Sportking India Limited (SPORTKING) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to Sport King India Ltd. Q4 and F526 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 star than zero on your touchstone phone. Please note that this conference has been recorded. I now hand the conference over to Ms. Dalshi Jain. Thank you and over to you, ma'am.

Thank you. Good afternoon, everyone. Welcome to the Sportking India Limited Q4 and FY26 earnings conference call. Today on the call, we have Mr. Munish Avastri, the Chairman and Managing Director, Mr. Sandeep Sajdeva, Chief Financial Officer, and Mr. Lavlesh Verma, the Company Secretary. I hope you have gone through our press release and the investor deck. A short disclaimer before we start this call. This call will contain some forward-looking statements which may be based upon our belief, opinion, and expectations of the company as of today. These statements are not a guarantee of future performance and will involve unforeseen risks and uncertainties. With that, I would now like to hand over the conference call to Mr. Munish Avasti, the Chairman and Managing Director, for his remarks. Thank you, and over to you, sir.

Thank you so much. Good afternoon, ladies and gentlemen. I hope you had an opportunity to go through a pressed lease and invest a date. We are pleased to share that the company delivered a resilient performance despite a challenging environment. Our revenue broadly remains stable while profitability improved. This growth was supported by better yarn realization and better demand for cotton yarn during the quarter. Now, let me take you through what happened since our last concourse. There were many things happened. First of all, the improved demand in almost all the geographies across the world and in all the segments that we make. There was a resurgence of China as a large importer of cotton yarn. The share increased from 7 to 8 percent to almost 25 to 30 percent, and they keep on buying. Renewed Bangladesh optimism after the elections in Bangladesh. Local demand, though lagging for the first few months, is now leading the charge since March, when the U.S. narrative went away. The rupee depreciation is helping to make Indians spinning more competitive. Indian cotton has finally regained its competitiveness after a rally. Consolidation, which we have been talking since our last two years, which happened in the last three, four years across the world, has now unlocked the real potential of spinning sectors, and we expect to see this accelerating going forward. Though there are some headwinds as well, the macro climate is still of huge uncertainty because of multiple wars going on. Inflation forecasts are of higher inflation, which generally doesn't bore well for growth. Duty on cotton, though right now not that relevant, continues to be a deterrent. Looking ahead, we continue to see a robust demand after a long time from all the segments. Cotton spreads have reached almost three years high and are expanding. We are expecting to expand our margins for next two to three quarters with these increasing spreads and a good cotton coverage. To give you an update on our various CAPEX programs, the 40MW solar power supply which commenced by the end of May is expected to save around 14-15 crores annually. We are also making strong progress on our greenfield expansion project of approximately 1,000 crores, which will enhance our spindle capacity by around 150,000 spindles. The land acquisition has been completed, advances for machinery has been released, and the construction activities are progressing as scheduled. This expansion will significantly strengthen our production capabilities, improve operational efficiency and position as to effectively cater to the growing demand. We expect the commercial operations of the project to commence in the third quarter of the current financial year. As part of our strategic growth plans, the board has approved the acquisition of a majority stake in marble, diaries, and processes private limited, which will strengthen our processing capabilities and enhance our integrated operations. The Board has also approved the acquisition of the mail-packing facilities of Subhagia Sales Private Limited on a plump, clean basis in Nayan Building, on lease basis, subject to definitive agreements and customary approvals. Looking ahead, we are confident of improving overall performance, and with EU and UK FTAs in the horizon, we will provide further stimulus next year when the new facilities come up. Now, we can go ahead with the question and Q&A.

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 touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use answers while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Bhavika Chahing from Nivashay Investments. Please go ahead.

Am I audible?

Yeah, yes, please.

Thank you for the opportunity. So, first question on the new KPIX, which we are coming up in Q3. I want to understand that how we can expect the ramp up of that capacity, because looking at the current scenario, there has been a very huge demand coming from China and even globally for the yarn. So, how are we looking at this industry demand and what our plan to cater it and to be a part of this demand element? And the second question I have on the spread side, as you say, that we expect that the spread will continue for two to three quarters. So I want to know the particular reason behind this threat, like increasing, and how confident we are that it's going to be sustainable going forward in two to three quarters, if you can give clarity on that.

