Polycab India Limited analyst Q&A

Thank you. The first question comes from the line of Ravi Swaminathan with Avendus Spark. Please go ahead.

Congrats on good set of numbers. My first question is with respect to the demand for cables. We know that over the past 4 years, there has been strong demand for cables driven by central government spend. But if you see the past 1, 2 quarters, there has been some amount of softness in terms of government spends and there's not much of clarity on whether that will go up significantly over the next few quarters. Given this kind of scenario, how do you see the overall industry growing? Do you see any signs of inquiries coming off? If you can give how it is likely to be over the next 6 to 12 months?

Sure. Thank you so much, Ravi. So on the demand environment, it continues to be healthy. You are right that over the past 2 to 3 quarters, at least on the government side, the capex has seen a bit of a slowdown. But that is something which had a reason. The general elections were on and that is where you normally see in an election year that the capex slows down. But we don't expect this to be a continuous phenomenon. We do believe that the current government, they are focused on the long-term growth of the country, and that is very much visible from their vision of making India an advanced nation by 2047. So, while there might be some form of slowdown here and there for a quarter, we believe that the long-term growth avenues are there, and that is where we are also positioning ourselves to make sure that we make the maximum of this opportunity. As we have released within our guidance, we are gearing up to do capex of between ₹ 60 billion to ₹ 80 billion over the next 5 years. As you are aware, generally, we make an asset turn of 4x to 5x on the capex. So that will give you an idea in terms of what is the kind of demand that we believe will be coming over the next 5 years. We have also said that we expect to grow over 1.5x of the market growth. While the Indian GDP has grown fantastically over the past 3 to 4 years, and going ahead is expected to grow anywhere between 6.5% to 7%, but given that and seeing the historical gro wth rate of the industry, we believe the industry will continue to grow at 1.5x to 2x of real GDP. Just putting up a few numbers over here. For example, let's say, the India GDP grows at 6.5%. That means the industry growth will be somewhere between 10% to 13%. We expect to grow at 1.5x of that growth. That means our growth will be somewhere between 15% to 20%. So that is in case of a 6.5% of real GDP growth. If the GDP growth is at 7%, that means the industry growth is expected to be somewhere between 10.5% to 14%. And again, our growth is expected to be somewhere between 16% to 21%. So, that's the kind of demand environment we believe will exist over the nex t 5 years. And we are not very much concerned of what happens in between, in couple of quarters here and there.

Okay. And with respect to the wires business, so any commentary on how is the end market real estate led demand? So essentially, this quarter you have mentioned there has been a bit of destocking from dealer side, some inventory levels being high. But assuming that it normalizes, how the secondary sale demand is, from the dealers to the real estate ultimate consumer, how is that panning out? Any sense on that?

So Ravi, the fundamental demand is very strong. While the slowdown that we witnessed in this quarter was one-off, and we've tried to explain it in the presentation, what happened during the end of previous quarter was that there was a sharp up movement in commodity prices, which led to the distributors stocking up on product. As a result of which, the industry saw a huge growth in the previous quarter. We ourselves had witnessed almost 40% of top line growth for wires in the previous quar ter. Now that translated into the channel having higher inventory at the beginning of this quarter. Plus, if you look at the overall trend of copper during the quarter, it was continuously in a downward movement. And in fact, during November, in a period of about 4 -5 days, it actually crashed by almost 9%. So as a result of this, both of this combined, the wires offtake by the distributors was slow. But again, as I mentioned, this was something which was led because of the commodity movement. There is no change as far as the fundamental demand is concerned. In fact, if you look at the scenario of what has happened post that, the channel inventory is now back to normal. The commodity is in an inflationary trend, and we expect that this quarter should again be good for the wires demand. If you look at the macro numbers, which are also coming out, I was referring to a very recent report which came out from a property consultant. It mentioned that in Q3 and in the calendar year 24, we actually crossed the launches and sales of the past 12 years. It was the highest ever. Now all of this will definitely translate into demand for wires going ahead. So, in general, again, I mean, this was something which was a very one-off in this quarter. If you look at the 9-month growth for us, we have grown the wires portfolio in mid to high teens. So again, that is something which is very good in terms of demand. And we expect that this level of momentum will continue in the next few years. So, again, both cables and wires domestically, we are very positive in terms of the demand outlook.

