GAIL (India) Limited (GAIL.NS) Earnings Call Transcript & Summary

[Audio Gap] in India, covering energy and APAC refining sector. It's my pleasure to now welcome the GAIL management team led by Shri Manoj Jain ji, Chairman and Managing Director; Shri R. K. Jain ji, Director, Finance; Shri Sumit Kishore ji, ED Marketing; and Mr. Sashi Menon, ED Finance. Though Gail management doesn't require an introduction, I would like to briefly introduce Shri Manoj Jain ji and Shri R. K. Jain ji. Mr. Manoj Jain, a mechanical engineering graduate and an MBA in Operations Management, possesses rich and adverse experience encompassing more than 36 years with GAIL in the areas of business development, projects, O&M, petrochemicals, pipeline integrity management and marketing, which has allowed him to gain insights and knowledge across multiple business units and functional areas. Mr. Manoj Jain is also currently Chairman of GAIL Global (USA) Inc., GAIL Global (USA) LNG LLC, Mahanagar Gas Limited, Brahmaputra Cracker and Polymer Limited and GAIL Gas Limited. He is also one of the directors on the Board of Petronet LNG Ltd. Mr. Rakesh Kumar Jain is a cost and management accountant by profession. He has rich and varied experience of around 30 years of working in oil and gas sector and regulatory. Prior to his appointment as Director of Finance, Shri Jain held the position of Executive Director, F&A HOD in GAIL. Additionally, he holds the position of Director in Indraprastha Gas limited, GAIL Gas Limited, GAIL Global (USA) Inc., GAIL Global (USA) LNG LLC, Bhagyanagar Gas Limited and Bengal Gas Limited. Earlier, he was on the Board of Ratnagiri Gas and Power as well. I would also like to express my gratitude to the entire GAIL team for working around the clock during the pandemic to maintain uninterrupted and safe transmission of natural gas and LPG supplies to the crucial downstream utilities. Thanks to the dedication of its staff for selflessly working at the front lines to ensure that there is no supply disruption. I would also like to appreciate GAIL's management for driving GAIL through challenges of the pandemic and recovering swiftly to report highest ever consolidated EBITDA and profit after tax during financial year 2021, '22. Obviously, you will hear more from the management, what drove this performance. Also, I will like to congratulate GAIL management for paying record dividends to its shareholders and performing 2 consecutive share buybacks back-to-back. And now I would like to hand over the proceedings to Shri Manoj Jain ji for his opening comments. Thank you, sir.

Thank you, Mr. Amit. My dear friends from investors and analysts community, Mr. Amit, my colleagues, have a very good afternoon to all of you, and a warm welcome to GAIL's Investor Analyst Meet 2022. It's such a wonderful feeling to see you all in person. We are thankful to all of you for taking out time to attend this meet. Last time, I think we had this meeting in 2019. And last 2 meets were through online systems only due to this pandemic. But now we are back and we can meet each other freely. The results for the quarter and the year ending 31st March 2022 have been declared on 27th of May '22. I take pleasure to state that during FY '22, GAIL has achieved highest ever yearly financial results on all the 3 parameters, that is turnover, PBT and profit after tax. For FY '22, GAIL achieved gross turnover of INR 91,426 crores, an increase of 62% over previous year. Profit before tax stood at INR 13,590 crores, registering a growth of 113% over previous year. Further profit after tax jumped 112% to INR 10,364 crores. This is the first time that our PAT has surpassed the 5-digit figure of INR 10,000 crores. The robust performance is primarily driven by better physical performance in natural gas marketing and transmission segment and better price realizations across all segments. As Mr. Amit has already pointed out, this is largely due to the team GAIL, which has ensured that the volumes are flowing through all the times even during the last year beginning when the pandemic again came back and also in January this year when the third wave came, all our plants were running uninterruptedly. And there was not a single disruption of any of the performance at any of the plant. And we have been able to supply P&G as well as LPG as well as petrochemical to all our consumers without any failure. On a consolidated basis, the GAIL clocked a turnover of INR 92,636 crores in FY '22 versus INR 57,208 crores in previous year, up by 62%. The PBT jumped 100% in FY '22 to INR 15,464 crores whereas profit after tax increased to INR 12,256 crores, up by 100%. During the year, company has declared an interim dividend of INR 9 per share amounting to INR 3,996 crores. The Board has recommended a final dividend of INR 1 per share subject to approval of shareholders on paid of equity, making the total dividend for the year to INR 10 per share. This is the highest ever dividend paid by the company. In absolute terms, we will be paying a higher dividend of INR 4,440 crores for FY '22. GAIL has also announced buyback of around INR 5.7 crores shares at the rate of INR 190 per share. The total CapEx for FY '22 is INR 7,700 crores, mainly on pipelines, petrochemical, CGD projects, operational CapEx, equity contribution and E&P. In the next 3 years, the total CapEx is expected to be around INR 30,000 crores, mainly on pipelines, petrochemical, CGD, operational CapEx, equity contribution and E&P and also some of the renewables. GAIL has LNG portfolio of over 14 million tonnes and diversity in supply sources and price indices. The company is well poised to cater to the needs of the customer and actively contribute towards the national goal of a gas-based economy. The company is also tying up new gas sources to meet the emerging gas demand in the domestic market as well as to maintain its international portfolio. Company has also embarked upon alternate energies like green hydrogen, renewables and biofuel projects, which are of national importance and would likely provide a transition to the future. I'll not take much time with the detailed analysis as the same will be covered by the presentations of our ED Finance and ED marketing, wherein they will be giving you the insights about the various parameters. Thank you very much once again, and joining in [ line numbers ]. Thank you.