Okay. So first of all, I'll go with the last question. So we are very confident about the threat because generally we have a book for 90 days for our sales. So we are already, you know, through this quarter, almost half of the quarter. And so this quarter, our book is already there and the next half of a quarter is also sold. So, and looking at the current demand scenario, we foresee that this demand is going to be there going forward. And with the cotton we have already covered for these three to six months, so that's why we are so confident for the spreads to be there and maybe go a little higher from last quarter. And your first question was about the new capacity, right?

Yes.

So, what did you want to know about the new capacity?

I just want to understand that are we planning to ramp up quickly looking at the current demand scenario or like what's our view, how we are thinking of the upcoming circumstances.

We are actually doing the best we can. So, being a greenfield project, I think we are exceeding our own internal expectations, and we are, of course, looking at the current scenario. We are also trying our best to get it as soon as possible. But, you know, it takes a little time, construction and everything. So, the timeline which we have given is the one we are sticking to right now.

And just to follow up on the SPED side, I want to understand that, like, because as maybe, like, you can correct me, the current demand scenario, which we are seeing, is majorly due to the China, like, China is buying from India. So, I want to understand that, are we exporting to China or, because as per my understanding, we export mainly to Bangladesh. So, if you can give clarity, what's the scenario on ground and how we are seeing and taking part of it.

So, China, so, see, India makes almost 400,000 tons, million kgs of yarn every month. So, China imports just 30, 35 million out of that. So, it's not that, you know, it is only China which is, you know, which has caused this demand resurgence or spread resurgence. The only thing is they came and they picked up the incremental capacities. And we, for us, China is not that big. So our share in China, so as a country, India's share is around, I think, since last four, five months around, you can say, about 20, 23, 24 percent. But at Sporting, yes, of course, we have also increased our exports to China from almost 2-3% to maybe 10-12% in last year. Last one for the call.

And on Bangladesh's side, do we think...

That we have to, you know, rearrange our priorities a little. But still, Bangladesh continues to be our number one market in export.

Okay, that's wonderful, my friend. Thank you.

Thank you. The next question is from the line of Mehmed Madha from Unify Capital. Please go ahead.

Yeah, thanks for the opportunity. Same question from the previous participant. Just want to understand that piece a little bit better. Your remarks on seeing China being a small portion of overall India's production, that's fair. But if I look at historical data of India's exports to China, it has been fairly volatile, right? I think the numbers pre-COVID were probably much higher, and then 22 was much lower, 23 was higher, and last couple of years it was lower, and last few months we have been seeing the trend. So what factors would you... Ascribe for this volatility in general, I'm asking, and what are the factors to watch out for that may sustain this incremental demand from China? That was my first question.

Yeah, good question. So, as far as, you know, of course, you're right when you talk about China being a volatile. So that's why we, you know, our share is always, we are very circumspect in increasing our share to such a market. But what we are seeing, you know, different with China this time around is we see, you know, for last four, five years that Chinese domestic demand was faltering. And we see, you know, a resurgence in their domestic demand, which is helping in increasing the demand for all kinds of yarns. And not only cotton yarn, but all kinds of yarn. And I think some call with the U.S. on politically also is, you know, getting some share of business back to China. And another thing is, you know, China, I think cotton, raw cotton, I think they have peaked in their production. So now they need to import cotton. For cotton, they have a very high duty, that is 40% or some quotas. And so as an arbitrage, they can be, you know, they buy cotton yarn. So, yeah, you're right, you can never be sure of Chinese demand because it's not, you know, always there. But we see, you know, the things have changed, things are changing in China. For the last four or five years, it was grappling with its own economy, domestic economy, which I think has turned a corner. So that's what's giving us the confidence that this time they will be there all the time.

Sure, that helps. And on the spreads part, you made comments that you have visibility of order book for a couple of quarters, and you have inventory for maybe a couple of months. But, say, beyond Q2, and I'm trying to just... Okay, so please.

Right now, you forget the cotton coverage, because that is, you know, every company has its own policy, and we are not talking about inventory losses or profits. But if you look at today's cotton prices, even then, the spreads are, you know, amongst the best which we have had in the last three years. And going forward, see, generally... I mean, spinning April to September quarters are generally weak quarters. So, and because there are many, you know, they've been saying from October to March, your overall productivity goes up because of less heat. You know, there is a festive season coming up, then spring season orders from Western world, and the new harvest comes in, which, you know, the prices go down. So we don't, we expect, you know, we expect, maybe not, you know, we don't have a crystal ball either, so we don't know what it will be, but we see it better than what we have been doing in the last two, three years.

