SHREE CEMENT LIMITED analyst Q&A

Thank you so much, sir. Ladies and gentlemen we will now begin with the question and answer session.

Navin, before we start the Q&A, can I make a point, please?

Yes, please. Please go ahead.

Good evening, everybody. I would like you to recall two specific public communication we had made. One was at the end of June '25 quarter when Mr. Bangur had gone on television saying that he expects the growth for Shree Cement in last financial year between 2% to 3%, we have delivered 2.2%. The second attention I would like to draw is towards the last quarter's concall where, unfortunately, Mr. Akhoury could not attend, where I had said that we have moved to a more stable pricing platform, narrowing the gap between the topmost player and us by almost INR15 to INR20 a bag and now we will be chasing volumes. We have delivered on both these accounts, which explains our ethos of delivery and not proclamation. Now I open the floor for any questions you have.

Thank you so much, sir. The first question comes from the line of Rajesh Ravi from HDFC Securities. Please go ahead.

Okay Ravi, Bhandari here. As far as capex is concerned as on date, as Mr. Akhoury has already informed you, we are pursuing three distinct places. One, we will be increasing our RMC plants during '26-'27. Number two, we are earnestly working on railway sidings. And number three, the Meghalaya expansion for which orders have already been placed. However, the total capex estimation for the year '26-'27 is approximately INR1,500 crores and it should take its own course. We expect to close the year with about 50 to 55 RMC plants, railway sidings and preliminary work on Meghalaya cement.

Okay. And any thought on your long-term next 2-3 year expansion plans because Meghalaya will be a smaller capex?

Look, my dear friend. We are on record saying that we should reach 80 million tons by 2029. But then please understand it's a dynamic situation. We have slowed down the capex. Even in the last concall of one of our competitors, they have also slowed their aggression. So we will ride the wave as it is. We intend to reach 80 million tons by '29, but let us see.

Yes. Understood, sir. Great. And on the cash surplus, you have increased the dividend for sure. That is a good news. But anything further b ecause we are now close to INR9,000 crores odd surplus cash?

We are 6400 Cr Net cash and a borrowing of approx 1500 Cr, Gross 7900 Cr. You are correct. We will keep on finding the ways to reward the shareholders as well as if the situation improves, we can expedite our capital expenditure program by front-ending it. You will appreciate that in the last 15 years or so, we have not borrowed. We have generally funded all our capex to our internal accruals and we intend to do the same.

Understood, sir. And second, if I look at consol e minus standalone just for clarification, would that give the UAE performance or this would also include your East subsidiaries performance, consol minus standalone EBITDA?

No. Listen, consol has two components. One is Shree Cement East Private Limited and one is UCC, which is Union Cement at UAE. Now Shree Cement East Private Limited will be the engine for further capacity expansion in India and UCC, as Mr. Akhoury has already pointed out, is on track to add another 2.3 million tons of capacity by September '26. And I think it should keep us in good stead.

Great. Sir, given that our growth engine will be the Eastern subsidiary, should we not be looking at the company at a consol level rather than at a standalone level?

Indeed, I take your point. And we have been looking at this possibility. Maybe next quarter onwards, we will talk of consol only.

Understood sir. I will come back in queue meanwhile you may share the operating numbers.

Thank you for the opportunity. Good evening to the management. Sir, my first question pertains to the freight cost, which appears to have increased by INR80 per ton kind of a number, on both Y-o-Y and sequential basis. Any reason for the same, sir?

No. What has happened is that our lead distance has increased by about 12 kilometres over last quarter. We are seized of the fact and we are working towards reducing this and maybe bring it back to sub 440 kilometer ton. And you see, basically, it is completely dependent on the demand- supply scenario of each region. So we are working on it and we should be able to bring it under our control.

Yes. Sir, my second question is that in the last concall, you mentioned about the depreciation guidance of around INR1,600 crores to INR1,700 crores. So are we sticking to the same number for FY27 or is there some upward revision?

Yes, we are sticking to that.

Sure, sir. These were my questions. I will join back in queue.

Next question comes from the line of Amit Murarka from Axis Capital. Please go ahead.

Yes. Hi, good evening and thanks for the opportunity. So on the strong volume growth delivery in Q4, which is like 11% Y-o-Y on cement level is what I see. So going ahead, how do we see it like full year is obviously at 2, but Q4 is pretty high? So going ahead like should we expect full year run rate to also now be at similar levels?

