KEI Industries Limited (517569) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Q1 FY '22 Earnings Call of KEI Industries Limited, hosted by Monarch Networth Capital Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Anubhav Rawat from Monarch Networth Capital Limited. Thank you, and over to you, sir.

Yes, thank you, Malika. Good afternoon, everyone. I hope everyone is safe and healthy. We are pleased to host the senior management team of KEI Industries. And today, we have with us Mr. Anil Gupta, Chairman and Managing Director of the company; and Mr. Rajeev Gupta, CFO of the company. Let us start this call with management's initial comments about the results and then we can take your questions. Over to you, Anil, sir.

Yes. Good afternoon, sir. Good afternoon, everybody. I am Anil Gupta. Welcome to this conference call of KEI Industries. I'll give you a brief about result summary of Q1. You must have gone through the communication we have sent through our stock exchanges. The net sales in Q1 is INR 1,017 crore against INR 745 crore, so the growth achieved is INR 36.53 crore. Of course, it is because of the low base recorded last year because of the lockdown. But even this year, also the sale has been impacted due to lockdown in the April, May and June, especially in April and May because of the severe lockdowns in retail and various other states restricting production as well as movement of goods. However, EBITDA in this quarter is INR 116.49 crore against INR 84.88 crore. So the growth in EBITDA is 37%. EBITDA/net sale margin is 11.45% against 11.39%. This is after giving the effect of changes in the inventory valuations in the same period previous year. The profit after tax this quarter is INR 67.11 crore against INR 39.23 crore. So the growth in PAT is 71%. And the PAT/net sales has improved to 6.6% versus 5.26% last year. The domestic sale through institutional cable, institutional sale of HT, LT as well as dealer -- sales through the dealer network is practically increased by almost -- is doubled in this quarter compared to last year. However, EHV sale has declined from INR 88 crore to INR 29 crore because some INR 75 crore worth of material could not be dispatched in the June because of the lockdown and restriction in movement, and hence, the nonclearance from the utility about the dispatch. So it has been dispatched in July and -- which will be reflected in the second quarter number. Export sales in this quarter is INR 93 crore as against INR 183 crore. The decline is approximately 49%. It is due to mainly the large effect of sales to Dangote oil refinery in Nigeria. During the last financial -- Q1 of last financial year, the sales to Dangote oil was INR 96 crore. So that sale is not there because that was a very large INR 450 crore order, which has a very high base effect. The growth in this financial year -- in this Q1 includes due to price increase by approximately 40% to 45%. Sales through our dealer network has grown by almost 108%. And so our focus is -- remains on the improving our dealer network and retail sales pan-India basis. So the total active number for the dealers as on 30th June was 1,650. We are continuously strengthening our dealer network and inducted more than 150 salespeople across all branches to strengthen the retail and dealer network. The dealer sales has contributed 38% in the first quarter against last year, same period 25%. And the sale of EPC department is INR 86 crore, which was INR 78 crore last year. So the growth is approximately 10%. We have already stated that we want to limit our EPC business to INR 500 crore a year, so that -- keeping in view, the debtors and the cash flow issues. Out of the total sales of EPC, EHV EPC sale is INR 27 crore as against INR 16 crore. The sale of stainless steel wire in this quarter is INR 48 crore against INR 21 crore. So the growth is approximately 129% in the stainless steel wire business. As on today, as on 28th July, the pending orders are INR 3,022 crore. In this, EPC orders are INR 1,160 crore. Extra high-voltage cable, INR 502 crore. Domestic -- orders from domestic customer of cables, INR 1,310 crore, and export orders are INR 50 crore. So the total is INR 3,022 crore. The company has received a credit rating from India Ratings and Research AA- for long-term bank facilities and A1+ for short-term bank facilities. The book value of the company per equity share is INR 205 as on June 30 as against INR 197 on 31st March 2021. Total borrowings, including channel finance of INR 128 crore as on 30th June, is INR 298 crore, and cash and bank balances of INR 158 crore as against borrowings of INR 305 crore, and cash and bank balances of INR 221 crore as on 31st March. Acceptances, that means, creditor against letter of credit as on 30th June is INR 197 crore as against INR 323 crore as on 31st March 2021. So the net debt, including acceptance has reduced to INR 336 crore as on 30th June as against INR 408 crore as on 31st March 2021 and INR 922 crore as on 31st March 2020. During this quarter, finance cost has decreased to INR 11.42 crore against INR 16.78 crore previous year same period. The percentage of financial charges on net sales has decreased this period to 1.12% on the sales from 2.25%, so practically reducing by 1.1% in the -- in this quarter. The company has used operating cash flows for cash purchases resulting into reduction of paid -- payables acceptances substantially by INR 126 crore, which has further reduced finance cost during this period, though it may impact financial ratios like working capital cycles, return on capital employed, but it has benefited the company in the form of reduction in finance costs. Future outlook. As we communicated earlier, working capital of approximately INR 150 crore is expected to be released during FY '21-'22 from EPC debtors from the retention money for the completed project, which will be used for increased sale of cables and CapEx requirements in the current financial year. Company will be -- so the company will be having sufficient cash flow to meet its working capital and growth requirements for the future. Company is at the transformation stage. We had engaged consultants for making strategies and policies for increasing our retail sales through the dealer network by approximately 35% per annum. To maintain this momentum, sales growth, we have recruited 150 manpower at different levels in the marketing department in last 6 months. It is already evident from the first quarter results. And as our dealer business has grown by 100%, hence it will be more apparent and seen in the subsequent quarter results. The capacity utilized during Q1, 66% in Cable division, 43% in House Wire division and around 100% in Stainless Steel Wire division. So the company has already placed adding some differential capacity to achieve growth by next 2 years. Before -- by that time, the new capacity will also be available. Overall, company is targeting a growth of 18% to 20% in current financial year and will do CapEx of around INR 600 crore to INR 700 crore from the internal accruals in the next 4 years to maintain a CAGR of 17% to 18% as against achieved CAGR of 15% during the last 15 years. There will be a continuous focus of the company for improvement in sales of cables through dealer network as well as the traditional project base, continued focus of government on infrastructure projects. There is a substantial growth in the tunneling and ventilation projects across India, which are coming up in the highways as well as the railways all over India, particularly in the Northeast state, underground cabling projects of transmission and distribution in metro cities, Tier A and Tier B cities, conversion of overhead cable and transmission and distribution lines in extra high-voltage cable and HT cables, modernization of metro rail projects and railway projects, including railway stations and platforms, announcement of new airports across India and modernization of existing airports. Solar power projects will be the key in bringing sales, nuclear power projects announced in various states by the central government, oil and gas sector refinery expansion, fuel upgradation and capacity upgradation projects, steel industry expansion as well as the expansion in the general industrial projects, including cement; other industrial projects, private CapEx across industries. We are focusing on our major exports to -- in our major export markets to Africa, Australia, Middle East, Sri Lanka, Latin America and neighboring countries around India. So it's a brief summary of results. So I now request you to come out with any questions, whatever you may have, and we'll be glad to answer. Thank you.

