Oriental Aromatics Limited (OAL) Q1 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to Oriental Aromatics Limited Q1527 earnings conference call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing start and zero on your touch-tone phone. Please note that this conference has been recorded. I now hand the conference over to Ms. Purvangi Jain from Valoram Advisors. Thank you and over to you, ma'am.

Thank you. Good afternoon, everyone, and a very warm welcome to you all. My name is Prarangi Jan from Ballroom Advisors. We represent the investor relations of Oriental Aromatics Limited. On behalf of the company, I would like to thank you all for participating in the company's earnings conference call for the first quarter of the financial year, 2027. Before we begin, let me mention a short cautionary statement. Some of the statements made in today's earnings call may be forward-looking in nature. Such forward-looking statements are subject to risk and uncertainties, which could cause actual results to differ from those anticipated. Such statements are based on management's beliefs as well as assumptions made by and information currently available to the management. Audiences are cautioned not to place any undue reliance on these forward-looking statements in making any investment decision. The purpose of today's earnings call is purely to educate and bring awareness about the company's fundamental business and financial quarter under review. Now, let me introduce you to the management participating with us in today's earnings call and hand it over to them for their opening remarks. We have with us Mr. Dharmal Budhani, Chairman and Managing Director, Mrs. Shamal Budhani, Executive Director, Mr. Parag Satoskar, Chief Executive Officer, Mr. Girish Khandelwal, Chief Financial Officer, and Ms. Kiran Preetfield, Company Secretary and Compliance Officer. Without any further delay, I request Mr. Dharmil Budhani to start with his opening remarks. Thank you and move with you, sir.

Thank you, Burwangi. Good afternoon, everybody. It is a pleasure to welcome you all to the quarterly earning call of Oriental Aromatics Limited. Quarter one represents a positive start to The financial year for the company. Our performance during the quarter reflects healthy year-on-year growth in revenue and volumes, improved operating efficiencies, and a sequential recovery in profitability. While the external environment continues to remain challenging and input costs remain elevated, the direction of our performance is encouraging. Our diversified presence across flavors, fragrances, speciality aroma ingredients, And camphor and terpene chemicals continues to provide resilience across market cycles. Our executive director, Mr. Shamal Bodani, will now take you through the operational performance and key developments during the... Our CFO, Mr. Girish Khandrelwal, will greet you on the financial highlights. Over to you, Shamil. Thank you.

