Radiant Cash Management Services Limited ($RADIANTCMS)

Ladies and gentlemen, good day, and welcome to Radiant Cash Management 4Q FY '26 Earnings Conference Call hosted by Antique StockBroking Limited. [Operator Instructions] Please note this conference is being recorded. I now hand the conference over to Mr. Raju Barnawal from Antique StockBroking Limited. Thank you, and over to you, sir.

Thank you, and good morning, and welcome, everyone, to Q4 FY '26 Earnings Conference Call of Radiant Cash Management. Today, we have with us the management of Radiant Cash Management, represented by Colonel David Devasahayam, MD sir, Mr. Alexander David, whole-time Director; Mr. Venkataramanan, CFO; and Mr. Muthuraman, Strategy and IR. With this, I hand over the call to MD sir for his opening remarks, post which we will start the Q&A session. Thank you, and over to you, sir.

Thank you very much, Raju. Good morning, ladies and gentlemen. Thank you for joining us today for Radiant's Investor Call. The stand-alone revenues for the year were flat over the previous year. We had excellent growth in e-commerce, which witnessed 21% annual growth. Petroleum sector and organized retail also grew well over the last year. However, we have been highlighting in our earlier analyst call, our revenue growth was affected by the launch of some few regions of railways to competition and loss of a large client in the e-com logistics segment, which got acquired by a larger player. Our stand-alone EBITDA margin for the quarter, Q4 financial year '26, continued its improving trend over the last few quarters and was at 15%. In this quarter, up from 30.6% in Q3 FY '26. The improvement was mainly on account of various cost reduction measures undertaken by the company. We handle cash volume of INR 1.69 trillion during the year, financial year '26, a growth of about 1% over the previous year. The management is taking several measures to improve revenue growth, which would help in restoring the EBITDA margins to past healthier levels. Rigorous focus on adding direct clients, increased trust on dedicated cash clients, empanelment with smaller banks, including cooperative banks and rural banks, some of the measures taken by the management that will improve the core business revenues. In terms of margins, I'm highlighting a few specific aspects below, which will help improving our financial performance in the current financial year. In the core business, the operating leverage will help improve the margins when the revenues grow at a healthy pace, as a significant portion of our costs are fixed in nature. Radiant valuable logistics has reached the top line of INR 60.7 million for the year, with steady improvement in performance quarter-on-quarter. Though this division is still reporting negative EBITDA, the trend line is encouraging. With recent strengthening of the management team and the division and recent addition of 5 marquee national drill retains, this division is likely to achieve breakeven in the first half of the current financial year, which will improve the overall profitability. The management is taking several cost reduction measures, including route optimization with the help of technology, discontinuation of select low-density routes and staff cost optimization. The results are already visible in the trend line of steady improvement in stand-alone EBITDA margins. We are redoubling our efforts to provide alternate cash collection solutions, including business correspondent model and extra credit and expect these measures to have a meaningful impact on our profitability in the current financial year. Coming to our consolidated financial performance, the overall consolidated PAT has dropped to INR 280 million in FY '26 from INR 470 million in FY '25, largely on account of losses incurred in our fintech subsidiary. As we had indicated during our last earnings call, the PIDF subsidy had ended in December 2025, and the subsidiary is working towards improving its transaction revenues rapidly. The losses in the interim are transitory and the team is confident of turning EBITDA positive in the first half of the current financial year and contribute meaningfully to the overall profitability of the company in the full year. Mr. Alexander David will provide more details on Radiant Acemoney performance and future plans. We remain committed to providing transparent updates on our progress and answering any questions that you may have. I'll now request Alex to speak about the performance of Radiant Acemoney followed by Mr. Venkataramanan to speak about the financial performance and the key performance indicators. It's over to you, Alex.

Thank you, sir. Good morning, everyone. Thanks for joining this earnings call. I would be presenting the update on Radiant Acemoney, our fintech subsidiary, Radiant Acemoney reported revenue of INR 287.8 million for the FY '26, representing a 19.6% growth over the previous year. Currently, we have approximately 1.5 lakh merchants onboarded for POS machines and added approximately 60,000 sound boxes. Over the year, we also facilitated digital transactions of approximately INR 1,140 crores in establishing our presence as a serious fintech player, particularly in rural areas. As reported in our last earnings call, the fourth quarter performance was poor as the PIDF subsidy ended on 31st December 2025. For the current financial year, the management is seriously pursuing transaction revenues from already installed POS machines besides a new aggressive growth plans. Towards this end, the management has already signed up with 2 reputed small finance banks, a large NBFC and a few banks to provide fintech services and support their network rollout plans. We are also in the process of developing many of the merchant outlets into business correspondence to provide a much wider variety of financial services, including accepting cash from our retail cash management business at competitive rates to help grow the core business of the consolidated entity. I'm happy to report that we have now over 10,000 business correspondents that offer a wide array of fintech services. We continue to provide regular updates on the progress of Acemoney to our investors as we scale greater heights in the coming months. I would now request our CFO, Mr. Venkataramanan, to present our financial performance.

