Patel Engineering Limited ($531120)

Ladies and gentlemen, good day, and welcome to the Patel Engineering Limited Q4 FY 2026 Earnings Conference Call hosted by Valorem Advisors. [Operator Instructions]. Please note that this conference is being recorded. I now hand the conference over to Ms. Purvangi Jain from Valorem Advisors. Thank you, and over to you, ma'am.

Thank you. Good evening, everyone, and a very warm welcome to you all. My name is Purvangi Jain from Valorem Advisors. We represent the Investor Relations of Patel Engineering Limited. On behalf of the company and Valorem Advisors, I would like to thank you all for participating in the company's earnings conference call for the fourth quarter and financial year 2026. Before we begin, let me mention a short cautionary statement. Some of the statements made in today's earnings call may be forward-looking in nature. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ from those anticipated. Such statements are based on management's belief as well as assumptions made by and information currently available to the management. Audiences are cautioned not to place any undue reliance on these forward-looking statements in making any investment decisions. The purpose of today's earnings call is purely to educate and bring awareness about the company's fundamental business and financial quarter under review. I would now like to introduce you to the management team joining us on today's call. We have with us Mrs. Kavita Shirvaikar, Managing Director; and Mr. Rahul Agarwal, Chief Financial Officer. Without any delay, I request Ms. Kavita to start with her opening remarks. Thank you, and over to you, ma'am.

