Earnings Call Transcript - XNSE:CLSEL 2026-11-13

Operator

Ladies and gentlemen, on behalf of Captify Consulting Investor Relations team, I welcome you all to the Q2 and H1 FY27 post earnings conference calls of Chamanlal City Exports Limited. Today on the call from the management, we have with us Mr. Rajiv Satya, Joint Managing Director and CFO. As a disclaimer, I would like to inform all of you that this call may contain forward-looking statements which may involve risk and uncertainties. Also, this is a reminder that this call is being recorded. I would now request the management to detail us about the business and performance highlights for the quarter and half year ended September 2026, their growth, perspective, and vision for the coming years, post which we will open the floor for Q&A. Over to you, Rajiv, sir.

Rajiv Setia, CFO

Good afternoon, everybody. I welcome all of you to spare your time and attend the meeting. And I'm really pleased. I'm very excited that it is historically the best quarter ever with the PBT of around 75 ground. So it's amazing, you know, the team worked so hard and the wisdom of the company helped, you know, a lot, experience and that all. Hello, sir.

Vinay, Other

So would you like to throw some light on what happened in this quarter, but

Rajiv Setia, CFO

I cannot see my face here. Yeah, it's like that. Better it is. Hello. So as regard export is concerned, it is growing gradually. And day before Sankesh went to USA, and there is an exhibition private label in Chicago. He has attended in the past, and he told me yesterday that, Dad, I am coming across two, three companies, those who are into this, what you call it, trade, I mean, different, I mean, one company, chains-like, you know. Costco and this kind of metro, these kind of chains they are approaching and they have one requirement. They say the plastic pouch is no longer workable or it may be banned any day. So go for something which is eco-friendly and the business will increase a lot. This is what has been assured by one of my Austrian agents also. I was in Paris. In Seattle, I was told the future, yes, he says right now, whatever is going is fine, but plan for something which is eco-friendly. Let's hope the business increases on that side also. And recently, you know, the rupee has become stronger. It was 93 something. Today it is 94. I checked out data through AI about my company and future USD. Though it is 94 today, they have returned. For December, it will be average expected during 96. And January also 96 and February also 96 exchange rate UK. They have returned 96, whereas Bank of America says it is 98. So, I mean, if the rupee became weaker, there will be considerable increase in the profits. And the other part is right now the prices are very high for paddy and rice. And I mean, we are buying relatively slow as compared to last year, because last year the prices were very low in this time. I mean, we are buying according to the sales where we can really earn and continuity with the customers maintain. That is very important. Even if we have to sell at break-even or limited profit, we will go ahead because the customer is most important. And but still, you see the customers giving good money, no issue, normal profitability is coming, not windfall gains at this moment. And I also, this study which I got from AI, and they say, if the, the, the, The main point is that if the import is there, or if the supply is higher from Indian side and import is there, then it will be okay. But if there is import is less, actually import is never less, import will continue. But what the buyers do to get the better prices, they hold buying. And when they hold mine for a month, month and a half, or two months, they wait, or they buy little quantities instead of going forward for their own annual requirement, then when they slow, the prices come down here in India. That is the right time for us to cover the stocks. So, this is what we did last year, and that helped us.

Vivek Singh, Analyst — Raise Securities

Thank you.

Rajiv Setia, CFO

Any, I think I have explained two sides different. Otherwise, you may have read all the data from the management commentary.

Operator

Thank you, sir, for the opening remarks. All those who wish to ask a question may use the option of reason. In case you are unable to reason, just drop a message on a Q&A box. Just drop your question in a Q&A box. Sir, we'll take the first question from Yesh Tintewadia. Yesh, you can go ahead, please.

Yesh Tintewadia, Analyst

Yeah, hi. Congratulations on a great set of numbers. I hope I'm audible. Yes, you are absolutely clear, audible. Perfect, sir. Sir, I just wanted to understand the current situation of exports in Iran. Do we have any exposure? And if we have any exposure, is the shipping become convenient now or are we still looking at the shipping to ease?

