Dilip Buildcon Limited (DBL) Earnings Call Transcript & Summary

Thank you, Margaret. Good evening. On behalf of Axis Capital Limited, I welcome everyone to the Dilip Buildcon Limited Q4 FY '22 Earnings Conference Call. From the management side, we have with us Mr. Devendra Jain, Executive Director and CEO; Mr. Rohan Suryavanshi, Strategy and Planning -- Head, Strategy and Planning; and Mr. Radhey Shyam Garg, Chief Financial Officer. We also have Investor Relations team of Accenture in the call. To begin with, we will have opening remarks from the management followed by Q&A. Thank you, and over to you, sir.

Thank you, Jiten ji. Good evening to all. It's great to have all of you with us today. I sincerely hope that all of you are safe and in good health. So let me first begin by welcoming all our investors and our partners to this conference call for the quarter ending 31st March 2022. It is a great honor and pleasure for me to be able to hold this call and to inform our partners of all the legal developments in this quarter and our plans moving forward. Let me also apologize right now for the delay right now in the results that you guys had a very small time to look at it. But the presentation and the results have been uploaded, and I hope you guys will also refer it when you ask any questions. Let me now start with firstly, an economy update. The world, as you know, has faced major challenges this year due to geopolitical tensions between Russia and Ukraine and the continuation of COVID in various countries. So the combined effect of war and pandemic has exacerbated a rise in crude oil prices, which in turn has fueled inflation. As a consequence, businesses, trade, manufacturing, infrastructure and employment opportunities have all been severely impacted. Obviously, to try and fight the situation, the Indian government has taken various measures. The biggest concern, obviously, the [ item ] for everyone is to contain the rising inflation, which is affecting both individuals and businesses. A 7.8% increase in retail inflation and a 15% increase in wholesale prices in April reflect the rising input costs. Key raw materials are in short supply and the supply lines themselves are stressed, adding to inflationary pressures. As a remedial measure, the government has announced excise cuts to soften the blow. Not only the national government, but even the various state governments have also allowed reductions in taxes. Also, the government has tried to basically keep a check on this inflationary pressure by reducing custom duty on key raw materials while increasing duty on exports of certain other items. And in tandem with the government, the RBI also announced a hike in interest rates. RBI also hiked the cash reserve ratio 50 basis points. And as per the [indiscernible], more rate hikes are highly likely considering the current scenario. The markets are expecting a rate hike between 35, 50 bps in the upcoming RBI MPC as per a recent Reuters' post. So all in all, although the government is taking various measures on all fronts to cull the persistent inflation, continued efforts are needed in order to break through. In the short term, the scenario remains challenging on the back of tepid growth, rising inflation, supply disruptions from geopolitical spillovers and financial market volatility. Now moving on to the infrastructure sector update. An influx of new projects were awarded at the end of FY '22, continuing the general trend of the past years. As a result, your company received substantial in close of orders, majority of which is accounted for by the road sector. In total, in the road sector, project awarding grew by 22% to 12,731 kilometers in FY '21, '22. The lens of road projects awarded by the NHAI and the Ministry of Road Transport and Highways increased by more than double to 5,113 kilometers in March '22. This was almost expanded as much as the previous month. So although project awarding has improved over the previous fiscal year, project implementation has slowed down due to the COVID pandemic, raw material constraints, labor shortage, financial challenges and delayed government payments. Unseasonal rates in multiple geographies, coupled with [ hike loans ] during peak working season, also resulted in marked slowdown in the construction activities. It was also impacted by COVID second wave across India, average daily construction for further [indiscernible] average daily construction. Therefore, the earlier delay couldn't get compensated and this resulted in a productivity downturn. Highway construction fell by 1/5 year-on-year at 29 kilometers per day. This was significantly lower than the goal of 40 kilometers per day set at the beginning of fiscal year, which obviously was revised in November, December to 33 kilometers a day. But this final figures have come lower than even the revised expectations of the government. The NHAI was unable to reach the required 12,000 kilometers envisaged last year due to pandemic-related delays and exceptionally prolonged wet season, although it awarded a record number of highways to be constructed, like I earlier explained. But all in all, the government has put a lot of emphasis in infrastructure spending since it is -- it has a multiplier effect on the economy. In the budget as well, the government announced a 35% increase in the capital expenditure, which took the total outlay to INR 7.5 trillion for FY '23 compared to the INR 5.5 trillion in FY '22. There have been further steps that the government has taken. They have improved and simplified the new hybrid annuity model. There also been growth in agricultural loans and infrastructure loans. And there has also been gradual improvement in bad loans, which reflects a progressive recovery of the sector and enhances future profit. Now updates about the company. I'm very pleased to announce that we have completed 12 projects in FY '22 worth INR 81,599 million. These projects were completed across different geographies. I'm also very happy to announce that we have won 5 new projects in 3 sectors worth INR 78,110 million. These are projects that are won until March '22. Besides this, we have won 2 more HAM projects worth INR 29,310 million after March '22, which has not been included in the order book as of March '22. So the order book standing as of March '22 is INR 255,945 million, and this comprises 45% from the road sector and 55% from other sectors. Now moving from business to financial performance. Revenue for quarter 4 '22 was INR 25,062 million, which is lower than last year's performance. EBITDA for quarter 4 '22 was INR 2,368 million. The depressed EBITDA margin has been on account of the reasons that we have explained earlier as well. The older projects that we had, we were executing from 2018 onwards, have all got an extended -- the time for it has -- extended has been 50%. And hence, the additional cost of manpower, equipment have all gone up by 50%, and these additional fixed overheads have taken into our EBITDA margin. Besides this, there has been an increase in material prices like cement, bitumen, diesel, steel and aggregates all by almost 50% on average. Hence, these numbers that we mentioned earlier as well. Moving on, the finance cost has decreased by 4.99% in quarter 4 FY '22 on a Y-o-Y basis. However, profit after tax has decreased in quarter 4 FY '22 on account of decrease in EBITDA. Now let me take you through some important items of the balance sheet. Expenditure on fixed assets is INR 120 million in quarter 4 '22. And in total, it was INR 1,450 million in the full year '22. Inventory has increased marginally in the quarter 4 by INR 346 million from the previous quarter. Debtors have decreased to INR 10,380 million in quarter 4 '22 from INR 15,041 million in the quarter 3 '22. This is on account of better collection. Decrease in loans given is mainly on account of repayment of loans given to SPVs created for HAM projects. Net debt/equity ratio decreased to 0.63 in quarter 4 FY '22 vis-à-vis 0.73 in quarter 3 FY '22. And in absolute terms, it has decreased by INR 4,068 million, happy to report that. Similarly, also happy to report that working capital days have decreased to 89 days as of quarter 4 '22 vis-à-vis 102 days as of quarter 3 '22. So these are the main points. I open the floor for question and answers. Please feel free to see our presentation and ask any questions you might have.

