APL Apollo Tubes Limited (533758) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the APL Apollo Tubes Limited Q4 FY 25Post Results Earnings Call hosted by Batlivala and Karani Securities India Private Limited. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions once the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sailesh Raja from Batlivala and Karani Securities India Private Limited. Thank you, and over to you, sir.

Yes. Good evening, all. On behalf of B and K, I would like to thank everyone for joining APL's, Q4 FY earnings conference call. We are pleased to have with us today, Sanjay Gupta, chairman and managing director, Mr. Deepak Goyal, director of operations, Mr. Anubhav Gupta, chief strategy officer, and Mr. Chetan, his senior for the company. So I will now hand over the call to Mr. Anubhav Gupta for his opening remarks, following which we will open the floor for the Q and A. Over to you, sir.

Thanks, Alesh, and thanks B&K for hosting our organization for our quarter 4 FY '25 earnings call. I welcome all the participants who have dropped by. If I have to start this call regarding our FY '25earnings, a few highlights I would like to make. Number one, we closed 3.1 million ton as a sales volume for the full year. This makes APL Apollo as the world's largest downstream steel player outside China. And in terms of structural steel tube, we could be even bigger than the Chinese steel pipe companies. It's been second year that we have closed our balance sheet with net cash. As of 31st March 2025, we signed with net cash of more than 3 hundred crores on our balance sheet. Our operating cash flow to EBITDA is more than 100%. Again, if you see last year's trend, our OCF II EBITDA has been around 90% consistently. Our ROC for FY 25 was 25%, which is slightly off last year, but we shall come back very strongly and we shall give you reasons as we move forward. And it's the fifth consecutive year of almost zero working capital days. We started cash and selling campaign in FY '21. And throughout 5 years, our distributors, dealers, customers have given some job to our strategy of debt, which has led to massive cash generation for our company over the last 5 years. And if you look at the performance in last 12 months, I would like to take a step back a bit more. Last 2 years, we have grown our volume by 45%, 15 % in FY '24 and 20 % in FY '25. This came in the hindsight of weak macros, weak retail spend, low government spend on infrastructure, general elections, underpinning on a global scale and obviously, we see down cycle which started 1.5 years ago. So what it did is that it depressed our EBITDA spread below INR 4000 per turn in FY '25as we closed the year with INR 3900 per ton. But this is not the real KPL Apollo, we are capable of generating much better EBITDA spreads and we'll tell about the strategy how we're going to achieve that. But what has what this growth has done to us is that the volume growth of 45 % in last 2 years, it has made us reach at the market share within structural steel pipes where we can command massive brand premium. Now if you look at the margin in our general product category, we reported INR 2800 per ton EBITDA. Now that's almost INR 1000 per ton higher than what we have been reporting over the last 5 years. So even in the most competitive segment, which is general category, we are now minimum 5% higher premium than our nearest competitor. Now this is the realization of brand building what we saw in 2020 when we moved to cash and carry because we knew that the 3 type industries cannot survive without APL Apollo products. So we could command cash and carry and occupy here. Now we are again sure that our brand is so strong, our market share is so strong that we can command more than 5 % premium even in one of the base category product segments. So this is a big achievement. I would like to highlight what we have been able to achieve in FY '25.And with this positioning, we are confident that we will come back with the if it has spread near 5 thousand rupees per ton in FY '26, which will even improve going forward as our sales mix continues to improve and we continue to expand our markets internationally where we get higher EBITDA spreads. As far as the volume guidance is concerned, we are highly confident that we can continue to deliver 20 % growth over the next 3, 4 years. And this is the reason that why we are expanding our capacities to 7 million tons in next few years from current 5 million tons. The CapEx for this is around 15 billion dollars which will be spread across the next few years and it will be easily from the internal cash flows. Now, this expansion is based on 4 strategies. Number one is expansion in the virgin markets. So virgin market number one is East India where we are adding 2 plants with combined capacity of 500 thousand tons. The next emerging market is Dubai in international market because we are adding additional 200 thousand tons. Then in South India, we are adding up a fourth plant with a capacity of 360 thousand tons. The next strategy here is the expansion in the new product segment. So one is the grouping sheet, which has done well for Apollo in the last 2 years since the launch. And we are increasing capacity by further 500thousand ton in this segment and another 100 thousand ton in the heavy segment. The third strategy is to focus on exports from the Indian mill. And that's the reason that why we have decided to put up a plant in Khud, Gujarat with capacity of 300 thousand tons. Now that India is being seen as a favorable trade partner from the website, we are confident that with our strength of steel buying and expertise in such as Bluetooth, we will be able to gain market share in international markets from Indian mills as well. And fourth category is of course to maintain the brand premium for APL Apollo, which will keep our margins higher in the coming years. And lastly, I would like to tell you that after 12 months, when we come on this call again, our ROC will be around 25% and we would have covered all the earnings loss, what happened in FY '25 because of the debt margins and the company will amount much stronger with more cash on the books and higher institutional ROE. Thanks so much. Happy to take questions now.

