PVR INOX Limited (PVRINOX) Earnings Call Transcript & Summary

Good evening, ladies and gentlemen. I'm Barthi, moderator for the conference call. Welcome to PVR Cinemas Q2 FY '22 Earnings Conference Call hosted by Axis Capital Limited. [Operator Instructions] Please note, this conference is recorded. I would now like to hand the floor to Mr. Ankur Periwal of Axis Capital Limited. Thank you. And over to you, sir.

Yes. Thank you, Barthi, and good evening, friends. Welcome to PVR Limited's Q2 and H1 FY '22 Post Result Earnings Call. As usual, the call will be initiated with a brief management discussion on the earnings performance, followed by an interactive Q&A session. Management team will be represented by Mr. Ajay Bijli, Chairman and Managing Director; Mr. Sanjeev Kumar, Joint Managing Director; Mr. Gautam Dutta, CEO, PVR Limited; Mr. Kamal Gianchandani, Chief of Business Planning and Strategy, and CEO, PVR Pictures; and Mr. Nitin Sood, CFO, PVR Limited. I'll hand it over to Mr. Bijli now for the initial remarks. Post which, we will open the Q&A session. Over to you, Mr. Bijli.

Thanks very much, and thank you. Hi, all of you. I'd like to welcome you all to the earnings call to discuss the unaudited results for Q2 and H1 FY '22. I hope you've had the opportunity to review our presentation results, which have been uploaded on our website and the stock exchange website. Happy to state that we're now permitted to update all our screens across all states and UTs in India and Sri Lanka, including Kerala, where the operations will start October 25 onwards. While there are still restrictions around capacity, timing of operations and vaccination requirements, we are hopeful that the same would be lifted gradually, as the upcoming festive season passes without any significant increase in any cases, COVID cases. Certain states such as Telangana, Rajasthan, Karnataka, Andhra Pradesh, and Punjab with 66% capacity restriction, Gujarat, up to 60% have already relaxed capacity restrictions. The rapid pace of vaccination, you all know we reached 100 crore mark yesterday, in the country makes us extremely bullish on the prospect of our business going forward. I'd like to also extend my gratitude to the doctors, nurses, hospital staff, frontline workers and the government of India who've been working tirelessly for the last 18 months and managing the crisis. We've always maintained the theatrical exhibition. The exhibition business is an integral part of the film industry for audiences as well as the content creators. The keenness of audiences to come back to the theaters can be ascertained from the phenomenal performance of the regional movies which have recently been released, mainly Punjabi, Telugu and Tamil. They've all done exceedingly well in the past couple of months. With Maharashtra opening from today and a strong pipeline of content that's already been announced, we're looking forward to a rapid pace of recovery in the business over the next few months. During the year, we also launched 30 new screens. This includes a 6-screen iconic cinema in Jio World Drive Mumbai, 4 directors cut screens at Ambience Mall Gurgaon and 3 screens in Jamnagar, Gujarat. Additionally, recently, we also renovated and revamped Priya as a P(XL) screen, a PVR socket where we started our journey, foreseen complex in Delhi, and city center 3 screens in Gurgaon. On the results, please note that the numbers we'll be sharing with you are after the removing the impact of Ind AS 116 relating to lease accounting and are different from the reported numbers we submitted to the stock exchanges today. First off, the numbers. For the quarter ended September 30, 2021, our total revenues was about INR 142 crores. EBITDA loss was INR 95 crores, and PAT loss of INR 160 crores as compared to revenue of INR 44 crores, EBITDA loss of INR 81 crores and PAT loss of INR 116 crores for the quarter ended September 30, 2020. For the half year ended September 30, 2021, net total revenues of INR 213 crores. The EBITDA loss was INR 203 crores, and PAT los was INR 301 crores as compared to revenue of INR 56 crores, EBITDA loss of INR 197 crores and PAT loss of INR 257 crores for the half year ended September 30, 2020. During this challenging period, the company continued with its strategy of aggressively controlling costs and maintaining sufficient liquidity. As on date, the company has successfully concluded discussions with landlord partners for rental waivers and discounts in respect of 80% of our properties and have achieved rental savings of 75%. The team has continued to work hard to keep the operating costs low, which has resulted in us keeping our operating losses under control while working in extremely tough conditions. We continue to keep high levels of liquidity on the balance sheet with a total liquidity of INR 700 crores as on September 30, 2021. To conclude, I'd like to thank all the stakeholders, including employees, developers, content makers, film fraternity, bankers, and investors and our customers for their continued belief in the business on the back of a strong consumer demand being witnessed and the healthy content pipeline we have in place. We're very confident that the business will bounce back strongly. With these opening remarks, I open the platform for any Q&A. Thanks once again.

