Seamec Limited (526807) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Seamec Limited Q4 and FY '25 Earnings Conference Call hosted by Arihant Capital Markets Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Abhishek from Arihant Capital. Thank you, and over to you, sir.

Good evening, everyone. On behalf of Arihant Capital, I welcome you to the earnings con call of Seamec Limited for Q4 FY '25. From the management today, we have Mr. Rajeev Goel, Non-Executive Director; Mr. Vinay Kumar Agarwal, CFO; and Mr. Sunil Gupta, Vice President, Strategy and Investor Relations. Welcome the management of Seamec Limited on this call. And now I invite Mr. Rajeev Goel, Non-Executive Director, to give his opening remarks, following which we'll have open the floor for the Q&A. Over to you, sir.

Good evening, everyone, and a warm welcome to this investor call for Seamec for presenting our Q4 FY '25 earnings call. Thank you for taking your time to join us today. I'm Rajeev Goel, and I'm joined with my CFO and my Vice President, Strategy and Investor Relations. In the present ongoing regulatory shifts and the political adversaries that are happening and the evolving energy demand, we understand a lot of changes are happening globally in the energy ecosystem. But Seamec has always demonstrated resilience underpinned by the sustained global demand that reaffirms the enduring importance of oil and gas in powering the world economies. We all know that our oil demand is growing and the quantity that we require from -- it has already increased from 5.55 million barrels to almost 5.74 million barrels in 2025, which is like a 4% annual increase in our oil demand, which is more than the China's growth rate. The global energy consumption is projected to grow by 1.8% to 2% in 2025 as compared to 2024. This surge is fueled because of India's rapid economic expansion, urbanization and industrial growth and particularly in sectors of logistics, transportation and petrochemical. So on a good note, our Board has approved the purchase of another MSE called NPP Nusantara. And this is a vessel where Seamec International, our wholly owned subsidiary, holds the acquisition rights, so they will be nominated in favor of Seamec. This vessel was built in 2010, and it is being acquired at a cost of USD 23 million. And this financing will be a mix of debt and our internal resources that we already have in our hand. Another good news that I want to give you is regarding the vessel Swordfish. So this vessel, we -- in our previous call also, so we went into an arrangement for charter hire, ran into some technical issues on part of the vessel, got off-hired, then we again were desperately looking out for a charter hire for the vessel. And finally, we have now got into a 2-year long-term arrangement for the vessel and the vessel has been on-hired effective 21st May. So as of now, today, I can say that almost the entire fleet of Seamec is working in the fields, and that's a good development for the company. I'm pleased to also announce that the charter for Seamec Swordfish is 730 days and the effective rate is almost $78,000 per day, and this remains unchanged during the entire period. Further development is that in our wholly owned subsidiary in Dubai, which is Seamec International FZE, we have incorporated a joint venture company in the name of SEARETE India IFSC Private Limited in the Gift City of India in Ahmedabad, Gujarat. And the other joint venture partner is a company called Arete Shipping DMCC, which is also a UAE-based company. And the primary object of this joint venture is, again, leasing, buying and sale of vessels. So although '24-'25 was a very challenging year for us but now in the present scenario, we are very confident, we are very optimistic that '25-'26 will be a year of results, year of delivery, year of performance. And I will now hand over the floor to Mr. Vinay Agarwal, our CFO, and he will run you through the detailed overview of our financial performance for the quarter and for the year-to-date. Thank you.