Good evening, ladies and gentlemen. Thank you so much for sparing your time for this analyst meet. I understand you have been shuttling between 2 locations. So we have a small presentation for you. I need to go back to the first slide. Safe harbor statement. Now I can get back to the -- Enhancing quality of life to clean energy and beyond, this is our mission. Our vision is to be the leader in natural gas value chain and beyond with global presence, creating value for stakeholders with environmental responsibility. This is the overview of how the presentations will flow. So these are our major business verticals. Gas transmission and marketing, over 14,385 kilometers of gas network and growing, long-term portfolio of up to 14 MMTPA. Petrochemicals 15% domestic market share, capacity of 800 KTA at Pata and 280 KTA at BCPL. LPG and Liquid Hydrocarbons, we have 5 processing plants, 1.4 MMTPA of capacity, 4.55 MMTPA of LPG transmission capacity. E&P, we have participated in 12 blocks, presence in U.S. and Myanmar. Renewables, we have 118 MW of wind power capacity, 13.8 MW of solar power capacity. And our City Gas distribution presences, we have 67 GAs out of 295 GAs through our subsidiaries, GAIL Gas, Bengal Gas, TNGCL, 8 CGD JVs. This is our global presence. We have, as you already know, presence in U.S.A., Egypt, Singapore, Myanmar, China, and we also have presence in India Energy Office of Russia. This is our sustainability development initiative. GAIL embarked upon the journey of adopting GreenCo rating. In the last 2 years, 5 GAIL sites have achieved GreenCo rating: GAIL Vijaipur, Gandhar, Vaghodia and VSPL Pipeline having attained the GreenCo silver rating. GAIL Pata has been rated gold category under GreenCo rating system and an additional rooftop solar PV plant of 2.64 MWp capacity is underway at GAIL Pata plant. GAIL has commissioned a Heat Recovery Steam Generator, HRSG planted GAIL Vijaipur for waste heat recovery. GAIL is included in the FTSE4Good Index Series for the fifth time in a row, affirming the company's strong commitment towards ESG practices in oil and gas sector. GAIL is currently in the process of building India's largest green hydrogen plant and has undertaken a pilot project to analyze the feasibility of H-CNG. This is the shareholder pattern of GAIL, which you already know, as on 31st March. The President of India holding is 51.5% and the rest of the holdings you already know. GAIL Board approved buyback of 5.7 crores shares at price of INR 190 per share aggregating to INR 1,083 crores on 31st March 22. During FY '21, '22 GAIL paid interim dividend of 90% of paid up capital. GAIL Board declared final dividend at the rate of INR 1 per equity share in its Board meeting held on 27th May, subject to approval of shareholders. This is a snapshot of our corporate social responsibility, embodied under GAIL Hriday umbrella. GAIL has achieved spends of INR 203 crores, that is 3% against a mandatory 2%. Some of our flagship initiatives in CSR are as listed: GAIL Ujjawal focused on education; GAIL Kaushal, skill initiatives; GAIL Arogya, health and sanitary initiatives and other focus areas, especially in COVID, we spent about INR 87 crores through contributions to PM CARES Fund, PSA plants, oxygen concentrators, regulators, et cetera. Performance highlights, major highlights for the FY '21-'22. GAIL annual report and financial statements for the year '20-'21 has won Gold Shield in ICAI Award for Excellence in Financial Reporting for '20-'21. Received NIL comments from CAG for accounting -- Accounts of financial year '21-'22, 12th year in a row. Our credit rating stands at Domestic AAA, International Baa3 with stable outlook from Moody's, BB -- BBB minus with negative outlook (Fitch), is equivalent to sovereign rating of India. During FY '21-'22 GAIL paid interim dividend of -- at the rate of 90% of paid up capital. Further, GAIL Board declared final dividend of INR 1, as I shared earlier. GAIL retired high-cost loan by exercising call option on the Bond Series 2015, which was issued at 8.3% and an amount of INR 500 was prepaid -- INR 500 crores was repaid -- prepaid. Tax refund of INR 200 crores pertaining to Vivad se Vishwas was received by GAIL with 18 AYs out of total 21 AYs reached final settlement under the scheme. GAIL Board approved buyback of 5.7 crores shares at price of INR 190 per share aggregating to INR 1,083 crores. Highlights, highest ever LPG transmission of 4.199 MMTPA achieved in '21, '22, surpassing the previous highest of 4.163 MMTPA in the last financial year. Both VSPL and JLPL have recorded the highest ever LPG transmission individually. GAIL has successfully commissioned India's first project for blending hydrogen in city gas station on 31st January 2022. GAIL Board accorded approval for setting up 10 MW electrolyzer for producing green hydrogen at a project cost of INR 231 crores. Order for 4.3 TPD PEM electrolyzer for green hydrogen project has been placed on M/s Tecnimont Pvt Ltd. on 11th May '22. GAIL charter hired another LNG vessel Grace Emilia, vessel delivered to GAIL on 14th March 2022 for initial period of 5 years at a competitive charter rate. Successfully obtained approval from Competition Commission of India for acquiring IL&FS Group's 26% equity stake in OTPC, ONGC Tripura Power Company and completed acquisition of the same in -- on 4 January '22. GeM Portal -- procurements through GeM Portal has reached a record of INR 2,593 crores against MoU target of INR 1,335 crores. These are of our physical performance both in the -- if you look to the left, gas volume, there is gas transmission, gas marketing stood at -- gas transmission stood at 111 MMSCMD compared to 104 MMSCMD last financial and trading gas marketing is at 96 MMSCMD compared to 89 MMSCMD. Gas marketing mix is to your right, APM stands at 43%. Then we have RLNG, 21%; Spot, 9%; Mid Term, 16%; and Overseas around 10%. Similar is the gas transmission mix. Petrochemical sales stood at 790 TMT FY '22 compared to 871 TMT last financial. Liquid hydrocarbons sales 1,004 TMT compared to 1,138 TMT in the last financial. LPG Transmission at stable levels of 4,199 TMT. This is the profile of the natural -- next slide, please. This is the profile of the natural gas sector sales as compared to -- FY '21 compared to FY '22. If you look at the left, out of a total sales of 89.2 MMSCMD last year, almost 38% went to the fertilizers, 14% to power, 22% to CGD, 6% to others -- overseas and 19% others. Others cover steel, refinery, sponge iron and petrochemicals, et cetera. This slide also shows the domestic and the RLNG profile. The green is the RLNG, that is almost 42% and 46% in this year. Financial, this is the standalone financial performance, first ever, that is FY '22 turnover at INR 91,426 crore; gross margins, INR 15,876 crore. We have profit before tax of INR 13,590 crores, profit after tax of INR 10,364 crores. This is a snapshot of the balance sheet. Capital employed, INR 67,610 crores; net worth of INR 49,920 crores and loan outstanding of INR 5,900 crores. Key financial ratios: PAT to net worth, 21%; return on capital employed is at 20%; debt to equity at an impressive 0.15%; share price, INR 156; and earnings per share is at INR 23; market capitalization INR 69,137 crore. This is the consolidated financial performance. Turnover INR 92,636 crores; gross margin, INR 18,086 crores. We have a profit before tax of INR 15,464 crores and a profit after tax of INR 12,256 crores. This is the revenue reconciliation. I will not read out the figures. This will be available to you also. So this is the revenue reconciliation on consolidated basis, FY '22. PAT, if you can come here. PAT reconciliation is as shown in the slide, for the INR 12,256 crore profit after tax. Capital -- this is the capital expenditure, FY '22 and the projections for FY '23. INR 7,700 crores this financial -- FY '22: 54% towards the pipeline projects; equity participation, 12%; operating CapEx, 21%; and the rest, as shown on the slide. Almost similar performance next year with major CapEx happening in the pipeline sector. We can come to the next slide. Actual CapEx and capital commitments. I will -- these are the different major projects that we have in hand. I'll just run through the expected completion date, Dhamra-Angul, December '22; Dobhi-Durgapur, 30th June '22; Bokaro-Angul, June '22, Durgapur-Haldia is June '23; Barauni Guwahati, June '23; Dhamra-Haldia, 30th June '23, KKBMPL is February '25; Srikakulam-Angul, July '23; Mumbai-Nagpur-Jharsuguda, 2023. And this major PC, petrochemical project, that is the PDH-PP that is coming near here in Usar. Expected completion is in April 2025, and the polymer PP plant in Pata is January 2024. I would now request Sumit to take this presentation forward. Thank you.

