Sandhar Technologies Limited (SANDHAR) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Q3 and 9 Months FY '25 Earnings Conference Call of Sandhar Technologies Limited, hosted by Dolat Capital Markets Private Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Ms. Shailly Jain from Dolat Capital. Thank you, and over to you, ma'am.

Thanks, Steve. Good morning, everyone. On behalf of Dolat Capital, I welcome you all in third quarter and 9 months FY '25 Conference Call of Sandhar Technologies. From the management side, we have with us Mr. Jayant Davar, Chairman, Managing Director and CEO; and Mr. Yashpal Jain, Chief Financial Officer and Company Secretary of the company. We thank the management for providing us with the opportunity to host the call. Now I hand over the call to the management for their opening remarks, followed by the question-and-answer session. Over to you, Jayant, sir.

Yes. Thank you. Well, good morning, ladies and gentlemen. I welcome you all to the quarter 3 and 9 months earnings con call of Sandhar Technologies Limited. Talking from a broad conceptual point of India, India had initially projected a growth rate of 6.5% to 7% for FY '24-'25. I think it's now been revised to 6.4% for the year ending March '25. It is the slowest in 4 years and below the lower end of government's initial projection. This obviously has come in also because of the weaker manufacturing sector and slower corporate investments. Last month, of course, the Reserve Bank of India lowered its growth forecast for the year ending March 2025 to 6.6% from its earlier forecast of 7.2% after India reported lower-than-expected growth of 5.4% in July to September quarter. The forecast by the National Statistics Office follows several disappointment -- disappointing economic indicators in the second half of 2024. This including low growth, high inflation, anemic capital flows and record trade gap that cast doubt on the robustness of the country's growth. Manufacturing, which accounts for about 17% of GDP, is projected to expand at 5.3% year-on-year in '24-'25 compared to 9.9% a year ago. Let me bring you to some good news, which is Sandhar's performance. Despite all the above, Sandhar's total income growth of 9.27% in quarter 3, where most of our peers actually could not grow and 10.34% compared to last 9 months at a consolidated level have been pleasant. We anticipate that we will sustain and grow this momentum even further, of course, subject to geopolitical conditions, market demand and so on and so forth. In terms of consolidated EBITDA, we registered a growth of 0.5%, which is 500 basis points improvement in the margins to 10.34% compared to 9 months of the last year. Last year, it was 10.1% compared to 9.6% in the 9 months of financial year 2024. In the 2-wheeler segment, the industry recorded a growth of 13%. Sandhar outperformed with 17.58% increase on a 9-month year-on-year basis. In the 4-wheeler segment, the industry grew by 2.72%, where Sandhar did see a decline. In the OHV segment, the industry grew by 5.3%, but Sandhar grew at 6.9% on a 9-month year-on-year basis. In terms of joint ventures, you'd be very happy to know, and I'm very pleased to share that all of our joint ventures are experiencing strong growth and consistently improving performance. Further, pleased to share that all our joint ventures are PAT positive in quarter 3 and 9 months of financial year 2025. This success has been driven by focused cost control, localization efforts, enhanced business synergies. We remain confident that the growth trajectory will continue. Collectively, our joint ventures have recorded a total income of INR 270 crores with an average EBITDA of 12.5%. The list has already, I think, been shared with you in the presentation. The drag for Sandhar has been the overseas business in quarter 3 as well as 9 months and the operations sustained losses marked by low demand and slowdown in Europe. We are closely watching the situation over there. And as we look at it, the preliminary indicators are that volume should see growth in financial year 2026. The company's expansion projects in Pune for cabins and fabrication and die casting are expected to commence the commercial production by end of March 2025. In EVs, the company has started commercial production of battery chargers and is getting positive response from the market. The customer base is also gradually increasing with more and more customers that are being added. On CSR, over the years, we've dedicated ourselves to sustainable business practices that tackle economic, environmental and social challenges. Our efforts go beyond near business concerns, creating positive effects on the communities we serve. Our CSR activities focus on key areas through health care, which is through the Sandhar Healthcare Center, which is in the Village Begumpur Khatola, Gurugram. We do education for girls side largely in Sandhar Ki Beti and the Sandhar Learning -- Center of Learning at Devli Sangam Vihar. We have skilling and vocational training done through Swabhimaan program, senior care through Adopt a Gran program and for environment, we go green through Peenya Industrial Park, Bangalore. We are looking to focus on diversity and creating equal opportunities for gender neutrality. As we go forward, our focus areas will be towards ESG and SGD (sic) [ SDG ], which is sustainable development goals to attain carbon neutrality in the coming years. We continuously work on diversification of our product portfolio, expanding customer base and increasing content per vehicle. We are focused on improving both return on capital employed and return on investment. We are consolidating operations and the idea is to generate more free cash flows and deleveraging of the balance sheet. With those initial comments, I am happy. With me today is Mr. Yashpal Jain, the CFO of the company. We'd be very happy to take your questions on anything that you might have. Thank you.

