Antony Waste Handling Cell Limited (AWHCL) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to Antony Waste Handling Cell Limited Q3 and 9 Months FY'23 Earnings Conference Call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, convenience and expectations of the company as on date of this call. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. N. G. Subramanian, Group CFO. Thank you, and over to you, sir.

Thank you. Good afternoon and a very warm welcome to everyone present on the call. Along with me, I have Mr. Mahendra Ananthula, Group President, Operations, Business Development & Diversification and SGA, our investor relations advisers. Our investor presentation is now available on the stock exchanges and also on the company's website. First, I would like to provide some business update. The essential nature of our services are diverse customer base and recurring revenue streams, provide stability to the business. And over a period of time, this has also proved right and comfortable for us. A word on the macro aspect, keeping pace with the green energy focus of the world and reducing its carbon intensity, India has planned big for the green energy sector in this financial budget. The government announced a slew of measures for the initiatives related to the greenfield [Technical Difficulty] coming green mobility, green buildings and even green equipment. The budget further provides for India's government to provide incentives to urban civic worlds to improve the financials and credit worthiness and help them raise funds through municipal bonds. Attempts through property tax governance reforms and ring-fencing user charges on urban infrastructure will enable cities to improve the trade voluminous for municipal bonds. These are very good positive news for the sector at large. Also since India has an ongoing in G20 Presidency, is focused on -- its focus on these parameters bodes well for us. On the quarter's performance, the nature of our services and our diverse customer base has helped us to provide a stable revenue line, and this is reflected in the company's reporting a year-on-year 6% growth in its operating revenue at INR 158 crores in the third quarter. This growth being driven partly by organic volume growth in waste processing, along with the steady state of operations in our C&T operations and also rated to some extent by the new Nashik C&T project, which started operations in December 2022. On the MSW, C&T project side, we currently have 15 ongoing projects. The C&T business volume remained flat on a year-on-year basis at 0.4 million tons in third quarter. And as mentioned earlier, our new Nashik C&T has started operation in December '22. This will add to the volumes growth going forward. Coming to the MSW processing side, the total tonnage processed during the quarter increased by 7% to 0.64 million tons at our MSW processing projects, which included Kanjur, Pimpri-Chinchwad and the Greater Noida biomining project. An update on the reuse energy plant at Pimpri-Chinchwad, the project is on track, and we expect the operations to start in Q1 of the next financial year. We would also like to address the key point, which is underlying this quarter's performance. As we are aware, we worked with a lot of municipalities and government agencies in over 14 municipalities to integrated solid waste management solutions. This sometimes increases our receivables challenges. The company under the guidance of its Board has initiated a process of creating a receivable reserve to reflect the nature of our business, which is aimed avoiding comfort to the balance sheet and some cushion there. We have initiated this project by creating a reserve of INR 14.2 crores in the quarter. As we go along, we hope to refine this receivable reserve titration based on historical track record of managing receivables and our alternative saving defaults study in this limited space. On a reported basis, the EBITDA is down by 15.4% margin as compared to 21.9% for the same period last year. But on adjusted front, which is considering only core revenues and excluding index adjustment and this expert trade loss provision, the adjusted EBITDA for the quarter would have been 24.8% as compared to 26.3% reflecting almost '21 margin trend. And for more color and on the operations and business outlook, let me invite Mahendra to take over. Mahendra has over 30 years of experience in the urban infrastructure and waste management sector with extensive experience in the areas of corporate strategy, project development, sales and concerning the waste and water urban infrastructure. Prior to Anthony, he was at SUEZ, where he played a strong role in the development of the company's operations. Traditionally, it was purely focused on metropolitan cities. It is now diversified geographically and works also in Tier 1 and Tier 2 cities in India.