Understood. And last question with respect to the capex over the next 5 years, we expect roughly around ₹ 6,000 crores to ₹ 8,000 crores. How much is the breakup between cables, wires, FMEG?

So, Ravi, you can assume that most of it, a large part of it will be for the Cables and Wires business. For the FMEG business, we very recently expanded or set up in-house manufacturing capacity. So as of now, the utilization rates over there are anyways low. As and when required, over the course of next 5 years, we will be expanding those capacities. But you'll also need to keep one thing in mind that FMEG business is not very capex intensive. The asset turns over there are higher compared to Cables and Wires. So, if you are modelling future next 5 years, then you can assume that most of the ₹ 6,000 cr ores to ₹ 8,000 crores that we will be putting up over the next 5 years will be for the Cables and Wires business.

Okay. And between Cables and Wires, it will be like in line with the proportion of the turnover that will be there between Cables and Wires?

See, again, there is no specific breakup over there. As of now, for us, the utilization rates are somewhere between 75% to 80%, more for Cables, a bit lower on the Wires. As and when required, we can obviously put up capacities of both. And what we can als o do is utilize the capacities which are there for cables manufacturing to manufacture wires. So in that sense, there is a bit of a fungibility over there as well. So that is where it is where I would like to put the capex at.

So before my question, I definitely want to compliment you for an ambitious but a very realistic 5-year plan. I mean the last thing we all wanted was you give a revenue number at a time when copper prices nobody knows about. So something to do with volume growth is something we definitely appreciate as a guidance. Sir, my question is on export. In U.S., you had rejigged your distribution. Not sure if that is something that's working, not working? Are you going ahead with it? Are you pulling back? Can you give a sense of what our U.S. distribution strategy has led to ? And what is our plan given that you are talking about more than 10% of your contribution coming from export?

Sure, Pulkit. So as far as exports to U.S. are concerned, we've actually seen an improvement happening. As far as which model we will continue with, we are still in the midst of taking that decision. On the distribution side, we've seen some scale -up happe ning, but the institutional model is also something which has worked very well for us. So probably by the end of this quarter or post the end of this quarter, we'll come back to you with a specific answer on which model we are continuing with. But as far as our sales to U.S. are concerned, we are very bullish on the entire opportunity over there. We definitely believe that going ahead, let's say, over the next 5 years, U.S. will be one of the top 3 geographies where we will be exporting our pro ducts to. The model is something that we'll take a call on over the course of next 3 to 4 months. To give you more flavour on how it is playing out right now, in this quarter, almost 1/3 rd of the export that we've done is to the U.S. geography (North American geography). So in that sense, there is a good amount of traction even from that geography.

Next question comes from the line of Mr. Achal Lohade with Nuvama Institutional Equities.

Just a qualitative reading. If you read last quarter, you said the demand is robust. This quarter, we have said demand is healthy. Are you seeing any sign of weakness in any of the segments/ demand centers according to you, or where exceptionally high growth in any particular segment which is kind of slowing down?

So, Achal, definitely, as of now or till now, as far as the Cables demand is concerned, we haven't seen an impact from the slowdown of public capex, which had been there in the first 3, 4 months of this year. But you are correct in your assessment that if something doesn't really pick up or the public capex doesn't pick up materially going ahead, I mean, that can obviously lead to some form of impact for this industry in the next Q1 or Q2. That risk is something that obviously the industry runs at. But we are quite hopeful that going ahead in 3 months of this financial year as well as going ahead, the government will continue to pump in money as far as the capex or infrastructure growth is concerned. And in that sense, probably that will balance out the growth potential for Q1 and Q2 of next year. So it's something that is to be looked at, but nothing which is worrying for us as far as the longer term is concerned.

Understood. The second question I had is on the capacity addition by several players in the industry in cables and wires. If you could throw some light in terms of your understanding about what kind of capex you're seeing industry -wide? And do you see a risk of overcapacity or just capacity being matching with the demand over the next 3, 4 years?