Rajiv Setia, CFO

At the outset, I would say we are not exporting to Iran for the last 25 years. We stopped about 24 years back. Not even through Dubai, sir? Not even through Dubai. In the past, it was through Dubai. We were selling to the Dubai people, and they were making us the payment, and they were exporting through small ships. Through that, they were exporting.

Vinay, Other

I'm talking of 20 years back, 25 years back.

Rajiv Setia, CFO

But thereafter, Iran started buying directly. Then INR system was also in place through Yuko Bank. Export was happening. I did some export, two, three shipments. Thereafter, I stopped. And right now, those who are exporting to Iran, they have huge exposures, huge exposures. Right. It doesn't mean 2, 3, 5, 10 crore. It's above 100 crore, everyone. Maybe 500, 300. These kind of figures are there. They ship, they get money. They ship, they get money. This is not a business. I avoid. If Irani comes to me, I tell them, send me 100% money. I will ship, that's all. As regard, Iran is concerned. Rest in the Middle East, we are selling in Dubai. Nesto is a very big chain with 151 these shops or what you call it, you know.

Yesh Tintewadia, Analyst

Retail outlets, yeah.

Rajiv Setia, CFO

Retail are very big. They're not retail. They are all at least 1,000, 2,000 meter bigger. You know, they are very big. Right. So our entire, they are entirely buying from us and Pakistan, of course, 102 brand from there.

Yesh Tintewadia, Analyst

Sir, my second question is regarding Basmati realizations, export realizations. I think in the last one month, we've seen prices move up higher by another 5-6%, especially in the 1-1, 2-1 grade. Can you just throw some light on how realizations will move from here onwards into this particular quarter?

Rajiv Setia, CFO

Yeah, first thing I will tell you, the last year prices. We, on Diwali, we, in the worship, you know, we write the rates also. Rate not only for rice, rate for gold, rate for silver, rate for pure ghee also, because our historical business was ghee after the partition. And then rice also. You will be amazed to know the rice price was 1509 variety in the selah per boiled form, 55 to 57 rupees a kg. And the stream form, it was $61.62. And in $17.18 and $1.121, price was $64 to $66. This is what we have written. And that was, I think, 21st October, Diwali, if I recall. And the prices of all these things are now, the 55, 57 is 85 today. Sela, cream color, white color, Sela, 1509. And other variety, you know, this 1718. And 1121, they are more or less similar, you know, and they have hardly much difference in prices. That one is above 100 in steam form, and in parval form, it is 9192. Right, right.

Yesh Tintewadia, Analyst

And considerable difference. Right. So key on Q, I think this particular quarter, your realization as per your PPT was 105 rupees. So this current ongoing quarter, can we see the realizations move to 110, 112 rupees?

Rajiv Setia, CFO

Anything is possible because there is one thing many countries we have heard, they are building up the stocks there. But maybe, and this was the feeling prior to this end of Mr. Trump, you know, and the scenario is changing very quickly, you know, after this outcome of elections, you know.

Yesh Tintewadia, Analyst

So you are agreeing that the realizations are going to be 110 plus, right? Is that what I should understand from what you just said?

Rajiv Setia, CFO

You see, it's a very strange business, you know. I know whatever the India sells, we will achieve that target of 600, 6.5 million tons. We'll achieve that target this year also, maybe increase also. But what matters is the timing, you know, the buyers, you know, they stop buying, they hold their buying. When they hold their buying, the prices come down. So, as an exporter, it is an advantage situation to me, and as a farmer and a small miller is concerned, they are into traps, you know, if they have stock. So, let's see, it's a business, sometimes a farmer is making good money because of the good prices. Right. And yeah, this is a very strange thing, you know. I cannot comment. Yes, we have advantage of 95 countries, 96. We are all around with multiple customers in every country. If one part stops, other starts. So.

Yesh Tintewadia, Analyst

Understood. I'll just come back in queue. I have a few more questions, but I'll come back in queue, sir.

