Dalmia Bharat Limited (DALBHARAT) Earnings Call Transcript & Summary

As a company, sustainability has remained core to Dalmia Bharat strategies, decisions and actions. And it is integrated across our operations, just like the Indian -- ancient Indian philosophy, where we have always lived in harmony with nature. We continue to pave way for a greener future by setting new benchmarks and going global with our climate action endeavors. Together with creating more sustainable products such as low-carbon cement. We are proactively influencing consumer choices in favor of green product services. It gives me immense pleasure that Dalmia Bharat has one of the lowest carbon footprints globally and is committed to becoming carbon negative by 2040. We have also made a bold commitment to become a 100% blended cement company over the next 4 years. In order to keep reducing our environmental footprint to electric vehicles by 2030, consume green fuel to almost 100% by 2035. Dalmia Bharat is the first cement company globally to become a triple joiner in RE100, EP100 and EV100.

India can be the business hub to achieve sustainable development Goal 7. At the Climate Action Summit last year, India together with Sweden launched the leadership group for industry transition. This partnership of key public and private sector stakeholders is committed to achieving net-zero emissions by mid-century in sectors that collectively account for 30% of global emissions. Companies such as Dalmia Cement and Mahendra are driving innovation. But we need many more to join them.

Our commitments are globally recognized. Business sustainability cannot be ignored. We believe that planet sustainability can be achieved only through business sustainability. Through our ESG roadmap, we are trying to create desired value for our stakeholders. A happy stakeholder means a license to operate. [Presentation]

On the social front. The community is one of our major stakeholders. Thus, we worked very closely with our neighboring communities to help them conserve and build their natural capital, and progress sustainably through that. We have now picked up a bamboo cultivation project for small and marginal farmers to help them improve their income on one hand and provide biofuel to the industry on the other. Consolidating our engagement with the communities, we are going strong on our journey to create 1 million sustainable livelihoods through our CSR program by 2030. [Presentation]

On the government side, we are reworking the policy and framework for robust governance practices and strict the compliances and have taken certain very critical decisions and very critical measures such as, we became the first cement company to lay down a formal capital allocation framework. We laid out a formal treasury policy in line with the best in class. We improved the communication transparency with all the stakeholders, including our investors. Risk management is an important aspect of our governance. Now we have put up a framework and policy to identify key business risks on -- and mitigation plan to avoid any business interruption. Our journey towards clean and green is moving at a fast pace. And as one of the greenest cement companies in the world, we believe we are making invaluable contribution towards building a sustainable future for all and ushering in a new era that is greener and more sustainable. I wish you all the best. [Foreign Language] [Presentation]

[Foreign Language] [Presentation]

[Technical Difficulty] Rajeevji, we can start off with the meeting.

Good morning, and welcome. I am Rajeev Kumar, Company Secretary and Compliance Officer, will be assisting the Chairman and company officials in conducting the 10th Annual General Meeting of Dalmia Bharat Limited. I extend my heartiest welcome to all the members, directors, auditors and other dignitaries present at the meeting. This AGM is being held through video conferencing in compliance with circulars issued by the Ministry of Corporate Affairs and Securities and Exchange Board of India. It is my pleasure and privilege to introduce the Honorable Chairman and other Board members present here. Shri Pradip Kumar Khaitan is an Independent Director and Chairman of the Board of Directors; Shri Virendra Singh Jain is an Independent Director and Chairman of the Audit Committee, Stakeholder Relationship Committee and Risk Management Committee of the company. Shri Gautam Dalmia is Managing Director of the company; Shri Puneet Yadu Dalmia is Managing Director and CEO of the company; Dr. N S Rajan is Non-Executive Director of the company; Smt. Sudha Pillai, Independent Director of the company and Chair Person of Nomination and Remuneration Committee has requested for leave of absence and has authorized Dr. N S Rajan, member of Nomination and Remuneration Committee to attend the meeting who is present in the meeting; Shri Yadu Hari Dalmia, Non-Executive Director, has also requested for leave of absence. I would also like to welcome Shri Paul Heinz Hugentobler and Shri Mahendra Singhi, Director on the Board of Dalmia Cement Bharat Limited subsidiary of the company. I also welcome Shri Neeraj Goel, partner of Walker Chandiok & Co. LLP, statutory auditors of the company, and Shri R. Venkatasubramanian, the Secretary, Auditor and Scrutinizer appointed for this AGM. Shri Paul Heinz Hugentobler and Smt. Anuradha Mookerjee seeking appointment as Independent Directors are also present in this AGM. Since the AGM is being conducted through video conferencing, I would like to draw your attention to certain relevant aspects of this meeting. Members attending the meeting through video conferencing will be counted as present for the purpose of quorum. All members who have joined -- have been placed on mute mode, to avoid any disturbance and to ensure an orderly conduct of this meeting. As indicated in the notice of AGM, only those members who have registered as speakers will be allowed to speak and raise questions. Members who are not previously registered themselves as speakers and still wish to ask questions, may send an email at [email protected], post conclusion of this Annual General Meeting, and they will be replied within a reasonable time through e-mail. All documents referred to in the notice along with the statutory registers, maintained by the company. As per companies act 2013 are available for electronic inspection. Members seeking to inspect such documents can send an e-mail at [email protected]. In case of any issue regarding VC facility or voting by electronic means kindly contact at the headline number provided in the notice of AGM. Shri R. Venkatasubramanian, Practicing Company Secretary, and scrutinizer for this AGM, will scrutinize the votes cast at the meeting and through remotely voting and will submit his report. The voting result on resolutions will be announced on the seat of consolidated report from him by uploading the same on the website of the company, RTA and stock exchanges. I wish to announce that presently requisite quorum for this meeting is present, I now request Chairman sir to take the Chair and continue with the further proceedings of the meeting.

