Capacit'e Infraprojects Limited (CAPACITE) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Capacit'e Infraprojects Limited Q4 FY '20 Post Results Conference Call hosted by AMBIT Capital. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Varun Ginodia from AMBIT Capital. Thank you, and over to you.

Thank you so much, Jay, and good afternoon, everyone. I hope everyone is keeping themselves safe in this unprecedented time. We are pleased to have with us today management from Capacit'e. We have from the management, Mr. Rohit Katyal, Executive Director and Chief Financial Officer; Mr. Alok Mehrotra, President, Corporate Finance; and Mr. Nishith Pujary, Head of Accounts. In terms of the format of the call, Mr. Rohit will take us through the presentation, and then we'll open the floor to question and answers. Sir, over to you now.

Yes. Thank you, and good afternoon, everyone. A very warm welcome to our Q4 FY '20 earnings conference call. I have along with me, Mr. Alok Mehrotra, President, Corporate Finance; Mr. Nishith Pujary, Head of Accounts; and our Investor Relations team. I hope everyone has had an opportunity to look at our results. The presentation and press release have been uploaded on the stock exchanges and our company's website. Before I take you all through the operational and financial performance, I would like to highlight a few points. The spread of COVID-19 pandemic poses a huge threat to lives, livelihoods and economies across the globe. In India, the government imposed a nationwide lockdown to prevent the spread of this pandemic. Adhering to the government directives, we suspended operations across sites and implemented work-from-home policy for our senior staff. Safety and well-being of our workmen, our employees has been our top priority. We ensured heightened safety protocols at all our project sites and made available essential services, medical facilities to the workmen. Like every other business, our operations were also impacted in the lockdown. The company lost more than 10 crucial days of operations in March '20 when a major chunk of our revenue bookings and cash collections happen. Further due to extension of lockdown in April and May, partial relaxation in June and labor migration issues faced by the industry, execution has resumed, but not in a very meaningful way. To overcome the COVID impact, we have devised a business revival plan, aiming to accelerate our execution phase in the forthcoming months and have increased efforts to ensure collections to enable us meet our commitments in a timely manner and have sufficient liquidity in place to resume execution. Currently, we have received approvals to resume work at all project sites, but like the entire industry, Capacit'e also faces labor shortage, thereby limiting our execution capability. Now allow me to give you an overview of our operational performance during the financial year '20. The total order book on stand-alone basis, including private and public sector as on 31st March '20, stood at INR 10,484 crores. Residential segment constitutes 27% of the order book, commercial and institutional segment 20% and mixed-use segment constitutes 53%. Our order book from public sector as of end of the year stood at INR 5,713 crores, constituting 54% of the total order book. Now coming to our stand-alone financial performance for Q4 and FY '20. Total income for FY '20 stood at INR 1,554.1 crores as compared to INR 1,823.5 crores in FY '19, witnessing a decline of 14.8%. As informed earlier, company lost 10 crucial days during March 2020. EBITDA for FY '20 was down 1.1% to INR 282.1 crores vis-à-vis INR 285.4 crores in FY '19. EBITDA margin for FY '20 was 18.2% vis-à-vis 15.6% in FY '19, thus expanding by 260 basis point due to operational efficiencies. PAT for FY '20 stood at INR 90.9 crores vis-à-vis INR 95.6 crores in FY '19, down by 4.9%. PAT margin for FY '20 stands at 5.8% versus 5.2% in FY '19, expanding by 60 basis points. Diluted EPS for FY '20 stands at INR 13.39 per equity share. Cash PAT for FY '20 was INR 189 crores compared to INR 198.4 crores during FY '19, down by 4.8%. Cash PAT margins for FY '20 stand at 12.2% versus 10.89% in FY '19, expanding by 130 basis points. Total collections during FY '20 stood at INR 1,698 crores. The net working capital days during FY '20 stood at 81 days vis-à-vis 70 days in FY '19, a mere increase of 11 days despite challenging environments. With this, I now leave the floor open for questions. Thank you.

[Operator Instructions] The first question is from the line of Mohit from IDFC Securities.

Sir, the -- my first question pertains to find out [Technical Difficulty] COVID situation and you believe that the execution...

Mohit, I can't hear you clearly, please. I can't hear you clearly, sorry.

Can you hear me now? Is it better now?

Little bit better, yes.