Basically, the guidance we have been maintaining is 1% over the average industry growth rate. However, we expect to reach about 40 million tons in this year. '2627, we should be around 40 million tons. But of course, there are a lot of macroeconomic factors, which are beyond our control. But hopefully, things will do well.

So just to clarify, 40 cement including clinker or only cement?

Look, my dear friend, clinker is not our choice. We would not like to sell clinker because we are losing the value-add opportunity. Clinker is basically for various small reasons, it's not a meaningful volume at all. So please do not look at clinker volumes at all. Look at cement at 40 million, what I'm saying is maybe including 200,000-300,000 tons of clinker. Otherwise, it should be cement only.

Sure. Understood. And generally on this West As ia crisis, while we know that there is cost inflation that everyone is facing, what are the mitigation measures? I believe now coal probably is cheaper than pet coke. So are you switching into coal more than pet coke and what are the mitigation measures basically?

My dear friend, it's a dynamic exercise for us. We keep on evaluating the techno commercial viability of various kind of fuel mix. And as on date, yes, you are right, coal is becoming cheaper than pet coke. But then pet coke prices also cooled down by more than USD10 a ton. So we are not concerned with what fuel we are using. We are concerned with landed cost per kilocalorie on air-dried basis at our plant. So we are constantly on that. Indeed, yes, the fuel cost which is standing at about INR1.60 per kilocalorie as on date will move up maybe by 10% or something for this quarter. But then, yes, this is our business to keep on maintenance of sustainability and profitability. You may also note that in- spite of whatever results whosoever has declared, our EBITDA per ton of cement for the year '25, '26 is by far the highest in the peer group.

Right. Congratulations on that. And just lastly , if I may, could you provide region-wise capacity utilizations for you?

Look, my dear friend, I'm now asking Mr. Jajoo and Mr. K.K. Jain to fill you up with these details. I don't have these details in front of me. They must be having it. Mr. Jajoo, can you answer this? Subhash Jajoo: Yes. For this quarter, for North the utilization is 70%. For East, it is 60%. For South, it is 61%. Company as a whole, the utilization is 66%. As compared to December, the number was 56% for the company as a whole. So from 56%, we have increased it to 66%.

Got it. Thanks a lot. I will just come back in the queue for more questions.

Thank you. The next question co mes from the line of Siddharth Mehrotra from Kotak Securities. Please go ahead.

Thank you, sir for the opportunity. Sir will your competitor also sort of going slow on expansion, do you think there's a chance that demand might be sort of impacted in the ongoing year? What are your thoughts on demand specifically for, say, the next 12 months?

Let us understand my friend. Before the new series of GDP came into play, the demand was 1.3x the GDP growth rate. Now once the constituents of GDP got reconstituted, the demand has come to around 1 to 1.1x GDP growth rate. Now the bedrock of growth, economic growth is steel and cement. If India needs to grow at 7%, steel and cement should grow at least in tandem with that, if not more. We expect this year 6.5% to be the GDP growth rate. So we should do about 7.1%-7.2% cement demand growth rate. And as I have said, that should be the industry average. We should grow at about 8% to 8.5%, but you can never say. So let us see how the GDP moves.

Thanks for your thoughts on this, sir. Just another question. Sir, we've seen a fair amount of cost inflation, as you rightly pointed out. So I just wanted to check what are the prices looking like this quarter? Have we been able to mostly pass those on to the customers or do you think we need more price hikes?

No. Listen the fundamental principle of any busines s is heart wants more. So let us be very clear that whatever we can pass on, on a sustainable basis to the market after absorbing our cost push, we should be all right. We will aim to increase the profitability. Let us see how it pans out. And in any case, if the war in Middle East gets over in the next 2 months, the fuel prices are about to come down. So it is a completely dynamic situation as on date.

Got it, sir. Any chance you could provide us some colour on the hikes, which has been taking, say, for example, in the past month or so?

About INR25 a bag.

And this is across regions?

I don't have that kind of a breakup, but South is okay. And you can, of course, ask Mr. Kamlesh Jain or Mr. Subhash Jajoo to send you a mail separately on this.

Got it, sir. Just one last bookkeeping question. The sales figure that you've mentioned, that includes volume sales from our wholly owned subsidiary as well?

Subsidiary in India.

11% is the sales from the Indian operations.

Okay. So that 10.77 number is including Shree Cement East.