Thank you, Alex. Good morning, everyone. Thanks for joining us on this investor call today. I'll present the company's key performance indicators and financial performance for the quarter and year ended 31st March 2026. During this financial year, we added 118 new clients and 230 new customers in our retail cash management business. For the quarter ended 31 March 2026, we added 2,173 new points taking out total service points for the year to 77,521. In FY '26, we handled INR 1.6 trillion of cash, a growth of about 1% over the same period last year. The overall retail cash management business remained largely flat during this year due to loss of certain regions of railways and loss of a key e-commerce logistics client due to budget. Our gross cash losses for FY '26 stood at INR 33 million or 0.0 to 2% of the total cash handled during the year. This is one of the best performance in the industry, a reflection of our strong focus on risk payment and ex servicement culture in our company. Radiant valuable logistics grew about 35% in FY '26 over the previous year and is on its way to achieve a positive EBITDA in the current financial year. Induction of an experienced management team signing above more national January chains and optimization of routes or key some of the key initiatives taken in the last few months to improve profitability in this business vertical. Coming to performance coming to financial performance. The consolidated revenues for the year were INR 4.4 billion, representing 1.1% growth over the previous year. The stand-alone EBITDA margins for the quarter continued its improving trend and clocked 15% for Q4 of FY '26 as against 13.6% in Q3 of FY '26 despite the loss of the lost RV division. The consolidated EBITDA margins for the quarter dropped to 10.7% due to losses in [indiscernible]. For the year FY '27, the key milestones the management is driving towards -- the management is driving towards are real profitability and improving the revenue growth of the core business. The management is taking several concrete measures to meet each of these milestones. I'm confident the same will reflect in the financial performance in the coming quarters. I now hand over the floor for Q&A.

[Operator Instructions] The first question is from the line of Ankit Kanodia from [indiscernible].

So first, a couple of questions related to your opening remarks, please. Sir, you mentioned about our efforts towards getting the direct customers. We used to share that number percentage of revenue. It was from 1%. It grew to around 13% sometime in the last quarter, last or maybe -- what is that number today? And how do we see that number growing in the next couple of years? Directionally, I'm not looking for a definite guidance, but directionally.

We are at about 18% now and the growing. So it's a real critical area of focus as of now, and we hope to grow steadily in this segment.

Is it fair to assume, sir, that we will be able to, say, reach around 30% in the next 12 to 18 months?

Yes, within the next 2 years, 30% is a reasonable target.

Great. That was very helpful. Sir, second question is -- regarding the business correspondence business which you are talking about, there is a player in the industry who has recently -- who has been in the business corresponding business since long and recently got a [indiscernible] license. So they are in the process of selling their business corresponding business. Are we exploring not just that company but acquiring because we have a healthy balance sheet and a lot of cash, are we also looking for M&A initiatives here or we want to grow it organically?

See, we are always open to inorganic acquisitions like the way we did the Aceware acquisition. But we take a fairly conservative approach. It will be at valuations that are acceptable to us. We are -- we do come across opportunities and continuously evaluate. This particular instance is probably too large for us to absorb.

Right, right, right. That was -- one last question, sir, before I join in the Q. I think we have done a phenomenal job in terms of -- if you look at the stand-alone EBITDA increase we had a flat revenue approach. So -- and most of the initiatives have largely played out and probably will start kicking in, in the next year. And given the kind of valuation net charge office trading and the kind of cash we have on our balance sheet, are we exploring a buyback?

Currently, we are exploring it also as an option, and we go with detailed discussions with our larger shareholders. And also the consultants and advisers. So we are looking at it as an option. And also, we've been a company paying the strongest dividend over the years. So that we would like to continue -- I mean, based on the larger interest and the larger response that we see will take an appropriate position in the map.

That was very helpful, sir. Can I have 1 more question? Or shall I join the queue?

Please go ahead.

