AVG Logistics Limited (AVG) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Q3 FY '25 Earnings Conference Call of AVG Logistics Limited hosted by Kirin Advisors. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Jainam Savla from Kirin Advisors. Thank you, and over to you, sir.

Thank you, and good afternoon, everyone. On behalf of Kirin Advisors, I'm pleased to extend a warm welcome to all the participants joining Q3 FY '25 Conference Call of AVG Logistics Limited. Please note that this discussion may include a forward-looking statement based on the company's beliefs, opinions and expectation as of today. These statements are not a guarantee of future performance and are subject to risks and uncertainty that may be challenging to predict. Additionally, this call does not constitute of any forward-looking statement or projection related to revenue, EBITDA and PAT. Joining us today from the management team are Mr. Sanjay Gupta, Managing Director and CEO; Mr. Himanshu Sharma, Chief Financial Officer. And with that, now I hand over the call to Mr. Sanjay Gupta, Managing Director and CEO. Over to you, sir.

Thank you, Savla. Yes. Good afternoon, dear investors, and a very warm welcome to Q3 earnings call of AVG Logistics Limited. We sincerely appreciate your continued trust and support as we progress our journey. I believe you must have had the opportunity to review our financial results, press release and presentation, which have been filed with the stock exchange and available on our website also. The global logistics industry is experiencing a period of rapid transformation driven by technological advancements involving consumer expectations and geopolitical shifts. Our company is committed to growth by addressing these industry transformations. We are actively integrating technology advantage, driving real-time fulfillment and customer need and adapting to evolving requirement and geopolitical shifts. This proactive approach to ensure that we remain at the forefront of the industry and continue to provide best-in-class service to our customers. The Q3 financial year typically covers India's festive season, including Deepavali. This period [Technical Difficulty] and e-commerce leading to increased demand for logistics service. Ongoing government initiatives like the PM Gati Shakti, National Master Plan and the National Logistics Policy like continued to drive infrastructure development during this period. This includes the construction of highways, freight corridors and multi-modal logistic park, which aim to improve connectivity and efficiency for logistics. With increasing awareness of environmental issues, logistics companies likely continue to focus on sustainability initiatives. This could include the use of alternative fuels vehicles, electric vehicles and more efficient logistic strategies to reduce their carbon footprint. The company strongly support green logistic and as a part of the commitment, we focus on rail support, which allow us to offer more environmental-friendly solutions to our clients. We are pleased to share various key developments from this Q3 '25 quarter. Firstly, we have added 137 fleet during the 9 months ended 31st December '24. The company has also announced its decision to acquire a major stake in Kaizen Logistics, a move expected to complete by Q4 '25. This acquisition will enhance operational capabilities and further strengthen our market position, and we have secured a prestigious order from one of the India's leading heavy infrastructure-based company, including cement and steel, et cetera. Furthermore, union budget '25-'26 presents several growth enabling initiatives that align with AVG Logistics' strategic objectives. The government plan allocation of INR 2.9 trillion to INR 3 trillion for railway development support and our expansion into rail logistics, reinforcing our multimodal capabilities. The government incentive for EV production aligns with our commitment to green logistics as we integrate EV into our fleet, this initiative will enhance sustainability while driving operational cost efficiencies. As we look ahead, AVG remains focused on delivering 25% to 30% annual growth, supported by diversification strategy, sustainable practice and our commitment to operational efficiency. I'm confident that our continued investment in strategic partnerships will position AVG at a forefront of India logistics sector. Our commitment to [indiscernible] responsibility, customer dedication set up [indiscernible] in the competitive landscape. Thank you for your continued support and partnership, which remains [indiscernible] of our success. Thank you for being a part of the company journey. We are also delighted to share that robust financial performance achieved in the reported quarter and for a detailed overview of our financial performance, I invite Mr. Himanshu Sharma, our CFO, to take the lead further. Thank you.

Good afternoon, everyone. I am pleased to share our consolidated key financial highlights for Q3 and 9 months financial year '25. In the third quarter of financial year '25, AVG has demonstrated robust financial performance on a consolidated level. The company has [Technical Difficulty] reflecting year-on-year... [Technical Difficulty]

Sorry to interrupt, sir. Sir, could you please repeat the last part? The voice was breaking off.