[Operator Instructions] The first question is from the line of Aditya Kondawar from Complete Circle.

I just wanted to ask you about the debt situation. Are we on track as per the last con call's guidance on reduction of debt?

Aditya, we are at a net debt of INR 673 crores. And if you remember last time, as we said that we'll be finishing up some projects, especially the 2 ones which are going in Pune. So there can be intermittent ups and downs in the debt, sir, but we are on the track because there have been some outflows on account of capital payments for finishing up these projects and remaining payments will be done in quarter 4. So as far as our regular operations are concerned, I think we are in the sustainable level, and we are continuing at a net debt of below INR 700 crores.

Got it, sir. And the second question was that any further inquiries or updates on the smart lock side of the business? Any new inquiries or any new customer conversations that we are having?

Team is consistently in follow-ups with the OEMs because the product has already been developed. Now it's all the adoption by the OEs. So we are waiting for some good news...

Very happy to announce that we have already started production and supplies to 2 of the biggest names. As we speak now, traction is being built with some other customers, and the existing supplies that have started will pick up much larger volumes in the coming months.

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

A couple of questions. The first one being, I think a year or so back, you had guided clearly that you see a 25% plus that sort of a growth for a 3- to 5-year period. The last few quarters, to our understanding, should we take it as an exception and nothing changes structurally on that guidance? So that's my first question. The second is there's a lot of media news around tariffs and how it's going to impact the auto ancillary thing. So if you can take a couple of minutes and sort of let us know, if at all, it plays out, how would it impact us, if any, which way?

Okay. Well, thank you for that question. Very interesting question. And suffice to say that whatever guidances we had given in the past or forecast we've given in the past, keeping the economic condition of the country and how the growth is and geopolitical situations aside, we continue to build our pipelines towards the kind of growth that we had declared in the past. I don't see any reason why. If you've seen a little lower growth in the last quarter or in the 9 months gone by, yes, it is an exception. And I do believe that this should accelerate quite rapidly as we go forward. So that's the answer to question one. What was your second question, sorry?

It was more around the tariffs in U.S. How would it impact us, if at all, it plays out?

Well, the direct tariff thing that would have affected us was Mexico. because we have a plant in Mexico and a lot of our supplies go to North America, while on like-to-like basis, because most of our supplies go to companies like Bosch and TRW, who are located within Mexico. So it is not as if we would have a direct impact. But in case those people have an impact selling into the U.S., we would obviously be affected. At this point of time, while we have spoken to our immediate customers, they seem to be quite positive that there is likely to be no impact. However, we'll have to wait and see as to how -- in case there is any impact, how much it is going to be and how we will have to take it or mitigate it in the future.

[Operator Instructions] the next question is from the line of Jay Betai from Dolat Capital.

Sir, my first question would be what are your thoughts on demand revival on the export side?

On the export side?

Yes, sir.

Well, I do believe that our customers are looking to buy more from India. This continues in the overall policy of most multinational companies looking at China Plus One. India falls into that sweet spot, and I see no reason why exports from India will not grow. However, having said that, you know that the demand right now in Europe is weak. So it's not as if we are losing market share in exports. In fact, we are gaining market share. The only thing is because the overall demand is down, there is an impact on India, not so much on Sandhar because Sandhar largely, as you are aware, supplies within Europe, from Europe. So from a foreign exchange perspective, we are not affected. But from a local demand perspective, I do see that there is -- and I already mentioned that our overseas business has been a drag with some losses in the 9 months and in the quarter. We are now being told that there are green shoots being seen, and the future looks a little better.

So a follow-up question on that. So what would be your order book from the overseas side and expected order book from the overseas?

I didn't get that question. Can you repeat that question, sir, Jay?

So what would be your order book coming into FY '26? What are your order book expectations or any new order wins there?

