Markolines Pavement Technologies Limited (543364) Earnings Call Transcript & Summary

Ladies and gentlemen, I welcome you all to the H2 and FY '25 post earnings conference call of Markolines Pavement Technologies Limited. Today on the call from the management team we have with us Mr. Vijay Oswal, Founder and Chief Financial Officer. As a disclaimer, I would like to inform all of you that this call may contain forward-looking statements, which may involve risk and uncertainties. Also a reminder that this call is being recorded. I would now request the management to run us through the presentation for the period ended 31st March 2025, the growth plan and vision for the coming year, post which we will open the floor for Q&A. Over to you, sir.

Yes. Good morning, everybody. Thank you very much for being with us on this call to understand what we do. And though I can't see the list, but I'm sure I must have spoken to or met few of you. And those who are meeting or attending this call for the first time, I'm Vijay Oswal as mentioned by Vinay. I am the founding member and the CFO of this company, and I welcome you all. Just to begin with, as most of you would know, Markolines Pavement Technologies Limited, we are the one of the leading highway maintenance company and basically operate into our 3 major verticals of the core services we can call as Highway Maintenance, Specialized Maintenance Services, and Specialized Construction Services. We are the first company to be listed on BSE who's in the infra segment providing these services to the various companies or the infra sector in India. We began our journey in 2002 with a single line product of road marking, and that is where our name come from as Markoline. But as we went on adding the portfolio, then we changed our name to Markolines. And from a single line product, here we are today, into the one of the leading maintenance services provider in India. The leaders in the organized sector, we are one of the preferred vendor in the, what do you say, the clients who are asset owners in India. Actually, the highway infrastructure scenario has been changing in the infra industry very fast. From BOT in 2009 to today we are at TOT and because of the TOT what has happened is lot of international players who has come in and because of that the outsourcing -- because first of all there is a huge focus on infrastructure because if you want to be a developed nation by 2047 which is the current vision of the current government. The infrastructure has to be developed and that is how the infrastructure is a growing sector. Because of the growing sector, there is lot of allocation happening and allocation at the same time government is looking at monetizing by privatizing the whole sector assets. They have done almost INR 40,000 crore to INR 50,000 crore worth assets have been monetized up till now and they have huge plans to monetize further. But with this privatization, road being a wear and tear item in nature, the maintenance is an inherent part of this particular sector, and that is where there is a huge potential coming in, always a recurring potential as well as since we are growing the infrastructure network at a very fast pace, we are probably at for now on the poor day average also has improved from very low in the prior to 2014 to today from if we look at 22 kilometers to 31 kilometers as of now as per the MoRD data. And privatization has also since the TOT packages are larger in size. So mostly the lot of foreign funds who are acquiring the assets because of the lucrative return on investment. The outsourcing is very obvious and it gives more chance for people like us to service them by way of providing these services to them. At the same time as we go ahead, we have always been adding the newer technologies, the various business segment to grow in terms of size, numbers and that is how -- and we are also one of the leading companies or the first companies who has brought in lot of newer technologies to India for in highway maintenance. We are the people who has reestablished microsurfacing in 2015 from no volumes or hardly any volumes done to today, huge number of volume done. We are the leading microsurfacing service provider and we have done the highest microsurfacing in the country. Then we are the people who introduced fiber-based microsurfacing, then we are people who have introduced the, what do you say, the recycling that is full-depth reclamation in India, CIPR in India. And only we have 2 years back we have entered into tunneling because as we are growing the maintenance projects will always be smaller in size to grow in number divided this vertical which gives the largest size contract, and also better return or the profitability for us which we have been talking about that slowly, slowly we want to increase the profitability for our company and which has started visible from this year. I'm sure you must have gone through the results, we'll reach there also and discuss about it. So we are one of the leading companies providing services and this year's result has given very good performance. Now as far as the leadership team is concerned, it is myself and Mr. Sanjay Patil, our Chairman and Managing Director who basically lead the company. He looks after the all the business development execution. I look after the -- other 2 directors we have Mr. Panchal as well as Mr. Nagarkar who looks after the various other functions of [ this thing ]. Now as management, I would like to also inform you that we have recently applied for the migration in