[Operator Instructions] The first question is from the line of Shravan Shah from Dolat Capital.

A couple of questions first. So now how much -- so first, coming to the guidance. So what's our guidance on top line margin, particularly because previously, we were saying that now once the things get normalized, we will have a 13%, 14% EBITDA margin. So for the full year FY '23, what's the revenue guidance margin? How much total order inflow that are we looking at?

Thank you for your question, Shravan. The total revenue guidance that we think we should be doing somewhere in the record of about INR 10,000 crores for this financial year. And the revenue and the EBITDA guidance remains around that range only 13% to 14% that we had indicated last time as well. These are obviously subject to what kind of sort of raw material prices and other things we might foresee, but this is what we're then guiding. Obviously, the quarter 1 and quarter 2 will be tepid because we still are completing our older projects, but we should start seeing improvement as we go forward from there.

Okay. And the last was on the order inflow. So first, a clarification, what is the value, excluding GST for FY '22? So 7,811 is including GST and the 2 HAM, INR 29,310 crores, that is also including GST. So what's the value excluding GST?

So sir, firstly, order inflow guidance, even last year, we had mentioned about INR 8,000 crores to INR 10,000 crores of new orders. Even for this period, we will have a similar kind of order inflow guidance. And as for the minus the GST value, yes, so order value was INR 7,800 crores; excluding GST, around INR 6,500 crores. And as far as this INR 2,800 crores value, it is considered that is the BPCE, so BPCE, excluding GST will be around INR 2,000 crores.

Okay, INR 2,000-odd crores. Okay. So now coming to the 2 important questions. So first, in terms of the debt reduction, that's the good thing that has happened. So in terms of -- so debtors actually has reduced significantly. So last time, if I look at in December, last December '20, to March '21, there also, we have seen a INR 400 crores kind of a debtor reduction and then, again, it has bounced back. So the kind of debtors days now we have, that is the 42 days. So will it also start inching up again in the June, September, December quarter? And in terms of the debtor, how do we see? So there also, I need a clarification that our infra holding, how much we have raised there? So because that is also kind of a debtor standalone. So if you can help me and what was the number there? And how do we see the debt by end of FY '23?

