Cyient DLM Limited (CYIENTDLM) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Cyient DLM Limited Q1 FY '27 Earnings Conference Call. [Operator Instructions]. Please note that this conference is being recorded. I now hand the conference over to Mr. Krishna Bodanapu, Non-Executive Chairman, Cyient DLM Limited. Thank you, and over to you, sir.

Thank you, Tarun. Good evening, ladies and gentlemen. I'm Krishna Bodanapu, Non-Executive Chairman of Cyient DLM Limited. I welcome you to our Q1 FY '27 earnings call -- joining me today are our Managing Director and CEO, Mr. Rajendra Velagapudi; and our CFO, Mr. R. Subramanian. Before we begin, I would like to remind you that certain statements made during this call may be forward-looking in nature and subject to risks and uncertainties. A detailed disclaimer is available in the Investor website section posted on our website. The Q1 FY '27 performance reinforces the message that I shared in our previous earnings call that the underlying strength of our business remains strong, and the investments we've made over the last few years are translating into tangible results. The quarter was marked by continued geopolitical uncertainties evolving demand patterns and disruptions across global supply chains, including the ongoing developments in the Middle East that added further complexity to the operating environment. Despite these challenges, Cyient DLM remained firmly focused on execution, customer commitment and long-term value creation. I'm particularly proud of how our teams responded with proactive planning, strategic inventory buildup of critical components, alternative sourcing initiatives and close collaboration with our customers and suppliers. These actions enabled us to maintain uninterrupted execution and consistently meet our delivery commitments, further strengthening customer trust and confidence in Cyient DLM. Our strong performance during this quarter is a testament to the resilience of our business model, the depth of our customer relationships and most importantly, the dedication and commitment of our people who committed to deliver exceptional excellence in a challenging global environment. One of the most encouraging aspects of our performance has been the continued momentum in order book. We closed the quarter with the highest ever order book in the company's history providing strong revenue visibility and reaffirming customer confidence in our capabilities. Order inflow remained extremely strong during the quarter, resulting in a robust book-to-bill ratio of 1.5x. This underscores the sustained strength of demand across our target markets and reflects the success of our continued investments in customer engagement, engineering excellence and operational capabilities. Equally encouraging is the return of growth across our key business sectors, aerospace, defense and industrial, all of which delivered healthy performance and continue to present attractive long-term opportunities. The increasing diversification of our revenue mix across these sectors enhances the resilience of our business and strengthen the foundation for sustainable growth. We have also made significant progress since strengthening our commercial organization. Leadership -- key leadership hiring has now been mostly completed including the addition of Rama Alapati as the Chief Strategy and Growth Officer. This enhances our go-to-market capabilities and positions us to deepen customer engagement, expand into new opportunities and accelerate on our ambitions for growth. While growth remains at 3 priority, profitable growth continues to be our primary objective. I am pleased that we now have sustained double-digit EBITDA margins for 4 consecutive quarters. This consistency reflects our focus on operational excellence, improving revenue quality, disciplined cost management and increasing value-added engagements with customers. Looking ahead, we remain excited about the opportunities emerging across our target markets, rising electronic content, supply chain diversification initiatives increasing investments across our focus sectors and the broader outsourcing trend continue to create a favorable demand environment. With our differentiated design-led manufacturing model, strong customer relationships and growing execution capabilities, we believe Cyient DLM is well positioned to capitalize on these opportunities. Most importantly, we have entered FY '27 with strong momentum. The first quarter delivered healthy performance across revenue growth, profitability and order intake, supported by a record order book, a strengthened leadership team and a robust business pipeline, we are confident in our ability to continue creating long-term value for our customers, employees and shareholders. I would like to thank our continued -- I would like to thank our customers for their continued trust, our employees for their unwavering commitment and our shareholders for your ongoing support and confidence in our vision. We remain optimistic about the opportunities before us. The foundations we have built, the capabilities we have strengthened and the momentum with which we ended FY '27 gives us confidence that Cyient DLM is well positioned for its next phase of profitable and sustainable growth. Before I hand over to Rajendra, on behalf of the Board, I want to thank him for beautifully turning around the business. to a situation where we can now be confident in sustained growth for the future. We have an order book, we have the people and we have the customers that will support this accelerated growth. With that, I will now like to hand over the call to Rajendra, who will take you through the business and the operational highlights in more detail.