[Operator Instructions] We will now begin with the question and answer session. The first question comes from the line of Amit Dixit from ICICI Securities. Please go ahead.

Yes, hi. Good evening, everyone, and congratulations for a great set of numbers and announcing the capacity expansion plan much awaited. I have a couple of questions. The first one is on the capacity expansion plan itself. So you have highlighted the fact you will need to expand in roofing sheets and heavy structures. Now, I just wanted to understand what is our current capacity utilization in both these segments? And what gives us confidence to launch capacities in these 2 particular segments where the traction has been a tad slower? That is my first question.

The floating sheet is 100 % utilized as of now and that's why we are expanding. And in heavy structural, the utilization is 60 % as of now.

Okay. So, by the time this capacity comes, sir, you expect that this segment also would be maybe to utilize the 80 % kind of utilization will be there.

That's right. That will increase, right, for next year.

Of course. The second question is in Slide 22, you have highlighted the opportunity in solar space. Now in which of these capacity expansion this particular opportunity fits in?

So this is, for Solargy, I mean, there are, like, 2 3 kind of drug group. And some of these are also coming in [indiscernible]

And through that, for Solar, we support structure particularly to can't use DST. One of the competitors for highlighting that.

Yes. So as of now, the talk queues are being produced on information mail. That's right. Okay. Sure.

The next question comes from the line of Kumar Saumya from Ambit Capital. Please go ahead.

Good evening. So just one question from my side. [Technical Difficulty] So just one clarity I want to understand, [indiscernible] I'll actually teach you the fee title had gone down that it is 5, and we have a big one to loss of award INR 150 crores. This quarter, again, the fee title are up about INR 50 crores. So if you can just help me understand where is the inventory gain in this sense?

So in Q2, the decline in steel prices was around INR 8000 a ton, okay, that was very steep. That's why we had to book inventory losses. And in Q4, the increase in steel prices around 2 thousand rupees a ton, which does not move the needle, plus or minus. So this EBITDA of INR 4.13 billion is without any inventory gain.

Okay. And then lastly, what is the utilization level for Raipur and Dubai for the full test as well?

So, Raipur, if you see, it is around 60% on blended basis across the product segment. And Dubai, we have operational capacity of 300 thousand tons. And in Q4, we did volume of around 45 thousand tons.

And for the year-end duration?

Year end is around 145 thousand tons, what we did for the full year, 145 thousand tons. Out of that 45 thousand is not in Q4.

The next question comes from the line of Bharat Shah from Ask Investment Managers. Please go ahead.

The capacity, you said the growth rate of 20 % plus over next 3 years. But your own calculation for this, that it should be better than that because current demand for these structural steel tube is about 9 million ton, which is expected to double to 18 million in, 5 to 6 years. And essentially, what is equal between HR virgin materials and secondary materials, for a half each. But over 6 years, we expect, actually, the secondary route to decline. And therefore the entire increase to be taken up by the primary virgin materials. Therefore, that itself suggests close to 20 % compounded growth for 6 years. And if we gain the shares further as we expect to do, then we should be doing better than that 20 %, isn't it?

Good evening. I can explain you the growth around 20 %. As you know, the acuity, the economy and the scenario is not helping us and we are also pressured to maintain the margin also. But [Foreign Language], 5000 in cash of liquor and we have to maintain this margin also. But our total, I can say you have a total plan for 2030 is 10 million ton minimum. 10 million ton, it means 5 million ton we are already ready for marketing, some plants ready for 5 million tons and 2 million ton total capacity already [Foreign Language] one plant in Dubai for API2 for exporting US and Canada market and local locally Dubai also. [Foreign Language]

Okay. So you indirectly confirmed that basically, that number is a basic number, but potential to do higher than that is evident in the capacity expansion that you are planning yourselves?

