Man Industries (India) Limited (513269) Q3 FY2026 Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Man Industries India Limited Q3 FY '26 Earnings Conference Call hosted by Arihant Capital Markets Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Ronak Osthwal from Arihant Capital. Thank you, and over to you, sir.

Good evening, and welcome, everyone. On behalf of Arihant Capital Limited, we invite you to Man Industries India Limited Quarter 3 and 9 Months FY '26 Earnings Conference Call. From the management side, we have Dr. Ramesh Chandra Mansukhani, Chairman of the company; Mr. Nikhil Mansukhani, Managing Director; Mr. Sandeep Kumar, Chief Financial Officer; Mr. Rahul Rawat, Company Secretary; and Mr. Vijay Gyanchandani, DGM, Investor Relations. So without any further delay, I will now hand over the call to the management for their opening remarks. Over to you, sir.

Good evening, everyone. I warmly welcome you all to our Q3 and 9 months FY '26 earnings conference call. Let's start with the key business highlights for the quarter. We are pleased to report the highest ever quarterly EBITDA and PAT margin in the company's history, reflecting our sustained focus on product mix optimization, strong operational discipline and effective cost management. Export markets continue to perform well, supported by healthy order inflows and inquiries, particularly from MENA region, Southeast Asia, CIS countries, Africa and Asia Pacific. Exports remain a key growth driver, accounting to 83% of the order book. This underscores the growing global confidence in our technical capabilities, execution track record and ability to deliver complex large diameter pipe solutions. Within the export mix, LSAW pipes constitute 80%, which is an increasing contribution from our value-added offerings such as specialized coating and bed. On the domestic front, the early green shootouts are visible with gradual recovery reflected in selective order wins during the quarter from oil and gas companies and EPC players. Additionally, the recent union budget announcement on the revival of Jal Jeevan Mission with proposed spending of approximately INR 67,000 crores is expected to be significantly increased central government's expenditure on drinking water and sanitation in the next fiscal year. However, the pace of execution and grants to states remain key monitorables. Overall, we expect the domestic market to see a meaningful recovery in FY '27. As on date, our executable order book stands at approximately INR 4,000 crores, providing execution visibility over the next 6 to 12 months. With strong momentum continuing in the current quarter, we expect Q4 FY '26 to be among the best quarters in the company's history for its core business. Accordingly, we retained our original FY '26 revenue guidance of INR 3,600 crores to INR 3,700 crores and upgrade our margin guidance to 13%, 14% compared to the initial margin guidance of 11% to 12%. Now coming to the status of our strategic expansions. The company's strategic capacity expansion initiatives in Saudi Arabia and Jammu are progressing well with key civil works and major equipment installation substantially completed. The Saudi facility is advancing as planned and is expected to be completed by Q1 FY '27, and the Jammu facility also remains on track. Both projects will significantly strengthen our geographical research, reach, capacity and ability to participate in high-value contracts, ensuring diversified growth in the coming years. With that, I now hand over to our CFO, Mr. Sandeep Kumar Garg, to review the financials. Over to you, Sandeep.

Thank you, sir. Good evening, everyone. I thank you all for joining the discussion for our Q3 and 9 months FY '26 financial performance. Let's start with the key financial highlights. First, I will start with the consolidated results. Total income for Q3 FY '26 stood at INR 838.7 crores, a growth of 13.7% Y-o-Y basis and 2.9% on a Q-o-Q basis. EBITDA grew by approximately 61.4% Y-o-Y to INR 136 crores with margin expanding by 480 basis points Y-o-Y to 16.2%, the highest ever in our history. Profit after tax grew by 61% Y-o-Y to INR 55 crores, a 9-month performance. Total income stood at INR 2,427 crores, up 4.5% Y-o-Y. EBITDA grew by approximately 47% Y-o-Y to INR 318 crores, reflecting sustained margin expansion across product lines. PAT stood at INR 120 crores, growing approximately 41% Y-o-Y with cash profit increasing by approximately 47% Y-o-Y at INR 175.9 crores. On the balance sheet front, we continue to operate with a strong balance sheet. As on 31st December 2025, we have a net cash position of INR 38 crores. Overall, these results reflect strength of our business model, execution excellence and strategic initiatives that are driving sustained profitable growth. Many of you must be thinking about sharp increase in our other expenses Y-o-Y and Q-o-Q. The sharp increase in other expenses in Q3 FY '26 are primarily driven by higher freight and logistic costs associated with fulfilling a significant portion of company's executed order under DDP, which is delivered duty paid. With this, we would now open the floor for question-and-answer session. Thank you.