Thanks, Rajeev ji. Good evening, everyone. I am Vinay Agarwal, Chief Financial Officer for the company. I warmly welcome everyone participating in today's Q4 and FY '25 earnings call. Allow me to walk you through the stand-alone and consolidated financial performance for the fourth quarter and full year of financial year '25. Our consolidated top line for the quarter stood at INR 210 crores compared to INR 240 crores in Q4 FY '24, reflecting a 12% decline year-on-year. As a standalone level revenue stood at INR 207 crores from INR 234 crores in same period previous year. For the full year, revenue at consol level stood at INR 682 crores compared to INR 758 crores in FY '25 -- in FY '24, down by 10%. At the stand-alone level, FY '25 resulted in revenue of INR 660 crores versus INR 707 crores in last year. EBITDA for the quarter at consol level was INR 91 crores in Q4 FY '25 versus INR 90 crores in Q4 FY '24. On a stand-alone basis, EBITDA stood at INR 104 crores in Q4 FY '25 same as in Q4 FY '24. Consolidated EBITDA for FY '25 stood at INR 244 crores versus INR 271 crores in FY '24. At the stand-alone level, EBITDA was INR 264 crores in FY '25 against INR 290 crores in FY '24. Decline in performance has happened mainly due to unscheduled breakdown of vessel Seamec II during quarter 3 and lesser deployment for vessel Seamec Swordfish during financial year '25. Profit after tax on a consolidated basis was INR 41 crores compared to INR 53 crores in the same quarter for the previous year. On a stand-alone basis, profit after tax stood at INR 59 crores in Q4 FY '25 versus INR 76 crores in Q4 FY '24. Full year operations resulted in PAT of INR 88 crores in FY '25 against INR 121 crores in the last year at the consolidated level. PAT at the stand-alone level was INR 116 crores in current year against INR 187 crores in the last fiscal. This is due to tax impact of INR 15 crores in Q4 FY '25 as there was carried forward tax losses available in FY '24. Both the ROCE and ROE stood at 9% at the consolidated level. Now our vessel Swordfish has commenced operation. And with the ongoing efforts, we are confident to get back on track in the upcoming quarter. Thank you. I would now like to open the floor for question and answers. Thank you.

[Operator Instructions] The first question is from the line of Sahil Vora from M&S Associates.

Sir, given the increase in long-term debt, what strategies are in place to manage debt levels and ensure financial stability going forward?

I am Vinay Agarwal. So when you are saying increased debt level to our understanding debt has gone down. This year, we have a debt of around INR 170-odd crores only. So where you are saying this has gone up. Sahil, will you please check?

Yes, I meant the long-term debt, sir.

Okay. Now I got it. So what happens long-term debt, again, this is getting reduced. Sahil, see, this year, financial year FY '25, '26 -- '24-'25, we have not taken any additional debt. In fact, in last 4 quarters, we have only repaid the debt, okay? We are having cash surplus available in the books, which will also be used for repayment and CapEx going forward. As Rajeev ji just said, the further acquisition, we will be utilizing our cash reserves and try to minimize our debt position in the coming financial year.

Okay, sir. And my next question is what is our current order pipeline? And how do we see that reflecting in our revenues in the upcoming quarters?

So Vinay Agarwal again. So when we talk about pipelines, so as Rajeev ji has earlier told in his address, all our vessels are deployed and only one vessel that is Seamec barge that has completed its long-term contract of 2 years on 15th of May. So during off-season, it will remain off-hire from 15th May to 15th October being monsoon season. And after that, it will be deployed, though we don't have its order in hand, rest all vessels are deployed, and they are working on long-term contract.

Okay, sir. My last question is, sir, I wanted to understand where most of our revenues coming from and how do we plan to reduce our revenue concentration? And have we been doing anything to do the same?

So I'm Rajeev Goel this side. So we are primarily a vessel-owned company. So the primary revenues are all from the charter hire of the various type of vessels that we own. Actually, we are not a bulk carrier or a cargo vessel-owned company. We are the owners of very special and technical vessels, which are quite huge in CapEx. And these are the lifelines of any oil field, right? So as we all are aware, in India, West Coast, which is owned by ONGC is the only developed oil field and of late, a lot of work has happened in the KG basin, where after the discovery of oil, almost all major oil companies have set up their base office, started drilling, oil has started coming out, platforms are being set up, right? And we are the lifeline for these oil fields. So at present, majority of my vessels are on charter hire with ONGC deployed in the West Coast. Other than that, I'm also working opportunities in Middle East Asia. So Swordfish is now going to Aramco, which is the oil major for Saudi Arabia. And one of our vessels, Seamec III has already made its entry in the KG basin on the East Coast, where we are right now working for Hardy Oil. So opportunities are there. Entire fleet that we have in our possession is right now engaged. We are buying new vessels with firm contracts in hand for next 4 years, 5 years. So that is where the growth, the CapEx and the overall expansion comes into picture. So I hope I have satisfied your queries. Thank you.

The next question is from the line of [ Abu Rafe ], an individual investor.

Sir, am I audible?

Yes, please.

Sir, in your previous con calls, you have said that on the consolidated basis, you aim to be profitable by this quarter. And again, we get to see this quarter that there were significant losses on the consolidated business part. So first of all, what was the reason for those losses? And from here onwards, when do we expect on the consolidated business to be profitable?