So Shravan, the first thing you asked about the debtor. Okay. So debtor generally keep in moving from 40 to 50 days, and there is no control on the 3, 4, 5 days delay. So that is where we are making the balance sheet it is on there. So sometimes it happens that the debtors are realized after 4, 5 days, but it will be moving in the range of 40 to 50 days. This is what we generally we have given earlier also and right now also the same thing. As far as the debt reduction indeed, with infra, [indiscernible] the debt remains the same, which was there in the last quarter. December, there is no further debt raising in the DBL infra. And as far as debt reduction in the [indiscernible] is concerned for this financial year, it will be in the range of INR 300 crores to INR 400 crores.

So INR 300 crores to INR 400 crores from this current INR 3,072 crores, we are looking at?

Yes. Yes. Yes, of course, yes.

Okay. And if you can repeat the value for DBL Infra, what was the debt that we have ranged? So what's the number as on March?

INR 702 crores.

INR 702 crores? Okay. Okay. And in terms of the -- because we got the presentation late, so pardon me if I'm repeating any of the questions which is already there in the presentation. So I was not able to go through in detail. We have already mentioned in terms of the equity investment, projection is already there. That's it from my side for the time being.

[Operator Instructions] The next question is from the line of [ Nirmalia Sahar ] from E4 Equity.

I have 2 specific questions. If you remember, last year September quarter, due to an accident in 1 of your road projects, NHAI had suspended awarding any new projects to the company. So I would like to have an update on that where do we stand? And question number two is that last year, during the December time frame, there were some bribery charges against some key personnel and there were some raids happened on the premises. So where do you stand on that? These are the 2 specific questions.

Thank you for your question, sir. As per the unfortunate accident that occurred on 1 of our sites, Anandapuram, Anakapalli, whatever action had been taken by the government, we were eligible to bid. And from October onwards, we've been winning -- and we've been bidding and winning projects. Also happy to know that we've also completed that project now. So the PCOD has also been awarded in that project. So that is for that. So that project also has a project completion certified from the agency. And the second part you asked about the agency actions and the unfortunate charges that were alleged against the company. We continue to [ indiscernible] those charges, and the matter is now sub judice. So as for whenever there are any applications on that, we will update the market accordingly.

[ Mr. Sahar ], we cannot hear you. Sorry, [ Mr. Sahar ].

Can you hear me now?

Yes. Now we can hear you. We lost your audio there, sir. So if you can repeat your question.

Okay. So I was just trying to get a confirmation that there is no problem in getting a new project from National Highway right now? I mean the suspicion is revoked, right, for the company?

Yes, there is no problem. I repeat again, there is no problem getting. And we have won significant orders from the National Highway Authority of India, which is there mentioned in our presentation as well. These are all projects won after that incident.

[Operator Instructions] Next question is from the line of Alok Deora from Motilal Oswal.

Just a couple of questions. So sir, one was on how is the competitive intensity now in the road projects? And also, if you could just reiterate the order inflow guidance for FY '23?

So, obviously, as you're all aware, the competitive intensity in the industry had increased tremendously over the course of this year, primarily due to certain COVID-related benefits that the government had given where they reduced the guarantees asked by developers and also the qualification criteria, the previous security. So obviously, all those caused a lot of pain in between and in the sector, even retail on its part. We had bid for almost 105-plus projects, while we won only 5 or 6 projects. So you can imagine the kind of competitive intensity that the market has. The good thing is now the government has understood that around -- the way that they had gone down was not right. And they have brought back the previous securities and all. So in the recent HAM project, if you ask me specifically, there has been reduced competition. Now we are seeing 6 to 8 players, which had gone up to almost 15 to 18 players in between. So now we're seeing that curtain coming. The EPC projects still continue to have more competitive intensity. But given the high order book that a lot of the smaller players also have, we expect this to remain all right and not as high as it was last year. So that was good. And in terms of order guidance, sir, I mentioned that INR 8,000 crores to INR 10,000 crores of new orders we will be targeting at least.

Sure. And sir, we have won a lot of these projects in Q4 and even in FY -- post Q4. So we have all seen the delays in receiving appointed date in projects. So based on these orders, what's the revenue guidance we have for FY '23? And how confident are we of receiving the appointed date in time for the pending projects?