[Operator Instructions] The first question comes from the line of Divyansh Thakur, Finterest Capital.

Congratulations on a great set of numbers. Sir, you upgraded the EBITDA margin guidance. So sir, is it the upgrade also applicable for fiscal year '27? Are we going to see 13% to 14% EBITDA margin?

Yes, Divyansh. Thank you for your question. Yes, we should be trying to sustain 13% to 14% EBITDA margin for FY '27.

Okay. And sir, any changes to the PAT margin for fiscal year '27 as EBITDA margins have seen?

They will be doing better.

They will increase in line with the EBITDA.

The next question comes from the line of Viraj Mahadevia from MoneyGrow.

Congratulations on the fantastic numbers, especially the EBITDA margin update. Just a question regarding your current expansions. How much money is left to be spent between the Jammu and the Saudi facilities as well?

So approximately 75% is already spent out. The current is around 25% and then the trials and everything.

So about -- maybe about INR 400 crores is pending to be spent?

Yes, give or take, around 25% would be INR 350 crores to INR 400 crores.

Understood. And will this all be completed in Q4 or will it spill over Q1 as well?

Q1 for the Saudi and Jammu, I think, by Q2.

Q2, okay. So Q1 -- by Q1 and Q2 next year [indiscernible] all of this will...

Q1 next year for the Saudi.

Understood. And in terms of your current bid pipeline, what is the value of the bid pipeline, excluding the [indiscernible]

INR 7,500 crores currently.

INR 8,500 crores...

INR 7,500 crores.

INR 7,500 crores. Okay.

[Operator Instructions] The next question comes from the line of [indiscernible] from Choice Institutional Equities.

Congratulations for the great result. I want to understand the revenue or cash flow from the real estate segment. So what's the management on the cash flow or the revenue from the real estate segment?

Yes. So real estate segment, Merino Shelters is now going to launch the project. It's under RERA approvals. And we should be launching it in -- which we gave to Paradise Group, and they should be launching it sometime in March 1 week. And this would generate an overall top line of around INR 600 crores to INR 700 crores. This will come back into the company over the next 6 to 7 years. And there is no cost affiliated to this. This is purely the money coming back into the company.

Okay. And what will be the margin from this business?

There's no cost to this -- for the business.

INR 600 crores to INR 700 crores is our net profit, I can say?

Yes. Net [Foreign Language] not PAT, but...

Yes, yes. But there will be no any cost. So we can consider like...

Correct.

Okay. Okay. And what's our -- any guidance on a consolidated debt or what's our average cost by end of quarter and the interest cost? And what will be the range we can expect in the coming period?

Average borrowing cost is around -- in the range of 8%, between 8% and 8.5%.

And the range will sustain or...

It will remain in the same [Technical Difficulty]

Great, great.

The next question comes from the line of [indiscernible] from Crown Capital.

Firstly, congratulations on a great set of results. So just wanted to know like in terms of our FY '27, what is the guidance that we can expect like because Jammu is operating partially and Saudi is also operating partially, right? So what can that contribution be like?

[indiscernible] we would be looking at approximately 25% to 30% growth in FY '27 from FY '26.

Okay. Okay. Fair enough, sir. And sir, just margins, I wanted to ask because in the last 2 quarters, we have done nearly 15% margin. So we are still guiding for like a bit lower than that, right, 13% to 14%. So I just wanted to know like are we being conservative or we feel that there are some one-offs in these that -- because of some projects that we are able to churn the higher percentage. So going forward, we'll be able to do -- I don't know, is this 15% also sustainable because we've done it in 2 quarters. Just wanted to ask about that, sir.

Yes. See, looking at the consol levels and currently, the order book and also Saudi, the way it is -- the order book in Saudi, which looks positive, we feel that the EBITDA levels, we'll be able to manage between 13% and 15%. And we rather be a little conservative and overperform, right? Everyone likes that. So we rather be in the range of 11% to 13% and then try and deliver above 13%. But I think we are -- this is a sustainable level currently for us.

Okay. Okay. Fair enough. That's good to know. And sir, just wanted to know, sir, like next year, both of these projects will come online. So will we have a higher depreciation, right? That cost we know, but what about the finance cost because we would be capitalizing some amount of finance costs, right, as the plant is still underway. So could you just quantify that, sir? What would be our expected finance cost?