Rajiv Setia, CFO

Yeah, because there are so many people to hear.

Yesh Tintewadia, Analyst

Of course.

Rajiv Setia, CFO

Yeah.

Yesh Tintewadia, Analyst

Yeah.

Rajiv Setia, CFO

Thank you.

Operator

Thank you, yes. Sir, we'll take the next question from Manish. Manish, you can go ahead, please.

Manish Kela, Analyst — Swastik Investments

Yeah, thank you for your opportunity. Congratulations, sir, on the good set of numbers. So, my question is, our sales was not that high this quarter. So, did we see any shipping-related disruptions on account of the Middle East war?

Rajiv Setia, CFO

And this has been a catastrophic situation, this war. You know, the ocean freight for Middle East Dubai was $200 to $250 a container, which is now $5,500 a container, even $6,000. And sometimes they charge from the buyer also, their side. And the same way in the Saudis, same way Oman, same way Bahrain, all these countries where USA hit. And Iran, I don't speak about Iran. Those who were selling, they are selling. I don't know. And Iraq is okay. They are also buying, paying. It's not a big problem. But ocean freaks are high that are being absorbed also by the customer because it's a food, it's a compulsive and essential product. What can they do? And for our own safety, I'll share with you, we sell only on FOB basis. And we ship on CIF basis. Then we revise our contract. And it is all written in the quotation that whatever will be the ocean freight. High or low will be added in FOB value to ship because we want to ship CIF. We have to secure ourselves for any eventuality, you know, without insurance, we don't export. So we have no choice. We have to opt CIF and we charge at the complete same ocean freight, which we pay means it goes to the buyers, you know, cost. Hello?

Manish Kela, Analyst — Swastik Investments

Yeah, I understand, sir, the response that you gave. But again, the question is, did we see any, what do you say, sales volume getting impacted this quarter, and which will probably spill over to Q3? So that was my question, essentially.

Rajiv Setia, CFO

No, no, three. I mean, it's the right time people buy also, most of the people, because the price is high. There is a possibility they can defer their buying, but that will be there. Maybe in the last month of the quarter, second month, because whenever something goes high, it is natural. It's psychology. We don't buy. We wait that maybe the price has come down.

Manish Kela, Analyst — Swastik Investments

Got it. And sir, what is the impact of El Nino? I mean, do we see any impact of it in terms of reduced volumes of basmati rice as far as production was concerned?

Rajiv Setia, CFO

So, in this particular year, area under cultivation has come down 1%, 2%, maximum 4% in some of the states. I think Haryana, it is 4%. Other states, it is around 1% only. 1% could be a big one. But in this year, you know, the yield is better. For example, in a field, if it was 20 quintal, it is 25, 24 quintal now. So that way, the crop size is good, and the quality of the crop is very good. Because the rain happened later. It happened prior to harvesting, it happened.

Manish Kela, Analyst — Swastik Investments

And sir, my final question is, like on the previous calls, when the basmati prices are high, that is the time wherein the margins are kind of really good because buyers... I want to buy more and more quantity before the prices keep running further. So, is that the same stance that we are seeing this time around? I am asking this question, because the geopritical situation is happening.

Rajiv Setia, CFO

Normally, what happens when the crop comes, the prices are lower. Even if you buy vegetables, when the season comes, it is cheaper and thereafter they are higher. So, with the same format, you know, the prices of paddy usually are low, but in this year, they were low for just a week or so, and thereafter started rising.

Guneet Singh, Analyst — Counter-Cyclical PMS

The paddy prices are high, the rice prices are high.

Rajiv Setia, CFO

Either the customer will have to bear that cost, okay, or if he can't, he will have to hold his, I mean, buying. This is what our personal feeling is. When the prices are high, many customers are holding. They say the ocean freight is high. And the price is high. Both sides are high. It is a completely natural thing for the buyer. But still, it's going on. Demand is also there in some parts. They're regularly exporting. Some people, those who can sell in retail at a 30-40% profitability, who cares over there?

