Kalpataru Projects International Limited (KPIL) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen. Welcome to the Kalpataru Power Transmission Limited Q2 FY '21 Earnings Conference Call, hosted by DAM Capital Securities Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Ms. Bhoomika Nair from DAM Capital Securities Limited. Thank you, and over to you, ma'am.

Thanks, Lisanne. Good morning, everyone. Welcome to the Q2 FY '21 Earnings Call of Kalpataru Power and JMC Projects. We have the management today being represented by Mr. Mofatraj Munot, Chairman, KPTL; Mr. Manish Mohnot, Managing Director and CEO; Mr. Ram Patodia, President, Finance and CFO; Mr. S.K. Tripathi, Deputy Managing Director and CEO, JMC Projects; and Mr. Vardhan Dharkar, Director Finance and CFO, JMC Projects. I'll now hand over the call to the management for their opening remarks. Over to you, sir.

Thank you, Bhoomika. This is Manish Mohnot here. Good morning, everyone. I trust all of you are safe and healthy. I'm thankful to you for your continued interest in attending this earnings call of KPTL and JMC. I will quickly share an update on our business operations and strategic initiatives before I move in to the details of our financial performance for Q2 '21. KPTL and JMC's business operations witnessed significant improvement compared to Q1 '21. Our construction activities, labor availability, supply chains reached almost pre-COVID levels at the end of September 2020. All of our sites are fully operational with productivity levels over 90% across most of the sites. However, extended monsoon, social distancing norms and other COVID-related guidelines, to some extent, limited our performance in Q2 '21. We expect site operations to further improve in Q3 '21. We have also achieved good progress on sale of T&D assets. We have completed the sale of Jhajjar transmission assets and have received all cash proceeds in Q2 '21. We have received all approvals for transfer of Alipurduar transmission assets and expect to complete this deal and receive the sale proceeds in November itself. All physical works of Kohima-Mariani transmission assets are complete, and we expect full commissioning to happen in the next few days. We expect to close sale of all T&D assets in '21, subject to requisite approvals. In JMC, we have made good progress on restructuring of 2 of our road BOOT assets. We expect positive outcome on those assets in the second half of '21. We believe these steps will significantly help us to unlock capital and reinvest in future growth and profitability. Getting into more details on our performance, first at stand-alone level. At KPTL, revenue growth was impacted due to lingering effects of COVID, and our revenue was INR 1,882 crores in Q2 '21 and INR 3,341 crores in half 1 of '21. In Q2 '21, our T&D business declined by 5%. Oil and gas business improved by 13%, and railways business declined by 25%. Our subsidiary, Linjemontage, reported a revenue growth of over 48% to INR 209 crores in Q2. As guided earlier, we continue to target revenue growth of 5% to 10% for full year '21 on stand-alone and consolidated basis. Our EBITDA margin was 10.7% for both Q2 and half 1, reflecting our focus on profitable execution. Our PBT grew by 25% to INR 201 crores in Q2 '21 on account of healthy EBITDA and gain on sale of Jhajjar transmission assets. Our PBT margin was 10.7% in Q2 '21. Our PAT also improved by 25% to INR 159 crores in Q2 '21 with a margin of 8.4%. Our net borrowing at the end of September 2020 declined to INR 818 crores. We were successful in bringing down our finance cost as a percentage of sales to below 1.2% in Q2 '21 and 1.7% in half 1 '21 compared to 2% in financial year '20. Our order book as on 30th September is at INR 12,292 crores. This is excluding the new orders of INR 668 crores received in Q3 and declared yesterday. Incrementally, we have L1 position of approx INR 2,400 crores as on date. The L1 order book is a right mix across various segments, with 25% coming out of railways, 25% pipeline and the balance 50% in T&D. Our order intake plus L1 is over INR 5,600 crores till date in current financial year against our guidance of INR 9,000 crores to INR 10,000 crores for full year '21. At JMC, revenue for Q2 was INR 804 crores and INR 1,274 crores in half 1 '20. Our decline in revenue was due to pandemic and extended monsoons. However, we remain confident to scale up our execution and deliver positive growth for full year '21. Lower turnover and non-recovery of cost has affected profitability in JMC, and our core EBITDA margin was 9.1% in Q2 and 7.9% in half 1. We remain confident of having annualized EBITDA margins in the range of 10% to 11% as guided earlier for JMC. Our net debt was INR 810 crores at the end of September 2020 at JMC. And as per our guidance, we'll maintain debt at around INR 800 crores for financial year '21. At JMC, we witnessed strong traction in order inflows and order book has reached all-time high of INR 14,227 crores at the end of September 2020. Our order inflow till date is INR 6,026 crores in the current year, largely driven by commercial B&F and water projects. Additionally, we have L1 position of around INR 400 crores. Our road BOT assets witnessed improvement in traffic post relaxation on movement of people and vehicles due to COVID. And our average daily revenue was INR 52.4 lakhs per day in second quarter as compared to INR 47.5 lakhs per day achieved in Q2 '20 and INR 36.6 lakhs achieved in Q1 '21. So Q1 '21 to Q2 '21 there has been a significant improvement. At consolidated level, KPTL consolidated revenue was INR 3,032 crores in Q2 '21. Our consol core EBITDA is INR 380 crores, with a margin of 12.5% in Q2 '21. And our PAT is at INR 139 crores in Q2 '21. Our consol order book is at INR 26,500 crores as on 30th September. But if we include the L1s and orders received after that, we have a visibility of around INR 30,000 crores as of today. YTD financial year '21 order inflows at consol level are around INR 9,200 crores. Additionally, we have L1 position of around INR 2,800 crores. We have good visibility across all our major businesses and are confident to deliver on our growth targets going forward. At Shree Shubham, revenue grew by 21% in Q2 '21 to INR 41 crores on account of higher utilization of warehousing space, and our EBITDA for Q2 was INR 19 crores with a margin of 46%. As indicated earlier, Shubham is back into good profitability and the PAT is INR 8 crores in Q2 '21. We expect Shubham to continue delivering similar results, if not better. I would now like to invite our Chairman, Mr. Mofatraj Munot, to provide update on the group's real estate business and some of the major initiatives taken. Post that, we can take your questions. Thank you once again. Chairman, sir?