the month of March. Our application has been submitted to the BSE. We have complied with all their requirements and documentation and we are awaiting their response or the approval. We are expecting it very soon and as soon as we receive the approval, we shall move to the BSE Mainboard. Apart from that, there is one more major corporate action that we have announced that is the amalgamation. As Markolines, we had 2 divisions, one was into the typical civil contracting and other was providing services. But after doing the various deliberations, we came to conclusion that if we merge these 2 portfolios, we can have the consolidation, optimization and the size consolidation for Markolines in the interest -- and better size or the representation in the market. So that is how we have announced the merger of Markolines Infra with Markolines Pavement and that is also been filed. We are in the process of completing the documentation as per the BSE and SEBI requirements, and we shall merge these companies once the all formalities and required approvals are in place as and when we go ahead on this particular journey, and this will definitely give better results in terms of the capital market also. Now coming to the -- if you look at our -- we have been -- we are providing services across Pan India except Northeast India where we have recently begun and now this year onwards, we are also looking at focusing on North East India because the maintenance will start there also soon because the road network is being developed recently. And as far as our clients are concerned, we cater to practically all the asset owners in India, all major multinational funds who own the asset in India are our clients and including few of the government and semi-government organizations like MMRDA, MSIDC, PWD, BMC, NMMC like that. And we carry a very good track record, Markolines, wherever we are standing today, we are standing out of our credibility and credentials which we have earned over the last 20 years. We are the market leaders in the organized sectors with a proven track record, excellent and experienced team and that is what has kept us alive and growing, of course, with the support of shareholders. Now coming to the industry, as I have already said that industry is growing at a very fast pace because that is the need because the infrastructure is one of the major contributor to the economy. We have been increasing, growing at a very fast pace. As I have already said that our road length have increased by 2.5x from 2014 where we were. Then the per day new road construction also has increased. Investment monetization has gone ahead. There are a lot of new projects that have been announced and there is huge allocation by government. There are various economic corridors, then inter corridors, access control highways, expressways, national corridors, there are a lot of projects that are coming in across India wherein in next 10, 20 years, we will be connected from any point of India to any point in India. So the projects which are coming is going to be a mix of these bundles like right from EPC to HAM to BOT or TOT. Then these are the various list of the projects which are already included in this presentation which you can have a look at whenever you feel okay. Now coming to the financials, as of today we have an order book of INR 357 crores and post that also we have added about close to INR 50 crores work order as we are talking and at the same time, we have about INR 500 plus crores of pipeline which we are always generally keep working on. As far as the margins, if you look at right from the EBITDA, EBIT or PBT or the PAT margins, all of them are on the upward trend. I have been seeing in my various presentations in the earlier this year or the rather last year that the FY '25 where we had put in focus onto the bottom-line wherein, we could optimize and consolidate our operational efficiency and the results are seen in this financials. Our net PAT margins have increased by about 381 basis point and of course, the contribution as we have been saying that by adding the specialized construction which will give us slowly, slowly increased bottom-line and the results are now visible after 2 years of specialized construction. So as far as the P&L is concerned, we have already displayed now revenue -- though there is a drop in revenue from INR 350 crores to INR 307 crores, it is mainly pertaining to the -- we have experienced the wettest monsoon last year because of which our H1 was had a bad hit in terms of performance, but our operational team could manage well and do quite good in terms of H2 and out of that also if I have to really tell you in Q3 and Q4 if I have to compare, the 70% of the H2 turnover has come from Q4 and that is the only reason that you would also see the increase in the trade receivables. One of the major reasons for that because almost INR 150 plus crores of work have been done in Q4. So if you look at the financial highlights, as I said, turnover dropped but we've given the better results in terms of our EBITDA PAT. PAT has grown from INR 17.3 crore to INR 22.56 crore in this year. And -- so if you see all our ratios they have been improved in terms of the profitability and that has obviously shown on the EPS which has increased from INR 9 to INR 10 this year which is about 11% hike year-on-year over last year. Yes, next. So this is in nutshell from our side. Now we can open the [ this thing ] questions. You can write to [ Mohsin ] or he could moderate. Mohsin, can take the questions one by one?