Yes. So in the third quarter of financial year '25, the AVG has demonstrated robust financial performance. On a consolidated level, company has achieved a total revenue of [ INR 142 crores ] reflecting a year-on-year growth of 22%. The EBITDA stood at INR 26.46 crores, representing a increase of 14.4% with an EBITDA margin of 18.58%, which is up by 3 basis points. PBT amounted to INR 7.93 crores, a substantial year-on-year growth of 12.30%, resulting in a PBT margin of 5.7%, up by 35 basis points year-on-year. On a 9 months consolidated level, we reported a revenue of INR 403.81 crores, a year-on-year growth of 17.70%. The EBITDA was INR 74.5 crores with a year-on-year increase of 17.3% and an EBITDA margin of 18.45%. The PBT for the period was INR 21.61 crores, representing a year-on-year growth of 56.10% and a PBT margin of 5.35%, which is up by 131 basis points. Thank you, everyone, for your continuous support and trust in AVG Logistics. We appreciate your commitment to our journey. Your confidence inspires us to reach to new heights in the logistics industry. We value your partnership in our growth. Thank you so much. And now we are open to any questions.

The first question is from the line of Mahesh Seth, an individual investor.

Sir, I have a few questions. So my first question is that any new client addition during this reported quarter?

Sorry, can you come again?

Yes. So I was asking that any new client addition during this reported quarter?

Yes. We are adding 4, 5 new customers in the current quarter, sir.

Okay. Yes. And my next question is that what is the realization or margin difference in cold chain as compared to the normal logistics?

Okay. So if we take FTL business in the industry, so that is -- gross margin is 8% to 12% somewhere, whereas cold chain, we have a margin of around 20%, 25%, 30% case-to-case basis, product to product.

Okay. So for the cold chain, is around 20% to 25%.

Yes. Gross margin.

Yes. Okay. Got it. And my next question is that what is your current fleet in cold chain? And what is the planned addition for FY '26?

Yes. So we have as on today, roughly 400 cold chain fleets with us, financial year '25 closure. And it's a better segment. So we focus on this segment. And we have a plan to add approximately 100 fleets each year in this segment.

So, as of now we have planned around 100?

Yes. So as of now, we are the number 2 or number 3 in the number of vehicles because [Foreign Language] and we will add another 100 vehicles in coming year, next year.

Okay. So we are around #2, right?

Yes.

Yes, I got it. That's good to hear. And my last question will be... [Technical Difficulty]

Sorry to interrupt. The voice is breaking off. Can you repeat, please, sir?

[Foreign Language] So we are first taking the alloy from the customer, only then we are adding the customer -- adding [indiscernible] because it's a high investment and we need a long commitment from the customer to introduce -- add new fleet.

Okay. Got it. And how are you leveraging your warehousing assets? And what is the outlook for warehouse expansion?

So as of now, we are working on 2 models. One is the own asset and another is leasing model. So own asset, we are around 3 lakh square feet as of now. And we are growing around 100% year-on-year or 50% minimum year-on-year in this sector. Like 3 lakh square feet will add, next year, it may be around 450,000 because we have already taken a land in Odisha, our new warehouse of 125,000 square feet is coming in next year of '25-'26. So by and large, we are adding 1, 2 warehouse every year.

Okay. Got it. So we are planning to add around 50% of the current, right?

Yes.

The next question is from the line of [ Souresh Pal ] from KRSP Capital.

Yes. Sir, my question is, in previous con call, you said that we are supposed to win one government tender that is valued INR 500 crores. So what happened to the tender? That tender was supposed to come on or before 15th December 2024. What happened to the tender that I want to know?

The tender that technical evaluation is still going on. And hopefully, by next week, it will open for the price fixing. So because it's a government tender, they are taking its own time. There are 13 within that. So mostly [Technical Difficulty] take a little long because it's a big value tender. Hopefully, by 10th of March, it will open and clear it.

Okay. And sir, what is the revenue guidance that you are giving? As of now, you are supposed to deliver 40% revenue guidance, which seems not possible this year due to absence of that tender. So what is the guidance that...

Minimum 20% will come, right? So if you see our previous growth, so 15% to 20% growth, we had given to minimum 20% growth will come.

The next question is from the line of [ Subhash V. ] from Value Investments.

Okay. So I mean when you say that you would deliver 20% growth, excluding the government contract which you are expecting, I think the Q4 should be closed with INR 182 crores of revenue. So do you think that's possible, INR 182 crores?

Yes, yes, definitely because you see -- if you see our previous last year quarter 4, you see growth because in Indian industry, many companies are having the target like all FMCG companies, their own target. So whenever their targets are increased, then our business is automatically increased in the last quarter.

