Aegis Logistics Limited ($AEGISLOG)

Ladies and gentlemen, good day, and welcome to the Q4 and FY '26 Earnings Conference Call of Aegis Logistics Limited hosted by time. [Operator Instructions] Please note that this conference is being recorded. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on the date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. I now hand the conference over to Mr. Raj Chandaria, Chairman and Managing Director of Aegis Logistics Limited. Thank you, and over to you, sir.

Thank you very much. Good evening, everybody, and I'm joined tonight by our CFO, Mr. Murad Moledina, and Ms. Payal Dave from our Investor Relations team. Let me begin with highlighting the numbers for FY '26 that really defined the year. It was an outstanding year, a breakout year for us. So the revenues grew 23% year-on-year to INR 8,333 crores. Normalized EBITDA rose 36% to INR 1,599 crores. Profit after tax grew 41% to INR 1,107 crores. And seeing the symbolic INR 1,000 crore profit after tax milestone for the first time. Cash and investments on the balance sheet reached approximately INR 6,000 crores. And just to put things in perspective, over the last 5 years, we have delivered an earnings per share cumulative average growth rate of 32% with a consistent dividend track record. Our fourth quarter was particularly strong with revenue up 52%, EBITDA up by 54% and profit after tax up 43% year-on-year. These votes reflect the compounding power of our diversified operations and the discipline with which we are executing. In line with our commitment to shareholder returns, the Board has recommended a final dividend of INR 6.70 per share for FY '26 bringing the aggregate dividend for the year to INR 8.7 per share. I'm going to just run through the court by court operational update. So Mumbai continues to operate at a very high utilization rate. Our facility comprises 334,000 kiloliters of liquid storage and 21,000 metric tons of static LPG capacity. We are developing an additional 64,000 kiloliters of liquid storage at a project cost of INR 125 crores, which is progressing on schedule with a visioning targeted for the first half of FY '27 this year. At JNPT, the current liquid storage stands at 106,900 meters. And we are executing a major expansion, approximately 318,100 cubic meters of additional liquid storage, 77,236 metric tons of LPG capacity and an LPG bottling plant with 35,000 metric tons of annual capacity, with a total capital outlay of approximately INR 1,675 crores. And the first phase of the liquid capacity is expected to be commissioned in the first half of this year, FY '27. And we are evaluating a further cryogenic gas tank of between 36,000 to 50,000 metric ton capacity, static capacity to further strengthen our West Coast gas handling capabilities. At the Haldia port, switching to the other coast, we completed the acquisition of a 75% stake in Hindustan Aegis LPG Limited during the year, adding approximately 25,000 metric tons of LPG storage and marking our entry into the East Coast market. Of course, this was basically acquired through -- by our subsidiary, Aegis Vopak Terminal Limited. The asset is anchored by an exclusive terminaling agreement with Hindustan Petroleum through 2038, providing strong long-term revenue visibility. And we operate 226,890 cubic meters of liquid storage here, and we have acquired an additional 3 acres of land to support future expansion. Moving on to Kandla. This remains one of our largest and most important -- strategically most important hubs. Approximately 952,000 cubic meters of liquid storage and 48,000 metric tons of LPG capacity. Several milestones were achieved this year in this port. In December, the group successfully handled a VLGC vessel, making Kandla a VLGC-compliant terminal. And the Jamnagar-Loni pipeline, LPG pipeline is complete. And the Kandla-Gorakhpur LPG pipeline is expected to be connected in H1 FY '27, further improving evacuation efficiency. The construction of the CRL 4 liquid terminal, which will add an additional 94,148 cubic meters is progressing well with commissioning targeted for next year. We have signed a nonbinding memorandum of understanding with Larsen & Toubro group for potential joint development of ammonia terminals, which position us well in the energy transition opportunity at Kandla. Moving on to Pipavav. This has been one of our most active locations this year. We commissioned a 48,000 metric ton cryogenic LPG terminal in June of 2025 taking the total LPG capacity to 70,800 metric tons at this site and the ramp-up is progressing well. A new VLGC-compliant Jetty is expected to be completed within this calendar year with the KGPL pipeline connection, following in Q2 of FY '27. When complete, Pipavav will offer a fully integrated LPG logistics ecosystem, VLGC handling, cryogenic storage, bottling plant, an LPG rail gantry, 16 truck loading bays and pipeline connectivity to Central India. On the liquid side, we are building an additional rail gantry and have secured a 15-year take-or-pay agreement with a leading conglomerate for petroleum products. Committed volumes exceed 0.5 million metric tons per year annually with operations expected to commence by year-end. Now we are also advancing India's first independent ammonia terminal at Pipavav, which is a 36,000 metric ton static capacity terminal backed by a 15-year take-or-pay agreement with Hindustan Zinc for their upcoming DAP Diammonium phosphate plant with commissioning targeted for H1 of this fiscal year. And Itochu Corporation has acquired a 10% stake in Aegis terminal, Pipavav Limited coming in as a strategic partner with an intention to raise that to a 25% stake over the next 3 years. As far as Kochi is concerned, we operate 82,545 cubic meters of liquid storage at this site. We continue to evaluate the addition of an additional 60,000 cubic meters on this newly allotted land and we'll provide further updates once this is finalized. At Mangalore port, we commissioned an 82,000 metric ton cryogenic LPG terminal in June of 2025, and are progressing on the construction of an LPG rail gantry there, a very important step. The 75,000 cubic meters of liquid capacity that was added last year is now fully operational, bringing the total liquid storage to 193 cubic meters of capacity. We have secured additional land and evaluating a further 60,000 cubic meters of liquid storage at this site. Just to update on the Vadhavan port. We are looking to -- we have signed, sorry, a nonbinding memorandum of understanding to participate in the development of this port with a potential investment of approximately INR 20,000 crores, subject to approvals and land allocation, of course. And this will enable us to develop further world-class liquid and gas handling infrastructure and significantly expanding the scale and geographic reach of our network. So with that sort of overall view, I'll hand over to Murad Moledina, to take us through the financial details. Murad, over to you.