Thank you, N. G., for the introduction, and good afternoon to you all. At Antony Waste, the business and strategy has been to be the best in C&T and MSW processing sections. And this is exactly what is reflected in the steady growth of our operations over the years. Not to talk about the various contracts that the company has bagged in the new course. Going forward as well, Antony Waste intended to achieve high level of secularity in risk management and create a strong sustainable model. The company is also evaluating strategies to de-risk the business by adding more non-municipal revenue streams. For achieving this, the company has created a strong team to explore the ancillary waste management businesses like the one which the company has bagged recently, in fact, last week, mainly the processing of construction and demolition waste in Mumbai City. This is a new business segment that we have added in our portfolio. We are happy to let you all know about the details of the significant order, which includes collection, transportation, processing and disposal of construction and demolition waste in Mumbai City of 600 tons per day. This 20-year construction contract with BMC is worth INR 1,024 crores. That's a little over INR 1,000 crores over the 20-year precision period. The sustainable material recovery approach is planned to be used here, which identifies specific C&D materials as commodities that can be reused in new construction projects. This is our first order in this category, and that's why it's a big breakthrough for us. Hence said that such repeat or multiple orders are [indiscernible] to the confidence our clients have in us. We have a head start because we are an integrated solid waste management company and building a stock record -- and a strong track record for the future. Our idea was to implement a several economy-based process will continue with our emphasis on increasing our sale of RDF, compost, concrete, sanitary waste and so on and so forth. Talking a bit more about the secular economy and creating sustainable living conditions for the citizens in the cities that we operate. We started a recycling business in Varanasi from the waste collected there since last one quarter. In this third quarter of the year, the recycling activity has been going well, and the company has effectively recycled about 100 tons at its Varanasi site, preventing this waste from ending up in the local landfill. This is over and above UNESCO defined by the [indiscernible] and we are very pleased with the rate at which the project is progressing. We intend to do similar projects in all cities, where the company has C&T operations. In addition, keeping with our cluster focused business approach, the company bagged a 7-year mechanical power sweeping contract from the Pimpri-Chinchwad Municipal Corporation. In city, where we already have an ongoing waste to energy and the collection and transportation contract, so in this -- with the power sweeping contract calls for the supply of 4 power sweeping machines and the daily maintenance of about 160 kilometers of road length. During the quarter, the biomining activities have a consumer integrated waste processing sites have progressed very well. Due to the high calorific value of RDF, demand has been strong, resulting in record RDF sales of over 15,000 tons during the quarter. This trend is looking up based on the response we are getting from our clients. And to bode the financial aspect, I will ask N. G. to take over from here. N. G. over to you.

Thanks, Mahendra. Let me share a highlight of our financial performance. For the third quarter of the financial year ending March 2023, the performance on a consolidated basis, the operating revenue front, the revenue has increased by 6% to INR 158 crores as against INR 148 crores in the same period last year. For the 9-month period, that is operating revenue stands at INR 474 crores, up 12% on a Y-o-Y basis, average INR 422 crores for the same period last year. Increased volumes in both processing and C&T services as well as price escalation as just drives the part of the increase in core revenue. And as mentioned earlier, our market C&T project has contributed only for 1 month of the last quarter. On the consolidated EBITDA front, the company has registered a de-growth of 5% to INR 34 crores in Q3 FY '23 compared to INR 36 crores in Q3 FY '22, with an EBITDA margin being 15.4%. As mentioned at the beginning of the call, if I were to look at adjusted core EBITDA, which is excluding IND AS and ECL provisioning, the consolidated EBITDA would stand at 24.8% and compares 26.3% for the same period last year. In absolute terms, the adjusted core EBITDA could have been INR 44 crores as compared to INR 42 crores in Q3 '22. For the 9-month period ending December '22, the consolidated EBITDA has registered a growth of 7% to INR 129 crores compared to INR 120 crores for the same period last year. The profit before taxes for the quarter stood at INR 19 crores as against INR 23 crores same period last year. And for 9 months, it was INR 84 crores versus INR 79 crores for the same period last year. Profit after taxes is at INR 16 crores versus INR 19 crores, and for the 9-month period is INR 72 crores versus INR 65 crores. On the balance sheet side, our net debt to equity as of 31 December '22 was maintained at on ForEx. The total debt as of 31 December '22 stood at INR 342 crores and net debt is at INR 254 crores. The average consolidated borrowing cost for the company for the period ending December '22 stands at 9.7%. Our receivable days as of December 31 stands at 61 days, which if adjusted for the initial holding would still be around 66 days, still better on a sequential basis. That's from our end, now we can open the floor for Q&A.

[Operator Instructions] The first question is from the line of Faisal Hawa from H.G Hawa & Company.