What is happening is we were using -- you remember, we had set up a plant in Romania. And the Romanian plant could not build up and got delayed on account of the Ukraine war. It has now stabilized, and we do expect that we will have a much larger percentage manufacturing capability being consumed in the coming year. We are very, very bullish on the next year. And we do feel that the loss that we have had in this current year will not continue into the next year, and we will be back in profits.

Okay. Sir, just one bookkeeping question. Out of INR 700 crores of debt you mentioned previously, could you quantify what would be the debt in your JV?

Yes. This does not include the JV debt. This is -- because JVs are not consolidated as per the Ind AS. So this is the debt at the consol level with the subsidiaries and the stand-alone company. JV debt is separate, which is not accounted in our books, but I can tell you the amount, it is barely around INR 8.5 crores as of December in 2 of the JVs combined together.

Yashpal ji, you also want to break it up and give it to them in terms of our foreign exchange debt and here.

Yes, sure. So out of our gross debt of INR 708 crores, INR 284 crores pertains to stand-alone, INR 100 crores for Indian subsidiaries and INR 324 crores for overseas subsidiaries. And the cash balance of INR 35 crores to make the net debt stands at India level.

The next question is from the line of Saket Kapoor from Kapoor and Co.

Sir, as you alluded in your opening remarks that the path ahead would be the improvement in the EBITDA margin and the deleveraging exercise. So if you could just give some more color on what steps would be towards deleveraging? And what are we eyeing in terms of lowering the net debt levels from the current? And what have been the 9-month CapEx that we have done?

Yashpal ji, can you give the numbers?

Yes, sure. So basically, in 9 months, we have done a CapEx of around INR 173 crores, sir, to finish up the regular CapEx as well as our ongoing projects, sir. So this is the CapEx for 9 months. As far as deleveraging of the balance sheet is concerned, as we said in our opening remarks that this year, we'll be finishing up some projects. So as far as the debt is concerned, it is within our estimated figures. But yes, in quarter 4, there might be some increase in the debt to repay our commitments to finish up the project. But next year, yes, we will be generating the cash flows, which will be used to repay this borrowings that will be taken in the current financial year. So I think on an average basis, INR 100 crores would be our repayment in terms of the -- I would say, terms and conditions of the term loans, sir, which we have secured from various lenders.

Okay. So on a peak debt of whatever we will be hitting for Q4, there will be a reduction of INR 100 crores for the next financial year. This should be the idea...

Around INR 100 crores is the normal payments. That has been -- I mean, projected as per [Technical Difficulty] invested, then we can pay more also.

Okay. And sir, earlier call, you did -- guided about EBITDA margin increasing or reaching up to 11.5% mark for the next financial year, that is '25-'26, correct me there, sir, and top line of INR 4,500 crores on a consol level. So does -- taking into account our Q3 numbers, does that trajectory holds true currently? Or would you like to revise it?

Here, I would like to a little bit correct you because EBITDA margins that we have projected for this year was 50-point basis improvement, which is something around 10.45% of upper gap. For next year, another 50-point basis, we have put up the improvement. So that was around 10.95%. 11.5% for '25-'26, we haven't projected. And I remember that we have not shared on the call also. But yes, we see that 11% is a healthy margin, looking to a diversified business and the various [Technical Difficulty] in the industry as well as the global scenario. INR 4,500 crores of turnover, yes, that we have projected for [Technical Difficulty].

Sir, your voice is breaking. Come again, sir.

So as far as turnover is concerned, INR 4,500 crores. I think there is no reason that we should not achieve it. We can achieve it in FY '25-'26, subject to the things moving in the right direction. As far as EBITDA is concerned, we haven't projected 11.5%. For next year, we have kept a correction of 50-point basis from 10.45%, that was the upper range for this financial year. So that was around 10.95% that we have projected that will be between 10.5% to 10.95% in FY '25-'26.

Okay. And sir, there were some new lines, which were to be on stream for January '25. So are we done with that and that will be contributing towards Q4?

Yes, lines are ready, but I think the volumes will be coming in the quarter 1 of FY '25-26 because some testings are going on from the customer side. So there's some little bit delays from the customer side. But from our side, we are ready with the lines. So I think the volumes will hit in the Q1 of FY '26.

Okay. And sir, lastly, sir, on the overseas subsidiary losses, can you give the absolute number for this quarter and for the 9 months? How has the net been from the overseas subsidiaries, the contribution to...