Okay. So my last question is, if you can just give a qualitative view of how do we see money 2, 3 years the business growing in terms of -- I mean I am not asking in terms of numbers, but more in terms of how do you see the business branching out more qualitatively going forward in the next 3 years, 4 years. That would be it.

This is a good strategy question that you're asking, that I'm glad that gives me an opportunity to respond to it. See, with the digitization that started off, we were -- we wanted to explore because we have a presence in over 14,000 pin codes. So we decided to explore as to whether we could make use of this strong presence and network across all geographies of the country, whether we could also bring in the digitization revenue into as a high print model and therefore, move from physical cash to physical. So it is with that in mind that Radiant Acemoney was acquired, and we are strongly moving in that direction. As was also mentioned earlier, we are also applying and trying to secure in the main company, the holding company, a payment aggregator license from the RBI. So this is, for us, a very strong vertical that we are looking at. And what we are passing through is normal growth banks that we would have and challenges in the initial stages of growth, but this is going to become a very strong part of our foundation in the time ahead.

[Operator Instructions] We will take our next question from the line of Harshit from Robo Capital.

On a consolidated basis, what is the revenue and EBITDA outlook do we have for FY '22 and 28.

For FY, we have not put out a specific guidance, but like I think we had mentioned in the last earnings call also, our objective is to reach then $5 billion in revenue and 11% to 12% in PAT margins for FY '27 and longer-term growth in PAT should be in the mid-teens is what we expect.

Okay. And so how much losses have we incurred in our fintech subsidiary Acemoney and also the Radiant valuable logistics business in FY '26? And what can be the revenue PAT outlook for FY '28?

So RVL had 60 million in losses in FY '26 and Acemoney anyways as in it is clear it's about INR 100 million -- INR 10 crores of losses in FY '26. What is the next question?

[indiscernible] businesses in FY '28.

Projection for the subsidiaries or for the consolidated group.

For these subsidiaries.

We -- again, our immediate goal is to turn both of them PAT positive in the current financial year, hopefully, in the first half itself for both of them.

But do we have any target as in what kind of revenues can be achieved from them let's say in the [indiscernible]?

See, the market opportunities are fairly large. I mean this business can -- in the subsidiary SR business can grow in the time line that [indiscernible].

Okay. And we used INR 60 crores of PAT -- so what things have to fall in the similar -- like similar to, let's say, INR 60 crores?

Yes. This -- like as CFO indicated, these are the 3 key imperatives: turn both the RVL and Acemoney profitable. And the core business growth, if we are able to achieve 12%, 14% growth, we should be able to reach that.

Okay, sir. And then my last question is regarding -- if I see Q4 FY '26 results, so we have done an EBITDA of 8.5%. So this is our lowest EBITDA since the last 12 quarters. So where do we see it stay what how can we expect for next quarter? What is the outlook over there?

Stand-alone or consolidated you're talking of?

Consolidated basis.

The consolidated basis had this 1 exceptional item. -- which moved below EBITDA. And 1 -- and the subsidiary level losses, as I indicated, that will be -- we are working towards turning that around. So consolidated levels as an immediate target would be to reach about 15% plus.

[Operator Instructions] We will take our next question from the line of [indiscernible] from Counter Cyclical Investments.

So firstly, I wanted to understand what was the quantum of the business that we lost due to a loss of these customers? And what sort of growth rate can we expect for FY '27 and customer additions that we can expect next year?

Yes. The runway loss of revenues were on an annualized basis, roughly about INR 9 crores, INR 10 crores. SP-10 And the e-comm segment is about INR 4 crores.

Okay. And secondly, what -- if you could help me understand the road map to profitability for our valuable logistics business and fintech subsidiary.

Yes. So valuable logistics, we have made a lot of efforts now in our sales. We have a very experienced sales team, and we have been approaching a lot of major corporate customers, and we've been seeing a lot of positive responses over there. So like almost 3 or 4 very, very large names in the jewelry sector within the last stages of empanelment as we speak. So our strategy is very simple. Once we start working with these corporate giants because they work with almost everybody in the jewelry industry. Even our name is going to spread very, very positively in the market. And we're very, very confident that this year, we should be able to achieve breakeven and turn this business around. They have a very strong team in place who now understands how this business works, and we're working it -- we're working in a model in a very conservative manner. And we're very confident that this will be turning around. On the Acemoney front.

On the ASN front, like colonel mentioned, our key strength is a strong presence in the rural areas. We are working with a couple of small finance banks, a few NBFCs and even few old right sector banks. -- to help roll out their QR codes, their phone boxes, their pest machines in the inter labs. And so we're fairly confident that the road plants, the ambitious solo clients that we have, working with these reputed banks and NBFCs, we should be able to achieve these numbers already. 3 are already signed up 2 small finance banks and NBFCs.