So, Achal, as far as the demand is concerned, as we've mentioned in our commentary, there are multiple sectors which are expected to do very well over the course of next 5-10 years to come. And that is where we believe the industry growth rate will continue to be quite good, similar to what we have seen over the past 3 to 4 years. In that sense, and if you look at the kind of players that exist in this business, there are 4 or 5 very large players, which have almost 60% -70% dominant market share, and then there are very small players. The larger players are the ones who have the capacity to invest in the business and probably continue to deliver on the kind of demand which is expected going ahead. Probably, the smaller players will not be able to add as much of capacity to cater to that demand. So in that sense, we do expect that since there is going to be continuous or very robust demand expected going ahead, at least the larger players, with the ammunition to add capacity, they'll continue to add capacity. But we don't expect to come in a scenario where all of us or the top 4, 5 of us are fighting for demand, because the demand is expected to be ahead of where the capacity is coming up right now. Over and above that, for all of us, exports is one big opportunity where there can be a very good growth. And obviously, all of this capacity which is coming up will obviously be utilized for that as well. Over and above that, the wires demand is also picking up, right, and expected to grow over the course of next 3 to 4 years. So the capacity can be utilized for that as well. So certainly, as of now, we are not thinking that we are in a position where there is overcapacity or even capacity matching the demand. As of now, the thought process is that the demand will exceed the capacity. And probably we'll have to wait out and see what the other players or the industry does going ahead as far as the capacity additions are concerned. As far as we are concerned, we've laid out our road map for the next 5 years. We are very bullish on the de mand, and we are going to do capex of ₹ 6,000 crores to ₹ 8,000 crores, something which we did over the past 10 years. It is something now we will replicate over the next 5 years. So that's the kind of demand momentum we are expecting and gearing up for achieving as much as possible from the opportunity.

That's very helpful, Chirayu. Just last question, if I may, with respect to the exports. Just to get a sense, in terms of the approvals, what is needed for U.S.? Of the total, let's say, the categories or the most relevant large categories there, do we hav e the approvals already in place? Or by when do you think or let me ask in another fashion, of the total addressable market in export from U.S., how much we already have the approval for?

See, Achal, I'll answer this in 2 ways. One is if you are looking at the total addressable market, the addressable market is a very large, and there are thousands of different types of SKUs of cables that can be exported. For us, exports is a strategic bus iness, wherein the goal for us is to improve on our margin. So probably we won't be catering to all the thousands of SKUs which can be exported. As far as the SKUs, which are the ones we are targeting, and if we are specifically talking about U.S., we have almost all the approvals for all the type of SKUs that we want to export over there. So while obviously, we'll continue to work on whatever remaining approvals are left, but largely, we have that addressable market that we wanted to cater to in U.S. already covered up.

And what would be the size of that addressable market of the total market? Would that be 60%, 70%? Or would that be 20%, 30%?

Very difficult to put down that number as of now. Probably we can work that out and get back to you in terms of the addressable market for the U.S.

Next question comes from the line of Akshay Gattani with UBS.

So my question is what are the all ongoing expansion projects which you are undertaking? And when do you expect them to come online? And in addition to this, if you can give some more light on the EHV cable expansion project which we are undertaking?

So, Akshay, as we have been mentioning over the past 2 to 3 calls, the expansion that we are doing are across all the product categories, all types of cables, low tension cables, high -tension cables, cables which are used for exports. Optical fiber cables expansion is something that we've done. We are putting up a plant for special purpose cables. So all types of cables as well as wires. These capacities are largely fungible in nature. So, of course, we can utilize it for any type of cables, whichever cable is driving whatever higher demand at a particular point of time. As far as the EHV cables capex is concerned, as we've been mentioning, the capex outlay for that plant is roughly ₹ 6 billion to ₹ 7 billion. The capex is going on as per plan, and we estimate that the plant will be commissioned by the end of FY26 and can potentially start contributing to the Company's top-line from FY27 onwards.

Got it. And this EHV cable with ₹ 6-7 billion of outlay, what will be the revenue potential?

So generally, I think the asset turns that we expect are close to about 4x over there. And obviously, the ramp-up will be gradual in nature. It won't be from the first year itself.

The next question comes from the line of Shrinidhi Karlekar with HSBC.

Sir, are you seeing tailwinds from the rising rooftop solar system adoption in India because of this government's Surya Ghar Yojana?