Ladies and gentlemen, good morning. It's my pleasure to welcome you all to [indiscernible] on Dalmia Bharat Limited. There's the quorum is present, I now [indiscernible] my fellow directors [indiscernible] present at the AGM. I would like to now invite to Shri Puneet Dalmia to give an overview of the performance during the year.

Thank you, Mr. Chairman. Namaskar. On behalf of the Board of Directors, it is my pleasure to invite you all to the 10th AGM of Dalmia Bharat Limited. I want to begin with a Sanskrit quotation, which embodies our consciousness. "Yad Bhavam Tad Bhavati." It means you become what you believe in. This is true not just for Dalmia but also for the transformation which is going on in our country. Since the grueling pandemic period, followed by the heightened geopolitical tension, we were collectively determined to work harder and return to the earlier glory. As a company, we plan, strategize and executed our growth plans well and fully supported by the nation-building efforts of the government. In this period, the Indian economy has surged ahead at a pace of 7.2% in financial year '23 in a world struggling with low to no growth. Many of the trends are highly encouraging. Robust manufacturing sector with positive PMIs and the highest GST collections. A resilient construction sector that grew at 10.4% despite soaring interest rates and retail inflation. A resurgent rural economy with agricultural output registering a robust 5.5% growth and a revival in the services sector, driven by a double-digit growth in trade, tourism and transport. Our GDP has touched the USD 3.75 trillion mark in financial year '23, up from around USD 2 trillion in 2014, and we are well on our way to become a USD 5 trillion economy in the next few years, propelled by a strong infrastructure growth and a sharp focus on making India initiatives. Even for the financial year '24, the government has allocated a massive CapEx budget of over INR 10 lakh crores which is $125 billion to support infrastructure led growth in the country. This phenomenal journey is going to be certainly momentous for a few sectors like ours. It is estimated that this aggressive infrastructure push and housing sector in financial year '24 and '25 will further scale up cement demand, helping a recovery in profitability and building a healthy balance sheet for the sector. Other significant factors that would influence the sector include large expansion plans, increasing consolidation and a steady softening in power and fuel costs, which will lead to a sustained recovery in operating margins. The industry is undergoing rapid consolidation with the widening of the gap between larger and smaller players. The top 5 players who account for much of the capacity addition had already increased the capacity share from 41% in financial year '16 to 50% in financial year '23. We remain attentive and active about the industry-wide opportunities as well as the industry-wide plans to grow in this favorable environment. Having grown 3x in capacity, 5x in revenue and 3x in EBITDA over the past decade, thus making us India's fourth largest player. Our expansion plans will make us a pan-India pure-play cement company with a significant presence in [ major ] growth markets. We have set a manufacturing capacity target of 110 million to 130 million tonnes per annum by 2031, with an intermittent milestone of 75 million tonnes per annum by financial year '27. To this effect, we have already grown to 41.1 million tonnes per annum from 35.9 million tonnes per annum in financial year '22. We have also signed definitive agreements during the year for acquisition of the cement assets of Jaiprakash Associates Limited, which will give us access to the attractive market of Central India. Given this momentum and the massive support from all our stakeholders, I am proud to say that we are confident of achieving our stated capacity plans. Coming to our performance during the year. We have reported 16% Y-o-Y increase in sales volume to 