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KANSAINER - Kansai Nerolac

📊 NSE: KANSAINER 🏢 Paints / Varnishes 📅 Last Updated: 12/14/2025 8:48

📢 Recent Corporate Announcements

Kansai Nerolac Shareholders Approve Merger of Nerofix Private Ltd with 99.99% Majority

🟢 POSITIVE ⭐ 8/10

M&A 📅 27 Feb 2026, 05:02 PM

Kansai Nerolac Paints Limited (KNPL) held an NCLT-convened meeting on February 27, 2026, to seek shareholder approval for the amalgamation of Nerofix Private Limited into the company. The resolution was passed with an overwhelming majority, with 99.9992% of the total votes cast in favor of the scheme. A total of 69.92 crore votes were polled in favor, while only 5,417 votes were cast against the proposal. The merger aims to consolidate operations and simplify the corporate structure under the parent entity.

Shareholders approved the Scheme of Amalgamation of Nerofix Private Limited with Kansai Nerolac Paints.
The resolution received 99.9992% votes in favor (69,92,67,642 votes) and negligible opposition (0.0008%).
Promoter and Promoter Group voted 100% in favor, representing 60.62 crore shares.
The meeting was conducted via Video Conferencing as per the NCLT Mumbai Bench order dated January 6, 2026.

💡 Investors should view this as a positive step towards corporate consolidation and operational synergy. No immediate action is required as the merger proceeds toward final regulatory approvals and implementation.

Kansai Paint Japan Hosts Strategy Briefing on India Operations for Kansai Nerolac

🔵 WATCH ⭐ 6/10

ROUTINE 📅 26 Feb 2026, 05:19 PM

Kansai Paint Co., Ltd., Japan, the promoter of Kansai Nerolac, conducted a conference call on February 26, 2026, to discuss the business strategy for its Indian operations. The call was held at 12:30 PM IST and targeted institutional investors and analysts to provide clarity on the parent company's vision for the region. The company has made the audio recording available on its website, with a written transcript expected to be filed shortly. This briefing is significant as it provides direct insights from the Japanese parent on the growth trajectory and strategic priorities for the Indian market.

Parent company Kansai Paint Co., Ltd., Japan hosted a dedicated briefing on India business strategy on February 26, 2026.
The session was aimed at institutional investors and analysts to outline long-term strategic goals.
Audio recording of the conference call has been officially released on the company's investor relations portal.
A formal written transcript of the strategy session will be shared with the BSE and NSE in due course.

💡 Investors should review the audio recording or upcoming transcript to understand the parent company's specific growth targets and capital allocation plans for the Indian market. Monitor for any shifts in strategy regarding the competitive decorative paint segment or industrial coatings.

Kansai Nerolac Strategy Update: Auto Market Share Hits 61% Amid Efficiency Gains

🟢 POSITIVE ⭐ 8/10

EXPANSION 📅 24 Feb 2026, 12:29 PM

Kansai Nerolac (KNPL) is leveraging its parent company's global expertise to drive a 'Business Transformation' in India, focusing on high-growth segments. The company has successfully expanded its automotive market share to 61% and maintains a dominant 70%+ share in the 2/3 wheeler category. Operational improvements are evident as the Cash Conversion Cycle was reduced to 82 days from 94 days. Management is targeting double-digit growth in Decorative and Construction Chemicals, aiming to consistently outperform the broader market growth rates of 7-10%.

Automotive market share increased to 61% in FY2024, up from 58.1% in FY2022.
Dominant 70%+ market share in the 2/3 wheeler segment across major Indian customers.
Cash Conversion Cycle (CCC) improved significantly to 82 days from 94 days in the previous year.
Added over 3,500 dealers to the decorative network to counter hyper-competition from new entrants.
Targeting 15%+ growth in Construction Chemicals, significantly higher than the 8-10% estimated market average.

💡 The company's leadership in industrial and automotive coatings provides a defensive cushion against the intense competition currently seen in the decorative paint segment. Investors should monitor the execution of the 15% growth target in Construction Chemicals as a key driver for future margin expansion.

