Shaily Engineering Plastics Limited (501423) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to Shaily Engineering Plastics Limited Q4 FY '21 Earnings Conference Call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Amit Sanghvi, Managing Director, Shaily Engineering Plastics Limited. Thank you, and over to you, sir.

Thank you very much. Good morning, and a warm welcome to all the participants to the post results investors and analyst meet of Shaily Engineering plastics. I hope all of you are safe and healthy. I have with me Mr. Sanjay Shah, our Chief Strategist and SGA, our Investor Relations advisers. I hope you've had a look at our new comprehensive Investor Presentation that is uploaded on our website and the stock exchange. We've seen major peaks and valleys during the year in FY '21 starting with -- starting of the year with a standstill for the entire economy and has also impacted us. After much delays in constructions as well as equipment installation, we have finally successfully commercialized operations at our carbon steel furniture plant in December 2020. This was one of the most technologically advanced projects which we had undertaken outside our core area of expertise. And unfortunately, due to the pandemic, we had 0 to minimum support from suppliers of various equipments to set up the facility. Despite of such challenges, today, the operations are running fairly smoothly. This shows our uniqueness and ability to grow in the most difficult of times. I'd like to announce the resignation of Mr. Anil Kalra in the position of Chief Executive Officer due to health reasons. Unfortunately, Mr. Kalra contracted COVID in the month of March. And since his return from the hospital has continued to have some health issues. Due to which, he is unable to resume his responsibilities in the company. I would like to sincerely thank Mr. Kalra for his contribution during his short tenure, which has helped Shaily in streamlining its operations and achieving new levels of operating efficiencies. On behalf of the entire Shaily family, we wish him speedy recovery. We are actively looking for a new CEO and [Audio Gap] vacant position over a period of time. Now some updates on the expansion of capacity announced in the previous calls. We have started construction of our new plastic plants at our new campus at Halol. There has been no delay due to lockdown, and we expect the plant to be fully operational in the first half of FY '22. This will help us service new orders, especially in the home furnishings orders. Let me now give some highlights on the business updates for the quarter for other segments. In toys, we started production of 2 products for one of the world's top 3 toy brands post-approval in Q4 FY '21. This production is currently ramping up and will further ramp up in FY '22. In health care, I had announced during previous year annual earnings call regarding development plans for an Autoinjector. We are now several steps closer with likely industrialization by Q4 of FY '22. And in addition, we have 2 new pens under development. This also includes supplies to global companies. We have also received order for supply of our child resistant closures during the quarter. Overall, throughout the year, we have built a very robust order book, which shall help us grow in the years to come. We anticipate fairly substantial growth in the current year. Looking at our order book, we are fairly confident of achieving a much higher rate of growth in the current year. With each passing year, we are expanding our relationship with our largest customers in the Home Furnishings business. And alongside developing different verticals in the Toys business by adding global giants of the toy world. It's been a mere 1.5 years since we entered into the toys business with Spin Master, and we have now made our position even stronger with large orders from one of the world's top 3 toy brands and are on route to becoming one of the preferred Indian suppliers in the toy industry. Health care segment is equally promising with tremendous opportunities laying ahead. At the end of FY '22, we should have 3 additional platforms commercialized for both Autoinjectors as well as pen injectors. We are also expecting revenue to scale up from registration-backed supply from our existing platforms and see significant ramp-up over the next 2 to 3 years. The commercialization of carbon steel operations will help us in increasing the revenue trajectory as well as improve EBITDA margins as utilization levels pick up in the coming quarters. Once we complete our ongoing expansion, our growth trajectory will touch new boundaries both in terms of top line as well as bottom line. That is all from my side. I shall now hand over the call to Mr. Sanjay Shah, who will give you the operating and financial highlights of quarter 4 of FY '21. Thank you.

