HLE Glascoat Limited (522215) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Q2 and H1 FY '25 Earnings Conference Call of HLE Glascoat Limited.[Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Ronak Jain from Orient Capital. Thank you, and over to you, sir.

Hi, good afternoon, everyone. Welcome to the Q2 and H1 FY '25 Earnings Conference Call of HLE Glascoat Limited. Today on this call, we have Mr. Himanshu Patel, Managing Director; and Mr. Aalap Patel, Executive Director, along with the other senior management team. This conference call may contain forward looking statements around the company, which are based on beliefs, opinions and expectations as of today. Actual results may differ materially. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. A detailed safe harbor statement is given on Page #2 of the company's investor presentation which has been uploaded on the stock exchange as well as the company's website. With this, I hand over the call to Mr. Himanshu Patel for his opening remarks. Over to you, sir.

Thank you. Good afternoon, and warm welcome to all the participants. Thank you for joining us today to discuss HLE Glascoat Q2 and H1 financial year '25 financials and operational performance. Today, on the call, we have Mr. Aalap Patel, Executive Director; Mr. Naveen Kandpal, CFO, and Mr. Nilesh Ganjwala, senior adviser to the company and Orient Capital, our Investor Relations partner. I hope everyone has had an opportunity to go through our financial results and investor presentation, which has been uploaded on the stock exchange as well as on the company's website. The current global environment continues to pose challenges with evolving dynamics, including the regulatory changes, geopolitical tensions and commodity price fluctuations. Despite these headwinds, I am pleased to report that HLE Glascoat has delivered a strong performance across key metrics, revenue, operational efficiency, profitability and a significant uptick in our order book. While we have faced a few challenging quarters, our focus on strategic initiatives has allowed us to stay resilient and position ourselves for long-term growth. These include acquisition and expansion. Our acquisition of Kinam Engineering Industries has been transformative. As a leading manufacturer of heat exchangers and pressure vessels, Kinam's integration is progressing well with the third phase of integration underway. We have received stock exchange approval for scheme of amalgamation of Kinam Enterprise Private Limited with HLE Glascoat Limited and are now in the process of filing the application with NCLT. The synergies are evident as demonstrated by a recent order win in the oil and gas sector, further unlocking opportunities in newer segments like paints, petrochemicals and [ Moss ]. Launch of Thaletec products. Our innovative Thaletec range has gained strong acceptance in the domestic market. This quarter, we have seen encouraging order inflow. We believe this product line will continue to drive growth in India, contributing significantly to our overall performance in the coming quarters. Clean Energy investments. We are excited to announce the joint venture with CleanMax Enviro Energy Private Limited by acquisition of 26% stake in Clean Max Anchorage Private Limited for a total investment up to INR 3.36 crores. CleanMax Anchorage Private Limited will develop a captive solar and wind power facility in Gujarat with a solar capacity of 2.31 MWP and a wind capacity of 3.30 MW. Order book and business outlook. As of September 2024, our consolidated order book stands at a robust INR 602 crores, representing sequential growth of 27%. While the chemical sector remains under pressure, we have observed turnaround in order booking and pricing this quarter. The order book now provides visibility for the next 8 months in our international business and 5 months in the domestic market. We are also witnessing renewed momentum in our filtration, drying and equipment segment, particularly in the Southern region, driven by a revival in the pharmaceutical sector. Meanwhile, our glass-lined equipment business continues to deliver exceptional results, outperforming last year's performance. Looking ahead, we remain cautiously optimistic about the coming quarters with a promising pipeline of opportunities across both domestic and international markets. I will now hand over the call to our CFO, Mr. Naveen Kandpal, who will take you through the financial performance for the quarter and the half year. Thank you, and over to you, Naveen.