Good morning, friends. I'm sure all of you are appraised of the developments of KPTL and JMC and their subsidiaries. We have been receiving a few calls from investors on market -- reality of the real estate of Kalpataru Limited business and our strategy to reduce the pledge of KPTL shares. The real estate business has seen some unprecedented challenges in last 5 years, driven by regulations and the market scenario. But we have seen things improving and there has been a good demand in MMR on residential real estate driven by liquidity, reducing interest rates and reduced stamp duty. Our sales have also improved with sales touching to INR 700 crores for the last 3 months. Majority of our debt of 80% in real estate corresponds to working capital, that is construction finance for ongoing projects and the lease rental discounting of completed commercial assets. We are confident of servicing the debt and that gradually reducing the same in the next 1 to 3 years, depending on the life cycle of the project. We have also started divesting some of our assets, including commercial properties, which will also help us to reduce the debt. In October '19, exactly a year back, our outstanding borrowing against pledged shares was INR 832 crores, which has been brought down by INR 111 crores to INR 721 crores in October 2020. We have concrete plans to reduce this further by about INR 150 crores between January to March 2021 and by another INR 150 crores by December 2021. I'm happy to have individual discussions with key investors on this matter, which can be coordinated with Kunal Jain. Wish you happy Diwali and the prosperous New Year. Thank you very much. Thank you.

Thank you, sir.

Should we open up for questions?

Yes, please.

[Operator Instructions] We'll take the first question from the line of Renu Baid from IIFL.

Congratulations for strong results. I would like to thank you for giving -- for the Chairman, sir, to come and give the brief on the group initiatives and the pledge. It's been a much awaited clarification required on that side. Sir, coming back on the core business, the first question would be to understand the ordering momentum? You did share strong ordering for pipeline. Somehow, the pace of order finalization in the core T&D and rail business has been fairly soft. So how should we look at the inflows for the current year? And to what extent in your view it can have an impending impact on the growth momentum in financial '22-'23 for us?

