Seamec Limited (SEAMECLTD.BO) Q1 FY2026 Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the SEAMEC Limited Q1 FY '26 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. Balasubramanian from Arihant Capital Markets Limited. Thank you, and over to you, sir.

Thank you, Palak. Good morning, everyone. On behalf of Arihant Capital, I welcome you to the earnings call of SEAMEC Limited for Q1 FY '26. From the management side, we have Mr. Rajiv Goel, Non-Executive Director; Mr. Vinay Kumar Agarwal, CFO; and Mr. Sunil Gupta, Vice President, Strategy and Investor Relations. We welcome the management of SEAMEC on this call. Now I invite Mr. Rajiv Goel, the Non-Executive Director, to give his opening remarks, following which we will open the floor for Q&A. Over to you, sir.

Hello. Good morning to all. I'm Rajiv Goell, Non-Executive Director of SEAMEC Limited, and I welcome all of you to this investor conference for SEAMEC Limited for presenting our results for quarter 1 FY '26. The global shipping industry remains the foundation of international trade with the oil and gas sector continuing to be one of the largest value generators worldwide. I also have with me my Chief Financial Officer, Mr. Vinay Agarwal; and our Vice President, Strategy and Investor Relations, Mr. Sunil Gupta. Entering 2025, the offshore oil and gas industry is on clear growth trajectory, supported by rising global energy demand, technological advancements and an active investment climate despite challenges from the supply chain inflation and the geopolitical uncertainty. As of now, the global oil demand is projected to reach 103.9 million barrels per day in 2025, while the offshore drilling market is expected to expand from USD 36 billion in '23 to over USD 80 billion by 2033, a compounded annual growth exceeding 8%. Investment in deepwater and ultra-deepwater exploration enabled by advanced technologies such as AUV, ROV and AI-driven analytics are gathering pace across the globe. India with its 7,500-kilometer coast line and growing economic need is positioned to benefit significant from this up cycle. Policy initiatives taken by the government like Maritime Rent 2030 and the SagarMala program along FI allowance in critical energy subsectors and the allocation of over 1 million square kilometers for offshore exploration underscore the government's intent to expand the oil and gas sector. So in this booming environment, SEAMEC is advancing its leadership in the diving support vessel segment while executing a deliberate diversification into offshore support vessels and accommodation barges. This strategic fleet expansion increases our operational flexibility and strengthens our ability to participate in a wider range of offshore projects, including EPC-linked assignments. Operationally, the quarter saw solid execution across our fleet with 93% efficiency. SEAMEC successfully completed the pipeline replacement project and transitioned directly into the pipeline replacement project and the Daman upside development project. This vessel completed its season on 17th June 2025 against the projections of 30th May 2025, thereby generating revenues for additional 18 days in the quarter. The other vessel, SEAMECC continued to generate consistent returns through extended charter hire period signed by way of A&M on its original BIMO charter party agreement. SEAMEC 2 completed its dry dock well before the planned time line of 30th September. So we are expecting the vessel to go back to the field by 10th of September, which is a saving of almost 20 days in the scheduled time. Going forward, the acquisition of Nusantara by the company is well on track and the sale transaction is expected to be completed in August itself. And as of now, we plan to put the vessel in the field starting December '25 onwards. We have received the shareholder approval for purchase of SMEL and now the transaction has started for acquisition of the vessel by SEAMEC, and we expect to complete this by October '25. So overall, we remain committed to operational excellence and timely execution of all our ongoing present contracts. With strong sector fundamentals and a clear strategic direction, we are confident that the financial year '25-'26 will be a year of execution, consolidation and growth for SME with the addition of these two high-value vessels, Nusantara and Seamantara. Our focus will remain on optimizing our fleet, securing value-accretive contracts and maintaining financial discipline to deliver sustained value to our stakeholders. I will now hand over to Vice President, Mr. Sunil Gupta, who will take forward from here. Thank you very much.