Okay. So FY '27, you said the businesses will achieve breakeven. So going forward after breakeven, what sort of operating margins can we expect to generate from these businesses?

Yes. See, the -- based on the -- in the case of RVL, it's again an operating leverage business. So there is no steady number that they can put -- but we aim to work towards about 20% EBITDA margin reaching 30% EBITDA margin on a steady-state basis. In Acemoney, it is a little more clicking because the transaction volumes are a healthy mortgage business. whereas the onetime revenue of rollout is slightly lower margins. At a combined level, it should be definitely in double digits.

[Operator Instructions] Next question is from the line of Amit Mehendale from Robo Capital.

Sir, my first question is on the cash, like how much cash are we holding currently? And does it include any customer tenor is it all company corporate cash?

We have got about INR 100 crores of cash in our books, our own cash. Out of the free cash is about INR 60 crores as of March '26. In addition to the customer, which is for the CMS business, which gets rolled out within every 48 hours.

Right, sir. And on the core business, how do you see growth? I just -- I don't know if I missed the comment. For the core business, like FY '27, how do you see -- what type of growth do you see?

Yes. Like I said, we are working towards a mid-teen kind of growth rates in revenue.

Okay, sir. because I was looking at the touch points, and I don't see that type of growth in the touch points in the presentation. Typically, the touch point should increase in tandem.

Really, yes. But because of the large loss of 3 regions in railways, it skewed that picture. We see the quarter -- this quarter, we added about 2,100 points. But overall, for the year, there is a slight drop in the overall number of touch points between last year and this year. And yes, over a longer period of time, you will see a fair degree of correlation between the number of touch points and the revenue growth.

Perfect. So I mean the plan to add touch point stays as it is right?

Yes, 100%. Yes. Yes.

Sir. And my last question is on the RVL business, the valuable business like the customers that we have pitched currently, right? What type of change management they have to do, like we are a pitching for cash management. So what is the customer doing currently?

Well, a lot of the major corporate dollars are working through the banks. And we are also providing them services as end customers. It comes to the other segments in the jewelry business, let's say, wholesalers. A lot of them are doing it on their own. But the good thing is our RVL sales teams, we have also kind of made them well-versed with our products in the CMS business as well. So as and when they are approaching for sales, they're also pitching the CMS business as well. And we already had some success there, almost 5 to 6 customers we've added for the RCM side as well. So cross-selling is also happening on the ground for both the verticals.

Right. But I mean, for the large type of jewelry contracts that we were talking about, that may be is it tough to track because the banks will have more entrenched relationships with those corporates because banks will provide -- there is other services apart from cash management, is my understanding correct?

Yes. we are very careful to not undergone the banks. So when it comes to large corporates, we usually don't pitch the CMS business, especially if we're already working with them through the banks. But we are mainly only targeting those customers where there is a potential for a direct customer acquisition. -- and just to add, even if the banks offer retail cash management services, there are 37 banks that offer these services, but there are only to nationwide service providers. So anyway in the business comes to us.

[Operator Instructions] Next question is from the line of Abhishek Carla, an Individual Investor.

So regarding the age money collaboration with the banks for urea, could you just expand on the nature of contract as it outsourcing or you are collaborating in another way?

No, it's not outsourcing. We -- so we do -- I mean banks have some small finance banks, they have their own targets for reaching out in the rural areas or unpenetrated markets. So we do a tripartite collaboration with a small finance bank and a payment aggregator and us -- and since we have the feet on street in the last mile. So we install the machines, install the software and activate those and we get a onetime as well as the continuous transaction revenues. With some NBFCs in their branches, we are facilitating digital transactions and again, providing machines on rent and getting transaction revenues as well. For a few banks, we do some outsourcing as in large private sector banks. We do some bit of outsourcing. But the predominant focus is on the first 2 small finance banks and NBFCs where we are able to -- where they don't have strong branch presence in these regions particularly the small finance banks, whereas we have a strong network, it's a win-win for both of us.

Got you. Is it fair to say that you are the small finance banks or NBFCs are leveraging your digital infrastructure?

Our rural feet on seat infrastructure as well as our software and the fintech solution platform.

Got it. Got it. SP1 And regarding the valuable logistics, when you say reaching breakeven. The way I understand is largely previously as well, and we have more tons. We'll add more rooms. So how do you put breakeven. So I'm just trying to understand if we have more clients, I think the losses will continue for a more wide while the top line still goes. So could you clarify on the breakeven target, what you are saying?