At the PBT level for overseas subsidiaries combined together, we have sustained a loss of INR 17.35 crores. And for Q3 at a consol level, it is INR 10.78 crores.

Okay. And taking into the account the current environment, this should be the continuity for Q4 also, sir?

Q4 also, we had discussion with the overseas team. They are seeing that the volumes are rebounding back. So I think there should be an improvement in the numbers once the Q4 numbers are in front of us. So the losses should reduce. But let's see how Q4 behaves and how is the volume depending on what the policy U.S. adopts in the coming period of time.

Sir, a small point to conclude the way the 9-month growth numbers are, so we should be looking to end the year on the same pace in terms of the revenue trajectory for the current financial year? We are already halfway through the quarter. So taking into account...

This should around INR 4,000 crores of revenue for this current financial year that we are projecting on.

Okay. And margins should improve for Q4 or it will be the same trajectory as Q3 has been?

There should be an improvement in the margins in Q4 because if you see for this quarter, a major drag has been because of overseas business in terms of revenue, in terms of profitability. As far as the Indian operations are concerned, we take into account. They have shown a very good improvement in terms of margins also and turnover also. So fourth quarter, even if you achieve a neutral growth in overseas, I think the margin should be better compared to Q3.

And sir, 2 points on -- firstly, on the RM also. What are the key constituents for RM. And sir, I think so earlier in the call last time also you mentioned about we are creating presence in some of the products which are in nascent stage. And that will be -- that the market will grow. I think you were referring to the EV space. So in terms of the breakthrough and the EV ecosystem currently, what we are hearing from Europe and other economies in terms of EV adoption also taking a back seat and hybrid gaming. So [Foreign Language].

Sir, you want to answer this question?

All right. Okay. Where EVs are concerned, while there is a little bit of a slowdown in the EV space, the fortunate thing for us is because we have a completely localized solution. The dependence on China being brought down, we are getting traction more than some of the others. And therefore, we do see an improvement in our traction towards more growth in the EV sector. However, EV has always been a question mark, will remain a question mark. Today, you are listening to a lot of things where they say that hydrogen may be the fuel of the future. We will have to wait and see. I understand companies like BMW have stopped working on battery technologies for the future, and they are concentrating on hydrogen. So we'll have to wait and see. But for us, the investment that we have made in the EV space, which is largely for 2-wheelers in the form of battery chargers and motor controllers, we have traction, and you will see growth there on a regular basis.

And lastly, sir, in your presentation, if we can provide this debt number breakup also, which Yashpal sir answered for the previous participant...

Sure, we can do that. We can do that. If you want, we can repeat it again, including what is working capital term loan. But in the presentation, yes, sure. Yashpal, we will be happy to give you those details.

You want the breakup of the debt?

You gave, sir. You gave. I have noted it down. Only one more suggestion was there, sir. If we can arrange this conference call for the investors and the analyst community in the second half of the day, I think so we can have better participation than the very early morning hours of 10 a.m. It's basic suggestion I have, since now we are at the fag end of the earnings call. We have ample space. If the management can suffice with that request, sir, at 4 p.m. or 3:30...

We'll explore that. We'll explore with our research agency as well as the Chorus team also, how that works.

[Operator Instructions] The next question is from the line of Jyoti Singh from Arihant Capital Markets.

Sir, my question is on the sheet metal side. As earlier last Q2, we have seen the double growth in this segment. So going forward, what our expectation? And earlier we were, the current utilization, around 55% to 82%. So what's the current utilization and any additional CapEx on that side?

Yashpal ji, you want to comment with whatever our plans were?

Yes. So like in sheet metal, as you can see that we have been doing so we set up new facilities over a period of -- in the last 4 years, we have set up 4 new manufacturing facilities in sheet metal. And the customer response has been good. This time also in 3 months -- quarter 3, the share is 15% -- sheet metal is 14%. As of now, we are in the process of developing some new more products because there has been some slowdown from the customer side in some of the models. So on a continuous basis, we see a growth of sheet metal and it's operating presently at 80%, 85% in between capacity we have. And there is no major project coming up in sheet metal, which require a heavy CapEx. It's a routine CapEx like adding 1 or 2 machines or adding 2 facility -- I mean, not facilities within the -- I mean, set of plant and assets. That is all. But we are not expecting any major organic CapEx to be pumped into sheet metal business.