Kansai Nerolac Promoter to Host Strategy Briefing on India Operations on Feb 26, 2026

🔵 WATCH ⭐ 4/10

ROUTINE 📅 20 Feb 2026, 06:17 PM

Kansai Paint Co., Ltd., Japan, the promoter of Kansai Nerolac Paints Limited, has scheduled a conference call for February 26, 2026. The call is set for 12:30 PM IST and will focus specifically on a business strategy briefing for the company's India operations. This group call provides an opportunity for institutional investors to gain insights into the promoter's long-term vision for the Indian market. Investors should monitor the discussion for updates on competitive positioning and growth targets.

Promoter Kansai Paint Co., Ltd., Japan to host a group conference call on February 26, 2026.
The session is scheduled for 12:30 PM IST (4:00 PM Japan Standard Time).
The primary agenda is a business strategy briefing regarding the company's India operations.
The meeting is conducted in compliance with Regulation 30(6) of SEBI Listing Obligations.

💡 Investors should watch for the post-call transcript or summary to understand the promoter's strategic priorities and investment commitment to the Indian subsidiary. No immediate trading action is required based solely on the meeting schedule.

Kansai Nerolac Q3 FY26: Revenue Up 3.1%, Maintains 13-14% EBITDA Margin Guidance

🟡 NEUTRAL ⭐ 7/10

EARNINGS 📅 10 Feb 2026, 05:02 PM

Kansai Nerolac reported a modest 3.1% consolidated revenue growth for Q3 FY26, driven by strong demand in the automotive segment following GST reforms. While decorative sales were initially impacted by a shorter festive season in October, management noted a significant recovery in November and December. The company successfully added 3,500 dealers and saw its premium 'Paint+' range reach a 10% contribution to decorative revenue. Despite intense competition from the AkzoNobel-JSW merger, management has maintained an EBITDA margin guidance of 13-14%.

Consolidated net revenue grew 3.1% YoY in Q3 FY26, while PBT before exceptional items declined 3.7%.
The premium Paint+ product category now contributes over 10% to the total decorative business revenue.
Expanded distribution network by adding 3,500 dealers and reaching 600+ specialty stores as of December 2025.
Management maintained a steady EBITDA margin guidance range of 13% to 14% despite rising competitive intensity.
Automotive segment witnessed strong growth momentum, while services now contribute over 5% to decorative sales.

💡 Investors should monitor the decorative segment's recovery and the impact of new competitive entrants on market share. The company's strong position in the industrial and automotive segments provides a hedge against decorative volatility.

Kansai Nerolac Discloses Audio Recording Link for Q3 FY 2025-26 Earnings Call

🟡 NEUTRAL ⭐ 3/10

ROUTINE 📅 04 Feb 2026, 03:09 PM

Kansai Nerolac Paints Limited has released the audio recording of its Q3 FY 2025-26 earnings conference call held on February 4, 2026. This disclosure is a standard regulatory requirement following the announcement of quarterly financial results. The recording allows investors to hear management's detailed commentary on the company's performance and strategic outlook. A written transcript of the session is expected to be filed with the stock exchanges and uploaded to the company's website shortly.

Audio recording of the Q3 FY 2025-26 conference call is now available on the company website.
The management interaction took place on February 4, 2026, at 11:00 AM IST.
Disclosure made in compliance with Regulation 30(6) of SEBI LODR Regulations, 2015.
A formal written transcript will be provided to the exchanges in due course.

💡 Investors should review the recording or the upcoming transcript to understand management's perspective on demand trends and competitive intensity in the paint sector.

Kansai Nerolac Q3 FY26: Consolidated Revenue Up 3.1% to ₹1,982 Cr; PBT Before Exceptional Down 3.7%

🟡 NEUTRAL ⭐ 8/10

EARNINGS 📅 03 Feb 2026, 10:13 PM

Kansai Nerolac reported a modest 3.1% YoY growth in consolidated revenue to ₹19,819.9 million for Q3 FY26, while PBT (before exceptional items) declined by 3.7% to ₹2,061.3 million. The decorative segment saw strong double-digit performance in construction chemicals and waterproofing, supported by the addition of over 3,500 dealers year-to-date. The industrial segment, particularly automotive, benefited from GST 2.0 and stable demand in general industrial coatings. However, profitability was pressured by higher operating expenses and a depreciating rupee, despite range-bound crude prices.