Guneet Singh, Analyst — Counter-Cyclical PMS

They are buying.

Rajiv Setia, CFO

Branded by brands. This business is happening.

Manish Kela, Analyst — Swastik Investments

And sir, our inventory levels this year in the September quarter are comparatively lesser than September quarter last year. So also because the prices of the new crop are going to be higher, do we see any impact of margins in Q3?

Rajiv Setia, CFO

Let's see what happens, which way the wind blows, you know. Thank you, sir.

Manish Kela, Analyst — Swastik Investments

Thank you, and best of luck.

Rajiv Setia, CFO

Thank you.

Operator

Thank you, Manish. Sir, we'll leave the next question from Vivek Singh. Vivek, you can go ahead, please.

Vivek Singh, Analyst — Raise Securities

Happy birthday.

Operator

Hello, sir. Hello. Vivek, your voice is not audible proper. One minute, sir.

Vivek Singh, Analyst — Raise Securities

Hello, sir.

Soham, Analyst — Prosperity AMC

Yes, yes.

Vivek Singh, Analyst — Raise Securities

Sir, I just want to ask, what are the reasons for such a high petty prices?

Rajiv Setia, CFO

Petty rates, your question?

Vivek Singh, Analyst — Raise Securities

Yes, sir. What are the reasons for such high petty prices? When you are saying that this time yields are good, then it should be lower.

Rajiv Setia, CFO

And ideally, when the new crop comes, it is lower. But in this particular, they are higher. And the demand is coming from Iran. The people who are exporting to Iran, they have booked the vessel. And in the vessel, they are selling 5,000, 10,000 on one party for one shipment. And then they are grabbing, you know, this period will be over shortly. Men will see.

Vivek Singh, Analyst — Raise Securities

Okay, sir. You want to say that due to Iran demand?

Rajiv Setia, CFO

Yes. Yes. Yes. Yes. Too much. Too much shipments happening.

Vivek Singh, Analyst — Raise Securities

Okay, sir. Okay. Okay, sir. Thank you.

Rajiv Setia, CFO

Yeah.

Operator

Sir, we'll take the next question from chat. This question was asked by Gunit Singh. Sir, can you quantify inventory gains in Q2?

Rajiv Setia, CFO

Can I repeat your question?

Operator

Can you quantify inventory gains in Q2?

Rajiv Setia, CFO

Inventory gains, because we, I think in the past meetings also, I told we had a very good procurement and very high procurement in 25, when the prices were low and we had the stocks and that is one of the reasons for good profitability.

Operator

Okay, and another question is gains due to rupee depreciation.

Rajiv Setia, CFO

Yeah, they are also part of the business. This year it went up to 96 plus.

Vinay, Other

Guneet has raised his hand, let him continue.

Guneet Singh, Analyst — Counter-Cyclical PMS

Thank you, sir, for this opportunity. So, what were the procurement costs for our inventory, which we are selling in Q2? And how do they compare to, I mean, the expected procurement costs in the current season?

Rajiv Setia, CFO

I have almost repeatedly explained this question. As I said, last year, we built up huge stocks. And they were at lower prices and off late at higher prices also when the prices went up. So, I mean, something you buy cheap and sell at the peak level prices, definitely the profitability has to be there. And now the next period depends, you know. We don't say we will be earning the same way in the same ratios. I don't feel it is likely. I have to be very transparent, what I am telling you. I will repeat it. Suddenly, the prices have gone up because the Iran buying is going on. And the people who have their outstanding in the Iran, they are shipping because if they will ship, they will get earlier money. This is, and very fast money is also coming, and the shipments are happening. Those who are doing, it is their game, and I mean, let them go the way they are doing, and God bless them. They do good business. And but we don't do Iran business. And this is the reason the prices are high here. Let's see how long Iran buys, how long these people can sell, how much money they can involve. Cash flow, they have to see, they have to ship for other areas also. So, when this situation will come down, let's see in December end. Prices come down. December, November, December start.