Sir, the revenue guidance, like I mentioned earlier, is around -- we are targeting around INR 10,000 crores. Now obviously, this is subject to caveats around, hopefully, we will not see any more COVID sort of related lockdowns or any other such disruptions happening or any other large disruptions. In terms of those projects getting started on time, the expectation that we as a builder always have, that the projects will start on time because we start deploying our resources, our people, our equipment on the site on time. However, there is no control over what the government is finally able to hand over the amount of land that it needs to do and all the other sort of things that today [indiscernible] it means to fulfill. So while we remain positive and we try to do all our work, we actually have 0 control over how it will pan out. So whatever we tell you today, the guidance is based on our expectation of how things should pan out. So that's basically what I can sort of say to you. Here and there, if there are certain delays, monsoon goes longer and there are other delays, obviously, we'll have to account for it as the year progresses. Right now, as sitting today, since I can't change in the future, I can just give you these sort of analyses and scenarios that we have.

The next question is from the line of Prem Khurana from Anand Rathi Shares.

So my question was with respect to our cash flows. I think in your opening remark or answer to some of -- I mean, the earlier participant is made to the detail, I mean you're looking at another INR 300 crores to INR 400-odd crores of reduction in net debt in FY '23. So when I look at this number and also when I consider that we have an equity requirement of almost from INR 850-odd crores, so I think the business would need almost around INR 1,100 crores, INR 1,200-odd crores, right? I mean this is -- assuming we won't get to see any change in your working capital requirements, I mean, it will stay the same. So if you could let us know how do we intend to kind of meet this INR 1,200-odd crores of requirement that would be there in FY '23? And if you could also help us understand where are we in terms of our asset monetization effort especially on the [indiscernible] side, the [indiscernible].

So Prem, I mean, answering to your question, around INR 600 crores to INR 700 crores will be the -- this our cash profit for the coming financial year FY '23. And then there will be inflow from the Cube also in the -- around INR 150 crores, and there will be the inflow from the remaining debtors prepayment by the Shrem which is around INR 150 crores. So in terms of how it is, it is in the range of INR 150 crores to INR 170 crores. So put together this and then there is equity requirement of around INR 750 crores, if you reduce this, this is [indiscernible] and then we have -- we will be having the units of the InvIT, so we have that InvIT units, so we can...

We have an option to raise funds against the InvIT units basically. So we can either sell the units or we can raise funds, which will be still under a self-funded structure. So these are the options available with the company. And InvIT, like we'll be starting -- we'll start receiving the units of the InvIT maybe from the June or early July. So with the completed assets, also the 10 assets which we are transferring to Shrem InvIT, out of that 10 assets, 5 assets are already completed and we are in the process of receiving the LOCs from the respective lenders. And post that, we'll be approaching to NHAI for the LOC for transfer of the assets to the InvIT and allotment of the units against the same.

And how much money's already from payment during the quarter? I think we've received some amount, right?

Yes. Yes, INR 450 crores we have already received.

Okay. So reduction that we've seen during the quarter, I mean, this money would have had a role to play in the INR 300 crores, INR 400-odd crores debtor reduction that we've seen in terms of debt in this quarter, right?

Yes. Yes.

[Operator Instructions] The next question is from the line of Shravan Shah from Dolat Capital.

Sir, CapEx for this year, how much are we looking at?

Yes. Capital expenditure you're asking guidance for the [indiscernible]?

Yes.

It will be -- there will not be any CapEx, but the normal CapEx of INR 10 crores, which will happen in the FY '23. Otherwise, we are not making any capital expense.

Sorry, normal CapEx of how much?

INR 5 crores to INR 10 crores.

Sorry, sir. INR 100 crores?

INR 5 crores to INR 10 crores.

Okay. INR 5 crores to INR 10 crores. Okay. Got it. Got it. And nothing pending from the last year FY '22 that we will be spending in FY '23?

Nothing. Nothing. That is it.

Okay. And sir, what is the retention mobilization advance and unbilled revenue as on March?

So retention money is around INR 774 crores. Mobilization advance is around INR 1,080 crores and [indiscernible]. And you asked about unbilled revenue, it's around INR 1,100 crores.

Mobilization advance is INR 180 crores?

Not, 1 -- INR 1,080 crores.

INR 1,080 crores. Okay. INR 1,080 crores. Okay. Okay. Got it. And sir, in terms of the order inflow that we are looking at INR 8,000 crores to INR 10,000 crores. So this is in terms of broad -- if somebody wants to look at, it will be definitely will be from the road. But in terms of the HAM, how much more are we looking at HAM? And any other metro or other sectors where you want to specify anything?

