Kriti Industries (India) Limited
NSE:KRITI
Earnings Call Analysis
Q3-2024 Analysis
Kriti Industries (India) Limited
The company has been on a journey of consistent growth with its earnings from the Building Products segment expected to hit INR 100 crores this year, marking a solid foundation that sets the stage for ambitious growth targets. The company's executive, Shiv Mehta, conveys a sense of optimism for the coming year, specifically the 2024-2025 period, hinting at the potential for significant revenue expansion, possibly around 50 to 60%, thanks to the currently low base.
The Building Products segment, with a more favorable margin profile compared to Agriculture, is anticipated to be pivotal in improving the company's overall margins. As the business scales up, the management expects a proportionate shift in sales toward Building Products, leading to an enhancement in margins. The anticipated growth in this segment is substantial enough that the company foresees doubling its revenue to INR 200 crores without the immediate need to expand its distributor network, relying on its existing market share and incremental adjustments.
The journey towards geographical diversification through a multi-location strategy is positioned as a long-term goal. The executive stresses the importance of developing the market and consolidating the company's position before spreading out to new locations. This strategy is aimed at optimizing logistics and supply chain costs and will be pursued once the company achieves critical volumes and numbers necessary to support such an expansion.
Margin pressures have been a point of concern, particularly when compared with rivals like Jain Irrigation. The company's executive acknowledges the lower margins, attributing them to ongoing expenditure in developing the market for building materials and establishing a new brand. It is expected that as the sales ratio tilts more in favor of building materials, margins will rise to more competitive levels. Moreover, the company's expenses are projected to be 3-4% higher than the industry average, though this disparity should diminish as the business stabilizes and scales.
The company has been making efficient use of its capacities, with the Building Products segment utilizing 5,000 metric tons out of a possible 6,500 metric tons in a nine-month period. This level of utilization suggests that the company is operating near full capacity, indicating a strong product demand. However, capacity for this segment is not fully fungible with other segments such as Agriculture or Industrial Solutions, which means that further capital expenditures (CapEx) will be necessary for expansion, especially for new product molds.
When it comes to sales, the company is committed to maintaining its brand premium and not compromising on margins in order to gain market share. The company's efforts will focus more on ground-level activities to drive sales growth. Although there's no clear definition of the minimum margin per ton for its products, the financial health of the company remains a priority, with a balance between achieving sales targets and maintaining profitability.
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Ladies and gentlemen, good day, and welcome to the Kriti Industries Limited Q3 and 9 months FY '24 Earnings Conference Call hosted by Ventura Securities Limited. [Operator Instructions] Please note that this conference is recorded. I would now like to hand the conference over to Tushar from Ventura Securities Limited. Thank you, and over to you, Tushar.
Thank you. Good day, ladies and gentlemen. On behalf of Ventura Securities Limited, I welcome you all to the Kriti Industries Limited Q3 and 9 months FY '24 Earnings Conference Call. The company is today represented by Mr. Shiv Mehta, Chairman and Managing Director; and Mr. Rajesh Sisodia, Chief Financial Officer. I would now like to hand over the call to the Managing Director of the company, Mr. Shiv Singh Mehta, for his opening remarks. Thank you, and over to you, sir.
Thank you, Tushar. Good afternoon, everyone. Welcome to the earnings conference call of Kriti Industries Limited for the third quarter of the financial year 2024. I'm happy to share performance of your company for quarter 3. During this quarter, Agriculture department was sluggish. It rained both in the months of November and December in our major areas and markets; however, company achieved significant improvement in volumes of building material as compared to Q3 2022-'23. Total volumes for Q3 were 21,478 metric tons against 22,537 metric tons of last year.
During 9 months of financial year '24, the company registered an overall growth of 32% and 24% in terms of volume and value, respectively. On year-on-year basis with total sales volume of 58,101 metric ton against a sales volume of 44,064 metric tons. Sales volume from Agriculture segment grew by more than 17%, and Industrial Solutions grew by more than 2% and Building Products grew more than 75% year-on-year.
I'll now hand over the call to our CFO, Mr. Rajesh Sisodia, to give you financial highlights.