Yes.

Thank you, sir.

Thank you. Our next question comes from the line of Pinakin from HSBC Bank. Please go ahead.

Thank you very much. Sir, my first bookkeeping question is that what is the net cash balance as of March '26?

We are 6400 Cr Net cash and a borrowing of approx 1500 Cr, Gross 7900 Cr.

Got it. My second question is, sir, on capacity ex pansion. So 69 million tons capacity as of March '26 and overall annual full year utilization would be in early 60s. Now that 80 million ton target by FY'29, given the utilization levels that are there, can we expect this to get pushed out by a couple of years?

I can't say it's too early to comment. We have slowed down. I have given a guidance of INR 1,500 crores only for capex in this year. Let us see how the situation plays.

Got it. And sir, this value over volume and now we are focusing on volumes. So is it fair to say that between volumes and price and EBITDA margins, while we are chasing volumes, EBITDA per ton is also something you will keep on focusing on and not let it go down much?

Look, my dear friend, let us understand. Q2 and Q3 of last financial year, we suffered to pull up our prices. We did not aggressively sell. And once the prices have established to a level where the delta between the top players and us has reduced significantly, we don't intend to give up that advantage. We would like to have now our fair and proper market share. That doesn't mean we'll go into a price war and push volumes. Profitability is the prime focus. Price always the market gives. Volume is what we are capable to produce. This is the situation. Now how it will put pressure on EBITDA, we have never in our history given any guidance on EBITDA per ton. We have never given you any guidance on sale price per ton because it is not in control of any commodity manufacturer leave aside cement. It is a completely macro-driven equation. And we would not like to hazard a guess. We can say what our costs are, we can say what our aspirational volumes are and balance whatever will happen to everybody will happen to us.

Got it. This is very clear. Thank you very much, sir.

Thank you. Our next question comes from the line of Ritesh Shah from Investec. Please go ahead.

Yes. Hi, sir thanks for the opportunity. Sir a couple of questions. First is if you could, sir, put some details on the Northeast expansion, specifically around limestone sourcing. If we have won a mine, what is the auction premium that what we have paid and any indicative time lines on the expansion that we have indicated?

We have gone by the laws of local government in Meghalaya, the state laws, where the state government allocates the mines. What we have got is three blocks. We have not completed prospecting of all the three blocks, but the first block where we have done our detailing, we are talking roughly about 600 million tons of limestone in aggregate.

Sir, the premium that we have paid and if you have any secured any incentives for this project along with the time lines?

Mines are not auctioned. They are allocated.

Okay. And sir incentives?

No, we have not yet received any confirmed paper document from the government of Meghalaya on incentives to be given. We have approached them, but we have not got any confirmation from that. So this project is to our estimate, strongly viable even without incentives.

And sir, how should we look at the capex number? It looks very high, INR1,800 crores. Is it because of the region or is it something different?

No, my dear friend, Bhandari here. The INR1,800 crores capex apparently looks very high. But then as Mr. Akhoury just pointed out, we have three blocks. We have prospected one block, which shows more than sufficient deposit. Ultimately, we intend to reach 4 million, 4.5 million tons of capacity there. But then once you start looking at setting up that kind of a capacity, we are starting with 0.95 million ton of clinker and 1 million ton of ce ment. But we have to create the necessary infrastructure, acquire the land, draw the power lines according to our ultimate plan. So a lot of Brownfield expansion expenditure gets front-ended. And that is why this figure is looking so high.

Perfect, sir. This helps. Sir, my second question is on the cost levers. Any variables that you would like to highlight, say over next 2-3 years wherein we can actually improvise on the cost. So probably if you can touch upon any targets on WHRS? Second is RE, third is clinker factor. And fourth is railway. I think when I met you last time, you had indicated the railway volumes, we look to double it over next few years. Some numbers over here also would help, sir.

So I mean, no company runs out of arguments by which it can better its performance. Shree, of course, has many strong arguments where we can further work on our efficiencies and improve the performance. Last time we spoke about railway projects. We have railway, we have AFR. We have renewable power. All these are part of how do you improve your cost position. And that is what we are working on. On railway, we are working on at least thr ee, four different sites on the railway. At this moment, it will be not fair for us to disclose a number. But be rest assured that all those arguments, we are using very strongly to further improve our cost position.

Thanks for that. Any numbers that you would like to qualify for WHRS and RE, given we are already doing so well, do we have further room to improvise?