Thank you. Thank you very much. And now let me take you through the financials and then our capital allocation framework. For the full year, FY '26 was a year of significant financial progress across both segments. At the group level, revenue from operations grew 23% year-on-year to INR 8,333 crores. Normalized EBITDA rose 36% to INR 1,599 crores and profit after tax increased 41% to INR 1,107 crores from INR 788 crores in FY '25. By segment, LPG business recorded its highest ever revenue of INR 7,689 crores, up 26% year-on-year, with EBITDA growing 68% to INR 1,131 crores, driven by record logistics and distribution volumes. LPG terminal throughput volumes reached 5.15 million tonnes, up 14%. Distribution volumes surged 40% to 7.54 lakh metric tons and sourcing sales grew 2% to 6.07 lakh metric tons. Liquid business delivered a revenue of INR 644 crores broadly stable year-on-year with EBITDA of INR 472 crores, down 5%, reflecting phasing of capacity additions. And also during the year, unlike last year, it was all normalized operations with no major take-or-pay. Now let's run through Q4 FY '26. The fourth quarter was our strongest ever. Revenue from operations reached INR 2,594 crores, up 52% year-on-year. Normalized EBITDA grew 54% to INR 670 crores. Profit after tax rose 40% to INR 455 crores. By segment in Q4, LPG segment generated a revenue of INR 2,410 crores, up 65% year-on-year with EBITDA more than doubling to INR 549 crores or 136% increase. This is the highest ever revenue and EBITDA for the Gas division, not just for Q4 but across any quarter. Distribution volumes reached a record 2.34 lakh per tonnes, up 71%, even as throughput of 1.23 million tonnes held steady despite the reductions from the West Asia situation. Liquid segment reported revenue of INR 184 crores and EBITDA of INR 126 crores in the quarter. Our balance sheet is a key strategic asset. Cash and investments have grown from INR 150 crores in FY '22, just 4 years back to INR 5,939 crores in FY '26, a transformation that positions us to fund growth at pace without compromising financial discipline. Cumulative CapEx is expected to reach approximately INR 1.2 billion by next year, reflecting the pace of expansion across our port network. Looking further ahead, we have identified a CapEx pipeline of approximately INR 5 billion through 2,030. Investments aligned with both additional energy infrastructure and emerging energy transitions value change. We'll pursue this growth with disciplined funding through balanced mix of equity, internal accruals and debt targeting a gearing ratio of approximately 6x, low leverage, strong cash generation and a resilient balance sheet gives us the financial facility to move quickly on opportunities. With that, I'll hand the line to the moderator to open for Q&A.

[Operator Instructions] Our first question comes from the line of Vibhav Zutshi with JPMorgan.

Congratulations on the strong results. First question is on the gas segment profitability which has seen a very sharp increase Q-on-Q on per tonne basis. So can you just provide some color how much was driven by the distribution segment? Is there any one-off? And going forward, what could be the normalized level?