Consolidated revenue grew 3.1% YoY to ₹19,819.9 million, while PBDIT rose 2.0% to ₹2,396.9 million.
Decorative business added 3,500+ dealers YTD Dec’25, with double-digit growth in construction chemicals and waterproofing.
Industrial segment witnessed strong automotive growth fueled by GST 2.0 and stable demand in liquid/powder coatings.
Standalone PBT (before exceptional items) decreased by 3.7% YoY to ₹2,197.1 million due to rising operating costs.
Management outlook remains positive on infrastructure and automotive demand but warns of geopolitical and currency risks.

💡 Investors should monitor the company's ability to maintain margins amidst rising operating expenses and intense competition in the decorative segment. The stock remains a long-term play on automotive recovery and government infrastructure spending.

Kansai Nerolac Q3 FY26: Revenue Grows 3.1% YoY to ₹19,820 Million Amid Steady Auto Demand

🟡 NEUTRAL ⭐ 8/10

EARNINGS 📅 03 Feb 2026, 10:04 PM

Kansai Nerolac reported a modest 3.1% year-on-year growth in consolidated net revenue for Q3 FY 2025-26, reaching ₹19,819.9 million. While operating profit (PBDIT) saw a slight increase of 2.0% to ₹2,396.9 million, the Profit Before Tax (before exceptional items) declined by 3.7% to ₹2,061.3 million. The company continues to expand its reach, adding over 3,500 dealers year-to-date, and is seeing strong traction in the automotive and construction chemicals segments. However, bottom-line performance was impacted by a high base effect from the previous year's exceptional gains and rising operating expenses.

Consolidated Net Revenue increased by 3.1% YoY to ₹19,819.9 million for the quarter.
Decorative segment expanded its network by adding 3,500+ dealers YTD Dec’25.
Automotive segment witnessed strong growth fueled by GST 2.0 and stable demand in industrial coatings.
Consolidated PBT (before exceptional items) declined by 3.7% YoY to ₹2,061.3 million.
Double-digit growth recorded in specialized segments like construction chemicals and premium wood finishes.

💡 Investors should maintain a cautious outlook as revenue growth remains in the low single digits and margins are under slight pressure. Monitor the company's ability to manage commodity price volatility and its competitive positioning against new entrants in the decorative paint space.

Kansai Nerolac Executive Director Hirokazu Kotera Resigns Effective March 31, 2026

🟡 NEUTRAL ⭐ 4/10

MANAGEMENT 📅 03 Feb 2026, 09:56 PM

Kansai Nerolac Paints Limited has announced the resignation of Mr. Hirokazu Kotera from his role as Executive Director. The resignation is scheduled to take effect from the close of business on March 31, 2026. This move follows specific directions from the promoter entity, Kansai Paint Co. Ltd., Japan, which had originally nominated him to the board. The company's board accepted the resignation in a meeting held on February 3, 2026, and acknowledged his contributions during his tenure.

Mr. Hirokazu Kotera (DIN: 10707431) to resign as Executive Director effective March 31, 2026.
Resignation is based on directions from the Japanese promoter company, Kansai Paint Co. Ltd.
The Board of Directors approved the change during a meeting on February 3, 2026, which lasted over 4.5 hours.
The transition period allows for nearly two months before the official cessation of duties.

💡 This appears to be a routine administrative change by the promoter group and is unlikely to impact the company's operational strategy. Investors should watch for the appointment of a successor to maintain board composition.

Kansai Nerolac Executive Director Hirokazu Kotera to Resign Effective March 31, 2026

🟡 NEUTRAL ⭐ 4/10

MANAGEMENT 📅 03 Feb 2026, 09:53 PM

Kansai Nerolac Paints Limited has announced that Mr. Hirokazu Kotera will step down from his role as Executive Director effective March 31, 2026. The resignation follows a directive from the company's promoter, Kansai Paint Co. Ltd., Japan, which had originally nominated him to the board. The Board of Directors accepted the resignation during their meeting on February 3, 2026, and expressed appreciation for his services. This appears to be a routine realignment of personnel by the Japanese parent entity.

Mr. Hirokazu Kotera (DIN: 10707431) to resign as Executive Director.
Resignation becomes effective at the close of business on March 31, 2026.
Change is driven by the promoter company, Kansai Paint Co. Ltd., Japan.
The Board meeting approving the change concluded at 6:30 p.m. on February 3, 2026.