Yes. We need to optimize the facilities that have already been put into place. And as Yashpal ji said, all we will need probably some balancing equipment, which will open up the capacity even further more for utilization as we go forward. The traction is good. The growth is good and the double-digit growth that you are looking at in the sheet metal business so far will continue as we go forward.

Ms. Jyoti, does that answer your question?

Yes. So I'm asking another question on the product pipeline side. Sir, if you can explain like last quarter, you mentioned multiple parts were under development and that come in 2026. So if you can comment on that side?

Yashpal ji, you have a list of the sheet metal parts coming in, right? [indiscernible] or all parts?

Sheet metal side, sir.

Yes, okay.

So actually, the list is very lengthy. But in a nutshell, I can say that the parts are under development and more parts -- around 18 to 20 new parts will be added in the pipeline to our business. And some of them would be in this quarter, in quarter 4, and remaining will be in Q1 of FY '26. Just to point out here that the development of part is consistent to the business. It is a continuous process as and when the customer asks us. So 18 to 20 new parts will be added over a period of next 3, 4 months. And that will be added up in a turnover in the coming period of time. And that keeps on going up. It's not that the activity stops at some point of time. It is a regular activity.

But if you want a little more details, I can only add that a large part of it has to do with bodies, frames, and so on and so forth. There are large parts, which are being fabricated.

And sir, just last question on the overall industry basis because most of the auto ancillary companies, they are facing issue to not getting more order and issue on the European and U.S. side. So when we are seeing -- when we are expecting and seeing the recovery on that side?

Well, right now, Jyoti, you'd be happy to know we don't have a shortage of orders per se. Yes, the industry slowed down a little bit. But despite the industry slowing down, we are outperforming the market on account of addition in our wallet share of new components that are being given to us. We are very hopeful that this trend will continue. We are seeing that the industry itself is also picking up. So if the industry picks up, quarter 3 was not a good quarter for the industry. But despite that, we seem to have done well. We will continue our outperformance, and that is our plan, and that is what seems to be on the table, as we sit today.

Okay sir. If I can squeeze one more question. On the -- like on the Hyundai side, what's the update on that side that we started schedule on March and originally...

Yes. So Hyundai, the mirrors are ready. They are now being tested as we speak. That project was a little delayed by Hyundai because this was import substitution completely. It has now been agreed that the products that we have supplied are being tested right now in Korea, as also in the endurance test in India. So this whole project got delayed, and I understand now -- the SOPs now begin somewhere in the month of July or August. That is when the full-fledged thing will get converted into our products being supplied locally.

[Operator Instructions] The next question is from the line of Bhaskar Shekar, an individual investor.

I would want to ask how much of margin improvement can be seen on account of the smart lock production? I guess in the last con call, you spoke about the smart locks are going to be manufactured from the month of Jan. My question is, has the supply started for that bit? And also, are we going to see a good improvement in margins because of this part?

Yes. So the quick answer is yes. We started our supplies to Suzuki motorcycle, for example, that started, but the volumes were low. We have now been -- these are now being ramped up to a level of almost 20,000 a month, which should happen as we speak, starting from March. And for the next year, the volumes look very, very healthy. In terms of the margins of the business, yes, the margins are higher, both in terms of percentage, but because the product value itself is about 10x higher than the regular locks that we do, we expect the volume of profit would be much higher. Does that answer your question, sir?

So this is going to reflect in the Q4 results?

Some part of it, small part will, but most part of it will reflect in the next year from the quarter -- first quarters of the next financial year.

The next question is from the line of Shailly Jain from Dolat Capital.

Sir, the tax rate was really higher for this quarter. So what kind of tax rate are we looking for the whole year and FY '26?

On taxation, you are asking?

Yes, yes.

So the tax rate remains 25.17%. 27% goes because there is a deferred tax impact also. The government rates, we are subject to 25.17%, whatever comes with the tax also. So sometimes the swing comes on account of -- because what happens, we have to create a [Technical Difficulty].

Sir, sorry to interrupt. We were unable to hear you. Could you please repeat?

Hello? I'm audible now?

Yes, sir. Better.

So Shailly, the standard rate of taxation is 25% for our company, right? And the changes in the tax rates many times happens because of the changes in the overseas because we are consolidating along with the overseas accounts. But on an overall basis, it remains to be 25% for us. And there is always an impact of deferred tax. So sometimes which increases the tax content, sometimes which decreases the tax content. This is a change. Otherwise, the standard rate remains the same.