[Operator Instructions] The first question is from the line of Naval Seth from Emkay Global Financial Services.

Sir, I have a few questions. First some clarification. The delay in dispatches were INR 75 crores in EHV segment. As you stated, the same has been done in July. So this would be over and above your Q2 run rate. Am I correct?

Yes.

Second, I missed out the dealer number, what you stated during your initial remarks?

It is approximately 1,650, 1-6-5-0.

So sir, this was -- as stated in the last earnings call, it was 1-6-5-5. So have...

[Foreign Language] We are strengthening the network. So what we are doing is we are [Foreign Language] in case of wheeler distributors, so we are replacing with -- them with a new strong dealer distributor network. So that's why number is not increasing, but rather the network is increasing.

So is it fair to assume then your counter share will certainly move up substantially within as you are...

Yes, sir. That is already evident from the growth also.

Okay. And sir, your target of 20%, 25% growth on this number of 1,650 remains intact for the FY '22?

Yes. Because as our consultants we have engaged -- so the policy is first to not only focus on the increase in number of dealer distributor rather replace of the weak dealer distributor with the strong candidates. So number is not the matter, but the counter share per capita should increase.

And is that exercise done with where you have already replaced or it is still ongoing?

No, it is still ongoing.

Okay. Okay. Understood. In terms of -- can you provide breakup for value and volume in your House Wire segment?

In House Wire segment, you see the -- product-wise, you can note down in the Q1, like low tension power cable is INR 389 crores. HT...