That helps. Last question. If I look at your international business breakup, there's been more or less somewhere around 50% plus minus 5%. Do you see that share changing in upcoming years or this sort of share is what one should continue to see?

Data in export and domestic.

Yeah, yeah, yeah.

Yeah, we... I think we have been in this ballpark for a long time, so I think we stick to that, because maybe, you know, with the new FTAs coming in and kicking in earnest next year, so maybe, you know, we see a much more bigger demand from India, so we are pretty flexible either way, wherever we see the opportunity we live with.

Sure. Thank you so much. Thank you. Before we take the next question, we would like to remind participants that you may press star in 1 to ask a question. The next question is from the line of Saransh Gupta from Swan Investments. Please go ahead.

Hello, sir. I'm audible.

Yes, sir.

Thank you for the opportunity, sir. I had two queries, so I just wanted to understand, like, if you can help us with what, how will the forward integration that we have just acquired through slump sale and a majority stake in dyed yarn and garments, like, how will that pan up for us going ahead?

You know, that is something. So, of course, we will be, you know, formalizing it very soon, and after that, you know, it's a slow thing. So, we are acquiring these businesses, and we have some plans, but they are not some plans. So, right now, for next one year, we just want to, you know, integrate, and we want to see where all we can help each other. And the bigger plans we will share than once, you know, we go through the integration and maybe after six to nine months.

That would be great. Also, going ahead, how do we see the business growing up? We are adding around 40% of our current capacity in phase one, and then there is another phase that will come up. So, we will be at a good amount of capacity for spenders, and we are also forward integrating. So, do we see a shift towards value-added products going ahead, or how will it be?

Yeah, see, the ultimate goal is that that's why we are integrating these facilities, but right now, in the next 12 to 18 months, it's this. New capacity, the first phase which we are putting is of focus and integrating these new two acquisitions, and then I will take it forward. So we are working in all the fronts and we are looking at opportunities, how they present and how the dynamics shift. But now we are in all the segments, and we are constantly exploring how we can expand in each segment.

Sir, I basically wanted to understand like from a three to five years perspective, like how do we see the business growing ahead? Is it from the yarn segment or there will be a good amount of contribution from the value added product, if we call it fabric or probably dyed yarn or garment?

See, that's what I told you. That's the plan. That's why we are integrating because ultimately it is not to acquire these small, you know, these small companies. We want to scale it up. But again, this is something which is in our plans. But how it's fortified is how we see it performing in the next one year or 18 months. And then we will go as we see how well they are being integrated with us.

That's very helpful. Also, sir, if you can help us with the spreads, like how did they move and where are we right now?

How what moves, sorry?

Cotton yarn spread.

Cotton yarn spread today is, I think, around more than a dollar between the clean cost and the final yarn prices. So, yeah, it's... For the last couple of years, they were at around $0.70, $0.65 to $0.70. So, yes, they have improved significantly, and I think if it remains at $1 with the rupee depreciating, I think mills are happy.

All the best, and thank you so much. Thank you.

Thank you. The next question is from the line of Anil Sharma. Please go ahead. Sir, good afternoon, Thay, and comment for record chart of numbers.

Sir, my question is regarding inventory of the cotton, how much months inventory we are having? If you can share some guidelines on that. And number two, how do we think that in the days to come, how the EU and other FTAs will be affecting the FTAs?

So EU and UK FTAs, of course, have been announced and they are being, you know, debated in their respective parliaments. And we hope, you know, UK at least to be active in next two to three months. EU, which we believe, which we hear from the government sources, it might take another six months. So we expect both the FTAs to be, you know, effective from within this, by the end of this financial year. And about our cotton coverage, we don't really disclose our numbers, but the thing is, like all good mills, we tend to cover our seasons cotton by the end of March, and this is not something we do. We do this every year, because you cannot secure quality cotton otherwise. So, yes, I think that's it.

All right. I hope for the long-term future of this industry, our industry is as good as we see.

Sorry?

I think the future, it means medium-term future is good for our yarn and the rudiment, the apparel industry, textile industry.

Yeah, I think the long-term future, I'm more excited about the long-term future with all these FTAs and the competitiveness of Indian spinning and the barrel industry going forward.

All right. Thank you, sir. Congrats.