WHRS all our kilns for today an d for the future will be linked with WHRS. Even currently, all the kilns that we are commissioning are having WHRS facilities. For RE, very deliberately, I'm not giving you a number today. Maybe by next call, we should be in a better position to give you. Solar energy, we are strong. I mean you have seen that we are already at 61%. And so wherever there is an opportunity, we will continue to invest in renewable energy, solar included to make sure that we take advantage of this to further better our performance.

To supplement Mr. Akhoury's statement, we are also quite aggressively exploring the possibility of a viable battery energy storage system, BESS. We have started experimenting on a few things. If that succeeds, then there will be a huge potential of setting up further RE capacity, especially in solar.

Perfect. And sir, clinker factor, what it is right now and do we have any aspiration on this number, say, 2 years out?

Yes, I'm giving the line to Mr. K.K. Jain. He will give you the numbers.

Yes. For the current quarter, the clinker factor is 64.8% against 63.9% in December '25 and 64% in March '25.

And sir, any target for this 2 years out?

For each product, we will be fully optimizing our clinker factor. Now the future will depend on the product mix. And product mix will depend on the kind of segment that we will continue to cater to. So if it is OPC, then of course, there is a results in a lower clinker factor. And if it's PPC, it's a better clinker factor. But for now, I think our clinker factor is in line with best-in- class in the industry to my mind, except people who use slag.

I'll stick my neck out and say that probably we have the best clinker factor.

Perfect, sir. This is very helpful. Thank you so much. All the very best, sir. Thank you.

Thank you. Our next question comes from the li ne of Raashi from Citigroup. Please go ahead.

Thank you. Just on the cost, sir, what has been the cost movement in this quarter, cost of production versus the last quarter?

Raashi, let me address this upfront. As I said, our per kilocalorie landed cost last quarter was at INR1.60. We expect to keep this creep up to INR1.76 or INR1.80. Jajoo will share the exact calculation with you. But then please understand that we are trying to keep on increasing our thermal efficiency. Yes, we used 733 kilocalorie in this quarter vis-a-vis 741 in previous quarter. So we are continuously trying to decrease this and if we decrease this then the quantum throughput also falls, isn't it.

Yes. Got it. Sir, so besides the power and fuel cost, you would have also witnessed some increase in packaging costs. So on a cumulative basis, what kind of cost increase are you talking about?

Well, you should roughly take about INR150 a ton.

Yes. There is some increase in the packing cost in the quarter. The impact is in the March. And if we see the quarter figure, then it is increased by INR20 per ton. And now going forward, it would be around, say, INR100 per ton, there will be an increase.

So on a total cost basis, just going back to the fourth quarter, you've had an increase in the power cost, you've had an increase in freight as well as in packaging. So the blended cement cost of production would have gone up by how much during the fourth quarter sequentially?

Should be around, say, INR150 to INR200 per ton, including packing and the raw material cost as well as this power fuel and all.

This is in the fourth quarter?

No, in the coming quarter. In the fourth quarter the impact is around, INR20 to INR30 - compared to December.

Okay. So total cost increase is INR20-30 versus the third quarter. Okay. And what was the percentage of blended cement and trade cement during the quarter? Subhash Jajoo: 64% was the trade sale. You wanted the trade sale, right?

No blended cement. Subhash Jajoo: Blended is 62%.

So blended is 62% and trade is 64%? Subhash Jajoo: Correct.

Thank you. Our next question comes from the line of Parvez Qazi from Nuvama Group. Please go ahead.

Hi, good evening sir and thanks for taking my questions. I'm sorry if you've answered this question earlier, but just wanted to get what was our kcal cost in Q4?

INR1.60 per kilocalorie landed at our plant.

Sure. And just one more question. What would have been our fuel mix in Q4? Subhash Jajoo: For Q4, it was pet coke was 54%, coal was 32% and alternative fuel was 14%.

Sure, sir. Thanks and all the best.

Thank you. Our next question comes from the line of Prateek Kumar from Jefferies. Please go ahead.

Good evening, sir. My question is on your pricing gap closing with large peer. You talked about closing INR20 gap. So is this similar across regions and is this the stabilized level, of course, you said there's always scope to improve, but how is this different across regions?

No, let us understand, Prateek. INR15 to INR20 is the delta decrease across region and we intend to compress it further. But then demand plays a ma jor role in pushing the price rise-. So let us see how the demand pans out.