Good afternoon, gentlemen. I'll just quickly take you through the industry outlook, where I'll be first giving you a glimpse of what has been happening in the international market, and then we'll quickly run through what has been happening in the Indian market and especially with respect to GAIL. Now we all are aware that all the major economies, the governments of major economies have been struggling with the idea of how to achieve net zero and the climate change is a thing which has been bothering all the nations. The role of natural gas, we feel while this energy transition is going to happen, will still be very important, especially during the transition. We all know that fossil fuels dependency will decrease, but as we switch over from the fossil fuels to the renewables. But especially in economies like India and China, where coal is still playing a major role, gas will continue to play a major role. And especially, there will be more and more industrialization shifting towards these countries like India and China. So gas will continue the role as a transition fuel. Next slide. Okay. So while some of the major changes have happened in the geopolitical scenario in the last few months, it's an eye-opener for all of us. The race to net zero, whether it is too fast or the countries are trying to reach that energy transition, whether they are taking care of the energy transition or the energy security aspects, while they are rushing to the net zero is a question mark. Now this kind of energy shock, whether this was the first event or there will be more such events, we are all struggling to find it hard. But one thing is certain, we cannot choke the investments in the E&P sector, and that's the realization now which is happening very fast. And in these circumstances, we understand that gas will play a major role. It's a dual role that gas will be paying. It will be replacing the fossil fuels, especially the liquid fuels and especially where the industrialization is taking place in countries like India and China. Gas is a much better fuel compared to the solid fuels like coal, et cetera, and it will help in reducing the carbon footprint also. So that's how we see the things playing out in the next few decades. See, this slide again shows countries like India and China. They are using natural gas and renewables to a lesser extent compared to other global major economies. And share of natural gas is definitely going to increase in these 2 countries, and where the coal is having a very high percentage. So that's already a given. We all have to see at what pace it is going to happen. Next slide, please. See, this broadly shows how the -- even in the difficult year where at least half of the year was -- many of the countries were struggling to fight the COVID pandemic. Still, the imports have grown to the extent of around 6% world over. And this has been mainly driven by countries like China, which have increased the imports to a large extent. And China has now taken over as the #1 LNG importer. Earlier, it used to be Japan. And this major new sources emerging, the increase in the share of exporters has been mainly driven by the U.S. especially, the Henry of [ driven ] gas. So this again is the country-wide LNG importing list. And China has become the #1 and India continues to remain at #4. But most of the growth is in the future, next few years has -- is expected to come from these 2 countries and other Asian countries. India is still at -- among the top 13, we are at 13th sequence as far as gas-consuming countries are concerned. We see a lot of potential because our -- the percentage of natural gas in the energy mix is only 6.7%. So there is a lot of potential, and we are certainly going to jump few places in the next decade. As far as energy consumption is concerned, China is, of course, the biggest contributor of the -- in the global energy consumption it's at 26%. India is also quite important at 5.7%. But if you look at the projections, how natural gas and the primary energy consumption is going to grow, we are expecting it to double. The India energy consumption is going to double by around 2050. And mainly very energy-intensive activities, especially are going to get relocated to countries like India and some of other Asia Pacific countries, and they are going to drive the requirement of natural gas. And role of natural gas will continue to remain important, especially it is near to zero carbon. It's near to zero carbon, it's important to understand. And of course, in the future, it's -- natural gas also has the possibility to produce green and blue hydrogen. If you look at the domestic gas consumption pattern, how it has been. Fertilizer and power have, as usual, especially in the year, just '21, '22, they were the major drivers of consumption. Future is going to belong, if you see the pie chart which is down below, it's a projection for around 2030. CGD and the industrial segment are going to drive the growth in the next decade. And of course, some consumption is also expected to increase in refineries, the steel sector and others. Normally, fertilizer segment and Power segment will still continue to be the backbone of the consumption. But as we grow towards the 2030, the ambition of the nation is to achieve 15% natural gas in the overall energy basket. So the drivers will, of course, be the newer areas. The gas infrastructure is definitely in place for this new growth, which we are expecting. The terminals are coming up. We already have a 40 MTPA capacity. It's going to be around 1.5x. Upcoming terminals Dhamra, Chhara, Jaigarh, Jafrabad. And of course, Dabhol also, we are carrying out the breakwater activities. So that will also be available full season next summer onwards. And as far as pipeline is concerned, it's going to be around 1.8x in the next 3 or 4 years. So the infrastructure would be in place. The growth driver, the CGD sector -- now practically, with the new rounds of 11th and 11 -- 8th round of the CGD rollout. Practically, the whole of India is now covered with GAs and it's -- 88% of the country's area and 98% of the country's population is virtually covered under the CGD ambit. The CNG stations, already around 4,400 CNG stations exist. This number is expected to reach 10,000 by 2030. DPNG, the household PNG connections are expected to reach INR 5 crores by 2030. So this is the growth story emerging. As far as the petchem segment is concerned, we see a lot of potential as the GDP grows and the economy grows. The per capita plastic consumption in India is only 11 kg, whereas in countries like China, it is 45 kg and even in other developing countries, it is 30 kg. So there's going to be a lot of growth in this segment. This growth is going to be primarily driven by the packaging industry, the e-commerce industry, the automobile segment and the agricultural as the advancements happen in the irrigation sector. We expect around 7% to 7.5% growth in the plastic consumption in the country. As GAIL, we are going to lay new capacities in Usar under the PP segment -- sorry, in Usar, we have the 500 KTA PP plant and another 60 KTA in Pata, which are going to come up in the next 2, 3 years. Now that's the stable businesses of GAIL. We are still looking at other segments, and we are getting ourselves future ready. So we are doing things in hydrogen, CBG, ethanol and the renewables. Hydrogen, we have already placed order for the 10 MW electrolyzer at Vijaipur. And as far as CBG is concerned, we all are aware that GAIL has been made responsible for blending of CBG in the CNG PNG segment, and it is as outsized by the government of India. And we are already -- 6 GAs are getting CBG made gas in the segment, and this number is going to grow in future. GAIL is itself setting up a 5 tons CBG plant at Ranchi. In ethanol, we are already looking at 2, 3 sites where we are going to set up ethanol facilities. Renewables, we have an ambitious target of achieving 1 gigawatt renewable power. So that's how we are looking at other emerging segments also to diversify our portfolio. Thanks. That's all.