Thank you.

Next question is from the line of Ahmed Mada from Unify Capital. Please go ahead.

Yeah, thanks for the opportunity again. So, two questions. Firstly, you are answering previous participant question on cotton.

I didn't get you gave some time frame.

If you can repeat that, please, if possible. On your cotton coverage. On your cotton coverage, you are answering question to previous participant, and you give certain timeline of inventory. If you can explain that quick again, please.

So we generally don't, you know, comment on our cotton coverage. The only thing I said was that like all good companies, we tend to cover most of our cotton requirements for the year by the end of March. So that's about it. That's all I can say.

Sure, sure. And regarding your Greenfield spindle capacity of 150k, in what time frame post-commercialization it can achieve optimum utilization?

I think the day we start commissioning, it should take six months from there that we can fully, when we can expect 97-98% utilization. It will come in phases, like that's how spirit works. So from the day we commission, I think in two months we'll start getting the first kilo out of there, and every month then we'll be getting incrementally 15-16% of production.

Okay, sure. And what will be your thinking on overall industry supply per se? There have been a lot of commentary around seeing the unorganized players winded down and so on and so forth. How will you judge the industry supply per se? Because only few large companies are expanding capacity like you. So how will you judge overall Indian yarn competitive intensity and unorganized capacities?

I think we have been seeing this since the last three, four years, since the last boom after COVID, that a lot of capacities in India, not only in India, across the world, have shut down because of different reasons, because of financial problems, because of being obsolete technology, not modernizing on time. So I think this process is still going on. So, we expect this process to go on, and we expect more consolidations happening, and we expect the good companies, which are run efficiently, to keep on growing, and we expect the companies... Because there's a lot of, you know, shift happening in technology, and anything which is older than 20 years cannot survive in today's environment. So either you modernize or you shut down. Otherwise, it's very difficult to compete. So we expect, you know, either you modernize or you shut down. That is the motto which is happening for the last few years, because the margins, though right now we are in a wet place, but overall we don't see... The long-term margins are at close to 15%, and with all this new, old machinery, it's very difficult to sustain at both levels.

And for the first half, will it be fair to assume we do 15% less margin based on your current visibility?

We don't give any guidance, but, yeah, I'll be disappointed if we don't.

Sure. Thank you so much, and all the best.

Thank you. The next question is from the line of Pramod from SRA Investments. Please go ahead.

Yeah, hi. Am I audible?

Yes, please.

Yeah, thank you for the opportunity. So, I've got a few questions from my side. The first one was with regarding to the merger. So, can you give us more color on the expected timeline for the completion of the acquisition and give us some perspective on how Sportsking India Limited margin is expected to grow after the acquisition?

So, see, the impact on, the immediate impact on the margins will not be a lot because they are very small, you know, with our top line, we are expecting around, you know, 27, 28, 100 crores this financial year, the coming financial year, and these two companies will give us close to 200 crores in our top line. So, we don't expect to, you know, really enhance our margins. But yes, they are our roadmap for the future. They are our, you know, you can say, labs for our future expansions, which we need to do in, you know, downstream. So we expect to close this within this quarter, in this calendar year at the most.

Got it. And is it fair to assume that the potential operational synergy, integration benefits, or cost efficiency can influence the margin going forward?

Yeah, of course. Definitely the margins for these companies will definitely increase once the synergies are there. But as I said, you know, the overall... These are 7-8% of our total turnover. So, the impact on the total company will not be so huge within this year. Maybe once we start scaling those businesses up, then things will change.

Got it, sir. It was clear picture. My next question was with regards to the overall industry. So, just wanted to understand the overall textile industry and the yarn demand. So, could you help us understand how the management views the demand cycle of yarns, and including the key factors that can influence this fluctuation across the different phases of cycle?

So, right now, for the last 3-4 months, we are seeing a continuous demand for almost all kinds of yarns. And we, you know, we, we... You know, we don't have a crystal ball, but the feeling as a, you know, as somebody who has been running these businesses for the last 30 years is that we see some structural changes which have happened, which are helping this time back, like the consolidation which have happened. So, the demand, a little bit of extra demand just calculated the... So, that means that we have a lot of underlying potential in this business. So, any meaningful increase in demand can really, you know, jack up the spread. So, I think, personally, in India, after all these FTAs and all the talks which are going on, We see a lot of potential. We see a lot of, we see India as the hub, if we act right, as the hub for the ramen manufacturing and the fabric manufacturing going forward with, you know, as a substitute for China. And overall, stable policies, stable power, stable everything, you know, the interest rates are pretty moderate when we compare it to across our competitors. So we see a lot of potential. So it's just that, you know, the downstream has to now pull up the stocks, which they are going. I think there are a lot of capacities coming up in anticipation of these FTAs. And we see a good bright future for the whole chain going forward.