25.7 million tonnes in financial year '23, with revenues increasing by 20% year-on-year to INR 13,540 crores and profit after tax rising 28% Y-o-Y to INR 1,079 crores. Our focus remains on proactive cost containment and innovations that would improve our margins in the years ahead. Amongst other notable achievements last year. Our human capital, ESG and nation building efforts were impressive to find a mention here. A plant-level initiative called [ Scale-up ] was designed to generate and implement innovative ideas and keep systems scalable on a continuous basis. I'm proud to say that we are the only cement company to be featured amongst the Top 50 innovative companies of 2022 by the CII Industrial Innovation Awards 2022. Another area of [ floral ]. Traditionally for Dalmia Bharat is the sustainability of operations. We have so far won more than 25 sustainability-related awards across functions, including the Climate Action Program 2.0 Award from CII and The DL Shah Quality Gold Award, the first company to win it, for promoting green blended cement. The fact that sustainabilities ingrained in Dalmia DNA since our inception, is an important statement. A main ramping up of our capacity at a CAGR of 15% plus, we have never given up the spirit of sustainability, embracing the concept of growth with responsibility. The company is on its way to achieving carbon-neutral status by 2040. We have already reduced our carbon footprint by 30% in the last 8 years. Having reduced our emissions to 463 kilograms of CO2 per tonne of cement, perhaps the lowest globally. Our goals are equally embedded in using renewable power at every possible step. Today, our renewable capacity has increased 10x to 166 megawatts from just 17 megawatts, 4 years ago, a significant step in our journey towards our RE100 target by 2030. People. Any organization is only as good as its committed people. And let me reiterate that we are blessed with such committed and talented individuals in abundance. Our growth to be a strong #4 in the cement sector is a tribute to their hard work. Whether it is ongoing acquisition of Jaypee Cement plants or taking care of the communities around our plants, our people have played a very positive and important role. They have graciously espoused the causes of inclusive growth as seen by local events like loan melas at [ Ariyalur, Danapuram and Kadapa ] in Andhra, where -- which was specifically designed to empower women, youth and farmers through [ SSGs, FPOs and JLGs ]. More than 1,000 people participated and loan applications worth INR 2.66 crores was sanctioned during the 2-day event. With the same fervency and spirit, we were able to organize the Jai Hind, Sound & Light Show at Red Fort in an all-new avatar, which was inaugurated by the Honorable Home Minister, Shri Amit Shahji, on 10th of January 2023. Recently, National Geographic has listed Jai Hind amongst the 5 best Sound & Light shows in the world. It is a testimony of our vision and execution capabilities, which can compete and make a mark globally. I encourage all of you to see this experience, and we would be delighted to host you with your families. As Gandhiji often reminded us, great relationships are based on 4 principles: respect, understanding, acceptance and appreciation. Let me conclude by expressing my deepest appreciation and gratitude to you, our esteemed shareholders, for your unwavering support and guidance. I also take this opportunity to thank all our well-wishers, associates, lenders, vendors, customers and all our talents who have been with us for several decades and have contributed greatly to the growth of Dalmia Bharat. I also thank all the Board members for their valuable guidance and support, as always. Thank you, Jai Hind, Namaskar.

Thank you, Puneet, for the very impressive performance report as well as the future plan. We wish you all success. I will now request Shri Dharmender Tuteja, Chief Financial Officer of the company, to give his presentation and financials of the company.