Sure. And this pricing gap reduction has happened over the past three quarters?

Yes over the year it has been a continuous exercise. Till third quarter, we had restricted our volumes to have the price gain. And fourth quarter, we have done all right. The pricing is fine. The volumes are good and we intend to remain like that.

Sir, other question is on your RMC business revenue for Q4 and full year and EBITDA for Q4 and full year?

RMC revenue is INR90 crores and the volume is 1.99 lakh MQ.

This revenue was INR90 crores for Q4 and for full year, what was the number?

It is INR246 crores.

Sure. Thank you. These are my questions.

Thank you. Our next question comes from the line of Pulkit Patni from Goldman Sachs. Please go ahead.

Sir thank you for taking my questions. I have just one question. You spoke about packaging cost increase of INR20 already done and another maybe INR80 to INR100 in Q1 and there's another INR150 to INR200 of fuel cost increase. Sir, would that be it? I'm just trying to understand what is the kind of inventory of fuel that we have right now at the plants and does it fully reflect in Q1 or Q2 will see further inflation in that?

No, wait a minute. As far as Q2 is concerned, we cannot comment. Can you tell me when the war will be over. Hear me out. At the moment, we are saying that our per kilocalorie cost in Q4 was INR1.60, which is likely to go up by 10% to 12% in Q1. Q2 we are not in a position to comment. There are no floating cargoes available and the Strait of Hormuz is playing its own spoilsport. So it is very difficult. It's an extremely dyna mic situation. Now PVC granules are vanishing or having a galloping price rise. So the indication as on date, you can take INR100 per ton of packing cost rise. And balance as Mr. Jain had explained to you within the quarter at varied time depending on the weighted average cost of consumption, which we use or which most companies use the incremental negative impact of such cost rise will be incrementally reflected in our results. And also remember the industry as a whole is suffering on these two accounts. And there is a conscious effort by all players to try and have a price rise, which should mitigate this cost increase.

Sir, I fully appreciate that. The reason I'm asking this question is some of your peers have highlighted that they maintain between 60 to 75 days worth of fuel inventory.

Please understand that they talk of 60 to 75, we have never gone below 90.

Sir, in which case the fuel cost should hit us in the second quarter, right? I'm a little confused. Sorry, help me understand this?

I said that people are saying they carry 60 to 75 days of inventory. I say our coal inventory doesn't go below 90 days.

Sir, if the war started end of Feb, early March, th en it is not before the last month of this quarter that increased cost should hit you. Right now, we should be operating on old cost inventory?

No, my dear friend. You are slightly mistaken. The charge is on weighted average cost, not on procurement cost or historical cost. The weighted average cost with every shipment keeps on increasing as the fuel price is rising. So yes, the major impact will come in the third month. But then every month, you will have some incremental effect.

Precisely, sir. So in which case, whatever is getting ordered today, the second quarter impact of cost will be much higher. That's what I'm trying to assess?

No. That is you are assuming that the same pricin g will sustain that war will keep on going, that all shipment chaos will be there. I'm not in a position to hazard that guess at the moment.

Fair point. Point well taken. Thank you.

I would like to clarify one thing that there will be, say, cost impact of INR150 to INR200 in the second quarter as compared to the March '26. This is in totality, including the packing cost in the June quarter. I mean not definitely for the coal and for the packing.

This is cumulative cost.

Put together all.

Okay. Very clear, sir. Thank you.

Thank you. Our next question comes from the line of Raghav Maheshwari from Equirus Securities. Please go ahead.

Yes. Hi, good afternoon. Good evening, sir. Firstly, congratulations on a good set of results. My question is firstly, on the current situation in the Northern market for the fly ash because due to the continued high capex is going in for the FY27 and '28 into the Northern market, how will you see the fly ash availability in the North? Is it the sufficient fly ash available because we are factoring there is no major new power plant coming. So how is fly ash situation especially into North?

Raghav I didn’t understand what you are saying. You are asking this that how much fly ash is available and fly ash will be constant? You are asking this sir?

Yes, sir.

Your assumption is that fly ash is the only cem entitious material which we can use which is wrong. There are various other cementitious ma terial, which can go into PPC. And we are keeping on counting for all such alternatives. Just because thermal capacity is not coming that’s why fly ash will not come, for this reason fly ash will become constant they are totally different.