Okay. Last year, you made INR 136 crores quarter of sales. So you think INR 182 crores is possible then.

Yes, yes.

Okay, that's great to hear.

As of now, we are earning a growth of around 18%, 17.5% or so.

Yes, Okay. That's good. And also, what is the status on that government contract? Like do you still expect to win it maybe at a later stage? Or do you think that is out of our hands right now?

No, no, it will be definitely because a lot of new tenders are coming up. So because...

I was not talking about the new tender. So you had considered a contract from government because of which you guided INR 700 crores revenue, right?

Yes, yes. I am so confident.

So is that contract gone or...

No, no, it's not gone. It is not gone. It is under process, and we have been taking up with the concerned authorities. They have assured us that it will be cleared by 10th of March maximum.

Okay. So it is just delayed and maybe in the future, you might get it.

[Technical Difficulty] has happened because government, [Foreign Language] It is almost complete. Hopefully...

I think your voice was breaking, but when do you expect this to close then?

By end of March.

Okay, by March. And my second question was about the second acquisition. You said you are acquiring 2 companies. One, you revealed that it is Kaizen Logistics. There was another one which is bigger than Kaizen Logistics, which you are planning. And in the last con call, you told us that, that would be closed by end of March. But I think we are approaching March now. And also considering the -- I mean, last time in December when you said that you would close Kaizen Logistics acquisition in another 2 weeks, you said you would give us the stock exchange notification, but that was delayed. And then the government contract also did not turn up. So because of all this, I think the investor community was disappointed and the share price started falling down. So I think you should -- I mean, by keeping some buffer time, when do you think the second acquisition would be completed?

So first of all, I wish to inform you that... [Technical Difficulty]

Sorry, sir, your voice is breaking again.

Kaizen Logistics transaction is already completed.

Yes. Now I am able to hear you.

Kaizen Logistics transaction is already completed. And the new company due diligence is going on because our KPMG and our auditor, so we need a clearance from them for the -- we can go ahead to buy this company. So these companies are a little taking time. I think it will be happen with -- if we get all the clearance from the -- our auditors, due diligence clear, then we will close it by -- in this March month only.

In March month only. Okay. Fine. So in March month, we can expect both the government contracts and the...

[Foreign Language] it will affect our company also. So we need 100% safety. That's why it is taking some time.

Okay. So the March month will be big for you because you are saying both the acquisition and also the government contract, this news could come in March, right, both of them?

Yes.

The next question is from the line of [ Souresh Pal ] from KRSP Capital.

Yes, sir, can you please tell me the cost of acquisition for the acquisitions that you are doing?

No, we are giving them their investment value only. And our target is to take the entire team along with the management of the company, which will work with us for the next 5 years. So the valuation which we are seeing as per the book value and total investment done. We are not giving any as of now. [indiscernible] will be given to them in 3 to 5 years [indiscernible] performance.

So both of those companies, you are acquiring fully, right? It's not like partial acquisition. It's full acquisition, right?

Yes. [Technical Difficulty]

Sir, your voice is breaking. Can you please repeat?

Are you able to hear me, sir?

Yes, much better now, sir.

So 99% of the companies we are acquiring.

Okay.

1% because we have some sentiment with the company, so 1%, we are giving them only 1%.

The next question is from the line of [ Nitin Varma ] an individual investor.

Okay. So what I'm going to say is that I am investor in your company for the last 1.5 years. And as a shareholder, I'm really disappointed with the way things have turned. First thing, in the last con call, you mentioned about the acquisition that it will be completed maximum by 2nd December, we got it on the January. So there is -- I mean, the confirmed word should be used if it is actually confirmed. And about the government tender, you said that it is tentative. I mean, it 85% and it is on the hand of government and it is being delayed from September. So I understand that government tenders are a bit tricky, but still, I mean, the guidance should only be given when things are in hand. And because there is one thing called underpromising and overdelivering and here, we are overpromising and underdelivering, which has shattered the stock price. And apart from that, see, this is -- we -- in this con call, like it started 6 minutes late, there is so much noise in the call and everything which shatters investors' confidence. And I mean, regarding the second acquisition you gave that it will be completed in December, it is still not done, it is still in progress. So there are things like these which are not very good for investors, no good investor is taking interest in our company. And I have incurred a big loss in this because I trusted what you said. So I don't know how to trust you what you're saying now and what will you be saying in future. So it is very difficult for me to trust your words now. And as an investor, I don't know what to do. I think -- I speak for everyone when I say this.

