Final Assignment on FINANCIAL ANALYSIS of

NISHAT CHUNIAN Ltd.

Submitted to: Sir Muhammad Rizwan Siddiqui

Submitted by:

Daniyal Baig (db)

St. ID # 12439 Submission Date: January 01, 2012

Acknowledgement
By the grace of Almighty Allah, I have completed the financial analysis on Nishat Chunian Ltd. for the year 2010 and 2011. This assignment will help me a lot in broaden my way of thinking and taking corrective measures in the future. I am very thankful to the subject teacher, Sir Muhammad Rizwan Siddiqui, who gave me the opportunity to learn Introduction to Financial Management by providing different techniques, precious examples and helpful guidance in making this course understandable as well as Sirs full coordination in making
2

this report easy. No doubt this assignment will help us a lot in future and provide us a chance to work in a broader aspect.

LETTER OF TRANSMITTAL
January 01, 2012 Mr. Muhammad Rizwan Siddiqui Institute of Business Management Karachi Dear Mr. Siddiqui: With all due respect and esteem admiration, here is the final assignment on financial analysis on Nishat Chunian Ltd. The data presented in this report as ratio analysis is been calculated through the annual report of Nishat Chunian Ltd. However, it also included secondary data as well which is collected from Business Recorder and Karachi Stock Exchange site.

In this report, I tried my best in analyzing whether to invest in this company or not as a potential shareholder by comparing all the ratios of 2010 and 2011. However, the company is well in resources, management teams and marketing personnel. The information provided in this report will help in understanding it well.

Sincerely, Daniyal Baig Std: 12439

CHAPTER 01
RATIO ANALYSIS
1. Short Term Analysis/ Liquidity Analysis / Solvency Ratios:
A. Net working Capital = Current Assets - Current Liabilities In 2011: 16,094,062,942 - 13,270,579,775 = 2,823,483,170 In 2010: 10,454,425,019 - 10,755,625,154 = 301,200,140 Growth: 8.37 times B. Current Ratio = Current Assets/ Current Liabilities In 2011: 16,094,062,942 - 13,270,579,775 = 1.212 In 2010: 10,454,425,019 / 10,755,625,154 = 0.971 Growth: 24.8% C. Acid Test Ratio or Quick Ratio = (Current Assets - Inventory) / Current Liabilities In 2011: (16,094,062,942 - 5,178,429,523) / 13,270,579,775 = 0.822

In 2010: (10,454,425,019 - 3,560,305,415) / 10,755,625,154 = 0.64 Growth: 28.43%

Graphical Representation:
3 2.5 2 1.5 1 0.5 0 A B C 2010 2011

The above graph shows A, B and C as Net working Capital, Current Ratio and Acid Test Ratio respectively for the year 2010 and 2011.

Analysis:
There is an increase in net working capital from 2010 to 2011 as 8.37 times or 837% which is a very positive sign. Along with this, we if compare the difference of current ratio with the acid test ratio of 2011 it will be 0.39 and for 2010 it is 0.33, so both the differences are less than 0.45 which is considered as the bench marks. As the current ratio has steadily increased, it is to be noted that the liquidity has not resulted from the most assets. Instead, from the quick ratio one could note that the increase in liquidity is caused by an increase in inventories.

2. Turnover Ratios (In-Time):

A. Inventory Turnover = Cost of Goods Sold / Average Inventory In 2011: 32,662,974,975 / 4,369,367,469 = 7.47 times In 2010: 10,661,332,976 / 2,899,983,066.5 = 3.67 times Growth: 103.5% B. Debtor Turnover = Net Credit Sales / Average Debtor In 2011: 40,675,056,941 / 591,467,944.5 = 68.77 times

In 2010: 13,343,539,563 / 352,642,653 = 37.83 times Growth: 81.78% C. Creditor Turnover = Net Credit Purchase / Average Creditor In 2011: 32,662,974,975 / 1,547,961,086.5 = 21.1 times In 2010: 10,661,332,976 / 996,185,335 = 10.7 times Growth: 97.2%

Graphical Representation:
35 30 25 20 15 10 5 0 A B C 2010 2011

The

above

graph

shows A, B and C as Inventory

Turnover, Debtor Turnover and Creditor Turnover in time respectively for the year 2010 and 2011.