Thank you very much, sir. Good afternoon, everyone. Let me take you through the financial performance of our company on a consolidated basis. The Q3 of financial year 2024, revenue is around INR 243 crores, which indicates 62% growth on a Q-o-Q basis. However, the Agriculture business achieved sales of INR 174 crores as against INR 189 crores on year-on-year basis for this quarter. EBITDA of your company stood at about INR 18 crores with an EBITDA margin of 7.37%, which grew 335 basis points on year-on-year basis. Net profit was reported at INR 8 crores, which grew by 74% on a year-on-year basis. In quarter 3 2024, the PAT margin stood at 3.29%. The revenue for the 9 months ended financial year 2024 is around INR 672 crores, which grew 23% year-on-year basis. EBITDA is INR 46 crores with an EBITDA margin of 6.79% and net profit was around INR 18 crores. The PAT margin stood at 2.72%. Regarding the segment-wise revenue, for 9 months financial year 2024, Agriculture, Industrial Solutions and Building Products contributed 66%, 23% and 11%, respectively.
Thank you. I would like to open the floor for questions, if any.
[Operator Instructions] First question comes from Ankit Gupta from Bamboo Capital.
Congratulations for a decent set of number. Sir, on the margin side, in the last -- in Q3, we have seen some volatility in the PVC prices and the PVC prices had continued their downward trend. So were there any inventory losses, which are there in Q3?
See, I would not try to quantify inventory losses because you would see that generally in a market, the prices have been changing within a small band. And particularly in first 2 months, they were declining. Thereafter, they have stabilized. So generally, I would say that, yes, there could be a slight impact of the inventory valuation, but not very significant.
And how is the demand on the agri side? Because last year was a very high base year seeing slight decline in our volumes, so how is the demand on the agri side shaping up? How was it in last quarter? How is it shaping up for Q4 and Q1, which have been our biggest quarters for Agriculture?
Agriculture demand for the Q3 was a little subdued. There were rains in our major markets, both in month of November and December. But still, we have not been very far off from the last year numbers, so it shows there is an undercurrent, which should be able to take our sales numbers on a better numbers going forward. How quickly they return? May be a month here or there, but we are hopeful that there should be a positive growth.
Sir, one thing we wanted to understand is despite significant correction in the PVC prices, why have -- and in last 2, 3 years, the demand has been pretty subdued. Despite such significant correction in the PVC prices, why has the agri demand not picked up?
We are still hopeful because if you'll see, the first 2 quarters and even up to month of October, we have seen robust demand growth. But thereafter, during these 2 months when the rains were throughout our areas of interest, they might have impacted. We are still observing market very closely, and we are quite hopeful the demand should return because at these prices, we expect customers should have interest in buying the product.
And any revival in demand in January ending?
January has been better, yes, certainly.
And my third question was on the Building Products side. We are seeing significant uptake in volumes in 9 months as well as the Q3. So do you expect that the current growth rate of 50%, 60% or even doubling the volumes is expected to continue in FY '25 as well on the Building Products side?
We'll appreciate that our base numbers are very small. So on these numbers, we should always expect a good growth going forward. We are hopeful we should have better numbers going forward.
And how has been -- can you give us an update on distributors being appointed on the Building Products side, how is that development going on?
As I've been telling that, we're not very keen to expand distribution. First, we want to consolidate and improve our network performance in the areas we are already active. We will certainly increase and add distributors going forward. But first is stabilize and then go forward with more aggression.
Next question comes from Dhwanil Desai from Turtle Capital.
Congratulations for a very good performance. Sir, my first question is, what we are hearing is that in some of the regions and geographies, the water levels are low compared to the historical average. So how do we see impact of that in our core market? And how do we see Q1 panning out for us, which is one of the largest part for us?
Can you repeat your question. Initially, I couldn't get you clearly. The first half of the question.
Sir, what we are hearing from a lot of players in the segment is that the water levels are low in some of the regions. So how does that impact the demand for our products in the markets that we operate in? Do we see any kind of impact of that, positive or negative, because of that?
So certainly some areas where there is a paucity of rains will have some impact in terms of prospective demand. But certainly, the other areas should make up for that because there is adequate water. And at this price level, we are seeing a growth in demand.
Okay. Okay. Also, sir, very happy to see a very good scale up in the Building Products side. I think we have done INR 70-odd crores in 9 months, so we are on way to do around INR 100 crores this year. So on the base of that INR 90 crores, INR 100 crores, do we expect to grow at 50%, 60% given the low base?