Yes, Shrinidhi, definitely, that is one of the areas wherein we are seeing a lot of traction, especially over the past 1 year. We definitely have products through which we cater to that industry. We have solar cables which are supplied as well as we have solar inverters and panels which are obviously supplied for the same. And over the past 2 to 3 quarters, we've seen that business doing very well for us, continuously increasing its contribution as far as the FMEG segment is concerned. So that is something which we believe will continue to be a driver of growth for the FMEG segment going ahead as well. And we are, at our end also, trying to add as many products or SKUs over there as far as our offering is concerned, so that we can obviously capitalize on this upcoming opportunity.

Right. And relatedly, are you also getting -- is there a cable intensive demand apart from FMEG products? Is it cable intensive or it's more wire intensive?

It requires cables, but the requirement of cables is not very materially different as far as the percentage is concerned. Consequently, the requirement of switchgears is also there in adjacency to the requirement for the solar panels, inverters and cables. So it's a thing which drives demand for multiple products from our portfolio.

And second one, Chirayu, is related to this exchange difference related costs that are there in the other income line, ₹ 31 crores expense versus ₹ 40 crore income. Would it be possible to elaborate that? What exactly is that? And one should consider that as an operating line or it's more of a treasury function?

So Shrinidhi, it is linked to the MTM on foreign exchange. We had a loss this quarter of about ₹ 31-odd crores. This was linked to the rapid or sharp depreciation of rupee that we witnessed in the previous quarter. As far as its accounting is concerned, if you look at the segmental EBIT margins that we publish below the P&L, it is already apportioned to the specific segments. So when you look at the EBIT margins, the negative impact of it is already there within the EBIT margin.

Right. So yes, you consider it more like operating that way.

Yes. Yes, Shrinidhi.

Yes. And lastly, on exports, the very strong growth rate that you saw in this quarter and your commentary of sustaining this growth momentum. Is it driven by U.S. as of now or it's driven more by non-U.S.?

So Shrinidhi, it's across. As I mentioned, there are 3 or 4 geographies which contribute majorly to our top-line. U.S. is definitely one of them. Middle East is something wherein we are seeing a lot of demand for cables. Europe, Australia are other large c ontributor. We are trying to also enter as many geographies or countries as possible in Asia. But as of now, its contribution is lower. But the other 4 geographies, all of them are generating very robust demand, and all of them are increasingly contributing to the order book that we have on the exports business.

Next question comes from the line of Amit Mahawar with UBS.

Particularly on exports, maybe our market share in exports is largely around our market share in the domestic market. And please correct me if I'm wrong. As a country, we have less than 2% market share of global exports on cable from India. Do you think in the guidance that we've given of more than 10% contribution from exports, it is more close to 18%, 20% than 10%. Can you clarify? And second question is, can you specify how much will be EHV scale within the guidance of the next 4, 5-year guidance that you've given?

Sure, Amit. So first, referring to the exports question. See exports demand is something which is obviously very large. We are putting up a specific plant just to cater to the export demand. We obviously already have capacities to be able to cater to that demand. So going ahead, we definitely expect the exports growth rate to be faster than domestic growth rate. But one also needs to keep this in mind that even the domestic cables and wires portfolio is expected to grow at a very good pace. In the example, as I had mentioned, depending on the real GDP growth, it can be anywhere between, let's say, 15% to 20%. So that is a big base and is going to be growing at a very fast pace. Over and above that, the FMEG portfolio, there too, we are targeting to grow almost 2x of the industry growth, right? So that will also increase as far as the base is concerned. Other than that, even EPC, we have a very good order book currently and probably some more will come up from two other opportunities linked to BharatNet as well as from the EHV. So the base itself is expected to grow at a very good pace. And hence, while exports growth will definitely be faster than domestic growth, the percentage contribution increase can't be at a very rapid pace. And that is where we've left it as saying that it will be greater than 10%. As far as capacity is concerned or opportunity is concerned, we have the ability to take it even closer to 20%, but we'll have to see what are the other variables and how they play out. Coming to the EHV part, we have obviously taken a contribution from the EHV to the overall top-line. But again, it is not something which is going to be very material as far as the overall cables and wires top -line is concerned for FY30. It will be possib le for us to give you more clarity on that much closer to when the plant is about to be commissioned and then we ourselves have more clarity in terms of the demand momentum as well as the order book over there. So probably we can come back to that closer to the date of commissioning of the plant.

Next question comes from the line of Niket with MOAMC.

I had just one question. One is, if the duty or the tariffs are being imposed on Mexico or Canada by United States, and given the fact that Mexico is such a large exporter of wires and cables to U.S., do you think this will open a significant amount of opportunity for you? And how are you guys looking at it?