Yes. So we -- what we do the mistake which we did earlier as we had kind of opened a lot of lanes without any kind of actual sales to efficiency move goods across those gains. So now we have a very good strategy in place. We have a certain number of lanes, which we are focusing all our sales teams to push business for? And how it works in this business is we have kind of fixed costs, our vehicles, our airway moments. And all we need to do is fill up those containers, those wallboxes to move across those lanes. The more and more we increase volumes across those lanes, the costs kind of remain the same. There's not much incremental cost. And as and when more and more volumes and additional revenue gets getting added on, the cost we get absorbed. And then after that, we are able to turn those lanes profitable. So we're already seeing some positive development about 25% to 30% of our lanes have already turned around. We are now completely focused on going into the market and filling up the other lanes as well. Also, the good thing is because we have a very strong network in our CMS, we are able to open lanes very, very quickly, but we've been extremely careful totally expand when we are seeing that kind of revenue potential.

Because -- is it fair to say there is a little shift in your strategy. Earlier, you were more focused on opening in right now. When you are reaching to the medium marquee brands also you are still offering in those names which are currently operational, instead of offering them when we will open a new range for you.

That's correct. We first obviously pitched the lanes, which we are very strong in -- but in case it's a very major customer and then they have some special requirements, then we're able to maybe do special lanes for them. But also, we give them additional pricing for that as a special pricing. And we also request them to move maximum volume through our existing lanes in case we need to do anything special for them.

Yes. Or hard work for a pad list for start of 24-hour 48-hour delivery or 72-hour delivery.

Yes. We also have frequency. So based on load and consolidation, we don't move them every day. We can move them sometimes twice the price way based on how much of consolidation we have. That's how we have structured the whole business.

That's good to know because it was a new vertical for you all, and now you are optimizing it. Like that is what I understand. And lastly, I just wanted to know some like in this whole call, the cash and was a very big focus. Like where is it standing as of now? Could you just throw some light on that?

Yes. So that continues to be a focus. Like we announced earlier, we've got a large contract for rolling out of dedicated cash rents. And 2 -- 3 more large contracts are in pipeline in discussions. So that will continue to drive our growth. So the cash and operations the share of cash and operations has been steadily increasing, as you can see in our investor presentation, you highlighted that. Last -- It's about 12% today. Cash on operations are about 12% of our revenues.

Mr. Chawala, you want to ask more questions?

No. That's all from my side.

[Operator Instructions] We will take our next question from the line of Sandeep Samantha, an individual investor. We will take the next question from the line of Dilip Kumar Sahu, an individual investor.

My question was on the core. We had picked up a large project order from an existing customer. Has that rollout started? Can we expect it to completely reflect in Q1 onwards?

Yes. Rollout has started from first April onwards.

So the core -- that order itself should have added around 3% to 4% on this year's top line. On the core business, -- so is it fair to say that the core business will grow double digit outside that order? And the question is mostly -- do we -- I mean, there's been a lot of inflationary costs in the last 2 quarters, particularly in both in wages as well as and fuel -- do we have a way to reflect that in the current U.S. revenue?

Yes. This is a good question. Actually, we are all the fuel crisis and the consequent cost of fuel. And as a consequence, you must have read it the newspapers, our cash logistics association or the currency cycle association has jointly now approached all our banks to relook at how best they can accommodate this and help us with this fuel charges which have gone up. And so that process of discussion has commenced. So we look forward to some positive outcome from that, which will help us in managing these additional charges, which would obviously have an impact on the overall operational expenditure.

Sure, sure. So assuming that we have a favorable outcome of this whole exercise, where do you think we will end up in the -- I'm not talking about the subsidiary losses, I understand that they are unpredictable. And while we are all optimistic, it may or may not happen. But our core business itself has suffered a lot. And listening to your other peers, they are taking very surgical measures to cut down on cost, and that is reflecting already into their results. So when will our core operations so healthy profitability?

We are very [indiscernible] of this issue. And as we mentioned, this is something that has been universally looked at by our industry. And we are quite positive that it will have a resultant positive impact right from the first half of the financial year.

Sure. This is regarding the exceptional item, that is reflecting in the consolidated numbers. Now if we take out the exceptional item also, there is some RBI had mandated certain deployments and some incentives. Now what would be the total impact of such kind of 1-odd events like the deployment of POS until December as well as now the unfortunate thing. What is the net impact of this onetime event? Can we quantify that on the subsidiaries?