You see, as I was telling to -- replying to earlier question, on a small base, as we have, it's always easier to grow, and we all have aspirations and readiness to maximize our efforts to increase sales. We certainly look forward to the coming year, the year 2024-'25 with a lot of optimism and positive growth.
Okay. And I think in the earlier call, you had mentioned that because we are investing in Building Products side for the scale up, team building, promotion, et cetera, there was some impact on margin on the overall company level basis. Now as we scale up and if we go into FY '25, do we see that normalizing with increasing contribution from Building Products? Can we get to that double-digit margin number that we have been targeting for?
You see, it is a -- scale up is a continuous process and investment is also a regular requirement, so we'll keep doing it. But yes, certainly, the margin should improve as we go forward because Building Products offer better margin than Agriculture. So as the proportion changes we will see the impact on the margins. And our expenses will also come down going forward after we have hit a minimum critical numbers.
Okay. Okay. And sir, I think you indicated and you have been very consistent in saying that, that you don't want to increase distributors, saying we first want to capitalize on the -- this, that you have created currently. So given that the number of distributors that we have on the Building Products side, do you think that we can do INR 200-odd crores revenue only with those distributors even without having to appoint new distributors?
You see, certainly. If you see our market share has significant headroom to grow. So we see very clearly a good possibility and we are quite assured that with the current distribution and some marginal changes here and there, we can achieve these numbers.
Okay. And last question, sir. I think I know we keep on asking this question on almost every call. Any update on the new plant? How are you guys thinking about it? Any threshold numbers after which you will kind of be looking at making some decision on that, if you can talk...
I have been maintaining that we would certainly like to go to different geographies because logistics, supply chain costs can be minimized and optimized if we have multi-location. But first we are developing market, we are prioritizing our efforts in the area so that we consolidate our position. We'll certainly for a multi-location once we are ready both in terms of numbers and critical volumes from different areas.
Next question comes from Madhur Rathi from Counter Cyclical Investments.
Sir, when I look at our margins, sir, they are comparatively lower to our competitor, Jain Irrigation and what they have been guiding. Sir, so what is the reason why our margins are significantly lower than them?
We are presently doing a lot of focus on developing market for building material, which is a focus area, so it entails more expenditure to establish a new product and new line of business and new brand -- brand in the new areas of operation. So it entails a few more expenses than others. And as such, Agriculture offers lower margin as compared to building materials. So when our ratios of sales in building materials and agriculture are towards what the industry generally offers -- I mean, have, our margins will certainly look up.
So sir, what kind of margins can we expect on a steady-state basis when these developments and marketing expenses are like enough for us to grow?
Normally, our expenses towards this effort will be at least 3% to 4% more than industry average. So obviously, that should reflect in our business performance once we are able to stabilize our numbers and apportion our expenses on a larger base.
Okay. So when I look at our capacity in Building Products, we have done almost 5,000 metric tons for this 9 months. And considering we have around 6,500-odd capacity, sir, are our capacity fungible between different segments where we can use either some part of the Agriculture or Industrial Solutions machinery for the Building Products segment?
There are a few products for which it is fungible, but for few it is not. So there are a few products which are fungible and we will do that, but there are certain products for which we'll need a specific requirement based on the product specific, so that's where we -- yes, they are not fungible.
Okay. Sir, so we'll need further CapEx on this side in building materials so that our margin should improve going forward?
Yes, we are hitting a critical volume. We'll have to expand our range. We'll have to invest in new molds to increase our range. So then at that time, we'll need some CapEx, but that's a continuous process.
Okay. Sir, can you quantify because we had -- we are doing 5,000 metric tons for these 9 months out of the 6,500 metric tons capacity. So I think we'll be able to utilize almost 9 -- more than 90% for this year. So some kind of like...
As I said, there's some capacities, particularly, on PVC side is fungible. So that will be used as and when required because in Agriculture, you have troughs and peaks. And during troughs, we have available spare capacity to be able to afford that for building materials.
Okay. Sir, you said like other minimum threshold, we'll be able to do a double-digit margin when we'll use our capacity. And sir, what will be that threshold where we could do a double-digit margin?