Yes, sir.

[Foreign Language] It is emanating. You talked about profitability which [Foreign Language] the kind of swings in the unprecedented swing in the steel prices, which is beyond anybody's control. But is this strategy we have best products, best plants, best ability to cover and industry growth itself is in evidence as to why it will do well [Foreign Language]

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[Foreign Language] The last comment I'll offer, feedback as a comment, given the unprecedented volatility in the steel price and given overall challenging, demand condition, especially considering the fact that this happened to be a year when pre-election post-election phase, got combined. And therefore, it affected the demand and many other things. So a challenging environment [Foreign Language] Would you say, this probably has been the most difficult year to manage, in terms of the external challenges?

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The next question comes from the line of Aditya Welekar from Axis Securities. Please go ahead. Yes.

My question is specifically on the guidance on sales volume which we provided in the last quarter for 26 and 27 of 4 and 5 million tons. And, if we go with 20 % volume growth, this guidance is slightly exceeding that. So is it fair to work on these numbers of 4 and 5 million tons of sales volume for 26, 27, or it will be slightly lower than that?

I mean, see, I mean, this number which we gave, this week gave us a lot of thought, right, and a lot of calculation behind. It should be backed with the market situation. It should be backed with the weak capacities in our or the plant. It should be backed with our distribution network. It should be backed with our with this situation, what is running out at macro level, global political level. So, yes, I mean, we are confident that 20 % year-on-year volume growth for next 3, 4 years is highly achievable.

Okay. And, the EBITDA per ton for general products, from 1970 to 2800, is it one factory? Is it because of the drop in the speed between Patra and Trimal? And discounts coming up, and will it sustain going forward?

No. No. No. No. No. This is because of the market share at which now Apollo is positioned, right, where the replacement, for our brand is more visible.

Understood. So it will be sustained, right, going forward?

It will sustain. Yes.

And last part is on the guidance of 1500 crores of CapEx. How it will be phased out for which, year wise, if you can, throw some idea for 26, 27, 28?

I mean, if you could close per year [indiscernible]

The next question comes from the line of Sneha Talreja from NuvaMawelt. Please go ahead.

Just wanted to deep dive on your EBITDA for Tanya. Firstly, you have, of course, pulled up the discount, and you mentioned there are no inventory claims. But what would be operating leverage benefit that you would have received from me in this particular quarter?

So, Sneha, if you see, I mean, Q3 volume was 830 thousand ton and Q4 volume is 850 thousand ton. So sequentially, cost benefits will not be too much visible. There will be more visible in quarter one as the volume expands beyond 50 thousand tons or second quarter. But yes, if you look at our employee cost, that has come down, right? Obviously, it is supported by the surrendering of salary by Sanjay ji. But other than that, we are working on all the fronts, whether it is freight cost, whether it is power cost, whether it is fuel interest cost, right? So some benefits keep on coming in. And then the volume ramp up, whether it is 20 thousand tons quarter on quarter in period. Some leverage you will continue to see over the coming quarters.

Understood. Given your mention about the salary, you know, part of it, how sustainable is that until when can we see those kind of benefits? That's one. Secondly, we could also see that, you know, kind of there was a tug of war between volumes and margins. The reason I'm saying is you did give guidance of 10 % QoQ volume growth, and you also gave 400 odd crores EBITDA, while we did not see the volume growth at the same level when we saw you exceeding, the margins. So what is something, so is it something that, you know, next year also there will be going to be, you know, margin, you know, margins is going to be something like, you know, your core focus? Or how are you planning out things here?

So, Sneha, I see, I mean, again, I mean, like I when we started the call, I said last 2 years, we grew our volume by 45%, right? So this volume growth came in the backdrop of very, very challenging environment, right, which was macro at country GDP level, then elections, pre-election, post-election and thirdly, our own industry, which was going through massive down cycle, right, steel pipe has crashed by 25% in last 18 months. So, that's what repairs the margins. But good part was that we could build the market share at a level now where we stand, we can command 5 %, 6 % premium over our next competitor, Right? So this gives us confidence that maintaining 20 % volume growth like how we did in last 2 years, my EBITDA spread will continue to improve. Plus, we are all the new capacities which are coming up, they are also lot of strategically located whether it is new virgin markets like East India, Bhuj for exports or it is international sales from Dubai plant or it is entry into new product segments, right. So we are ensuring that the existing capacity doesn't get cannibalized, this could again decrease the margins. The incremental growth is coming from new geographies, new products, right, better sales mix, which will continue to improve our EBITDA spreads going forward. So EBITDA margin will continue to improve without stress on the volume because volume is coming from new geographies, new markets, new products, new plants.