Analysis:
The inventory turnover in 2011 is much more than 2010, which means that resources are being employed unproductively which is not a good sign because it shows that company is going towards insolvency or liquidity. In 2010, debtor turnover was better as compared to 2011 which
increases to 81.78% having negative sign for the company. Same is the case for creditors turnover. In 2010 they were paying off their liabilities earlier as compared to 2011.

3. Turnover Ratios (In-Days):

A Inventory Turnover = Average Inventory * 365 / Cost of Goods Sold
In 2011: 4,369,367,469 * 365 / 32,662,974,975 = 48.8 Days In 2010: 2,899,983,066.5 * 365 / 10,661,332,976 = 99.4 Days Growth: 50.9% Improved

B Debtor Turnover = Average Debtor * 365 / Net Credit Sales

In 2011: 591,467,944.5 * 365 / 40,675,056,941 = 5.3 Days

In 2010: 352,642,653 * 365 / 13,343,539,563 = 9.6 Days Growth: 44.8% Improved

C Creditor Turnover = Average Creditor * 365 / Net Credit Purchase

In 2011: 1,547,961,086.5 * 365 / 32,662,974,975 = 17.3 Days In 2010: 996,185,335 * 365 / 10,661,332,976 = 34.1 Days Growth: 49.2% Improved

Graphical Representation: 100 80 60

2010

40 20 0

2011

The above graph shows A, B and C as Inventory Turnover, Debtor Turnover and Creditor Turnover
in days respectively for the year 2010 and 2011.

Analysis:
The turnover ratios in days for the year 2011 is approximately half as compared to year 2010 which means the company has doubled their efforts to improve it upto this level, which is very satisfactorily.

4. Leverage / Capital Structure:

A. Debt Burden = Total Debt (long term debt + Short term debt) / Total Equity
In 2011: (17,145,214,989 + 8,219,915,747) / 8,647,947,815 = 2.933 In 2010: (17,721,442,341 + 6,492,739,649) / 6,009,283,544 = 4.029 Growth: 27.2% Improved

B. Debt Ratio = Total Debt (long term debt + Short term debt) / Total Assets
In 2011: (17,145,214,989 + 8,219,915,747) / 39,063,742,579 = 0.649 In 2010: (17,721,442,341 + 6,492,739,649) / 34,486,351,039 = 0.702 Growth: 7.5% Improved

C. Interest Cover = Earnings before Interest & Tax (EBIT) / Interest In 2011: 7,346,988,422 / 4,357,248,680 = 1.686 In 2010: 2,224,921,613 / 1,101,054,097 = 2.02 Growth: 16.53% Improved

Graphical Representation: 2.5 2 1.5

2010

1 0.5 0

2011

The above graph shows A, B and C as debt burden, debt ratio and interest cover respectively for the year 2010 and 2011.

Analysis:
The above leverage ratios i.e. debt burden and debt ratio in year 2011 is less than 2010, which is a better sign because as low as the value, better it is. The debt-to-equity ratio tells us that the firm has become less levered. To get a better idea about the proportion of debt, we can turn the D/E ratio into the D/V ratio, so based on this; it is rather difficult to give a qualitative judgment beyond observing the drop in leverage. In terms of the firms ability to pay interest, 2011 doesnt look good. However, the times interest earned uses EBIT as a proxy for the ability to pay for interest, cash flow should be considered instead of earnings.

5. Profitability Ratios:
A. Gross Margin = Gross Profit / Sales In 2011: 8,012,081,966 / 40,675,056,941 = 19.60% In 2010: 2,682,206,587 / 13,343,539,563 = 20.10% Growth: (2.48%) B. Net Margin = Net Profit / Sales In 2011: 2,771,951,100 / 40,675,056,941 = 6.80% In 2010: 988,781,241 / 13,343,539,563 = 7.41% Growth: (8.23%)

Graphical Representation:

25 20 15 10 5 0 A B 2010 2011

The above graph shows A and B as Gross Margin and Net Margin respectively for the year 2010 and 2011.
C. Operating Margin = Operating Expense / Sales In 2011: 145,331,249 / 40,675,056,941 = 0.35% In 2010: 80,333,501 / 13,343,539,563 = 0.60% Growth: 41.67% Improved D. Administrative Margin = Administrative Expense / sales In 2011: 171,037,680 / 40,675,056,941 = 0.42% In 2010: 117,509,568 / 13,343,539,563 = 0.88% Growth: 52.27% Improved E. Selling Margin = Selling Expense / Sales In 2011: 599,586,283 / 40,675,056,941 = 1.47% In 2010: 438,360,713 / 13,343,539,563 = 3.25% Growth: 54.76% Improved F. Financial Margin = Financial Expense / Sales In 2011: 4,357,248,680 / 40,675,056,941 = 10.71% In 2010: 1,101,054,097 / 13,343,539,563 = 8.25% Growth: 29.8% Improved

Graphical Representation:

10

4 3.5 3 2.5 2 1.5 1 0.5 0 C D E F

2010 2011

The above graph shows C, D, E and F as Operating Margin, Administrative Margin, Selling
Margin and Financial Margin respectively for the year 2010 and 2011.

Analysis:
The gross profit and the net profit in the year 2011 is declined by 2.48% and 8.43% respectively, which is a negative sign for the company and for the shareholders as well whereas the operating margin, administrative margin, selling and financial margin are decreased in year 2011 as compared to last year which is a positive sign thus the amount is shown in green color representing by how much percentage it has been improved.

6. Profitability Ratios Related to Investment:

A. Return on Investment = Profit after Tax / Capital Employed In 2011: 2,771,951,100 / 25,793,162,804 = 10.74% In 2010: 988,781,241 / 23,730,725,885 = 4.16% Growth: 1.58 times B. Return on Asset = Profit after Tax / Total Asset In 2011: 2,771,951,100 / 39,063,742,579 = 7.10% In 2010: 988,781,241 / 34,486,351,039 = 2.86% Growth: 1.48 times

11

C. Return on Capital Employed = Profit before Interest & Tax / Capital Employed In 2011: 7,346,988,422 / 25,793,162,804 = 28.48% In 2010: 2,224,921,613 / 23,730,725,885 = 9.37% Growth: 2.04 times D. Capital Employed = Total Assets - Current Liabilities In 2011: 39,063,742,579 - 13,270,579,775 = 25,793,162,804 In 2010: 34,486,351,039 - 10,755,625,154 = 23,730,725,885 Growth: 8.7%

Graphical Representation:
30 25 20 15 10 5 0 A B C D
2010 2011

The above graph shows A, B, C and D as Return on Investment, Return on Asset, Return on
Capital Employed and Capital Employed respectively for the year 2010 and 2011.

Analysis:
The profitability ratios related to investment in year 2011 is pretty good as compared to 2010, which is a positive sign because more the values, better is the return.

7. Asset Turnover Ratio/ Investment Turnover Ratio:

A. Asset Turnover = Sales / Avg. Total Asset
In 2011: 40,675,056,941 / 36,775,046,809 = 1.10 times In 2010: 13,343,539,563 / 27,140,821,899.5 = 0.47 times Growth: 134%

B. Fixed Asset Turnover = Sales / Avg. Fixed Asset 12

In 2011: 40,675,056,941 / 23,500,802,828.5 = 1.73 times In 2010: 13,343,539,563 / 19,590,956,874.5 = 0.67 times Growth: 158.2 %

C. Capital Turnover = Sales / Average Capital

In 2011: 40,675,056,941 / 7,328,615,679.5 = 5.55 times In 2010: 13,343,539,563 / 4,727,383,855.5 = 3.24 times Growth: 71.3%

D. Current Asset Turnover = Sales / Avg. Current Asset

In 2011: 40,675,056,941 / 13,274,243,980.5 = 3.06 times In 2010: 13,343,539,563 / 7,549,865,025 = 1.84 times Growth: 66.3 %

Graphical Representation:
4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 A B C D

2010 2011

The above graph shows A, B, C and D as Asset Turnover, Fixed Asset Turnover, Capital Turnover
and Current Asset Turnover respectively for the year 2010 and 2011.

Analysis:
All the above turnover ratios for the year 2011 is doubled than the last year which is a good sign because more the turnover better for the company. However, here I took sales as nominator; we can also compare it with C.G.S as well.