💡 This is a standard management rotation initiated by the promoter group and is unlikely to impact daily operations. Investors should watch for the announcement of a replacement to see if there is any shift in strategic focus.

Kansai Nerolac Grants 3,313 Restricted Stock Units Under RSU Plan 2022

🟡 NEUTRAL ⭐ 3/10

ROUTINE 📅 03 Feb 2026, 09:33 PM

Kansai Nerolac Paints Limited has approved the grant of 3,313 Restricted Stock Units (RSUs) to eligible employees, effective February 15, 2026. Each RSU is convertible into one equity share of face value Re. 1 upon exercise. The company reported that 1,45,155 options have been exercised to date, while 4,07,354 options have lapsed. This move is part of the company's ongoing employee retention and incentive strategy under its 2022 RSU Plan.

Grant of 3,313 RSUs to selected employees at face value of Re. 1 each
Total options exercised to date stand at 1,45,155 shares
Cumulative money realized from exercised options is Rs. 1,45,155
A total of 4,07,354 RSUs have lapsed under the current plan
Diluted earnings per share (EPS) reported at Rs. 6.16

💡 No action is required as the grant size is minimal and will result in negligible equity dilution. This is a routine administrative disclosure regarding employee compensation.

Kansai Nerolac Q3 PAT Dips 4.2% to ₹131 Cr; Revenue Up 3.5% YoY to ₹1,907 Cr

🟡 NEUTRAL ⭐ 8/10

EARNINGS 📅 03 Feb 2026, 07:46 PM

Kansai Nerolac reported a modest 3.5% year-on-year growth in standalone revenue, reaching ₹1,907.35 crore for the quarter ended December 31, 2025. Net profit for the quarter declined by 4.2% to ₹131.20 crore, primarily impacted by a one-time exceptional charge of ₹44.72 crore related to the implementation of new Labour Codes. Excluding this non-recurring provision for gratuity and leave liability, operational performance remained relatively stable. For the nine-month period, the company showed resilience with a PAT of ₹526.49 crore compared to ₹498.99 crore in the previous year.

Standalone Revenue from Operations grew 3.5% YoY to ₹1,907.35 crore in Q3 FY26.
Net Profit (PAT) for the quarter stood at ₹131.20 crore, down from ₹136.94 crore in Q3 FY25.
Recognized an exceptional item of ₹44.72 crore due to increased liabilities from the new Government Labour Codes.
Standalone PBT before exceptional items was ₹219.71 crore, a slight decrease from ₹228.09 crore YoY.
Nine-month (9M FY26) standalone PAT increased to ₹526.49 crore from ₹498.99 crore in the corresponding period last year.

💡 Investors should look past the headline profit dip as it was caused by a non-recurring regulatory provision; focus should remain on volume growth and raw material margin stability. The company's steady 9-month performance suggests underlying business health remains intact despite a challenging macro environment.

Kansai Nerolac Q3 Results: Standalone Revenue up 3.5% YoY to ₹1,907 Cr; PAT at ₹131 Cr

🟡 NEUTRAL ⭐ 7/10

EARNINGS 📅 03 Feb 2026, 07:27 PM

Kansai Nerolac reported a modest 3.5% YoY growth in standalone revenue for Q3 FY26, reaching ₹1,907.35 crore. Profitability was impacted by a one-time exceptional charge of ₹44.72 crore related to the implementation of new Government Labour Codes. Excluding exceptional items, the standalone profit before tax stood at ₹219.71 crore, a slight decline from ₹228.09 crore in the previous year's quarter. The company continues to navigate a competitive environment with steady top-line growth but compressed margins.

Standalone Revenue from Operations grew 3.5% YoY to ₹1,907.35 crore from ₹1,842.16 crore.
Standalone Profit After Tax (PAT) stood at ₹131.20 crore, significantly lower than last year's ₹526.49 crore which included a massive ₹479.19 crore exceptional gain.
Profit before exceptional items and tax was ₹219.71 crore, down 3.7% from ₹228.09 crore in the year-ago period.
An exceptional expense of ₹44.72 crore was recognized due to increased gratuity and leave liabilities following new Labour Code notifications.
Consolidated Revenue for the quarter reached ₹2,064.63 crore, up from ₹2,000.56 crore YoY.