Thank you, Krishna. So good evening, everyone, and thank you for joining us today. I will take you the next few minutes to walk you through the Q1 FY '27 business updates for Cyient DLM. I'll keep the discussion simple and clear and I will focus on 3 messages. First, the EMS market continues to offer a large and structurally attractive growth opportunity. Second, Cyient DLM has a clearly favored strategy across strengthen, expand and transform. And third, we are seeing tangible business highlights resulting in growth of the business. So with that framing, let me start with the industry outlook, then move to our strategic initiatives and finally cover the key business highlights before closing. If you look at the electronics manufacturing, the services market is in a genuinely attractive phase and importantly, the opportunity ahead of us is expanding rather than maturing. Today, the global EMS market sits at roughly $625 million to $650 billion. But the potential we are planning against is close to $1.1 trillion by 2033. So we are not building for the market as it exists. We are building for a market that nearly doubles for the coming decade. The blended CAGR across the market is around 6% plus and it is meaningfully higher in high reliability segments where we choose to play. That distinction matters for us. We are deliberately not changing commodity, high-volume, low-margin work. We are positioning where complexity, reliability and engineering content command a premium. Let me highlight the structural -- the trends driving this. First, the electronics content for product is rising across the board more compute, more sensing, more connectivity in virtually every device. The second driver is the growth in AI and infrastructure. is creating new demand for compute infrastructure, data center systems, power electronics, advanced hardware, networking and related supply chain ecosystems. While this market will evolve over time, it is clear that AI infrastructure will increase the need for sophisticated electronic manufacturing capabilities. We are, therefore, treating this as an important area to understand, evaluate and selectively participate in where we can build a differentiated right to win. The third -- the supply chains are rationalizing. The China plus one shift is redistributing manufacturing globally, and that footprint realignment plays directly to supply chain resilience, which our customers now treat as a strategic priority, not an after part. And the last one on the semiconductor side, the chiplets 2.5 and 3D packaging and high-bandwidth memory are all raising the complexity of back-end equipment, test and assembly, exactly the kind of high mix, high reliability work we were big for. Our core segments remain aerospace and defense, industrial, and our focus is also on the semiconductor capital equipment, medical and automotive, with a sharp focus on power electronics. But beyond the court, we see 2 clear new lanes opening, the lane 1 is robotics, which needs high reliability subsystems, control electronics and test assemblies. Lane 2 is infrastructure and data centers, where AI is generating electronics heavy, high complexity hardware that has been newly well suited to specialized EMS players like us. So the takeaway from this slide is the core business is attractive and durable and adjacencies give us room to grow into. So this naturally leads into how we intend to capture this our long-term strategic road map. As we mentioned in the past, we coined it as SET, Strengthen, Expand and Transform. The first phase strengthen is where we are today. This is the foundation we bank on. We operate across 4 industries, aerospace and defense, medical, industrial and automotive, which focus on -- this is our proven core stack, and it runs at margins of roughly 9% to 11%. This is the base reliable, established and the platform, everything else is built on. The second phase Expand our FY 27 to FY '29. The strategy here is elegantly simple, same stack with the 2 new sectors. We take the capabilities we have already proven and extend them into 2 new industries, robotics and AI data center, taking us from 4 industries to because we are leveraging the same core stack into higher-value sectors. Margins step up roughly to 11% to 13%. We are not reinventing our capabilities. We are pointing them at more attractive end markets. The third phase Transform is FY '30 and beyond. This is where we build a product and platform more. We stay across our 6 industries but layering expanded BTS products and new platforms. This is a shift from being a service provider to warning product and intellectual property, and that's what yields margins to roughly 13% to 18%. So the true line of this slide is a deliberate progression widen the industries we serve and steadily elevate the value we deliver, moving up the margin curve at East stage. Now let me bring this down to what we actually delivered this quarter because strategy only matters if it shows up in execution. So the headline is, I think as Krishna said, our order book. We recorded our highest ever order book at INR 2,598 crores. That is a strong signal of demand and confidence from our customers. Order intake for the period stood at INR 551.9 crores with a healthy book-to-bill ratio of 1.5. And importantly, that was driven by both existing customers, deepening their engagement and the new customers coming on board. On customer diversification, we added 2 new logos during the quarter across the industrial and automotive segments. That matters because it broadens our base and reduces concentration, which is exactly the direction our strategy calls for. On capability and capacity, we completed the expansion of our build to specifications to lap from 6,000 square feet to 15,000 square feet, more than doubling that footprint and giving us headroom for the product platform development that underpins the transform phase mentioned earlier as part of our strategy. And we are seeing continued momentum in our BTS product platforms with a strong order pipeline from our key customers. On quality and certifications, we completed the Nat cap audit for cable harness assembly for our Mysore unit. Nat Cap is a demanding aerospace grade certification, and it reinforces our credibility in the high reliability work that sits at the heart of our positioning. So taken together, to summarize altogether, the EMS market opportunity is large and expanding, and we are deliberately positioned in its high reliability, high value segments. We have a clear strategic strategy to widen our industry coverage and step up our margins over time. And this quarter results, record order book healthy book-to-bill new logos and expanded our lab capacity. This was a quarter of solid tangible progress against the road map I just described. So as you have seen, we have started the FY '27 with a strong momentum, driven by disciplined execution and healthy demand across our key segments. The strong order intake demonstrates our readiness for future growth. As we move forward, we will continue to expand our focus on new industry segments such as AI infrastructure, data center technologies, robotics, which require high reliability electronics manufacturing, and we'll continue to strengthen our position in build to specifications in highly complex and regulated industries such as aerospace and defense and health care. So thank you again for your time and for your continued confidence in Cyient DLM. With that, I will hand it over to RMS, our CFO.