Thank you, Dharmul. Good afternoon, everyone. Q1 FY27 has been an encouraging start to the financial year, with healthy year-on-year growth in revenue, productions, and sales volume, accompanied by sequential improvement in operating margins. Our consolidated revenue from operations for the quarter stood at approximately 260 crores, compared with approximately 226 crores in the corresponding quarter last year, representing growth of around 15% year-on-year. More importantly, this growth was supported by a strong increase in physical volumes, Total sales volume increased by 22% year-on-year, while production volumes grew by 18% year-on-year, reflecting healthy manufacturing utilization, improved operational execution, and sustained demand across our key products categories. On a sequential basis, product volumes remain broadly stable. This was primarily attributed to the changes in product mix and the normal quarterly seasonal movement across our three businesses. Our EBITDA margins for the quarter stood at 7.62%, representing an improvement of 71 basis point, sequentially from 6.89% in Q4 FY26. This improvement was supported by a favorable product mix. Improved sales realizations and the benefit of operational efficiency programs undertaken across our manufacturing locations. While EBITDA margins were marginally lower than the corresponding quarter last year, primarily due to higher raw material costs, we believe the sequential improvement reflects the direction in which the business is progressing. Now let me take with you through the performances of our three business. Fragrance and flavors division continues to deliver a resilient performance during the quarter. Demand across our key customer categories remained healthy and we continue to deepen our relationships with existing customers while progressing new business opportunities across both domestic and international markets. Production and sales volumes at Ambarnath were marginally lower year-on-year during the quarter. The primary reason for this was the seasonal nature of business and should not be viewed as a change in the underlining direction of the division. Pipeline remains healthy, and we continue to focus on expanding customer relationships, increasing wallet share, and converting development projects into sustainable commercial businesses. Our specialty aroma ingredients business delivered healthy year-on-year growth in both productions and sales volume during the quarter. However, the broader global market for ingredients continues to remain highly competitive. Capacity additions, particularly across Asia, continue to exert pressure on selling prices for several products. The industry remains a buyer's market across many ingredients categories, with customers continuing to expect competitive pricing, together with high quality, innovation, and security of supply. At the same time, several natural and petrochemical-derived raw materials continue to remain elevated, creating an environment where import costs remain firm, while finished product pricing continues to be competitive. Our response continues to be disciplined and structural. We continue to focus on process re-engineering. Yield improvement, energy optimization, internalization of intermediaries, and greater utilization of our multi-chemistry manufacturing platforms. These initiatives are intended to improve our cost position independent of any future recovery in the pricing cycle. We also remain selective in the business that we pursue. Our objective continues to be protecting market share and customer relationships while maintaining an appropriate contribution margin. The strength of our business lies not merely in individual molecules, but in the breadth of our portfolio, our chemistry capabilities, our integrated quality and regulatory systems, and our long-standing relationships with leading global fragrance companies. The camphor and terpene chemicals division recorded strong year-on-year volume growth during this quarter. Q1 normally marks the beginning of inventory build-up ahead of the festive demand period in Q2 and Q3, and the volume performance during the quarter provides a constructive foundation as we enter the stronger seasonal period. Nevertheless, the domestic camphor market continues to face structural overcapacity arising from significant manufacturing capacity additions over recent years. Our focus, therefore, remains on those areas where oriental aromatics possesses clear competitive advantages. Consistent quality. Regulatory compliances, pharmaceutical-grade camphor, strategic B2B relationships, and the continued strength of our Saraswati and Three Pine consumer brands. Mahat Facility. The Mahat Facility continues to progress through the commercialization and customer qualification phase. We have consistently... As explained in our previous investor interactions, specialty aroma ingredients follow a longer commercialization cycle involving technical validation, customer qualification, and commercial allocation before regular business commences. Customer feedback continues to remain encouraging, commercial shipments are progressing, and the facility is now participating in several global sourcing programs and RFQs, which should support a gradual build-up in commercial volumes. At the same time, we continue to maintain a realistic perspective. Mahad has not yet achieved the utilization levels required to fully absorb its... Operating cost and therefore continue to impact consolidated profitability. Our objective remains to progressively move the facility towards 75 to 80% utilization, where we believe Mahad will become EBITDA positive and begin contributing meaningfully to consolidated profitability. Mahat remains a strategic long-term investment. The infrastructure has been created not only for current product portfolio, but also for future expansions and additional molecules. We, therefore, continue to evaluate this investment from a long-term strategic perspective. Operating environment. The broader operating environment continues to remain mixed. The long-term trends towards premiumization across personal care, home care, and fine fragrances continue to remain intact. We believe this structural trend, when compared with Oriental Aromatics backward integrated business model, presents a significant long-term opportunity for the company. At the same time, customers continue to exercise discipline around Inventories and working capital while security of supply has become increasingly important in an environment characterized by geopolitical uncertainty and supply chain disruptions. Our integrated manufacturing platform, broad raw material sourcing capabilities, and backward integration into specialty aroma ingredients positions us well to participate. These structural opportunities while delivering consistent quality, innovation, and reliability to our customers. Raw material inflation nevertheless remains an area that requires continuous vigilance. Several natural, turpin-based, and petrochemical-derived inputs remain elevated. Wherever commercially feasible, we continue to work with customers to recover these increases. While simultaneously improving our internal cost structure through operational efficiencies. Financial discipline. The improvement in the profitability during quarter one is encouraging, but further work remains. Our immediate objective continues to be improving operating margins while preserving volume growth and strengthening customer relationships. The company's net debt... Thank you. Our immediate priority is therefore to maximize utilization and improve profitability from the existing asset before undertaking any major expansionary investments. As we look ahead, quarter two and quarter three continue to be seasonally important quarters for several parts of our business, including camphor and consumer fragrances. The momentum established during quarter one together with our active customer pipeline and improving operational efficiencies provides a constructive foundation for the quarters ahead. However, we remain mindful that the raw material costs, foreign exchange movement, geopolitical developments, and competitive pricing continue to influence the operating environment. Our priorities therefore remain unchanged. Sustain volume growth while strengthening market share across all three businesses. Continue improving margins through product mix, process optimization, and disciplined cost management. Accelerate customer approvals and commercial allocations for Mahad. Maintain prudent capital allocation and maximize return from our existing manufacturing assets. Continue investing selectively in R&D, fragrance creation, application and new product development to strengthen our long-term competitive position. To summarize, Q1 FY27 represents a positive start to the year. We have delivered healthy year-on-year growth in revenue, production and sales volume, improved profitability sequentially and strengthened our operational performance. While remaining disciplined in navigating a challenging external environment. The direction of travel is encouraging. Our focus now is to convert this operational momentum into sustained improvement from profitability, capital efficiency, and long-term shareholder value through discipline execution over the coming quarters. Thank you. I will now hand over to our CFO, Mr. Girish Khandelwar. For the financial highlights. Over to you, Girish.