Thank you, Rajeev, and good morning to all. I extend a warm welcome to everyone -- let me take you through our financial [indiscernible] in Q1 FY '25 reflecting a Y-o-Y growth of 4%. On a stand-alone basis, revenue registered an increase of 2% over the same period last year. However, due to better operational mix and the charter, the consolidated EBITDA for quarter stood at 131 INR crores compared to 81 INR crores in Q1 FY '26 with y-o-y increase of 45%. On stand alone basis EBIDTA rules by 34% [indiscernible] to the corresponding quarter of the previous basis. On the profit front, consolidated profit after tax stood at INR 76 crores as against INR 50 crores in Q1 FY '25. On stand-alone level, profit after tax from INR 52 crores in Q1 FY '25 to INR 80 crores in Q1 FY '26. Our ROC for the quarter stood at 11%, while ROE stood at 10% on consolidated basis. We believe these results reflect our steady progress and resilience, positioning us well for the year ahead. Thank you. I will now hand it back to moderator to initiate Q&A...

[Operator Instructions] The first question is from the line of Harshit Jain from Trinetra Asset Manager.

My first question is, so the management piece has been around 3% to 4% of the sales and it's been -- it is a significant decrease over the years. So can you throw some light on that and when it would come down?

Sumit, can you repeat the question?

The question -- Management piece is around 3% to 4% of the sales and it's a significant increase over the years. So when can we expect it to come down?

See, the management fees that we are paying at present, it is well within the market benchmark. And the company has appointed Graham Thornton to undertake a comprehensive related party transaction, and we are expecting that report any time in the coming -- and once that report is received by us, this is the report. If there's any recommendation that the management fees needs to be curtailed down, we -- the management will be more than happy to take such appropriate steps. But if the report says that it is well within the market benchmark, I don't think we really require to bring that down. So we'll share the related party detailed comprehensive study from Grant Thornton with our stakeholders as and when we receive it.

Okay. My second question is, how much have we invested in our U.K. business? Earlier, it was mentioned that we are planning to invest less and bring back the money from the U.K. business. So can you throw some light on this?

Yes. So in respect to the U.K. business, so as we have always maintained that part of the asset will be used for our global operations because with our expanding fleet, we see the North Sea market as a great offshore operation opportunity. And the other part of the investment shall be brought back once the entire project is complete. So when we initially envisaged and planned this project, so this project was selected to be completed by March '25. As of now, our plans are to complete this in another 12 to 15 months period. And we are on track. We have got the approvals. And once that is done, we will definitely bring half of the...

My next question is that the U.K. subsidiary is expected to turn cash flow positive only by financial year '27. So what is the cumulative loss projection until then? And how much it is expected to impact the consolidated ROCE?

So actually, till the global operations commence till that time, whatever is the cost that we are incurring in the U.K. operations, that is all part of the CapEx. So as such, there is not a very significant operational loss that we are foreseeing. And even to stop the interest burden on the loans that were granted to the subsidiary. So the company in the past through proper expert opinion, and Board approval has already converted the loans into redeemable preference shares, thereby saving on the interest outflow. So as such, going forward, the major factor of interest has now solved. And I don't see any significant OpEx cost coming into operations.

Adding to what Rajiv just said, I would like to highlight in March '24 numbers, the operating loss -- total loss of overseas company was INR 66 crores, which was last year curtailed to INR 28 crores. And this year also, we expect that it will be substantially brought down. And as we said, gradually, we would like that our total operations become profitable.

Okay. So one final question from my side. What's the status on the Anant and Mantra acquisition? And when can we expect the deployment? And what is the revenue potential for the upcoming 2 years?

See, as Rajiv mentioned in his opening remarks, we are about to complete the acquisition of Nusantara in the month of August, post which the vessel will be sent for dry dock, which is a mandatory requirement. Generally, the dry dock period is a 3-month period, and we would like to expedite that as much as we can. With regard to Anand, the shareholder approval has already come. Now the other regulatory approvals are in the process. While the exact time lines may not be clear, but we believe that by October, we should be able to complete that and bring the vessel to water.

Okay. So sir, what is the revenue potential for financial year '26 and '27? And how much margin can we expect on these? How much margins can we expect in these vessels?

See, generally, in our support vessel, we expect a margin of 30%, 35% --

[Operator Instructions] The next question is from the line of Hitesh Agarwal from PL Capital.

Sir, I have a couple of questions. So with the global offshore drilling expected to grow at 8% CAGR till 2023, how is SEAMEC positioning itself to capture a large share of deepwater and ultra-deepwater projects, especially in regions like West Africa and Brazil?

As of now, we are not exploring Africa as a market for our operations. The entire fleet as of now is totally engaged on long-term charters for the next 2 to 3 years, except SEAMEC 3, which we are keeping aside for short-term charters. We have got ample opportunities on the East Coast side because that is a development which is taking place very, very great pace and aggression. And SEAMEC 3 was deployed in last season also in the East Coast. Again, in this season, it is going to the East Coast. So we do not have any plans to actually explore the as of now.