💡 The results reflect a sluggish growth environment and margin pressure in the decorative paint segment. Investors should maintain a 'Hold' position while monitoring the impact of rising competition and raw material price volatility on future earnings.

Kansai Nerolac to Merge Subsidiary Nerofix; Shareholder Meeting Set for Feb 27, 2026

🟢 POSITIVE ⭐ 7/10

M&A 📅 03 Feb 2026, 07:05 PM

Kansai Nerolac Paints Limited is proceeding with the amalgamation of its wholly-owned subsidiary, Nerofix Private Limited, effective from the appointed date of April 1, 2025. The NCLT has dispensed with the meeting of unsecured creditors but has directed a meeting of equity shareholders on February 27, 2026. As Nerofix is a 100% subsidiary, no new shares will be issued, ensuring no equity dilution for existing shareholders. The merger aims to simplify the corporate structure and integrate the adhesives and construction chemicals business of Nerofix.

Amalgamation of 100% subsidiary Nerofix Private Limited with Kansai Nerolac Paints Limited.
No new shares to be issued; paid-up capital remains unchanged at approximately Rs. 80.85 crore.
NCLT-convened meeting of equity shareholders scheduled for February 27, 2026.
Authorized share capital of Nerofix (Rs. 20 crore) to be merged into Nerolac's Rs. 85 crore capital.
Appointed date for the scheme is fixed as April 1, 2025.

💡 Investors should view this as a positive internal restructuring that streamlines operations without diluting equity. No immediate action is required as the merger is a routine consolidation of a wholly-owned subsidiary.

Kansai Nerolac Allots 3,771 Equity Shares Under RSU Plan 2022

🟡 NEUTRAL ⭐ 2/10

ROUTINE 📅 29 Jan 2026, 03:59 PM

Kansai Nerolac Paints Limited has allotted 3,771 equity shares of face value Re. 1 each following the exercise of Restricted Stock Units (RSUs). These shares were issued under the company's RSU Plan 2022 at an exercise price of Re. 1 per share. Following this allotment, the total issued share capital of the company has increased to Rs. 80,85,24,735. The dilution caused by this allotment is negligible and part of standard employee compensation practices.

Allotment of 3,771 equity shares of face value Re. 1 each fully paid-up
Shares issued pursuant to the Kansai Nerolac Paints Limited - Restricted Stock Units Plan, 2022
Total issued share capital post-allotment stands at 80,85,24,735 shares
Exercise price for the allotted shares was Re. 1 per share
The new shares are identical in all respects to the existing equity shares

💡 This is a routine administrative update regarding employee compensation. No action is required from investors as the equity dilution is insignificant.

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💰 Financial Performance

Revenue Growth by Segment

In Q1FY26, the industrial segment saw high single-digit volume growth, while the decorative segment remained flat. Overall revenue for Q1FY26 grew 1.4% YoY to INR 2,162 Cr. For the full fiscal 2025, revenue was flat at INR 7,962 Cr due to intense competition in the decorative space.

Geographic Revenue Split

The company has a dominant presence in Tier-2, Tier-3, and Tier-4/rural towns. It is currently targeting Tier-1 urban cities for its next phase of expansion to diversify its geographic footprint.

Profitability Margins

Operating margins declined to 12.2% in fiscal 2025 from 13.4% in fiscal 2024 due to a 12% increase in employee costs and reduced operating leverage. Management targets a short-term margin of 13-14% and a long-term goal of 15% through premiumization.

EBITDA Margin

Consolidated PBDIT margin for Q2FY26 stood at 11.0% (INR 215.3 Cr), a slight improvement from 10.9% YoY. However, H1FY26 PBDIT margin dropped to 12.6% from 13.3% YoY, reflecting higher operating expenses which rose to 23.1% of revenue.

Capital Expenditure

The company maintains a healthy financial risk profile where strong cash accruals are expected to be sufficient to meet annual capex and incremental working capital requirements. It holds a sizeable liquid surplus of over INR 2,000 Cr as of March 31, 2025.

Credit Rating & Borrowing

The company maintains a 'Stable' outlook with a net debt-free balance sheet. It has a fund-based working capital limit of INR 350 Cr which remains largely unutilised, indicating minimal borrowing costs.