Thank you, Chairman sir. Respected Director of Dalmia Bharat Limited and Dalmia Cement Bharat Limited, my fellow colleagues and shareholders. I just give a brief recap of the last financial year. Yes, this is a brief recap of the financial results, of the last financial year. Our sales volume increased by about 16% to 25.7 million tonnes, this is against the backdrop of 9% growth in the overall cement industry. As we have stated in the past also that we'll be growing at least 1.5x, so this was demonstrated last year also. On the capacity utilization, there was an improvement of 1% compared to 68%. We increased our utilization to 69% in the previous financial year. Revenue increased by 20% because apart from 16% growth in the volume, the prices increase was close to about 4%, so the total turnover increase was about 20%. As you see that EBITDA was down by 5% to INR 2,316 crores. This was due to an unprecedented increase in the energy prices, which led to the cost increases. And of course, the full impact of these cost increases was not possible to be passed on to the customers. So the EBITDA drop is 5% in spite of the cost initiative efforts taken by us. And of course, it was an industry-wide phenomenon. On per tonne basis, the drop was even greater, 18%. And on the PAT and the EPS side, the growth is 29% because in the last financial year, one of our associate company, Dalmia Refractories Limited. They sold off their refractory business, which led to profit of what more than INR 500 crores. So the overall EPS is higher by 29%. Next, please. On the key financial ratios, as we saw in the EBITDA performance, EBITDA margins were lower against 21.5%, it was 17.1%. Consequently, the interest coverage ratio also reduced marginally to about 8.16 from 10.72. Our debt as per our financial policy, our all long-dated debt. So debt service -- servicing obligation is reducing. So the net service coverage ratio has improved to 2.96. Net debt-to-EBITDA continues to be very healthy, just about 0.29. Of course, it increased from the previous financial year because of the increase in the debt required for our expansions. Net debt-to-equity also is almost 0.1, close to 0. And return on capital employed is 5.9% because of the drop in the profitability on adjustment of the goodwill, this turns to 7.1% and the lower ROCE, which is reflected here and because of the cost increases, which were factored in during NDS regime and during the restructuring which led these to higher capital employed as well as lower profit because of the higher depreciation. Current ratio continues to be healthy at 1.45. Also to give you a CapEx update, where we stand. The previous financial year, we started the capacity in 35.9 million, we ended at about 38 million. And in the last 1 quarter, we have also commercialized the operations at Bokaro and Medinipur 0.6 million capacity. So today, we stand at 41.7 million. By year-end, this is expected to go to about 46.6 million with Sattur and Belgaum expected to commercialize in the coming quarter, quarter 2. And Ariyalur and Kadapa to be commercialized by last quarter of the year. And by end of the year, it should be about 46.6 million. This is besides the acquisition of Jaypee assets, which will be adding about 9.4 million which is subject to various external approvals of banks and their stakeholders. So the time line of that will get more clear and that should happen most likely in the coming quarter. Besides this we are also announced expansion in Northeast of 3.6 million capacity in clinker and 2.4 million cement, which will get commercialized in FY '26. Next, please. On the clinker side, we closed the year at 21.7 million compared to 18.9 million in the previous year-end, and by coming financial year, we should be increasing this capacity by 2 million to take it to 23.7 million. Next, please. And coming to the outlook, as I think mostly has been covered by Puneetji is his address. The demand growth in the industry is looking very good. And this being the election year, we expect that the cement demand should grow by 8% to 10%. And as we have done in the past also, we'll continue to beat the industry demand growth by at least 1.5x. Reduction in energy prices is the heartening for the sector. Recent prices drops have been very encouraging, which should start affecting our results in Q3 onwards. So margins -- operating margins in the current year will improve. And also [ sustained ] by Puneetji, the consolidation of industry is happening, and the larger players are growing faster than the smaller players and the profitability is much better than the smaller players. That trend has to continue. So all in all, we are well poised to capitalize on this extremely profitable and growth opportunity available in the sector, which we expect at least should cost for about next 1 year or so. Thank you very much.

Thank you, Mr. Tuteja for the [indiscernible]. I would now request the company's secretary Mr. Rajeev Kumar to take over the agenda meeting.

Thank you, sir. With your permission I place the following businesses mentioned in the notice of Annual General Meeting before the meeting. Ordinary business, item number #1. Adoption of the audited stand-alone and consolidated financial statements of the company for the financial year ended 31st March 2023 and the records of auditors and directors there on. There is no qualification, reservation or adverse remarks in the statutory auditor's report on standalone and consolidated financial statements. Further, the auditors have not reported any matter under Section 143 of the companies sir. I would like to further reprise that there is no qualification, reservation or adverse remarks in the Secretary audit report. With the permission of the Chair, the directors' report may please be taken as set.

Yes, please.