Guneet Singh, Analyst — Counter-Cyclical PMS

So you're saying that Iran is buying broken rice? Is that what you're saying? No, no. What did you say? Broken rice? Is Iran buying finished rice? Finished rice. They're buying finished rice. They're buying quality rice on this. So what are the normalized, I mean, normally what are the export realizations? Currently it's 105 per kg. But in the normal cycle, generally, what are the realizations, and how are they trending currently? I mean, I would understand, is this an extraordinarily high realization that we are witnessing right now?

Rajiv Setia, CFO

Look, it will answer others' question also, if it has in somebody's mind. The prices in this particular year for paddy as well as rice are high, one thing, okay? So, obviously, if they are high, it is well known to the world around the prices in WhatsApp prices go in seconds, you know, and they have to buy. Either they can hold their buying for 15-20 days, one month, but they have to buy. They cannot stop their business or empty their gardens. They have to buy. The reasonable profit, which comes 8 to 10%, we get on our sales. That we deserve. So, rest depends upon if the demand stops, the supply is here, the prices. If the prices come down, if the dollar became bonus again, 96, 97, then that is going to be again kind of a bin for gain. These are all, I mean, our imaginations for the future possibility.

Guneet Singh, Analyst — Counter-Cyclical PMS

Good. And in this quarter, we saw a fall in our volumes year on year.

Rajiv Setia, CFO

So, volumes were low, but this revenue price is high, you know.

Guneet Singh, Analyst — Counter-Cyclical PMS

So, I mean, I just want to understand, like going forward, do we expect some growth in volumes? Do we expect to gain back the volumes or is it that volumes have moved from this quarter to the next quarter because of delays and shipments? If you can help us understand this. And I just want to understand, I mean, what kind of steady state margins can we expect in the coming quarters or in the coming years?

Rajiv Setia, CFO

You see, this transit period is high these days because of the war. We feel in another fortnight they will be normal or start becoming normal, you know. If there is no war, nothing happening on Dubai or all these countries, we don't know about Saudi and Houthis, they will keep on fighting or not, we are not sure about that. But business is happening. Israel business has never stopped despite this war. We have been regularly and very high quantities shipping. Now, these shipping lines are, to some extent, exploiting the situation also to get more money, you know.

Guneet Singh, Analyst — Counter-Cyclical PMS

What can we do?

Rajiv Setia, CFO

If the supply line also has to be there, that is part of the... Say, I mean, if something goes in 30 days, if it reaches in 40 or 50 or 60 days, obviously, supply line becomes slow. We are requesting our customer, if you are buying one container, go for two. If you are buying two, go for five, because you have to have a stock with you, and that way our sale also maintains, truly speaking.

Guneet Singh, Analyst — Counter-Cyclical PMS

Got it. And sir, in terms of sustainability of margins, I mean, is it fair to assume that margins are a bit on the higher side and should normalize going forward and the reasons can be because of lower procurement costs and also this rupee depreciation? So, I mean, is it fair to assume that margins are on the higher side and should normalize to lower levels going forward?

Rajiv Setia, CFO

You see, what, as a company, in our own meetings, what we are thinking, and it's a very million-dollar question, you know, which we raise to us also. Entire, the paddy prices are high, rice prices are high. Whether the industry, entire industry of basmati rice... Can sell at a higher price, entire production of 7 million ton? Can the industry sell at the higher price? And when I question this to anyone, he says, no, it's not possible. So, there is a possibility the prices may come down, the buyer will be happy, will earn also, and when the prices are low, we

Vinay, Other

have relatively a better margin for our procurements.

Rajiv Setia, CFO

We have slowed down our procurement, really speaking. We are buying if we can sell at a margin.

Guneet Singh, Analyst — Counter-Cyclical PMS

Good morning, sir. Thank you very much. I'll join back to you.

