S H Kelkar & Company Ltd Management Discussions

Economic overview

Global economic overview

Robust growth in advanced economies and a declining trend in overall inflation aided the global economy to exhibit resilience in 2023, amidst an uncertain environment. The key highlights of 2023 were the decline in inflation from the peaks of 2022, the Russia-Ukraine war and global energy crisis. Global economy expanded steadily driven by positive supply trends despite central banks raising interest rates to stabilise prices. The global economy grew by 3.2% in 2023, with a similar pace expected in 2024 and 2025. With supply chain issues resolving across the globe, headline inflation is expected to decline from 6.8% in 2023 to 5.9% in 2024 and 4.5% in 2025.

Advanced economies benefited from steady employment growth and a resurgence in consumer confidence amidst continued monetary tightening by major central banks. Growth in advanced economies is expected to improve slightly from 1.6% in 2023 to 1.7% in 2024 and 1.8% in 2025. The emerging markets and developing economies (EMDE) are expected to maintain steady growth of 4.3% in 2023 in both 2024 and 2025 at 4.2%. Situation in EDMEs is characterised by high public debt and unstable inflation rates amidst challenging global environment with ongoing geopolitical tensions and era of sanctions. Global growth, though resilient, faces the risk from rising interest rates and new price spikes due to geopolitical conflicts like the Russia-Ukraine war, the Red Sea crisis the Israel-Palestine conflict. Multilateral cooperation will help limit the costs and risks of geo-economic fragmentation and climate change, speed the transition to green energy, and facilitate debt restructuring.

(Source: World Economic Outlook-IMF, April 2024)

Indian economic overview

India continued to be the fastest-growing major economy in the world with robust domestic demand. Led by continued government support in terms of reforms and financial push, strong expansion was witnessed across various sectors including manufacturing, infrastructure, power, etc. Indias export competitiveness has enhanced manifolds further aided by China plus one strategy. The country has undertaken strong efforts in utilising technology to enhance knowledge-sharing, boost manufacturing, and promote export competitiveness.

According to the provisional estimates by the National Statistics Organisation (NSO), the Indian economy is expected to grow by 8.2% in FY 2023-24, surpassing the 7% growth in FY 2022-23. Main driving factors include continued increase in investment, boost in private consumption, improved business sentiments and the robust financial positions of banks and corporations. Key sectors such as the construction and manufacturing sectors witnessed robust 9.9% growth each. Strong economic growth prompted the RBI to refrain from reducing repo rates and maintained its stance of withdrawal of accommodation, particularly given the prevailing inflationary pressures. The RBI has reiterated its commitment to maintaining headline inflation at 4%, with an estimated inflation rate of 4.5% for FY 2023-24. The RBI is keeping a close watch on food inflation.

Growth momentum has been driven by several positive macroeconomic indicators, including improved labour market conditions, heightened urban demand, increased capital expenditure and emphasis on digitalisation and technology-driven solutions. The volume of digital payment transactions surged from Rs. 2,071 crore in FY 2017-18 to Rs. 13,462 crore in FY 2022-23, at 45% CAGR.

With predictions of normal monsoon, and strong growth in manufacturing and service sectors, Indian economy is expected to continue on its growth journey. Increased household consumption, growth in fixed investment, upturn in the private capital expenditure cycle, improved business sentiments, healthy balance sheets of banks and corporates, and the governments unwavering commitment on capital expenditure are reflective of strong future growth potential.

(Source: National Statistics Office; RBI)

Industry overview

Global _avours and fragrance market

The global _avours and fragrances (F&F) market grew 3.8% in 2023 to US$ 32.2 billion in 2023. The market demand is fuelled by expanding personal care industry, continuous innovations in food and beverage (F&B) market and rising awareness about personal grooming and hygiene. As the popularity of healthier and sustainable options is rising, the demand for natural and organic _avours and fragrances is also increasing. Rising awareness about the harmful effects of synthetic products in personal care products, is leading to a drastic shift in preference for natural and clean-label _avours and fragrances. According to IMARC, the _avours and fragrances market is expected to grow at 4.6% CAGR during 2024-32. The growth will be driven by the above-mentioned factors, aided by growing population and urbanisation.