Yes, please. So if you will look at our numbers, the volumes have surged in distribution business. So that has also contributed on this sort of revenue as well as EBITDA. Second is, of course, the margin that we have earned during the year has been now INR 7,000 against INR 4,000-odd in the previous year. Going forward, the next year also, we expect the same as the energy prices have raised and so also the margins because of the uncertainty involved. Going forward, we feel the INR 7,000-odd margins should be sustainable as beyond '26, '27, we would see our distribution volumes really offer scale that brings procurement efficiencies, which will -- when the prices of energy stabilize or come down, will compensate in terms of margins. So yes, going ahead, we feel confident that these are sustainable margins. And of course, there is a huge upside as far as volume is concerned. True, of course, also will be good in the current year as you will see a lot of multimodal evacuation kicking in, especially the Jaan Ragalone pipeline in Kandla, Kandla-Gorakhpur pipeline in Kandla as well as Pipavav, then the rail gantries that we are building. And please keep in mind some of our terminals like Pipavav cryogenic as well as Mangalore gradually were operational for part of the year in '25, '26. So you will see a full year effect of that. As such, overall, gas EBITDA of course will continue to grow really well going forward.

Got it. Just a follow-up here on the LPG situation. So it looks like for you, the volumes kind of have completely normalized in June. So is this understanding correct? And for the country overall, when do you expect full normalization because I think you're still down 30% to 50% year-over-year, things are improving, but just your thoughts over here.

We cannot do any process here. But yes, I can tell you for sure that things are improving month-on-month. Like in May, the shortfall is down to 30% when it was 50% in April. In May, it has been better, and we expect this improvement to continue, probably in Q2, sometime in Q2, we should see normalcy return back. And mind you, LPG supply source Middle East is not the only source. It's the source of convenience. There are multiple supply source. And of course, the journey time would be a little more, but I think going forward, this situation has a few lessons up for everyone to have alternative supply sources which is always there. So I think this will stabilize soon, maybe beginning sometime in Q2 onwards. And you will see many alternative supply sources going forward because the dependency on Middle East will, of course, reduce as alternative supply sources will kick in.

Got it. Got it. And just second question is on CapEx. So can you provide the guidance for FY '27 and FY '28 if possible. I think this year was somewhere around INR 800 crores. So it looks like you'll see a very big jump now, but if you can just quantify what's going on.

We will see a $1.2 billion aggregate CapEx by March '27 that we have already said. March '28, we would again see a CapEx up to INR 5,000 crores coming in. This is both organic and organic as such. .

Our next question is from the line of Anil Sarin with K16 Advisors.

Part of my question has already been answered. Just wanted to check, I mean, sir, for further clarity, what was the exact CapEx in fiscal '26. And what is the CapEx planned for fiscal '27? Furthermore, this INR 1.2 billion, I suppose it will add up to INR 1.2 billion. Does that mean that the residual that is fiscal '29 and fiscal '30 would have $3.8 billion of CapEx.

We have said that CapEx is INR 2,030, not FY '30, please. So keep in mind, this is still 2030 December. So we will have FY '31 to reach $5 billion. Please keep that in mind. So you have -- you will see a lot of CapEx on the latter half of this 5-year period. So you will see heavy CapEx in '29, '30 and '31. And you will have up to '28, we have already said, it will be INR 1.2 billion and then against INR 5,000 crores. So you add up that to the INR 1.2 billion. And thereafter, you can spread it out in the next 3 years to reach $5 billion.

One clarification, is Vadhavan port, that MoU included in this CapEx?

To the extent we are able to execute out there because it all depends on how quickly the port comes up. And the allotment of land and the permits happen. But yes, I suspect that part of it will definitely be included in that $5 billion, but not all of it, I'm sure.

Okay. Great. Just one follow-on. This distribution margin, I mean, if I sort of separate out the 9 month and the -- sorry, yes, the first 3 quarters and focus only on the fourth quarter, there was an unusually sharp jump. You have already answered that this has taken the average up to INR 7,000 and the INR 11,000 would sustain. But I had a related question that now the southern operations of Mangalore and Kochi, Kochi you're also expanding, are sort of coming into play and with those railway gantries and hopefully, the Cherlapally pipeline also coming into operation. South is structurally starved of gas. Does -- what does that both Mangalore and Kochi and their respective expansions do to the distribution volume in South India as well as for the full part of India taking the total distribution to what level in fiscal '27. And if you can hazard a guess what level in tonnage terms for fiscal '28 we...