Sir, am I to understand that this INR 13 crores to INR 14 crores other expenses increase is due to provisioning that we have put for debtor, which may default in the future? So is that the right way to understand? Or is it that we have already -- we have lost the money and it will not be coming. So that's one. Second is, sir, in the construction processing contract that we have, do you see a possibility of also processing the materials that we collect as waste and making some end products out of it? And if yes, what is the revenue potential for those end products? Third is, what --the Union Finance Minister Nirmala Sitharaman also mentioned [indiscernible] in a press conference that a lot of [indiscernible] because of the waste and the lithium gas are being released from the dumping yard. So this may become a very big issue in the future. How is the company addressing it, so that before it becomes a large price issue, we are able to process this methane gas and also the waste on a very war footing before something untoward god forbid happen? And fourth is, sir, where do we stand on the vehicle scrappage policy? Is there something in the budget for us? And do we -- are we going to now go forward with it?

Thank you, Mr. Hawa. Let me take the first part, and then I can -- then Mahendra can step in for the balance 3 points. Given the nature of our work, with those essential in nature, there is always a time delay in realizing the funds from a few of our plants. The company has offer detailed internal due diligence initiative process of creating a receivable reserve, which is in the nature of expected credit loss in the providing of formable delays in receivables. So what we are saying is this INR 14.2 crores is not a write-off. It's just a conservative approach to provisioning this number. Now the reason that has led to us arriving this number is primarily due to factors like delay in getting work orders, delay in getting approval for the work order, delays in getting interdepartmental approval for bill processing and release of funds from pre-agreed some of central channels. So these are factors, which is beyond the company's control stuff in bureaucratic time lines. So the company has actually gone ahead and kind of factored is that a time delay of leasing the funds, so let us make a provision. These are not write-offs. Let me repeat that. These are basically our expecting funds to be released in a particular time zone. This is now getting spread out. So that is why I'm making a provision. These are not write-offs, and we expect to realize this in the forthcoming time. On the other points…

On the other points, Mr. Hawa, you asked about the C&T contract. So the revenue that we talked about, about INR 1,000-odd crores is only from the tipping fees that we are supposed to get from the client. The revenue from the sales, of course, to answer your question directly, I mean, yes, the project is about collection and transportation of C&T waste plus processing into salable products like [indiscernible], paver blocks, concrete and so on. So the INR 1,000-odd crores is only from the tipping fees. The revenue from the processing of this thing is something that is going to be an upside.

Okay. No. But what may be the revenue that we are expecting in processing this waste -- is there a plan for it?

This is what -- yes. So we have done a recent study, I mean, of this segment. What we have figured out is that this is a new segment that we are trying to create. As of now, we feel in the coming year, in the next 1 or 2 years, the revenue from this should be about add to another maybe 10-odd percent. Although going forward, the future is very bright. You can expect about 10% additional revenue from this end product sale.

So for example, let's say, in a particular year, our revenue from receiving fees is INR 100 crores, so we can get maybe another INR 10 crores from sale of finished products processed.

So that INR 10 crores would be very margin accretive. So it is marginal. That's what we start by saying it's marginal for the time being, but the demand is picking up. And going forward, we expect it to go up. I mean, today, we cannot give you a number in terms of how it will be -- how much will it be in the next 5 years. But in the next 1 or 2 years, we expect to be definitely more than 10%, additional 10% from what we have reported. And so our feasibility of the project when we bid also is -- only on the basis of revenue from cost increase. So that's purely an upside.

Okay. So on your question of vehicle scrapping business, I mean, that's a very interesting question. I mean this is something which is a subject, which is very close to our heart. We have made decent progress. And by the end of this financial year, definitely, we should be in a very, very advanced stage of announcing to the market about our first vehicle scrapping facility, the revenue from which we expect to accrue from FY'25 onwards.

So we will announce in the next financial year and or this financial year?

So let's say, by -- let's say, in a year from now, that is maybe January, February '24, we'll be announcing our plan. And then we'll be implementing it followed by -- yes, followed by revenue accrual from maybe March -- mid June or July of FY '24.

So and -- about my question of the waste and the methane gas really affected the [indiscernible] of the City, so my pointed question is that if not forbid with any untoward incident happened. And then we get blamed for it, it could put the entire business at risk. So are we taking any ball putting steps to really address this before any kind of less coverage or negative feedback comes in?

So Mr. Hawa in the landfill that we operate, which is basically the Kanjur facility, we have a mechanism wherein we expect the methane and we generate power out of it. So the buildup of methane and that leading to the event that we have seen in Deonar is not a possibility at our side. But problems like with other landfills, which are not treated, they are actually dumping grounds. So what they are saying is very true. But in the site that is controlled and operated by Anthony Waste Group, this is not an issue because we are tapping the methane, we are extracting it, and we are generating forward of the same.