Thank you, sir. Item #2 is to confirm the payment of entering dividend of INR 4 per equity share already paid and declaring a dividend of INR 5 per equity share INR 2 each, that is 250%. For the financial year ended 31st March 2023. Item #3 is reappointment of the Yadu Hari Dalmia, who retires by rotation and being eligible, offers himself for reappointment. Special businesses are item #4, reappointment of Gautam Dalmia as Managing Director of the company for a period of 5 years by passing the special resolution set out in the notice. Item #5 is reappointment of Puneet Yadu Dalmia as Managing Director and CEO of the company for a period of 5 years by passing the special resolution set out in the notice. Item #6 is reappointment of Yadu Hari Dalmia as adviser in Dalmia Cement Bharat Limited, owned subsidiary of the company by passing the ordinary resolution set out in the notice. Item #7 is appointment of [indiscernible] as an independent Director of the company with effect from 1st July 2023 by passing the special resolution set out in the notice. Item #8 is appointment of Shrimati Anuradha Mookerjee as independent director of the company with effect from 1st July 2023 by passing the special resolutions set out in the notice. Item #9 is payment of remuneration commission to the nonexecutive directors by passing ordinary resolutions set out in the notice. Members may please note that voting on our businesses is open and those members who have not casted their votes may cast their votes until 15 minutes after conclusion of this AGM. Now with the permission of the chair, we will take up questions from the shareholders. [Operator Instructions].

Our first speaker of today is Mr. Rajesh Kewalram Chellaram from Mumbai, but unfortunately, he's not logged in at this point in time. We'll wait for him. Hence, moving on to the next speaker, Ms. Celestine Elizabeth Mascarenhas. We have not received any input from Ms. Celestine as of now. We will move on to our next speaker, Mr. [ Atul Gadodia ].

Is my voice audible?

Yes. mr. Atul, you are audible.

Like as Mr. Dalmia told in his opening speech, the company is very innovative, taking many steps, and I'm very happy to be a part of the company. And thanks to the music presentation of financials by Mr. [indiscernible]. Now as regards to Mr. Puneet Dalmia, I am quite close to have in-laws in Kolkata, the Poddar family, Mr. Arun Poddar and Mr. Saroj Poddar that. So whenever I'll be in Delhi, I request, Mr. Dalmia, to give me an appointment so that I can meet you. Now coming to the company, I have got just two questions or suggestions you might say. On a consolidated level, the debt of the company is very low. So why doesn't the company go for a buyback? And as the CFO also pointed out that net debt equity ratio is bit healthy, consuming the cement industry. And number two, like is it possible to split the shares from these 2 paid up, INR 1 paid up? These are 2 things I wanted to put up.

We'll move on to our next speaker. Mr. Kalyanaraman K from Trichy.

Respected Chairman, non-Directors and Directors, good morning to everyone. I am Kalyanaraman from Trichy. My query is that the company has recently came out with the plan to expand and enhance its capacity from 41.1 million tonnes to 56 million tonnes by FY '24, which includes activation of cement plants of JP of 9.4 million tonnes. Can you please highlight about such projects and stages of this capitalization? Thank you, sir.

Chairman, sir, we will just try to call out Ms. Celestine Elizabeth Mascarenhas once again. Ms. Celestine Elizabeth Mascarenhas, if I'm audible to you. Request to kindly unmute yourself.

Hello?

Yes, ma'am. You're audible.

Because there are simultaneously meetings now that is our problem now. And I'm so eager, very anxious to come into this meeting because it is very far away. Only we see I can attend. So I was so excited from -- yesterday, I'm thinking I must attend the Dalmia Bharat. So with this, I greet to you, respected Chairman, Mr. [ Jaret Patel ], other members of the Board, my fellow shareholders. I am Mrs. CE. Mascarenhas. I am speaking from Mumbai. First of all, I thank the company secretary and his team for sending me an e-annual report, I would prefer a physical one because I am 70-plus. So I find reading this small text really difficult. If you could do, it will be great of yours. Now revenues are up. Every performance is up and dividend of INR 1.40 per share is very good. Now I congratulate you for all the awards received during the year, keep it up. Now my query is, have we done ESG, anything on the ESG platform because we have to reduce the carbon footprint because by '50, it should be 0. So how much we are working on there? Whether you have gone for the rating of the rating of ESG? Rating on which agency. And if you are planning the rating is about platinum, then on which platform you are going to list? Or are we listed? So my next question is, we have 8 plants in Gujrat, which are equipped with modern technology and adhering to international standard of quality and safety.