Thank you, Shamal. Good afternoon, everyone, and let me begin by sharing our consolidated financial performance for Q1 FY27. During the quarter, the company reported operating revenue of Rs. 260 crore, representing a healthy 15% year-on-year growth. Reflecting sustained demand across key products categories. On a sequential basis, revenue declined by 8% primarily due to the changes in product mix. Libita for the quarter is to date 19.8 crore compared with 19.46 crore in the previous quarter and 18.06 crore in the corresponding quarter of previous year. EBITDA margins improved to 7.62% from 6.89% in the previous quarter, supported by improved operating efficiencies, compared with 8.01% in Q1 FI26, the margin was marginally lower, primarily due to higher raw material costs during the quarter. Profit after tax stood at 2.51 crore, compared with previous quarter 3.98 crore and 0.5 crore in the corresponding quarter. The company continued to maintain a student capital structure with the net debt to equity ratio improving to 0.56x as of June 30, 2026 compared with 0.58x as of 31 March 2026. Cash profit for the quarter stood at 10.2 crore. Compared with 8.72 crore in the corresponding quarter of the previous year and 11.72 crore in the previous quarter. With this, we can now open the floor for question and answer session. Thank you.

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant. Ladies and gentlemen, we'll wait for a moment while the questions are assembled. The first question is from the line of Rohit Sinha from Sanity Securities. Please go ahead.

Yeah, thank you for taking my question, sir. So, my first question is in terms of the utilization level and our peak potential regarding the revenue side. So, what is the current utilization right now for the overall business and for the Mahat plant? And with the peak utilization level of all these plants, what sort of revenue number we will be looking at, and possibly by when that should be achievable.

I think the Mahad plant currently we are looking at a capacity utilization of between 50 to 60 percent. If you look at the specialty aroma ingredients division and the camphor and the terpene chemicals plant, except the hydrogenation facility, most of the other plants are at between 85 to 90 percent. The fragrance compounding facility, we have substantial additional ability to increase production. So, you know, in terms of capacity utilization, the Mahat facility is something where we feel that in the next few quarters, we will have a better utilization of the Mahat facility.

And with this full utilization, what sort of number we'll be looking, because 1,000 crore is something which we had done last year.

The possibility of revenue addition is there. on projection, you can reach out to Girish, and he probably can share the numbers.

Sure, sir.

Next, sorry to interrupt, Mr. Senna, may we request you to return to the question queue for a follow-up question? Thank you. The next question is from the line of Subhi from Threenetra Asset Managers. Please go ahead.

Hi, sir. So my question is that, you know, we're looking at some favorable products. So if you could just talk a little more about that, how much are the margins and how will that look like? That is my first question. And my second question is about the raw material price pressure. How are we looking at the coming quarters regarding that?

So I think an answer to your margins question is, frankly speaking, looking at the crystal ball because the global geopolitical situation is having an impact on the availability and the pricing of all your inputs. And hence, you know, we probably can only state that we are extremely mindful and we are very watchful of the situation. And we are taking very calibrated steps to ensure that we strike a balance between raw material availability so that all our sales are... So, I think to answer your question on margins, it's something which is very fluid currently. In terms of the impact of the raw materials, I think from a trend perspective, we see that all the alpha-pionine-based raw materials... We'll tend to be expensive because of the sustained increased pricing in alpha-pinene. The petro again remains in a seesaw situation where the prices have been very firm in the last few months and they came down for a month. So to answer your questions, I think in terms of margin, in terms of the impact, it's something which is an ongoing process. And we are watching the situation very, very closely on the raw material side, on the utility side, and also on our sales side.