Thank you, Amit. Good morning, everyone. I shall share with you the highlights of our operational and financial performance of Q4 and full year FY '21. Following which, we will be happy to respond to your queries. During the quarter, we purchased 4,356 tons of polymer as against 3,267 tons in Q4 for FY '20, which marked an increase of 33% on a year-on-year basis. On a full year basis, we processed 14,602 tons of polymer as compared to 13,293 tons in fiscal year '20. Machine utilization rate was 56% in Q4 FY '21 as compared to 64.5% in Q4 FY '20. This was basically due to increase in the number of machines which we added for the toys business in our Halol and Rania facilities. Exports during the quarter stood at 77% of total revenue as compared to 68% in the same period last year. As for FY '20, exports stood at 73% as compared to 69% in FY '20. Our revenue stood at INR 109.8 crores during Q4 FY '21 as compared to INR 79.6 crores for the same period last year, showing a growth of 38%. The double-digit growth is achieved on account of supply on Carbon Steel furniture and increased business on all other segments of business. On a full year basis, the company reported a INR 360.6 crores of revenue as compared to INR 336 crores in FY '20. This is in the back of the fourth quarter being a wash out during the current year. EBITDA for Q4 FY '21 of INR 22 crores as compared to INR 15 crores in Q4 FY '20. EBITDA margin stood at 20% in Q4 FY '21, 130 basis point improvement over previous year same quarter. For full year FY '21, one, EBITDA margin were at INR 62 crores as compared to INR 59 crores in FY '20. EBITDA margin in FY '21 were impacted in the second half due to withdrawal of MEIS benefits by the government post December. So that seems taken into account and also post commercialization of the Carbon Steel furniture segment. Net profit stood at INR 9.7 crores for Q4 FY '21, a growth of 39% year-on-year. For the full year FY '21 the company reported a net profit of INR 22 crores as compared to INR 23.6 crores in FY '20. Cash PAT for Q4 '21 was at INR 15.3 crores as compared to INR 11.6 crores for the same period last year. For FY '21, cash PAT was at INR 41.5 crores same as FY '20. For the quarter, we incurred a CapEx of INR 32.8 crores [indiscernible] to a full CapEx of INR 17.7 crores for the full year for FY '21. We expect FY '22 CapEx to be in the region of about INR 80 crores to INR 90 crores. With this, I would like to summarize on our operational highlights front. And let me know that we are working actively towards diversifying our business model and would be better trajectory in the quarters to come [ as we know to start commercialize ]. This is all from our side. Now we can open the floor for Q&A. Thank you.

[Operator Instructions] The first question is from the line of Pritesh Chheda from Lucky Investment.

Yes. Congratulations on improved traction and hope everything is safe and sound. My question is with respect to the new business confirmation, which is toys, 6 projects, furnishings, incremental INR 180 crore order wins and furniture, INR 100 crore, when do we see in terms of their peak revenue potential on a quarterly basis getting achieved on these 3 business segments? And a associated question in health care, I was a bit confused in your presentation, you're mentioning 2 to 3x revenue growth in 3 to 5 years. Just wanted to check if this 2 to 3x of revenue in next 3 to 5 years or growth because these 2 means completely different? And these health care plans, which are 5 platforms and 12 projects, what should be the peak revenue potential? And when should you deliver that peak revenue potential on a quarterly basis?

Pritesh, last question would be very difficult to answer, given that majority of our pens have been commercialized only in the last 12 to 18 months. Let me start with your first one. I think peak revenue potential for the new investments that we have made in the new plastic facility as well as carbon steel and toys is likely to happen by Q4. Somewhere between Q3 and Q4 of FY '22, which means that at that point, we will have a run rate that represents the peak potential we have for the current capacity. What was your second question?

Yes, so...

The health care.

On the health care in the presentation. Yes, we are anticipating 2 to 3x growth. So we're roughly looking at growing the business at somewhere between 35% and 45% year-on-year basis for the health care business.

Okay. Just on the first answer that you mentioned, this which includes all, right? This includes toys, 6 projects, furnishings, incremental INR 180 crores business and furnitures, all 3 you should be hitting the peak revenue potential on quarterly basis by the end of this year?

Yes, yes. I think our run rate by Q3, Q4 will be more or less at peak potential.

Okay. My second question is on the current asset, which we have in the ground now, what kind of peak revenue is possible on this current asset? And did I read it, hear it properly that you mentioned the CapEx for FY '22 at INR 80 crores to INR 90 crores or it was INR 18 crores to INR 19 crores. It was slightly unaudible. So I'm just trying to correlate the 2 things as well.

It's INR 80 crores to INR 90 crores, which also includes the new plastic facility which we are setting up and expansion of the pharma facility.

And what should be the peak revenue potential of the current asset base?

With all the new investments put together...

Pritesh, as Amit explained, with all the new investments which we are doing in, either IKEA or the [indiscernible] polishing facilities we are basically getting commercialized by Q2, and we will hit peak revenue somewhere between Q3 and Q4. So as Amit mentioned, when you look at the [ result ] between Q3 and Q4, that's the peak revenue which we will achieve.

That would be excluding the INR 80 crores, INR 90 crores incremental asset, right?

That will include the new plastic facility, but it will exclude the pharma facility. So pharma, we will probably not hit peak revenue this year. We will hit peak revenue next year.

No, no. Not next year either. Pharma will be a slower ramp-up in terms of the capacity that we put in. Of course, revenue will keep coming in, but peak revenue will be much later.

So can I correlate this way that your asset utilization is 58%. That is obviously excluding furniture. So that is -- and you are at about INR 360 crores of revenue. Can I do the math that way in terms of the current asset on the ground can generate, whatever, INR 360 crores plus the utilization plus the furniture revenue?

So if you were to look at -- from its current asset base and then look at peak revenue, you should probably look at somewhere between [ 2 to 2.5 ], I would say, an average of [ 2.25 ] is peak revenue from the current assets.