[Operator Instructions]

Sir, we'll take the first question from [ Ragav Agarwal ].

Congratulations on a good set of numbers sir. But firstly, sir, I just wanted to understand that if I look at the FY '25 segmental numbers, the increase in profitability has largely been driven by specialized construction and particularly in H2, the share of specialized construction has also gone up. In the order book too, I see a lot of almost 75%, 80% is specialized construction. Just want to get your viewpoint on are we pivoting more towards specialized construction as opposed to road maintenance or how do we expect the split between the 2 businesses going forward?

See the highway maintenance as I said is a recurring activity which runs on a periodic basis like for any particular highway if we do a major maintenance which is the statutory requirement or the performance requirement when we construct the highway once in -- approximately once in 5 to 4 years. So typically, the maintenance cost would be on a very thumb rule if I take it will be about INR 1 crore per kilometer of the work we do. So the maintenance contract sizes are generally would vary from about INR 40 crore to INR 60 crore or maximum of INR 75 crore from particular one client over one stretch of road. So they would always be in a consumptive type of nature. So the percentage of the, what do you say, the major maintenance orders would always be in a varying number because they will keep coming and we will keep consuming the orders, right? As far as major maintenance orders are concerned, they are large size orders, but their tenure also is longer. It would be from 2 years to 4 years. So because of that at any given point of time, if you see, probably the major maintenance number would be more. But definitely going forward if we compare, it would always be the major the specialized construction number would be more in size because the projects -- because of the project size and definitely we will be doing that also. At the same time major maintenance which is where we started from is definitely is going to be a part of our portfolio and we intend to be with all these segments, but to increase these sizes going forward we slowly these specialized construction sizes will keep on growing.

So any rough guidance on what the split of the business would look like, say, 2, 3 years from now between the 2 verticals?

Between the 2 verticals, if you see, let's say this year, it is 70-30 percentage wise if I have to talk in terms of the business done. But going forward, I see we could be about 50-50 in this particular or maybe in a year's time from now and slowly as I said the volume would always be bigger in the specialized tunnel. Just to give you an idea, the one tunnel project which we are working in Maharashtra is to the tune of INR 300 crores. Whereas the -- so if we get a one project of a larger size in specialized construction, obviously the percentage would change. But we are hoping that this year we should be close to 50-50.

And if I may just squeeze in one last question on the same. In the margin profiles and the working capital profile how do the 2 businesses stack up against each other, sir?

So as far as the margins perspective, as I said, margins are definitely better in the specialized constructions. And working capital wise, if you look at the larger projects would also require more working capital, but if we compare it to the turnover and over the period spread out, percentage wise, it will be bit lesser than the MMR because major maintenance programs, the projects are spread over only 6 months of project with the average 90 days of billing cycle if I consider. We generally require about 25% of the working capital of the RSS.

We'll take the next question from [ Nitin Verma ].

Vijay, congratulations on good set of numbers. My question is regarding Markoline Infra merger. I just want to understand the time line when we are expecting it to get completed and also what are the -- if you could elaborate some numbers of Markoline Infra which we had this year -- I mean FY '25.