So Niket, that is definitely something which we are also looking out at as far as the opportunity is concerned. As far as import duty on cables is concerned, import duty on Indian cables by U.S. is in the range of 3% to 5%, whereas Mexico enjoys 0% import duty as far as cables export to U.S. is concerned. So as per what the American President is saying, and if he actually goes on implementing 25% import duty on Mexico, then the pricing differential between the cables that we are able to supply versus what Mexicans can supply, obviously, the pricing goes in favour of India. And that can definitely lead to market share gains for players from India like us. So obviously, that is something which can be a big needle mover, and we are looking at that as and when that happens. But obviously, we'll also have to see whether similar import duties are levied on India or not. I mean, in that sense, it's something which is quite an open area. We can get more clarity on that over the course of next 1 to 2 months as and when things move ahead in that direction.

Got it. Last question is, how are we embracing this e -beam technology of manufacturing? Do you think that's likely to be a large moat? Is it higher margin versus the traditional one? Or is it the export market would love to have more e -beam technology made wires and cables versus the traditional one? How does it work? If you can just give me some understanding, that would be great?

Sure, Niket. So e-beam as a technology is something that we've been utilizing for over 2 decades now. Probably, we were the pioneers of utilizing that technology in India. We've been utilizing it for cables for a while now. Specifically, if you look at the special purpose cables that we manufacture for niche industries, we utilize the e -beam technology over there. Recently, over the past couple of years, we have seen that, that technology has also started being used for manufacturing of wires. While the market for that type of wires was obviously quite small, but it is growing at a good pace, because obviously, the end customer, they know that this quality wires are obviously superior to the normal wires, and that is where the larger players, d evelopers, etc., they are looking to embrace this technology wires. At our end as well, we are gearing up to supply those. We already have a product which are manufactured through e-beam technology. It has already been launched in the southern part of the country and incrementally being launched across the other 3 zones. We will also have one more product at a different price point, again, with the e -beam technology, which will be launched in the near future. So definitely something which can be additional generator as far as the growth is concerned on the wires side going ahead.

Got it. And one final one, if I may squeeze in, is when you highlighted your export share will likely to improve to closer to 15% to 20% over a period of time, why is the margin assumption still at 11% to 13%? Shouldn't it be 13% to 15% range?

So Niket, we have always been saying that in the long term, 11% to 13% of EBITDA margins is something which are sustainable in this business. In the near term, maybe in the midterm, depending on what is the product composition or the business composition, there are obviously possibilities that we will continue to operate at the high range that we are operating right now. But at this point of time, I wouldn't want to commit that 5 years down the line, similar scenarios will exist. So if it exists, obviously, we will try and our endeavour will be to continue to overdeliver on that guidance. But as of now, the guidance will b e to deliver 11% to 13% of EBITDA margins in the long term.

So my first question is related to the EPC business. In the last 4 quarters, we had seen a good run rate going on. So if you can give some more colour on how is the order book, especially in this segment? And also on the margin profile guidance going forward in this segment?

So, Praveen, as I had mentioned, we have a robust order book over there. As at end of December, about ₹ 48 billion is the open order book that we have to execute over the course of next 2 to 3 years. So roughly, from that order book, you will see a similar run rate that we've been generating over the past 2 to 3 quarters, consistently coming up over the next 2 to 3 years. Over and above that, possibly, as and when we start executing the BharatNet order, that will start contributing a bit on the EPC top line. Probably from FY27 onwards, when we have an EHV order and we are executing those orders as well, that will also cont ribute to the EPC. But as far as its contribution is concerned, we don't expect the EPC to be a very large contributor to the overall Company's top-line. It will continue to be in maybe high single digits. And as far as the margin guidance is concerned, as of now, while we are operating at, let's say, 10%, 11% of margins, the long -term sustainable margin range for that business is somewhere in the mid - to high-single digits. So that is where probably our business will converge to in the longer term.

Okay. And the next question is related to the FMEG, because in the FMEG this quarter, you had grown and given the reason for that as well. So especially in the lightings, which you had seen the value growth, is that also sustainable? Or is there some element of a seasonality also there in this quarter, which in the proceeding quarters, we'll not be able to see that? Or you are seeing this to be the normal run rate for a quarter?