⚙️ Operational Drivers

Raw Materials

Crude-linked derivatives and Titanium Dioxide (TiO2) are the primary raw materials. TiO2 prices recently increased due to the imposition of anti-dumping duties on Chinese imports.

Import Sources

A significant portion of Titanium Dioxide was historically sourced from China, now subject to anti-dumping duties. Other crude-linked inputs are sensitive to global oil market fluctuations.

Key Suppliers

Not specifically named in the documents, though the company maintains healthy relationships with major global and domestic chemical suppliers.

Capacity Expansion

The company is investing to enhance capacity and backward integrate to counter the entry of large conglomerates. Specific MTPA figures are not disclosed, but investments are funded via internal accruals.

Raw Material Costs

Material costs accounted for 64.3% of revenue in H1FY26 (INR 2,648.1 Cr). Margins are highly susceptible to crude price volatility as 50% of revenue comes from the industrial segment where price hikes are difficult to implement.

Manufacturing Efficiency

Efficiency is driven by technological tie-ups with Kansai Paint Co., Ltd (Japan), particularly in the automotive segment to maintain market leadership.

Logistics & Distribution

Distribution is focused on Tier-2 to Tier-4 towns, with a strategic shift toward increasing penetration in Tier-1 urban markets.

📈 Strategic Growth

Expected Growth Rate

10-12%

Growth Strategy

Growth will be driven by expanding into Tier-1 cities, launching technology-based premium products, and diversifying into non-paint categories like adhesives, construction chemicals, and waterproofing. The company is also divesting non-core assets, such as its 60% stake in the Sri Lankan subsidiary, to focus on high-growth Indian markets.

Products & Services

Automotive paints (passenger cars, utility vehicles, two-wheelers), decorative paints, adhesives, construction chemicals, and waterproofing products.

Brand Portfolio

Nerolac, Kansai Paint.

New Products/Services

Recent launches include premium decorative finishes and technology-based industrial coatings. The company is expanding into the 'non-paint' segment including construction chemicals.

Market Expansion

Targeting Tier-1 urban cities for expansion while protecting its dominant share in rural and Tier-2/3/4 markets.

Market Share & Ranking

Market leader in the Indian industrial paints segment and holds an established position (top tier) in the decorative paints segment.

Strategic Alliances

Strong technological and operational support from parent company Kansai Paint Co., Ltd, Japan, which is critical for maintaining the lead in the automotive OEM segment.

🌍 External Factors

Industry Trends

The industry is seeing a shift toward premiumization and non-paint products like waterproofing. The entry of large conglomerates is disrupting the traditional competitive landscape, leading to heightened capacity investments by incumbents.

Competitive Landscape

Intense competition in the decorative segment from established players and new large conglomerates; pricing pressure from strong regional players in mass-market products.

Competitive Moat

Moat is built on market leadership in industrial/auto paints, deep rural distribution (Tier 2-4), and access to Japanese technology. Sustainability depends on the ability to defend the decorative segment against new large-scale entrants.

Macro Economic Sensitivity

Highly sensitive to construction activity momentum (as per RBI) and monsoon timing, which affects the painting season and rural demand.

Consumer Behavior

Shift toward premium products and increasing demand for 'healthy and beautiful' environments, driving the launch of eco-friendly and technology-based paints.

Geopolitical Risks

Trade barriers such as anti-dumping duties on Chinese Titanium Dioxide directly increase production costs.

⚖️ Regulatory & Governance

Industry Regulations

Subject to environmental and pollution norms for chemical manufacturing. Impacted by SEBI Listing Regulations regarding Risk Management and Corporate Governance.

Environmental Compliance

Committed to becoming carbon neutral; targets 70% renewable energy by 2030. Achieved water-positive status in 2024 with 126% replenishment in 2025.

Taxation Policy Impact

Effective tax rate is standard corporate rate; impacted by anti-dumping duties on key raw material imports.

Legal Contingencies

The company has a Whistle Blower Policy and Sexual Harassment Redressal mechanism in place. No specific high-value pending court cases or INR values for litigation were disclosed in the provided text.

⚠️ Risk Analysis

Key Uncertainties

Volatility in crude oil prices could impact margins by over 2-3% if price hikes cannot be passed to OEMs. Competitive entry by conglomerates poses a risk to decorative market share.