Yes, sure. So we have announced the merger in the April 22 Board meeting. We have done a first set of submission to the BSE. Now there are certain queries which are running back and forth and we will comply with every query, and thereafter it will be subject to the -- it is to be approved by the BSE then it is to be approved by the NCLT. So approximately we are expecting about 6 to 9 months of time frame for completing the merger. We would be always hoping for the shortest possible time but since it is subject to the approvals from the authorities that is the time line we are looking at. So before this year-end we should be the merged entity. As far as the tentative number, the -- why tentative? I can give the numbers of the Markolines Infra we did a revenue of about INR 133 crores there with the bottom-line of 12.29% as PAT. Basically, this company is purely into the providing services. As far as percentage is concerned it is about 11.64 percentage that is the bad percentage to the turnover.

Okay. And what is the outlook after merger that you are looking to achieve?

So basically these are the 2 group companies which we have been operating and separately -- basically the skill sets required are separately. But with this we can have the consolidation in terms of the -- one sec. Because the services -- as a service provider, Markolines Infra, generally we are always available on the road. So we will have a good information, real time information on the projects which we are handling. When it will come to the bidding, we will have better understanding of the roads or the tenders. So it will also increase our chances of winning the particular vendors and also we will get the edge over when we are there already operating those roles.

Okay. And my last question, can -- if possible, could you please do the consolidated projection for next year or this year, what we are looking at?

Sorry, sorry. I did not get.

I mean, the numbers, the consolidated numbers of Infra and when the merger will be completed, the consolidated numbers that we are looking to achieve in this year-end and by next year-end?

We can do that, but I don't know whether we can publish it or not. We'll have to check the provisions if permitted then definitely we will publish that also. We can.

We'll take a question from the chat which is a similar question that after merger what will be the total order book and total revenue?

So see, if I just look at the total order book what we are looking at, generally the Markolines Infra contracts they are recurring in nature basically they run on monthly billing basis because they are services. We do approximately INR 10 crore to INR 11 crore of billing per month. So now even if I consider INR 133 crore it would be about -- so this is -- that will only take us to beyond INR 400 crore. And we are also -- as Pavement also we are looking at good number or the good increase this year also because we are eyeing on a few large size contracts which we should be in a position to close very soon. Monsoon is the time generally these contracts are discussed or bided and concluded for so that we can start the work post monsoon. So we are looking at a good growth this year also.

This question was from [ Prakash V.] He further asked that, can you throw some light on the transferor company, their revenue, PAT et cetera? What is the promoter holding in the transferor company, and mention their few major clients?

So I think I just explained about the -- probably this question was must have been before I explained about the Markolines Infra numbers. As I said, still I repeat as well as Markolines Infra is concerned INR 133 crores is the top-line 12.29% is the PAT that we have given this year. And as far as clients are concerned, now this is a very limited impact Infra industries known by very limited number of asset owners. Of course, NHI being the largest asset owners and -- but otherwise in the private sector, the entire assets are owned by very at the most maximum 20 number of asset owners and out of that majority is now owned by, held by the international funds like I Squared Capital, Brookfield, Macquarie, Actis and they hold probably in the private sector they are very hungry on acquiring the assets. They hold about 70% of them 5, 7 people of them. So if you consider the clients, they will always be a similar and same in both the companies. Only thing is it will -- in payment the listed entity we keep changing the projects because it is recurring activity once in 5 years whereas in Markolines Infra if the project is acquired generally, we can continue with the project for years together. The oldest project together today is I am operating close to 16 years one of the oldest project in Infra.

Any road map when our company will become INR 1,000 crore company future ambition of the management?

So thank you Prakash for such a good distinct vision we are also looking at, but as far as the listing we are also looking that in another 3, 4 years we should be crossing the INR 1,000 crore mark and we will put in our best to achieve that mark at the earliest if we can even preport it by 1 year, we would be greatly happy with that.

And his last question is that is Infra same like IRB Infra, mean business sense, tool collection is also the revenue, is my understanding, correct, is what he's asking. Vijay, sir you are on mute.

Yes, yes, because my reconnection -- connection reset. I lost your question. Can you just repeat the question? Sorry.