The next question is from the line of Neerav Dalal from Maybank IBG Research.

A couple of questions, first, on the construction and evolution waste contract, so…

Mr. Dalal, sorry to interrupt you.

Yes. Now is it audible?

Yes, sir.

Yes. Okay. So this is regarding the C&T waste contract from Mumbai City for 600 tons per day. Just wanted to understand how will be the revenue trajectory of this, we're talking about INR 1,146 crores over 20 years. So would it be equal? Or I believe this would be based on the tonnage that we pick up every day. So some information in terms of how the revenue recognition here will happen. And a related question would be -- what would be the CapEx requirements for this contract and going ahead as we look at processing of this waste. So what are the CapEx requirements here? Where will it be done and things on that?

Right. So thanks for your question. As for the C&T, that investments is for this project, the CapEx requirement for this project is about INR 50-odd crores, which is what we'll be doing for both the companies, C&T modules as well as the processing plant. Both of that we will be implementing in the year 1 sales. Okay? And as far as the revenue is concerned, as I said earlier, that the primary revenue stream for us is the tipping fee. So 600 tons per day times the tipping rate is what will be the revenue. And as for the contract, we are entitled for an annual escalation. So that will further add. So [indiscernible] will increase the future revenue. One is the organic growth of the quantity, the tonnage and the escalated tipping fees.

So just to stick in to this. The 600 tons would be the optimum rate -- optimum waste that we would be carrying, right? So it will be gradual over the period.

So 600 CPT is actually the client estimate as per the tender and even the small district study that we did at the time of bidding. And we have no reasons to believe that it will be significantly higher or lower than 600 CPT. So for the time being, we can continue with 600 CPT as a number to assume our future revenue predictions for year 1.

Correct. And the revenues would start in from next year? How should one look at from the April-June quarter? Or how should one look at?

So Neerav, we have a mobilization period of 12 months, one. And second is the construction there activity normally is a seasonal in nature. So during those months of monsoon, the C&T activity kind of drops and then it picks up during the festive season and drought season. So this 600 CPT is an approximate number over a period of time, one, for the financial year, for example, 12 months period. And secondly, the tender also allows us to plan for a 20% to 25% access to be managed. So the facility would be increased to purpose 600 tons plus 25%, but the daily tonnage will swing depending upon the market conditions and the seasonal factors.

Correct. And just very quickly on -- staying on this, so the builders or the sites, so you would be contacting them or how will this work happen because there will be multiple sites across…

So normally, what happens in this section is each local ward offices, so when a building is getting redeveloped or anything they need to get the local ward office approval. That's how the process of flow of information will happen? Where in a particular ward officer in charge of -- the builder gets in touch with such people and they kind of make an estimate of the total tonnage that like to become, and they'll make the builders get in touch with us, and we are supposed to pick up the waste and weigh it at the weighbridge, give a certificate that this is a tonnage that we will shift from that particular site. So that's how each player's view -- there is a responsibility? So is there any -- what do you say, any excess or necessiency, he needs to be answered to the corporation view based on the estimates.

Got that. And just generally, in terms of the contracting, how is the visibility that you have? What are the number of contracts that you have bid for? And in the C&D, what movement are you looking at? Are there other regions where such similar contracts are coming out?

I mean there are a few projects in the pipeline. I mean nothing gone on the base -- they're still in a drop stage in order fees, but most of the metropolitan cities are the first one to be of the block, and then they are contracting tenders.

So that's on the C&D, but generally, in terms of our C&T business waste?

So the C&T business, I mean, notably, I would point out 2 specific tenders, which are some of our tenders are coming to an end. So those definitely are going to come up. So those are the ones which are our first priority in terms of focus areas. But then apart from that, there are a few more cities, especially in the south zone that we are trying to target. Today, we cannot talk about specific cities, but I mean -- broadly, I can say, something in the south zone is looking promising.

The next question is from the line of Dixit Doshi from Whitestone Financial Advisors.

Sir, I have a question on our Slide #22 of the presentation. Just wanted to understand about the accounting, so if I go on to Slide 22, the current quarter EBITDA, you have mentioned is around INR 34.3 crores. If I add back the provisions, which we have done is INR 14 crores. So the EBITDA could be INR 48 crores. And our core EBITDA is INR 30 crore. So is my understanding right that the project business have the EBITDA of INR 18.6 crores?