Thank you, Rajendra for the business overview. Good evening, ladies and gentlemen. I'll now take you through the financial performance for Q1 of FY '27. We are pleased to report a strong start to the year with the DLM Group delivering its strongest first quarter performance to date. Revenue for the quarter stood at INR 3,738 million, reflecting a robust 34.3% year-on-year growth. This growth was supported by healthy order book, improved execution, execution momentum and continued demand across our business segments. On profitability, EBITDA increased to INR 392 million, registering a strong 6.2% year-on-year growth. Importantly, our EBITDA margin improved to 10.5% representing an expansion of 147 basis points year-on-year. This margin improvement reflects the benefits of operating leverage, better revenue mix and disciplined cost management. Profit after tax for the quarter was INR 163 million, which is more than double compared to the corresponding period last year with 118.2% year-on-year growth. Consequently, the PAT margin improved to 4.4%, expanding by 168 basis points year-on-year. The strong PAT performance was driven by revenue growth, margin expansion and a healthier business mix. Our order backlog also remained strong at INR 25,989 million, increasing by INR 1,832 million quarter-on-quarter. This represents the highest order book level achieved so far and provides a good visibility for revenue execution in coming quarters. Overall, Q1 FY '27 reflects a strong operating and financial performance backed by healthy order intake, first time revenue growth, margin expansion and a record order book. We believe this position us well for continued growth throughout the year. Moving to the KPI trends. We would like to share quarter-wise of our revenue, normalized EBITDA, normalized EBITDA margin and normalized PAT performance. Starting with revenue. We delivered INR 3,738 million in Q1 FY '21 compared to INR 2,784 million in Q1 FY '26, reflecting a strong year-on-year growth trajectory Revenue also remained ahead of the previous quarter with Q1 FY '27 continuing the growth momentum seen in Q4 FY '26. On normalized EBITDA, we reported INR 392 million in Q1 FY '27 compared to INR 251 million in Q1 FY '20, while EBITDA was lower sequentially compared to INR 431 million in Q4 FY '20. -- it remains significantly higher on a year-on-year basis, reflecting a strong operating performance. Our normalized EBITDA margin stood at 10.3% in Q1 FY '27, improving by 147 basis points year-on-year from 9% in Q1 FY '26. Importantly, we now have consistently delivered double-digit EBITDA margins for 4 consecutive quarters, which reflects the continued strength in our margin profile. On profitability, normalized PAT stood at in INR 163 million in Q1 FY '27 compared to INR 75 million in Q1 FY '26, meaning PAT has more than doubled year-on-year. This improvement is aligned with the strong revenue growth and improved margin performance during the quarter. Overall, Q1 FY '21 started on a strong note with healthy revenue growth, sustained double-digit EBITDA margins and a significant year-on-year improvement in fact. Let me now take you through the key operating and working capital metrics. Starting with our order book, we continue to see strong momentum in business intake. Our order book increased steadily from INR 21.3 billion in Q1 FY '26 to INR 26 billion in Q1 FY '27, rating the highest level in company's history. This provides strong visibility for future revenue growth and reinforces the confidence of our customers in Cyient DLM capabilities. On inventory, our days of inventory outstanding stood at 164 days in Q1 FY '27 compared to 153 days in Q4 FY '26. While inventory level increased sequentially, they remain significantly lower than the levels seen during the much of FY '26 and are aligned with our business growth and aggregation requirements. Base of payable outstanding reduced over last 3 quarters and stood at 63 days in Q1 FY '27. This reflects normalization of supplier payment cycles and continued