In 2023, the fragrances application segment continued its dominance in the global industry with revenue share of more than 51.9%. Flourishing personal care industry is a key growth driver for fragrance market. Within personal care, the demand for natural fragrances is on the rise as they are perceived to be healthier and safer. Manufacturers are innovating new fragrances to meet dynamic customer demand for different aromas in various cosmetics. Also, the market for synthetic fragrances is on the rise too, due to their long-lasting effect. Another growth driver for fragrances is its application in aroma therapy.

Within _avours, F&B industry continues to drive the market. Continuous innovation and growing popularity of various ready to eat foods/processed foods like snacks, baked goods, soft drinks etc. are contributing significantly to the growth in _avours market. In the restaurant industry as well, new _avours are constantly in high demand especially in the beverages space. There is a tremendous growth in new and exotic _avours as well as a growing demand for nostalgic _avours. Consumers are increasingly looking out for healthier options and there is a budding segment of _avours with fortified ingredients, including probiotics, ginger, adaptogens, moringa, turmeric, and co_ee bean extract. Plant-based _avours are gaining good traction among the vegan population.

Regionally, Asia Pacific continued to dominate the global F&F industry in 2023 with the largest revenue share of over 32% led by a large population in China and India. Asian _avours and fragrances are being increasingly appreciated in major regions of

Europe, Middle East and North America. Multiple manufacturing companies are focussing on expansion of their business and investments in R&D facilities in the Asia Pacific region.

Nature-identical substances manufactured in laboratories, having similar chemical composition and structure of naturally occurring _avours and fragrances, are gaining increased traction. They offer a cost-e_ective and reliable alternative to natural ingredients. Being widely applicable, readily available supply, providing consistency, ensuring stable production and formulation, the nature-identical substances are being preferred over natural ingredients. As the desired sensory profile of these substances can be controlled, it is possible to recreate specific _avours and fragrances with greater precision. In 2023, the natural chemicals segment continued to dominate the industry with over 74.5% revenue share. The robust growth of these substances is led by usage in multiple industries such as pharmaceuticals, aromatherapy, and natural cosmetics._

Flavors And Fragrances Market Size & Share Report, 2030 (grandviewresearch.com)

Flavors & Fragrances Market Size, Share Report, 2024-32 (imarcgroup.com)

Flavors and Fragrances Market Size, Share & Forecast Analysis 2023 (gmiresearch.com)

Indian _avours and fragrance market

India is known as a land of olfactory indulgence, where aromatherapy, incense and ittar have long existed. Healing scents find mentions in old scriptures used for mental well-being, beauty, treatment of ailments, hygiene, and age control. The Indian F&F market is a dynamic and rapidly growing industry with a vast and huge assortment of various _avours and fragrances. Amidst strong competition spanning from global multinational corporations to local manufacturers, the market is witnessing strong traction led by the fast-paced growth in F&B sector, growing popularity of personal care and cosmetics products, and rising disposable income. The F&F market encompasses a wide array of products, including natural and synthetic _avours, essential oils, aroma chemicals, etc.

India is a significant part of the humungous Asia Pacific F&F market. With a focus on innovation, product development, and the adoption of sustainable and organic ingredients, the industry is poised for sustainable growth. India exports over 75% of its domestic production of F&F ingredients and is a leading supplier of natural ingredients catering to 80% of the global demand for mint extracts. The rapidly evolving retail landscape and influx of multiple brands across various FMCG product categories are providing strong boost to the F&F market.

India is known as a land of olfactory indulgence, where aromatherapy, incense and ittar have long existed. Healing scents find mentions in old scriptures used for mental well-being, beauty, treatment of ailments, hygiene, and age control. The Indian F&F market is a dynamic and rapidly growing industry with a vast and huge assortment of various flavours and fragrances.

According to IMARC, the India _avours market is estimated at

Rs. 4,287 crore in 2023 with prospects to reach Rs. 8,100 crore by 2032, at 7.1% CAGR during 2024-2032. The growth is mainly led by the F&B market with naturals and exotic _avours specially propelling market growth. Growing health-conscious and mindfulness of the ingredients used, is giving rise to demand for natural _avours derived from authentic sources such as fruits, vegetables, herbs, and spices. The demand for unique and exotic taste is also on the rise as consumers seek novel _avours and sensory experiences in their food and beverages. Development in technology like _avour encapsulation techniques and delivery systems is leading to enhanced shelf life of the _avours due to improved stability. Thus, _avours are finding wider application in a greater variety of products boosting the market growth. The government has implemented stringent regulations to ensure the safety and labelling of _avour ingredients, which bodes well for the organised players.