Operator

Thank you, Guneet. Sir, we'll take the next question from Soham. Soham, you can go ahead.

Soham, Analyst — Prosperity AMC

Yeah, am I audible?

Rajiv Setia, CFO

Yes, you are.

Soham, Analyst — Prosperity AMC

Actually, sir, the company is sitting on a sustainable cash reserve of 500 crores. So what is the management strategy for deploying this capital?

Rajiv Setia, CFO

First thing first, our own industry business is such that sometimes suddenly we require a lot of funds. So, but your question is absolutely right. 500 crore is a big amount. We have not truly right now thought of diversification or any new kind of business because we have no experience. Wherever any businessman doesn't have much experience or have not, from the ground he started that business, it's very difficult to earn in this tough time. And yes, our aim is to start a business, this marketing in India. We are trying it for five, six months in the past. But suddenly the export business comes and that is more lucrative, that's more profitable. We move our direction there. And we'll be needing good enough fund to market in India. So that is the idea, you know.

Soham, Analyst — Prosperity AMC

Okay, sir. And are there any concrete plans to expand the existing business or increase the manufacturing capacity or entering into new geographies?

Rajiv Setia, CFO

Yeah, we already have a very huge capacity, but as and when demand, I mean, we keep on evolving, you know, we cannot go ahead with the old machinery. We are removing, we are putting up the new plants and automation, which is more automatic, you know. For the movement of the grains, for the movement, even the packings and all that, and lower relying on the labor. So these things, we are, capex is going on on these things, you know.

Soham, Analyst — Prosperity AMC

Okay, and are we expanding our product portfolio or moving into some value-added products?

Rajiv Setia, CFO

If you come across anything good, we'll definitely go well.

Soham, Analyst — Prosperity AMC

Okay, sir. Thank you so much. That's it from my side.

Operator

Thank you, sir. Sir, we'll take the next question from Pawan Kumar. Pawan, you can go ahead.

Pawan Kumar, Analyst — Adelweiss Public Alternatives

Sir, I just want to understand in terms of tons, what would be the inventory that would be outstanding with us right now? Secondly, in terms of procurement, how much have the prices risen this season? I think the season peaks in December, right, for the procurement. Correct me if I'm wrong.

Rajiv Setia, CFO

Your question is...

Pawan Kumar, Analyst — Adelweiss Public Alternatives

Inventory, how much is outstanding in tons right now? Around. Even if you want to send...

Rajiv Setia, CFO

Vena, can you tell, look at what is the inventory at the end of September? Quantity. Absolutely.

Vinay, Other

Pavan, we can check this and come back to you.

Pawan Kumar, Analyst — Adelweiss Public Alternatives

Sure, sure. And, sir, when does the major procurement season happen for next year? And do you think we have enough paddy to sell for the next two, three quarters?

Rajiv Setia, CFO

Yes, we are regularly buying paddy. Paddy we are regularly buying, you see, from wherever we get a reasonable price, and we know after the production, this is what is our cost, and this is what is the market price, and this is what we can sell. That part is going on. And you see the production, you see, we have to see if there is the least brokens, you know. We are very careful on every part. If there is low brokens, this gain is higher. And my brother, you know, Vijay Satya is kind of a scientist. He has made the system of… Not to lose heat anywhere, recycling of water, this, that, is doing so many things, even I don't know. But that saves the cost.

Vinay, Other

That saves the cost.

Rajiv Setia, CFO

Now, how to save the cost? For last six months or a year, I'm making the payment to shipping lines in USD, dollar, instead of rupee. For example, if they give me an invoice in rupees, and let's assume it is $2,000, the rate as on the date banking is, let's say, 95. They will charge me 97. 98, 3 rupees means in 1,000 is 3,000 rupees. I mean, we're saving from all directions, you know. And I have reached a stage that almost all the shipping lines are taking ocean freight in U.S.T. From me. And that is kind of a saving, production saving. And this is how we have to work. And we know our production quality is so good. We have premium on our qualities. And we know how to cut the cost.