[Operator Instructions]

Hi. I'm Manish Jain, and I wanted to understand your initiatives pertaining to hydrogen. What are the challenges that you foresee in blending hydrogen in your existing pipelines, especially the old pipelines and the new pipelines. And if you can just give us a road map for the next 1, 3, 5 years, that will be good.

The -- primarily what we are looking at, use of hydrogen in 2 ways. One is that producing the green hydrogen. For that, we are putting up a 10-megawatt electrolyzer at our -- one of our process plant at Vijaipur in Madhya Pradesh, and that will be powered by the renewable energy. That order we have placed and that project is going to be completed in 18 months' time. As far as demand for that 10-megawatt electrolyzer is concerned, there are probable options with respect to fertilizers as well as mixing in the natural gas pipelines and supply to end consumers separately also. It all will depend upon, one is the government policies, which we are expecting maybe in the next few months will be finalized and coming, especially with respect to mandatory obligations at fertilizers, refinery and other sectors. Regarding the second aspect of mixing of hydrogen in the natural gas pipelines, we have already started one of the pilot project in January '22 in Indore. And we are supplying to the -- one of the city gas distribution network. Up to 2%, we got the approvals from the PESO as well as PNGRB regulators, and that is continuing for last 4 months. The first draft report on the results has also come and the 2% there is no adverse impact. So materiality-wise, it is satisfactory. Now we intend to go for more percentages increase with the approval of the regulators to move ahead. That is one part. Secondly, we are also looking at with the support of EIL that lab-based studies on the impact on the various materials of natural gas pipelines. As far as the differentiation between new and old pipeline is concerned, we understand from the worldwide studies that up to X52 grade pipes, provably some of the European countries have gone up to 18%, whereas in -- above 52 grade pipes, like which we are using X70 and X80 grade pipes, probably they feel that the percentage may be slightly lower. So that needs to be firmed up. So that we are working on, that how it can be worked. Associated with the pipeline is the various accessories like valves, bends, that also studies are being underway. And the most important part is the impact on the end user because if a user is fertilizer plant or user is a household kitchen or user is the automobile vehicles, impact on all these areas also need to be elaborated and also tested. So we have also commissioned those studies. So primarily at this stage, we are working on the hydrogen space with respect to technical -- ascertaining the technical viability and the compatibility with respect to pipeline. So as such, at this stage, the planning for 1, 3, 5 years may not be that much reliable from that perspective. But from the green hydrogen perspective, we intend to go up to around 35,000 tonnes of hydrogen making by 2030, that is our tentative estimate. But we need to firm up policies within next 18 months to 2 years when all these studies as well as government policies will be clear. So primarily, the [ firm ] plants after 18 months are contingent upon the government policies with respect to the hydrogen mandatory obligation. With respect to the tariff exemptions of renewable with the hydrogen location advantages and also the end users' compatibility.

Hello, sir. Am I audible? Yes. This is Probal here from ICICI Securities. I had a question regarding the gas pooling policy that has been put in place. Obviously, a couple of things. One is that the priority of mixing that you will be doing, what we read from the document that's come is HPHT gas followed by term and followed by spot. So is there a sort of a premix formula that will be evolving as we go along? How will GAIL actually practically be doing it? That's one. And secondly, what will be the tenure of the pricing that will be there? From what we understand, the initial pricing communicated to the players is for the first, the 15 days, whereas the document mentions allocation being done on a quarterly basis of the volumes. So how will that actually play out if you can just clarify for us?

Pricing will be on monthly basis. So for the first -- since it was started on 16th of May, so it was for 15 days. And from 1st June, we'll have the pricing for the June. The primary reason for this monthly pricing is that presently since no HPHT gas is available and also no long-term RLNG is available. So we are procuring spot RLNG for mixing. So depending on the arrival of spot cargo, we are doing it on monthly basis, which has been allowed by the government. Second part is the priority of mixing. As you rightly know, the APM and non-APM is the first priority, whatever is available for this sector. And then a small element of CBG, whichever is available, will also be added to it. Then after that, if HPHT is available, then that will be the priority. And then the long-term RLNG and the spot RLNG, depending on the availability will be the priority. So that is the priority which has been decided. But after all, it will be deliberated and once either long-term RLNG or HPHT is firmed up. So that will become a part of that pool. Because long term, if it is fixed up, it has to remain for long term, so that will become a part of earlier priorities.

Sir, if I can ask just a small follow-up. Term LNG would include the U.S. Henry Hub linked gas that we have in our portfolio? Is that an option for us to blend it?

As of now, no, because that entire gas of term LNG has been sold out. So that's why otherwise we would have done from the day one. Now whatever will be available, will be -- probably we'll be sourcing it.

Hello. I'm [indiscernible] from [indiscernible]. Thank you very much for your detailed presentation. So then going back to the question -- an earlier question on the pool gas supplies. So there's a figure of $8 per MMBtu, which is being quoted as the current price for the CGD sector. So is that based on gross calorific value or net calorific value? And does it include the pipeline transportation tariff on an average basis for all the CGD companies?

See, this is uniform basic price. So it does not include any transportation tariff. That is one. And secondly, it is on the basis of gross calorific value.

So the actual delivered cost for the CGD companies will include the difference in transportation?

Yes, not only transportation, but VAT and other taxes also.