Sure, sir. Prakash V. is asking is Infra same like IRB Infra? Mean business sense, toll collection is also the revenue. Is my understanding correct is what he's asking.

Okay. So partly yes and partly no because IRB is also the asset owner and they do lot of activities in-house. So as far as the, let's say road construction division of IRB is concerned, it is different. We are not as of now, we are not into the road construction or as asset owners to take the bid, construct the road and recover money by way of big tolls. We are -- as of now, we are providing the services for the maintenance of the once road once completed, as Markolines Pavement. And in Markolines Infra, we provide them with services like operating their toll projects, surveillance of the roads, providing the emergency services on the highways, then the routine maintenance that also involves right from cleaning to the horticulture services. So in a way we could be similar to the one of the section or part of the IRB.

We'll move on to Ragav Agarwal.

Sir, just wanted to check on the shareholding pattern of Markolines Infra as of today.

So Markolines infra shareholding pattern once -- let me just -- Infra. Can I just -- so as of now if you just -- I do not have that exact numbers so if you just give me a moment I will pull the data, but we are -- currently we are about 58% in Markolines Pavement and post-merger we should be about 60%, 61%.

Right. So the -- that's no worries. Can look at the data later, but largely owned by promoters, right?

Yes. Yes. Yes. Similar, similar share only in both.

And lastly, sir, on the order winning rate, sir, and this might be just a blip, but in the last H2 FY '25, the order execution rate has been faster than the order winning rate. So do we expect that to reverse? And like, what is the projected order intake we expect for the next 1 to 2 years?

So, Ragav, that's what I explained you before also in one of the question there. The major maintenance activities or the orders keep coming and rotating. As far as the order book is not a very static, what do you say, the number. If you have just seen our announcement, I think just to let you know we have one another, today only we have got a confirmation for about INR 25 crore -- close to INR 25 crore on order and in this last 1, 1.5 month we have already closed the orders worth INR 50 plus crores. So they will keep moving up and down. So it is not -- generally we would have about INR 300 crore to INR 400 crore of orders in hand.

[ Chitresh Lunawat ] has a question. Chitresh, if you can unmute yourself and ask.

My question was for Markolines Infra. At what valuation have we raised funds from outside? Like, I think there was a fund raise happening for 4, 5 months. So at what valuation was the fund raise happened?

INR 100 crores. I suppose it was INR 100 cross.

So that was the only fund raise this happened or there has been multiple fund raise that happened?

No, no, no. That is the only fund raise.

Okay. And currently, when we are amalgamating, how much is the value we are giving?

About INR 263 crore.

Okay. So people -- the investors who invested before 6 months, so they have got 2.5x money?

Yes, because this year also the results were also better, the improvement in the performance.

Okay. And sir, anything on the ILFS Engineering thing like which we were planning?

Not really concluded. We are still hoping for the NCLT is not yet cleared anything. So there is no update as such on that. Just still in the process.

And regarding warrants, sir, I just wanted to know like what percentage of money have you got and how much is…

So we have received 25% of the warrants within -- they were insured with a time line of 18 months.

Yes. Out of the remaining have anyone paid or like?

Not yet. Not yet. We are hoping to close it this -- of course, they will have to close this financial year.

[ Abhishek Agarwal ] please unmute and ask.

So my question is regarding the consortium that we were bidding for an asset of ILFS, if I'm not wrong. So what is the update on that? And what is the business with respect to tunneling that we expect?

Okay. So Abhishek just before this question I answered that since it is -- it has to follow a lot of process because we have gone through IBC like process, the NCLT is involved and there is no progress as of now in terms of the deal or it is still not being approved by the Boards there. It is still at the same stage where it was. Now your second question was in terms of tunneling. What is exactly that you would like to know so that I can explain it in a better way.

I want to learn about what is the prospect of our tunneling business if we are not able to take word the company in the NCLT and if we go ahead on our own, what is the kind of momentum or prospect that we see for our tunneling business?