Thank you.

Thank you. The next question is from the line of Rajesh Mishra from Liberty Security. Please go ahead.

Hello, sir. I'm talking about congratulations on the great state of result. I had two questions. First is, in the last meeting, sir, you told me about the report. Thank you.

So, Mishra ji, we just told you that our meeting is with government representatives where open discussion was about camphor and its imports and its impact. So, after that, there is no development on that subject. And regarding your second question, as a strategy, we do not give category-wise or division-wise break-up, so I would like to answer you that our three categories are, fragrances, specialty aroma ingredients, camphor and terpene chemicals, its contribution is roughly one-third, one-third, one-third.

Okay, sir. Thank you.

Thank you, Mr. Ji.

Okay.

On the line of Maitri Shah from Sapphire Capital, please go ahead.

Yeah, hello. Good afternoon. Am I audible?

Yes.

Yeah, hello. So, this quarter we had close to 22% sales volume increase, while the revenues have been 15%. So, there was a dip in the realization of our products, and I think most of the pressure is coming from increased capacity. So, with this 10-15% revenue growth that you're expecting, what sort of volume growth are we to penciling in for that, and how much do you see the realization going further down?

So, like I said, we find ourselves in a very interesting situation where some part of the volume growth that we saw in the quarter that just went by was the product that our customers had given us as allocation in Q1. And therefore they kind of decided to take them before the stipulated period in which they were going to buy it because of the geopolitical situations. So to answer your question, the gap primarily is driven because there was an increase in the raw material price, there was a hastening in terms of the customers wanting the material early, and hence we see this gap. Going forward, our focus is always going to be to strike a balance and to ensure that we are targeting business where we see volume growth. Where we see also this volume growth at a decent contribution in terms of profit margins. So that's our broad objective. I cannot share with you very specific numbers because these numbers across the three divisions keep changing month on month.

Got it. So far in Q2, have you been able to kind of have conversations with your customers on the pass-through of the price increase that we've taken in on the input side, or still there are contracts we're taking in on a lower realization while taking the hit on the margin from the input side?

Wherever, it's been possible to do a pass-through. I mean, we've been very, very successful, and like we mentioned that we... In the specialty aroma ingredient space and in the camphor space particularly, there have been significant capacity additions in the Asian region, which kind of puts a bit of a challenge in terms of achieving a pass-through. Having said that, I think we have been in a position to kind of mitigate these challenges by giving a step-up pass-through process to our customers. to at least cover the foreign exchange impact as well as any raw material hiking.

Got it, and that was very clear. And then lastly on the tax side, what sort of sector tax are we penciling in for FY27 and then for FY28?

Irish, you want to answer this because it's related to tax?

It's for us is around 25% of it. Because in the parent only takes liability. In the OSN, there is no tax liability.

So it's 25% for the full year, that's what we expect?

Yeah.

Okay, got it. Thank you so much.

Thank you. The next question is from the line of Anisha Dalal from Universal Capital. Please go ahead.

Yes, sir. Am I audible?

Yes, you are, ma'am.

Okay. First of all, congratulations on the performance.

Thank you.

In our last introduction, you mentioned that the industry is currently facing a demand-supply mismatch with significant new camphor manufacturing capacities that have come up in India. This has understandably put pressure on pricing and profitability across the sector. As a shareholder, I would like to give a suggestion that since all the camphor manufacturers are facing the same demand-supply imbalance, why don't the manufacturers come together to work towards as a common cause to the entire industry so that the prices can be corrected?

So, Anisha, I would first like to thank you for giving the suggestion. I think the challenge being that since there is a demand-supply gap because of excess capacity, it becomes very challenging for the existing players to come together and develop a common strategy. Especially when the final product market has a very limited keger. So the expansion that has happened is not linked to the keger capacity of the finished product. And hence, it's going to be pretty challenging for the industry to come together and create a program for coming out of this.

Actually, I'm asking for specifically the manufacturers who are, you know, selling the camper in the raw material prices.