It's a question. When you increase your sales and if you increase in the same vicinity or area of geography, your per unit expenses come down and which will add to your bottom line. But -- I mean this is where we will have to take a call whether we are limiting area, we are expanding our area, but you will see a gradual increase in the margin. Because as we grow in terms of top line as well as in our geographical spread, the sites will grow, but probably top line will grow faster and that would enable us to improve our margins. So it's a journey. It's not any specific number, day or 2, or for quarter. But it's a journey, which we are going through and you will see over little horizon of time, we'll see this continuously happening.
Okay. Just sir, final question, you've guided last quarter that we'll expect to grow 7% to 8% higher than the industry. So are we planning to reduce our prices to gain this market share of other participants? Or if you could just highlight what we are plan -- what are our thought process?
We will always try to maintain our brand premium and pricing power that we enjoy in these major markets. So we will not try to compromise on our margins and we will try to maintain our brand positioning. So it will be more of a retail effort and ground level effort that will help us to grow our sales.
Okay. Sir, what is the minimum margin per ton that we expect before selling any of our products?
It's very difficult to define because it's such a large range of products. All products would have different levels of margins.
[Operator Instructions] Next question comes from Raj from Arjav Partners.
Am I audible?
Yes, yes, you are audible, Raj.
So my question is, do you think FY '25 could be a better year than FY '24 looking at your sales and execution?
We are quite hopeful, yes.
[Operator Instructions] We have a follow-up question from Ankit Gupta from Bamboo Capital.
Sir, on the industrial side, we have seen almost doubling of our revenues in 9 months of this financial year. And we have always maintained a stance of being conservative and being -- executing orders for the company -- for large companies with good payment cycles. So how is this section looking like for FY '25, we must have got some indication from our customers or some advanced orders with them?
See, I've been always maintaining that on industrial supplies, we have been very cautious and careful. We are not going to increase our numbers because the market offers because many a times, these EPC contractors get into difficulty when payments from government don't come through in time. So you would see in this quarter, we haven't shown any growth. So in Q1, Q2, we had a growth because we had not done much work last year. And this year, we have consistently been doing that much of tonnage month in, month out. So we are still at the same level of operation of about 3,500, 4,000 tons, nothing more for a quarter.
This is expected to continue for FY '25, I think?
Yes, yes. Because -- I mean, we have -- we want to develop our retails business much more aggressively than institution, where we always have challenges because of government payments coming to the EPC contractors to whom we supply products.
Next question comes from Rahil Shah from Crown Capital.
Am I audible?
Yes, yes. You're audible, Rahil.
Can you please highlight maybe and outline certain strategies, which you will be taking into the next year, which gives you confidence that you will be posting better operational numbers than this year. So what are the key things that will make sure the business is better?
We have been maintaining that, for us, Building Products, will be the focus as it has been during this year because building material offer better margins, the consistency of business throughout the year. So we'll continue this effort. And you must have seen that our building material business is growing well during the year. So we see that going forward, that should help company to have better ability of maintaining profile.
The other 2 segments will also keep growing as they have been hand-in-hand as you keep more focus on Building Products?
Yes. Agriculture will go on its logical growth because Agriculture, we have a distinct comfort of being a brand with a premium and market acceptance with a good market share and there is a natural growth in Agriculture because at these prices, we foresee customers finding product more convenient to buy.
Okay. So since you're investing more on Building Products to grow that vertical, any certain CapEx number you have in mind, which you will definitely be spending?
Yes, Building Products as it grows beyond a critical number, we will have to expand our range and add new products to our portfolio. So once we hit about another good number, where we start clocking more than INR 15 crores, INR 20 crores a month, we will have to look for more investments.
Okay. And like any aspirational target in terms of revenue, 2, 3 years down the line, you'd like to share?
Better to not to forecast, it is better to give you numbers at the end of each quarter. Because markets and efforts continue, but we are hopeful because industry is growing, so we will grow with the industry and we will try to better our rate of growth over and above industry growth rate.
Okay. So you're very certain and positive that the market is very good and you'll be able to capture good market share each and every...
Yes, we are certain.
[Operator Instructions] Next question comes from Aditya Sen from RoboCapital.
So coming back to the building segment, you answered to the previous participant that it should give better margins than agri. So can you just let us know what will be the difference? Like will it be able to cross double digits initially or where should it be in FY '25?
You see, I had explained it in one of earlier earnings calls that building material has a larger share of fittings as compared to agri. And building material fittings offer a better advantage in terms of margins as compared to excluded products like pipes. So Building Products, normally, you will see any company who is fully focused on building product will have a better margin than agriculture. So as our building portfolio increases, certainly, our ability to afford better margins will be reflected in our performance and working.