Thank you very much for your question. Again, I'm Rajeev Goel. So in terms of the consolidated business that we have, so our Dubai subsidiary is already profitable in FY '25, right? In terms of our U.K. business, that is still in the development stage. And the losses that you are seeing in the balance sheet is primarily because of depreciation, which is a noncash item. And other than that, there is the interest provision on the CapEx that we have incurred. So primarily, these are -- that is the reason that U.K. is still showing a loss. In another 12 to 15 months, the development part in the U.K. will be completed. And our expectation is that we will be cash flow positive starting FY '26-'27 onwards. Our UAE is already profitable.

Okay. Fine. So my next question is, sir, on the tax liability part, why is it that some quarters, the tax liability is so high? And for other quarters, it is almost nil.

Thanks, sir. I am Vinay Agarwal. We are tonnage tax company. All our vessels are taxed under tonnage tax scheme covered under Chapter XII-G. Except barge, 1 vessel, which is Barge Glorious that is not a qualifying vessel. So its income is getting taxed at the normal rate. So this is the reason why we are showing tax in this quarter. In earlier 3 quarters, this vessel, whatever profit they have earned, they were sufficient to cover its cost, which they incurred during monsoon period of Q2 and Q3. But in this Q4, there was no off-hire period and it ran successfully whole of the 90 days. So its profit has gone up, corresponding profit and corresponding tax has also gone up. Apart from that, there are certain other income that is earning of interest and mutual fund gains. So tax has also been provided on these earnings, rest all income from shipping are under time and there is virtually no tax on that. Thank you.

Okay. Understood, sir. Sir, the next question is, sir, your Swordfish was to be deployed by March end, but it did not. And you have specified the reason for that. But my question is, sir, was it still doing some work in the time being? Or was it just sitting idle since March?

So since March -- thank you for your question. Since March, this vessel was idle and we were negotiating a new contract, right? The old contract we closed successfully, although at a reduced charter rate. So from 21st of May, this vessel has finally gone to Saudi Arabia to work in Aramco. And the entire period of March and April, that was totally unplanned. Our earlier plan was to go on charter in March itself. But for various reasons, we couldn't. So -- and the primary reason why we were sitting idle in the month of April was that Saudi Arabia, all of a sudden came up with a notification where they stopped giving visa to India, Pakistan and South Asian nationals because of the Hajj in the month of June, and they stopped giving visas till 7th of June to all these people who are -- they expected a huge rush for Hajj. And then we went ahead and requested the embassy that we are not going for Hajj. We are a vessel company. We have to work in the oil field. And finally, on 21st of May, we have gone on charter. Thank you.

Okay. Just a related question to that, sir. Can we expect any new favorable contracts in the Gulf region in the near future?

I would have been very happy to have more favorable contracts, but this vessel is now chartered for the next 2 years, right? And my other vessels are all chartered with ONGC for at least 3 to 4 years. So as such, I don't have availability of vessel for next 3 to 4 -- next 2 to 3 years. And if we can get hold of another expansion by purchase of new vessels. So definitely, there's a lot of work in the Gulf coming from Aramco and also coming from ADNOC, which is Abu Dhabi National Oil Company. But the only problem with us is now we don't have the vessels to actually offer them.

Okay. Sir, related to the vessel part. So earlier, you have said that you have 2 vessels in your parent company, that is HAL Offshore. The one vessel that is Anant that you have already brought in. And what about the other -- there were plans to bring in the other vessel as well?

No, there was only one vessel in the parent company that is Seamec Anant. And as part of the overall structuring, that vessel has not yet arrived in Seamec. It is still under process. And once completed, we will duly inform.

Okay. Sir, just last question from my side. So the joint venture that you have done with the UAE company, what sort of revenue can we expect in the near future?

This is again a starting point. So as you all know, our UAE subsidiary is primarily engaged in bulk carrier business, right? We already have one vessel in the UAE subsidiary, which is engaged in time charter for cargo handling. And this joint venture, again, is -- we are acquiring another cargo vessel. And again, we will be putting it on time charter. And the JV partner is the person who has identified the vessel, who has brought in the contract and who will also be a 50% equity partner in this JV.

[Operator Instructions] The next question is from the line of [ Rashi ] Jain from [ MM ] Capital.