Yes, ma'am, but they, you know, it... Wishful thinking, and, you know, we probably, I do not have an answer, because I can speak for my company, where I can see that there is this demand-supply gap, and everybody is trying to probably get a piece of the pie, which is not growing. So, I don't know how we will come at a strategy.

But we have taken your view, and we will see if there is something Okay.

Thank you.

Thank you. The next question is from the line of Moksha Ranka from ORMH. Please go ahead.

Hello. Sir, I wanted to understand regarding our brand Saraswati and 3Pine. So, roughly speaking, how much their contribution would be to our camper division?

So, like I mentioned in the previous interaction with one of our investor friends, we don't give the breakup of individual subdivisions in our broad divisions. We broadly state the contribution of each of our three verticals.

Okay. Also, could you like provide some color regarding the... Camper pricing as compared to Q1 and maybe last year. And currently, what's the import pricing difference between China? Has it narrowed down?

Essential double-digit. In the price of camphor powder regarding Indian camphor, we do not follow a lot of camphor that is coming from China, so I will not be able to give you a very specific answer about that. I mean, in terms of Indian camphor, there is a very significant growth increase in the price of the sale price.

Okay, and any underlying, like, economic reason behind it, like, because increased demand or maybe the input costs have become cheap. So, any idea, like, any reason why the sudden increase in...

A very specific reason that a large contributor to the cost is a material called alpha-pinene, and the alpha-pinene prices over the past five months... Have gone up by almost.

And this is an imported raw material, right? So it would be in dollar sums. And is there any, like, scenario where we are seeing the prices cooling down or are they, like, firm still?

So, you know, normally we answer two questions, but I'll just probably answer this one. Right now, they continue to stay firm.

Okay, okay. I'll get back into it.

Before we take the next question, we would like to remind participants that you may press star and want to ask a question. The next question is from the line of Rohit Sinha from Sunidi Securities. Please go ahead.

Thank you for the follow-up, sir. One is on the export side. So normally we have around 32-33% kind of export contribution. So what was the contribution in this quarter and how we are looking this figure to be and for the FY27?

30%, I think it's more than 30%.

For the quarter it is 35% and previous financial year it was 33% actually.

We will probably stay in the same range in terms of our export contribution going forward as well. You know, we do not see a substantial change in the proportion of exports versus imports. Exports versus local sales, I am sorry.

Got it. Looking at the overall... I think we have done decent capex in the last four or five years, and probably I think we have completed the cycle, but if we look at the, I mean, the overall contribution or the peak potential where we go from here on, I think with 85-90% kind of utilization for all other plants and Mahat. So, another maybe 60-70 crore would be added from Mahad, and the rest would be adding some 10-12% further. So, we still reach up to, I think, 1,400 kind of max level from here on. So, what is the plan going forward, or how we should look at this?

Thank you. Which are now being made. I think that. What has happened is our investor friends keep on looking at us only from Capex, only from aroma ingredients, only from generic materials. But I think the underlying story is how is that eventually going to help our fragrance division to not only have a backward integration piece attached to it, but actually having a depth in terms of competitive strategic positioning, which will be a key value driver.

And there, Okay, so that means maybe probably our mix, which is around 33, I mean, equally among the three segments, that mix would basically going to change if we are more focusing on that presence or aroma business, right?

When that change happens, I promise you, I will inform you on the investor call.

Okay. And if one more question I can squeeze in, our overall R&D spent on annual basis would be how much?

I stand corrected on this one. The last time I checked, we were at anywhere between 3% to...

Currently, we are at around two, two and a half percent.

Antra is optimizing.

Thank you. The next question is from the line of Sakit Saurabh from Sagari Capital. Please go ahead.

Hi, am I audible? I just mentioned that Mahath is operating at 50-60% capacity, and if I, say, subtract the... From Consul, it seems, the top-line contribution was around 3 crores from Mahath. So, first of all, am I right? And if yes, then is it like we are producing and it is getting inventorized right now? So, just needed one clarity on that. And second, while I think there was clarification on it, it's a volatile environment, it's dynamic and all. But any color on, you know, is there a scope for improvement on margins? Because we have talked about, you know, doing all the right things, you know, and for the last couple of years, even for cut-in quarters, initially it was tariff and all. But that margin has kind of stuck around 7-odd percent. In fact, even on YOY, there was a minor dip. Even if I just look at standalone number, I have already, you know, removed that from the profitability number. So, any scope for even improvement, say even the immediate term on the margin front.