Fragrance holds significant cultural importance in India, where it has been used for centuries in rituals, ceremonies and daily life. The Indian fragrance sector has grown at 11% CAGR in the last few years driven by growing aspirational middle class, increasing disposable income, rising influence of Western culture, changing lifestyle preferences and affordable pricing of fragrance in the form of mass perfumes and deodorants. Earlier fragrances were used only as a necessity given the tropical climate. But there has been a cultural shift towards personal grooming and self-expression where fragrance has become a style statement. Increased health awareness, accessibility of quality products, and social media influence have led to a substantial growth in use of personal care products and cosmetics. Increased use of personal care and hygiene products has been associated with stress reduction. The rise of e-commerce has revolutionised retail, providing easier access to a wide range of products, including perfumes. This growth in personal grooming and cosmetic products have been a key driving factor in the growth of fragrance industry. The resurgence of Indias age-old traditions and a growing preference for natural and organic products have given an uplift to the traditional attar industry in the country and provided growth opportunities to fragrance manufacturers in the natural aroma space.

Source: https://www.mordorintelligence.com/industry-reports/_avor-and-fragrance-market India Flavors Market Size, Share, Industry Report 2024-32 (imarcgroup.com)

Fragrance & Flavour Industry in India : Ministry of Micro, Small & Medium Enterprises (msme.gov.in) Scent of success: Whats driving the growth of Indias fragrance market (indiaretailing.com)

SWOT of the Indian F&F industry

Strength	Weakness	Opportunities	Threats
Strong domestic demand led	Allergies associated with	Growing personal care and hygiene products demand for	? Economic risk
by huge population, growing	artificial _avours, chemicals	fragrances Growing popularity	? Data security risk
disposable income and rapid urbanisation Vast global	and preservatives	of car and room fresheners for fragrances Natural F&F	? Innovation risk
market growing at robust pace Leveraging technology to make F&F longer lasting		gaining significant traction Aromatherapy and hospitality segment driving demand for fragrances High growth in F&B industry driving growth in _avours	? Geopolitical risk

Company overview

S H Kelkar and Company Limited (‘the Company) is the largest Indian-origin fragrance & _avour company in India. With over 100 years of experience, the Company has built a strong brand equity. The Companys _avours and fragrances are sold under SHK, Cobra and Keva brands and find applications in various industries like personal care, fabric care, home care, _ne fragrances, bakery products, dairy, pharmaceuticals, and other food and beverages.

The Company boasts of a strong and dedicated team of perfumers, _avourists, evaluators and application executives at its facilities and five creation and development centres in India, Singapore, Amsterdam, Indonesia and Italy for the development of fragrance and _avour products. The research team has developed 10 molecules over the last four years. The Company has filed 20 patent applications in respect of molecules, systems and processes developed by it, of which 6 have been commercially exploited in deodorant and _ne fragrance categories. The Company has a diverse and large client base including leading national and multinational FMCG companies, blenders of fragrances & _avours and fragrance & _avour producers.

The Company has two primary business segments, namely, fragrance segment and _avours segment. The Company also has global ingredients business segment. Fragrance segment dominates the total revenue with ~88% share in FY 2023-24. The Companys fragrances find application in various consumption categories including personal care, soaps and detergents, sanitisers, home cleaners, fabric care, _ne fragrances, etc. For over a decade now, the Company has outperformed the market and been the leader of the Indian fragrance industry. The Companys strength is its capability to provide innovative and customised products created by the pro_cient team of specialised perfumers at the creative development centres in India, Singapore and Europe.

Company is highly regarded in the domestic _avour manufacturing market, recognised for its expertise and innovative approach. The Companys _avour products find application as raw material in baked goods, dairy products, beverages and pharmaceutical products. Its products are FSSAI, USFDA and Halal approved and manufactured in state-of-the-art manufacturing facilities with a well-equipped R&D lab. The Company boasts of a 5-member skilled application team of _avourists responsible for exhaustive market research and analysis of emerging trends to maintain leadership.