Yes, sir. Trying to find out whether this COVID situation -- we do understand that Q1 and Q2 will be very, very -- very adversely impacted. But when do you see the revenue becoming normal? Do Q2, Q3, somewhere September onwards seems to become normal if this COVID situation be considered? And are the labors coming back now? Is the reverse migration happening?

So number one, your first question answer lies in your question #2. So all the project sites are fully mobilized, get to start operations. And the reverse migration. So the migration which happened, generally every year, migration happens on 2 or 3 occasions, but it is not in the manner which has -- what you have seen this time. So the migration which happened before the festival of Holi, those people have started returning. You will see momentum picking up starting next week. And if there are no further surprises from COVID perspective, we believe that stability will return starting next week over -- in a phase-wise manner over the next 45, 50 days. So which means that quarter 2 will be a quarter where you will try to stabilize your operations once the labor returns in a phase-wise manner. And you will see meaningful uptake in quarter 3 and total stability in quarter 4. Let me add a disclaimer, this is subject to no further surprises on the virus front. Because let's face the fact that the last 1.5 months has been lost due to more of a fear factor than anything else.

And sir, have you heard from your private developer side? Are they asking about tenant side, delay side? Are they asking utility project? And are they having any conversation on that front with your counterparts? And also for the government side...

I can't understand -- I can't hear you properly.

Okay. I'll ask again, sir. If not, I'll go back.

Thank you.

Sir, my question is, sir, are you -- do you have any conversation from your -- from the government -- with the government as a counterparty of its private developers for the cost discussion or something to compensate delay in the execution? Are they going to compensate you in some extent?

So the pandemic has been declared as a force majeure by the disaster management. And they -- under an order from the Home Ministry. So therefore, if we are invoking force majeure, so have the clients and so have the supply chain. So the point is that there will be no direct laws as far as any claims or counterclaims are concerned, but it is too early in the day to say that whether any client will give you a cost compensation or reimbursement of costs that we have incurred during this lockdown period, number one. Number two, our conversation with all clients is on regular basis. And they are as eager as we are to start their projects because the quality of clients we hold, if their projects are stopped, even they are losing substantial money. Government, any which ways, the MCGM has already started in full swing. And since CIDCO also has opened now business, they have given and handed over all the project sites. So we do believe that it's a matter of return of labor or workmen at the site, and we will start. As far as compensation -- cost compensation, it would be premature on my part to make any comment on that at this moment in time.

The next question is from the line of Hardik Sodha from Crescita Investment Management.

Sir, my question is -- first question is how much labor do we currently have? And how many sites are currently operational and at what efficiency level?

So the total workmen, which we had prior to lockdown was totaled 10,221, which has come down to 1,000, about 20, 25 days ago. We are at the moment with close to 2,000. You need to understand that when we talk about labor, we have to see the number of trades. What you mean by trade is carpenter, foreman, fitter. You cannot work only with carpenter and you cannot work only with fitter. That mismatch, we believe in a phase-wise manner, as explained, will get sorted out starting next week over the next 45 days, okay? So the problem is someone may have 2,000, someone may have 1,000, someone may have 3,000, someone may have 20,000, but the trade mismatch is the biggest concern at the moment in time. And as I told you, should get eased out. Your second question was regarding?

How many sites are currently operational?

Okay. So we have about 5 sites currently operational, which will pick up. Of which, 2 have picked up complete momentum. And as I told, all the sites are manned with all resources, manpower, and we believe like we have added about 200 workmen in this particular week. From next week, another 2 projects will go operational. From execution perspective, I'm talking about. So as we speak, we have about 15 projects, which will constitute for nearly 85% of the top line for the next 2 years. And therefore, we are extremely hopeful that over the next 45 days, we will be able to man these projects. And this comes to some sort of say stability from quarter 3 and complete operational stability from quarter 4.

Sir, are we seeing any sort of pressure from our client side, whether on receivable side or on deferment of any of the projects?

So at the moment, no client has given any indication of deferment. Because the lockdown continues, and the point is, obviously, some clients may, I repeat, may rethink of the configuration of the apartments, which they would like to build. But at the moment, we have no indication from any clients that they would like to defer the project. On the contrary, they are supporting us in mobilizing the labor, which is the major concern.

Sir, and one -- last one on CIDCO, sir. How many, sir -- have we started to work on the CIDCO side?