Got it, sir. So what kind of other materials we use generally, other than the fly ash for the PPC?

Hear me out come in Kolkata we will sit and talk and then make you understand.

Thank you. Our next question comes from the line of Rajesh Ravi from HDFC Securities. Please go ahead.

Yes. Just a follow-up question, sir, on the op erating numbers, while most of them are already answered. What was the lead distance that you mentioned in Q4?

I think it was 459 kilometers.

455 kilometers, okay?

457 kilome ters sorry.

Okay. And this you're looking to go back to 440 in subsequent quarters?

Yes not only 440 and even lower.

Yes. And sir, lastly, on the cement price hike across AUM operating market, this INR150 to INR200 cost inflation that you have seen for Q1, are they fully covered in the price increases which you have taken in the month of April?

No, it’s not like that. Please understand a bit. Till now what the price increase has been done that is anticipated cost increase up to June. Did you understand it? But cost is dynamic and pricing situation is dynamic and demand is also dynamic and demand affects pricing. So that is not much. In today’s date yes we are generally covered. If adverse movement will happen we will tell you in the next quarter. We don’t proclaim.

Correct. And sir, given the steel prices have also shot up significantly and there are across the board inflationary impact on construction materials and there have been disruption even on labour availability. Have you seen demand disappointing in the month of April and May so far?

Till 15th April everything was a ll right. After that little slowdown has come. Now let’s see now it’s only 6th May what you are talking.

Agree. Great, sir. That’s all from my end. Thank you.

Navin are we through or you have some questions.

Thank you. Our next qu estion comes from the line of Navi n Sahadeo from ICICI Securities. Please go ahead.

Yes. Just last few people are there for the questi ons. Sir, just two questions from my side. So in the initial comments or maybe to the answer of one of the questi ons, Akhoury ji said that the incentives for Meghalaya, though we are working with the state, but nothing is promised as yet. So is this a new policy or any change in policy for the state. Just help me understand this.

Navin we ask for incentive from people having plenty of money. There is no other money holder than state. So we have to always request to give incentive, this much cost is there, this much adverse conditions is there, all that. They have their own internal procedure, they have their industrial policy and they talk in investment committee. In that way we have processed the things beforehand. Till now we haven’t received any resp onse. If it will come we will let you know that this much incentive we will get.

Understood. Sir, my second question was about the North region. I think some time back, Bangur Ji in a TV interview had said that they might lose some market share in the North region because of the upcoming capacity, but this quarter, our volume growth has been definitely much better than the previous quarters. And also the strategy is very consciously towards focusing on volumes now that we have achieved.

There is a mistake. If you will say this, then this is a mistake. No, I said that we sacrificed volumes to reach a price point. And once we reach that price point and it became acceptable to all, we sold as much as we could sell. So we are not chasing volume. Before we were not chasing volume because we have to increase our price point. Now price point has come at a level and I felt that this is the correct price point then how much demand is there let sell easily. This is not much of a problem. So it is not that we are reinventing the equation value over volume to volume over value. Profitability is our main concern. We'll remain focused on profitability. How it will happe n and how it will happen the time will only say. We are not much intelligent that we can tell you that much. As Mr. Bangur has said it is possible that competition pressure might rise, but in today’s date everything is in cost pressure, what cumulative effect will come how will I tell.

Fair point.

Navin are we through. It is already 1 hour.

Yes, we are through, sir. We can conclude. Danish, can you please go ahead and conclude please.

Thank you. That was the last question for today. I now hand the conference over to the management for the closing remarks. Thank you, and over to you, team.

Thank you, everybody. Thanks for the call and thank you for participating. We rest assured that despite all the numbers that we have shared and thank you for wishing us well on this 11% volume growth. Many things will continue to unfold in Shree Cement. We will continue to sharpen our approach and focus on cost. We'll also continue to work on our premium products. As you have seen, we have now crossed 22% up by about 40% from 15% to 22%.

There is an increase in the sale in last 2 years from 9% to 22%.

Oh 9% to 22%. So we are doing everything possible on using all the levers, be it on the cost or be it on the revenue side to better performance in the coming quarters. Whatever is the macroeconomic conditions, we will be impacted. But within those conditions, Shree will do its best to continue to deliver some superior results. Thank you, everybody and have a very good evening. Bye-bye.

Thank you so much, sir. Ladies and gentlemen, on behalf of ICICI Securities Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.

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