No, no. Actually, things which are happening [Technical Difficulty] investor call. So the tender which we participated, we have informed and there is a good chance to get this tender. And ultimately, we are getting it. But delay because of multiple reasons like [Foreign Language] but as you mentioned here, in future, we have also decided that we will declare only on receipt of the LOI in our hand.

There is a thing in market. I'm in the stock market from the last 10 years, and I must tell you as investors, this is just a suggestion you might take it or not take it. It's just that if you -- the market appreciates the company or the management who underpromises and overdelivers. If someone says I will do INR 700 crores and he is not even able to do INR 600 crores. So even with the 20% guidance you mentioned in the last call that you will do INR 600 crores, even INR 600 crores look difficult now because as of now, I think we are at INR 403 crores. So in the last quarter, Q4, you need to do around INR 200 crores, which I don't think is going to happen. So there are a lot of things, not a single thing is falling into place if we look from the company perspective. Yes, you are doing good in the quarter-on-quarter. There is a little growth. But what you said and what has actually happened, there is a huge difference is that, and that has shaken the stock price. You can see what has happened to your stock and all of us who have joined call, the only thing that matters to us is the stock price and the company's growth. So as a shareholder, as an investor, I'm really disappointed. I've been very vocal about your company on social media and everything. And I cannot say I have been this much disappointed by any company in my last 10 years, certainly. So take this as feedback, you might like it or not, you might act on it or not.

No, no. See, I appreciate your concern, and we will be more careful. And we are doing that hard work, sir. Please trust us. And by chance, market here and there, some things is happening. But in future, as we mentioned, we will promise less and deliver more. We will work -- we are working on that formula. That is the better things for the investment -- investors communities. And we are trying our best to give best results in top line and bottom line and working very hard. And I'm sorry for any inconvenience caused to you, but everything will settle and you will find the results very soon of what we are doing. But I'm not committing more and overcommitting. But I'm just giving a personal commitment that company is doing very well, sir.

Okay. So INR 600 crores, I don't think that's going to happen even if you consider 20% growth. Are you still saying that INR 600 crores will be done? Or should we consider a bit lower than that for this year?

So -- as of now, we are sitting on growth of around 20%. But full one month or so is still pending. So if we get some opportunity of INR 10 crores, INR 15 crores new business, then definitely we'll be able to touch. But again, this is not in our hand. So many, many 2, 3 diversification business of logistics, we are developing. And we are not telling in this call because of the reason we have told, if we tell and not deliver on time, then it will give in the negative impact. So whenever the things will come in our hand, then we will announce in the -- through SEBI or in the next call, we will announce then you will also feel happy that things are happening in the company. So 3, 4 new projects are coming up. And I'm assuring you personally that we are doing very well with hard working, honesty, dedication [Foreign Language]

Wish you best of luck. Hope you deliver.

[Operator Instructions] The next question is from the line of [ Abhishek Sharma ] an individual investor.

So my question is, are there specific regions or customer segments where you foresee rapid revenue growth?

Not able to hear you.

Am I audible sir?

Yes, now.

So my question is, are there any specific region or customer segments where you foresee rapid revenue growth?

Yes, a couple of divisions we are entering new, which we would be [Technical Difficulty]

Sorry, sir, we couldn't hear you. Could you please repeat that?

Yes. So there are expansion plans into other divisions. So we are diversifying. So in the logistics [Technical Difficulty] that we are already diversifying into heavy segments now like steel and cement. And we are diversifying ourselves into some other sectors also, which we would be informing to exchange and investors.

Okay. Next question is, can you please elaborate in your details about expansion efforts in Nepal, Bangladesh and Bhutan?

Nepal, Bangladesh and Bhutan, we -- this is the existing supplies we are doing. So it's for our current customers. So we are supporting them for logistics solutions. That's the existing business going on since...

Okay. Sir, my last question is what is the revenue and profitability guidance for Q4 FY '25 and FY '26, considering macroeconomic factors and demand trends?

Yes. So Q4, as we promised that we would maintain -- yes, revenue targets, we are not able to meet this year, what we advised in the beginning of the year or before last fiscal year. But we are maintaining this 18%, 20% growth. And profit, whatever we promised that last year, we did operating profit of 2.8%, whereas this has been improved to 4% approximately YTD, which is happening. So we would be closing with that. So the profit will be -- PAT will be 4% to 5%.

The next question is from the line of [ Basant Reddy ] an individual investor.