Okay, okay. Sir but for CNG, there is no VAT in Delhi. It's just excise duty, right? So...

But in some states, it is, yes.

And the second follow-up question is now in terms of the long-term growth for transportation and marketing. So we see 22% or thereabout, say, CGD. So that seems to be the only sector where you have any traction in terms of growth. So on the fertilizer, obviously, the 3 new fertilizer plants on the JHBDPL pipeline will give you some growth. So in terms of your transportation and marketing volumes, what is the kind of growth we can expect in FY '23 and then going forward?

For next 3 years, we expect that in the sales, the growth will be 6% to 8% and for the transmission, 8% to 10%.

So this will be primarily driven by CGD?

It will be primarily driven -- the transportation will be primarily driven by CGD as well as refinery and also the fertilizer plants, which impact is yet to realize in this year. Some of the plants came mid of the last year and some 2 plants are more yet to come, which will be coming this year. And for the refinery part, it will be just transportation, which majorly we are expecting will be impacted.

Just one last thought. Now if you look at the gas pool policy, for the new CGDs it starts at 6,000 [ ACM ] per day. And then you have an increment. So if you look at the planning that has gone into the new CGD applications, [indiscernible] possibly had a time line for reaching critical mass or the peak volumes. So doesn't this inhibit the potential for achieving breakeven or viability for the new CGDs? What is your thought on that? And will some backstopping have to be done for the new CGDs in terms of the allocation of gas for CNG and household PNG? What is your thought on that?

The first quarter, the government has allowed up to 6,000, whatever quantity they take, that is allowed to them, 100% of this unified base price. Whereas in other cases, there has to be a quarter's lag. So for that purpose, this new CGD is of a small advantage. But you are right that volume is too small to make any difference, much significant. Second part is that you suppose some CGD ties up through CBG in that area. So that will be over and above that allocation of CGD that is allowed additionally.

Sir, one question from my side. My name is Reena Shah. I'm from Elara Capital. Sir, I wanted to understand this pooling, how this benefits GAIL in terms of volumes or margins and in which segment will it benefit?

See the pooling of CGD, if you look at, it is actually a win-win for not only GAIL, but also for the CGD companies, that most of the CGD players who have bid the authorization and won it, they are a small player and probably they don't want to directly import the RLNG and thing and they do not have the requirement to the extent of a cargo or 2 cargo like that. So that aggregated volume can be imported by GAIL. That helps them as well as GAIL and GAIL in turn will charge only a fixed small marketing margin, which GAIL is already charging for all the CGD volumes. So from that perspective, the additional volume will be coming to GAIL with that fixed marketing margin from the GAIL's perspective. And from the consumer's perspective, they will be saved from the hassles of importing this large volume and then how to store that and all those problems.

Okay. And sir, one more question. In last quarter, we have seen transmission volumes going down. Is it because of Omicron impact only or it is because of higher LNG prices? How do you see higher LNG prices impacting your transmission volumes going forward?

See primarily the impact of transition volume going down was because of Omicron as well as the shutdowns which were taken by some of the plants, including our own petrochemical plant in the month of March. But you are right that some of the small industries which were on gas, they have also slightly, but that impact is not significant. Going forward, we feel that the impact, since all the fertilizer plants as well as our own plant has come back on stream, so from June onwards, this impact will not be there and there will be growth in the transmission volumes. And plus, we are also expecting that coming forward in the month of August, September, and October, the demand from power will also be coming back, so that will also add to the volumes.

Sir, this is Avishek Datta from Prabhudas Lilladher. Sir, I just had a query, like you will be supplying gas volumes to the CGD companies. But what happens to companies like IGL who has already tied in medium- to short-term contracts, what happens to their volumes?

See actually, they have already tied up these volumes because they need that gas. That primarily they are catering to that volume for the commercial and industrial entities which immediately they might have used for this mix adding to this CNG pool. But now since their commercial industrial portfolio is also increased, they are in a better position to utilize for that. And in any case, that's why for CGD companies, we have capped take-or-pay at 60% here.

Sir, this is Vishnu from Spark Capital. I have a few questions. Firstly, on the pipeline division, we have close to multiple lines that are coming up in '22 and '23. So do you have any volume commitment, especially when you go towards the steel sector, Jharsuguda, all these Bokaro and all these places. Do you have any volume commitment from these potential clients there? And when you say 8% to 10% volume growth that you will do in the transmission side, how much are you penciling in that would come from these pipelines? If you could just help us understand that.

Yes. This 8% to 10% is for transfusion, 6% to 8% from sales. So obviously, the sales part will be GAIL's kitty, which will be adding to both sales as well as transmission. And the Jharsuguda and all those customers, yes. You know that there are already 3 big fertilizer plants that are connected. Fourth plant of Matix is also already running. Then we have got refineries, which will be connected. And all these steel plants as well as these CGD, which are on this route in Odisha as well as Jharkhand, there also will be connected maybe by August or so, all things will be thing. And maybe this October we'll have complete Odisha, Jharkhand, Bihar, that entire section will be connected to all the pipeline. So the volume of transition will be primarily driven by these fertilizer plants, refineries and CGD entities. Volume for sales will be primarily driven by these 3 fertilizer plants as well as the CGD, which are under GAIL or its JV's purviews. And also, as you rightly said, the steel and its ancillary industries, which we expect in the range of 1.5 to 2 MMSCMD initially maybe in a year's time.

We have -- I mean, multiple lines going to the same location. So when you say these fertilizer plants, this -- the Urja Ganga line does cater to a lot of them. But how do we see the other lines, let's say, if I'm saying the Jharsuguda line or, let's say, even the Srikakulam-Angul, those lines will not really help for the fertilizer plants, I mean.

No, actually, those lines have been designed that they will be cater like Srikakulam-Angul. That line is primarily between Srikakulam to Angul whatever the consumers come, it will be catering to that and connected both sides from the grid. So it is a part of national grid, so connection at both the ends. Similarly, Mumbai to Nagpur to Jharsuguda, so it is actually connecting Mumbai to Nagpur, we intend to connect by, say, December this year and maybe up to Jharsuguda, maybe next year, '23. So this will also be again a part of the national gas grid. The connection to the grid helps in 2 ways. One is the, all the en-route entities are connected. And secondly, it also helps in providing an alternate route in case of any safety or any requirement. And at the same time, the pressures are healthy, so we are able to cater to a large volume of consumers when all the pipelines may be running at full capacity.