Good evening, everyone, and thank you for joining us today for Patel Engineering's Q4 and FY '26 earnings call. I extend a warm welcome to all our stakeholders and analysts joining us here. We truly appreciate your continued trust, encouragement and support towards Patel Engineering. We have uploaded our investor presentation, along with the financial results on the stock exchange for your reference. I will begin by taking you through the key highlights for the year, the progress we have made across our projects and share our outlook on the infrastructure sector and growth opportunities ahead. Following this, our CFO, Mr. Rahul Agarwal, will walk you through the financial performance in detail. FY '26 has been another important year in Patel Engineering's journey. Despite the competitive environment and industry-wide challenges during the year due to geopolitical situations and other factors, we continue to focus on disciplined execution, selective bidding, balance sheet strengthening and building a high-quality order book with projects where our execution expertise creates a competitive advantage. Let me start with taking you through the key developments and the order inflows during the year. During FY '26, we secured new orders worth around INR 4,400 crores across hydropower, urban infrastructure, irrigation, and other segments. This order wins further strengthen our execution visibility over the coming years, and reinforce our position in complex infrastructure projects requiring strong engineering capabilities and large-scale project management. Speaking about the orders secured during the year, the largest order secured was the around INR 1,300 crores Kondhane dam project from CIDCO in Maharashtra to improve the water supply in the region. The project involves construction of the dam along with hydromechanical and electrical work, including radial gates and allied infrastructure. This project significantly strengthens our presence in Maharashtra and further enhances our positioning in the urban infrastructure segment, which we believe will continue to witness strong investments over the coming years. In the hydropower segment, we secured around INR 700 crores HEO -- HEO hydropower project from NEEPCO. The scope includes civil and associated infrastructure works along with testing and commissioning of hydromechanical systems for the 240-megawatt hydroelectric project. We also secured around INR 900 crore project being one of the package of Renukaji Dam project from HPPCL. The scope includes construction of major diversion tunnels, hydromechanical systems and associated infrastructure work, which further reinforces our strong hydropower expertise. In Sikkim, we secured the INR 240 crore Kista (sic) [ Testa - V ] power station project from NHPC, involving tunnel freeway, (sic) [ spillway ] construction, and associated infrastructure works. In the Irrigation segment, we secured around INR 958 crores Nira Deoghar Right Bank Main Canal project from Maharashtra Krishna Valley Development Corporation. The project includes development of pipe distribution network. Our share in this project is INR 192 crores. During the year, we also secured two packages of INR 798 crore project, which was for the coal mining contract in the area of Madhya Pradesh, where principal is South East Coalfields Limited. On the international front, we secured INR 231 crores Turkilli (sic) [ Dorjilung ] Hydroelectric Power Project in Bhutan. The project includes construction of diversion tunnels, road tunnel, and hydromechanical works. This project is strategically important for us because it further strengthens our international hydropower credential and enables us to put our footprint in Bhutan, where substantial hydropower development opportunities are expected in coming years. Overall, our order inflows during the year have been well diversified across sectors and geographies and provide strong medium-term revenue visibility for the company. With this, as of March 31, 2026, our order book stands at INR 15,119 crores. The composition is hydropower 63%, 16% is irrigation, 5% tunneling, 10% from urban infrastructure and remaining 6% is roads and others. Further, we already started FY '27 on a positive note by being declared L1 for another INR 1,600 crores worth of orders, which gives us good momentum entering the new financial year and gives us confidence about future growth visibility. The diversified order book positions us strongly across multiple infrastructure themes, which are expected to drive India's next phase of infrastructure growth. Apart from above, we have currently submitted tenders of around INR 6,000 crores, which are currently under evaluation. Further, we have identified and evaluated an immediate pipeline of around INR 20,000 crores, which we plan to actively pursue over the next few months. Beyond this, there are another INR 40,000 crores worth of projects to come up for bidding in next one year. Therefore, the opportunity pipeline with [indiscernible] across sectors remains extremely strong. Now let me share some key operational highlights and project execution updates during the year. As guided earlier, revenue in FY '26 has crossed INR 5,000 crores, and we achieved revenue of INR 5,103 crores. During the quarter, we witnessed consistent progress across all our project sites and several important milestones were achieved. On the hydropower front, work at Subansiri Lower Hydroelectric Project continues to progress well. With the recent commissioning of Unit 4, the project now has 4 operational units, contributing 1,000 megawatts of clean energy to the national grid. Work on the balance units is also progressing steadily. Civil works have been completed after Unit 6 and execution remains on track across the remaining sections of the project. All 8 units are expected to be operational in this financial year. Another major achievement during the quarter came from our CIDCO treated water tunnel project. I'm extremely proud to share that the project achieved a record tunneling progress of 812 meters in a single month during January 2026, setting a national benchmark across TBM tunneling execution. We also completed around 6.2 kilometers of tunneling and achieved a successful TBM breakthrough at the site in this quarter. Our projects in Jammu and Kashmir, particularly the Kiru and Kwar HEP projects, are also witnessed strong progress during the quarter with concreting activities progressed at full scale. During FY '26 across our major project sites, we executed more than 13.5 lakh cubic meters of concreting works and completed reinforcement works of nearly 60,000 metric tons. Now let me briefly touch upon the industry outlook and opportunities ahead. We remain highly optimistic about India's infrastructure growth story. The Union Budget 2026 -- '27 has further strengthened our confidence across sectors where we operate. The government has increased planned capital expenditure to record INR 12.2 lakh crores, reaffirming its continued focus on infrastructure-led economic growth. Indian Railways has received its highest ever allocation of INR 2.78 lakh crores. Importantly, the government has announced 7 high-speed rail corridors across the country. Many of these corridors pass through difficult terrains, including the Western Ghats and Himalayan regions, which will require significant tunneling and underground engineering expertise. This creates a very large long-term opportunity pipeline for us, considering our capabilities in underground and complex tunneling works. India is also witnessing rapid growth in metro infrastructure with the government continuing to invest heavily in urban transport across major cities, large metro projects are under implementation or planned across cities like Bengaluru, Mumbai, Chennai, Pune, Hyderabad and Delhi. These projects are expected to create significant opportunities in tunneling, underground stations and associated urban infrastructure works over the coming year. Similarly, the government is also focusing on RRTS, Regional Rapid Transit System projects, which are being developed to improve connectivity between major cities and nearby regions. These projects are expected to generate substantial opportunities in transportation, tunneling and underground infrastructure. Now coming to hydropower, we continue to remain extremely positive on the hydropower opportunities both with India and internationally. Agencies such as NHPC, SJVNL, NEEPCO, and NTPC together have a very large upcoming pipeline exceeding 30 gigawatts. Some of the key projects expected to come up for bidding in near term include Savakot (sic) [ Sawalkot ] project of 1,856 megawatt, Kalai-II of 1,200 megawatt, Kamala of 1,720 megawatt, these projects are in advanced stage of clearance and would be out for bidding very shortly. Also, projects like Upper Karnali of 900 megawatts, Avans (sic) [ Upper Subansiri ]1,600 megawatt, [ Kirkai ] 820 megawatt, Italian of 1,000 megawatts to come up for bidding in the near future. In addition, pump storage projects are emerging as a major future opportunity. The Central Electricity Authority has outlined a road map targeting 100 gigawatts of pump storage capacity by 2035, '36, which significantly expands the future opportunity size for companies operating in hydro infrastructure and tunneling. Internationally as well, countries like Nepal and Bhutan continue to offer substantial untapped hydropower potential. In the last quarter, we have been awarded a package in the Dorjilung project in Bhutan and have expected our presence in the region as well. In Nepal, we continue to execute work at the Arun-3 Hydropower project. During the first quarter of FY '27, we have been declared lowest bidder L1 for the Lower Arun project value at approximately INR 1,600 crores. This project is very close to our existing Arun-3 project site, giving a strong logistical and execution advantage. Collectively, Nepal and Bhutan have an untapped hydropower potential exceeding 70,000 megawatts, and we will continue to actively evaluate opportunities in these markets. Now on the water infrastructure side, the opportunity landscape remains highly attractive. The government's National River linking program has now moved into active implementation phase. The Ken-Betwa River Linking project, which is the first 30 identified inter-basin links major river linking project has already commenced execution while DPR for several more linking projects are in advanced stages. Simultaneously, Maharashtra's planned irrigation investments and enhanced allocation under the Jal Jeevan mission are expected to create significant opportunities for our irrigation and tunneling business over the medium term. Now let me briefly update you on the balance sheet and asset monetization, which was concluded during the year. In line with our strategy of monetizing approximately of around INR 150 crores of non-core assets annually during FY '26, we successfully completed monetization of certain non-core assets and realized approximately INR 185 crores. This included around INR 135 crores from land sale and around INR 50 crores through arbitration awards under [ NTIO. ] We also successfully completed our right issue during the year. The inflows from the rights have been significantly strengthen our balance sheet, supported working capital requirements for ongoing projects and enabled significant debt reduction of around INR 450 crores during the year. With a stronger balance sheet and improved liquidity position today, we are well positioned to scale up execution across newly secured and upcoming projects while maintaining financial discipline. To conclude, Patel Engineering enters FY '27 with a strong order book, improving execution momentum, a healthier balance sheet, and a very large opportunity pipeline across sectors. We remain committed to sustainable growth, disciplined bidding, and operational excellence. With the recent order inflows and further order opportunities expected during FY '27, we expect revenue growth momentum to strengthen meaningfully from the second half of FY '27 onwards. Considering our current order book and strong future pipeline, we expect FY '27 revenue to grow by 10%. With that, I will now hand over the call to our CFO, Mr. Rahul Agarwal, who will take you through the financial performance in greater detail. Thank you.