The finance cost for the -- at the consol, that's why you can see a difference between stand-alone and consol because the interest is being consolidated. That is why the numbers -- the stand-alone numbers are higher. As regards to -- what was your second question on that, sorry?

No, yes. That's clear. So what I had thought of was that till the plant is not commercialized, we don't put it in P&L. Correct me if I'm wrong. I thought that would be going into some capital work in progress and not in our balance sheet -- in our P&L. So I just wanted to confirm that. So we account for all the extra finance cost in our P&L right now? Or is it in balance sheet? Because I thought that in FY '27, it would come in our P&L, yes.

Practically, till the project gets a COD, all the costs are capitalized. And after the COD will happen, it will go to the P&L.

Yes. So that's what I'm saying. So there will be additional cost happening in FY '27, right? So what would that be?

Such costs will increase depending on the loans.

[Operator Instructions] The next question comes from the line of Satyan Wadhwa from Profusion Investment Advisors. As there is no response from the current participant, we move towards the next question. The next question comes from the line of [indiscernible] from Trinetra Investment Capital.

Can you please confirm the target completion for the Saudi Dammam plant? And also what would be the time line for trial and the first year utilization assumption for the same, sir?

So we would be completing in Q1 with the trials as well in quarter 1, '27. And we are looking at around 50% to 60% utilization in the year 1.

And on the number side, sir, can you quantify what would be the revenue recognition that you would be doing for the first year operation of the plant, sir?

INR 1,500 crores and INR 2,000 crores, looking -- depending on the steel price and everything, it will be between INR 1,500 crores and INR 2,000 crores.

Got it, sir. And sir, can you provide us some details on the working capital side? Like what kind of incremental funding we would need on the inventory side or on the -- like compared to the measures you've taken right now, sir?

Majorly, it's from the non-fund-based side, and that would be approximately between the peak load if we are executing INR 1,500 crores to INR 2,000 crores would be around INR 750 crores to INR 900 crores of non-fund based basically for LPs and BGs.

[Operator Instructions] The next question comes from the line of [ Harsh Jain ] an individual investor. The next question comes from the line of Satyan Wadhwa from Profusion Investment Advisors.

Very encouraging to hear margins are going to be higher. Just wanted to know what would be your expected revenue from Saudi and Jammu in FY '28 when they're both operating at maybe 75%, 80% utilization. What should we be expecting from there?

So for FY '28, you would be at Saudi, we would be doing anywhere between INR 2,000 crores to INR 2,500 crores.

Right. And Jammu?

Jammu will be at around INR 500-plus crores, INR 500 crores to INR 600 crores.

Okay. Great. And margins in Jammu should be around 17%, 18%, right?

Yes.

And how does -- if you don't mind, [indiscernible] how does the whole sort of duty drawback or GST benefit work? So do you charge GST, but not book it as a cost?

No, no, no. You book it and then you do all of it and then -- once second, CFO will explain.

GST is never a cost because whatever GST paid on the input has taken as an input. Whatever we buy, GST input is available and [indiscernible] export also. And for export, we get refund of the GST based on the export. What about -- you're talking about Jammu or our pipe business?

No, no. In Jammu, you get GST benefit for 3x your capital expenditure, right? So that I assume would be on about INR 450 crores to INR 500 crores extra land. Is that correct? In your presentation, you said right, 3x of investment in plant and machinery would be paid back in 10 years tenure in the form of GST credit. I understand the mechanism of how this is paid back.

Incentive.

No, we have to pay the GST, recover and pay the GST, and then we have to apply with that documents to the government for a grant to get it repaid. So government is...

This will come, I guess, back to you like a year in arrears, right, like after a year it starts to come back after the first year or so?

Correct, correct. So we have to account for it. We have to pay the tax for it and then we make this and we send it to the government and you get it every quarter. So yes.

Okay. Perfect. And the second question, sorry, on this was the 6% subsidy on interest. So do you like say if it's 9% interest rate, you get fixed back, so it's net 3%? Or is it only 6% interest that you have to pay?

3.5%, you got it, yes.

Okay. So you get a 6% subsidy. So you only pay 3% on a 9% sort of interest rate, right?

Correct. On the [indiscernible]

Okay. Perfect. And okay. So you can run this for the next 5, 7 years, if you wanted to internally just cheap money, right? So just trying to understand that housekeeping.

Okay, they the arbitrage on it, yes.

The next question comes from the line of Kanan Sonpal from Capri Global Capital. Sir, this is [ Riken ] here from Capri Global Family Office.