So obviously, the order inflow that we are saying is across all the sectors that we look at and that we work in. It's not possible to give you an exact breakup of what and how we will earn and how much we will target, but that is the broad numbers that we are looking at. In terms of HAM and equity, our target obviously continues to be city, but we will take a call based on how the competitive analysis and the competitive situation in the sector looks. So those things will -- and may alter our bidding strategy, of course as we go across the years.

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

My first question on the [indiscernible]. So we -- as you said, we have taken, we have raised INR 700 crores so far, and we have the option of raising around almost INR 995 crores to INR 1,000 crores. So where are we in this? Are we going to raise any more money, sir, fully? Or we are not going to raise anything other than this so far?

So further drawdown is at the discretion of the company. So most of it like, as we had explained, is linked to the equity investment in the underlying subsidiary. So at that point of time as for the agreed LTV, we had already made the drawdown. So now in the coming financial year, if we feel that if there's a requirement, then we'll draw it; otherwise, it is our decision to draw or not to draw.

Okay. So now we -- as of now is INR 702 crores, and we are closing at it as of now which was the criteria as per the agreement?

It is not the closure, but it is -- I think it is open, but it is subject to the company's discretion.

We have the option, but subject to. And, sir, on the [ COD ], so the assets which we have, so when are we expecting the final closure of the [ COD ] because you said that…

In the month of June because now we have -- we'll be completing 6 months from the COD of each of the projects. Yes. Yes. So that threshold is being met and now the final closure is in the process. In 1 of the SPVs, in fact, we have already received the NHAI approval also for the transfer of remaining equity. And in other 2 SPVs, we are in the process of receiving the NHAI approval. So if that is received, so we'll be transferring the balance, 51% equity, in each of these SPVs.

Sir, what is the balance left from -- you said INR 150 crores, right?

Roughly between INR 145 crores to INR 150 crores.

That is the final balance state.

Yes. Yes. Yes.

And sir, on the irrigation project of Gujarat, so we are still lagging in terms of execution. So what is stopping us from ramping up the execution in the irrigation project, the Bhadbhut barrage project?

So now it is progressing well. Now there is no problem. So it has taken well in this quarter and Q4, and it is progressing well in this current quarter also Q1 FY '23. There is nothing holding this back.

It was basically lagging because of excessive rainfall. So that situation is now over. So during the current quarter, the operations have ramped up. So it is expected in current [indiscernible].

So the rainfall can come again also is that?

So rainfall is beyond control of anybody. So last year, like rainfall -- rainy season extended 'til November, even underground. So that was the primary reason that we could not clock revenue in this particular project. But starting Q4, the revenue have like normalized. And in Q1 also, the situation is expected to normalize and the [indiscernible] is rising.

And sir, based on the presentation, which I can see that we're expecting up on the date for 5 projects as per time line mentioned. So if we get the opportunity as for the time line mentioned, what kind of revenue contribution we can expect from these 2 in FY '23 in terms of percentage?

Individual project price guidance is very difficult, actually.

Total, I'm asking. No, I understand that. Broadly, in terms of what you can expect like INR 200 crores, INR 500 crores like you know, that way?

So 5 projects also put together, it's very difficult. INR 10,000 crores of guidance you have given for the FY '23, which we'll mean that we are confident based on the current situation. So giving the project group-wise, it is very difficult, obviously.

And sir, last question on current outstanding build pipeline in terms of NHAI building where we have [ bid for ] and we're expecting any opening of the much soon trend like that, sir?

Right now, the INR 40,000 crores is in the pipeline and 50% HAM project and 50% EPC project.

Any bids made by us, sir, in this?

Yes. Yes. We are there in all INR 40,000 crores.

So we are already -- so these builds are already closed. We already participate in this INR 40,000 crores, right, sir?

It is not closed. It has been floated. INR 40,000 crores...

So anything which has already been submitted?

Right now, nothing is spending for the opening.

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

Sir, my first question is around…

Mr. Kandpal, I'm sorry to interrupt you, but your audio is not very clear. May I request you to come on the handset mode and be a bit louder?

Is it better now?

Yes, this is better.

So my first question is on -- you said that first and second quarter will also be muted. I just wanted to understand out of the total order book, how much is the balance on the book of the legacy projects, which were in your balance in 2018?

Parikshit, sorry, but there is some disturbance. We are not able to hear you clearly. So we could not hear you what you have asked.