Again, in agriculture space, you have two peaks and two troughs. And during peaks, you are short of manufacturing capabilities and in troughs, you have excess capacity and Building Products sells all the 12 months in a year. So it evens out even the cyclical blips in the manufacturing space, so this is all put together, better plant utilization, better margins, overall business should improve.
Next question comes from Rahul Jain from Credence Wealth.
Congratulations on a good set of numbers, sir. Sir, just to understand one of the previous participant questions you mentioned that from Building Products, you expect that within the existing capacity, that threshold would be around INR 15 crores, INR 20 crores, beyond which probably you will need some expansion. Is my understanding right?
Yes. You see what happens that when you cross a number, you also expand your range because if you have to offer the full basket, then you should have a full range in addition to some regular and some specialized products as well. So that will all entail some investments, which is why it's required for creating a unique place in market or to be able to satisfy your major important customers.
Sir, I was trying to understand, basically, with the distribution network, which we have already built, you mentioned that first, we will need to penetrate those distribution network, which we have built, number one. Number two, the existing capacity can give you somewhere around INR 15 crores, INR 20 crores sales per month. So I'm assuming that for a top line of about INR 200 crores, INR 20 crores plus or minus, this existing distribution network, which we have set up in the last 3, 4 years, and the capacity which we have, this is in place for getting a INR 200 crores of top line. Is my understanding right?
You see what happens, suppose if my sales are growing on PVC side, I have capacity, which is fungible from agri side. But sales in certain molds are -- I mean, are specific some molds are requirements in certain areas is large, where my capacity gets limited. Because in a large range, if you are selling a few products more aggressively, you have to build capacity for those products. So that is where if suppose on certain specific molds my requirement is, I may have to go for investment. But this is a journey, which we'll discover as we go on.
Sure. And sir, given in the current year, given the volumes of first 9 months or even if I take the last 4 quarters' volume, we are somewhere nearing 70,000, 72,000 of volumes on the yearly basis. And typically, you mentioned, yes, when we look at the yearly capacity, it may not be necessarily the correct way of looking at our capacity because during the months of -- in the first quarter, our utilization of agri is very high. So if you could give us some sense at what kind of capacity utilization, what kind of overall production volumes do you feel we might go for a larger amount of overall CapEx or new plant, we are still not able to figure out that what kind of volumes do you feel that you will take that decision [Foreign Language].
It is not that we will expand once, in one go, everything. We are -- every time we are reviewing that what is the extra needed, say, incremental investment, which keeps going on, some marginal here or there. But yes, as I've said, once we reach a critical mass in a particular geography because we'll have to go multi-location over a period of time. At that point in time, we'll have to look at one consolidated investment, which would be required to operationalize a new plant.
Sure. Sir, one observation from the volume numbers and the top line of Building Products specifically. In the last 4 quarters, our volumes have gone up from about 1,200 to 1,700 in the current quarter. The revenue has practically remained the same on a quarterly basis because we have done exceedingly well on the Building Products on a 9-monthly basis, for sure. But the realization, which was around 180,000 3, 4 quarters back, it went down to 150,000 for last 2 quarters. And in the current quarter, it is down to 134,000. So typically, like is this 134,000, which has come down from 154,000, is it some amount of decrease of PVC prices, some amount of product mix changes? What is the correct way of looking at it?
Primarily, it's a decrease in the raw material prices. It is not the product mix or anything. It's a decline in the raw material prices, which are reflected in lower top line numbers in rupees though on the metric tons have grown.
So from here on, can we expect this prices not go further because this average unit realization of Building Products in the last quarter that is this current quarter, which has ended December, it is down to 134,000. So can we assume that this will be the probably at the base or the lowest from here on, either it remains the same or it goes up only?
This is what is anticipated because at these prices of internationally when we talk to most of the suppliers of raw materials, they are quite uncomfortable at current prices. And in between, the prices have gone up a little bit also.
And with the kind of global uncertainties we are seeing and more importantly, now with the disruption in the supplies or because of this problem with Houthis and this kind of movement from -- I mean, of the ships, let's see how things evolve. So these prices look to be on the bottom side. And going forward, there is only headroom upward rather than downward.