Yes, sorry. Yes. So you have said it right. Earlier, we were doing distribution from Mumbai and Kandla. Now we are doing it from all over the place. So it includes Mangalore, the newly commissioned cryo, Haldia, Pipavav, Kandla, Mumbai. So that's been -- what is leading to the volume increase. We always had a target of 2 million tonnes. So we expect that to reach by '28. And mind you, we are also commissioning ammonia. So then that means that ammonia distribution would form part of this 2 million gas distribution that we intend to do. So yes, I think that is what it is, South also, East also and West also. We will be distributing gas all over the place because we have now terminals spread out -- and cryogenic in nature, which enables us to do more of -- we have more of a ledge, and we can do more of distribution, stock and then sell.

Great. One clarification. Isn't the ammonia capacity already spoken for, it's already assigned to Hindustan Zinc. So where from does the scope come for distribution of ammonia?

1/3 of the capacity is take or pay, 2/3 is available with us as open source. .

Our next question comes from the line of Chirag Vakharia with Budhrani Finance.

Just wanted to get a sense, sir, even if we take the realization at around INR 7,000 per tonne for distribution segment, yet the profitability in this segment is way off the mark.

Sorry, can you repeat the question? I did not get it.

In the distribution segment, you said the realizations have gone up, right? So the margins have gone up, correct?

Yes.

Sir, even if you take that, I mean, the number that you have posted out is very strong. So what explains that, sir?

No, the margins are from the results that have been posted, right? .

And volumes, of course. Volumes and margins have gone up.

Okay. Okay. And sir, is this sustainable or so long as the energy crisis are there, they will still be at INR 7,000 and then it will revert back to INR 3,500-odd.

It is what I just explained in my previous answer that this is -- they're expected to stay on account of volume increase that is going to happen, which will bring procurement efficiency, yes. We were already doing INR 4,000. We are at INR 7,000. This year, also INR 7,000 because Q1 has also done well. So therefore, it is a question of 2028. So that will be quoted by procurement efficiencies because the volumes would have grown substantially by FY '28. So we expect INR 7,000 to sustain from here on. .

Okay. So this MoU that you're talking with L&T for ammonia terminal, what CapEx are we looking here, sir?

It depends. We have just commissioned 1 terminal at a cost of INR 525 crores. So it's 1 terminal, then the same. If there are multiple terminals, they will be in the multiple of INR 525 crores. .

This is the similar capacity or this will be a higher capacity?

One terminal would be of a similar capacity, but it then depends on what the customer wants.

Our next question comes from the line of Neelotpal Sahu with JM Financial.

Congratulations for a very good set of numbers. You've mentioned about ammonia logistics commencing and ammonia distribution as well. Can you throw some light on the economics of both of these streams in terms of expected utilization levels and margins?

Yes. In the current year, we expect around -- as we do in LPG, we expect around 25% utilization in the first year and thereafter growing at the rate of 30%, 40% year-on-year. Distribution similarly, we expect somewhere around 200,000 tonnes to begin with and then growing 20%, 30% year-on-year. The margins are in the ranges from around 2,500 to 3,000. In distribution, it could go up to INR 5,000 depending on how the market behaves. We will see what it delivers. And then from there on, we can do our projections. But this is what we expect. .

So ammonia execution margins would also be like on a per tonne basis, INR 5,000.

That's what I said, INR 5,000 a tonne, up to INR 5,000 a tonne is what we expect.

Our next question comes from the line of Kunal Mehta with Incred Equities.

Congrats on a good set of numbers. My first question is, sir, how much of the improvement in the gas distribution is from operating leverage that is optimization of our infra versus the price increase in the market. So if you can give some flavor on the revenue versus EBITDA on gas?

Yes. So we have already -- so it's like energy prices rising and uncertainty element being built into so the margins have improved during Q4, expected the same in Q1 of the current year. However, as the volumes also have jumped from around 520,000 to 750,000. That has also brought procurement efficiencies. So what was INR 4,000 and what has become INR 7,000 currently comprises probably you can say part of it on account of volumes and part of it on account of margin improvement. Going forward, as said, that when the crisis is gone, war is no more, and the prices stabilize and come down, by that time, our volumes have grown enough to get more procurement efficiencies. And therefore, we expect these INR 7,000 a year average margin to continue going forward. Also, you don't have to see it quarter-to-quarter. You have to see on an annual basis, Q1 is already good. So I think somewhat for '26, '27, you are already assured of a INR 7,000 average margin realization. '27, '28, it will drive more on volumes.