Thank you, sir. Good afternoon to all the participants. I am pleased to share our financial results for the quarter and half year ended September 30, 2024. The company reported consolidated revenue from operations of approximately INR 236 crores with a growth of 5% compared to Q2 FY '24. EBITDA of INR 35.4 crores, witnessing a growth of 19% year-on-year from Q2 FY '25 and with an EBITDA margin of 15% and PAT of around INR 14 crores, a 33% year-on-year jump in correspondence to Q2 FY '24 [indiscernible] and a PAT margin of 6.1%. On a sequential basis, we achieved a revenue growth of 3.8%, up from INR 227 crores and a 50% increase in EBITDA and a significant 166.1% growth in PAT. For the half year ended, our revenue grew by approximately 10%, rising from INR 422 crores to INR 463 crores. Our EBITDA grew 10% year-on-year and margin stood at 12.8%. In Q2 FY '25, our filtration, drying and other segment -- other equipment segment degrew by 36% compared to Q2 FY '24. We reported a revenue of INR 65 crores in comparison to INR 100 crores in the corresponding quarter. Likewise, in H1 FY '25, our revenue dropped by 20% in this segment. Although we degrew in this segment, we were able to maintain the double-digit margin at 11%. Meanwhile, our glass line equipment business generated about INR 144 crores of sales compared to around INR 122 crores last year, reflecting a growth of 18.4% with an EBITDA of INR 20 crores, growing by 124% in comparison to Q2 FY '24. Sequentially, our revenue and EBIT grew by 8.4% and to 124% in comparison to Q1 FY '25 with a margin of 13.4% in Q2 FY '25. Our new segment, heat transfer equipment showed a revenue growth of 17%, contributing INR 25 crores to our sales, up from INR 21 crores in Q1 FY '25. Talking on the debt, we are pleased to announce that we are on the track to reduce debt, and we have repaid debt of INR 35 crores. Our strong performance is all on the back of the improved receivables and better working capital management, which has aided us in improving our operating cash flow. In summary, despite challenges in some segments, our diversified portfolio, strategic focus and disciplined financial management has positioned us well for sustained growth. Now I would request the moderator to kindly open the floor for questions and answers. Thank you.

[Operator Instructions] Our first question comes from Rajesh Vadera from Niveshaay Investment Advisors. Please go ahead.

So my first question is what is average selling price of glass line equipment as compared to other competitors? And the second question is what would be total addressable market for dryers and glass line equipment? And what is share of HLE glass coating in that market?

Good afternoon. So the average selling price of our glass line reactor is a function of a lot of different things, so size, configuration, et cetera. So for a typical reactor that a customer would configure and send us an RFQ for, we would be competing on similar price levels amongst the A category suppliers, let's say. However, our push is constantly to include better technologies, especially now that we have access to technologies from Thaletec to create a differentiated product, which will have obviously a higher selling price. As far as the total addressable market for glass line and filtration and drying goes, I think currently, the market for glass line equipment is around the INR 1,000 crore mark and HLE has somewhere around 25% to 30% of that market. This is obviously the Indian market that I'm speaking about. For filtration and drying, I think the market size is similar, a little bit lower perhaps. And then HLE again has more than 50% of the market of the filtration and drying segment as well. The total addressable market, however, for filtration and drying could potentially be much larger because we believe there are still a lot of users in the chemical and pharma space who don't use modern filtration and drying equipment. So they still use traditional equipment and the markets where HLE is present -- rather, sorry, the product HLE is present, so which is Nutsche filters and vacuum dryers, which are considered the newer state-of-the-art equipment, they are still penetrated largely maybe, let's say, in the top 20%, 25% of the users. So there's still a substantial user base who do not use these advanced equipment, and we would still consider them a part of the addressable market because as they grow and as they modernize, they would adopt the kind of filtration and drying equipment that HLE manufacture.

Okay. And what would be monetary terms of selling price on an average of that?

Again, it would be very difficult to give you a single number, but I think if I were to put an average selling price, maybe something in the INR 20 lakh mark would be the average price of our glass and equipment. Again, it's a very general number. We manufacture a very wide range in terms of sizes and configurations.

Okay. And I have one more question. What is current backlog within the order book? And what is the typical time line to fulfill these orders?

I'm sorry, could you please repeat your question?

Am I audible?

Yes, Audible. Can you please repeat the question?

So what is the current backlog within the order book? And what is the time line for fulfilling these orders?

Yes. So current order backlog is around 16 -- sorry, INR 600 crores. And for India business, it could be around 5 months. And for international business, it would be around 8 months.

Okay. And also, I had one more question. Could you please break down your CapEx allocation for upcoming year?

For upcoming year, as such, no CapEx project is planned. We will stick to the replacement CapEx only.

The next question comes from Vibhav Khandelwal from Laburnum Capital. Please go ahead.