So as I told you, all locations have been handed over, all CRZ and environmental approvals of all 7 locations are in place. 4 projects -- 4 sites were handed over before lockdown, which have been totally mobilized, and we expect to start that work over the next 7 to 8 days' time once the labor is at site.

The next question is from the line of Alok Deora from Yes Securities.

Just couple of questions from my side. So one is that we are facing issues on the labor part. So labor is not available, so we do the work slow. Have you faced any issues from the client side, well, because of issues at their end, they have asked us to go slow on certain projects? Or if they are facing any funding constraint, then they may ask us to go slow. Have you faced any issues in any of our projects?

Alok, as of now, as I just answered the earlier question, we only have interactions and the keenness from the clients to start the project as soon as possible. And our client on the top 5 are Godrej, Oberoi, Brookfield, Bishop Gate is now controlled by -- sorry, what is the name? Brookfield. We have Canadian Pension Funds reagreements. And all of these people are very keen to start. Had not for the labor migration issue, we would have started in May -- by 12th of May or thereabouts. So at the moment, answering your question, we have no indication from the client. However, also some of the clients may request redesigning, which I cannot be sure of. I mean, it's something -- COVID is unprecedented situation. And like we, you, everyone has lived in the times of uncertainty, so our clients living in a times of uncertainty. But given the quality of these clients, I don't foresee anything -- anything major, which will impact our guidance -- internal guidance for top lines once normalcy returns.

Okay. Okay. And this redesigning you're talking about for the projects in pipeline? Or it could be for the existing projects as well?

The projects in pipelining, redesigning doesn't -- question doesn't arise. I asked -- I answered a question of yours, whether the clients may defer a project. I said none of the clients have indicated, but maybe a particular client where we have no indication as of now would like to reconfigure the apartment size from 3-bedroom to 2-bedroom as per his or her wish, whether -- what would be the demand like once the COVID pandemic is behind us. So we do not have an indication, but that could be a possibility. However, in the same breath I have told you, such one-off incidents does not make any impact on our revenue ramp up.

Okay. Okay. Just one last question from my side. So as you mentioned previously or to one of the question that the situation -- though execution would ramp up gradually in the third quarter and then fourth quarter will see the normalcy return. So in that scenario, what kind of growth or rather the revenues could be impacted significantly in FY '21. Is that understanding correct?

I think that's -- that remains same for everyone. We will see how much we can catch up depending on the pandemic opening up. We have to remember that our companies -- major projects come in Mumbai, Pune, in the mature geographies and the metros. And the metros, unfortunately, though from economics perspective were very good prior to the COVID, in COVID has been impacted the most. And therefore, we would like to be conservative while getting the ramp-up status. As far as the revenue is concerned, we don't give any guidance. But yes, we have already said that there will be a material impact on the full year guidance, which people were expecting for FY 2021.

The next question is from the line of Parikshit Kandpal from HDFC Securities.

My questions pertains to the fixed cost per month, so we shall be incurring now. So what steps we have taken to basically optimize these costs? And what levels of liquidity we have to survive these first 6 months?

So from the first 3 -- 6 months, mostly, nearly 3 months are over. So obviously, like any civil company, we were the first to engage with our stock and see what reductions [Technical Difficulty] This will be on 2 fronts. One will be a lockdown period and subsequently will be the ramp-up period, okay? So that's one aspect. Secondly, we have suspended all rentals of equipments as far as possible across the country with effect from 23rd -- sorry, from 1st of April. And that basically will not come as a fixed cost hit. Apart from that, our all offices and labor camps and those certain government guidelines were there, which has been reversed by the courts, I do expect that the fixed cost would remain at approximately INR 13.5 crores to INR 14 crores approximately. I don't have the exact figure in front of me per month or during the lockdown period.

So this will continue even for this next 3 months as well because that 3 months...

No, no, no. So the cost for the next 3 months will be lower because projects have been completed, all right? So there will be a reduction in fixed cost over the next 3 months. At the same time, you will see revenue building up. So the point is that some of the fixed cost will get distributed over the operations or the revenue, which we built up. The first 3 months has been a total expenditure side only, okay? So as I told you, revenue -- if you look at the rental cost of the company were close to INR 4.5 crores per month pre-COVID period and obviously that would not accrue. So these are substantial cost savings and -- which will continue over the next 2 quarters also. And therefore, whether it is on the fixed cost pertaining to salary builds, to temp staffing, whether to rentals, you will see substantial reduction. While on the other hand, you will see a ramp-up in revenue. And therefore, I told you that we will be better placed to come to the pre-COVID positions on reduced cost and better projects in the very near future.