So Renu, specifically, we can answer the -- I would like to divide this question into the specific segments we are in. T&D domestic, yes, the last 6 months we've not seen a lot of tenders. But while we speak in the next 1 month, there are BOT tenders of more than INR 10,000 crores being bid, and it could in the range of INR 14,000 crores to INR 15,000 crores being bid by a lot of developers. We have also been shortlisted by PGCIL on a lot of projects where we've been bidding with them on an EPC basis. So my own assessment is between now and December end, you'll see huge traction of order inflows coming on T&D domestic, either from PGCIL or the private sector developers. And now the state transmission bids have also started. So yes, first 6 months T&D was not as good. But our own assessment is that we've targeted an order inflow of around INR 2,000-plus crores on T&D in the current year, and that would be achievable in this limited time frame of 4 to 5 months. As far as transmission international is concerned, we started seeing a lot of traction in some markets. So Middle East, we're seeing a lot of traction. We're seeing a lot of traction in the entire Norway, Swedish [ pack ] market. We're seeing some traction in CIS and some in Africa. And if you see a significant portion of our order book growth in the last 6 months has come from international only. Actually, we're -- closer to 90% of our orders received has been from international division, and we see that to continue. We have good visibility of L1 there. And that's an area where we believe we will be achieving more than our targeted inflow target of around INR 4,000 crores for the current year. We will be doing more than INR 4,000 crores in international business in the current year in order inflow. As far as oil and gas and railways are concerned, yes, there was some delay during COVID time, but now the tenders have started, and we are L1 in -- oil and gas and Railways put together we're L1 in around INR 1,200 crores plus projects, and we expect those LOIs to come in the next few weeks itself. And again, all the traction has started, all bids on EPC projects, core EPC, electrification, civil, a lot of that has started. As we -- while we speak on railways and oil and gas, we have around INR 4,000 crores of tenders submitted, which will be opened up in the next few weeks. So from that perspective, well, there's a delay, right? But it's not going to have a long-term impact. Yes, current year. That's why we have scaled down our revenue growth to, let's say, closer to 5% at a stand-alone level. But going forward, from a visibility -- revenue visibility as well as order book visibility, we should be able to achieve INR 9,000 crores to INR 10,000 crores what we are targeting.

Sure, which is positive, sir. The second would be on the interest expenses, especially in this quarter, it's been a sharp reduction despite the gross debt or the net debt level being slightly similar, even if the debt would have increased towards the end of the quarter. So can you help us share some insights in terms of the mix of the debt that we have on books and the key drivers for this sharp reduction in the interest, especially on a Q-o-Q basis?

So the first key driver is our focus on making sure that capital employed and debt is always very low. And you'll see that in Kalpataru for the last 5, 6, 7 years, if not always, okay? So that's the first key driver. Added to that is the reduction in interest rates across the board, whether it was on CP, whether it was on borrowings, all of that. Third component about our borrowings and how much of it is domestic and how much of it is international. So approximately 20% to 25% of our borrowing would be in short-term PCFC loans, 60, 90, 180 days, and that's also helped us in some form. And that's always there. It used to be at 15%, 20%. Now we're at 20%, 25% because the volatility in FX was so high. So this was a better form of hedging ourselves. We expect interest rates to be in the range of what we have targeted 1.5% to 1.7%, excluding the cash inflows, which we're expecting out of sale of BOOT assets. Once those come in, obviously, this would come down further. And as I said earlier, I'm expecting at least one of the assets' cash inflow, huge cash inflows to come in the month of November itself. So we should see interest rates coming down further on a total basis.

Sure. And sir, last question would be if you can also give some update on JMC. You mentioned the refinancing is due in the next 6 months. So how should we look at the asset restructuring in JMC, restructuring of these 2 assets, monetization of the remaining assets? And there were these -- in the backdrop, there was a proposed merger plan between JMC and Kalpataru. So should we expect some of these initiatives to materialize in the next financial year? How should we look at the business as a whole from that perspective?

So let me answer the third question first. And for the first and second, I will request Vardhan to answer. From a long-term perspective, obviously, there are synergies between the 2 businesses, but the call on merger or consolidation would be taken at a Board level at an appropriate time. I would not like to comment on that today. But yes, the businesses have synergies and which we are trying to make sure that synergies effectively yield in improvement in productivity levels. As far as the status on the restructuring, can I request Vardhan to give a quick update, please?

Yes. So as far restructuring of the 2 assets is concerned, it's progressing smoothly, and we have made a good progress in the last 6 months. We expect, actually, in both the cases restructuring exercise to be completed in the second half. Hopefully, by February, March, we should have restructuring exercise completed and agreement signed with the lenders.