So no -- so the IND AS accounting part, the contract and other also includes revenue from power sweeping and sale of -- scrap over there. So this would not be the right way of looking it because that's a decent amount of money sticking there. So I would say, all the contract and others of INR 64.6 crores of revenue line, around INR 48 crores would be my contract revenue purely, the balance being my sale of RDF, sale of composite and sale of scrap and revenue from my power sweeping contracts.

Okay. And similarly, for the 9 months, how much it would be out of INR 192 crore?

I would say, it would be around INR 168 crores would be my contract revenue there.

INR 168 crore? Okay. So for 9 months, there would be an EBITDA of around INR 30 crores from the project?

Yes, for 9 months, yes, because the EBITDA margins in the project level is basically a book entry that we have, which is calculated at the project somewhere of around 10.2%. So we -- it's just a number that is plugging based on the CapEx that we have done for Pimpri-Chinchwad and the Kanjur projects.

Okay. So just to understand, so let's say, once this project starts from next year onwards, let's say, the project revenue will not be there. So this INR 30 crore EBITDA will no longer be there from next year? So what happens is that from the contract section, the revenue goes up, the project expenses also goes up, one. Second is, then you'll see the revenue from core operations starting, and that will add to my emerge on the processing line item. So what you see at INR 129.7 crores that will increase by the processing component, which is going to come from those sites.

Okay. Now just to understand. So currently, we have 4 projects, I think, which are going to come up. One is PCMC, Nashik has already started, something in Kanjurmarg, NDMC also, right?

Sorry, can you repeat that question, please?

So I think 4 new projects are going to give us the revenue from, let's say, this quarter or next year. So one is PCMC, the Pimpri-Chinchwad? The second is Nashik, which already has started, then something is going to come from NDMC and Kanjurmarg as well?

So the first 3 points are right, we have incremental revenue coming from Nashik, the incremental revenue of PCMC's waste to energy in the next year and the NDMC contract would be ramped up completely, which is actually ramped up from February 15 onwards. So we should be having that completely in our place. The Kanjur facility would be part of my enhanced with processing of fresh waste. So it's an ongoing project that not only incremental revenue significantly from my sweeping section, but that will be implemented with sales of RDF and composite. But having said that, these sale of byproducts, we don't enjoy the same margins that I have in my processing site.

Okay. And can you just give me the -- so let's say, once all these projects start, the annual revenue potential from PCMC and Nashik and NDMC?

We normally don't comment about site specific numbers, but it will be fair to assume that the annualized number or [indiscernible] of affairs based on budgetary allocations from the corporation, we will be looking at around INR 82 crores or INR 95 crores annualized contribution. Comfortably, I mean I'm not even including NDMC at 100% scheme. So IND AS will contribute around INR 95 crores of revenue. So we should be locking up around INR 130 crores, INR 140 crores of revenue on that side. And that is our conservative numbers over year.

Okay. And so just to conclude, so Nashik has already started, PCMC, you said from Q1 FY '24, and NDMC from when?

NDMC should start from Jan or February, we always field them on our entire site. We are gaining confirmation from the client to confirm the same. So once that is done, we will have 100% come signoff on that part. And you will -- Kanjurmarg will have incremental revenue from field of RDF and composite, I think these are all seasonal elements. So that will come as and when it comes.

Okay. Now one more question on the -- where this PCMC project -- Pune project, so I was just going through our past con call. So just to understand, so the CapEx for this Pune project is INR 250 crores, of which approx INR 50 crores, we will be getting the grant and INR 100 crores, INR 110 crores, we will be taking debt and let's say, INR 40 crores, INR 50 crores would be through internal accruals. And it was mentioned that this can generate INR 65 crores of peak revenue top line. And if I assume, let's say, 40% EBITDA margin also, then it's around INR 25 crore EBITDA with around INR 10 crores of amortization and INR 10 crores of interest, then we will be hardly earning like INR 4 crores, INR 5 crores. So the ROE will be in the single-digit in this project. Is it a fair understanding?