Business segment performance: Key highlights in FY 2023-24

Fragrance segment

? Fragrance division achieved 14% growth led by strong traction in domestic market

? Core Europe segment also contributed positively to the growth trajectory during the period

? Engagement with global MNC clients has strengthened significantly marking an important milestone in the strategic global expansion and reinforcing the Companys vision to become one of the top Fragrance and Flavour companies globally

? Actively implementing strategy to better penetrate existing and new markets, particularly focussing on Southeast Asia, Africa, the United States and other markets

Region	Revenue contribution (%) in FY 2023-24	% Growth in FY 2023-24	% Growth in FY 2022-23
India	55.0	14.0	7.7
Europe	28.0	13.3	-0.1
RoW (Rest of the World)	17.0	23.2	3.9
Total	100.0	15.3	3.1
(including global ingredients business)

Flavour segment

? Domestic segment demonstrated a healthy growth of 15%

? Flavour segment experienced a revival in International market due to increased engagement with the customers

Region	Revenue contribution	% Growth in	% Growth in
	(%) in FY 2023-24	FY 2023-24	FY 2022-23
India	66.0	14.8	115.2
RoW (Rest of the World)	34.0	0.6	-3.0
Total	100.0	9.7	51.9

International business

? Core business sustained stable performance in Europe and achieved 7.4% revenue growth on a like-for-like basis. Company also recorded a strong profitability in its core European Business Operations

? In the global ingredients business, the Company has prioritised enhancing productivity and minimising losses by controlling costs. Additionally, strategies for backward integration have been put in place, with the anticipated benefits expected from FY 2024-25. During the year, sourcing from China was reduced by over 30% enhancing supply chain resilience

? Successfully completed the acquisition of the remaining 19% equity stake in Holland Aromatics through Keva Europe BV, making it a completely owned subsidiary of the Company. This strategic acquisition strengthens the Companys position in the European market and aligns with the long-term growth objectives

Financial performance

Consolidated total income stood at Rs. 1,936.02 crore in FY 2023-24, up 14% as compared to Rs. 1,698.33 crore in FY 2022-23. The growth is attributable to sustained momentum in both existing and new accounts, a revival in mid-sized company engagements, and resilient performance in key international markets.. The Company reported a robust performance, despite facing significant challenges arising from geopolitical uncertainty. Emerging markets contributed to 79% of business with 15.1% growth over previous year and Europe business comprising Creative Flavours and Fragrances S.p.A and Holland Aromatics BV, core business grew 7.4% on constant currency basis.

Gross margins stood at 43.8% and EBITDA margins were at 16.3%. EBITDA stood at Rs. 312.9 crore in FY 2023-24, up 36.5% from Rs. 229.13 crore in FY 2022-23 due to softening of raw material prices and better product mix driving gross margin profitability.

Reported PAT stood at Rs. 123.55 crore in FY 2023-24, up 96.27% from Rs. 62.95 crore in FY 2022-23.

The Companys net debt stood at Rs. 504.28 crore as of 31 March 2024, up by Rs.28 crore over 31 March 2023 on a constant currency basis. Cash Profit (excluding exceptional items) stood at Rs. 219.76 crore as of 31 March 2024, as against Rs. 176.57 crore as of 31 March 2023.

During the year, shares held by SH Kelkar Employee Benefit Trust (Trust) in the Company were divested. The proceeds from the sale were utilised to reduce the Companys debt, and the resulting loss from this transaction has been adjusted with the reserves.

Business outlook

Business growth was impacted in the recent years due to various external factors. However, the Company remains committed to growth and scaling up the global operations. The growth-oriented focus is fuelled by strong global presence, solid client base, robust cash flows and unwavering focus on R&D.

The Companys transformative turnaround initiatives over the past 12-15 months have laid a strong foundation. The Company is well prepared in terms of capacity to scale up operations efficiently to meet the increasing demand and capitalise on any such business opportunities. F&F industry is well known for its high entry barriers, particularly in establishing new accounts.

Owing to the dedicated efforts by the R&D, perfumers, marketing, and other teams for over 2 years, the Company was successful in securing multiple order wins from a global MNC player. This success is a testament to the teams perseverance and innovation capabilities and marks a significant breakthrough in

The Company reported a robust performance, despite facing significant challenges arising from geopolitical uncertainty. Emerging markets contributed to 79% of business with 15.1% growth over previous year and Europe business comprising Creative Flavours and Fragrances S.p.A and Holland Aromatics BV, core business grew 7.4% on constant currency basis.

penetrating the tightly held global accounts meeting stringent global standards of the F&F industry. Although the business contribution from the initial orders is modest, the Company remains fully committed to develop this partnership in the long-term with substantial growth potential over the next 3 to 5 years.