I wanted to ask you and please tell us if the uptick that we're seeing in the GLE segment, is it attributable to more of the chemical industry or the pharma industry? And or is it -- and also on the India and international flavors, it will be helpful if you could give some color on the cycle that we're seeing on the chemical front -- chemical side since we were seeing some headwinds over the past quarters.

Yes. So the uptick at least in this quarter has been predominantly driven by pharma orders in the glass-lined equipment business. While this is true for the consolidated number, I think the drivers for growth for the India business were, let's say, an equal mix of chemical and pharma. whereas for the international business, the uptick was predominantly driven by our pharma orders. As far as the overall development in the industry is concerned, we are seeing that pharma is showing a stronger growth, and we are seeing more interest from our pharma customers than we are seeing from the chemical. So while we are seeing some projects and inquiry pipeline building up in the chemical space, they are yet to convert into orders. However, in the pharma space, we are both seeing strong inquiries and also order placement.

All right. This is helpful. Also, in the GLE segment, can you please give us a sense of what the sustainable EBITDA margins typically are? And why are we seeing some delta between us and GMM.

I think the sustainable EBITDA margins in the GLE business range between 17% and 20% in the longer term. The current margins are reflective of the slight downtick in the order book over the last few quarters. But I think in the longer run, we believe that the sustainable EBITDA margin should be in the 17% to 20% range.

All right. And can you please give some flavor on why are the margins that we're seeing, not, let's say, for this quarter or even the past quarter, but let's say, on a more overall level on the differential between our GLE margins versus that of GMM Pfaudler?

So in all honesty, we don't know what our GMM margins are on the pure GLE business because I believe they are not publicly reported.

And one more question, sir, was, do we have a presence in China in terms of our equipment? If yes, it will be helpful if you could give us some flavor on the competitive standing given that there's a lot of talk about incremental capacity coming in China, especially with the BASF capacity coming there. Additionally, if you could give us some flavor as to why a customer would choose us versus a local Chinese supplier for the equipment?

Yes. So the answer to your first question is that we don't currently have a presence in China. Neither do we have a manufacturing plant there nor do we sell any material quantity of our products there. I think the answer to the second question, which is what is the differentiating factor for HLE products. I think both in the glass line and the filtration and drying space, over the last many, many years, we have strived to position ourselves as a solution provider rather than an equipment manufacturer. Now I know this is -- this sounds like a fairly cliched line, but if you really look at how our filter dryer business has evolved, it has evolved from making filter dryers for our own captive consumption maybe 30 years back, right? And that's how the filter dryer business started, and we have continued to add features and innovate based on customer needs. And we have made a name in the market as people who would solve problems and innovate and give solutions to chemical engineering problems in general. And while this gave us a lot of success in the filtration and drying business, similar efforts were also made by Thaletec in the European market. So we are also now able to infuse the same DNA into our global glass lining business.

Understood. But sir, my question was more on the China flavor. So I wanted to ask, given that there's a lot of talk about and of incremental capacity, especially in chemicals coming in China, especially with the BASF setting up a 10 billion capacity there. So do we have any plans to set up in China or service those suppliers, service those capacity?

No. We don't have...

On the Chinese market dynamics...

So we don't have a plan to venture into the Chinese market. Predominantly, the Chinese glass line equipment market, especially, so while this is true for the entire process equipment market, but [indiscernible] this especially true for glass line equipment. So it's a very, very fragmented market. with something like 20, 30 different players within the Chinese glass and equipment market, all manufacturing a wide range of equipment and also sourcing from some vendors and not always manufacturing everything themselves. I think it's a very different dynamic. And it's also a very, very crowded market. So for us to make efforts to make any inroads into China is not a priority at the moment.

[Operator Instructions] The next question comes from Anupam Gupta from IIFL Securities.

So the first question is basically on the Thaletec business. So if I, let's say, do the consolidated less stand-alone in terms of numbers and also remove Kinam from it, I'm probably looking at Thaletec doing close to about sort of INR 95 crores, INR 100 crores sort of revenue with high sort of 19%, 20% margin. Is that the right assumption there?

Yes, -- that is correct. That is correct.

So basically, Thaletec margins have improved pretty significantly, whereas India margins have continued to be very weak, right? That's the right way to look at it?

That would be correct for the India glass line business. That's correct.

Okay. So what is driving the improvement in the Thaletec margins?