[Operator Instructions] First question comes from Abneesh Roy from Edelweiss.

Congrats on finally all states either allowing or soon to allow in terms of opening up. My question is on advertising trends. So what we have seen currently is many sectors are seeing life high inflation of either 1 decade or 4 decade. So are you worried that when your screens are going to open? Unfortunately, advertisers are seeing their life pie, low margins in some sectors, and for many years, low margins. And advertising is the first line item to get back. So what is your sense on this because some of your screens are already open. Of course, content is limited, but your advertising sales still would be impact to advertisers. So what's your sense on ad spend?

So first and for -- let me just demystify this advertising revenue. It will take some time to ramp up, and we are waiting for some blockbusters to really get this ball rolling. #2, to your point of the market of being operative with a lot of brands which are operating on low margin, see, the market is so huge. We deal with close to about 1,000, 1,500 brands. And cinema as a media works with both retail on ground, small retailers and big brands. So if one brand so decides to kind of not use cinema as an advertising medium, the others do, because a lot of brands today are also looking for impact and be able to have a direct correlation with the consumer, which only a cinema can deliver. Cinema is a unique media -- medium which actually can touch all your 5 senses. There is no other media today in the country or in the world perhaps which actually has the ability to do so. So we are seeing a lot of traction from F&B. We are seeing a lot of traction from brands that need touch and feel and display like electronic brands. So we are just not worried on that at all. In fact, the kind of response we are getting on advertising is fabulous. It's just that we are waiting for a couple of big blockbusters to sort of come in. And we have an established footfall data for our advertisers. I think we are on the path to recovery.

Sure. My second question is on your initiative and T20 World Cup, which is currently happening. Do you see this more of a marketing exercise to get back footfall, which has been missing for the last 18 months? Because in the past, you have been quite cautious on cricket because it is too expensive, right? Plus, it is not a sticky business in the sense you get sporadic [ ticket drive ]. So it's not a habit for the customer. Second, of course, is how -- is it profitable? Do you expect it to be profitable?

So to answer your question, you're absolutely right. Earlier, we had issues on giving a certain sign-on amounts and getting the content. This year, there are no such strings attached. Every match is like a film. We only sort of run that on a film hire basis exactly the way we would release the film. So it is -- to answer your question, it is profitable. It is actually hugely profitable because we are now giving out shows to corporates. And they are underwriting the entire auditoriums for their customers, dealers or employees and having this done. So while the coverage may not be massive because there's only one show in a select cinema, but the fact of the matter is it's fairly profitable. And it's a good way to get people back into the cinema and get them to see what's happening on ground to get them a lot of confidence to come back again for a big movie.

And there's no MG, right? You said that [indiscernible]?

When you say [ ND ], meaning? No MG at all. No MG. No MG.

So just a follow-up. Similarly, on your gaming experiment or whatever seems very interesting. So this is a great way to tie up youth, which should be a focus for any consumption brand. So 2 questions there. One, states where 100% occupancy are still allowed or even 60%, how is the footfalls for family? These are very early trends, I know because content experience is limited. But are families coming given states do not have a vaccine still which is allowed still final stages? And second, on the gaming initiative which you are planning in the coming quarter, what is your long-term expectation from this? Is it very bullish expectation or more of experimental?