No, no. Sir, I have that breakup from your presentation, just from the number what you have reported in House Wire in terms of growth, can you bifurcate that 77% into value and volume that way?

In value terms, in the House Wire segment, the growth is close to 20%.

Okay. And has there been further price increases in July?

No. No. There is no price increase in July.

Because copper is stable.

Understood. And lastly, on retention money, although you have stated in your initial remarks, INR 150 crore, there was some payment which was expected in 1Q also from government. So have we received that or...

Proportionately, it is coming, the INR 150 crore for the whole year figure, which the additional money we have to receive to reduce the debtor. So proportionately, every month that is coming.

The next question is from the line of Rahul Agarwal from Incred Capital.

Sir, I had 3 quick questions. Any update on the greenfield facility [Foreign Language]?

Yes. Land is identified, and we are now doing that due diligence process at the bigger process. So I think it should come through by September.

It was happening in Gujarat, right?

Yes.

Okay. And second question on the demand side, into 2 parts, basically, on the cable side. Within Cable, could you give some understanding on different types of cables? How is the demand panning out? Like which segment is driving which type of cable within Cable? And similarly, on the wire side, is Housing Wire purely related to housing? Or is it you're seeing some kind of private and public CapEx driving it as well? Those 2 -- these 2 questions, please.

It's both ways. In the Wire segment, it is driven by the House Wire also, which is sold to real estate projects. But also the wires, which are being sold to various building projects, which is done by -- for hospitals, hotels, et cetera, which is done by company, CPWD projects or government projects where they are making military accommodations, et cetera. So it is wherever lights are there, whether it is in the government projects or in the private market, real estate projects, but -- and this entire business is driven by the dealer. We do not sell anything directly. So far as cables are concerned, the demand is across the high tension, low tension cables as well as all types of -- all category of cables and also the extra high voltage cable. So the demand is proportionately growing in all the segments.

So nothing one above the other, right? And within the cables, like no particular segment is actually doing better than the other?

No. All are doing -- growing in a similar fashion.

Because wire and cable goes in the basket because power is transmitted through the step-down mode.

Yes, yes. Got it. And one last thing, if you could help me recollect. Overall government top line contribution for the company, how much would that be? And when I say government, it could include public sector, I mean, any entity?

Direct to the state electricity board, we are not dealing in the Cable segment. Only extra high voltage and EPC, we are dealing with the state electricity board. So in the cable direct sale is almost nil to the state electricity board. But the PSUs, et cetera, so as a whole, the power sector, we are selling whether directly or indirectly, close to 32% to 33%.

[Operator Instructions] The next question is from the line of Mihir Manohar from Jefferies India.

Sir, I wanted to get the interest cost split for the quarter?

Interest cost just if you can note down in the -- yes, the term loan interest in this quarter is only INR 0.58 lakhs. And working capital interest is close to INR 3.73 lakhs -- INR 3.73 crores. And interest on LC is INR 0.48 crore, bank charges is INR 0.28 crore. Bank charges on bank guarantee is INR 5 crore and bank charges others is INR 1.31 crore. Bank charges on bank guarantee is INR 5 crore because of we got one large order of the EPC that's 300...

INR 400 crore.

Yes, INR 400 crore.

From Gambia, it is a world bank aided project. And -- so we had to give a performance bank guarantee and advance bank guarantee. And entire bank guarantee charges for next 3 years has been taken by the bank in this quarter.

Total is INR 11.40 crores.

[Operator Instructions] The next question is from the line of Amit Mahawar from Edelweiss.

Sir, congratulations on great set of numbers. I have 2 specific questions. First is typically in last 10, 15 years of our growth, if one looks at the industry consolidation, right now, we have, by far, the best opportunity in retail house fire. So what is some of the -- what are some of the steps that we will take to ensure that the bulk of market share shift that is happening from weaker players to say top 4, 5 players in house wires come to us? That's the first question.

See, the -- to do that, basic efforts is on the marketing front and creating a brand value. So we have taken all the requisite measures in terms of first, inducting and increasing the team, then making strategies of how to go to the market to add trade -- retailers in the trade segment. Thirdly, to reach out pan-India, the branding exercise in terms of advertising and also the below-the-line activities, which is the schemes through the retailers and electrician connects. So all these actions we have already taken and results will be visible in quarter after quarter in next 3 to 4 quarters.