So the improvement in the Thaletec margin is predominantly driven, if you have also observed by the uptick in the volume. So the revenue has increased. Also -- and it is also a function of the product mix. So we had quite a bit of customized differentiated products, which were a part of a product order, which were sold in this quarter. So it's a function of the product mix as well as the uptick in the volumes.

Okay. So let's say, assuming if that was a sort of large one-off order, what would be a sustainable number for Thaletec in terms of revenue for this year and margins possibly.

So over the last 2 quarters, Thaletec has consistently done revenues in excess of INR 90 crores in Indian rupee terms. We believe that this trend will broadly be sustained. The margins, as we believe on a long-term sustainable basis will be in between the 15% to 17% range for Thaletec for Thaletec stand-alone.

Okay. And you talked about a few products of Thaletec being sold in India and you're adopting their technology and products for sale into India and possibly for exports. Can you just talk about that in a bit more detail?

Yes. So we launched the Thaletec range of solutions in India about 2 quarters ago. And over the last 2 quarters, we have made a significant effort in promoting these products as well as we have generated not just a strong interest in terms of order pipeline, but also we have now close to 25-odd equipment, which are either sold or currently under different stages of execution. So we believe that this is a great start for a high-technology value-added product, especially given the current market conditions. So we are happy with the progress, and it's hopefully doing better than our expectation.

And in terms of when you compare them to what is already available in India or from competitors, what are the extra features which you get with Thaletec, which is not available right now in India?

So I think we should look at this in 2 different ways. It's not just about what is the -- so quality, I will say quality is not the differentiator for Thaletec. I think when it comes to quality, we really believe that having great quality is a matter of hygiene. Having great quality doesn't -- is not a differentiator, right? So when we look at Thaletec, I think you should look at it in 2 different ways. One is what is available with Thaletec that others probably don't have. And the other aspect is how do you -- using whatever technologies you have, how do you create a great solution for a customer that comes at the right price and deliver the right value. So all the Thaletec range of products are -- especially the ones that we have brought to India in the initial phases are ones that tackle key problems with [indiscernible] reactors, right? And these are around the efficiency of mixing, these revolve around heat transfer, these revolve around reliability, especially when you talk about very nasty, aggressive or dangerous processes. So whatever value Thaletec products bring, they directly help the customer improve their reaction times, decrease downtime. And as a result, they help the customer in their overall cost of product..

And one last question. What is the share of exports from India business as of now?

So the share of export would be somewhere in the 5% -- somewhere between 3% to 5% range. I think it varies from quarter-to-quarter. That's really the range.

[Operator Instructions] The next question comes from Miraj from Arihant Capital. Please go ahead.

Congratulations on a decent set of results, sir. There is obviously a turnaround. Sir, I have a couple of questions. Firstly, starting with the Kinam part. I wanted to understand the two parts, sir, over here. First is the operational efficiency that has been driven till now, and what more do you expect in that. And second is the cross-selling opportunities. You briefly, previously also spoken about it, but I want to understand how the progress is over here. In the previous concalls, you have highlighted, but I wanted to understand how things are moving and how long do we think that the cross-selling will take to fully operationalized. That's my first question.

On the operational side, Kinam continues to be growing at an overall level, both in terms of the order book as well as the capacity to handle larger orders. Very interestingly, in the last quarter, Kinam for the first time has made a breakthrough into the oil and gas industry, and we believe that, that could be a path breaker for the future and could really change the entire trajectory for Kinam going forward. So that's something that's already happened, and we are all quite excited about that. With respect to cross-selling opportunities, just like we were able to integrate our glass lined equipment business with the filtration and drying business. We believe the heat exchanger business is a very logical extension of the process equipment required by most of our user industries, and we are actively pursuing opportunities which enable us to kind of pitch for business at the project level rather than at the equipment level.

Understood. So beyond oil and gas, oil and gas is something that we went through this quarter, right? But beyond that, also petrochemicals and paints is something that we've already completed or we are still planning that?

No. That's something that is still a work in progress. No, that is not an area where integration is completed, no. So the answer to that is we will probably approach that over the coming quarters.

Understood. Perfect. Okay. So something more to look forward to. Understood. Sir, with the captive solar and wind power facilities, I think we've announced the deal with CleanMax. Roughly, could you guide how much cost savings are you expecting from here? And are we planning for any more deployment of such solar facilities in other plants?