So your first question, whether families are coming back and with children below 18 not being vaccinated and that could become a source of concern for the parents, none whatsoever. If you go to malls and if you go to cinemas in states, all major states have been operational for the last 2, 2.5 months. And the response that we've seen for films, the new films, be it Panjabi, Telugu, Tamil, Hollywood films, Marvel films which have released [ day and date ] with the U.S. release, the response that we've seen is extremely, extremely positive. I mean, looking at the first [ 3 ] opening after the first lockdown, there were some apprehensions that we could take a little longer to recover. But the reality has been quite different. And in fact, the direction and the uptick the trend has been very, very quick and the direction is upwards. And it's quite clear that people are more than happy to come back to theaters and they want their life to come back to the usual. So no concerns with respect to families, children coming back to theaters. In fact, looking at the slate of release that we have in November, December, Jan, Feb, March, it's safe to say that the kind of business that we will see over the next 4 to 5 months is something that we've not seen for a very, very long time. So that's the first part. The second part is gaming, and as Gautam touched upon, ICC World Cup being an alternate source of giving an opportunity to customers, different segment of customers or the same customers who also come to watch movies giving them another opportunity to come back to cinemas. So you should see gaming from the same lens. Gaming, as you know, is growing dramatically in this country. And gaming, whether it's real money gaming or casual gaming or eSports gaming, all of these 3 aspects of gaming are fairly well-established. E-sport is at a nascent stage. Real money gaming has taken off in a big way. We have tied up with Nazara, which is the only listed gaming company. With them and along with [ Northwind ], which is a subsidiary of Nazara, we've decided to run experiments, pilots to figure out the product. We are very confident that PVR Cinema would definitely play a role in the gaming ecosystem. But because this is something which has not been done before, we want to get the product right. And keeping that in mind, we would be running a series of experiments and pilots over the next 2, 3 months. And post that, we want to bring e-sports into cinemas in a big way. I mean we want to take e-sports to the grassroot level. And the direction that we've taken is to use cinemas, embed cinema as an infrastructure with the e-sports gaming ecosystem. We believe there is a huge potential. And there is a big impressive marriage which is out there between gaming and cinema, which is absolutely right. The time is absolutely right. We think we've got an interesting proposition. Let's see how it unfolds and what sort of opportunity are we able to capitalize as we move forward.

Last question, how is the global recovery in the multiplexes given the restrictions are either coming back in U.K. and Russia or they have already come back? So are you worried on U.K., Russia, the new developments? And in other countries, if you could share what is the development in the last few months. You have shared earlier data, but now what's happening there?

Well, U.S. and all other developed markets, Europe, including U.K. and Russia, are doing exceedingly well. Bond has become a cultural phenomenon in U.K., and not just in U.K. and also the other major markets within Europe. U.S. has opened recently, is tracking very well. Box office numbers are extremely impressive. I think all major markets which are -- where the vaccination rate is high, the governments have taken a conscious decision that the virus and businesses and life will have to coexist. Everything will have to move forward. Lockdown, we believe, looking at the trends in various markets, other geographies, lockdown is a thing of a past. I mean, governments are not putting any stringent restrictions on business. Because the vaccination rate is fairly high, they have decided to go on with business. And it seems people are quite comfortable with the idea of coming to theaters, going to bars. So all the out-of-home activities which have been either shut or restricted for the last 18 months have come back and bounced back in a big way. We are very satisfied with what we are seeing in the overseas market. But to be honest, what we're seeing in India is a lot better than overseas market. U.S. market with all the big releases is still at 60%, 65% of pre-COVID level. But India, the way regional cinema is performing, it appears that we will soon be at 85%, 90% level pre-COVID by the time we get into November, December. So in fact, India is tracking much, much better than the international markets.

And [indiscernible] to point out that some states like Punjab because of the Punjabi films have actually over 100% of the pre-pandemic numbers now.

[Operator Instructions] Next question comes from Urmil Shah from Haitong Securities India Private Limited.

Yes. My first question was, given that there would be a bunching of movies, what would you as a largest industry player would be requesting the state governments to first increase the number of -- or the time lines to getting more shows? Or you would first want the occupancy levels to be allowed to be increased?

Bunching of films is a reality that we will have to live with over the next 6 to 9 months. A lot of films have been lying ready for the last 18 months. And they want to be in theaters and start with the life cycle of exportation as early as possible. So -- and also, we are getting into the peak season time for film business. So it's only natural that there would be clashes and bunching of releases. But finally, we are in touch with all the state governments, and we are fairly confident that the state governments [ patiently ] responses that we've got would be relaxing these restrictions in quick time. Goes without saying there would be external factors like COVID cases and the kind of hospitalization which is happening as a result of COVID cases. But fingers crossed, hopefully, with the rate of vaccination going up, we feel fairly confident that the COVID cases and hospitalization would be taken care of by the government and the authorities. And we feel fairly confident that relaxation will happen in quick time.

sure. My next question was on the negotiation with our development -- developer partners. You mentioned that the negotiations are done with almost 80% of our partners. So what have been the areas of favorable -- I mean, higher proportion moving to revenue share? That's been the kind of waiver we have got for the rest of the year? If further details on that would be put through.