strengthening of our supply relationships. Days of sales outstanding remained broadly stable at 77 days in Q1 FY '27 compared to 74 days in Q4 FY '26, demonstrating, continued discipline in collections despite higher business volumes. Customer advances stood at 15 days in Q1 FY '27 compared to 18 days in Q4 FY '26. While advances moderate during the quarter, they continue to support our working capital profile. As a result, net working capital base stood at 161 days in Q1 FY '27 compared to 145 days in Q4 FY '26. This increase was primarily driven by the movement in inventory and customer advances as we continue to support a growing order book and the future execution requirements. Overall, while working capital remained elevated during the quarter, the business continued to maintain a strong order backlog and a healthy growth trajectory, positioning us well for the future revenue conversion. Let me now take you through the revenue mix of Q1 FY '27 across the industry segments, product categories in [indiscernible]. From an industry perspective, aerospace and industrial continued to be the largest contributors to revenue. Aerospace accounted for 42% of Q1 FY '27 revenue, while our industrial contributed 32%. Together, these 2 segments from the majority of our business mix during the quarter. Aerospace and Industrial also delivered strong year-on-year growth of 40% and 90%, respectively. The different segment contributed 9% of revenue and recorded 33% year-on-year growth. MedTech accounted for 16% of revenue with growth remaining broadly flat year-on-year. Auto and others contributed the ban is 1% of the revenue mix. Moving to the product that are mix. BBA continued to demine the largest contributor accounting about 48% of Q1 FY '20 revenue. the PCA business maintained a high share and delivered 21% year-on-year growth. Boswell was the second largest product category, contributing 21% of revenue, but delivered strong year-on-year growth of Mechanical and others contributed 10%, while cables accounted for 1%. The other categories also improved B2S. From a geographical mix perspective, rest of the world continues to account for the major share of business 94%, while India contributed 6%. The higher world share was driven by all of our focus segments in aerospace, medical and defense and industrial customers outside India. Overall, the Q1 FY '17 revenue profile reflects healthy next across key industrial segments, continued strength in PCB and Brockton and a strong international revenue contribution, led by demand from aerospace medical industrial customers. Q1 was a strong quarter from both growth and a profitability standpoint. As I explained in key highlights on earlier, our revenue increased by 34.3% year-on-year to INR 3,738 million. EBITDA grew faster than revenue at 56.2%, reaching INR 392 million, while EBITDA margin improved by 147 basis points to 10.5%. Employee costs increased in line with the business expansion and capability building, while other expenses remained aligned with revenue growth. Material costs were higher due to the business mix and procurement related to [ BTS ]. Importantly, finance costs reduced by 29% year-on-year, owing to lower working capital borrowings. Profit, we saw tax more than doubled through INR 22nd PAT increased to INR 163 million, representing a growth of 18% year-on-year. PAT margin improved to 4.4%, up 168 basis points from the previous year. Overall, the quarter reflects a strong operating performance, improved efficiency and healthy growth, healthy earnings growth. Q1 FY '27 has been an excellent start to the year with a record first quarter performance across revenue, profitability and revenue grew 34%, EBITDA grew 56% and at more than 1 year-on-year. Our record INR 26 billion order book provides strong visibility and reinforces confidence in our growth outlook. We as a company remain focused on execution, margin improvement and converting the strong demand pipeline into sustainable shareholder value. Thank you, and we look forward for the questions.