Do you think this shows an elevated top line as well? I mean just because of increase in the price. So any idea on how much revenue do we do from the gas distribution. Can you give some...

So it is always volume and price, it's a product of volume and price. So again, repeating the same thing, volumes are expected to grow really significantly over this year and the next. And prices, even though they stabilize going forward, volumes will take care. So we expect the revenue also to grow year-on-year.

Okay. Sir, and my second question is on the CapEx. So we will be doing CapEx at the Aegis level, it is holistic. And then after creating the asset, we then transfer it to Aegis Vopak, am I right?

Yes.

So you mentioned in your opening comments that our INR 5,900 crores of cash on the consol balance sheet. I think on the stand-alone -- Aegis standalone level, there is like, I think, almost half of that. So I mean, how much would ALL be able to utilize for building the asset?

So when you look at cash, don't look at ALL stand-alone alone, you also have to look at cash holding in its 100% subsidiaries. So all put together will come to INR 5,930 crores. 100% subsidiary also, you will have to consider the cash held under those subsidiaries.

Okay. So this doesn't include the cash in AVTL.

Consolidation includes AVTL. Sorry, consolidation includes all the cash, AVTL cash is not significant.

Okay. And sir, the ETC is done by ALL stand-alone or one subsidiary of ALL.

It will be done either by Aegis stand-alone or any of its 100% subsidiary.

So in the consol, do we capitalize at the value at which ALL is or the value at which we sell to Aegis Vopak?

At which ALL bills.

Our next question comes from the line of Amit Kumar with Determined Investment.

Just one question, sir. Could you sort of quantify any sort of inventory gains that you had in this particular quarter? .

What do you mean by that. So there is nothing like inventory gain, which we book in P&L.

I'm saying that mostly as a storage solutions company, you're basically working for your clients. But as far as your distribution is concerned, you would have some inventory, right? And post the war or during the quarter itself, we have seen crude oil prices, LPG, LNG prices basically go up. The value of that inventory during the quarter because of the pricing...

No, no, it is at cost only.

No, I understand that inventory is at cost. Basically, what I'm saying is that because of the spike in selling prices versus relatively lower cost inventory. I don't know how many months of -- I mean, how many months have inventory do you keep... .

We keep very low inventory. We are not yet to keep more than a month inventory. So inventories are not long. So you're right. There is no such inventory gain.

In the month of March, the inventory that you would have sold, you would have bought it in February, right? And at a lower cost and then obviously March because of the Iran war, because of the Middle East war, the prices basically spiked up. .

Not necessary February. It could be February as well as March cargo coming in.

Okay. So there is no -- I mean, that inventory gain, you have some of these OMCs basically, which are also kind of refinery and distribution.

No, this is distribution business. So how we do it is that we book orders and then we procure. The margins are higher when there are times of uncertainty because energy prices are higher. So as a percentage, obviously, you will realize more margin because there is an uncertainty element involved. You have to get the product. In times of uncertainty, that is even more -- it is difficult. So therefore, in rupee terms, your margin improves because your energy prices are also very high.

I understand that point. Okay. Let me sort of ask this differently. Pre-war versus post-war, what is the kind of price differential that you saw basically. And what is the kind of price jump that you saw as the Middle East basically war started in late February?

Prices have gone up of all the energy products from INR 54,000 to all the way to INR 150,000 back to INR 80,000, INR 90,000.

Sorry?

Energy prices have very fluid. They have gone up from INR 54,000 or INR 60,000 per metric ton all the way to INR 150,000 per metric ton down to INR 80,000, INR 90,000 per metric ton. So it is -- it varies.

Our next question comes from the line of Rajesh Agarwal from Moneyore.

Sir, my just question, a basic question, now government yesterday subsidize the LPG cylinder, so it will be reduced from 9 to 4, then government is taking a step for increasing PNG and all. Will it affect our logistical business. And what gives you confidence of volumes of distribution business increasing? What can be the particular reason? The 2 questions, sir. .