[Technical Difficulty] with respect to the revenue projections apart from the government tender and stuff. So I do not have anything further. I think even the management also clarified and the previous investors asked the same question. So I'm good. You can please respond to the next question.

The next question is from the line of [ Sujeev Samant ] an individual investor.

I have 2 questions. First of all, last 2, 3 con call, we continuously say we focus cement and steel sector. So what is the trajectory, please? Could you please explain a little bit?

Sorry?

Cement and steel sector. You said last 2, 3 con call, you guys focus cement and steel sector, right?

Yes, yes.

Yes. Please tell me the future outlook, what is the target or any specific guidance you guys are saying about.

Yes. Actually, it is a heavy goods transport industry and huge amount of turnover is involved because in India, infrastructure is developing a lot. So the value of the transportation in cement and steel is around INR 1 lakh crores. So our targets are a little high. And already 4, 5 customers we have identified and work has already started. So it's a very good business. And the short route business, 300-kilometer radius, and we are putting associate vehicles and our vehicles and moving by train also. So we are having a good target for this business for next 2, 3 years.

Okay. But we benefit, like to dominate only FMCG, they give good margin. If you're talking about cement and steel sector, the margin is very low because I just...

No. May I just tell you -- I will explain, sir. Actually, the FMCG companies are giving the money [indiscernible] 90 to 100, 120 days, whereas these companies are giving us the money in 7 days. So margins are at [Technical Difficulty] whereas the margin is driven [Technical Difficulty]. But if you see the revolving of our investment, then it is a much better composition. So they are cash rich company like UltraTech, Dalmia Cement, these are cash rich companies. If we submit a bill today, they are getting the payment within 7 days. Whereas FMCG companies are having the pressure from their headquarter abroad, and they are increasing the payment terms day by day. So we feel that the same money, if we can rotate 4, 5x, then our profit will be same as FMCG.

Automatically, the EBITDA margin will be increased.

Yes. So we are focusing on EBITDA margin. And you must have seen the result and the growth is around 17%, 18% on EBITDA margin.

Great, sir. Sir, already we...

[Foreign Language] operating cost is a little less. So ultimately, the bottom line will also increase because [Technical Difficulty] operating cost is less. So that's why our -- we hope our bottom line will increase by developing this business.

So what do you think, sir, we invest like we purchase new vehicle or we just go through asset-light model?

Maximum, we are doing a light asset model. But in few routes and customers are asking for alternative fuel vehicle like electric vehicle and LNG gas vehicle. So those are not available in the market. So these vehicles we are buying and getting the contract from the customer for a long period of 8 years.

Then we can purchase our own balance sheet.

Yes, yes. If we get the long-term contract, we can purchase our own vehicle.

Good. Very good trajectory. Sir, please tell me 2-, 3-year perspective. Already we've done 9 months, right? So we have some projection. I'm not saying like a huge projection, we are saying like that. At least 2 to 3-year perspective, 2027 or '28. So how much we can grow at least 20% to 25% or more than that or less than that? Could you please tell me?

So our total growth target is around 20% to 30% only. And now we learned from the last 2, 3 quarters [Technical Difficulty] One is 10% growth we will take from our existing client.

I would say FMCG business.

FMCG business and road and 10% growth, we will take from the new business like FMCG customer or steel business, steam business, pharma business, [indiscernible] business or [Technical Difficulty] Because a lot of small companies are [Technical Difficulty]

Sir, your line is breaking. Your voice is breaking a little bit. Last statement, I can't hear you. You say we have previous customers. So easily, we can grow 10%. If we acquire new, new customer, we can grow 10%. So it would be 20%. Another 5%, 6%, you say something. I just can't hear you. Please repeat.

[Technical Difficulty]

Sanjay sir, can you come closer to the mic and speak, please?

[Foreign Language]

So overall, it would be 25% at least you can grow.

Minimum, other ways to survive ourselves [Foreign Language]

Great. That's why I just wanted to know like 2, 3 -- already this year is gone. So next 2, 3 year prospective, at least we can grow 25% to...

We will be more careful and [Foreign Language]

Yes, market is a little bit disappointed, sir, because last time you give some guidance but it's okay sir.

We will take care of -- because sometimes it's happened, but [Foreign Language]

No, no, I can understand, sir. The market is a little bit tepid right now. So it's okay.

The next question is from the line of [ Reva Chauhan ] an individual investor.

Sir my question is how has the recently secured Indian Railways contract impacted revenue and profitability?