So to give you a very clear picture, I mean, since we are on both sides of the coin sake, where we also make fragrances, so we buy aroma ingredients, and on the other side we sell aroma ingredients to global fragrance houses like ours, you know, we found ourselves in a cycle in the last probably 12 to 16 years. Thank you. That's the reality of the market, and that's the reality of the generic aroma ingredients market globally, without any exception. I mean, I can vouch for this because I also buy these materials on my fragrance. We will see that there will be opportunities that will come up. And when these come up, we will be more than happy to grab them, point number one. Point number two, I think the basket of products that we currently offer to our customers globally and in India. That basket keeps on expanding and that basket gives us the ability to have a EBITDA at a basket level. So these two strategies put together. with a very strong headwind in terms of capacities coming and pressure on pricing. We feel very confident that going forward, whenever there are opportunities in generics, we will be... We said that the generics are already giving a lot of value to our frequency division, from where we will see additional margin contribution. So these are the three broad pillars based on which we feel that margins going forward, whenever they come, we will be there to.

And the Mahad, 50-60% utilization, leading to 3 crores of quarterly run rate. So are we inventarizing the production right now, or that doesn't tie in?

Yeah, so Mahad has gone through a phase where first we produced, then we inventarized, then we went through a slew of approvals, so the material started moving. Then we had the geopolitical situation because of which one raw material became extremely challenging. And so when we got access to that raw material, we have again produced and we have invented it. So that's why probably, and Girish could answer in terms of the numbers, but broadly what's happened on the ground is what I can tell you.

No, no, so I was just, so I'm just saying that, you know, the top line is 3 crore only, right? So my question is, you know, say, right now, is it like inventory buildup is there or everything that we have produced so far is there?

To answer your question, there is an inventory build-up which has been initiated because of probably a challenged access to one raw material which is petro-driven. And that inventory, we are very, very confident that we will be able to sell it in the near future. Point number one. Point number two, also, I feel from a communication perspective, the MAD investment is not only for this one product. It's a very large site where we have just done phase one. And as Shamal mentioned in his speech, it's a long-term strategic investment done for a large number of products when we are ready to be installed over there.

Okay, so what kind of top line are we seeing, say, at least Q3, or when is the scaling up, meaningful, scaling up, even in with us, for Mahat, because, if you recall, I promise

you that when and as and when it happens, we will be informing the investor community. We are trying our best. We are always saying that new products, and we have been in that cycle for the past 20 years. It takes anywhere between 500 days to 1,000 days for see the light of the day. So, we are very confident and we are seeing those early shoots of greenness happening where we have got approvals from a wide range of global customers. We already have three questions that I have answered. So, you know, we will give an opportunity to some others.

Thank you. Participants who wish to ask questions may press star in one at this time. The next question is from the line of Minayak, an individual investor. Please go ahead.

Hello, sir. Sir, I just want to ask you, how did you manage the scale in the raw material prices?

Sorry to interrupt. Mr. Vinayak, may we request you to use a microphone while asking a question? You are not that audible.

Hello, sir. Am I audible?

Yes, you are.

I just have one question. How did you manage the significant volatility in raw material crisis due to the West-Asia crisis?

So I think it has been a combination of extremely vigilant communication with our existing suppliers and leveraging the long-term relationships that we have built over the past many years. To ensure that whatever volatility happened, it has hit us probably the last and it has hit us to the lowest possible extent. So, combination of these two, three things, where I think we have a dedicated team which is looking at all our raw material portfolios in the fragrance as well as the other two divisions and taking strategic decisions of what to long buy and what to short buy.

Okay, that's it for my sake, sir. Thank you.

Thank you.

Ladies and gentlemen, that was the last question of the day, and now I would like to hand over the conference to Mr. Dharmil Badani from Oriental Aromatics Ltd. for closing comments.

Thank you. Thank you all for participating in the earnings conference call. I hope we have been able to answer your questions satisfactorily. If you have any further questions or would like to know more about the company, please reach out to our IR managers at Valorum Advisors. Thank you.

On behalf of Oriental Aromatics Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your line.