Energy in India per capita is among the lowest in the world. We are comparable to Philippines. Second is it is a developing country. So there is a lot of dependency on dirty fuel, coal, furnace oil, diesel, wooden rickets, so many, so many products which as we develop, we have to transit out, the volumes in such dirty fuel is very large, around 2,000 million tonnes in coal alone. What are we talking of gas is 50 million, 60 million tonnes of natural gas, 30 million, 35 million tonnes of LPG. So there is enough for growth, whatever one may say, you need to have multiple energy sources. So yes, PNG, natural gas, ammonia, LPG, coal, everything will be needed in such a large country as ours. So we are a very large country with large populations with energy needs that are going to grow. So we need a lot of products as far as energy basket is concerned. And depending on what is the kind of outlook going forward as far as environment is concerned, the tilt should definitely be towards the cleaner fuel, which are in nature of gas, namely, like I just said, natural gas, LPG, ammonia. And what are the numbers that we are talking of. Still clean fuel is fairly small numbers compared to dirty fuel, which are liquid and solid in nature.

One last question. Suppose doesn't open for next 3 months. Still, we're able to recover all our old volumes and grow.

Supply source has to change. LPG is not only available from Middle East. It's a supply source of convenience. But LPG is available from all over the world. Now it is coming from Canada, America, Argentina, Nigeria, all over the world. So you'll keep getting...

In this crisis, we have seen a change -- substantial changes for sourcing.

Yes, there has to be -- going forward, we will have multiple supply source.

Can I just add one comment here, Murad. One of the advantages of having high-quality joint venture partners that we have with Itochu and with Vopak and so on. It really has given us a tremendous edge in terms of sourcing alternative sources of gas.

Our next question comes from the line of Nandan, an investor.

First of all, congratulations on a very, very strong set. I think I can see from last 3 quarters, companies delivering around 50% growth on year-on-year- basis. So the question is, sir, since -- I mean we have USD 5 billion CapEx plan by 2030 December or FY '31. And I assume that the majority of the infra will be built by Aegis Logistics or its 100% subsidiaries. Plus we have a distribution -- I mean, segment that is growing well with the margins. and the ammonia growth and there will be growth in the subsidiary, I mean, Vopak as well. So my question is sir, I think given the guidance, I think we are giving 25% guidance. I feel it is very, very conservative. I mean in FY '26, also, we have grown 43% at a PAT level.

We are beating our own guidance.

Why don't we increase that.

No, we are a very conservative company, and I think 25% CAGR growth is not small. We have achieved 32% last 5 years, we definitely again reiterate. Now remember, the base is getting bigger and bigger, larger and larger. When we had first given our guidance, we were at an EPS of INR 6. Now we are at an EPS of INR 26. In spite of that, the CAGR growth has not changed, the guidance to the CAGR growth has not changed. So that itself is big in that sense.

Yes, that's correct. Sir, and my second question is, what's our goal for the ammonia distribution, say, by 2030. I mean FY -- by FY '28, you already said that the gas distribution should be at 2 million volumes, including the LPG and ammonia. Probably LPG will be much higher as ammonia is at a new stage. So by FY '30, what is our target for -- if you can provide LPG as well, that will be very helpful as well.

So if you look at the DRHP, CRISIL as an independent agency, in the case of Aegis Vopak already said by '29, India will have a supply-demand gap is in ammonia of around 3 million tonnes. So we'll try our best to see what best achievement we can do by '29, '30. This will depend on how many terminals we are able to construct and commission, how many locations we get ourselves positioned. So we are very bullish. We have our partner, Itochu, along with us. They are already now participated in the hard assets also taking a 10% stake in the Pipavav terminal. So we are working very hard, but difficult today project, this is a new product that we have stepped into. But looking at the macros and looking at what lies ahead, we are very bullish.

Thank you. Ladies and gentlemen, due to time constraints, we will take that as a last question for today. I would now like to hand the conference over to the management for closing comments. Over to you, sir.

Thank you very much. It's been a very exciting year, a good year for us in terms of the FY '26. As Mr. Moledina has indicated, we are confident to maintain for FY '27 the same momentum. And an answer just to the last comment about our guidance and so on, I think our sort of philosophy here at Aegis is really to not to overpromise, always to underpromise and hopefully overdeliver. So that's our conservative management philosophy. But I'm confident that FY '27 will continue the strong momentum that we have and the longer-term perspective in terms of '28 onwards, again, with the strong foundations that we have laid and are continuing to lay and the opportunities that the uncertainty has of the war and -- that has given rise to many more opportunities. So we look forward to informing you as those come to fruition. So the record profitability, strong transformed balance sheet and a clear road map for the next phase of growth. That's it. Thank you very much. Have a good evening, and we will speak again next quarter. Thank you.

Thank you.

On behalf of Aegis Logistics Limited, that concludes the conference. Thank you all for joining us. You may now disconnect your lines.