Understood, sir. So we have a total of about INR 30,000 crores odd CapEx, where I think I can see that about INR 16,000 is done. So in effect, only INR 14,000 crores will go towards pipeline division. Is that right?

I'll just check the number what you said. The INR 30,000 crores, what we are talking is total for the coming years, not that what we have already spent.

No. I mean, if the approved costs I add up, it's coming closer to ...

Yes, that is for pipeline. But then around INR 9,000 crores is for petrochemical project, which is one is Usar near Alibag. And the second one is in Pata. And then we have got E&P CapEx, which will be coming up. Then we have got CGD CapEx, which will be coming up. Then we have also equity contribution, which we'll have to give to our JVs and other CGD companies. And then we are also looking at 1 gigawatt of renewable energy in the next 3 years.

My question is actually that once we have done with these lines, more or less the incremental capital towards pipeline division will be much, much lesser because most of the pipelines will be done by then. Maybe 2 years out, you may not really require a lot of pipelines investment.

I mean look it from the perspective of a basic model versus an advanced model. See, the basic model of the national gas grid consists of the 34,000 kilometers of pipeline, which you are right that will be completed in the next 3 years or so. But if you look from a country like ours versus a country like U.S., where lakhs of kilometers of pipeline is there, where 34,000 is nothing. So more many, many spur lines and new connecting lines will be definitely coming up. Like now we are talking about line coming from Gurdaspur to Jammu to Srinagar. We are also talking about a pipeline in the Northeastern region. So there are many, many more opportunities which are available and will be available. Definitely, we'll have to work from the basic grid, then how we can further match this grid to into an advanced.

And just last one from my side. Given that these are getting commissioned and the tariffs are going to be higher for them. I mean, how are you able to fix customers with unified tariff coming in? Or when do we expect that to kick in -- any thoughts on that?

So unified tariff has already been notified in a different form that is weighted average tariff. So -- but that has not been implemented because of various implementation issues. So we hope that PNGRB -- and we understand that PNGRB is working on sorting out those issues to work out that model or the regulation implementable. So one of the way which PNGRB itself has notified or floated a concept paper in 2017 is the entity level unified tariff and then at a larger level or country level. So PNGRB, we understand that has already started the process of doing that. And in that process, they are working for arriving at a capacity for unified network. So we hope that it will come. And then once that is done, then certainly that we will be able to see that model.

Any time line you would put to that?

Time line, it is regulator to do that. But since now more and more pipeline are coming up and that additive tariff may become a prohibitive for the development of gas market in the hinterland and the areas which are far from source, certainly, that will be done maybe in a year or so. That's what we understand. But anyway, we will not be able to give any time line for that. And PNGRB has already started working on that.

This is Sabri Hazarika from Emkay Global. I have a question with respect to the petrochemical plant, where would you be sourcing the propane from for this new plant? Would it be internally from GAIL's system gas? Or would it be imported from outside?

It will be imported propane. That's why we have chosen the location of Alibag, and we have already preliminary agreement with BPCL who, in any case, bring a lot of imported propane into the country. So we'll be also bringing along with them because our requirement is a fraction of what they bring every year.

Right. So it will mostly come from Middle East?

Yes.

And what would be the amount of propane, which would come on metric tonne?

It will be 600,000 tonnes per annum.

Okay. And lastly, what is the project IRR of this petrochemical plant -- equity IRR to ...

Yes, it is above the threshold level of GAIL's projects.

And 15%, 16% of equity IRR or would it be different?

[Foreign Language]

[indiscernible] a follow-up question. So looking at the earnings prospects for the next 1, 2 years, I'm not asking for guidance here, but the sense we get is the gas marketing is at the peak, transmission may deliver some growth because of the volume growth. But in petrochemicals and LPG, there are pressure points because the petrochemical margins globally, what we see are down. In LPG you have the problem of the increase in the gas feedstock price. So how do you manage these challenges, say, in the next FY '23 and FY '24? Is there any backstopping you can expect for LPG given that's also a priority sector? And in petrochemicals, how do you see the margins in the next 6 to 12 months?

See, for the current FY '23, we feel that the margins are going to remain more or less in the similar range. probably because of the 2 reasons. One is that our transmission volumes will increase, so that will lead to some growth in our profitability from that perspective. Similarly, on the trading front also. Now this year, we have done a lot of stabilizing efforts, and we have got that basis risk, which was there earlier is also reduced to a considerable extent. And the hedging part is also strengthened. So from that perspective, we expect that between INR 2,000 crores to INR 2,500 crores stable earnings is an assured one. And beyond that, depending on the volatility we can further on. And if you look from petchem side also as well as LPG, the prices so far are running very good. And we feel that similar prices will prevail because of the uncertain global scenario also. And since we do have long-term gas allocated to our petchem, we feel that the margins may be similar to last year. And for LPG and LHC, though the prices are much better than last year, so cost definitely has also increased because of APM gas cost has increased, but we have also started hedging activity for LPG. So that is also giving some stability to us.

So since you mentioned hedging, can we get some indication of how much you're hedging on the gas marketing side and on the LPG side?

So primarily, we have -- if you talk of U.S. gas, if we talk of this year, hedging is a continuous activity and done at an appropriate time. We talk of this year, almost -- we are bringing 13.5 MMSCMD of gas to India from United States. So one of the jobs we did in recent past that almost 7 million of gas, we have tied up on a back-to-back basis, where there is [indiscernible] plus some marketing margins. So to that extent, we are price risk free. And second, what we have done almost 1.5 million to 2 million of gas, which we have sold other than the Henry index already has. And for remaining gas, we will be appropriately hedging because we look for the market opportunity on the hedge. So currently, almost 9 million gas out of 13.5, we have tied up either back-to-back or we have hedged.

And on LPG, how much would be the hedge?

LPG, we have just begun. So earlier, we were not hedging LPG, only this year, last March, we have started hedging. So it's only a small beginning, almost 23,000 metric tonne of LPG we have hedged.

Okay. Just one last thought. It's more of a philosophical question because if you look at international energy hedges, you see they are pointing to the risk of methane emissions in gas processing. The Indian policy doesn't seem to take cognizance of this. So is there any background discussion going on in terms of in emissions? How are we in the CGD sector and the overall gas processing planning to tackle this? Or is it something that's already under control? So I would like to understand that.