Thank you, Kavita. Good evening, everyone, and welcome to the earnings call. I'll now take you through the company's financial performance for Q4 and full year FY '26. For Q4, on a consolidated basis, our revenue is at INR 1,421 crores. Operating EBITDA is INR 215 crores with a margin of 15.14%. Profit after tax, it is at INR 71.5 crores, compared to INR 32.8 crores in Q4 FY '25. On a stand-alone basis, revenue is INR 1,413 crores. Operating EBITDA is INR 210 crores with a margin of 14.89%, and profit after tax is INR 96.9 crores, compared to INR 36.61 crores in FY '25 Q4. Coming to financial performance for full year. Revenue from operations is at INR 5,102 crores as compared to INR 5,093 crores in FY '25. Operating EBITDA is INR 684 crores with a margin of 13.41%, and profit after tax is INR 294 crores as compared to INR 242 crores in the previous year, which is up by 21%. On a stand-alone basis, revenue is INR 5,066 crores as compared to INR 5,007 crores in FY '25. Operating EBITDA stands at INR 659 crores with a margin of 13%. Profit after tax is INR 319 crores compared to INR 259 crores in FY '25. Sector-wise revenue breakup is hydropower, 55%; irrigation, 23%; tunneling, 17%; roads, urban infra and others, 5%. Now coming to debt and working capital. The consolidated gross debt as of March 31, '26 is INR 1,187 crores compared to INR 1,645 crores at the end of FY '25. And the debt numbers have come down significantly by INR 458 crores as compared to the previous year, majority of which has reduced in the last quarter due to right issue. Client advances as of March 31, '26 is INR 622 crores compared to INR 665 crores at the end of FY '25. Debt-to-equity ratio has improved to 0.27 as compared to 0.43 as of March '25. Breakdown of debt. So out of the debt, INR 847 crores is working capital and INR 340 crores is term debt, which includes OCD, NCDs and the project-specific debt. So working capital, the net working capital days is around 120 days and the net adjusted working capital is 106 days. Now coming to the exceptional items during the quarter. So during the quarter, we have provided for impairment of investments made in hydro subsidiaries of approximately INR 56 crores, considering the feasibility of revival in the near future. And in the quarter, we have already signed the MoU, which is for Gongri project. Further, as part of our non-core asset monetization strategy, we have decided to sell our investments in the toll road project, ACP Tollways, where we have 32% stake. We have received an offer of INR 55 crores for the same and hence provided for INR 30 crores being the difference between book value of investment and which was made in 2011, '12. Considering that any equity return from the SPV shall be possible only after repayment of the debt in the SPV, in NPV terms, this expected realization is considered reasonable. So the above monetization will be towards our target monetization from INR 150 crores to INR 200 crores during the year from non-core assets. That concludes the financial overview. We are now happy to take any questions which you have.