The Company remains optimistic about its long-term business growth prospects in both domestic and international F&F markets. The Company is committed to investing in capacity building and enhancing technical capabilities, while maintaining strict adherence to all requisite regulatory compliances and confer to highest quality standards.

Quality management

? All the Companys facilities are certified with FSSAI, ISO 9001:2008, ISO 14001:2015, FSSC 22000, ISO 2000:2005, ISO 9001, ISO/TS 22002-12009, ISO 14001 and ISO 45001 along with USFDA registration. The Company has in place rigorous certifications like HACCP for food safety, Integrated Management System for environment and occupational safety

? To foster a safe, healthy and productive work environment, the Company ensures strict adherence to rigorous HSE (Health, Safety and Environment) policy

? R educed the quantity of wastes incinerated by it through GPCB-approved co-processing and preprocessing facilities, thereby reduced the carbon emission and supported in reduction of fossil fuel consumption

? Installation of closed loop chemical transferring system to avoid emissions to the environment and avoiding human exposure to chemicals

? Acknowledged for in-house development of innovative molecules in the R&D centre by Department of Scientific and Industrial Research (DSIR)

? SAP-enabled processes facilitate better efficiency

? State-of-the-art plant is installed at the testing laboratory with modern scientifically advanced machinery including gas chromatographs, density meters, automatic polarimeters, tint meters, _ashpoint testers, microbiological testing, etc.

? Strict adherence to world standard quality control practices

? Strict adherence to clean environment policies with e_uent treatment plants installed at all facilities in close proximity

? The Companys plant is a Zero Liquid Discharge unit

Outlook:

In the F&F industry, strict adherence to compliance and conferment to highest quality standards are a pre-requisite. The Company is determined to ensure all products comply with all applicable regulatory compliances and conform with highest quality standards, both in domestic and international markets. Leveraging its stronghold in digitalisation, project portfolio management, innovation, process standardisation, and capability building, the Company aims to create a unique recall among the environment-conscious customers preferring greener, safer and more sustainable products.

Risk management

Succession planning for key managerial positions: In the absence of a strategic management team with a well-defined vision, loss of institutional knowledge, business growth and continuity may get hampered.

Mitigation: Thoroughly-crafted training and development opportunities are provided to employees with talent to foster in-house talent progression. This enables the Company to have a team with the Companys long-term growth vision well absorbed, ensuring smooth succession. The Companys comprehensive succession plans identify and groom potential successors, provide ongoing leadership development and training, regularly review and update succession strategies to adapt to changing circumstances. Cross-training and knowledge-sharing among employees enables the distribution of critical skills and reduces dependence on individual leaders.

Innovation risk: To maintain leadership position, it is imperative for the Company to stay relevant with changing times. Lack of innovative products pose a risk to the Companys dominance in the market.

Mitigation: Innovation is a key pillar of growth in SHK. The Company has significantly invested in a well-equipped R&D facility and a skilled team of professionals. The team is responsible for innovating superior products amidst a dynamic environment. The Company is embracing sustainability with well-defined goals. In addition, the Company is creating capability for in-house safety testing to fulfil increased expectations of Quality and Safety.

The Company constantly endeavours to find natural substitutes for chemical syntheses. Extensive research across two complementing divisions – Plant Biotechnology and Microbiology, allows the Company to conserve and propagate endangered plant species, and carry out efficacy studies of formulations, respectively. The Company employs cutting-edge techniques like genetic engineering, molecular marker technology, tissue culture studies, in-vitro antimicrobial testing, in-vivo efficacy studies, and more, to arrive at pioneering bio-transformations and gene cloning.

The Company constantly endeavours to find natural substitutes for chemical synthesis. Extensive research across two complementing divisions

– Plant Biotechnology and Microbiology, allows the Company to conserve and propagate endangered plant species, and carry out efficacy studies of formulations, respectively.

The Company is committed to innovation, portfolio expansion, enhancing reach through relevant channels, and investment in consumer testing and consumer studies. The Company adeptly adapts to the dynamic shifts in market trends by prioritising the enhancement of its innovation capabilities. The Company is constantly striving to enhance its research capabilities for new molecules with improved biodegradability profile.