And one more question was there that could you please run me through your JV's performance, how Sandhar Amkin, how Sandhar Whetron are doing? And what sort of revenue did they do for this quarter?

Yes, sure. So like I can give you a revenue for quarter 3 also. And if you want 9 months, I can provide 9 months' figures also. Well, Sandhar Amkin is back into the profits from -- consistently from the last couple of quarters. And as far as another entity, Winnercom you have asked?

Yes, Whetron and Winnercom.

Winnercom is again in profits. So if you ask me for quarter 3, like Sandhar Amkin has done a profit of INR 95 lakhs, Winnercom has made INR 75 lakhs. And this another company you mentioned, it has done a profit of INR 1.69 crores. And for 9 months, the profit of Sandhar Amkin has been INR 3.29 crores. Winnercom has been INR 2.22 crores and Sandhar Han Shin has been INR 3.31 crores. So in terms of turnover also like, Sandhar Amkin has done a turnover of [ INR 56 crores ], Winnercom [indiscernible] and INR 22 crores has been Sandhar Han Shin.

And how are we doing on our vision and locking system?

Which one? Can you repeat the question?

How are we doing in our locking system and vision systems?

Yes. Locking and vision system is going good as usual. We have around 25% of revenue contribution from locking and vision combined together. And they are at better margins in this year compared to the last year, except the 4-wheelers where we are facing some down volumes from Honda side. 2-wheelers is doing better.

So how are we planning to like revise this for 4-wheelers? Is this trend going to be on a similar side? Or do you think this trend needs to be changed?

There are new models coming in, and those new models are going to be launched. And we are very hopeful that this thing will change. You're also aware of the Hyundai business, which we spoke about in the previous question. With all this new businesses being added, which are better margin businesses, we will see a reversal in the next year in the 4-wheeler business.

The next question is from the line of Pritesh Chheda from Lucky Investments.

Sir, the South-based OE or 2-wheeler OE, what is the percentage of your sales?

When you say South-based, are we talking about TVS? Are we talking about Royal Enfield? Are we talking about Honda?

TVS. TVS.

TVS, I think in all our businesses put together, including the new sheet metal business, which has also been added, I think we are close to about 30%. What is the number, Yashpal ji?

32%, sir.

32%.

And what was the growth in 9 months for this OE for us?

So 9 months or year-on-year, you want to say?

Yes, 9 months this year versus 9 months last year.

So this year, it is 33% of our revenue. Last year, it was 30% of our revenue.

So that OE has grown 20%, what you say?

Yes.

And the sheet metal, what is the investment -- total investment that you had done in sheet metal?

Sheet metal total investment, you want combined total business, including North?

Yes. Whatever plants you have put for sheet metal in the recent last...

The new plant. Recently, we have put 4 plants that we have disclosed in the earlier calls also...

Sir, your voice is not clear.

We have put up 4 plants in recent times in the last 3 years in sheet metal. And the total investment has been is close to INR 285 crores to INR 290 crores in between.

Hello?

Could you hear it? The total investment has been between INR 280 crores to INR 290 crores in the sheet metal business in the last 3 years.

Sir, I couldn't hear you.

The total investment, sir, is INR 280 crores to INR 290 crores in the sheet metal business in the new plants that have been set up in the last 3 years.

And the asset turn on this was?

What is the revenue Yashpal ji out of this so far?

So the asset turn is close to 2.5x as of now. 2.5x. Can you hear me?

2.5x, sir. Can you hear us?

Sorry to interrupt, sir. The participant has been disconnected.

Okay. You can take up a new participant in the meantime.

Yes, sir. Actually, there are no further participants. I now hand the conference over to the management for closing comments.

Sure. All right. In that case, let me thank all the participants who joined us this morning. We will also keep into consideration the request that this be done in the afternoon. We'll see in case that is possible today, keeping all the aligned parties in check. We do -- like Yashpal ji said, the forecast for this quarter seems to be better than what it was last year. We are also quite confident of achieving what we had set out to achieve in terms of our business plan at the end of this financial year. Once again, I want to thank Dolat Capital and everyone who put this call together. We, as a company, are open to taking your questions even individually whenever you want any more information, and we'll revert to you in the shortest period of time. With that, I want to thank you all once again and all the best.

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