Understood. And lastly, on the spread, which has increased now between the patra, the primary and the secondary spread, which is very much feasible for quite some time, 2 to 3, I think that's gone up to 7 to 8. What the action that you've taken on ground, or can we hear more about it, that, you know, what are you doing additionally in the commoditized segment?

So, Sneha, right now, see, I mean, INR 7000, INR 8000 per ton spread is pretty much comfortable, right, to continue to work with. Okay? I mean, we face challenge when these spreads increase beyond 15 thousand, 40 thousand rupees per ton, right. Under INR10000 per ton, the market is well positioned to go towards SR coil based structured steel tubes, right. Obviously, in month of October, November when spreads when the gap came down, there was a boost of sales in that segment. But like I said, that this general segment of 1.5 million ton, what we are doing, right, so our growth is coming beyond this 1.5 million ton, right, which does not get affected from sponge iron steam pipes. Whether it is coated, whether it is rust proof, whether it is heavy, whether it is light, whether it is damp, right, all these new products, Dubai market doesn't export market, right. So, for our incremental growth, it's coming from products and markets where [indiscernible] pipes don't impact the volume, which is that we will.

Understood. Lastly, in case you can highlight on the Dubai market, what's the kind of opportunity we heard you saying on US Canada opportunities also? You know, who are the existing players focusing on those markets currently? What's the growth rate like in those markets opportunities? I have some flavor there could be helpful.

Good evening, Earlier, [Foreign Language]

The next question comes from the line of Akshay from AK Investment. Please go ahead.

Congratulations on the strong set of numbers. My first question is based on our capacity extension. So in the initial remarks, you have said that we are, by 2030, our plan is to do 10 million tons and we will be coming up into different segments like SSI and all these things. There are already other players in that segment. So what is the rationale by coming in that segment? And would our margins be compromised because of that?

No. No. Which segment, can you please repeat? For what segment are you talking about?

Stainless steel pipes and, other segments. Yes, sir.

No. I mean, you will have to repeat, the question.

? Like, sir said that we will come up, with, 2.5 lakh tons of 4 different, things, SS pipes and other things, which you have mentioned. So if there are yes. So if there are other players, sir, in this segment, sir, so in that, by doing the extension in that segment.

Okay. So that is our entry into super specialty tubes, right? We are going to come up with very, very small investments, right, 250 thousand ton into 4 different categories. Okay. So putting up and investing small amount of INR 300 crore and testing the market, right, into a new product segment. As a company, we decided to do that, right. Our right to win will be, of course, I mean, not instant because we will start with small investment, right. We will ensure that there is no strain on the balance sheet. The Capex initial Capex amounts are very, very minimal. We get into the space, we make our mark, right, then we scale up the business if we are able to have right to win. But initial right to win for the industry is that in this first specialty tube, so we are now going to do run of the mill products like plain API or plain stainless pipe kind of products. This will be specialty products where you will have where the competition is very, very less or there will be only a limited number of players existing in the country and there will be more of import facilities. So we'll be very prudent in identifying these spaces and deploying the capital.

Okay, understood, sir. And so my second question is based on our competitive scenario in this tube industry. So, basically, we are the market leader in that industry. But I want to understand, sir, that what is the entry barrier in our industry, and, there are many big giants like Tata Steel and JSW. So, I have seen the still use of Tata Steel as well as the other players as well. So, are there any other any data if they expand their capacities and they upgrade some market share in that segment?

I guess, I mean, I would leave it to you to analyze, okay, what are the entry barriers here in our industry?

Good evening. We can't get anything coming from this subject because a lot of matter, they are also supplied to us for the raw material. I can only say it that actually, Hamsini bought one and they are very well organized company. They never throw the material in the market, in the low margin. The low margin, but that's Okay. [Foreign Language]

Not an issue, sir. Not an issue. And my last question is the blended EBITDA. So what is our target for blended EBITDA in FY 26?