Okay. Next question, sir, what is -- you said that you already started 5 sites. So in terms of value of the orders -- you said that you've resumed work on the 5 sites out of the 15 sites, which contribute around 80% of your total order book, 5 sites you have resumed the work.

Yes.

So value-wise, how much these 5 sites will contribute to the overall order book, just to get a sense on where execution is going on and what kind of order book execution is going on?

More than the order book, we believe that the size, once they are fully ramped up, will contribute INR 75 crores in revenue, approximately.

INR 75 crores per month or per quarter?

Sorry, sir, per month.

Okay. INR 75 crores per month the price hike will come.

Per month. So, for example, once we start with Raymond next month -- next week, that will add another INR 4 crores revenue. The week thereafter, Phoenix will be totally ramped up, that would provide INR 8 crores to INR 9 crores per month revenue. And here on, whenever I say revenue, we will talk about per month. So we are only focusing on those sites which can add meaningful revenue and thereby absorb our fixed cost and therefore reducing their impact on the bottom line or the cash profit, okay? So that is the focus. And therefore, the ramp-up of labor also will be on these projects. Like Oberoi Skycity Mall, Piramal 3, MCGM, CIDCO. And apart from this Phoenix, Raheja and Brookfield Delhi. So these are the projects -- about 10 projects, which basically you also know will contribute about 80%, maybe 85% to 90% of revenue over the next 2 years for the company. So the focus is on that. So at the moment, the 5 projects will take us to INR 75 crores at the peak. And the remainder may take us by another INR 100 crores to INR 125 crores. So that is the focus that by December, we should be in a position -- or earlier in a position to have INR 200 crore-plus monthly revenue look ahead by ramping up the resources -- labor resources at the project sites.

Okay. And this big bump up of INR 100 crores to INR 123 crores which you said will come from the CIDCO projects?

It will come from the CIDCO project. It will come from BSNL. It will come from MCGM. MCGM asking rate will go to INR 16 crores, BSNL will go to INR 15 crores and CIDCO, obviously. Apart from this, we are asking -- serious asking rates for Phoenix. We are serious asking rates for Siemens. We are serious asking rates for Oberoi apart from the other clients we are working for. But as I told you, these 7, 8 projects are the mainstay and that's where the focus is. Because, obviously, you will appreciate that the management bandwidth, which is stretched on 8 projects to 10 projects, which is much lesser than what we were stretching earlier. And the negative visibility will also be very, very clear.

And this INR 75 crores does not include CIDCO, right? The CIDCO will be additional...

No, no, no. I just told you, CIDCO and the other projects which are under the ramp-up, slowly and gradually, we will reach to a revenue or run rate of INR 200 crores plus per month so that we can achieve -- we can start achieving that from January '21 onwards.

Okay. Sure, sir. And just on the liquidity side, if you can highlight, sir, in the interim for this tough period of like 3 to 4 months, start of new financial year, what kind of cash positions we have, funding levels we have, banking lines we have, if you can just touch upon that?

Okay. So as you're aware, our CIDCO lines are already tied up, and we have cash of close to INR 100 crores plus apart from fixed deposits towards margin available to ramp up. So it needs to be appreciated. Even during this pandemic, we have ensured that we kept the cash flow requirements of our main projects, whether CIDCO, MCGM, safe, secure in fixed deposit -- pre-fixed deposits, so that the projects can be ramped up immediately. Apart from that CIDCO, we have to still receive INR 225 crores of interest-free mobilization advance. And as soon as we start the work at the project site level, we will be eligible to -- for our first billing of designing charges. So CIDCO, which will be a major chunk of the revenue, is totally secured from short-term, mid-term and long-term funding perspective. Number 2 is MCGM. Liquidity position remains healthy. The client has been paying and is very keen on ramping up the project because it's a hospital infrastructure project. Number 3 is about Department of Telecommunication for which we are executing the data centers is also requesting now to prepone the execution period because nearly 4 months have been lost. And out of 13 locations, 12 locations have already started. And our billing also has started. I think we will be able to peak by August to nearly INR 15 crores to INR 17 crores in that project also. So from liquidity perspective, we have not raised any overall exposure. Banks have been supportive, especially the nationalized banks. And they have helped us in -- help us -- helped us by doing interchangeability of limits from LC to CC. So that has taken care, which means that the payments which will now come from clients will be used to ramp up the projects and not repayment of any liability of the past. So this is a very big positive that we have maintained our overall exposure. And while maintaining the overall exposure, we have ensured that the future payments from the clients forthcoming will be used on project-specific basis to ramp up the respective projects of those particular clients.