8. Working Capital Cycle / Cash Operating Cycle / Working Capital Planning:

Inventory Turnover Days = (Avg. Inventory x 365) / C.G.S Add Debtors Turnover Days = (Avg. Debtor x 365) / Net Credit Sales

13

Less Creditors Turnover Days = (Avg. Creditors x 365) / Net Credit Purchase Working Capital Cycle In 2011: (4,369,367,469 x 365) / 32,662,974,975 = 48.86 (591,467,944.5 x 365) / 40,675,056,941 = 5.3 (1,547,961,086.5 x 365) / 32,662,974,975 = 17.29 = 37 Days In 2010: (2,899,983,066.5 x 365) / 10,661,332,976 = 99.45 (352,642,653 x 365) / 13.343.539.563 = 9.64 (996,185,335 x 365) / 10,661,332,976 = 34.11 = 75 Days Growth: 50.6% improved

Graphical Representation:
80 70 60 50 40 30 20 10 0 Days
2010 2011

Analysis:
In 2010, the working capital cycle was consist of 75 days whereas in 2011 it has improved upto 37 days which is 50.6% betterment in the planning cycle and excellent for the company.

CHAPTER 02
Nishat Chunian Ltd. in the view point of Business Recorder
Article Published on August 18, 2011:
The following article which is an analytical report on Nishat Chunian Ltd. was published in Business Recorder on August 18, 2011 by the Economics and Finance Department of Institute of Business Administration (IBA) Karachi.

FINANCIAL ANALYSIS OF NISHAT CHUNIAN Ltd.

Profitability Sales revenue has shown an upward trend since 2006, with the best performance in this regard in FY10.

14

Sales during the year 2010 were the highest ever at Rs 13.34 billion, as compared to Rs 9.96 billion during last year which is an increase of 33.9 percent. Part of this rise owes to home textiles; sales of which increased to $48 million in FY10 from $25 million in FY09, resulting in better capacity utilization. Sales revenue increased because of higher product prices, higher exchange rate parity and better capacity utilization. At the same time, cost of sales increased by 27 percent from FY09 to FY10. In spite of the increase in the cost of goods sold, profit after tax increased by 801 percent from FY09 to FY10. Major contribution to the increase in profitability in FY10 came from the sharp increase in prices of yarn which is used in the spinning business. The positive variances in the sales, gross profit and profit after tax led to 30 percent return on shareholder's equity during FY10. The EBIT ratio increased from 12 percent in FY09 to 16 percent in FY10, signaling an increase in the company's profitability. The company's net profit margin significantly improved to 7.06 percent in FY10 as compared to 1.0 percent in FY09 due to the year-on-year reduction in interest expenses from 10.85 percent of sales in FY09 to 8.25 percent of sales in FY10. Liquidity The current ratio has increased gradually from 0.81 in FY09 to 0.85 in FY10, which suggests that short run liquidity is not a problem for the company. Even though a decline from 0.43 to 0.37 has been observed in the quick ratio, the liquidity position is strong as this decline only signals towards the investment committed by the company on its subsidiary, NCPL.

Debt Management Despite capital expenditure on textile machinery and investment made in NCPL, leverage ratios of NCL have improved over last year. This is credited to the company's conservative capital structure. Total debt to equity ratio also improved to 69:31 in FY10 as compared to 74:26 for the previous year. Long term debt has fallen by 14 percent in FY10. High interest rates and the company's requirement for higher level of borrowing for investment in NCPL led to a 53 percent increase in the borrowing cost from FY08 to FY09. Till the end of FY10, this cost remained high, with a small increase of 1.8 percent coming from FY09. With NCPL now operational and no new investment or expansion projects in the pipeline, it is expected that this cost will reduce in coming years. Operational Efficiency The company has been able to improve its overall production efficiency and resource utilization capacity. This can be seen by the jump in its fixed asset turnover ratio from 1.20 in

15

FY08 to 2.24 in FY10. Profit after tax attributable to shareholders has increased by 839 percent from FY09 to FY10. Market Value There has been a phenomenal improvement in the earnings per share of the company. It rose from 0.22 in FY08 to 1.19 in FY 09, moving up to 7.89 in FY10. Future Prospects Pakistan's main cotton growing areas in Punjab and Sindh have been severely affected by the devastating floods of 2010. On account of damage to the cotton crop in Pakistan and less cotton production in China, cotton rallied to the highest price in more than 15 years, before receding sharply in recent weeks. The outlook for the performance of the textile sector for the remainder of this year remains uncertain, so far given the relatively weak performance of cotton on international markets. In order to raise equity from the capital markets, NCL planned a privately-placed Term Finance Certificate issue worth Rs 500 million. Proceeds from this TFC issue were disbursed to NCL in September 2010. NCPL is fully operational and is dispatching electricity as per the requirement of WAPDA. It is expected to have healthy profitability with minimum variation in profits. The company expects to receive cash dividends of around PKR 300-400 million every year from NCPL. It is hoped that steady stream of dividends from NCPL will help NCL smoothen out variations in its earnings.