Okay. Really, any change in ad spend and marketing strategy that we are looking at from the next 1 to 2 years perspective vis-a-vis what we've been doing this far in terms of numbers, if you can share?

Marketing strategy is only through improving the -- connect with the influencers like electricians or retailers. And so far as ad spend is there, ad spend will be almost the same like around close to INR 25 crore in the whole year. We have -- we are aggressively doing advertising on the TV channels. And also we are continuously taking properties in IPL by upper chest branding with Rajasthan Royals. So that is a good visibility because I think entire country sees cricket. And advertising, we are doing on -- in the TV, not only on Hindi channels, but also pan-India in different language channels in South India, in Western India as well as Eastern India.

My second question is for Rajeevji. Rajeev sir, what is the balance sheet charges this year? How much of debt are you targeting to cut in FY '22 and '23? And if you can help us with the numeric reach in wires, like what is the total maybe percentage reach of KEI in wires pan-India vis-a-vis the total sample size we have, broadly?

Amitji, as you are seeing that every quarter, we are reducing the debt, whether it is acceptances or the debt. So it is an ongoing process of every quarter. And by next year, hopefully, except the channel financing, there will not be any debt because already in the -- if you see the balance sheet, which we've already given, the debt portion is very, very less. So by next year, it will be almost zero. But the channel finance will be there because that is -- practically, it is not borrowing for us, but it has to be shown as per Ind-As requirement. As far as the wire is concerned, this year, our target to sell the wire is basically the 2x program is going on. And every year-on-year basis, the House Wire sales will grow more than 50%, 60% from here onward also. But this year, our commitment to grow the House Wire...

Sorry, sir, I think I missed you. The commitment you were saying something, I think there was noise.

I'm saying that the House Wire, what Anilji was telling you about the retail strategy, so he has taken this approach for this current financial year to grow by 100% in the current financial year. And the future next 2 to 3 years' time, the House Wire business will grow more than 50%, 60% year-on-year basis.

The next question is from the line of Sharvari Joshi from Trivikram Consultants.

Sir, my question is regarding the EHV cable side. So I understand there was some delay in order of around INR 75 crores. So even if I add that back, the overall revenue seems to be around INR 100 crores. So what's the trend -- because I'm just trying to understand the trend in EHV cables, which is a little difficult to predict. So is this an ambiguity we're looking at per quarter or it will be a little more after say, 2, 3 quarters down the line?

Madam, we are doing -- our capacity of extra high voltage power cable is around INR 475 crore, around. So in a year, we will do this kind of turnover. Last year also, we did around INR 418 crore. So on a whole year basis, we will do around INR 450 crore worth of business from extra high voltage power cable. This INR 75 crore is -- already the material was produced. It is only the matter where the inspection was done, but the clearances was not done. So that's why this material was not moved in that quarter. But ultimately, on a whole year basis, whatever we have projected for extra high voltage power cable that will be met. And whatever sales turnover we have projected for the current financial year, almost as a whole, we are going to grow more than 20%, so that we will be mentioning.

Okay. So just mentioned INR 450 crore from EHV cable for FY '22, right?

Yes.

Okay. Okay. And my next question is regarding the margin. So if I look at, say, 4 quarters margins, we have been able to maintain around 11.1 -- 11.4% margin. So is that the range we should look at for the whole year, say 11% to 11.5%? And even if you could mention about FY '23 as well?

Yes, yes, 11% plus margin will be there for the whole year.

For the whole year, and the similar for FY '23 as well?

Yes. In future, the margin will further grow because once the turn -- the top line will grow because at present the capacity utilization in the cable is 6%. So while this capacity utilization, we'll be utilizing more, then operating profit percentage also will grow.

Okay. For FY '23, right?

Yes.

The next question is from the line of Balaji Vaidyanath from NAFA Asset Management Company.

Sir, I have 2 broad questions. Just wanted to understand the thought process of the company in terms of the opportunity in especially the developed markets where we are seeing a combination of renewable plus electric vehicles and also increasing capacity addition by offshore wind, et cetera, where we are given to understand that more cables are required. So from the point of view of exports, are you looking at only Africa, Australia, et cetera? Or are you also looking for -- towards developed countries, especially in Europe, U.S., et cetera?