So Praveen, on the lightings side, definitely, Q3 had a positive impact in terms of the Diwali festival that we had during the beginning of the quarter and which obviously contributed in terms of enhanced sales. But over and above it, I don't think that is the only factor. A lot of initiatives that we have taken in that business in terms of expansion to different geographies, tying up with more and more distributors, retailers, having incentive schemes for them, all of them are actually working out very well in our favour. And we do expect that this business will continue to do good going ahead as well. As far as growth percentage is concerned, of course, I mean, it will be very difficult to predict whether it will continue to deliver very healthy volume growth or value growth continuously, because pricing erosion is something which is still ongoing. Whi le obviously the pace has lowered, but it's still continuing. Probably, going ahead, on the premium side of -- premium SKUs of those products also is where the pricing erosion might take place. So in that sense, there will be some form of impact because of that. But as far as the demand generation avenues are concerned, our initiatives are actually working out, and we are quite hopeful that, that business will continue to do well for us going ahead as well and continue to contribute to the overall FMEG growth for us.

Most of my questions are done. Just some bookkeeping, if you can help. How was the broad mix of Cables and Wires in 3Q given that Wires had seen significant weakness? And for YTD, what was the volume growth across Cables and Wires?

So as far as the mix is concerned, I believe the mix of Cables have obviously gone up, and it is north of 75% between Cables and Wires now. As far as the volume growth for the year is concerned, the volume growth in Cables is in double digits and for Wires is in single digits. Overall, the Cables and Wires volume growth for the year-to-date is in double digits.

The last question comes from the line of Aniruddha Joshi with ICICI Securities.

Most of the questions are answered. But just 2 things. Can you indicate the likely market share that we are targeting in FMEG segment, considering we are planning to grow at almost double the market rate? And also in terms of the region-wise strategy, East, West, North, South, which are the regions where we are looking at higher growth rates or possibility of more market share gains? And lastly, in terms of quick commerce, we don't see much of presence of Polycab in quick commerce channels. So any outlook that you would like to indicate regarding these channels? Yes, that's it from my side.

Sure, Aniruddha. So as far as FMEG business is concerned, as we've mentioned that we would target to grow ahead of the industry growth rate. Somewhere between 1.5x to 2x of industry growth rate is something that we are targeting to grow at. Obviously, that will help us gain on market share. But of course, it will be different for different products. And that is where it is very difficult to say what percentage market share we will gain as far as the FMEG segment is concerned. Between the different product categories, we've already laid out which are the categories which we believe we should be targeting to grow its contribution because of better profitability and all. In general, across all the product categories, we'll contin ue to expand as far as the capacity is concerned, as far as the distribution is concerned, and so on and so forth. Ultimately, as we've been mentioning, the ultimate goal for us is to be among the top 3 players across the product categories. So as far as t he growth or market share is concerned, we'll have to work in all the product categories consistently across the years. Sorry, your second question was on...

Quick commerce...

As far as regions are concerned, see, as of now, the Western region is where we have the most presence. But of course, we are working on gaining prominence in other regions as well. All the other regions, North, South, East probably is where we are doing a lot of initiatives in terms of distribution expansion or making our products available across more number of retail outlets, enhancing our product availability or different types of products catering to specific price points as well. And over and above that, the different type of GTM strategies are also being employed, so as to make sure that for a particular geography, if there is a particular type of GTM which works best, we employ those GTM strategies. So that is something which is in works, and we are trying to improve the contribution of other geographies to the FMEG top-line as well. As far as the e-commerce or quick commerce is concerned, that is also a part of the GTM strategy which I was mentioning. As and where in whatever geographies those GTM strategies are working well, we will obviously try to work and employ those strategies as well. Probably going ahead, maybe over the course of next few quarters, years, you'll see our availability becoming or improving much better across all the different types of GTMs. I hope I have answered the questions?

Yes, sure.

Ladies and gentlemen, due to time constraints, we have reached the end of question-and-answer session. I would now like to hand the conference over to Mr. Gandharv Tongia: for closing comments.

Thank you for your support in our previous transformation project, the Project LEAP. We are now counting on your support for our next ambitious project, the Project Spring. Thank you for joining us today, and wish you a great day ahead. Thank you. Bye-bye.

Thank you. On behalf of Polycab India Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.