[Operator Instructions]. Our first question comes from the line of Gaurav Shukla with Synvestors.

Congratulations on good set of numbers. But I want to understand the FS is a price -- and the last con call, you said that approval which you are not can do.

So we're not able to hear the speaker very well. Could you repeat the question.

Sir, I want to understand the effect of which the prices are going on and in last con call, you said that rate approvals in some business are not done. Are they happen or until now pending?

Stage effect of [indiscernible] and 2 is we last time said that from Israel, we still had some orders, et cetera, pending, and we are seeing delays. How is that it changing.

Okay. Gaurav this is Rajendra here. So on the West as credit, yes, I think still it is there going on. But -- as earlier, I think the Cristal pointed in terms of our planned execution and ensuring that we will be keeping some of the inventory for a long run. I think those are the things really help us to welcome the current challenges what we have in the West Asia basis. What we are seeing, even now today is there is -- there are some delays in the logistics in terms of shipments. And we are also seeing some of the costs going up due to these state crisis at this point of time. But as we are already well planned in terms of our execution. So we have not seen any of those challenges in Q1. And we also just put a plan together to ensure that those things won't impact much in Q2. And to other point about the earlier the Israeli things which we are seeing that we are seeing the momentum in terms of the order intake. That's what we had a good order intake we had from the deli customers. And we see the continued momentum in Q2 and beyond also going forward.

Our next question comes from the line of Vipraw Srivastava with Phillip Capital.

Great set of results. Just quickly on the new entry into the data center side, AI side, -- just want to tell deeper there, any discussion with the hyperscale, which is happening currently or at a very early stage and in coming quarters, you'll give us more information. Any thoughts on the AI data center entity for the company?

Yes. So I think we just started this at and we have our sales directors on board in this quarter. I think we'll be probably giving some updates in the next 1 or 2 quarters about where we are focusing and where are we today in terms of our momentum in the data centers.

Okay. That makes sense, sir. And sir, secondly, given the West Asia prices, which has been hampering our growth at least last year, -- does it have any problem now or it's fully resolved? What are your thoughts on that?

I mean, as I said just before to have question from Gaurav, I think just West Crisis is still there. has not gone. But the planning have done to ensure that we'll be getting some of the inventories holding that wherever we have some challenges for some of the materials. I think that planning has really helped us for the outcome. And similarly, I think in the Q2 also, we have planned that, so we don't see much of that at this point of time.

Right. And the last question from my end. The company is also entering into the semicon side where you mentioned that testing and assembly the last end is also in high demand because of the play. So any thoughts on that? What kind of product profile you're looking to enter on the semicon side? And what kind of time line can we expect in terms of finally that coming in the P&L?

So I think what -- I think we have already -- I think probably some time back, we just mentioned that we are working with the semiconductor capital equipment from other customers. we are continuing -- so we are seeing some of the robust growth plans in that area. So we'll be continuing working towards that and where we are building some of the products for the -- for our customers in the semiconductor capital equipment. Okay. So that's what basically I mentioned in my earlier one.

Just a follow-up, sir. Any thoughts on time line, I mean, when can it materially impact the P&L next year, next to next year on thoughts on that?

I think we will be seeing some of the growth coming in, in that area. So over the next 6 to 12 months, we'll be seeing more of the revenue growth, which probably in turn will also give us some leverage in terms of the markets.

Our next question comes from the line of Deepak Krishnan with Kotak Institutional Equities.

Sir, maybe I just wanted to delve a bit on similar question. So we have this expanded target wanted to just pick up brains in terms of how do you see the overall growth CAGR for the company in this time frame, 26% to 29%. And how much of the contribution would be from AI data centers or what takes in, say, '29 in terms of revenue? And where are we in terms of client approvals and how long after point approvals, do things come into numbers? Second, maybe in the transform phase, when you say margins would be 1% to 18% steady said, what are you looking at B2S to an overall contribution to revenue? And what would be the margin delta between, say, what we do today in B2S so that we can at least see how we price the gap to about 13% to 18%. And then I'll come up with a follow-up question.

I think in the expand phase. So when I said about the expand phase, I think some of the new things which you mentioned about the robotics and the data centers and infrastructure I think that is the area where we'll be focusing in FY '28 and 27 to 29, okay? So that will be taking some time for us to see the revenue coming in, but the order intake is where we'll be seeing it in this year itself. okay? So I think as you said, we already have the people on board. I think so we are driving that growth in those new areas. So that will really probably give us some leverage in terms of the margin expansion there, too. And coming back to your other thing on the transfer side. So you just mentioned that is one of the B2S, we already have our internal plans, both I mean, in terms of your experience stage, which you earlier asked the question about what percentage of the revenue will be coming from these industries and also these new segments. So we already have the plan of actions in that and what will be our CAGR growth going to for the next 2 years. And also for Fy '30 and beyond, the plan what we have for the B2S, the percentage of revenues coming from the PTL senior it at ENP.So based around that, that's where we have just arrived at the margin profit ratio, what we mentioned there yes.

Sure. Any range or a data center, the vote that you could give and by FY '20 and what percentage? And maybe just another question. Given you're a net exporter, what factors drove to an FX loss in this particular quarter, if you could set off highlight that as well? Maybe both these 2 questions, if you could get that.

