITDA for Avadh, are we seeing any improvement? Because like last 2 quarters, at least, there was slight margin improvement even in that segment, right? So is that also -- because of that also the margins have improved. Is that segment is also contributing?
Yes, yes, certainly, certainly. Avadh -- margin for Avadh has improved significantly. As I mentioned earlier, EBITDA margin for Avadh for H2 was in double digits, even higher than Prataap standalone.
And this is at EBITDA level, you are seeing double-digit EBITDA margin?
Yes, this is at EBITDA.
The next question is from the line of Bhavesh Chauhan from IDBI Capital.
Sir, I would like to know what would be the margin lever that will take us from 7.6% to 10%, if you can explain a bit?
Sure. So there are 2, 3 major items. First of all, we'll be getting the advantage of operating leverage, especially with respect to the salary cost because last year we invested heavily in building the sales force, especially in our focus market. So we appointed [indiscernible] and the sales officer in the focus market. Going forward, the salary cost is going to remain constant and we'll get the operating leverage on account of increasing sales. We're also driving the cost optimization program, but we didn't pass. We are focusing on some cost reduction planning, cost reduction programs, especially for the factory overhead. We're trying to [Technical Difficulty]
Ladies and gentlemen, the lines of the management has got disconnected. Please stay connected while the management reconnects. Ladies and gentlemen, the lines of the management have got disconnected. Please stay connected while we reconnect the management.Ladies and gentlemen, thank you for patiently holding. We have the lines of the management reconnected. Over to you, sir.
Sincerely apologize for the inconvenience. We are getting some technical issues in our [indiscernible].
Sir, you may please proceed. Mr. Bhavesh Chauhan, will you repeat your question for the benefit of the management?
Yes. My question is just on how we -- the path towards the 10% operating margin.
Yes. So I was highlighting that we'll be getting the operating leverage maybe especially with respect to the salary line item. We're also driving some cost optimization program, especially at our factory level where we are automating some of the processes to reduce the recurring cost and operating costs. So these things will help us to improve the bottom line by reducing the cost as well as getting the operating leverage.
Sir, at the same time, if there is a spike in crude oil or palm oil, that should be considered a risk to our margins, right?
I think we've done sufficient changes to absorb any excess increase in pricing of raw material, like edible oil [indiscernible] crude oil. But definitely, there will be some impact. But with all these changes, what we have done in all the changes what we are -- I think we should be able to absorb it to the most possible extend.
I would like to refer here our presentation, especially the Slide #20, where we have highlighted what was the average EBITDA margin in FY '16 to FY '20 and the oil price was pretty low. Now if I compare that period versus quarter 4, there's a significant spike in the price of palm oil, which is around 60% and also spike in some of other raw material and is also increasing the overhead. In spite of these things, we were be able to enhance our margin. And that is primarily because of what changes we have over the period. So that gives us confidence that we can manage this kind of price fluctuation and maintain the bottom line.
And sir, what is the contribution of INR 5 pack currently?
That is currently 80%.
Sorry, 80%?
90% is [indiscernible].
85%. And we had an earlier plan to bring that down significantly. So that will also play out in margin. So any particular target that we could have for FY '24?
I think we plan to bring down to 70% probably the next 2 to 3 years.
The next question is from the line of Ankit Gupta from Bamboo Capital.
Sir, my first question was on top line growth. We are hearing that some of our larger peers have grown at a higher rate compared to us during the FY '23 despite having almost 2x, 2.5x our revenue base. So like -- and even FY '22, even in FY '22, Q1 had a low base because of the second wave of COVID. So anything you would like to comment on that?
I think we grew substantially well in the first half of the last year. That was close to 27%. Second half was not that good. So as you see it [Technical Difficulty] mention about one of the players. But probably -- we have probably in the growth was [indiscernible] 1 or 2 companies in the country. There are only 2 companies who have gained market share last year, out of which we were one of them.
And which was the other one, [ Balaji ]?
You mentioned the name [indiscernible].
So what you're saying is the other companies have grown at a lower pace compared to us apart from the one more company?
Apart from one -- yes [Technical Difficulty]
Members of the management team, we are unable to hear you clearly. Ladies and gentlemen, the lines of the management has got disconnected. Please stay connected while we reconnect the management.Mr. Sharma, you are reconnected. Please, proceed. Hello.