First of all, congratulations on good performance as well as consistency on the margin front. Sir, firstly, I wanted to understand, you've sort of indicated that you will be able to maintain your full year guidance for this year, which does imply almost a 40% bare minimum kind of a growth that you see. So is it in the quarter 4, is it that you are seeing some large export order execution, which is driving the kind of growth in quarter 4? Or what is it that is driving the growth in quarter 4, if you can help understand?

It is obviously execution of the existing orders in hand, and most of them are for exports. And plus these orders also which we got were always taken at a better margin. And our [Technical Difficulty] has been very, very good. So we are trying to save certain percentage, and that all is reflecting in the EBITDA.

Got it. Got it. Got it. So from here -- so that is the first question. Second question is in terms of your margin trajectory from here on, if you could outline 1 or 2 headwinds and tailwinds that you see going into the next year?

So see, currently, with the order book and Saudi coming operational, we see we'll be able to maintain between this 13% to 15% EBITDA. We don't find any challenge in doing that. But looking at the commodities and the way commodities have really run up, going forward, every order cannot be. But I think it is safe to say for now that we'll be at a 13% to 15% EBITDA, which is somewhere where we were working on in the last few years, and we should be consistently able to achieve that.

Got it, sir. And lastly, if you could -- not related to the quarter's numbers, but you did indicate some kind of a partnership with or approval with Aramco in your press release some time back. If you could outline what kind of opportunities can this offer us in the longer run?

Yes. So these opportunities with Aramco with the current oil and gas business which the plant is being put up. So there is an offtake agreement, which would be in place once the plant is up, early approvals and a preference of being the local player to get more business. And in the long term, also, there are a lot of other products, which they are very, very keen, and we are developing together. And maybe in the long run, we get the opportunity to set up something specifically for Aramco and they would again have an offtake with us. So it's quite premature for me to tell exactly what it is, but we are working on it. It's pretty much work in progress, but it would give a big advantage to the company of being present their first preference of moving and getting our margins in place.

Does the -- just a follow-up. Does the domestic India business also benefit in any form from this kind of tie-ups?

Not really, not really.

[Operator Instructions] The next question comes from the line of Viraj Mahadevia from MoneyGrow.

In the past, you indicated a top line potential of INR 6,500 crores for FY '27. Assuming you're sticking to your guidance for the press release of INR 3,700 crores and growth of 30%, that would imply a top line of about INR 4,800 crores for '27. Can you clarify on that, please?

Viraj, you will be able to achieve INR 5,500 crores, INR 6,000 crores in FY '27 and those were the guidelines. But again, it was -- please understand that the guidelines of the turnover, particularly the numbers cannot be hold on to like tight because the steel prices and commodity prices have really fluctuated over the last 1.5 years. And we have to look at the overall outlook and also the production numbers as well. So give or take, if the prices of steel remain where they are, we will be able to achieve more than 50%, 55% growth. On a conservative level, 30%, 35% growth is like conservative and realistic. But our internal goal is at 50%, 55%, which our budgets and everything is set at.

The next question comes from the line of [ Disha ] from Sapphire Capital.

Congratulations on good set of results, sir. Sir, I think you mentioned you have INR 4,000 crores order book currently. [indiscernible] exit rate for this year are we targeting? And I think you mentioned we have a bid pipeline of INR 7,500 crores. So what will be the win ratio?

Bid is INR 11,500 crores, not INR 7,500 crores, INR 11,500 crores. The bid ratio is 20% to 30% is the average strike of the bids. Currently, the order book is INR 4,000 crores. This year, we would be -- as committed, we would be growing around 20%, 25% stand-alone from last year. Last year, stand-alone was INR 3,130 crores without Merino. And so this year, we would be growing around 20%, 25% on the stand-alone basis. Yes, anything else, Disha?

Yes. Does -- for this Saudi and Jammu plant at optimal utilization, what sort of revenues are we targeting?

So yes, now when it comes to the absolute optimization at around 75% to 85% peak, which we can achieve approximately from Jammu and Saudi put together around INR 4,000 crores, INR4,500 crores. Maybe even INR 5,000 crores.

The next question comes from the line of Sandeep Mathivanan from MoneyGrow Asset.

The question is related to EBITDA margin expansion, which took place in this quarter. So is the improvement primarily driven by change in product mix? Or is it some temporary effect due to increase in commodity price?

No, it's not. This is basically value addition in the products, the businesses that we have taken and also the internal systems which we have improved, which is overall giving us the betterment in the EBITDA.