Okay. Okay, sir. And sir, just a follow-up question. Do you currently have any -- have the technical capability for ultra-deepwater assignment? And are you evaluating any partnership with the international offshore contractors?

So we are primarily an air diving and surface diving operation company. What we are doing is we are coming forward and expanding our scope from a diving operating company to a subsea operator. And we are also exploring the market, especially the oilfields of Saudi Arabia and the United Arab Emirates because that is where the company in the last 2 years has gained presence, has earned credibility. And in fact, the vessel Swordfish has now been deployed for a period of 2 years with the Saudi Aramco. And that's a very big achievement because that is one of the toughest market in terms of compliance and vessel maintenance and the rates are very good. So we are more focused on the existing fleet or adding similar fleets to enhance operations in the Middle East. Deepwater diving is a totally different ball game. It requires a different CapEx planning, strategy planning. And as such, the field in which we are operating, we see a lot of opportunities. So that is not on the table right now.

Okay. Okay, sir. Got it. Sir, just want to like squeeze one last question. So how does your bid success rate compare between domestic and overseas tenders? Can you just give a little bit idea on that?

So in India, we all are aware that the entire Bombay high oilfield is owned and operated by ONGC. And as far as ONGC and Bombay high oilfield is concerned, so we are totally secured for the next 4 years with our ongoing tenders. On the East Coast, which is a far we are already working there. in India. sector right now at #1 position in terms of preference credibility from the customers. And as far as the Middle East is concerned, now that we have our entry into the field [Technical difficulty] So I said that now our plans for the next 5-year vision is to add more DSV vessels in the fleet to expand our presence in the Middle East.

The next question is from the line of Jaishri Bajaj from Trinetra Asset Managers.

[indiscernible]Operation how are you balancing maintenance with the replacement CapEx? And what is the ROE below which you would vessel?

So as of now, if you see the past 3 years, so this is a very good question, and I thank you for that. So we have been actively monitoring the aging aspect of our vessels. We have brought in Seamac Paladin. We have brought in Swordish. We have now brought in Nusentara. We have now brought in Semac Anant, which is brand-new vessel. So with the addition of these 4 vessels, what we have scrapped is Seamac1, an old vessel. The plans are now there to Seamac 2, seamac 3 and Seamac [indiscernible]. They might run out of operation in the next 5 years as far as our vision is concerned. And that will be done by adding more vessels, newer vessels, younger vessels to the fleet. As far as their ROI is concerned, so these vessels, the book value is almost nil because they have been almost fully depreciated. And it is only a matter of adjusting my revenue against the OpEx cost of maintaining these vessels. And if I say you a very plain breakeven of even $30,000 per day gives me almost 25% return on the operations of these vessels.

Next Question is performance of this quarter is very good. And so how you are planning to sustain this profitability for the next -- for FY '26 and next financial year after divestment of loss-making Dubai assets?

See, the idea is that we -- our diving support vessels are put to use in more consistent and continuous manner. Since Swordfish is on a 2-year contract, Seamac 2 after the dry dock will work continuously. Paladin is on a continuous contract. with the addition of Nusentara and Anant, they will also be on a long-term contract basis. So we believe that our vessels will work on longer contracts in higher velocity than previously. This will help both in terms of consistent performance as well as growth for the company.

The next question is from the line of Rahul Chaturvedi from Nexa Group.

Sir, just wanted to understand beyond India, which overseas geographies are your primary growth targets in this year?

So as I explained earlier in the call also, so we are now targeting Middle East, the oil fields of Saudi Arabia, United Arab Emirates, Qatar, Kuwait, Bahrain, Oman. And in the last 2 years, so one of our vessels, Swordfish has already successfully completed a charter of almost 15 months in Aramco. And now it has been redeployed for another 2 years in the same oil field. And now we are actively looking at expanding the fleet to have more vessels which can operate in these oil fields, and that is both expansion for the company in terms of top line and profitability.

Understood. And what competitive advantage do you believe we have compared to regional players in those markets?