[Operator Instructions] First question comes from Pritesh Chheda from Lucky.

Sir, what was the market share that you had in the hydropower order wins that you have, which is INR 4,400 crores minus INR 800 crores, so about INR 3,600 crores of inflows. So what was the market share?

So see, if you talk about the success ratio last year, we -- if we exclude one large project of [indiscernible] almost INR 16,000 crores, INR 17,000 crores, then it is around 25%, 30%. And if you include that, it is coming to around 12%, 13%.

So if it is 12%, so which means closer to about INR 3,000 crores of inflows were given. And with that last project INR 16,000, so with that project, we lost the bid and why did we lose the [ other ]?

So there was very competitive bidding done. So we -- somebody took it at a very low value. So we didn't get it.

Okay. Is it a new player? Or is it an old player?

A new player.

Okay. The other thing is on the -- why have we taken this coal binding works? Is this first time that I'm seeing taking MDO project?

So we are trying to explore new opportunities, and we got this project. And this is a small project actually 7, 8 years.

It's executable over 8 years.

Yes, yes.

Okay. And my last question is what kind of inflows are expected this year? What kind of order finalizations are expected this year? And you had given a revenue guidance last year about not growing, which happened the same. How do you see FY '27 panning out?

Yes. So FY '27, we expect around 10% growth in the revenue.

And on the order side?

Order side, see, this year is a good beginning. We are already L1 in INR 1,600 crores worth of job. So we expect around INR 8,000 crores new order book during the year.

The next question comes from the line of Ritesh Poladia with Girik Capital.