Sure. Sir, last question from my side. With regards to the states, we have been always very strong on MP and Rajasthan in terms of our agri and then came Maharashtra. And in last 3, 4 years, we have been trying to penetrate other states in the south as well as in the north. So given the kind of work which we have done below the line, and interacting with the farmers, interacting with the dealers in the newer states, so what kind of now network which we have built, which gives you some amount of understanding, yes, now this next 3 states -- because I'm sure MP and Rajasthan is matured enough now. So to get the next level of growth on the agri side, you will require, say, a Maharashtra and maybe some other 3, 4 states where we can have a sharp growth for next 2, 3 years. So how well we are placed in terms of that?
We are quite well placed. I have seen a positive growth in different states. And the best part is the dealership morale is good, which is very important for development.
Next question comes from Aasim Bharde from Dam Capital Advisors.
Just can you just talk about how your volume performance has been for the 9-month period outside your key MP market, 9-month FY '24 versus FY '23?
You see our markets -- most of the markets have grown as per the growth we have shown overall. So even MP or Rajasthan or Maharashtra have grown, including other states, which are -- I mean, a very small portion of our total sales have also shown growth. Though dealer-wise, it must have varied because in some areas, it has not rained and some areas it rained. So there will be a shortage of water or excess of water. That could be there. Overall, state-wise, yes, there is a growth.
But is the growth percentage number similar for MP and non-MP states all put together?
No, MP, you see it is already where we are -- I mean we are enjoying a market share. It is not very easy to grow the market share. You can marginally increase or a little more than the average growth, but not really a major growth beyond what you have. So we are seeing more growth coming from newer states.
Okay, I mean, just to flip this question a bit, after about 58,000 metric ton volume that you have done in 9 months, how much would that have come from MP?
MP, I would not have the exact number just in front of me here. But normally, I think about 58% to 62%, something in between should be MP, 57%, 58% to 60%. I don't have a number exactly here.
But approximately 60% would be from MP for 9 months, would you have a corresponding rough percentage figure for last year, how much would that have come from MP?
I'll ask our people to get back to you because I don't have it ready here.
Okay. Sure, no problem. Second question, I just was curious, everything -- beyond MP and Rajasthan, you've talked about certain other states where you want to grow. But is East India not a focus area for Kriti? There are quite a few players who have designs to grow their market share in the East and you already have a -- theoretically, you are close to that market, so just want to weigh your thoughts on that.
So we are not close to East, we are quite far. The logistics are pretty exorbitant -- expensive to manage. And presently, we have other markets where we should focus and develop them first before we plan and go to East. So we are still focusing more on these markets where we feel that logistically, we are well placed and there is scope to grow in those areas.
Okay. I mean I understand that you are not exactly close to the East, but I just thought because in the other markets that you're talking about, there are entrenched large peers already present, while in the East, there is not that much from what I understand, except maybe the largest player. So yes, okay, sure.
Next question comes from Miraj Shah from Arihant Capital.
Just a couple of questions. I think you've answered this one, but I missed out on it. On the Building Products side, your 9-month volumes are 5,000 tons and your capacity is close to 6,500 tons. So in case if there was more demand to be serviced, would it be possible to service it from any other capacity? Is it possible to fung the capacities? That's my first question.
The fungibility is possible in the area where Agriculture pipes are made on PVC line and same can produce building materials products as well.
How much would be that capacity sir, just in case if you want to extend that?
That will be adequate capacity. Because in season, in Agriculture, we have adequate capacity in off seasons, which can always produce requirements of building material. In season, we are short, but in offseason we have adequate capacity, which can be utilized.
Understood. Okay. And sir, what would be your maintenance CapEx annually?
Maintenance CapEx in terms of total rupee value?
Yes, sir. Yes, sir.
I think I'll have to check and get back to. I don't have it here, exact numbers. So let me...
No worries. And as of December end, sir, what would be your net debt?
Our total net debt will be about 20?
INR 200 crores totally.
So total, it will be about INR 180 crores, INR 200 crores, including working capital.
Net debt. Okay. Okay. That's it from my side. If you could just let me know the maintenance CapEx later.
Yes, sure.
[Operator Instructions]
There are no further questions. Now I hand over the floor to management for closing comments.
Thank you for giving us time and taking this earnings call. We look forward to your support in the future as well.
Thank you. Members of the management, ladies and gentlemen, on behalf of Ventura Securities, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.