Data security and cyber risk: Amidst high proliferation of digitalisation and technology, business is undoubtedly exposed to data and cyber security risk.

Mitigation: Substantial investments are in place to ensure data protection, identification of critical IT systems of business and a recovery plan. ISO standards are followed for security implementation. Adequate security for data rooms and in-house data room for the protection of servers are in place. To further strengthen data security, the Company has implemented latest cyber security technologies with preventive, detective and reactive controls including firewalls, encryption, multi-factor authentication, and regular security audits. To ensure continuity of operations, the Company implements internal assessments for controls.

ESG compliances risk: It is mandatory for the Company to adhere to appropriate ESG compliances given the nature of the industry it operates in.

Mitigation: Every site of the Company has been assigned scope and tasks in accordance with a carefully crafted 3-phase roadmap. Adequate investments are being made for the installation of energy-e_cient systems for energy conservation and emission reduction. The Company has Reverse Osmosis Plant, Multi Effect Evaporator and foodie machines which convert waste food into manure. The Company has successfully embarked on the journey to increase renewable and clean energy share and to phase-out fossil fuel consumption completely.

The Company has successfully registered for Extended Producer Responsibility (EPR) to ensure collection, proper recycling/co-processing and environmentally safe disposal of plastic waste. It is investing in low-carbon technologies and equipment.

Geographical business risk: Presence in multiple geographies makes the Company susceptible to the economic situations in those regions. Risk increases if concentration of business in a particular geography increases, leading to greater sensitivity to changes in market conditions.

Mitigation: The Companys strong disaster recovery plan along with its strategically designed 3I 3C Strategy, enables it to expand its business operations in a calibrated manner mitigating the risks of high geographic concentration.

Competition risk: Heightened competitive intensity due to the lucrative growth prospects of the industry, increases the risk from both domestic and international players.

Mitigation measures: The Company has crafted a unique spot for itself in the F&F industry led by its rich heritance, strong brand equity, long-standing business relationships, unwavering focus on innovation and creativity, strong balance sheet, skilled team and continuous management support. This enables the Company to outperform the market and enjoy high brand equity, keeping competition at bay.

Internal control and their adequacy

The Companys well-crafted internal controls system is in keeping with the nature, size and complexity of its business operations. All business processes are required to adhere to comprehensive policies, guidelines and procedures. The internal control system ensures that financial and other records are reliable for preparing financial and other statements and for maintaining accountability of assets.

The Audit Committee of the Board of Directors is responsible for monitoring all business operations and ensure proper functioning of the internal audit functions. The findings of internal audit are vetted by the Audit Committee, which is also responsible for periodically suggesting appropriate actions, as deemed fit. The internal assessment is responsible to assess the existence, adequacy and operation and to ensure compliance with Companies Act, 2013, SEBI Listing Regulations and policies of the Company. Any deviations in business operations are detected and addressed by the internal controls.

Human resources

The Company considers human capital a crucial pillar of growth. The Company recruits from campuses and undertakes later hiring to ensure a high-quality talent pool. ‘Ear2Hear, an Employee Assistance Programme (EAP), extends consultation on personal issues – professionally and confidentially, to the Companys employees and their family members.

PACT – Promise of Accountability, Commitment and Teamwork, an impactful morale-boosting programme helps employees in holistic career growth. Existing employees are offered differentiated engagement plans, conducive work habitats with short-term and medium-term international exposure and learning opportunities. The Company prioritises the health & safety of its employees, business partners and communities.

People-centric approach enables the Company to attract and retain the right talent. The Company follows a "people first" attitude and endorses performance-driven culture. This helps to foster a productive work environment. In-house talent is groomed with an integrated knowledge base of both _avours and fragrances.

Details of Significant Changes (i.e. changes of 25% or more as compared to the immediately previously financial years) in Key financial ratios, along with detailed explanations therefore, including details of any change in Return on Net Worth as compared to the immediately previous financial year along with a detailed explanation thereof:

	FY 2023-24	FY 2022-23	Change %	Remark
Net Profit Margin (%)	6.43%	3.75%	71.26%	Increase on account of better margin management
Return on Networth	10.09%	5.75%	75.64%	On account of increase in profitability