Ms. Celestine Elizabeth Mascarenhas. My apologies for barging. But this is Dalmia Cement -- Dalmia Bharat Limited meeting. I think you are reading a question from some other meeting Ma'am. I understand there are a couple of meetings going...

This is Dalmia Bharat Cement, no?

Yes, Ma'am.

Are we in cement or not? We are in cement, no? Okay, fine. I don't know because on the online, so many companies, when we -- this thing can be -- I give my benefit of doubt. If I had the actual balance sheet, maybe I still know, I'm also confused. But I can speak general as Dalmia Bharat, I'm having this -- I can ask you some general questions. Of course, ESG is a very general question every year because the climate change and all. Okay, we -- how much margin we enjoy in our international business? What is the CapEx for the next 3 years for organic and inorganic growth? Are you seeing some acquisition for inorganic growth? Next is how much is spent on R&D? So -- and then I will not talk about subsidiary because I'm also not sure. With this, I support all the resolutions. I wish my company all the best, may it grow from strength to strength. And I will not ask for a physical meeting. I am very happy on this next -- when I get my AGM report, then I will know exactly. Sorry, if it is something else, I beg your pardon for it because this is what happens because we are 74 and all plus. So we find all going into -- this is our great -- not with the youngsters. But who participates is me because we are at home, we can express our views. We have been in the industry, I mean I was from Bank of India for 30 years. So lots of balance sheet I was analyzing so I can understand the annual report very well. But this sort of mistake now -- I'm sorry, Okay, I wish you all good health, and we should wish to participate properly in the next year. With this, thank you so much and may you all bless.

Thank you, Ms. Mascarenhas. Appreciate you taking out the time. Chairman, sir, with that, we come to the end of giving an opportunity to all the individuals who have registered as a speaker. I hand it back to the Board to continue with the rest of the session. Thank you, sir.

Thank you very much. So I'll give you a [indiscernible] to the end of the meeting. We have already indicated that those who wish to ask [indiscernible], they can e-mail the company's secretary. And I will now let [indiscernible].

Before we close the meeting quickly, if you can just answer a couple of the questions which have been raised by the shareholders. So on the question of Atul, that the company's debt is low and why don't we go for the buyback. So my submission will be that the company has articulated its vision to increase the capacity to about 110 million to 113 million by FY '21, and the intermediate milestone of about 75 million tonnes by FY '27. So actually, there will be large CapEx required, and that will get based and coming from the current financial itself, that is going up. But definitely, there will be opportunities as and when required, we'll also go for the buyback, sometimes in view of the dividend also if required. But as when opportunities are there, we'll do that. And we take the note of your suggestion of split of shares from INR 2 to INR 1 as when required, this may get also done. Then there was a query from Mr. Kalyanaraman regarding the stages of our capacity expansions. So as also I covered in my presentation that we -- today, we are at about 41.7 million tonne capacity. And by the end of the year, we'll be close to about 46 million. So this will include expansion of capacity of about 2.9 million, which will get done in Q2 at [indiscernible] and balance 4 million will get done by last quarter of this current year. And in between the acquisition of JP assets, we will also get done mostly in the coming quarter itself. That is about 9.4 million tonnes. And on the request of ma'am queries, definitely, we'll take note of that whichever shareholder gives a request a physical copy of the annual report, we'll circulate to them. By default, only the e-link of the annual report goes. And with respect to the CapEx in the current year, we should be incurring about INR 600 crore to INR 2,500 crores, including the CapEx for the JP assets. And of course, for the coming years, we'll make future announcements as and when this most to all happen. And on the ESG, of course, as Puneet also covered, we are one of the prime mover in the industry in terms of the lowest carbon footprint. We are at close to 3 kg compared to the global average of about more than 600 and even the Indian average also more than 500. So rest assured that your company is on the path to achieve zero or negative carbon emissions by 2040. The multiple initiatives are there, which have been well captured in our annual report. So for the brief set of time, maybe -- I'm not elaborating all those rate here. And on your question about R&D, there's an expansion of about INR 4 crores, which is also captured in the annual report. And in our expansions, there will be, of course, both organic as well as inorganic acquisitions. Thank you, and Jai Hind, sir.

And I can now thank all of you for attending the meeting today. And my sincere thanks to this detailed [indiscernible] and company officials for their support in making [indiscernible] successful. I wish all of you stay healthy in future. Thank you.

Thanks to all the members who are present. Thank you. Thank you very much.