Pawan Kumar, Analyst — Adelweiss Public Alternatives

Sir, last year to this year, procurement cost, how much would it have increased?

Rajiv Setia, CFO

I told the rice prices, I think the first caller, I told that last year the prices of some 1509 variety, which was 55, 56 rupees a kg, is 85, 84, 85 today. Yeah, and you can, and the same way, I mean, 30, 40 rupees a kg, you know, increase. It's considerable, you know.

Pawan Kumar, Analyst — Adelweiss Public Alternatives

Okay. Got it, got it. But that also means going forward, actually, the prices would be much higher, right? If your procurement prices have gone up by around 60%, that is what you are almost saying.

Rajiv Setia, CFO

No, not 60%. I'm giving a comparison of last year prices and after one year prices. Correct, sir.

Pawan Kumar, Analyst — Adelweiss Public Alternatives

I am saying if the prices have gone up from 50 to 80, for us to make a decent amount of gross margin, the prices will have to go up from here also, right?

Rajiv Setia, CFO

Yes, obviously, either the prices have to go up or our cost is less, our production cost is less. Second, we make the payment in dollars, we save on the currency, and if the rupee becomes weaker, the way these agencies have told, I also repeat it. So, let's see what happens.

Pawan Kumar, Analyst — Adelweiss Public Alternatives

God, God. Thank you, sir. I'll take.

Operator

Thanks, Pawan. Sir, we'll take the next follow-up question from Manish Kela. Manish, you can go ahead.

Manish Kela, Analyst — Swastik Investments

Update on the Saudi order, which we received last year, I guess not last year, last quarter. So I guess you had highlighted that the customers placed a repeat order, satisfied with that opportunity. And any other new orders?

Rajiv Setia, CFO

Yeah, from 500 ton last year, we have already 200 ton order. We told them we can confirm the quantity with you, but not the price at this moment. You want the low price here, the high price? Sorry, wait for the time. He also says, I was happy with your way of working and all that. Let's see. He is buying 250,000 tons of rice. He is ready to give any quantity to us. But we will not work without earning. We have to have reasonable margin to work.

Operator

Thank you, Anish. Anybody wishes to ask a question, please use the option of Resend or put your question in the Q&A box.

Vinay, Other

So, we can proceed with your closing comment.

Operator

Sir, since there are no further questions, would you like to give any closing comments?

Rajiv Setia, CFO

You are asking me, Vinay?

Operator

Yes, sir. Sir, we have a question from Buneet.

Guneet Singh, Analyst — Counter-Cyclical PMS

Hi, sir. Thank you for this opportunity again. So we did a share buyback in, I think, a couple of years ago. So we have large cash on hand and the share is currently trading at pretty reasonable valuations. And share buyback is the most efficient form of returning to long term shareholders because earnings per share is permanently increased as number of shares outstanding reduce. So, I would like to understand, would you consider a share buyback going forward given the healthy cash on our sheets?

Rajiv Setia, CFO

Yeah, I do take your suggestion in my mind. But next, Vinay, I'll come to you and discuss everything with you.

Guneet Singh, Analyst — Counter-Cyclical PMS

What you suggest. I'll talk. For it, sir. Thank you very much. I hope you consider this suggestion.

Operator

Since there are no further questions, Rajiv, sir, would you like to give any closing comments?

Rajiv Setia, CFO

Yeah. At the outset, I think again, all the investors or the prospective customers, you know, they came, they spared their time, and they had raised very good questions. Most of them were, and somewhere they bogged my mind also. It was good, you know, it's a very good experience today for me. I learned from them. And I'll definitely, wherever I find any weakness in our working, I'll definitely correct it because the suggestions, couple of the suggestions and questions were very good. Thank you very much. Thank you to all of you.

Operator

Thank you, sir. Thank you to the management team for your valuable time and thank you to all the participants for joining on the call. This brings us to the end of today's conference call. You all may disconnect now. Thank you. Thank you.