See, we are definitely looking for developed countries. We have already obtained UL approval, which enables us to export to U.S.A. for certain category of cables. And certain more category of cables, UL approval is underway. So it will take another -- this whole year again to develop -- to finalize the UL approval for a broad amount of categories of cables, which is -- which will help us in exporting to U.S. So far as offshore wind cables are concerned, they are typically submarine cables and important requirement in that is to set up a factory near the seaport or a river port where we can wound the cable directly on the ships and take it inside the sea where the wind farms are located at least 10 kilometers inside the sea. At the moment, we don't have that facility and -- but as the demand comes up in a big way, we'll definitely look into that.

And this CapEx that you mentioned of about INR 600 crores, that would be broadly into which product category that you'll be doing the CapEx for?

It will be mainly to produce -- enhance the capacity of high tension, low tension cables as well as the extra high voltage cables.

Okay. Sir, just wanted to understand in India, if you're talking about, for example, 1,000-megawatt solar power project versus 1,000-megawatt coal power project, what is the difference in the cable requirement between a typical 1,000 megawatt solar project and a 1000-megawatt coal project, sir?

In 1,000-megawatt solar project, the requirement of cable is very high. The cable requirement is mainly of 33 kV cables, which is used to evacuate the power from the solar project and integrate it with the transmission grid. In case of thermal power, mostly thermal -- power evacuation system through overhead network, which is overhead conductor network. So -- but in case of solar cables, it is mostly through 33 kV cables. And so hence, the cable requirement in case of solar power projects is much higher, at least, I will say, 3 to 4x higher than the thermal power projects.

And so we have -- in this particular area, do we have any product gaps on the solar side or we are present there, sir?

No, no, no. We don't have any product gaps.

We are manufacturing all range of cables.

All range of cables.

The next question is from the line of Manoj Gori from Equirus Securities.

Sir, my first question would be a follow-up to exports what you just highlighted. So what are the things that we are targeting to achieve strong growth from export markets because, obviously, a lot of players have been talking about export opportunity. Can you throw some light on that?

We are -- our predominant markets of export at the moment is Australia, Middle East and Africa. In Africa, most countries are under slowdown this year. So the opportunities are limited. Middle East, the opportunities are strong, and we are working on various new coming up oil and gas projects. And we'll see that how much opportunities -- I can't quantify at the moment how much opportunities we will get. However, in Australia, we are seeing a very strong demand from solar and wind projects, especially solar projects. And our exports to Australia are continuously growing, even this year will grow significantly by 50% to 60% compared to last year. So other markets like SAARC countries around India, we had done very good exports in '19, '20. But this year, the opportunities are limited because of the financial health of -- and the economy slowdown in these countries.

Right, sir. So talking about your long-term guidance of roughly around 17% to 18% growth, so can you just highlight like what would be the contribution at that point of time, probably 4 years down the line from the B2C business or from the exports? Just some color on that.

50%.

See B2C business, we are aiming to achieve at least 50% market share of our business coming from B2C in next 3 to 4 years. And exports will be close to around 12% to 15%. Rest will be the institutional cable market.

Right, sir. Sir, one last question. So if I'm not wrong, in the previous call, Mr. Rajeev did highlighted like 17% to 18%, the yearly guidance that we have been giving on top line. So if I'm not wrong, there was some assumption that copper prices may go down. And if they remain at the current levels, and obviously, guidance would be revised upward. Any indication on that, given that we are sitting in August and copper prices are very far?

At the moment, we don't see too much upside on the copper prices because copper prices have already risen too much. It has risen by around 60%, 65% in last 1 year. So there is a limit. I don't see too much of upside on that.

But Manojji, whatever we guided to grow by 20%. In spite of that, the pandemic was there and the third wave we are listening and still a few states are not opening. So all -- with all the restrictions, et cetera, everything, we will still grow at least by 20%. And whatever more, more will be there. That is for sure, because we have the capacity available.

[Operator Instructions] The next question is from the line of Shrinidhi Karlekar from HSBC.

Congratulations on great set of numbers. Sir, just a couple of questions from my side. Sir, pricings have gone substantially increased because of commodity costs. In that regard, sir, I just want to know, is it fair to say that in your dealer and distribution business, most of your organized peers have taken similar price increases? And for these increases, KEI's pricing versus some of its peers is what you continue to -- is at the desired level?