Okay. So sir, if you have the data, can you share like what percentage of the growth is driven by pricing and what percentage is driven by volume?

Sorry, pricing and what percentage by...

Volume.

Your voice is cracking.

What percentage of projected growth is driven by pricing and volume?

Volume [indiscernible]

The next question comes from the line of Nikhil Singh from Equivision Consulting.

So you have been guiding a 25% growth, 20% to 25% growth from this year start. But when I see your quarter numbers, I don't see that kind of growth in Q1, Q2, Q3. So what makes you so confident that you would be able to achieve those numbers in Q4?

We have a confirmed order. We have a shipment scheduled. But Q4, we are going to achieve a higher number, which will help us reaching our guided figure.

Also, Nikhil, one very important thing. Our business cannot be looked on quarter-on-quarter. Our business is always looked at a holistic basis. And like we just said that we are already in almost midst of that, and we are very confident because we have our shipments lined out. Our production is already ongoing and quite a lot of it is already done, and we are shipping those products out. So we are more than confident to achieve the guidelines which are given by us.

Okay. One more question on the Saudi plant. As you have said that you would do around INR 2,000 crores from Saudi plant in FY '27. What are your plans for FY '28 and beyond? Since Saudi is seeing a lot of demand for line pipes in their energy transition and their desalination plants, so what are the plans on expanding those Saudi plant beyond FY '27?

So FY '27 guidance was between INR 1,500 crores to INR 2,000 crores. FY '28 is between INR 2,000 crores to INR 2,500 crores. And we are confident between FY '29, it would probably go around INR 2,500 crores to INR 3,000. So these are obviously, like we said, these are our expectation and estimation. Some orders which are in line pipe, which negotiations are going on, some Aramco orders, which will come by FY '27, second half. So these are expected numbers. If there are some big order and we get it and we are able to churn it around, even the numbers can go up. Also, these numbers are fluctuating around almost 15%, 20% depending on the commodities price. So that's what we are expecting.

The next question comes from the line of Divyansh Thakur from Finterest Capital.

I wanted to ask that in the last call also, you mentioned that from the Jammu plant, it will be around INR 500 crores in the fiscal year '27. So are we not going to see a ramp-up in fiscal year '28? And you also gave a guidance of around INR 7,000 crores of revenue. Would you like to revise that or something [indiscernible]

No. See, guidance and [indiscernible] doesn't work on me. Our guidance as per the top line, we'll be able to achieve by 2028. But also the commodity prices will also depend on that, right? So if the commodity prices are 20%, 25%, it will be easier for us to achieve those guidelines versus if the commodity prices drop, obviously, the volume has to go much, much higher to achieve the same numbers. So this is an expected guideline of what currently we are expecting the steel to be at and everything, and the commodities to be at.

The next question comes from the line of Viraj Mahadevia from MoneyGrow.

Good question. Would you be able to give us a sense of the funds coming in from Merino, the real estate over the next few years? Is it more back-ended towards 2029, '30 or will we see some of it come earlier? And also, will those funds be prioritized for debt paydown? And when do you think you become net debt free without any further expansion?

So first, I will answer by Merino. The Merino revenues will start in FY '27 itself. We're expecting between INR 70 crores to INR 100 crores FY '27. And this will continue for around 6 to 7 years approximately. The total revenue will be between INR 600 crores to INR 800 crores. There is no expense out, so this is all income which is coming into the company. This all money and the free cash flows will be used for reducing the debt portions in the company. And we see by 2030, the numbers of debt are dramatically down. Some debt we won't pay on purpose because of the Jammu with the 6% interest benefit. We would pay it down as per the dates given and not prepay it. But the rest of the debt, we would like to use our free cash flow and everything for repaying the debt and some other -- if CapEx planned out at a later stage, we will keep you posted.

The next question comes from the line of [indiscernible] from Crown Capital.

So sorry, this might be a bit of a repeated question, but I'm just having some problems reconciling the numbers. So we are saying in the stand-alone business, we'll have around 20%, 25% growth, right? So that would maybe take us from INR 3,600 crores to INR 4,500 crores on the upper end. Jammu, we are thinking of around INR 500 crores [indiscernible]

[indiscernible] I didn't say [indiscernible] I said 25%, 30% growth on FY '27 on consolidated numbers. I said internal guideline is 50% with what we are seeing the numbers currently with the Saudi and everything. But 25%, 30% is just a guideline that we are saying, but internal numbers are 50%, which is on consolidated level, which is Saudi, which is India and which is partially for Jammu as well for some quarters.