So first of all, our current business is a risk irrespective of the proposed bidding that we have done for the acquisition, okay? One. Now as far as tunneling business is concerned as of today, we have 2 projects one in Maharashtra and one we have -- one we are doing in Jammu Kashmir. The Maharashtra project cumulatively is about INR 30 crore, INR 350 crore on put together it will be out of it we've done about INR 172 crore or INR 180 crore. And on the Jammu Kashmir project it is a very long project we've just began. It is a 4.2 kilometers of Twin Tube between Jammu and Srinagar. As far as the progress there is concerned, we have done about 1 kilometer of progress from the tunnel up from one side. As far as business prospects are concerned, the tunneling is one of the very much growing potential because to increase the average speed the tunneling is a very good solution and we are doing tunneling across India and we see very good prospects in terms of business and adding at least one more project this year. We are hoping for that.

And what kind of projects do we envisage from tunneling? I mean, what size and quantum?

So tunneling project by and large would -- minimum would vary from at least INR 200 crore to INR 400 crore depending upon the size of the tunnel, the length or that is length.

And normally, what is our portion? I mean, the quantum that we bid or we work on?

Means? I did not get your question, Abhishek sorry.

I mean, do we execute all of the project by ourselves? Or do we partner with people? And what is our quantum then?

So, it depends. There are various things like Jammu Kashmir project as I said we have taken in consortium because it's a huge projects and different, different skill sets are required. Whereas Maharashtra project we are doing on our own where we are working with the subcontracting party there which are working. So it depends upon to the project -- it will vary from project to project, but as such we have a capacity and capability of doing everything at our on our own.

Sir, we'll take the question from chat from [ Soham Pimpale]. It's, are we using the white topping technology as well?

Sorry, which technology?

White topping technology. White topping.

White topping technology. As till now we have not done the white topping, but recently we are looking at few projects and we were -- we are bidding for it demos.

Sir, I had a question regarding the specialized equipment that we have. Are there any plans to add the specialized equipment?

No, not immediately. We have the -- as I said that the specialized equipments like the microsurfacing pavers and the recyclers that we have already we have. So they should suffice as of now.

So what budget has been allocated?

So this year we are not looking at adding any major, this thing, investment because we have already acquired few of the whatever was to be acquired last year. So this year we are not looking at adding any major this thing otherwise the hot mix plants and they are always as in requirement if more number of projects comes and as in they get older based on the client's requirement we keep doing that.

We'll take the question from [ Sandeep Biani ] from chat. He asks, since major of orders in FY '25 were completed in Q4, hence receivable cycle increased more than 200 days. What is the average receivable cycle in a normal scenario?

So generally, 90 to one 120 days is what we say. If we average it out over the year like if you look at -- I think last year we were close to 100 days. And now when you see as we are talking the majority or a major portion of the receivable has been received in the past 1, 1.5 month more than -- we have already recovered more than INR 50 crore, INR 60 crore out of the outstandings as of March.

And he asked that do we see any non-recoveries as I guess most of the projects are from government entities?

No, we don't see a few of them which are we have already said the earlier ones. We are on the in the court of law and we are very -- we have already recovered few and we'll be recovering every.

[Operator Instructions] We'll take the question from [ Abhishek Agarwal ].

Just one last question from my end. Sir, what is that one thing or 2, 2 things that we look forward to or that excites us going forward that will catapult us to a different orbit or help us achieve much greater revenues exponential revenue growth.

Thank you, Abhishek. This is a question which is close to our heart or any promoter of the company would be that is growth. So in the industry as you grow your credentials and the experience always count and your eligibility increases. So by completing the projects whatever we are -- in hand, we are -- we would be eligible for very large size of projects. Up till now if we were only doing maintenance projects, but since we have completed our close to INR 200 plus crore of work in the first tunnel work. Now our eligibility is more than the INR 500 crores. So we will be definitely looking forward to bidding for the higher size of projects. So that will definitely give a rise in terms of revenue and the growth also over the next few years. That's what we are looking at.