So as we all know that when it comes to Indian products versus the global products, so our cost of production/cost of services are way cheaper, whereas we maintain the same quality, same standards, same credibility in terms of delivering performance, in terms of delivering efficiencies. And that is what is to our advantage in these 2 oil fields where we have all the global majors operating. Our experience of almost 25 years in the din charter vessels, that is another added benefit to us. Our core team, which has remained intact for the last 20 years, the experience, the knowledge that they have, that is another benefit to us. So on a consolidated basis, Seamac is well poised to explore this market and offer a very affordable and competitive rates to the global.

Understood, sir. And I just wanted to check, are we planning on something -- exploring some new technologies, maybe ROV in this year?

So one of our vessels, SMA 2 is already having an ROV on board. So we are actually using this ROE for almost like 10 years now. So we are not new to the ROV technology. But then these technical adjustments are far because of the customer demand rather than my wish list. So if my customer really wants me to use an ROV, wants me to use some AI-based technical equipment, I will be more than happy to do that, and we have the enough expertise and experience to operate such technical business.

Just wanted to understand does that help in operational -- improving operational efficiency if we use those technologies even if our...

It is not a question of my operational efficiency. It is more a question of the cost of production that the customer is bearing. So we all know if we use more and more advanced equipment, the cost of production will definitely go up. And for the customer to decide at what cost of production he really wants to engage in crude oil exception. So if he is ready to spend more money, I am ready to provide the service.

Secondly, also, this is dependent upon the kind of fields that we operate in. As we go deeper, definitely, the requirements will be met as and when needed.

The next question is from the line of Deepak from Alpha Fund.

My first question is the insurance claim for Seamac Diamond boosted revenue. So what was the nature of the claim? And how much we have received? And are there any recurring risk to the vessel operations?

So when we brought this vessel Semac Diamond, at that time, there were certain maintenance issues for which we incurred a significant amount. And those breakdowns were covered under the insurance policy, comprehensive insurance policy for the vessel. And subsequently, once the work was carried out and the vessel was sent to the field, we launched our insurance claim. So the expenses were booked in the previous quarter. And after thorough verification as the process is, we have received our insurance claim. So this insurance claim is therefore treated as other income in our quarter. And this is a full and final claim against the expenses incurred. And as such, no further claims are expected from the insurance company for cement Diamond.

Okay, sir. Sir, and secondly, the next question is regarding the exit from the Trent construction. The JV was return after 80% completion due to unavoidable circumstances. So what were the -- and does this signal a strategic refocus away from the diversification?

So that tunnel project is already over for us as far as we are concerned. That was another significant experiment undertaken by the company to venture into the field of EPC construction in infrastructure projects. And because that project was -- we were doing it for the L&T, which is one of the major Indian company into the infrastructure. So we undertook this project. But as far as we now understand it that we are -- we should focus primarily on our MSC operation, the subsea operations. And as such, we have closed the project and we have accounted it, whatever the losses were, they have all been provided in the books, and we have no intention to enter into the infrastructure as of now in the within 5 years for us.

Okay, sir. And sir, lastly, the JV in the GIFT City is nascent. So what revenue contribution is expected from the new cargo vessel? And how will the 50% equity partnership with Air Shipping affect margins?

So it is see, this particular project was brought by Air Shipping. It was again a very good opportunity to work in India. GIFT City is an initiative taken by the government of India to enable Indian companies to save the taxes. So we have our Dubai subsidiary, which is already operating bulk carriers outside India. We got an opportunity to work within India and we're saving our taxes. And that is why we have formed this JV with AR. So AR is not only a financial partner, it is also a partner who is bringing in work through its experience, through its contracts in the bulk carrier, where our presence is not very significant. We are primarily DSP operators. This is a business model in which we are getting risk-free returns in terms that we are into a bareboat charter where the risk of operations is not on us. So they will not contribute very significant returns, but a vessel operating company instead of investing in treasury at 7% or 8%, if it gets a better return of 15% to 16% in the bulk carrier business and also start making a NIM, I think that's a better financial...

The next question is from the line of Raj Patel from RK Securities.

So a few questions from my side. I just wanted to know that can you throw some light on the current pipeline of the conformed contract for the rest of the year -- for the rest of the financial year? And what is the percentage of the revenue that we have already secured versus the still progressing?

As I mentioned earlier, Seamec Paladin is on a long-term contract, where about 3 years are still ahead of us. In terms of Swordfish, it has a 2-year contract, which has started recently. Nusentara and Anant are on long-term charter. Once they are acquired and put to use, they will have about 3 to 4 years of remaining contract period. Seamac2 contract is about, I would say, till March '26. And Seamac 3 and Seamac princess are currently deployed on spot market requirements. Our barge Glory works in 7 months, which is non-monsoon period every year. I hope I have clarified about the contract...