Okay, sir. So I get it. So 25% -- because Saudi itself will be around INR 1,500 crores, right? That's what we are targeting. I'm not saying it's a guidance that we'll be firmly holding, but around INR 1,500 crores is the target that we have from Jammu itself -- sorry, from Saudi itself, right? So that itself would increase our revenue by more than 30%, right, without like even any growth in stand-alone or Jammu coming into play. So that's why I just wanted to ask about that, sir. So stand-alone, I'm assuming we'll have some growth. And Jammu is again a target I not want to catch hold of it just for our purposes that maybe this is the potential that we can reach. So just -- so Saudi is around INR 1,500 crores. So Jammu from FY '27, what are we expecting, sir?

We are expecting approximately INR 300 crores.

300 crores, right? Yes. Okay, fair enough.

The next question comes from the line of [indiscernible] from an individual investor.

I actually had 2 questions. One, when you say INR 2,000 crores of revenue coming from Saudi, what percentage utilization are you factoring in? And second question is if you can throw some light on how large is the Saudi market in terms of tonnage? Potentially, just want to get a sense of how large can a business like this be, say, 5 years from now?

So the consumption is almost 50% at INR 1,500 crores to INR 2,000 crores, it's at approximately of a 50% to 55% level in Saudi. And the Saudi market, looking at the current Saudi market and our current capacity, we would be able to probably -- if the market is very good with the value-added business of coating and everything, we would be maybe able to scale it up to approximately INR 4,500 crores to INR 5,000 crores.

Okay. This is based on the commitments that you have as on date and what you see in terms of order pipeline, right? I [indiscernible] get a sense -- I will...

It doesn't happen as per that. It's basically you have to see what kind of size, thickness or pipes comes. A lot of times, there is a single size and you run it across the year, then you get a much better yield and output versus if you do multiple sizes, your tonnage drops. So your consumption is high, but your revenue is not because you're not able to remove the same kind of tonnage, which you would have removed on a different size. So it's all variable. But we -- that's what we do that we see which best works for the size and output, and also value, right? You want to get the best price and best EBITDA also out of certain businesses.

Of course, of course. Okay. Just one more question. in relation to Merino Shelters, which is the real estate business, you said about INR 600 crores, INR 700 crores is what you expect to get over the next 3, 4 years, right? How much percentage share is that of the total revenue that's collected by your partner?

30% of the revenue, which is going to come in of the total revenue is to Man Industries, they know basically.

So INR 600 crores, INR 700 crores is 30% of total collection, just to understand that, right?

INR 600 crores, INR 700 crores is the 30% to the total collection.

Yes, yes, yes.

[Operator Instructions] The next question comes from the line of [indiscernible] an individual investor. Sorry, to intervene. No, you are not audible, [ Mr. Mehta ].You may reconnect and join the queue. The next question comes from the line of [ Harsh Jain], an individual investor.

So my question is on the line of the delay of the work flow. So why there is a delay in both the plants, Jammu as well as Saudi Arabia. So I think it was -- it would be operational in Q4, but now it will be in Q2 of FY '27. So can you please give me an update on that?

So Saudi is pretty much on time. We are already doing the trials and everything. That's why we are confident of Q1 production. Jammu is slightly delayed due to the war and the natural calamities of the flooding and everything which happened this year. So due to that, a lot of the manpower, power, everyone came back and then it took us quite a bit of time to restart and rebuild all the activities. And that's the main reason why it is running slightly delayed.

Okay. Okay, sir. Understood. Understood. Okay. So also now your bid book is around INR 10,500 crores or INR 11,500 crores. So earlier, it was around INR 15,000 crores. So there is a lot of discrepancy. Can you throw me a light on this?

So these are bid books. Basically, we keep bidding a lot of projects. And the bid book actually changes very, very often, like we might be bidding hundreds of projects. And when the bids go away, certain we get, certain someone else get, certain we don't qualify. So when we say bid book is also -- if for taxation or duty reasons, we are not able to supply in that region. All those put together go into the bid book -- so that's why it is varying. And actually, if you see next month also, it will vary because every month, we are bidding so many projects worldwide.

[Operator Instructions] As there are no further questions from the participants, I now hand the conference over to the management for closing comments. Thank you, and over to you, sir.

Thank you, everyone, for the conference.

I thank all the participants for attending the call and showing confidence in our business and our results. Thank you very much.

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