Sir, we'll take a question from the chat from Nishchay Mehra. He is asking, what was the main reason for the drop in the revenue?

Drop in the revenue basically it -- as I have already said the H1 we suffered because of the wettest monsoon, the performance was low and it also continued for an extra time. So our work could start only very late in the Q3 and we could do much, much better work in Q4. And I think I missed one point. Abhishek had asked what excites us. So I'm sorry Abhishek for missing, I just realized you had asked me. One is the growing potential or what is the way we are growing and we see a huge potential and as far as Markolines is concerned, the credibility that we carry in market giving us an edge over the competition, the preference or the preferred vendors in terms of the [ this thing ] and as I have spoken about the size. These are the things that excite us into this particular theme. To be honest, once we had a vision of being an Indian originated MNC, but looking at potential we feel that it is really the -- if India with a large terrain like what we have, it is -- there's huge potential in India itself.

Sir, Nishchay Mehra further asked what is the execution time line of the current order book?

So it would vary from a project to project. Generally, the maintenance -- major maintenance projects would be completed in 6 to 8 months' time by and large unless it is more than INR 75 crores, INR 80 crores then that period would go to 12 to 15 months because of the monsoon break. And on the specialized or tunneling projects like work the time lines would be spread across 2 to 4 years.

And he is asking about margins. How are the margins in different verticals? Which vertical has the highest margin?

So specialized construction vertical definitely has higher margin than the major maintenance because as of now when we are working in major maintenance, we are working in the private industry. So generally, there the payments are prompt but the margins are thinner. Whereas the major -- the specialized construction, this thing, they are longer in tenure and wider scope which also gives us the better profitability.

And Mr. Nishchay Mehra further asked what is the cash conversion cycle management sees going forward?

The payment cycle?

Cash conversion cycle going forward.

So approximately -- see, it will -- as we see that it will you know if we really look at the closing numbers it will keep varying. But by and large our cash conversion cycle is about averagely 90 days. 90 to 100 days is the general cash conversion cycle.

Sir, we'll take the next question from Nitin Verma.

My -- the last question is why is the promoter shareholding decreased?

So -- sorry, the promoter share percentage has decreased because of, one, is because of the addition of the preferential issue that we did in the month of September. So if you look at really the number of shares that the promoters have, there's hardly any change.

Sir, Nishchay Mehra has another question in chat. He is asking what are the margins in number if you can give?

Number so -- one second, let me just have a -- so as far as the -- if we look at the grossly that about we can say 12% in terms of the, what do you say, major maintenance, but as I said, that the turnaround times is faster and it would be 18 to 20 in the specialized construction. It will vary also from the activity to activity or the belief to belief what we do in a particular period of time based on the activities that we do, but if there are specific activities which are being completed in a shorter period even if it is a long cycle -- longer project, it gives better this thing. But on an average, it would be about if you have [ 2 ] numbers, it would be 12 in terms of the major maintenance and about close to 18 in terms of the specialized construction.

Sir, since that is the last question for the day, would you like to give any closing comment before we end the call?

Okay. Sure. So guys, thank you very much for being with us and wanting to hear about what we do here. As management, I can -- want to definitely tell one thing that we are committed, we are basically the technocrats, we have always believed in business and we will, definitely, be our focus is always going to be remain on business and grow. We will keep up to every -- try our best to keep up to the commitment of all the stakeholders and out of this also if there are any questions, queries, if we have missed out on to any things you can definitely write back to us and we would be happy to answer. And looking forward, we are also looking very excited for this particular FY '26 because a lot of things are going to happen like migration, merger and new business coming in. That's all from our side. Thank you very much. Thank you, Vinay, and entire Kaptify team too.

Thank you. Thank you, sir. And thank you to all the participants for joining on the call. And thank you to the management team. This brings us to the end of today's conference call. Thank you.

Thank you. Thanks a lot.