Okay. And the asset monetization of the remaining projects where we have reasonably healthy cost moves?

Yes. So that's also work in progress. That also, I'm expecting that we should start making progress in coming quarters, but it may take some time before it gets crystallized and signed off.

So Renu, let me add on this one. Right now, the focus is restructuring of these 2 large assets, as we had said earlier, and that's the target for the current year. As far as the larger monetization of the assets are concerned, we would focus a lot more once this restructuring is done. But our focus at least till March is to make sure the restructuring of these 2 assets are done. The balance component would happen sometime in the next year.

The next question is from the line of Jonas Bhutta from PhillipCapital.

Congratulations on a great set of numbers. And also just reiterating what basically Renu said, thanks to the Chairman to clarify on the real estate piece of the business. Sir, my question was more on the other expenses, if you see, sir, for the same set of revenues quarter-over-quarter, our other expenses have sort of shot up. Is there anything one-off in that? Or was there a bit of a bunching up of expenses that did not incur in Q1? How should one look at that flowing through in the second half of the year? That's my first question.

So I do not see any exceptional things in other expenses. But as you rightly pointed out, a lot of freight, a lot of inward-outward freight, which goes into other expenses for both international as well as domestic businesses, which did not happen in Q1, right, got bunched up in Q2. So there is a small exceptional expense, it's not big, related to cost on divestment of our BOOT assets, but that's not significant. That's a very small number. But otherwise, it's all business as routine, but a lot of other expenses constitute freight, which has gone up significantly in Q2 because Q1, everything was manufactured, ready, not only at our plant, but even our suppliers, even our bought-out items, all of that. And that's what has come in there. Otherwise, there's nothing exceptional there.

And my second question was on the order inflow front. So what I got from your comments earlier was the second half will be heavy orders from railways, and T&D domestic? And that -- and you still stick to about INR 9,000 crores to INR 10,000 crores of inflows for the year?

Yes, I think you've got it right. So it will be all 3, railways, T&D, domestic as well as oil and gas because oil and gas also, a lot of tenders have been bid. And we still continue to be very confident of achieving our INR 9,000 crores to INR 10,000 crores, hopefully on the higher end of it, but we still continue to be very confident. But while we say so, obviously, today, on the competitive side and on the volatility, there are always challenges, the volatility for various reasons and the competitive pressure. But given our visibility in certain segments, certain markets and certain good markets where we have kind of a dominating position, I think we're still confident we should be there in the range of INR 9,000 crores to INR 10,000 crores.

Got it. And our sales guidance for '21 is now at 5% growth Y-o-Y?

So we are still guiding for a growth of 5% to 10%, but realistically, it could be at 5% because while we speak of everything improving, but still productivity at the sites have not come back to the pre-COVID levels because we need to give that break of an hour, we need to make sure that we don't have more than 3 peoples in a car, all the COVID -- and which is a must, right? I'm not trying to say anything negative about it. So productivity levels are still not there. Labor is all there, whatever labor we wanted is all at site. So with that, we are still being slightly conservative and saying around 5%. But on a consol basis, we're still saying 5% to 10%.

And last, just an observation, sir, we have a buyback on for about INR 200 crores. But insofar, we've done just about INR 100 crores, INR 120 crores. Why is there not much sort of focus on getting that done with as in that also sort of seems to be lingering? A, do you expect to complete the entire INR 200 crores thing by the deadline? And when is the deadline of completion?

So we have done more than INR 120 crores while we speak. Our deadline is November end. We have an intent to get closer to our targeted numbers. And we've been just making sure that we are continuously buying whatever is our plan. So we have an intent to be very close to our targeted numbers.

We'll move on to the next question. That is from the line of Bharat Sheth from Quest Investment Advisors.

Excellent performance can't say, but good performance under really a tough time. Sir, just want to get some sense because of all this COVID thing, I mean, we have a lot of international projects also which are either funded by multilateral agency or EXIM Bank or -- because of that, also, we -- and now with this COVID, their fund -- there is a restriction on the availability of the fund as well as travel restriction delay the thing. So can you give some kind of -- I mean what is the ground reality? And how do we really see over the next couple of years, again back I mean those international funded project for KPTL as well as JMC, both?