Yes. Thank you for the question. So as briefed by Himanshu Bhai, we have entered into a joint venture agreement with one of the company, CleanMax Enviro Private Limited. So as of now, since the terms and conditions are governed by NDA, we would not be able to disclose much detail. But as you may be aware, that the payback period for such kind of projects is quite short. So in our case also, the payback period is short.

Understood. So the payback period would be close to two years or shorter than that?

It is expected to be in that range. Yes, that's correct.

Understood. And so just one more question before I get back in the queue. For THALETEC products that were from Germany, if I were to look at how these were indoctrinated these in our Indian product range. How have we included that? Has the transition done completely 100%, or are there still some products that we plan to introduce going ahead, which are of THALETEC Germany and India.

Yes. So THALETEC, by virtue of being a very innovative company, has a fairly large, I would say, range of innovations available, right? And as a start, we are only introducing -- or rather we have only introduced in India innovations that we feel that the Indian market immediately needs, and things that would bring the most value to the customer. So while THALETEC continues to innovate, and we continue to launch new products, we already have an existing bank of innovations, which are still available with us in the German entity, which we can continue to bring to India for the next few years.

So just to understand it, there are some products still left to be inducted in the Indian market right?

Yes. Many.

[Operator Instructions] The next question comes from Rajeev from RJ Investments.

Yes. So my first question is, the U.S. order market book, currently is growing at a healthy pace. Now it stands at around $11 million from the $7 million. So, my question is, how do you further plans to further penetrate this market? And what are the key challenges do you foresee in scaling up the operations with now the new government formation?

So first, I'm not sure where the order book number comes from. I think the order book, while it is in that range, I think the exact number is not EUR 11 million. Because while we continue to book orders as well as dispatch the ones that we booked a quarter or two ago. Having said that, I think for the U.S., we have a great opportunity. I think regardless of the political situation in the U.S., I think manufacturing continues to, especially for pharma products, continues to move to the U.S. And when these high-end molecules move to the U.S., I think high-end equipment is also needed. And that is with our THALETEC range of products and with our filter dryers, that is right up our alley. So we have innovative solutions which can help these companies deploy these molecules or rather bring these molecules to the market quickly. So we are well equipped to handle this opportunity. And I think we also have the advantage of starting with a relatively low base. So we are fairly new in the U.S. market, and we are confident that with our great service and innovate products, we'll be able to make inroads fairly quickly.

Okay, so my next question is, the filtration and the drying business that seems to be facing some headwinds recently. So sir, could you provide some insights into what is the current state of the segments right now we could see some traction in pharma especially?

Yes, I think you are absolutely right. There has been some slack in the order booking a few quarters back. Fortunately, as Himanshu Bhai mentioned earlier, we are seeing a good uptake and encouraging demand coming in from the pharma industry, and especially during the recent quarters. And this is reflected in a more healthier order book for the filtration dying equipment currently. These orders will get executed over the next two or three quarters, and I would think that the numbers for these coming quarters will reflect the uptake in the order book that we currently have. So yes, the last couple of quarters have been maybe a little slow by our own standards, but we believe we'll catch up over the next few quarters.

Sir, my another question is, what are the current margins in this business? And so going forward, what do you consider as a sustainable margin? If you could provide us some color on this?

So I think the filtration and drying business has historically reflected margins on the long-term basis of over 15% to 17%. We believe that sustainable margins are in the 16% to 18% range, even with the current economics and dynamics. Yes.

So my last question is, sir, could you provide me the current market share we are holding in this segment?

There are no published numbers on the overall market, but we believe our market share would be between 50% to 60% in the domestic market.

The next question comes from Arnav Sachdev, Individual Investor.

Sir, congratulations on the result. I just had one question. The net interest has decreased by 9.4% year-on-year, and the pre-provisioning operating profit is also down. So what are the strategies that we're implementing, you know, to get back from this trend?

Can I please request you to repeat the question, please?

Yes, Sure. So the net interest has decreased by about 9.4% year-on-year, and the pre-provisioning operating profit also has, you know, reduced. So any strategies that we're implementing to reverse this trend?