Around the legacy projects say, around the order book for legacy projects, [indiscernible] so how much were those orders in terms of order backlog?

So it is in the range of INR 700 crores to INR 800 crores.

In projects or margin count, as well, what will be the margin in these projects?

[Foreign Language] That's very difficult to break up and take it quarter on quarter [Foreign Language].

But the cost of completion, may [Foreign Language] I just to understand from which quarter, we will start seeing that 15% -- 14%, 15% margin coming back? [Foreign Language] When will it be completed and what is the shortfall in terms of cost to completion at current commodity prices in this order book?

[Foreign Language] now has put up the prices, [indiscernible] prices has been very volatile even right now before the recent government intervention, prices are going through the roof. So for me to give you an accurate idea right now is a little difficult. But -- and also, like I said [Foreign Language] Neither have we done it in the past nor do we have that good numbers available right now. [Foreign Language] Because of these legacy projects, there will be obviously [Foreign Language] Those challenges that we mentioned, that is what we're talking about. [Foreign Language] More than happy to have a conversation [indiscernible] I'm more than happy to take it

[Foreign Language] So third quarter, we can expect a normal execution and profitability quarter at least one like how we have done. The third quarter, at least its impact will go away, right, on legacy. This would be more of a normal quarter for us?

Yes. Yes, Parikshit, 100%.

Sir, just last is the status of the inventory side and where are we in terms of acquisitions, because of several reasons, that range of INR 9,000 crores to INR 10,000 crores. So the inventory [indiscernible] both marginally will come under control will start increasing significantly now. But [Foreign Language] because then that could play a big leverage on our debt.

We are also trying. So in the quantitative terms, we have reduced the quantity, but 'til the average price of [indiscernible], it is around INR 3,400 crores. And our target is to reduce the inventory by the financial year ending around INR 2,000 crores to INR 3,000 crores. So we are making our best effort to reduce the inventory.

The next question is from the line of [ Bhupendra Purohit ], an Individual Investor.

[Foreign Language]

So [ Bhupendra ], in quarter 3, we had incurred the losses for due to the legacy projects. In Q4, now we have ramped up and this has come to the almost 0 to INR 3 crores profit we have made. Now there is a legacy of INR 700 crores to INR 800 crores of the order book of this old project. So this now, it will end in the coming 2, 3 months. So from the Q3, Q4, Q3 onwards, you will see the normal execution in the normal market.

[Foreign Language] And second question is the provision that you could share with the future of this investment [Foreign Language]?

We have already done the -- we have done the nonbinding agreement with Shrem InvIT, we're going to be getting the InvIT units around INR 1,800 crores. So we will always have the opportunity, sir, that we can sell them in the market, if we want to. There is no limit on that.

We haven't done already?

Already the tender agreement with the Shrem InvIT, so we will get the unit of around INR 1,800 crores. So at any time, if you want to reduce the debt, so we can sell them because INR 1,800 crores is like the case.

The next question is from the line of [ Raja Natarajan ], an Individual Investor.

Am I audible, clearly?

Yes, [ Raja ], you are audible.

Okay. Okay. Sir, a couple of questions regarding Bangalore to Mysore project, is there any roadblock in closing this as we have recently seen some land acquisition kind of issues?

[Foreign Language] the project progress is around 98%. But it's for the second part of [Foreign Language]

Okay. And 1 more question, sir. Now for the last 2 financial years, we have seen, especially South India project side, we have seen a couple of our projects are impacted because of the rainy season, right? So do you have any special provision on the contract? Or is it in our purview to ask for special permission?

[ Raja ], we are not able to understand your question. If it is impacted by what you are saying weather, rain?

Yes.

Definitely. There is a special condition as per NHAI in the context for the rain. Okay.

Because we have seen this scenario and it is also impacting most of our South India projects. So there is nothing we can do?

It doesn't account for this, actually. Whatever they do for the other projects, the projects in the other region of the India, that the same conditions are applied to the projects floated by the NHAI.

Thank you. Ladies and gentlemen, that was the last question for today. I now hand the conference over to Mr. Jiten Rushi for closing comments.

Yes. We thank the participants for joining the earnings call. We thank the management for giving us this opportunity. Thank you, sir, and over to you for any closing remarks.

Thank you, Jiten ji. Thank you all the participants, our investors and partners for coming on the call and asking these questions. As always, we're always available. Please feel free to reach out to us for any -- if you have any more questions. Our finance team would be more than happy to help you out. I look forward to seeing you for our next quarter call.

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