Okay. Understood. And how does our order book look like as if we compare it towards the last year? And what is the weighted average duration of the current backlog?

See, our order book is strong. As I just mentioned, we are acquiring 2 more vessels. So definitely, the order book has expanded with those contracts of 3 to 4 years life remaining contract life, okay? And as Rajivji mentioned, all the vessels are currently in deployable state and are deployed. So technically, we are fully occupied...

Okay. And my next question was that you mentioned that SEAMEC 3 lease rate was $2,800 per day under the BIMCO charter party. So how does this not been compared to the prevailing market rate? And are there any rate of improvement in near future for the upcoming contracts?

No, no, I am sorry, but Seamac 3 rates in the entire last season was on an average of $50,000 per day. This $2,200 from wherever you're getting, I am very sorry if it didn't mention, it's a totally typo error on part of any presentation that the company has made. And in the coming season also, we are expecting similar rates. So we are not at $2,800. $2,000 per day is not even -- it's nothing -- it's the maintenance cost of the vessel actually. sorry for such graphical errors on our part.

Okay. And have we been able to secure the escalation clause linked to the inflation or fuel price? And what would be the percentage of our current fleet operates under the fixed versus the spot rate?

So as of now, there's only 1 vessel which we have kept aside for spot rates. Almost 3, 4 vessels are on 4-year contract. vessel is on 2-year contract. And during the contract duration, we are not allowed to increase the charter hire that is fixed. And we take that into account when we are calculating our prices for the entire 5-year period. So when we work out an average price spread over 5 years, where our margins will be higher. But by the time the fifth year comes because of inflation, the cost increases, but the charter remains the same. So all those adjustments, price adjustments, we are all well taken care of when we are bidding for a particular tender. In terms of operational efficiency, in quarter 1, our efficiency was almost 90%. In quarter 3 and 4 for the coming season, we have already secured contracts for almost all the vessels. So that is why we are very confident on FY '25, '26 in terms of fleet deployment.

The next question is from the line of Darshan Shah, an individual investor.

Congratulations on a good set of numbers. I had a couple of questions. Based on what you told in the previous participant that you have one vessel kept aside for the spot market and the rest of are tied in the long-term contract. Now that Seamec Princess has been demobilized for the upcoming monsoon season, how does this affect utilization rate in Q2 as well as margins? Because I think in the presentation, you also guided to the fact that better margins was due to higher utilization of Seamac Princess. So just can you throw some color on that front, please?

So the Indian market -- the monsoon season starts somewhere in the last week of May and it ends in September. And this is something which is constant. So if you see all through our last 10-year results, this quarter 2 is the monsoon season where the fleet deployment is very minimal. And this particular period is utilized by the company for the maintenance of the vessels. And this is not confined to me, it is confined to the entire offshore fleet market in India. So quarter 3, quarter 4 and quarter 1, that is where almost 95%, 90% of the revenue happens. That is where the focus should be in ensuring complete fleet deployment. So Seamac 3 has completed ERP in June 2025. And now we have been awarded contract work for PRP and this vessel is expected to go back to the field in the month of October to start work on PRP. In fact, just to add, we were also part of PRP and PRP 5. So this vessel has been continuously operating in this PRP series of work for L&T and next season and then '26 and '27 is also booked for PRP...

Got it, sir. So as investors, I think your guidance to us would be to not look at it from a quarterly perspective, but more from a year-on-year perspective because then Q2 would be monsoon affected last year also. So then that gives us better...

If you see quarter 2 numbers in any of the past 5 years, so the revenue is very minimal. The cost is almost there. And that is a quarter where the company's maximum focus is to remain breakeven, not to incur any losses in the quarter.

Got it, sir. And sir, any specifics on cost control measures that you're going to take to -- for the whole year FY '26 to kind of maintain margins above FY '25 for the full year. So any changes, any cost control measures, any currency hedges that you're going to undertake?