Sir, just wanted to know about your exceptional items. There is a debt and advance written off of INR 153 crores this year. Last year, it was INR 270 -- INR 280 crores. So is there anything remaining to be written off? Or this is end of it?

No, no, this is -- there is nothing remaining to be written off. So last year, we had done Vivasi (sic) [ Vivad se ] Vishwas settlements, around INR 150 crores Vivad se Vishwas settlement was done. For that, that exceptional item was there. This year, this quarter, I've already explained because two investments. One is for Hydro subsidiary. where we have revived one project and the other projects we are thinking that it will take time, so we have written off that. And one is for the toll road project, where we have got an offer from the -- for INR 55 crores and investment was around INR 85 crores. So we have provided that. And in the previous settlements for litigation and also that provision was done. So there is nothing remaining.

Okay. And also, there is some excess credit written back of INR 100 crores. So is there anything on that part still pending or even that is over.

No, no. Everything is over. There is not much excess credit written back of INR 100 crores this quarter, I don't know from where you're getting it, but...

It's on cash flow statement. There is a third last statement in the activities.

Yes, for the full year. Right, right. So that -- see basically, what happens is the projects will get concluded during the year. So from that project, whatever balances are there, receivable payable, that we have to write back and write off.

So where will be the corresponding entry for this?

So that will be mostly other income.

Mam said that expected order win is of INR 8,000 crores. If you can give some more ideas of what are the projects you are targeting?

So as we said, INR 6,000 crores projects were bid already submitted, which is under evaluation. Another INR 20,000 crores we have identified, which includes metro, which includes hydro and education projects where we are going to bid in near future. Another INR 40,000 crores, which will come up for bidding in next one year. So more or less, it will remain in the sector where we operate in.

The next question comes from the line of Viraj Mahadevia with Moneygrow.

Congratulations to the team on the stable results and particularly the high free cash flow generation. I wanted to understand, Rahul, what is driving this high free cash of INR 450 crores in FY '26? And is that likely to continue going forward?

So see, the free cash flow, we have come -- it is a combination of what we have got from projects and non-core asset monetization. So we expect that to continue.

That should continue. And in that case, given the high cash flow generation, the debt paydown, both from organic cash as well as the rights issue, which I'm not sure if all the cash has already been used to pay off the term loans. Can you guide us towards an interest cost for the next financial year?

See, cost for the next financial year overall may not change drastically because -- so whatever borrowing has been reduced this year, new projects, whatever we expect, there will be some advances taken for that. So some interest will come for that. But what we expect is the interest cost will not go up drastically from here. It will remain around that region.

But presumably, you will also repay some principal, right? -- of the term loans. So that should come down.

That will come down. So if we take new projects of around INR 8,000 crores, say around 8% to 10% advances may come for equipment and for mobilization. So INR 700 crores, INR 800 crores advances will come and there will be repayments also. So overall, we don't see the interest cost going up.

Okay. And in terms of noncore monetizations, you've highlighted that you monetized INR 185 crores this year and arbitration money was how much in FY '26? And can you guide us towards those two numbers for '27?

F '27, we again consider around INR 150 crores, INR 200 crores will come from non-core assets, all combined. We can't split it right now between what will come from awards or what will come from other non-core. But this is -- our target is there that between all land bank on investments and arbitration awards, we should get between INR 150 crores to INR 200 crores cash at least.

So the INR 185 crores in '26 was land bank plus arbitration?

Yes. So INR 50 crores was for arbitration, which we got against [ D ], that INR 135 crores was for land bank.

Understood. So you're guiding towards a similar number for next year between the two?

Correct. Correct .

And that will be prioritized to repay term loan, I'm assuming.

Correct, correct. So we have -- this year also rights issue, we have prioritized for our term loan. So there was OCD, there was IRR on OCD also. That is also repaid. So it has primarily gone for.

Any other OCDs outstanding in future years?

The balance OCD outstanding is around INR 100 crores, INR 120 crores.

In which year?