Yes. So our discussions and negotiations have been similar to what we had last time. Primarily, I think the focus has been to get rental discounts or we were [ off rent ] for the period. The cinemas were shut during the second wave. I think that's one of the big achievements that we've largely achieved for most of our circuit. 20% of the circuit is left because Maharashtra and opening was announced only beginning of those months -- this month. So some of those discussions will get concluded in the next couple of weeks. So most of the rental savings are in terms of waiver of rentals for the period we are shut. We have got some discounts and some reliefs for the next 3 to 4 months post opening in terms of rentals that we will be required to pay. Part of those reliefs are in form of discounts on MGs and part of them are in form of revenue share. But most of these reliefs will only be there for next 3 to 4 months, and they will gradually fade away as the business returns to normalcy.

Sure. And just related to the costs, maybe in FY '23 or -- where there is a good chance that we can see normalization, would we still maintain that we can see savings of 10% to 12% on the costs x of rental for the company?

On the rental side, there are no negotiations for next financial year. The rental costs, like I said, as the business bounces back, will come back to what they are contracted basis. So rentals will come back to what our contracted rentals were. We may end up saving because of the initiatives that the company has taken, at least a 10%-plus saving on a long-term sustainable basis on our people costs and other overhead costs. That is definitely possible, and this should -- would fall into place.

So I was actually looking at the ex rental costs. Yes, that clarifies.

Next question comes from Harit Kapoor from Investec India.

This is Harit here. So my first question was really on terms of trade with the producers. So I understand that probably for the first month or 2, while things release, you will probably -- the terms of trade will be a bit more favorable towards the producers as compared to historical levels. But if you could just give us a flavor of what your initial negotiations are suggesting regarding either share as well as theatrical windows. Do you expect a new normal to be created in either of them or you get back to old levels going forward? So just a question on the near term as well as on the medium term on this.

So [indiscernible] terms, the revenue share terms with the distributors are -- it's a moving piece. And it's a sensitive principal-to-principal discussion. But I would only stop at saying that there would not be a meaningful change in [indiscernible] terms as we move forward. There could be small changes in the initial months, but that's about it. That's one. On the windows front, we've moved to a window of 4 weeks for local films. Hollywood films have been maintaining a longer window in any case. But for local films, we've come down to 4 weeks. This is a temporary phase. This is a move which has been -- this decision has been taken to ensure that our content partners who suffered the financial losses because of delay, they have an opportunity to recover their losses. So keeping the overall interest of film business, we've taken a temporary decision to reduce the window from 8 weeks to 4 weeks. That said, we are confident that this window will retreat to 8 weeks. We would not like to make any forward-looking statements. But all I would say is that the maximum, these 4-week windows will continue [ still ] the end of this financial year and not beyond that. Also, please appreciate that the 4-week window that we have in India is unique because in all other countries, all other developed markets, studios have taken a view during the pandemic to release films partially on streaming platform as well as theaters. So there was 0 window in U.S. market and many other developed entertainment markets. But in India, we managed to keep the window at 4 weeks, which is, as I said earlier, is a temporary move, and it will revert back to 8 weeks. But we would not like to put a firm time frame on this.

Just a follow-up on this is -- sir, wouldn't -- given that these are individual negotiations, over the next 2 to -- 3 to 6 months, would it also not be possible that say, some of the producers want -- of a big film or something likely the mass scale would want, say a larger window? And could that also be possible that you could see a mix of theatrical window move over the next 3 to 6 months? Or do think it could be blanket 4?

4 is a minimum window. You're absolutely right. A lot of mass targeted films, films which have a broad potential as far as audiences are concerned, they would go for a longer window. So the minimum window is 4 weeks. But in all likelihood, the big films will maintain 6. In some cases, they will go up to 8 weeks. But the minimum that any producer would do is 4 weeks.

Got it. Got it. The second question is on the CapEx and new screen opening side. And now that you have a visibility of business coming back, just wanted to get your thoughts on how do we see maybe second half in terms of streams of new screens, is there a number that you have in mind now in terms of your expansion?

Yes. So as of now, we are only focused on completing the screens which were partly built up or where we had started work during our pre-pandemic. There are a few screens left out of that. We haven't still actively started CapEx or taking handover of any new screens, which I think we'll take a view in the next couple of months. And if the business recovery over the next couple of months has passed, we will hopefully start taking handovers and fitting out newer screens that have been waiting for handover. And hopefully, based on the business recovery, we will also take incremental CapEx decisions and should get back to our pre-pandemic growth rate by next financial year.