Near about INR 5000 a ton.

Thank you. Participants, please restrict yourselves to one question. The next question comes from the line of Pallav Agarwal from Antique Stock Broking. Please go ahead.

So just wondering on the -- the positioning of April Apollo. So, what are the branding expenses that we incurred this year, and what are we planning to incur the next couple of years?

So, advertisement spendings we did for the full year was around 31 crores, subassembly. And this year, it could be mild growth, not much.

Okay. The next question comes from the line of Vikash from Philip Capital.

And I just wanted to understand since our cash to burn is, much lower than the cash generation, what is what are the plans with the cash? And, if any, is it good for some light on if the motor is willing -- willing to increase the stakes since it is being very low?

This is one good problem to solve, right? But in general, see, I mean, as far as capital deployment strategy, if we own $100 EBITDA, our operating cash flow is also $100 right? And we have created 4 buckets to utilize this cash. One bucket will go for tax payments, one bucket will go for dividends, one bucket will go for Capex because we are a growth oriented company. And one bucket we'll see is cash piles up on the books and then we'll see how to reward shareholders. But I think over the next 2, 3 years, we will have also these liabilities, which are current liabilities. We should have enough fixed deposits, enough cash surplus cash on the books to match these current liabilities. And then we will see what to do with the surplus.

The next question comes from the line of Darby Singh, an individual investor. Please go ahead.

Could you please elaborate on your statement that India has rendered and more on, how what is leading to commanding 5 % higher margin even with cellular products?

See, I mean, like Sanjay ji said that his strength has always been working on, right, and then in, during one of our discussion leadership, we were sitting and, and we were having interest discussion, how to cut down costs, right. So growing costs is something, which is coming because we have expanded our capacities ahead of time. So, right now, the employee cost per ton, which is around INR 1000 and our own target is to bring it down to 600 rupees per ton. So Sanjay ji just took the lead and he wanted to set by an example, and he said, okay, let me surrender my salary, all my commissions for FY 25 and FY 26. Right. And I encourage everyone to come out with innovative ideas and thoughts, right, how we can reduce the cost per ton, right, and bring down every cost, not only employees, but work on every front. So that's what he kind of decided to surrender his salary for FY '25and FY '26. And on the second question on the premium on our general products, yes, I mean, again, this is the strength of brand APL Apollo, which has been built over a number of years. The first realization we did in 2020 when we moved to cash and carry. The second realization is in 2025 when we increased our prices for general products by 5 % versus our competitor and we are able to sustain that. So, and we are confident that we should be able to sustain this because of our ever improving servicing to our distributors, ever expansion of our product portfolio innovation and ever improvement of our distribution network.

The next question comes from the line of Udit Gajiwala from YES Securities. Please go ahead.

Just one question, if you can highlight what would be a little bit tougher time for export markets? So right now, from Dubai, how much is it, and what would be the target that we are aiming from both when we start those operations?

The EBIDTA per ton for the Dubai export market is close to INR 7000 to INR 8000 per ton. And from India, this, right now, the money is not, could it say maybe INR 2000- INR 2500 per ton. But there is a reason the local steel prices are high than the export price. So now we are importing some quantity for the exporting of material. Then, we should think our margin is good to INR 10000 per ton. So our import, what we are exporting, our report is arrived in the month of June, July. July. From the Q2, our margin of export is also from India is good to plus 2000 piece per ton or maybe INR 8000- INR 9000 piece per ton. But in now, we will not get the cheaper raw material. Our margin is INR 2000- INR 3000 per ton.

The next question comes from the line of Anupam Gupta from IIFL Capital. Please go ahead.

Just one question on the volume guidance. So 20 % full year is understandable, but how are you seeing the near term? Let's say, first quarter, are you seeing an uptick in demand already or we are still looking at second half being the major part of our business?

Right now, we are on right on track. Apparel is just slightly little bit from our target, of like every year, Lucknow is on the downside. I believe we are less than our target, high volume target by 5% - 6%. And May is really good. So I don't think the, like, first half, because we can do 1819 …17 18…..'seventeen. 17-18 last term. In the second half, we closed 2 million tons.

The next question comes from the line of Shweta Dikshit from Systematics Group. Please go ahead.