See, running a fleet of old vessels running a fleet of a young vessel is always cost effective. The maintenance cost on old vessels is quite high. And that is what the company in the last 3 years has undertaken. So it is coming out of running the fleet of old vessels by deploying new vessels. And you can very well see that our maintenance cost is continuously on a downward trend. Then in the terms of crew deployment, whereas our earlier fleet was confined to, say, 6 or 7 vessels, now it has gone above 10 vessels. So we have more command on the crew wages. And in fact, the company is actively working on creating a pool of the crew that is required for the entire fleet so that going forward, we are not hit by abnormal increase in the crew wages.

Also, as Rajiv mentioned earlier, reducing the dry dock period, doing the dry dock effectively add to the overall profitability and efficiency of the business.

Got it, sir. Sir, next would be, is it the company's policy to give some revenue guidance and margin guidance for the next couple of years or at least for FY '26 so that we get a sense on how -- what is the direction that you see internally where the company would be moving?

See, there are various research reports which you can refer. However, you know the business is quite volatile. While you have seen this quarter number, and we are very confident on growth in terms of revenue and profitability, I would restrain myself of giving any guidance. You can refer to research reports, they'll give you enough color on the subject.

And finally, last, I think there's a couple of good macro things that have happened for the oil and gas exploration in general. I think there was an article in May on ONGC finding new oil and gas reserves and then the Petroleum Minister's commentary on basically opening up the no-go zones and about 2.5 lakh of square kilometer area that they are going to kind of explore under OALP. So all of that, are there any more potential revenue possibilities on that front? How is the -- any other news or companies evaluating in terms of some more business that can be generated from all of these government initiatives?

So these are definitely very positive news for the company. But as a business, we are a company which is into the maintenance of the oil fields. So once the crude oil is actually started extracting from the bed of the seed or the onshore bed and the oilfield has been set up, it is then that SEAMEC comes into operation. As far as exploring new oil opportunity or installing the oil field and the oil platform is concerned. So if all these things are initiated by the government of India, we are quite hopeful that all these will transform into oilfield over the next 5 to 7 years, and that is where then SEAMECC will come into operations and provide the services. And keeping that in mind and the other thing is the Middle East market that we are quite focused on, we have actively plans for expanding our... So it's quite encouraging to know that you have a good visibility ahead of you.

The next question is from the line of Deepak from Alpha Fund.

Just a follow-up question on the question asked by my colleague. Just want to understand, is this an industrial practice to have that 3% piece of MMG because this is something which I just want to understand what value addition MMG is building on for our company right now. So don't you think this will be much more investor friendly if you can remove those piece?

So as far as industry practice is concerned, so as I said earlier during this call also, -- so this is related party transaction. We have engaged Grant Thornton to work out a comprehensive related party transaction review. They have completed their study. They are expected to submit their report in the coming weeks, which will be shared with the investors. This is a standard industry practice. The fees that we are paying to M&G is well within the market benchmark. In fact, it is lower than the mean of the market. The value addition of MMG is tremendous because they bring with them lot of expertise, knowledge, contact and their advisory in deciding the value of the contract. So while we are working on the charter hire aspect of that tender, that is where they bring their value addition. When we are deciding on our treasury operations, that is where they bring their value addition. When we are deciding on the dry dock cost, selection of dry docks, that is where they bring their value additions because they have been actively engaged with the company for the last 15 years or so. So the value addition is definitely there. fees benchmark in the eyes of the management is well below the market -- the industry benchmark. And I am very hopeful that Grand Thornton in its report will definitely what we are trying to get there.

Sir, just a question on the London part. If you can explain in detail how the -- what is the thought process there right now on that investment we have done?

So again, as I said in my call earlier, so the U.K. investment, there are 2 aspects to it. One is to set up a global office because we really want to explore the North Sea markets, that is the North Europe compromising of the North Sea and the allied areas. And the other part is that part of this investment will come back to India once this particular development project is completed. So our original time lines for completion of the project was March '25. But for approvals and reasons beyond our control and especially what is the geopolitical situation, so this has delayed by a period of almost 12 to 15 months. But the impact on cost is very minimal here. We are not seeing a very significant increase in the project cost. So overall strategy remains the same that part of the proceeds will come back to India, and we will have a global office to explore the North Sea market.

Thank you very much, sir. And I hope we are going to see these solutions as soon as possible.

Thank you very much Ladies and gentlemen, due to interest of time, that was the last question for today. I now hand the conference over to management for closing comments.

We thank all our investors who have supported us so far. We are confident that we shall demonstrate sustainable growth and value for our stakeholders. Thank you, and see you in the next quarter.

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