Price increase is directly related to the price increase of the raw material. So it is in the same proportion that everybody is increasing because we always see that we are having a mechanism of the pass-through mechanism. So every month, whether it is twice a month or once a month, the prices varies depending on the copper prices movement.

Yes, sir. And that still holds up, right? Even these round off changes of substantial increase in commodity costs, those formulas are still intact, and the pricing decisions are still...

Yes. In future, it will be intact. Yes. In future also, it will be intact because nobody can absorb the copper prices.

Great, sir. And sir, anything can be said about your institutional business as well, right? So there because isn't...

Yes, yes.

Yes. Okay. And sir...

In the institutional business, whenever we quote a new tender, we always quote at the prevailing price in the market. Whatever order we are having 2, 3 months, we are having 2, 3 months inventory also. So it is under the natural hedge.

Great, sir. And sir, even if it is a substantial increase that you expect institutional business compared to what inventory you have, you will have a hedging policy, right? So there won't be a negative surprise because your institutional business feels -- I look at that business going up. So there's no negative surprise because of rising commodity costs, right? You will hedge according to that, right?

In the last 15 years, you have seen the balance sheet. These kind of fluctuations are there. But in the case of the operating margin, these fluctuations are not there because of the simple rule that we are working on a pass-through mechanism.

Right, sir. And sir, last question from my end. There's a dip in channel finance debt largely similar to the decline that we saw in your Consumer Wire business. So that's how we should be reading it, nothing to do with accounting changes, right, where in nonrecourse debt you are getting, and that's why you don't have to report that channel finance debt?

Slowly, slowly, whatever channel finance we were having earlier, it was having 100% recourse. Now few of the banks has reduced to 50%, and we are still trying few banks that the recourse will be 25%. So by end of the March, this debt will also go down from the books.

The next question is from the line of Balaji Vaidyanath from NAFA Asset Management.

Sir, just a quick follow-up on the question that I asked regarding solar versus thermal. Sir, in the last 15 years, you have grown by about 15% CAGR, which you've mentioned, and you're guiding for growth in the coming years as well. So just trying to understand that the incremental capacity addition is happening more on the renewable side. And considering the cable requirement for renewable, ideally, shouldn't your solar project-related growth be much more than even the FMEG growth?

Yes, yes. Definitely, the growth due to solar projects will be much more in wires and cables. And it will be reflected in the results of the most companies. So I don't say that FMEG will not grow because ultimately incomes are growing and people are looking for fast-moving electrical goods. More and more people are coming into that category, who can afford the consumer durables and other things and better housing. So that category will also keep growing.

But this 17% kind of growth levels that you are kind of broadly guiding, is there a chance for more upside considering the more renewable trust by the country?

You see in the last 5 years, we have grown more than 25% -- more than 20%. In last 15 years, the CAGR is 15%, where the 2009 is also there and other tough time are also there like 2011 to '13. But if you talk of this -- the previous 5 years, we have grown by almost 20%.

The next question is from the line of Ashish Poddar from Anand Rathi Research.

Yes. And congratulations on sturdy performance. One question on your financials. So you mentioned that you have restated FY '21 numbers on some changes in accounting policy regarding valuation of inventories. So will that also help in our margins going forward? Or even in Q1, was there any positive impact on that?

[Foreign Language] because earlier, we were having the FIFO method. Since the ERP is not supporting the FIFO, so that's why the weighted average method, we have adopted and the industry peer group also is doing through ERP system, the weighted average method of the inventory. So total impact in the balance sheet was in the last year, if we revalue the total inventory of last year, it will impact the INR 5 crore minus side. So now the current year, everything is on the moving average side.

No. So what I'm asking sir, [Foreign Language]

[Foreign Language]

Material difference?

[Foreign Language]

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

So good afternoon, ladies and gentlemen. Thank you very much for this interactive session for our Q1 results. And we have taken, whatever from this conversation, the inputs from our investor associates and will definitely -- whatever we have guided, we will definitely try to do better than the guidance. We have always done that. We always speak less and be conservative in our guidance, but always proved better. So if still you have any further questions, you may reach out to us through telephone or email, and we'll be glad to answer. And I'm again repeating that we are very positive about our outlook of our business growth in this year as well as coming forward in the coming years because of our penetration in the market, our product mix and our positioning with the customers. So we will give good performance of the company to all our stakeholders. Thank you very much.

Thank you very much.

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