I think as I said, we are not giving that guidance, how much of that growth will be coming from these new sectors, okay? As I said, that is an internal thing which we are -- which we have a plan of actions to take. So we'll probably -- once we have some new customers in the area, then definitely, we'll probably let you know in the next 2 to 3 quarters.

On ForEx, let me try and answer that. last quarter, the last month was rupee appreciated a bit. So as you know, our balance sheet is pretty exposed in terms of our business is on the export side today, large both on exports and imports. So the net impact is what you are seeing on the balance sheet with the sector the last 1 month where the impact has seen.

Sure, sir. Maybe just 1 follow-up. Also, order book, any sort of range that you want to end the year with in terms of book-to-bill ratio? So book-to-bill ratio will be at the same thing where we are today at 1.5x. So we will be at that number for the year.

[Operator Instructions]. Our next question comes from the line of Ashruvi Gupta with Trinetra Asset Managers.

Congratulations on the numbers. So I wanted to understand, we see that the medtech segment growth is quite flat. So I wanted to understand why is that? And also how do we see that progress for the rest of the year?

Yes. I think the the med tech is where we have some seasonal impact in terms of one of our customers right now, which is there. And in terms of the growth for the med tech, yes, I mean, we don't see any of the concern. We have the pipeline which is available right now in our sales pipeline. We already have some of the opportunities in that part sector. So we don't see a challenge anything in terms of the med tech there right now.

Sir, how much of the pipeline is coming from MedTech.

Medtech is the same what we have today in terms of our revenue mix, maybe around the 17% to 20% range is where we have today our sales cycle for the med tech.

Our next question is from the line of Bala Subramanian with Arihant Capital.

Pipeline, nearly INR 4,000 crores, what is the breakup in terms of vertical like carrospace difference, center sale and MedTech -- and that platform is legacy Alan and in 2.

I mean if you're looking at the distribution of the order book or order intake you were asking on the order book you are looking at?

Sir order pipeline, sir?

So order pipeline.

We have nearly INR 4,000 crores.

Order pipeline no, INR 4000 is

No, it is more than that.

We don't -- as mentioned on order billion. That is the order intake.

So -- where are you getting the number of order for

No, sir, that's a future pipeline is around $0.5 billion let's say, any were INR 4,000 crore to INR 5,000 crore range.

No, I think we have more than that out of pipeline, okay? So the number, I don't know if we did you get that one, but we have a substantially higher pipeline -- their pipeline at this point of time, yes. very, very healthily. Yes. And we report order book and order intake and order pipeline is obviously much. That's something which we don't report on disposer. -- actually, I'm trying to understand if we have a new growth vectors like AI and data centers and robotic side.

So I'm trying to understand that point of time. You could explain in terms of platform side, whether like the legacy businesses like aerospace, defense and industrial and medtech and how that lane on linked to. So how the things are moving up in terms of our pipeline.

Yes. I think -- see, if you look at the various segments, what you have aerospace defense, close to around 48% will be there in aerospace and defense. -- in terms of the pipelines, what we have. And close to 40%, roughly less than 40 roughly on the industrial equipment side, capital equipment side. And the balance is predominantly coming from medical and yes, is basically coming from the medical industry and automotive is a small one there.

Our next question is from the line of Praveen Sahay with PL Capital.

Many congratulations for a good set of numbers. My first question is related to the ROW sales because they are 40% of the growth on the Y-o-Y side, we are seeing but there would be some element of a rupee depreciation as well. So in the same currency terms, how was the growth there?

We -- in terms of reporting normally, we do the reporting in INR -- in terms of Dollar growth rate. Okay. We can give the numbers separate in terms of we can get back to you on it. Yes.

Okay. Second question, sir, is related to the -- as you had a report, the negative -- your operating cash flow is still negative. So what's the prime rate reason? And when do you expect the working capital to normalize?

Yes. As I explained to you earlier, the negative free cash flow is essentially coming up from higher inventory and lesser customer advances. And we have talked about it earlier as a company, we're growing, and we need to keep making sure that the growth is well set in terms of inventory because Inventory is something what we need to do as a leading indicator. We have to stock enough to make sure during this difficult time, our revenue is not impacted in any way. And we're happy to say that, that's something which we've been able to achieve as you can in the results, okay? So as long as we have this growth, these investments which we need to do it. But once we have the growth and the inventory coming under control, which we are working on, the cash flow will turn positive, and that's what we are all working towards.