So that will -- we will be repaying in some in FY '27, some in FY '28 earlier depending upon when the realization happens from now.

Okay. So by '28, all should be repaid?

Correct, correct.

Okay. Sorry. Just last question. Two orders, I believe, are coming up in Arunachal of INR 20,000 crores. Can you comment on that in terms of likely time lines of bidding, likely time lines of awards, et cetera?

So Arunachal, Kamala, I said like Lower Subansiri, Kamala. -- so next 6 months, it is going to come up for bidding.

[Operator Instructions]. The next question comes from the line of Rajeev, an individual investor.

My question was regarding the promoter pledge. So I think over the last one, 1.5 years, the management has been commenting that the promoter pledge will come down after March. So can we have an update on that, please?

So now post March results, we will be contacting the lenders, and then we'll update you.

But that you have said earlier. So by when can that come down and by what percentage? Could you give a time line to that?

So at present, we will not be able to give you the exact time line, but our endeavor is to reduce gradually.

That ma'am, you have been saying for the last two years, but we need a time line, okay, by six months, this much sledge will reduce or after one year, so much will reduce. We need a guidance.

Yes. So the guidance-wise I'm saying that post this March results, as we have said, we will approach the lenders. And maybe in next quarter, we can get an update as to how much we can be reducing this year.

Has the promoter any percentage in mind, okay, I'm going to reduce by this much.

So see, the target is that we'll reduce it by around 15%, 20%, but let's see, and we'll come back to you.

Okay. And my next question was regarding that a real estate project Patel Smondo in Hyderabad. So I believe the OC was pending and 372 flats were made. I think there were three towers, two were residential and one was a hotel. So can we have an update how much -- when will we get the OC, number one? Number two, how many flats have been sold? And what about the third tower, which was proposed to be a hotel? Can an update?

So I think we have applied for the OC. There is something was pending, some litigation or something was there. So we have to -- we are expecting that to get sort out this financial year, and we should get that OC this year.

Sorry to interrupt Rajeev, sir, may we request you return to the queue for follow-up questions. The next question comes from the line of [ Vimal Kayal, ] an individual investor.

My first question is, if we look at the interest cost, it's INR 79 crores this quarter. So -- and the rate of interest seems to be very high at 18%. Can you help me understand what it is due to -- maybe it's due to the earlier restructuring. So can you give some color on what the terms are and when can we expect this to go down?

The interest rates are around 11%, 11.5%. So see, the interest cost comes -- basically the finance cost considers of three components. okay? One is the interest on the borrowing. The second is the interest on the client advances. So there we have around INR 600-odd crores of client advances. So that also carries interest of similar nature. Plus we have nonfund-based limits, which is bank guarantees, LCs, et cetera, which we have to give to the client for advances and for procurement of material. So that also carries the cost. So on an annual basis, I can give you a broad breakup, like around INR 70-odd crores is for the nonfund-based limits. Then around balance what is remaining, if you add up the debt and the client advances, the average interest rates will come between 11% to 12%.

Okay. Sir, my second question is we have sold our ACP Tollways stake for INR 55 crores and that announcement mentioned that it contributed INR 18 crores of profit annual. So it seems like only 3x the profit. So can you please explain what is -- how this valuation was there and maybe the profit... yes.

So I'll tell you. See, the net worth, if you see of the company is around INR 38 crores only. That is as of March '25 because March '26 because we already got an offer, so we have not consolidated it and it is held for sale. So INR 38 crores was the net worth. And the carrying value of the investment as of March '26 in our books is now INR 26 crores only. So INR 18 crores was the profit in March '25. And that company, although profit what is there, there is still a borrowing remaining of around INR 600 crores and INR 200 crores is approximately the major maintenance, which has to be incurred. So this next few years collection will go into repayment and incurring of the major maintenance. So once that is completed, then only the equity return can happen. So we can see any equity return after only four, five years. So it is better that we sell the investment and we get the money and reduce our debt.