No, no. Impact of this exceptional on subsidiary is about $31 million.

Yes, that's the in the -- the post deployment we did last year -- I mean, last financial year, -- is that -- that's not a repeatable event, right? I mean, we will be -- the RBI incentives are already withdrawn on the fast deployment isn't it?

Yes. So the PAD subsidy ended in December, -- but we -- like I said, we have -- while since the subsidy was available and was to be expired a significant management focus was on that particular area for the last 2 quarters, that is Q2 and Q3 of last year. Since then, as in we have been working for in utilizing our rural network strength and kind of with, as I said, the 2 small finance banks and this thing. So we are no longer dependent on the PIDF to grow our business. we have ambitious growth plans for the current year and definitely try to achieve breakeven within the first 2 quarters in that business. There is a large business opportunity available for us to tap into a rolling out on capitalizing on our existing 1.5-plus POS machines in terms of transaction revenues to deploy more equipment like onboxes and QR code in these and new outlets as well as deployment of larger machines through the small finance banks.

Sure, sure. And you are saying that despite the withdrawal of the incentive, it is the remunerative to deploy those posts and sounboxes in the earlier?

Yes, yes, yes.

Next question is from the line of Chandramouli Jagannathan Individual Investor.

When it comes to our consolidated numbers, I could see that the turnover comes from the consolidated, I mean our subsidiary should be about INR 7 million in the last quarter. So there is anything that I'm missing or the transaction revenue alone is only INR 70 lakhs. If I look at the cost in a fixed cost employee and the renters roughly about INR 6 crores on a quarterly basis apart from that depreciation. So to achieve breakeven, I think you have to at least INR 6 crores to INR 7 crores run rate on a quarterly basis. Correct me if I'm wrong.

Okay. So the -- go ahead. Yes. So the -- to achieve breakeven, it will be slightly less than we will be probably at about INR 4.5 crores, INR 5 crores per quarter is what the breakeven revenues will be. The numbers you said are right. About -- a little less than co is the standalone revenue for the subsidiary for Q4 because that was the transition period. But as in essence, as I mentioned, we have already signed up with the small finance banks and an NBFC, and the numbers are much stronger in expected numbers to be much stronger in the first quarter this year.

[indiscernible] considering the sale meshed things like that. But as -- I think it's got over in the last number?

No, no. Yes. See, the only the subsidiary got over, but we have -- still have the banks have their own mandate to roll out machines. Their own small finance banks are hungry for growth in specific geographies where they would want to grow. So we are helping roll out of that our machines, our software and for the -- for on behalf of the stores as back. And also through NBFCs, we are rolling out. So there is a demand for this equipment in inter-plant specific geographies, where we have a strong rural presence.

This INR 70 lakhs is the whole transaction revenue or even this also put up some?

No, no, that is the transaction. There is no material cost in that.

Which means we will be likely to grow from this level?

For sure.

Yes. And above the onetime card which has happened, how is it.

Well, the investigations have identified the culprit and some of them have been taken into custody now. And it is the specific geography of AAM where this has happened. But the most important compete is still at large. And we are in the process of trying to -- the policies that pursue trying to taking into custody. Once that happens, then we'll have a sense of how much recovery is possible from this incident. So at this point, I won't like to comment that to what is likely to be the result of that the intact.

But as a product we have provided a amount as well to the books.

Next question is from the line of Amit Mehendale from Robo Capital.

Given that we are contemplating, are we targeting that in H1 or H2?

Come again?

Both subsidiaries that we are -- that we expect to break even, would it happen in the first half of the year or it will take in the second half?

Yes, our target is to reach breakeven in the first half for both.

Thank you. Ladies and gentlemen, we will take that as the last question for today. I now hand the conference back to the management for closing comments.

Well, thank you very much. I'd like to thank all the investors for the active participation, and they are good questions that they directed at us. In conclusion, I'd like to say that the performance for the year has been subdued and management is taking several bites to grow the core business and turn around the performance the new initiatives that we have taken. With renewed focus on sales initiatives across all the verticals and side and cost reduction measures, we are confident of improving the performance in the current financial year. I want to express my gratitude for your continued support to Radiant. We are confident that our continuous efforts will yield promising results for all stakeholders. Thank you all for your time and your continued interest in our company. Thank you very much.

Thank you, sir. On behalf of Antique StockBroking Limited, that concludes this conference. Thank you all for joining us today, and you may now disconnect your lines.