Hello. Yes. Sorry, I apologize. We are getting some technical issues on account of bad weather here. Some issue with the lead lines. Really sorry for this inconvenience.
No issues. You were saying, sir, on -- apart from one more player and us, we have grown -- the rest of the players in the industry have grown at a slower pace compared to us?
I think that is definitely what we understand from the recent data what we have prepared.
Sir, second question was on the EBITDA margin of Avadh. So what is happening there? There has been a substantial turnaround in Avadh's performance because last -- as per our understanding, in FY '21 and FY '22, Avadh reported around 2%, 2.5% kind of margins. And as Sumit was saying, in Q4, we have taken almost double-digit margins. So what is happening on Avadh and why it has turned around?
Yes. We did certain cost optimization program at Avadh as well, what we did in Prataap. So we got certain savings on a few cost line items. In addition to that, there was also some grammage rationalization in case of Avadh.
Sir, but grammage regionalization, we have also done in Prataap, if I'm not wrong.
Yes. But competition dynamics are different. Markets are different. Offerings are different, so.
And is it that the freight cost has become a big thing for pan-India players like us compared to regional players like Avadh?
Yes. Absolutely. Definitely, there is a delta in freight cost for a regional player vis-a-vis a national player.
[Operator Instructions] The next question is from the line of Shirish Pardeshi from Centrum Broking.
Hello, Sumit and Amit. I was more curious, if I look back last 5 to 6 quarters, I think cost is one of the big issues, which we have been facing. And if I remember, we were trying to push full truckload to the distributors. So can you quantify how much is now that project has been successful? And maybe if you can say that full truckload, what is the contribution of sales?
Actually more than 90% sales are going directly to distributor and the full truckload is going to them. More than 90% has been already done.
The second point, what I wanted to check, though we have done a distribution, but when we look at the ground channel, the wholesale is still a dominant part of our sales. So would you say that during COVID period, what was the sales of wholesale contribution to the overall sales and now where it is settled?
Actually we don't see any significant movement from COVID period to this period. [indiscernible] retail sales and wholesale sales. As per our estimate, our more than 50% of sales come from the direct distribution to the retail outlet and almost 45% plus based upon the wholesale market. So the COVID [indiscernible] 2%, 3% difference, not more than that.
The other question I was asking, I mean, generally, to my understanding, the Namkeen guys has delivered a best growth in the current circumstances. And I think, if I'm not mistaken, to my understanding, industry is about 45% -- between 45% and 50%, while our portfolio in Namkeen is a little lower or significantly lower. What are the attempts or what are the new launches? Or is there any thought that we have some right to win in Namkeen?
Namkeen overall category is close to 50%. And in the last few years, if you see, in the COVID era, the impulse purchase category was down and the Namkeen category was doing better, which we can definitely [indiscernible] last 2, 3 years. Our Namkeen percentage sales probably overall in Yellow Diamond will be less than 12%, 13%, compared to 50% overall industry average and 60%, 70% of the major Indian players in this category. We are trying to increase Namkeen sales. We have added a few products, which [indiscernible] put out some sales. And I think this percentage should improve considerably probably in the next 1 year time.
I just wanted to check, Amit, why are we hesitant because Namkeen will definitely have a better margin profile, and there is a trading up opportunity also?
No, we are not hesitant. We are trying to do too many things in Namkeen. We've launched a few products. We have put new plants to get few products which we were not manufacturing earlier. I think we are betting big on Namkeen for the coming year. It takes time. We have started focusing on Namkeen probably last 6 to 8 months' time only, machines we have already installed and some machines we have ordered. I think we should be significantly different percentages in Namkeen probably a year from now.
My last question on PLI. What is the quantum or the money which we have received in FY '23? And what is the expectation? I think Sumit gave some angle that how the accounting will happen. But in terms of your assessment, what will be the quantum of TLI which will come?
So we haven't gained anything of PLI because in the last year because we didn't achieve the sales. This year, if we can achieve the minimum target, which means around 15% growth for this year, we should get minimum [indiscernible] of around INR 26 crores to INR 27 crores.
INR 27 crores?
Yes, this year.
[Operator Instructions] The next question is from the line of Shrinjana from RatnaTraya Capital.