Could you repeat please. I'm not able to hear.

Yes, I'm repeating again. Yes. How has the recently secured Indian Railways contract impacted revenue and profitability?

Yes, Indian Railways contract, we have around 6 route of INR 700 crores approximately, that is for the 6 years.

Sir my next question is -- can you share more details on capital expenditures and investment plan for the next few quarters?

Yes, we can explain ma'am.

We can give -- you can note down our number. So we can provide you separately of -- next 1 year, we are making the budget for March '26.

The next question is from the line of [ Ananya Swaminathan ] from P Square.

Yes, sir, I want to know how has the multimodal transportation segment performed in Q3 FY '25?

Yes, it is doing well. It is growing same around 15% to 20% and multimodal is a future of logistics industry.

Okay. So the revenue contribution is 15% to 20%.

Yes. Your question is we have grown 25% in the last quarter.

Okay. All right, sir. And could you provide an update on the adoption and operational impact of LNG on electric vehicle please?

Adoption of LNG is around -- we are buying around 100 vehicles in the next 1 year. And these are deploying for all major FMCG companies and cement companies. And their profitability, EBITDA margins are better than the diesel vehicle.

Okay, sir. And in line with the previous participant's question, I want to know what steps are you taking to improve efficiency and reduce cost in rail logistics?

So we are buying our own big size of truck to better utilization of our railway wagons and pickup of the material and delivery of the material, this will help us to improve the profitability in the train business.

The next question is from the line of [ Subhash V. ] from Value Investments.

I just have 2 feedback points and another one last question that I have. So the 2 feedback points is today, your call is not at all clear. So I mean, all the investors -- I'm able to hear all the investors' questions, but your responses are not clear. I think definitely, there is some problem with your mic or something. Just try to figure out what the problem is and try to fix it in the next quarter call. And also, can we please schedule these calls a little bit earlier because we got the results last week and almost after a week, we are having the call. I mean if you could -- if it is possible, just try to have it a bit earlier.

How many days early you want, sir?

Maybe, sir, 3 days, maybe right after 3 days after the result also could help us.

So in future, we will make it within 3 to 4 days after -- I was traveling, hence it is a little delayed.

Sure sir. No, problem.

We will ensure it will happen within 3 to 4 days.

Okay, sir. And my another feedback point is on the date of acquisition and the revenue guidance, right? I know that you -- I mean, the AVG Logistics have -- works very hard. And I see your growth from overall so many years, you have grown very well and you have worked hard, definitely, yes. But when you have these investor calls, when the analysts try to question you saying, can we get the acquisition news in another 2 weeks? Can we get it by December 2? Instead of just saying yes, right? So just try to give some buffer time and try to...

Yes, we learned a lot because this investor call, we are doing first time. So we feel that we tell the dates honestly because it's not any other reason to tell in advance. [Foreign Language]

We totally understand that you are not misguiding anybody from the investor community. But I say we are just -- the management is a little bit innocent when it comes to guiding on revenue numbers and the dates because what other companies do is they underpromise and overdeliver. So just as another investor said.

You will -- the first person -- the first [Foreign Language] he was telling the same thing. And I also really appreciate and apologize and because [Foreign Language] We learned a lesson that things should be talked only once the things are in hand. Otherwise, there is no use around [Technical Difficulty] without anything. So it is not required to do overpromising. So we learned a lesson and in future, you find that we are not overpromising and we think that [Foreign Language]

And the next year guidance of 20%, that is excluding the acquisition and the government tender, right? So just by organic growth, you're guiding 20% growth?

[Foreign Language] and we are doing very hard with marketing [Foreign Language]

Acquisition is fine but this 90% growth does not include that big government tender what you are waiting for right?

[Foreign Language]

Okay, when it is more than that. Okay, fine.

Yes.

And just try to fix your mic issue for the next investor call. My request.

Yes, yes. I will take some -- buy some new instrument that it will keep -- close to my mouth.

Ladies and gentlemen, that was the last question for today's conference call. I now hand the conference over to Mr. Jainam Savla for his closing comments.

Thank you. Thank you all for joining the conference call of AVG Logistics Limited. We appreciate your participation and reward questions raised during the session. We trust that management team has addressed your queries comprehensively. Should you need any further assistance or you want to reach to us, you can write us at [email protected]. Thank you once again, Mr. Sanjay sir, Mr. Himanshu sir and Steve for arranging this call. Thank you.

Thank you. On behalf of Kirin Advisors, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.