Article Published on November 01, 2011: NISHAT CHUNIAN SUFFERS RS. 85.889 MILLION AFTER-TAX LOSS
On November 01, 2011, it was published in Business Recorder that Nishat (Chunian) Limited has posted Rs 85.889 million as after-tax loss in the quarter ended on September 30, 2011 as compared to Rs 477.454 million profit after tax posted in the corresponding quarter in 2010.

16

500 400 300 200 100 0 -100 After Tax Earnings 2010 2011

The board of directors of the company in its meeting held on Monday declared that the company's loss per share (basic) stood at Re 0.53 in the period under review against earning per share of Rs 3.01 in the same period of last year while loss per share (diluted) stood at Rs 0.52 in this period against earning per share of Rs 2.89 in the same period last year.

3.5 3 2.5 2 1.5 1 0.5 0

EPS Vs. Loss Per Share

2010

2011

According to the financial results sent to Karachi Stock Exchange, the company's sales increased to Rs 4.1134 billion in this quarter against Rs 3.820 billion in the same quarter last year.

The cost of sales increased to Rs 3.774 billion against Rs 2.893 billion. The company posted Rs 44.709 million as loss before taxation in this quarter against profit before taxation of Rs 515.977 million in the same quarter of 2010.

17

600 500 400 300 200 100 0 -100

Earnings after Tax

2010 2011

CHAPTER 03

18

Nishat Chunian Ltd. According to Karachi Stock Exchange (KSE)

December 01 to 31, 2010
Rate Opening Closing Diff High Dec 31 22.53 22.72 0.19 23.20 Date Dec 30 Dec 29 Dec 28 Dec 27 Dec 24 Dec 23 Dec 22 Dec 21 Dec 20 Dec 15 Dec 14 Dec 13 Dec 10 Dec 09 Dec 08 Dec 07 Dec 06 Dec 03 Dec 02 Dec 01 22.05 22.51 22.80 22.65 22.63 23.11 22.78 22.40 22.28 21.71 21.55 21.61 21.40 22.12 22.25 22.39 22.93 22.87 22.02 22.77 22.53 22.05 22.51 22.80 22.65 22.63 23.11 22.78 22.40 22.28 21.71 21.55 21.61 21.40 22.12 22.25 22.39 22.93 22.87 22.02 0.48 -0.46 -0.29 0.15 0.02 -0.48 0.33 0.38 0.12 0.57 0.16 -0.06 0.21 -0.72 -0.13 -0.14 -0.54 0.06 0.85 -0.75 22.97 22.75 23.00 23.04 22.80 23.24 23.46 23.28 22.84 22.79 21.94 21.95 22.01 22.15 22.60 22.75 23.18 23.49 22.95 23.22 Turnover Trading Market Paid-up Calls Trades Value Capitalisation Capital Low Average Total Cross 22.50 22.96 1,917,658 ----- 2,819,129,408 1,240,814,000 22.11 22.01 22.45 22.63 22.35 22.50 22.74 22.50 22.28 21.62 21.63 21.51 21.15 21.25 22.00 21.90 22.30 22.81 22.15 21.91 22.62 1,171,073 22.21 22.88 22.60 939,557 305,705 567,802 22.80 1,472,395 -------------------------------------------------------------- 2,795,553,942 1,240,814,000 -- 2,735,994,870 1,240,814,000 -- 2,793,072,314 1,240,814,000 -- 2,829,055,920 1,240,814,000 -- 2,810,443,710 1,240,814,000 -- 2,807,962,082 1,240,814,000 -- 2,867,521,154 1,240,814,000 -- 2,826,574,292 1,240,814,000 -- 2,779,423,360 1,240,814,000 -- 2,764,533,592 1,240,814,000 -- 2,693,807,194 1,240,814,000 -- 2,673,954,170 1,240,814,000 -- 2,681,399,054 1,240,814,000 -- 2,655,341,960 1,240,814,000 -- 2,744,680,568 1,240,814,000 -- 2,760,811,150 1,240,814,000 -- 2,778,182,546 1,240,814,000 -- 2,845,186,502 1,240,814,000 -- 2,837,741,618 1,240,814,000 -- 2,732,272,428 1,240,814,000