Sure. So Bharat, yes, you are right. Our international projects have different sets of challenges compared to the Indian projects because there are different regulations in each of the country, and we have to abide by them. And also a lot of African countries have delayed their CapEx spending because of the COVID and so the next 6 to 12 months, the African continent, while we see some traction, we might not see too much. That's our own assessment. But -- while we say so, Middle East and some of the other countries, we're seeing some traction. As far as COVID challenges are concerned, majority of the countries where we're working today, whether it is Middle East, whether it is Africa, whether it's CIS, whether it is SAARC, activities are back to shape, right? And if I look at the neighboring countries on SAARC, or if I look at the neighboring countries, Bangladesh, Sri Lanka, all projects have started, Thailand projects have started. All Africa, wherever we're working, whether it is Senegal, Cameroon, all projects have started again. Challenge is, you can't send labor easily. But wherever we had existing labor strength because all these places, we're already there. Wherever we had existing labor strength, they have started working and their productivity has improved. New projects, sending labor is going to be some challenge because of restrictions in travel, but we still have ways and means of making sure that between the existing projects we can utilize the labor. So to give an example, recently on a project, we got a chartered flight and shifted 250 of our labor from one country to another. We got the permission and it was done. So those initiatives are still being done. That's as far as KPTL is concerned. On the JMC front, our international order book was not so high, but yes, we got a big order in Mongolia recently, and that's something which needs to be delivered in 2 years, and we've started working on it. We are working hard to win at least a few more projects, a few more large projects in the next couple of quarters in JMC. And that's just started. So it's a beginning of a journey for JMC as far as international is concerned, but we're confident that they'll pick up very soon, and that will be a huge component of the order book in the next few years. As far as targeted guidance on the international revenue, we still believe that the international revenue current year will grow at the range of 5% to 10%, both for KPTL as well as JMC.

So now again, order inflow, I mean, what kind of, I mean, medium term from, say, KPTL and JMC for '21, some kind of a color, I mean, looking at the ground reality?

So as far as 2021 even is concerned, I think we had given a guidance of around INR 9,000 crores to INR 10,000 crores for KPTL and around INR 6,000 crores for JMC. JMC guidance obviously would get improved to around INR 8,000 crores given the kind of -- we've already got INR 6,000 crores, and KPTL continues to be at the same level. So on a consol basis, we are reasonably sure we should be in the range of INR 16,000 crores to INR 18,000 crores between KPTL and JMC together.

I'm asking for next year, any kind of...

It will be very early and very difficult to give guidance on next year. A lot of things are evolving. I don't want to even get into -- so right now focused on the current year, but maybe in the next 2, 3 months, we should be able to give you guidance for the next year.

And any color on this Nordic region and some of, I mean, the oil and gas pipeline, railway foray into international market?

So we have bid for 3, 4 large projects in oil and gas in the international market. A couple of them, we have lost. A couple of them, we're still expecting the bids to be opened, and we have 5, 6 more to be bid over the next 3 to 4 months, and we'll continue foraying in that. The team is fully in place. Our focus is there. We've qualified in majority of the Middle East locations. And that would continue to be our focus as far as oil and gas is concerned. As far as railway is concerned, our focus is a lot more on the African market. We're bidding for some projects, African and the neighboring market. We have not seen any success as of now, but it's only a matter of time. And also given that this is a relatively new segment, last 6 months with limited travel, limited activity at the site level, things have got delayed also. But while those are happening at the back end, we are making sure that we are ready to completely go in as and when travel is allowed, as and when BD is allowed, as and when client interactions are allowed, and it's only a matter of time.

And any update on Indore project, sir?

So I think Indore project, we stay committed to exiting the full project in the next year, calendar year '21. As we said earlier, we'd received OC for the 2 buildings. Balance buildings OC should come in, in this current quarter latest by Feb. And we have started seeing some traction, and we believe calendar year '21 -- financial year '21 -- sorry, calendar year '21, we should be completely out of this project.

We'll move on to the next question that is from the line of Renjith Sivaram from ICICI Securities.

I just wanted to get some idea regarding the breakup of the revenue, especially if you can throw how has been the revenue breakup for T&D domestic, T&D overseas...

Sorry to interrupt. Mr. Sivaram, we are not able to hear you clearly.

Can you hear me now?

Sir, yes. I'm hearing you a little soft.

Is it audible now?

Much better, sir.