Yes. Just a follow-up, sir, on the -- what we discussed about the PLI scheme for next year, if you're saying that if we need 14% growth for the PLI incentives, right? But like as per the presentation, it says that potato chips will be excluded, right? So 14% growth, would that translate into like a 10% CAGR from the FY '20 base? Like what share are we assuming for the potato chips in FY '24?
Yes, Shrinjana, we are assuming the similar sort of product mix and with similar sort of product mix, if we grow by around, say, 14% or 14.5%, we should be able to hit the minimum threshold required for the PLI.
That is 10% CAGR, right, from FY '20?
That is 10% CAGR over the base year and the base year was FY '20.
Like I was just asking what was the share of potato chips in the base here because actually I was trying to work out the math, and it was not tying back to the numbers. So that's why I just wanted clarification. What was the potato chips share in FY '20, the base year?
That was roughly around 23%, 24%-odd.
We'll move on to the next question, that is from the line of Bhaskar Chaudhry from Entrust.
Sir, my first question, you mentioned that you are trying to increase growth on the Namkeen side. Just to understand how -- what's the financial profile of that business? Is it very different from the chips, et cetera, business in terms of margins or in terms of working capital base, et cetera? Or is it broadly similar?
It's very similar, very, very similar.
The second question was, if I heard correctly, you said that once you hit a sustainable 8% to 9% EBITDA margin for a few quarters, you look to reinvest in A&P. So is there like a target A&P cost percentage of sales that you're looking for over the next 4 quarters or 6 quarters?
I think if you see these 2 kinds of advertisement, first is advertisement related to the [indiscernible] what we offer in the Ring category, which we have been consistently doing for so many years. Other than that, if we have to do any brand building exercise, minimum quantum required to do would be close to INR 25 crores for a year. It would be a [indiscernible] probably. So in percentage terms, that would be hardly 1%, 1.5% on the year [indiscernible].
And just for my last question. Can you give us a sense of where you are in terms of capacity or capacity utilization? Any significant capacity addition plan that you have for the next couple of years?
The current utilization level for the overall capacity would be roughly in the range of 55% to 60%. I think we can optimally utilize 80%, 85% on an overall [ budget ]. So there is headroom available or surplus capacity available in terms of production capacity. We are anyway investing under the PLI. We are putting up a new plant in Jammu and that will also add the overall capacity. So in the next 2 years, the overall CapEx, we expect, should be in the range of INR 100 crores to INR 105 crores, including the investment, which is required to be made under the PLI.
And I'm a little new to the company, so the question might be basic. But do you -- is it primarily all inhouse manufacturing? Do you also do any [indiscernible] work? Or is it all inhouse?
So it's 75-25%. So 75 roughly from our old manufacturing facilities and 25% is contributed by the third-party project manufacturer. They're manufactured for us.
And is there a product split also? Or is it -- I mean, are some products under the contract manufacturing way? Or is it -- it's just a mix across?
It's a mix across. For different regions, there are different arrangement.
And in Namkeen category, we will be [indiscernible] only at Indore.
Namkeen is centralized at Indore.
The next question is from the line of Ankit Gupta from Bamboo Capital. [Operator Instructions]We take the next question from the line of Ankit Gupta from Bamboo Capital.
Sir, just wanted to understand one thing on the margin front. Earlier we were guiding -- we were looking at double-digit kind of margins with PLI incentives. But I think we have toned down our expectations on the margins a bit. So if you can tell us the reasons for the same.
No, there is no change in the guidance. So as I have mentioned in my earlier remarks that we are targeting roughly around 9% EBITDA margin by end of this financial year. And that is excluding PLI. If I [indiscernible] PLI would be more than 1.25%. [indiscernible] include EBITDA margins, yes.
So -- and how are we planning to account for this PLI incentives? Will you continue our practice for FY '23? Or as you were saying, we might look to change that. So anything that we have decided on the same?
Yes, we might be more conservative in terms of recognizing the PLI incentive going forward. So this time, we might recognize on an annual basis.
[Operator Instructions] As there are no further questions, I now hand the conference over to the management for the closing comments.
Thank you everyone for spending time with us on this call today. We look forward to interacting with you again. Thank you.
Thank you.
Thank you, members of the management team. Ladies and gentlemen, on behalf of Prataap Snacks Limited, that concludes this conference call. We thank you for joining us, and you may now disconnect your lines. Thank you.