Okay. And just last question on the labor, sir. So as of now, you said that we were pre-COVID at 10,000-odd levels of labors. So now at the peak when we reach December, and especially in CIDCO. So total labor in CIDCO and total -- overall labor requirement will be how much by end of December '20? As a forecast I'm asking.

Please try to understand that nearly 200, 300 labor belong to sites which are virtually completed. So if you reduce that -- and you know very well that our Chennai project is on the verge of completion. So even if now, at the moment, current requirement is 500, but 60 days down the line, that requirement will not be there. So I -- it will be a guess. So you please do not hold me onto it. However, I do believe with CIDCO 4 to 5 locations, you should be at close to 13,000 to 14,000.

For the company level -- company-wide level?

Company level, company level. Excluding temp staffing, excluding technicians.

The next question is from the line of Samir Rachh from Nippon India Mutual Fund.

I have just 2 questions. One, of our current order book of INR 10,484 crore, what is execution time line we have? And secondly, while one can understand since you have very strong clients, the current projects may not be affected, but do you see their ability to or willingness to, like, put new projects will get hampered looking at the overall impact which COVID had, so your thoughts on that?

See that, first of all, yes, this situation will further lead to consolidation in the private sector. And the list of the clientele, which you see on our list will be the beneficiaries. Having said that, our focus at the moment and for the remainder of the year will be to take certain institutional projects which are currently under bidding. So bidding activity has resumed, and our focus will be on certain institutional projects. That doesn't mean that we are going away from private sector anywhere, but we would like to observe over the next 2 to 3 quarters, what their internal plans are. We do not know at the moment. We knew about their plans for new projects or new launches before the lockdown. But after the lockdown, it is as big as a guess for me as for you. So at the moment, we cannot discuss that. So from that perspective, I do believe that the next 2 quarters on the private sector side will be muted. But the government bidding activity will see serious push, and that if you discuss with any EPC contractor in the building segment will tell you. And since now we qualify for most bigger projects, we see a decent opportunity in that. And given the current situation, I believe it is a better idea to work for reputed government sector clients so that we have more visibility on our progress and revenue ramp-up over the next 2 to 2.5 years.

Okay. And sir, this current order book, what is the time line -- execution time line?

So the time line excluding COVID remains the same. We believe that it spreads over 3 years to 4 years, and that's -- that remains unchanged, excluding the COVID period of 6 months, which the government has approved extensions for.

Right. And sir, just 1 clarification since you already have a pretty strong order book. And last full financial year, your book orders of, say, INR 6,000 crores. So you are not under any pressure to add new orders in the current year?

Not at all. As I told you that we will look at the private sector client size, and we will only bid for certain institutional. When I say institutional means some hospitals, some convention centers, some integrated terminals as coming out by NHAI. That's a new sector which is open for us. So these will be the projects where the focus would be over the next 3 quarters. That's what I'm trying to say.

[Operator Instructions] The next question is from the line of [ Avinash Singh ] from Spark Capital.

Sir, my first question is on CIDCO project. Out of the 4 sites that were already handed over, what is the value, sir, of the total value from CIDCO?

Sir, all the projects have received approvals and except the Vashi Bus Terminal because of COVID which they couldn't hand over. Others have been handed over. So if you exclude INR 800 crores of Vashi, say INR 3,700 cores has been handed over. However, pre-COVID, the handover was of 4 locations, which approximately turns out to INR 1,600 crores. So as the labor returns over the next 2 weeks, we will be starting work on this INR 800 crore project site and over the next 60 days on the balance 2 locations.

Understand. Sir, next one is on the order intake. Sir, what is the status of this Vista project? Are we tracking that opportunity yet or any focus on that?

Which project?

Central Vista project that was announced?

Central Vista.