See one part is that we feel that the energy transition with the concern for sustainable environment has to be a gradual one. So from that perspective, while we are promoting gas as compared to liquid fossil fuels. At the same time, we are also working on hydrogen because hydrogen is much talked about, but less worked upon. So we are trying to work out the standards for the country, for the hydrogen arena. And once those are firmly in place, especially with respect to how pipelines can carry hydrogen and up to what percentage, then probably that philosophy or the policy or the guidelines or the regulations will drive us maybe in the next 8 to 10 years towards a hydrogen sustainable future. There, if we mix with the natural gas, definitely, it will also help us in reduction of carbon footprint. So it's a gradual process we are working.

Yes. I appreciate that. Maybe we can take it offline. But you're looking at methane emissions, that seems to be a bigger concern because it has a lot more damaging impact on the climate change. Unfortunately, in the Indian policy, we have not paid enough attention according to my reading, I may be wrong. So that's possibly a...

Yes. From the GAIL's perspective, I can say that once, maybe around 7 or 8 years before, we have already done one study for GHG emissions. And we found that our systems being very nicely maintained. Actually, GHG emissions is a major concern when there are leakages. So we found that our systems were well maintained and very well taken care of. That's why at that point of time, it was not having significant impact. Again, this year, we have started a study for net zero as well as for GHG emissions. So maybe in a year's time, those results will also be again available. So we can work on those if there are any concerns.

Pinakin here from JPMorgan, sir. Sir, 3 questions. On the CGD sector, sir, can you give more details in terms of the pricing and volume. For example, you said pricing is monthly. So for the month of June, you would have a sense of what will be the blended portfolio price of the gas, which is going to be supplied to the CGD sector? And how does that compare with the $6.1, which the government has set? And also, for example, for the month of June, what is the spot component of the supply vis-à-vis what it was in March?

See, while the -- for 16th of May, it was $8.04 as compared to that $6.1. And for the June also, the final price, probably people are working today and tomorrow with the PPAC. But we expect that it will not be very far off from the May price.

And sir, what would be the spot component of that supply? So there's APM, there's HPHT and there is spot RLNG as you mentioned.

See HPHT as on date is not available. So that's why that's not there. APM, non-APM is the large percentage. And maybe RLNG is in the range of around 10% or so. I -- exact number, I don't remember, but it's around 10% or so.

And sir, just to round up this discussion. In terms of the visibility that you go and book spot RLNG, it is for how many months before, because the expectation is that spot LNG prices could again surge starting October, November this year and cross this year's highs. So we're just trying to understand, is this a very short-term thing, which will differ from month-to-month?

With respect to CGD?

Yes, sir.

See as of now, for the first quarter, government has mandated that you buy spot RLNG. So maybe till June end or maybe it will work for July also. And then by the time we get the figures of June end, then the new demand will be forthcoming after the quarter's numbers are frozen. And then based on that new demand -- and in the meantime, we are also looking for long-term RLNG opportunities. So if we are able to tie up something then probably that can fit into or else, there is an expectation that in September, some HPHT biddings may come. So at that time, we'll have to work on that.

Sir, just to reconfirm, you mentioned gas trading margins of INR 2,000 cores to INR 2,500 crores, right, for F '23. That implies a sharp decline from F '22.

No. What we are trying to say, the concerns for that, last year there was a negative margin. This year, there is a positive of 4,000 -- 3,800 or something. So what we are trying to give you the aspect that this year and the last year, the change is that we are -- as Mr. Jain has already said that we are already tied up back-to-back from the trading perspective with a fixed margin. So that all accounted for, it's still going to give us an assured number of this and any upside is further there. So we are not expecting that there is going to be anything which is below this number as was the case last year.

So sir, just to clarify, if spot LNG prices in F '23 would have the exact same trajectory as F '22, should we have the same EBITDA or should we have INR 2,500 crores?

It needs to be better than today.

It needs to be better.

Yes. Because definitely, if everything is same, we have got additional volumes. So it should be better than this FY '22 if everything remains the same.

Understood. And sir, lastly, I mean, any comments on the entire speculation of a windfall tax and everything? Has the government sounded out as any discussions going on? What do you -- how do you view it, sir?

So far, we have been not been sounded by anyone, number one. Number two, I mean, from the logical perspective, what we feel is that transmission is a regulated activity. So there is no question, which is around 30% of our total earnings. Similarly, petchem and LPG are the market-driven prices and market-driven sourcing of raw material. So that also doesn't fall under any windfall. And even the gas trading part, if you look from the Indian perspective, whatever we are doing is 90% of that is against fixed margins. So I don't think that it's a pass-through for GAIL. So probably whether we fall into the definition I have -- I mean doubts about that.

Yes. Sir, Mohan, here, I just wanted to understand, many industries are trying to decarbonize between now and 2030 and '40. Now do you visualize newer industries moving into gas, particularly something like steel, which is largely dependent on coking coal or other coal users, which could be new -- totally new lines of business for us?

See, one is that steel industry, I don't know the primary furnace, even the existing blast furnace can take up to 30% of gas with minor modification. So that is a good area where they can look into. And we understand that some of the big players in the steel industry are trying for that, for decarbonizing their operations, some in the Eastern India. And once they get connected to the pipeline that provides an ease for them to work up on those areas. But primarily, what we feel that the drive for natural gas demand while most of the industry try to decarbonize, but many of the industry is actually trying to shift from more polluting to less polluting because transition in a knee-jerk reaction, we have already seen worldwide. So if world cannot sustain how this small industry can sustain? So like you look from the NCR perspective. Now this entire NCR area is slowly, slowly graduating to gas from coal, FO and all [ LS, HS ]. So that's a big area, which is coming. And the third and the significant area is that most of the refineries are now getting into this petchem mode operations. The conversion of the 10% to 15% is now going to up to 24% or so. So petchem, if they go, then they definitely need more gas for that plant. So that's also one of the big area which is coming up for the gas.

And longer term, if the hydrogen economy truly happens, how much will be the investment needed through use of our existing pipelines? Can they be modified totally to carry full hydrogen or new pipelines have to be set up?

At this stage, I will not speculate because it's a technical thing. And once we do experiment up to what percent existing pipeline can take, then first, we can answer for that. Secondly, if it is 100%, there is no problem because even today also, our industries, our process plants have internal piping and pipelines which are purely for hydrogen. That is already available. And even in the PDH-PP plant, which we are coming up Usar, I think we have got 24,000 tonnes of hydrogen, which will be available as a byproduct to that plant because it's a propane dehydrogenation plant. So hydrogen will be available as a byproduct.