[Operator Instructions] Next question comes from Chetan Prakash from Spark Capital.

Sorry. This is Arun Prasath from Spark Capital. Okay. My question is on the similar lines that we spoke about on the recovery. My request is, can you share any insight on the demographics mix that you are seeing now. Is it -- that mix was any different from the pre-COVID levels. I know it's too early. But qualitatively, can you comment on that?

So honestly, we may not have data to prove what I'm about to tell you, but largely what we've been checking is that, of course, more youngsters are coming in. Our band still remains between 15 to 45 is dominant. We are not seeing too many of the elderly people still walk in into the cinema. But largely -- other than that, we are seeing the core audience of the cinema working in quite comfortably. And people who have walked in once seem to be now getting the confidence of coming again and again. And clearly, that's the kind of feedback we've been getting from the consumers.

So that is very helpful. So does it mean that the population which is more influenced by the -- say who are more used to watching OTT in the last 18 months, what is that segment, in your opinion, that is -- which is more likely to discontinue -- or more used to seeing the content into OTT? So is it not the same population or it's more like a...

There is no correlation with OTT. In fact, the data proves that people who consume more content on OTT end up watching more movies at the cinema. So technically, there is a direct correlation between people who watch more OTT come out and watch more cinema. Currently, what we feel is the elderly people beyond the age of 60 may be slightly hesitant, but it's a matter of time. Clearly, there is a movement being seen in that age group as well. And we believe that with a few more films and this whole movement of families coming out and having a good time starts, this trend shall also be reversed. And honestly, there is no such inhibition or fear that can see that people because they watch content at home will not want to come out and watch movies at the cinema.

And Arun, the best corollary to that is if you look at the market like Punjab...

And even restaurant.

In Punjab, which is currently operating at with 66% seating capacity and is largely dependent on local regional content, plus Hindi content, which is a big area for them, in that market alone, we are seeing admissions now crossing average of what we were doing weekly admissions on a pre-pandemic level. In spite of no, no [indiscernible] being there. So which is a clear sign to say that people are generally confident to step out of their homes and go out. I think what Gautam is referring to a certain segment or age of population which needs more time to get confident to step out, with fears around moving around due to COVID-related restrictions. Absolutely, we are seeing no correlation of people who are watching movies at home not wanting to come out. Absolutely not.

All right. Very helpful. My second question is on the screen additions, especially on the long-term additions. So currently, we have around 850 screens. So is it fair to assume that you will be adding 100 screens on an average per annum in the next 3, 4 years, once we understood the cycles and once we are back to the steady state?

Yes. I think I wouldn't want to say in which financial year, how much we'll add because it's too premature to say. But once the business recovery is back, there is no reason why our screen growth addition will not go back to pre-pandemic level. And pre-pandemic, I think we added about 87 screens in FY '19/'20. So 80 to 100 screen addition, we should be back to as soon as the business recovery is there and we restart our CapEx cycle.

Right. As a follow-up to that. So 80 to 90 translates to close to around 350 to 400 in the next 4 years, from whichever 4-year period. So the question is, how much percentage of this future screens we have already frozen through, say, some kind of an MOU with the property developers? Or is it still in a very early stages? Still you don't have an MOU. So some indication would be very helpful.

We have a fairly large pipeline which is quite in excess of the numbers that we are discussing right now. We have a fairly large pipeline of screens already signed up for development.

[Operator Instructions] Next question comes from Ashish Kanodia from Ambit Capital.

So sir, just on the rental part. You speak to some of the retailers. What we understand is that, as the recovery moves from let's say 70%, 80% to say, 120% of pre-COVID level, they are paying some certain higher rentals to compensate for the rental [ you lost ]. Now when you look at multiplex player, they registered highest amount of data from the mall owners. So as we talked about recovery moving to 80%, 90% by November or December, is there a facility or a discussion that once you cross that pre-COVID level revenue, the rentals will actually go up? Maybe just for a very brief period of time?

No. There are no such discussions. Most of our rental negotiations are not in the nature of clawback. They are in form of permanent rebates that we've got. Some of these rebates, as I said, are only for the lockdown period. In some cases, rebates are for a few months extra. But once the business comes back to normal, the rentals will go back to what are the contracted rental over the next few months. We don't have any provisions which have a clawback of rentals as such for the future.

Sure. And just a bookkeeping question. When I look at the TAM, quarter-on-quarter, there was a decline in TAM charges. So is there any one-off impacts?