So my question is, given the volatility in the offshore oil and gas sector, so are we exploring diversification into other marine service sectors to stabilize revenue streams?

Thank you for your question. So I'm very confident to say that for us, there's no vulnerability. All my vessels right now are engaged, working well. And they're all deployed for the next 3 to 4 years. The only layoff period is monsoon when actually the entire oil and gas industry comes to a standstill. So we are not looking for any expansions anywhere.

Okay. Also, can you provide insights into the current utilization rate of fleet and how they -- like how are you comparing to the industry benchmark?

So in terms of industry benchmark, I'm the only company in India operating multi-support vessels in oilfield, whether it is private sector or public sector. So there is no industry benchmark as such. If we do not consider the monsoon period, then once we enter into a long-term contract, which is generally 3 to 5 years, then you are looking at 100% utilization. So at present, all my fleet is engaged and they are all on at least 2 to 3 years of charter. So for the next 2 to 3 years, my revenues, I'm seeing very comfortable on that.

Okay. Just sir, the last question. Are there any plans to expand operations into new geographical markets? Like any CapEx plan, especially in the region showing increased offshore activities?

So again, I would say that already we are buying this vessel Nusantara with a firm contract. In terms of the operations in Northern Europe or maybe Southeast Asia, so we need new assets to actually offer to them. So right now, the asset that we acquired is getting chartered with ONGC. The other one has now gone to Middle East. So immediately, there are no further plans to acquire more assets...

The next question is from the line of Saket Kapoor from Kapoor & Company.

Firstly, sir, as you alluded to the fact that all the vessels in our portfolio that is fixed in number are now being deployed. And so for this quarter, we will have the revenue benefit from all the vessels equally or there will be part -- because I think one was deployed in the month of May. Can you just explain that part of it? And so on a full deployment is on a quarterly basis, what should be the ballpark revenue run rate going ahead?

Saket ji, this is Sunil Gupta. See, out of 7 vessels, one is barge, which Vinay ji just told you that it operates only in the non-monsoon period. So from 15th May, that is on off-hire, and we will be putting it on hire again back in somewhere October, November. Okay. And 2 other vessels, which is Seamec III and Seamec Princess, these are our older vessels, which run on spot market basis. Rest, all 5 vessels -- 4 vessels are on long-term contracts and will be running equally among all contracts -- all quarters going forward. However, one caveat during the year, some of our vessels will go for dry dock. And during that period, there will be a gap of about 60, 70 days when the vessel will be off-hired and will be under overhaul. I hope I have clarified.

Sir, I got the point that 4 are the ones which are on a longer charter, 2 are on spot rate and one is for the barge, which you mentioned, which is yet to be deployed.

Correct.

So sir, just to map the revenue trajectory, what should investors [ fencing in fields ] these are long-term contracts and there are no variations in the revenue for the 4 vessels which you have mentioned. So what should be fencing in terms of the revenue going ahead? And another point was that we have seen that the rig rates have fallen drastically. In the last charter rate, the rigs which were deployed to ONGC by both Jinder Drilling as well as Great Offshore were at about $37,000 or $38,000...

The rig rate is not relevant for us -- for us, it is like a technical work that we do, highly specialized job, where the rig rate is primarily governed between the demand and supply situation. Ours is more of a marine services, which is an evergreen service that we have to give.

Actually, we come into picture when the oil production has already started. Rigs comes into picture when you discover an oil field and you set up the rigs to start drilling the oil. So that is dependent on the oil prices because if you have a very high oil price, then you can dig deep to find the oil. If you have a low price, then you don't dig deep, right? But ours is a very stable business in the terms once the oil has started coming out, then the cost of producing oil takes care of my revenue. So I'm not linked to the oil prices. Cost of production remains the same.

Also, I would like to clarify your other point on the revenue rate. See, these vessels are on different type of jobs and having different revenue rates. I would request you that you can refer to one of our research reports, which will be available online where the entire model is available, and this will help you and probably Arihant Capital can help you give those details that you may ask for.

Okay. Last 2 points, and I'll join the queue, sir. Firstly, then what are the reference point of setting this charter rate? When the rates come for renewal, there must be some benchmark or a reference rate on the basis of which the renewal happens or the market or the rates are defined. So as Sunil ji was mentioning that it is a specialized service, all taken into account, then how do the person who is deploying our -- is giving us the rate, how is the rate defined? What factors lead to a revision rate?