Congratulations on a good set of numbers. My question is, primarily, what can be what's your EBITDA per time guidance, on our 20 % volume growth each year? Also to be taking care of the fact that if at all, the fuel prices fall again, what is, you know, more likely a sustainable rate of a EBIDTA per time? Or is there a chance that once again when we push higher volumes, is when our focus goes to volume growth, could there be a scenario where we again, push discounts to the market to gain a better market share? So more like the questions that I see was around assisting the EBITDA for the timing.

For FY 26, guidance is near INR 5000 a ton. And over the next few years, EBITDA spread should continue to improve beyond INR 5000 per ton because of improving sales mix and increasing sales from international markets and getting the operating leverage plus working on the cost reduction factors. So we are confident that EBITDA spread should improve year-on-year for the next 3, 4 years. As far as steel down cycle is concerned, we don't see that steel could crash again by 25% as it did in last 15 months. So, since we don't foresee such sharp decline, it should not lead to any decline in our EBITDA spreads. 4% - 5 % increase, decrease does not impact us at all.

The next question comes from the line of Bhavin Pande from Aetna Investments.

So, when we look at, heavy product, in the Apollo structural segment, EBITDA percentage is around 8700. So, how do we look at this run rate, on a sustainable basis?

It should be in the same range, INR 8000 -INR 9000 a ton.

The next question comes from the line of Mayank Bhandari from Asian Markets.

Just wanted to, have a look at the console number for full year. Is it possible for you to share what was the pack contribution from the APL Apollo building products that is your dry for plant? The number for last year was almost INR 26 crore of the pack.

Let's, take it off, of the call, please. You can reach out, to us, sir.

And just one more thing I wanted to understand from the industry competition perspective as we are seeing that lot of players have come and capacity, while there seems to be capacity overcapacity in the industry, would you agree to that point too at this moment?

It could be in the general segment, but not in the value added products, where we have dominant market leadership.

The next question comes from the line of Shweta Dikshit from Systematics.

Could you define what is the total share of exports as of now, including the exports from India and, White Book? And how is it likely to pan out in the next 2 years? What's the target to take the position of export to?

As of now, we are at 6 % and target is to take it beyond 10%. Does that answer your question, Shweta?

Yes.

The next question comes from the line of Deepak Pandey from Savoon Capital. Please go ahead.

So just one slide 7, you have mentioned on the share of the [Technical Difficulty] In the slide 7, we have mentioned about some new specialty cube capacity. So, can you just throw some light on it and what sort of buildup pipeline are we looking at here?

So, here the focus will be to service some industries like oil and gas, refineries and mechanical tubes, right, could be some highly specialized waterline pipes. We are still working on it, right, but that's the vision until 2030 that we must have some present outside structural steel tubes, which could be like 5 % to 10 % of our total capacity by then. Maybe in next 6 months, we will have a better answer to this that what's the game plan, actual game plan.

The next question comes from the line of Krishnam Saraf, an individual investor.

I'm a bit new to this industry. I just have a basic question as to why don't, why don't anyone hit the yield exposure in the market?

You have to say it again, please.

Yes. The question is, why don't players, hedge their steel inventory exposure in the market?

There is no such product, to do this. So there is no way, there is no way, there is no instrument to do this.

Since the participant has dropped off, we'll move on to the next participant. The question comes from the line of Anupam Gupta from IIFL Capital. Please go ahead.

So, you highlighted a very strong cost reduction target for employee cost from 1600 over the next few years. So, obviously, next year, Mr. Philip cannot extend. We will we will help. But let's say, you're still looking at, a meaningful decrease in capacity expansion, coming up over the next 2 to 3 years. [Foreign Language]

[Foreign Language] This is just a tax of automation and then disappear. Yes. Like, a branch cost of that cost. It's close to INR 400 per [Foreign Language] We have to, we have to take 200 % and some automation. All the 3, what is the, we can find the results. [Foreign Language]

Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to Mr. Anubhav Gupta to give his closing remarks.

Thanks, everyone, for dropping by. Look forward to talk to you again during Q1 FY 26 earnings call. Thank you so much.

Thank you, sir. Ladies and gentlemen, on behalf of Batlivala & Karani Securities India Pvt. Ltd., Research Division, that concludes this conference. You may now disconnect your lines.