Got it, sir. That was really helpful. Yeah, so that was all from myself. If I have any other question, I will join back the queue. Thank you.

Thank you. Participants who wish to ask questions may press star and one at this time. The next question is from the line of Bhadika Jain from NeverShare Investments. Please go ahead.

Thank you for the follow-up opportunity. Basically, I just want to want a clarity on the capacity utilization. As in last call, management mentioned that they are at a full utilization, like at 95% utilization. So just want to achieve that till we are not coming up with the, like, because it will take three quarters. So how we are seeing our top line getting Oh, I'll be there. The top-line growth going forward for two to three quarters. Is it the margin, is this the spread which is going to reflect or there will be a volume addition? Second, in this quarter, we did a 13% of EBITDA margin. Just want to understand that what led this margin and are we expecting this to continue going forward?

Okay, so... So your question was first of all about So, we see the yarn prices, which were at around $2.70. Let's say, in average for last quarter, maybe $2.80. So they have gone up now to anywhere close to $3.30. So we would see, of course, as we sell, you know, we always, when it's going up, we always as a company get it with a lag because we have a policy of a long-term sales book. So we expect, you know, the top line to increase by 7% to 10% in the next three quarters. Because of the higher prices. Volume-wise, we don't see any increase in volume because we are already working at full capacity, whatever is optimal capacity, 95-96%. And any new capacity will only reflect maybe in the last quarter or in the third quarter, maybe a little bit, and a little bit more substantially from fourth quarter and fully from the next financial year. About the margins, we expect how these margins came about, of course, better stretch. These margins could have been higher, but we had some small provisions. So we expect the margins to expand meaningfully in the next two to three quarters, looking at the stretch and our long field book.

If you can give me the range in between, we can expect the margins to be.

We don't, they shall be, you know, we are looking at, you know, quarter and quarter expanding by at least 15-20 percent.

Okay, that's how it's going. Thank you.

Thank you. The next question is from the line of Kuranal Shah from Inam Group. Please go ahead.

Yeah, hi. Thanks for giving me the opportunity. So, first is on, is there any update, sir, from the government in terms of imported cotton and the duties on the same?

So, that's the big thorn in the flesh. You know, though right now, you know, it doesn't mean a lot because Indian cotton is substantially cheaper than the international cotton. But of course, you know, for the long-term health of this industry, this is one fight which we have to win. But right now, the communication is going on. We have been meeting different ministries periodically, and they all understand, you know, the rationale behind it. And we expect to see something coming up in next couple of months. We are just waiting, because with the government, you know, it's a one-way communication. You can always tell them your problem, but they will tell us when they are ready for the solution.

Right, right. And what we were hearing is that, you know, even before the cotton price hike in March, CCI pricing was being calibrated in line with U.S. cotton prices. Is this observation true, sir?

Yeah, you are right on that, that the CCI has been pretty efficient with, you know, and they were very tech and industry supportive in their pricing. But the problem lies in, you know, when they are buying. You know, when they sell, they are pretty good. But when they are buying, that time, there is a problem. That is the time when there is a disconnect between the prices, international prices and Indian prices. That is from a period from October till, you know, February.

Got it, got it. So, in terms of buying, how much of CCIB out of, you know, buying from India's total production of cotton?

So, this year, they have bought 106 lakh bales out of projected production of around 310. So, it is almost 33-34%.

33%. So, they raise the price in the market, and hence, you also have to pay higher prices. That is the impact.

Exactly. So, whatever, so the prices are pretty much, you know, close to MSP levels when the harvest comes. So, the mills don't have an option but to buy from the market, whatever the prices might be. So, that is when the problem comes. So, right now, whatever the international prices are, so we will be much higher than the... So, right now it looks good, but, you know, with international prices, you'll never know.