Okay. So the benchmark while deciding the tender rate is very simple. Number one, what is the reservoir left in the oil field, that is the amount of oil that you can produce in the next 4 to 5 years of the tender period. What is the present cost of production? So definitely, this cost of production increases every year because of the inflation factor, not because the oil prices. So that inflation is definitely accounted for. And now that we are quoting a firm rate for the entire 5-year period, so we have to make that adjustment for the inflation while deciding the benchmark rates for the cost of production. So that is the prime reason that how much is the production going to take place? And what is the present cost of production and to add to it the inflation adjustment.

Right. And lastly, sir, on the U.K. part, I think some investments were made in terms of some office space, which we had purchased for building our business model there. So -- and I think so the earlier participant also did raise the question of consolidation -- losses arising out of consolidation. So are these attributed to those investments? And what steps are being taken to nullify the investment or to divest the same? And secondly, sir, if you could just explain to your investors and the people listening the call, how is bringing in the vessel from the parent will go to -- will be benefiting us when other -- in all aspects, the thing gets consolidated. Just to throw some light on the same as in your earlier remarks, you mentioned.

Sunil this side. So first, I'll come to the vessel consolidation. As you are aware, we are already in the process of it. There are a few details which are still under working. So I can't divulge a lot of details. But the endeavor is that all the vessels and the businesses will eventually get merged with the Seamec. There is only one vessel, which is HAL Anant. Definitely, Seamec's balance sheet is strong. So between a mix of debt and equity, that vessel will be financed. Since the charter is already with ONGC by HAL, so that arrangement will continue for some time. And when the renewals happen, they will be directly taken under Seamec, okay? There are 2 more contracts, which the vessels are owned by ONGC, but operated by HAL Offshore. The endeavor is that we should also try and see if these contracts upon renewal can also be built under Seamec. Coming to the U.K. losses, it is our endeavor. See, last year, we had a INR 67 crore impact on the consolidation versus stand-alone, okay? And this year, we have already come down substantially. We have sold on some loss-making assets in Dubai. In U.K. also, it is our endeavor that we make efficient business operations and ensure that this gap between stand-alone and consolidated gets nullified over next 2 years.

Right, sir. So in a nutshell, just to take into account the preface and the tone set, this is looking to be a better year in terms of the business environment than what FY '24-'25 was.

Definitely. As Rajeev said, Definitely, the vessels are on long-term contracts. We are adding one more vessel to fleet, which is Nusantara. So definitely, FY '26 should be better than FY '25.

The next question is from the line of [ Mahal ] Rao from Summit Capital.

My question was we have 3 DSVs, Seamec II, III and Seamec Princes with a life of almost 40 years as on date. So just wanted to understand what is the remaining life of these 3 vessels because it is almost more than 40 years since we have been operating them? And also does the operational efficiency in terms of ROCE reduces incrementally due to the maintenance of such ships as the age increases.

Thank you for your question. I'm Rajeev Goel this side. So definitely, as the vessel gets older, the maintenance cost increases and the charter hire remains the same. But then the call is that whether you really want to scrap this vessel or till the time it is earning you good amount of money in terms of the difference between the charter hire and the expenses, why not continue with it? So Seamec II is still on a charter with ONGC. So we really -- we are quite happy with that. And if the opportunity for the renewal of tender comes to us, we would be happy to offer Seamec II against the renewal of tender. And if we get it, then we have another 3 to 5 years of working with us. Seamec III and Seamec Princess, they are vessels which have deployed outside ONGC. So one is deployed with L&T on a 2-year contract. But during monsoons, these vessels are laid up at the port because there is no work happening. And Seamec III is a vessel which has been well accepted in the East Coast. And since Feb, it is already deployed with Hardy Oil in the East Coast. So it is again on a spot rate, right? And our plans definitely are to replace these vessels over the next 3 years, 5 years with better new vessels as we have purchased Paladin, we have purchased Swordfish. Now we are purchasing Nusantara. So this is all part of the plan where we are replacing the old fleet, increasing the number of vessels, and that is what we plan to do in the future also.

Okay. Sir, my second question is, sir, this -- what we say, the L&T contract, which we won in 2022, about $101 million. I just wanted to know how much did we execute every year up until now? And how much do we subcontract it? Is my understanding right, we subcontracted to POSH and all of them and the entire revenue is recognized in our book. Just wanted to understand the working around this $101 million L&T contract.