No, that's purely accounting because, as we said, the provisioning has been made on an estimated basis. And as some of the settlements have got recent, final invoices have got settled with the landlords, we've accounted for the TAM on those basis. When we entered the first quarter and everything was shut, most of these discussions were in progress, and we had provided for it on an estimated basis. That provision has just got trued up. So no. No significant difference as such other than that.

Sure. And lastly, on the new store expansion. As and when it picks up, do you see the company entering into more number of newer cities? Or do you believe that a large part of the new screens will actually come in the existing market?

Sorry. Can you repeat the question? I didn't get your question.

Yes. I was asking that once the screen opening of the CapEx picks up, the new screens, will those be mostly in the new cities or a large part of it will be in the existing market?

So there will be a mix of both. We will continue to expand our presence in existing markets as well as add screens in newer cities and newer markets. So it will be a bunch of both. If you look at it, in the 3 properties that we've opened just now, we've moved to a new city of Jamnagar where we did not have a presence, but we've added premium properties in 2 cities of Mumbai and Gurgaon where we had existing screen portfolio. So it will be a mix of both.

[Operator Instructions] Next question comes from Jinesh Joshi from Prabhudas Later Private Limited.

Sir, I have a question on this Nazara tie-up. I mean, what kind of arrangement do you have with them? Is it a fixed contract? Or will it operate on a full higher basis as we do for our movie business? And secondly, what was the response to the pilots that we ran sometime back, especially in cities like Indore and Gurgaon? So what was the occupancy levels that you can just share some insight on that?

This -- the commercial arrangement with Northwind, which is part of Elara, is sensitive commercial information. So unfortunately, we would not be in a position to share it. And so far, the first event or the first show took place in Gurgaon. Indore is slated for 29th of October, and Mumbai and Bangalore will follow. We would like to share our learnings, some information, other insights once we've completed the pilot, so kindly bear with us. But we would certainly come back to you with more information.

Sure, sir. Another question is on the SPH. If I look at the SPH in this quarter, it is at about 128. And pre-COVID, this figure was anywhere between 95 to 100. So is there anything worthwhile which you would want to highlight?

The SPH went up significantly. One, of course, there's been a lot of effort at the ground level to increase the strike rate. Lesser number of people walking in. Staff has been able to sort of service the consumer well. We also launched our microwave popcorn. So that also helped in the SPH because a lot of consumers ended up buying these pouches of microwave popcorn. Moreover, the circuit that had sort of opened since August was far more premium circuit for PVR, the North and the South. And that kind of resulted in highest SPH. And I think once we get the pan-India operations up, we will possibly level out a little. But yes, but the SPH story remains, and it's very, very positive.

Is there any element of price hike into this?

No. No price hike at all. It's at the same pricing as pre-COVID. No price change on SMB in comparison to how we were operating earlier.

[Operator Instructions] Next question comes from Vipul Garg from Kotak Mahindra Bank.

First question is, whatever the rent negotiation which has happened, whether the same has been paid for the half year or some amount is still pending to be paid?

No. I won't know the specific details. But yes, some amounts would be pending to be paid depending upon how the settlements are playing out. But yes, it's possible that some amount may be pending for it to be paid.

Approximately, what quantum? Because trade receivables are very high in your results. It should not.

So rent amount will not be reflected in trade receivables.

No. That you're talking about trade payables, I'm assuming.

For trade payable.

Yes. I mean out of that rent won't be a large portion. As Nitin mentioned, we don't have the specific number at the moment. But given the first half rental was in total INR 75 crores. I don't expect that number to be significant as of 30th September.

Okay. And the CapEx guidance for H2?

Very difficult to give a number because we've not restarted CapEx in a big way, but our expectation is H2 CapEx will be slightly higher than H1. So -- but it is very difficult to give an exact number because we will take CapEx decisions as we go along. Depending upon how we see the business recovery, we'll take decisions on handover of new sites and commencing of CapEx.

Ladies and gentlemen, that would be the last question for the day. Now I hand over the floor to the management for closing comments. Over to you, sir.

I would like to thank everyone for taking out time to attend the earnings call. In case we have been unable to answer all questions, feel free to reach out to Rahul or me, and we'll be happy to take those questions separately. Thanks once again.

Thank you, Nitin.

Thank you, sir. Ladies and gentlemen, this concludes your conference for today. Thank you for your participation and for using Door Sabha's conference call service. You may disconnect your lines now. Thank you, and have a pleasant evening.