22.87 1,368,479 23.13 4,320,225 22.89 3,262,335 22.60 1,756,743 22.34 3,394,788 21.77 21.71 548,447 700,375

21.72 1,115,251 21.67 1,573,365 22.36 975,618 22.34 2,148,332 22.72 1,057,297 23.18 3,126,566 22.62 3,372,292 22.53 4,956,976

Trend of the above Table:

December 01 to 31, 2011 Trend of the above Table:

19

Rate Opening Closing Diff High Low Average Dec 27 18.50 18.11 -0.39 18.55 18.10 18.14 Date Dec 26 Dec 23 Dec 22 Dec 21 Dec 20 Dec 19 Dec 16 Dec 15 Dec 14 Dec 13 Dec 12 Dec 09 Dec 08 Dec 07 Dec 02 Dec 01 18.50 18.20 18.24 17.84 16.84 16.21 16.52 16.97 16.00 16.03 16.54 16.30 15.98 15.97 16.00 15.73 18.50 -- 18.60 18.20 18.49 18.56 18.12 18.35 17.53 16.76 16.15 16.50 16.82 15.99 16.18 16.44 16.16 16.00 15.78 15.98 18.50 0.30 18.70 18.01 18.20 -0.04 18.30 17.80 18.24 0.40 18.60 17.90 17.84 1.00 17.84 16.75 16.84 0.63 16.98 16.28 16.21 -0.31 16.45 15.90 16.52 -0.45 16.70 16.20 16.97 0.97 17.00 16.05 16.00 -0.03 16.30 15.80 16.03 -0.51 16.80 15.90 16.54 0.24 16.65 16.10 16.30 0.32 16.35 15.91 15.98 0.01 16.49 15.75 15.97 -0.03 16.00 15.51 16.00 0.27 16.05 15.70

Turnover Trading Market Paid-up Calls Trades Value Capitalisation Capital Total Cross 46,781 ----2,928,102,673 1,616,843,000 628,109 889,086 101,528 1,017,453 912,147 235,267 101,618 305,845 579,848 136,676 60,861 167,366 101,995 190,225 275,541 80,841 ----------------------------------------------------------------2,991,159,550 1,616,843,000 2,991,159,550 1,616,843,000 2,942,654,260 1,616,843,000 2,949,121,632 1,616,843,000 2,884,447,912 1,616,843,000 2,722,763,612 1,616,843,000 2,620,902,503 1,616,843,000 2,671,024,636 1,616,843,000 2,743,782,571 1,616,843,000 2,586,948,800 1,616,843,000 2,591,799,329 1,616,843,000 2,674,258,322 1,616,843,000 2,635,454,090 1,616,843,000 2,583,715,114 1,616,843,000 2,582,098,271 1,616,843,000 2,586,948,800 1,616,843,000

Whole Year Trend 2010-2011:

CONCLUSION:
From the ratio analysis, articles of business recorder and the above trend of KSE-100 index about Nishat Chunian Ltd., I have reached to the conclusion that the company is growing in the

20

year 2011 as compared to 2010 but with negative growth as there is less increase in volume as compared to last year but the hyper inflation in the cost of cotton due to flood has raised the value (Rs.) which caused to increase in the Revenue (P x Q). Thus the increase in growth is not due to volume but value. The liquidity ratios and turnover ratios (In-Days) in 2011 are showing positive trend but the profitability ratios including Gross Margin and Net margin both are showing negative trend with 2.48% and 8.23% respectively as compared to last year which is very shocking for the common stock shareholders as they wont get any dividend this year. But it doesnt mean that potential shareholders shouldnt invest in the organization because the organization is overall performing well but the natural disaster in the form of flood for the last two years, energy crisis and the worst-recession in the country has caused Nishat Chunian to record negative margin. However, it is still within 10% so they will easily cover it so the investors should invest in it next year after having a look on quarterly report.

21