Sir, if you can give the revenue breakup in terms of T&D domestic, overseas, Linjemontage and infrastructure for this quarter? And what is your outlook for each of these for the second half?

Sure. I had already guided initially that T&D grew -- T&D was a de-growth in the current quarter. T&D as well as railway, oil and gas did well. Specific numbers, I can ask Ram to give the specific numbers, but let me give you a quick guidance before that. As far as T&D is concerned for the current year, we expect a growth of closer to 5% on international and domestic put together. As far as oil and gas is concerned, we expect that business to grow by around 10% to 15%. And as far as railway is concerned, we also expect that business to be growing around 10%. So on an annualized basis, on our targeted numbers, you should see T&D to be in the range of INR 5,000 crores, oil and gas to in the range of INR 1,500 crores and railways to be in that range. So we should be in the range of INR 8,000 crores, INR 8,500 crores. So the INR 5,000 crores, INR 1,500 crores, INR 1,700 crores and INR 1,500 crores, INR 1,700 crores. And biomass would be around INR 100 crores. So that's the annual breakup. And for the specific quarters, can I request Ram to give you the specific numbers. Ram?

This transmission line revenue was about INR 1,200 crores. Railway was about INR 325 crores, INR 330 crores.

And in terms of domestic and overseas, if you can help us of this INR 1,200 crores, how much was domestic?

It was roughly 50-50.

They were equal, it was closer to, yes, INR 600 crores each.

And sir, how is the -- in between, there was this something World Bank ban and some restriction was there in terms of our participation for World Bank projects. So if you can throw some clarity, like what is the whole issue like and is that going to impact us? What is our reaction to that?

So Renjith, I think from a clarity perspective, whatever we have declared is the final approved clarity from World Bank. Unfortunately, we can't be declaring more than that. I can only share this for something of 2010 and '12 where we had forgot to disclose a particular requirement in a particular tender, it was a technical error more than anything else, it was nothing else. We might not be able to disclose anything else because of confidentiality agreement signed between World Bank and us. As far as the impact of that, yes, we would not be able to bid for World Bank and a few other MDB agencies for the next 1 year, starting October 6. But we have a reasonably good order book, and we also are seeing traction in some of the other orders, which are there in Middle East, which are not funded by anyone. So we see that the impact would not be significant. But the reality is there could be some impact on order book. But it's not going to be significant impact enough to have any impact on our targeted growth and order book numbers.

Okay. And probably by when will -- when can we start bidding for this?

So 12-month, 1 day, so we have 52 weeks. 4 weeks have gone, 48 weeks more. It's only a matter of time. They will all pass by. So sometimes next year. So we -- there are 2- or 3-mile deadlines. It is 12-month, 1 day after which we can start bidding and after that some compliance program. But technically, we can start bidding in October next year.

Okay. And sir, there was this APMC Act, which has been passed. And is there -- is that going to impact our Shubham business in any way? Will that be a positive for us? Or is it kind of a nonevent?

So as far as the Shubham warehousing business is concerned, the act is a nonevent. If at all, it would be slightly positive, but not significant event as far as Shubham business is concerned.

Okay. And sir, lastly, you have -- the debt, if you look at sequentially, it has increased a bit in the stand-alone. So what was the reason for that? And what is our target of debt in the stand-alone business for the full year?

So Renjith, we continue to be on a targeted -- nil debt target as of 31st March, including the cash flows out of the sale of proceeds. As far as the small variation in debt, it's just driven by the quarter revenue and some inflows and outflows. Our target debt, excluding the inflows coming out of BOOT assets is around INR 1,000 crores at a stand-alone level. We have much below that. We are at INR 800 crores, and there's hardly a INR 50 crore increase. Just it's a timing of cash flow, sometime it's some project specific, but we are well within our targeted debt. And you can see our interest cost levels, which is the lowest ever achieved in the history of KPTL.

[Operator Instructions] The next question is from the line of Prashant Jain from HDFC AMC.

Manish, the company is doing extremely well. A lot of questions around that. So my some comment is mainly for Mr. Mofatraj Munot.

I think, Prashant, specific calls with Chairman, we have just said that we could do it separately because given...

No, no. I was not asking for any clarification. I just wanted to...

Thank you, Prashant.

Sir, I just wanted to share that the [ progress ] has been extremely [Audio Gap].