So I think the interest reduction has been on a quarter-to-quarter basis. On a quarter-on-quarter basis, the interest has reduced predominantly due to retirement of debt, repayment of debt, as again, I think Himanshu Bhai, mentioned earlier, we are consciously downsizing our debt position. We've repaid almost about INR 35 crores of bank loans during this period. So that is a conscious effort that is being made. And this repayment is predominantly happening out of operating and working capital efficiencies. This is really what we are consciously making an attempt towards.

[Operator Instructions] The next question comes from Dinesh Niak from Fine Advisor.

I had a couple of questions. First, could you provide more clarity on industry-wise revenue breakup? We've observed some volatility in revenue contributions. We've seen a 50-50 split usually between chemicals, pharma. But with traction in pharma and diversification into new sectors. I just wanted to understand how will you see this mix evolving over the next three to five years?

I think historically, if you have seen, there is always a change on a quarter-to-quarter basis based on the order book and of course, the relative purchasing by the relevant industry segments. Historically, pharma has ranged from a low of 35% to a higher of almost 60% in our overall revenues. We believe that, that end will be retained and will of course, it's a pretty wide range, but it will be within that range is what we expect. We are currently, based on historical order book, our Pharma share is at the lower range. And as we indicated earlier, the pharma share in the overall revenue is expected to only go higher as we go into the next few quarters. Correspondingly, the share of agrochemicals and fine chemicals is likely to reduce somewhat as a percentage of aggregate revenue.

Okay, got it. And let me commend you on reducing your debt by INR 35 crores. If I remember correctly, in your FY '24 transcript, you had mentioned that your goal for the whole of FY '25 was to reduce your debt in this range, but I think we've achieved that in the first half only. So what is the target for the year-end, sir? Where do we see your debt at the end of the year?

I think to answer it very simplistically, we did INR 35 crores in half a year. So I would assume we should double it for the entire year.

Okay, sir. And so your projected interest costs and repayment schedule for the next fiscal year end, so should we expect your profitability and cash flows to now improve given the lower interest outlay?

Yes, the lower interest will definitely result in better cash flows. So better cash flows, at least from a profitability perspective, yes. Of course, some of those cash flows will go into retiring the debt itself. So on an overall basis, we believe the numbers will look better and the repayments will happen from operating and profit efficiencies.

Great to know. And finally, last question largely around your service segment. So I think one of our key peer is already establishing a strong presence in the service segment. So how do we, as a company, plan to differentiate ourselves if we decide to formally enter that space. So what's our distribution of USP in this service segment?

I'm not entirely sure what service sector really implies. So can I request you to just shed more light on what you would categorize as service sector?

So we're already offering service components as a service. So largely on that front only, what are USPs and how do we want to scale this vertical further?

So service has inherently been a strength for HLE. We believe in being close to the customer and ensuring that the customer gets maximum value out of the equipment. And that could come out of either addressing issues when there is downtime, or it could be providing service for optimization so on and so forth. So not only do we look at service from the point of view of after sales support, but it's also an opportunity to increase the productivity of the equipment itself. So while service has -- so strictly speaking, service in the traditional sense, it constitutes between 5% and 7% of our, or maybe roughly, let's say, closer to 7% of our sales. I think a lot of our new products also serve the same purpose of optimizing the customer's equipment after they are sold. So we introduce new products in the automation space. We have introduced automated ANFDs. Now there can also be retrofit packages of these automation, and this really helps drive productivity for the customer. Even if you look at THALETEC Solutions, so we are also offering retrofit packages of THALETEC Solutions. So these are also a part of that service orientation. So that's our take on service. And while strictly the after sales support forms about 7%, I think a lot of our new products are geared towards enhancing our engagement with the customer through service and optimization.

Great, then where do you see this overall revenue mix from the current 7% in the upcoming years now?

I think as Aalap bhai was explaining, our service business is of two elements. One is pure service, which is more in the nature of after sales service and so on, which is currently at 7% and may probably at the optimal level go up to 10%. But we also have another element of service, which is in terms of product upgradation and automation, which are also being delivered as packages, but which are reflected in the equipment business itself because they go as products rather than as service. But it does form part of the service element as far as our customers are concerned.

As there are no further questions. I would now like to hand the conference over to the management for closing comments. As there are no further questions. I now hand the conference over to the management for closing comments.

Yes. Thank you all the participants for your keen interest in the company and taking part in this Investor Conference Call for Q2 and H1 FY'25. Once again, I express my sincere gratitude on behalf of the entire team of HLE Glascoat Limited.

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