Mr. Doshi, there are 2 assumptions that can improve on the current -- the numbers that we are seeing is based on very conservative system. Anthony has never executed a waste to energy project in its lifetime. So we have been very conservative and trying to be safe so that we at least cover our base numbers and costs, one. Second is, the PLF that we assumed when we are arriving at the revenue line, it's around 75% PLF. Going to the track record that we have seen in similar plans set up by [indiscernible] we can be as high as 85%, and we can even touch 95% during the parts of the project life. Third, more importantly, there is also keeping key component, which is linked to the escalation. So over the last 2 years, we have seen a significant spike in the cost of fuel and labor costs. So that will also add to our topline EBIT. So these are 3 positive factors, which can improve the written dynamics. But yes, the point is, why did we bid so competitively, is something that we wanted to work with a client who is strong to pay you on time. The revenue is range. My exposure to the state electricity both are zero. My client is [indiscernible] which is simply change to municipal corporation pays my revenue. So these are the conditions that we put it forward. The CapEx is something which we didn't negotiate and compromise on. So we went with [indiscernible] goes on and reset. So we are paying top dollar for the CapEx. So the return that we're seeing is for not taking any risk here. Going forward, this will improve when we are able to indigenize certain parts of the construction, and we are able to understand the dynamics of running waste to energy plant. Today, we don't want to compromise on quality and on serviceability and we don't want to take chances yet. So these are the numbers that is what we have on the drawing book. But we will revisit this once the plant starts.

Okay. And just last one question. After this provision, how much would be currently more than 1 year old receivable?

I think currently more than 1 year old receivables would be less than around INR 40-odd crores, but these are all due as and when the project closure happens. So the tendering term clearly state, there is a retention money, which is retained by the plant and the release at the end of the project lines. So those would be more than 1 year, which is the case with most of our contracts in this scenario.

Let's say, out of INR 40 crores, if we exclude the retention money, then the disputed amount or the delayed payment would…

That is INR 8 crores Okay. Okay.

INR 8 crore?

Yes.

The next question is from the line of Manav Vijay from Deep Financial Consultants.

First of all, on the provision that we have made of around INR 14 crores or so, if you can tell us in our history so far, how much amount we have written off?

So we have not written off any money historically. These are the dues which is delayed for us because there are changes in the administrators. So in most of the corporations, let it be the BMC, Nagpur, Pimpri Chinchwad or even Navi Mumbai, Thane for example, Delhi, we don't have standing committees at these places, which can pass the budgetary approvals, which can move out on these norms. So that is a delay because the very structure of organization is not there. So unless and until this standing committee is elected and they are able to vote and pass the budgetary spend, these things are getting delayed. And that is the reason why we've taken a provision. So we have not taken any write-off. These are getting delayed for factors which neither the people in control of the corporation able to do it nor is the company able to swing it because the people who are supposed to approve these documents are not in place.

Okay. And going forward, do we -- so should we factor in any more provisions? Or this is -- or should we consider this INR 14 crores as one-off?

So this was discussed in our Board multiple times to have a methodology to approach this expected credit flow, as we call it. I mean that is -- in the past, we were very client-specific, very project specific. But that's not the right way when you're looking at multiple clients, we have around 19 municipal corporation that we bought. So we need to adopt a methodology. So we are looking at a natural study to be done in this aspect, especially in the absence of the probability of default risk of municipalities in this area. We are not able to come out with a clear plan, but we are reaching out to experts who can quantify this, maybe 1% or 0.5% of the revenue should be set aside, that is something that we're talking about. But how to arrive at that ratio is something that we are looking at exports to provide that data to us. So what we understand today is based on our -- this delay, it's a onetime, it's never in the history of a BMC for example, the last 180 years of its existence, has the budget in passed by the administrator alone. So this is only quite in the history that's happened. I mean, similarly, this kind of events, we don't expect to repeat frequently. So we believe this could be a one-off thing, but we will keep revisiting whether we need to rationalize this, whether we need to quantify this, whether we need to have a study to prove this and have a methodology to support us.

Okay. Fair enough. Now moving to the next question of basically this new project that we have got of C&T. So now the processing of this waste will be happening at the Kanjurmarg or the BMC is going to give you another piece of land for this?

No, this is not at Kanjurmarg. This is going to be a different site.

This is entirely in the western zone. So we will be locating a site in the western zone, the western some of the area, where we'll be possessing will be taken care of. It will be away from the residential zones.

Okay. And then basically BMC released this contract. So was it only one single contract of 600 TPD or they were actually multiple contracts and you -- and actually, Antony got only one contract?

There were 2 packages. One was for the western suburbs, the other one was the eastern suburbs. We bid for both. We were -- we won western suburbs. So there were 2 packages.

Is it possible to share who got the eastern suburb project?

I'm sorry?

Is it possible to share the name of the company got eastern zone project?

Metro.

Metro Waste.