I am Vinay Agarwal this side. So you have rightly mentioned, we have won a contract of $101 million, but this was in consortium with POSH Subsea Singapore. And our share of -- out of this contract was somewhere around USD 30 million, USD 31 million it was spending over to working season, which we have successfully completed and all revenue pertaining to this contract has been booked in our system. Nothing left. And further to that, the contract was PRP-7. Now we have entered into another contract extension of this contract that is called PRP-8 with the same set of which is POSH as a consortium partner with L&T. So all 3 are working again on the same kind of job with L&T.

But this is the same $5.61 million contract, which is the PRP-8 for Seamec...

Right, right, right.

So as of now, this is the only contract for both Seamec II and Princess, they are together working on this $5.61 million...

No. As Rajeev just told you that Seamec III is already in the East Coast working Hardy Oil and Seamec Princess is what is working on PRP-8.

And Seamec II is working with ONGC on its present charter of 5 years, out of which we have already completed 4 years.

So Seamec III, we had won a contract from Asia Energy Services and which was started on 14th of May, and it was, I think, an 8-day contract. So as on date, we are talking -- I think there is no exchange notification. So is it still working? Or is that ended?

Seamec III started this particular contract with Asian Energy way back in February 2025. Initial term was 30 days. And after that, there has been extension of 15 days, almost like 4, 5 times. The last extension was given on 14th of May till 31st of May. And right now, also, it is working in the field. If the work doesn't get completed on 31st May, we can expect another extension of 15 days.

Got it, sir. Because our exchange notification was actually for 8 days from 14th of May extension, the latest notification. I just had the confusion.

That depends on the [indiscernible] actually.

Okay. Sir, my last question is, we had won the Swordfish contract of about $3.46 million from Mermaid Subsea. But then again, we said we had some kind of breakdown and that got converted to about $1 million. So I just wanted to understand, did we get paid for that $3.46 million because we commenced on 21st December and then it ran until 30th of Jan, so almost 40 days, but then we said we had a breakdown. So if that $3.46 million is recognized or not or overall, only $1 million got recognized for the Seamec Swordfish?

So what happens in this case, we get into 1 contract with Mermaid Subsea for USD 3.4 million, and we started working on that. Vessel was deployed in December '24 with Mermaid. But after some period, our 1 crane got some technical snag and vessel was not able to do the saturation diving for which this vessel is required by Mermaid and by our end client, Saudi Aramco. So they reduced our charter rate from the earlier decided rate of -- because they were not able to do the saturation diving. So they shifted it into air diving and they reduced our rate. So whatever work we have performed, whatever number of days we have performed, we have built for only those days. We have not recognized USD 3.4 million as a revenue. Hope I...

Clearly understand, sir, the $3.46 million, we didn't recognize that and we recognized some $1 million for the, I think, ADSV services. Is that correct?

So whatever figure you are quoting as of now, I cannot verify that. I cannot endorse that. But whatever actual number of that you have got, we have got. That is the reason. We have put only that much.

Okay. One last question, sir, is generally for all our fleet of ships, generally, what is the time period during a year when it is nonoperational due to the rains? And is it that every vessel is nonoperational in those days or there are some vessels which can run throughout the year? Like, for example, now we have the Swordfish long-term contract. So if I were to understand if there is no breakdown and hypothetically, it is the best situation, how many days can it run in a year considering the rains and all of that, just to get that...

So see, all long-term contracts, which are on diving support services run throughout the year. If there is no breakdown, then you can assume full year working for that, 350 days, that is what we consider, okay? In terms of vessels, which are on spot basis or underwater construction activities since these activities get stopped during the monsoon in the West Coast, so they operate typically 7 months in a year. The barge, which is also accommodation barge is also deployed for 7 months in a year. I hope I clarified.

Due to time constraints, that was the last question. I now hand the conference over to [indiscernible]. As there are no further questions, I would now like to hand the conference over to Mr. Bala Subramanian. Thank you, and over to you, sir, for your closing comments.

Thank you very much. Thank you all the participants. And any further questions, please reach to us, and we can conclude the call. Have a good day.

Thank you all the participants. See you next time.

Thank you all. Thank you. Thank you, Bala.

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