Central Vista. At the moment, we are not focused. Our order books are full. The time is now to look at projects in our domain expertise. So we are looking at certain institutional and the integrated terminal buildings, which are coming out for clients like NHAI. But beyond that, at the moment, we are not looking because the focus will be on ramp-up, cost reduction, and more importantly, the cash flows. Because please try to understand, we don't have any legal means. 1 year, everything is shut, for everyone, you, me [Technical Difficulty]

Hello?

[Operator Instructions] We have lost the line for the management. We're trying to reconnect. Sorry for the delay participants. We have line now reconnected for the management. Sir, you may continue, please.

Yes, please. I'm online.

Yes. Sir. See, from the working capital base, can you give us the number including retention unbilled revenue and work-in-progress and financial assets?

Please come again. You're talking about work-in-progress.

Sir, working capital situation with retention money, unbilled revenue and working capital and financial assets, the breakup.

Yes. So the retention money is close to INR 190 crores.

Okay.

Sorry, INR 160 crores. If you could just drop in a mail, I can send a bifurcation to you immediately.

The next question is from the line of Jiten Rushi from Axis Capital.

Sir, I just wanted to know, on the Kalpataru project...

Sorry to interrupt, Jiten. If you could just please speak a bit louder, your voice is sounding feeble.

Regarding Kalpataru project. So what is the status of the Kalpataru project? And any outstanding remaining on that project, particularly?

Sir, the whole industry has been locked down for the last 90 days literally. And therefore, it has been very difficult to get to the clients. And therefore, I would like to excuse myself from commenting on any 1 specific client at the moment in time. But if you can give us a call after, let's say, 7th July, we will be better placed to discuss client-specific questions. At this moment, when the entire industry has been closed, commenting on any 1 client's outstanding would not be appropriate.

Right, sir. Appreciate it, sir. Sir, and any -- can you just give us a breakup on the bank limits, fund limits and non-fund limits, and their utilization level, please?

So our total stand-alone, on stand-alone excluding CIDCO is INR 1,150 crore access limits, all right? And the unutilized portion in bank guarantee limits stand at approximately INR 100 crore plus, which gives us visibility to bid for future projects on stand-alone basis.

So basically, INR 1,150, crores excluding CIDCO. So CIDCO would be INR 600 crores?

CIDCO would be INR 600 crores. Excluding CIDCO is, assess limits by State Bank of India is INR 1,150 crores, which includes the bank guarantee limit -- LC limit of approximately INR 190 crores, includes CC of approximately INR 190 crores. And the remainder is bank guarantee with interchangeability between LC and CC.

Okay, sir.

And the interchangeability has been sanctioned in this quarter to take care of the situations arising out of COVID for the current financial year only.

Sir, any additional working capital loan we have taken in the -- in Q1 so far?

No, we have not taken any additional working capital loan, except the interchangeability, which I just mentioned.

Okay. So basically, any LC which change into fund limit, something like that, if I understand correctly, right?

So when you issue LCs, those creditors remain under the creditors. And more specifically in technical terms are known as creditors under LCs. So the creditor level will fall over the current and the next quarter, and there will be a temporary increase in the fund base limit. And this reduction will happen over the next 3 quarters, that is quarter 3, quarter 4 and quarter 1 of next financial year. And the ratings taking into account this interchangeability has been reaffirmed.

Got it. Just harping on one thing. You had said in the opening remarks to one question that you suspended some rental space -- office space. So did I heard that correctly?

Can you speak a bit louder, please?

Sir, you had discussed in the opening call that you had suspended some rental space. Am I correct, sir, in understanding?

No, no, what I said on rental space, I said, obviously, when everyone has invoked the force majeure clauses, the rental equipment, we have already written for suspension of those rentals, all right? Because rentals become fixed costs.

Right, sir.

Whether you work or you don't work, you have to pay in normal course of business. So if your revenue is 100, it's a particular percentage of rental to your top line. If your revenue is 50, obviously, as a percentage, it will double up. That is what a fixed cost is, like a salary, okay? So that is what I was trying to refer to.

So not -- you don't have to pay any penalty if you return this equipment before the time line of the...

With the force majeure clause, how can penalty be there. It's not -- no penalty is applicable under the force majeure and no penalty is applicable under the contract, which we have entered into.

[Operator Instructions] As there are no further questions, I now hand the conference over to the management for closing remarks. Over to you.

Thank you, everyone, for joining the call. We hope we have been able to answer your queries. For any further information, we request you to get in touch with SGA, our Investor Relations advisers. Thank you. Be safe, and let's get the economy on track. Thank you.