Right, right. Absolutely. And, sir, my second question was in this merger of group companies that they're planning. I was just seeing the financials that you reported in the press release. So, group companies have seen a decline in revenue over the two-year period from FY23 to FY25. What would be the reason for the same, and what would be FY26 revenue numbers?

So we were, you know, in the process of, you know, modernizing and, you know, reading out, you know, basically we were re-engineering those units. So they were like, one of them was shut down for three, four months because of that, and there were a lot of capacities which we were re-engineering. So, yeah, there was a decline, a marginal decline in the war, in the total rebellion, but we, going ahead, we see a healthy... We will increase in revenue by at least 20-25% in this financial year.

So that you are talking about, can you just share the FI26 revenue numbers for these companies?

The FI26 number will be, I think, similar to the flattish.

Okay, okay, and 20-27% from FI27 onwards, that's what the outlook is.

FI27 now, you know, we expect both the companies to grow by 15-20%.

And so that business which is into dyeing of fabrics, that is only dyeing and not manufacturing the fabric, right? Just clarifying for that.

So we manufacture a lot of fabric in one company and it gets dyed in that company. So now both of the processes, we manufacture fabric also but only for in-house. So it is getting dyed in that company.

Okay, got it, got it, got it. Perfect. Okay, thank you so much.

Thank you. The next question is from the line of Anil Sharma. Please go ahead. Sir.

So, my question is regarding renewable energy investment. Because as you said, we will be saving around 14 to 15 crore this year. How much we can increase? What is any limit about that? Because it is very cheap going forward also due to uncertainty. We are planning to invest more in this from colour on this renewable energy and how much it will save in the years to come.

So, this is, right now, under Punjab policy, this is the most we can put under solar. So, this is, for this, for our existing capacity, this is the highest we can go to. So, this is 40 megawatt, which will be giving us around 7 crore unit every year at a price of 3 rupees 70 pesos.

Right.

And for that, how much we will save?

We'll be saving around, I think, two rupees, two or two, two rupees, around about 15 crores a year, yeah.

Okay, okay. And the next year also, this will be the same, I think. If we go for the expansion of the, our new capacity, when it is installed, then we may, I think it may be, we may can expand it. Is it so?

So that's, in Odisha, we are getting anywhere getting solar at a very lower price, so it won't be that beneficial to put a solar plant there. We might put up a small one on our rooftop, but not a ground solar, I think. We won't need to put that.

Okay, thank you. Thank you.

Thank you. The next question is from the line of Yash Mehta from FKB Capital. Please go ahead.

So, thank you so much for the opportunity. So, I've got a few questions. So, firstly, the fourth quarter witnessed a noticeable improvement in profitability and margin performance. So, kindly explain the key factors that contributed to this expansion. And it would be really helpful to understand the relative impact of elements such as better product mix, lower material costs, operating leverage, or any one of the benefits during the quarter.

So, as we have answered in my previous callers and in my initial speech, that it is the most important factor which has contributed and which is actually contributing. The demand has been rumoured for the last 2-3 months and it continues to be. That is the single most important factor which has helped the margins to expand.

Okay, okay, got it. And additionally, how should we view the sustainability of these margins going ahead?

As I told previously also that we have a visibility for next two quarters, and then we, you know, see macro, you know, that the new FTA is coming in and our new capacity is coming in. So we are pretty sure that, you know, we can maintain these margins and maybe expand, you know, long term.

Okay, okay. And there was a forex-related mark-to-market impact during the quarter, which affected the profitability also. So could you help me understand what's the company's hedging policy and whether forex volatility remains a material earning risk going forward?

So we don't, we, whatever we sell, we book the same day. So, we don't keep any risk in our books. So, it is just that, you know, when March 31st closed, the dollar closed at the highest level, all-time high levels. So, anything which was, you know, yet to be shipped or yet to be received was marked to market. So, that's why, you know, though, you know, it is a notional entry, but... That is required to be made, and the impact will be reversed in this quarter if the rupee, you know, doesn't, you know, depreciate much more than this. But it all depends upon its entry which is adjusted as per the last, as the closing rate of dollars on the last day of the quarter.

Okay, okay, yeah, got it. Thank you so much.

Thank you. Participants who wish to ask questions may press star and 1 at this time. Ladies and gentlemen, we'll take that as the last question for the day, and I now hand the conference over to the management for closing comments.

Thank you so much, everyone. It's always good to have a connect with all of you, and see you in the next quarter. Thank you.

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