My question is with regard to the possible InvIT of the pipelines. I read -- I mean, there was a news item that floated around a few days back that the proposal has been reset back to the PPAC. Are there any updates on the upcoming InvITs from your end?

On asset monetization?

Yes, sir. The InvITs of the pipelines that we have.

Yes, actually, InvIT is one of the method of asset monetization. And while we are working on that around INR 4,000 crores pipeline asset monetization, but which mode it will be finally decided where InvIT is one of the mode available. There are other modes also available. So that is yet to be finalized.

Wanted to -- Krati Sankhlecha this side from Crédit Suisse. I wanted to check on the HVJ pipeline. So HVJ must already be about more than 65% utilized, and GAIL gets a fixed minimum return on 75% utilization. So -- and given the large increase in the CGD demand and the fertilizer demand that's going to come, wouldn't GAIL need to put another expansion of HVJ? Or do you think that with Urja Ganga coming in, some volumes would get diverted and the additional CapEx would not be required?

Actually, if you look from the total pipeline portfolio, we are utilizing only 55% of our pipelines. So there is -- I mean, whatever is present 110 MMSCMD, we can easily double it without any expansion or anything. Specifically to HVJ, if you look together from Hazira as well as from Dahej because both are meeting near Baroda, a place called [indiscernible]. So they're -- and then they are parallelly running into the same right of way. So there is 100 -- if I remember correctly, this is 108 million -- 107 MMSCMD of capacity, which is available. out of which presently we are utilizing to the extent of, I think, around 45 -- 70. So there is still a scope for 38 MMSCMD, which is a huge number. But definitely, as and when need is there, we are there to play.

So sir, you would rather go till a 100% utilization versus adding a new line once you reach 75%?

No, it's actually a parallel excise like from Vijaipur to down to the U.P., we have already laid 1 more spur line. So because we wanted to cater to this Phulpur and then up to Kolkata and maybe up to Northeast. And similarly, from Dhamra also it will connect. So wherever we find that in future, maybe 5 years down the line, there is going to be a constraint, we can look for that. And even today also, when the pipelines are running, some of our compressors are not running. So we can further enhance the capacity by just running those additional compressors.

Okay. Understood. And sir, on the Urja Ganga pipeline. So what portions of the pipeline are functioning as of now or nothing is functioning?

No, no. There are many portions which are functioning like Phase I is completely functioning for the last 4 years. And then in the Phase II also, up to Durgapur it is functioning. One fertilizer part is continuously running. And then we have got -- it has reached up to near Ranchi, but just about to touch Ranchi. And then we are also connecting maybe in this month of June itself, this Bokaro to Angul section. And then maybe in the month by August, we'll be connecting from Dhamra, entire Odisha of 800 kilometers will be connected. And by December -- and Jamshedpur also will be connected by June. So maybe for certain that by December, except for West Bengal portion, the entire Urja Ganga will be commissioned. And this West Bengal also, we expect to commission by June '23.

This is Kirtan Mehta from BOB Capital Markets. Could you share the current status of the Bangalore leg of Kochi pipeline? There has been some resistance from the farmer side in terms of developing it. So is there any development where the new route has been found?

See, as you rightly said, we have reached from the Kerala side up to Coimbatore in the Tamil Nadu. So that part of 48 kilometers is done. Similarly, from Bangalore, we have reached up to Krishnagiri, but they are again 30 kilometers we are laid. So now we are trying to reach from both the sides, slowly, slowly. But as you are rightly -- they are 180 or 190 kilometers in between where it covers part of Krishnagiri, Dharmapuri then Salem and Tiruppur. These 4 districts are there where it is -- the issue is there about the resistance by the farmers. So we are working with the industry department of Tamil Nadu Government and one alternate route was found out and survey was being done on that route. And broadly, we have worked out around 50% on that survey. But then there were some issues. Still some farmers wanted some more changes. So again, second meeting took place with the industry Ministry in the Tamil Nadu. And now we are further working whether some possibility of -- along the highways can be worked out for certain part of the pipeline. So that is being worked out. It is yet to be finalized.

Right, sir. One more question on the fertilizer side. Would you be able to sort of run us through the current status of offtake from the different -- 6 fertilizer plants?

See, Matix Fertilisers is taking full quantity. Ramagundam Fertilizer is taking full quantity. Gorakhpur plant has also started this month taking full quantity. And the Barauni & Sindri are just taking commissioning gas small and sixth one is which one -- [Foreign Language] Urja Ganga [Foreign Language] sixth one which we are talking. One, maybe the KKMBPL, that is also already working on full capacity.

Maybe -- shall we take this as a last question?

This is Nitin from Yes Securities. Sir, my question is related to the geopolitical situation that's spanning out between Russia and European Union. So EU is basically saying that they want to reduce their dependence on Russian gas moving ahead. So does that open up opportunities for us as a country to import more? And do we have the supply chain aligned to import more gas from Russia? And does our Gazprom contract has the flexibility to import more? Or like -- so what are your thoughts on that? And what are we planning with respect to that?

Yes. From the geography, you see the directly bringing from Russia is a long distance, that is one part. Secondly, the Gazprom contract is a long-term contract, which is a portfolio contract. So there is the flexibility they can buy from Russia, also, they can buy from Cameron or other countries also. So that way, we are able to manage that portfolio contract that if suppose one area or other has got some problem or some opportunity either way, then those can be brought into the long-term contract. Similarly, for the spot cargoes, we float the tenders. So any trader or as well as any player can participate and he might bring from anywhere. So from that perspective, whatever cheap gas we have available, we are ready to take that.

But is there a possibility like on the lines of crude oil import, where we are evaluating probably cheaper import of crude oil from Russia. Is there a possibility of cheaper import of gas as well? I mean do we have any such conversations going on?

As on date, there is nothing substantial in there.

Now I request [indiscernible] to give Board a thanks.

Good evening, everyone. I am [indiscernible], Associate Director of Research for UBS Securities in India. It has been an honor for us to be a part of this insightful analysts meet. On behalf of GAIL India Limited and UBS Securities, I would like to extend my heartfelt gratitude to Shri Manoj Jain ji, Shri R. K. Jain ji and heads of the various departments, who have handled the event throughout. Finally, I would like to thank all the analysts, investors and experts for being present here and helped us make this event a grand success. Thank you, one and all.

Thank you, everyone. I would request everyone to join for a tea with us. Thank you.

Thank you.