Okay. One more question. Our Subansiri project, if we complete this year, will we get substantial cash flows from that? And will that help our debt reduction further?

So for us, we are the contractor, and we are getting paid monthly as and when we do the work. So it is not a substantial. For us, it is a contract. NHPC is developing this project, and they are going to get a larger chunk of revenue after commissioning.

[Operator Instructions]. The next follow-up question comes from the line of Rajeev, an individual investor.

Yes. Sorry, the moderator cut in between. So that my answer was incomplete but [indiscernible], how many flats have been sold in the two towers? And what about the third tower? -- you're going to make a hotel on that? Or what -- can you please explain in detail, please?

See, the number of flats sold details, I don't have right now. But there were two residential towers in there, and there is one service apartment.

Okay. So what is -- regarding the service apartment is lying vacant or what's happening on the tower? Is it complete? What's happening?

Yes, yes, it is completed from our side, everything. Now the service apartment operator has to start with.

Okay. So what kind of revenues can it generate? And from when does it happen?

See, we don't have any idea about when the revenue starts because that is the service operator will do.

And you don't know how many flats have been sold in the two towers? I think there were 372 flats.

Right now, I don't have those details.

Okay. And my next question was regarding the arbitration award. So sir, I'm saying, we are getting only about INR 50 crores per year and INR 700 crores are in our favor. So can we expect we'll get only INR 50 crores every year for the next four, five, 10 years? When can we get -- by when this major chunk of the INR 700 crores come to us?

See, out of the INR 700 crores, more than INR 400 crores is in High Court right now and balance is in District Court. So it can take some time. High Court generally takes one or two years and then Supreme Court maybe one year. So -- but what happens is something or the other out of that, either against [ Nithia ] bank guarantee or court deposit of bank guarantee, we try to withdraw that cash flow. And then that's how we go. So overall expected time line of this will be around five to six years overall. It's not that everything comes after that.

Got it. And what about the balance INR 2,300 crores? Any update on that?

So balance INR 2,300 crores, there are multiple arbitrations going on. So what we expect is we'll get some arbitration awards. And then post arbitration award, if we are able to draw the money against bank guarantees, then it comes earlier. If it has to be realized from court, then overall, it may take six to seven years.

Okay. My next question was regarding the promoter stake. The promoter stake has fallen from 39% in June '23 to now 31.48%. And the promoter has not participated in the rights issue also. So I mean, if the promoter didn't want to participate in the rights issue, why do a rights issue? Why didn't you sell the remaining land bank to raise funds? Please clarify.

See, there has to be a timing requirement, right? So rights issue was done because we needed money for the operations and the future projects, which are coming immediately. Land bank sale, I mean, we cannot time line -- timing-wise, we cannot ensure that it happens immediately. It takes a little bit of time. We have been doing that every year. Like this year also, we sold some land parcels current again, this year, we are expecting some land parcels to be sold. But we can't expect that, okay, this quarter, we need the money and it will come this quarter from land sale.

But to me, it seems very absurd that the promoter is not participating in the rights issue and the public -- you want the public to subscribe to rights issue.

So promoters have subscribed around INR 20 crores partly and the rest was taken by public.

But they should have subscribed to the full quota? That's my question.

But they had already mentioned in the document that they will subscribe partly only.

Okay. And my last question, this whatever the balance land sale is there, your -- by when this whole -- the entire land bank be sold in the next three, four years?

Yes. four, five years, it should happen. So we have targeted a few land parcels to be sold first. That will happen in the next couple of years. And the rest will take some time, so around four, five years.

As there are no further questions from the participants, I now hand the conference over to the management for closing comments.

Thank you all for joining this call. If any questions you have, you can write to us, and we can revert to you. Either you can write to us or you can write to Valorem.Thank you.

Thank you. Ladies and gentlemen, on behalf of Patel Engineering Limited, that concludes this conference. Thank you, everyone, for joining us, and you may now disconnect your lines.