Okay. This includes furniture or excluding furniture?

This includes everything.

[Operator Instructions] The next question is from the line of Ritesh Shah from Investec.

Yes. A couple of questions. First is, sir, if you can provide some color on the working capital days, specifically, there is a bump in few of the variables. If you can please detail that, that would be helpful.

So Ritesh, working capital for the current quarter has gone up. Just on 2 accounts. One is blockage of funds on GST and MEI is 1 account. And second is overall inventory levels have gone up because we are executing multiple projects on the toy segment where inventory has come in quarter 4, which we will start looking at commercial -- we have now commercialized those projects in Q1. So we expect as we move forward, we should basically be able to improve the working capital cycle between Q1 to Q3, hopefully, also realize the GST and MEI as blockages as we move forward.

Great. Would it be possible to quantify how much is the number of GST plus MEIS? And what is the normal inventory and working capital days one should look at going forward?

I think if you were to look at normalized inventory and working capital days or nominal net working capital, you should probably look at about somewhere between 77, 85 days. So we are today at a higher number, and we are working towards bringing it down.

Sure. And the quantum for GST and MEIS, if I just have to adjust it?

I will need check that number. I'll get back to you on that.

Sure, sure. My second question was on MEIS and RoDTEP, is there any progress over here? And if one has to look at on a full year basis, was there some adverse impact because the new scheme has not been notified. So how should one look at or if I'm hard to exit the numbers on gross margin basis, how should one understand that?

So just to answer your first question, the total blockage in account of MEIS and GST is about INR 17 crores end of March. The new scheme has been notified but the new scheme also excludes POUs and there is no clarity in terms of rates and what will happen. So currently, we are not accruing any benefit on account of the new scheme. So it will be very, very difficult for me to comment what do we -- and how will the new scheme pan out and what the benefits which will be available to us.

Sir -- Sanjay bhai just maybe if you can quantify it how much was the benefit? I think it would be there for half of the year, right? I think if I'm not mistaken, the scheme expired in September, October, something after that there was INR 2 crore per month, there was some cap without levied. If you could just explain that, that would be useful. And has there been any proposals from you as a company or from industry specifically for RoDTEP?

So total benefit, which we availed last year was about in the region -- somewhere in the region of about INR 5 crores a lot.

Sure. That helps. And last question is on business outlook. This is specifically for Amit, you did indicate, right, the toys outlook, it looks promising and you also did elaborate upon the platforms to be ready for both Autoinjectors as well as pen injectors and it's also there in the presentation, can you put some more color over here on the size of the market opportunity that we are looking at? And basically, when you say that the business is promising, at what stage we are when we are interacting with this overseas customers?

The toy business, the opportunity will be as large as our appetite. So essentially, I think we could scale up the Toys business to where we are on our Home Furnishings business over the next probably 4 to 5 years.

Sure. And specifically on the Autoinjector and pen injectors?

The opportunity size is very large, but we look at it from the perspective of molecules that we are supplying these pens into. If you take insulin away, then basically all the pen injectors that we supply have a combined revenue today of somewhere around $9.5 billion at an average. At an average price of $3, you'll be looking at a target market of 30 million pens in total. Out of which, of course, we don't expect 30 million. But the generics we are working with, let's say, are able to take on 30% of the market share that we'd be expecting somewhere between 10 million and 15 million pens outside of insulin. Insulin is -- the opportunity is massive, very hard to quantify, but could be as low as 10 million to as high as 50 million.

Sure. This is very useful. Is it possible if you can give color on the time line on the scale up here because we do appreciate the technological advances basically what the company has done, the product offering the company has. But eventually, it boils down to the execution. So you did indicate in the prior question how do you see the revenue ramp up. If you could provide some more color on how actually one -- how you are visualizing the stuff over next 2 to 3 years? Any milestones that we can look at, monitor from outside?

We have existing orders for insulin pen supply in the current year. We have orders for all the other pens liraglutide, teriparatide. Again, small batches, small [indiscernible] batches, they're still somewhere between 100,000 pens to 0.5 million pens. In the next financial year, we see this ramping up on 2 molecules, particularly to about 3 million pens. And then '24 is when we will have -- or our customers will have kind of a global market share on these molecules where we see substantial ramp-up. So '24 onwards, we're looking at scaling up substantially.

Next question is from the line of Kaushal Shah from Dhanki Securities.

Thank you very much, sir. My questions have been answered. Thank you.

Thanks, Kaushal.

The next question is from the line of [ Aarush Agarawal from Vista Data Securities ].

I have a couple of questions. The first one is that, how much sustainable is our margin profile? And from when we will see the steel business impact on our margins?

Sorry. What was the second question?

From when we will see the steel business impact on our margins?

So I have been saying on the margins is margins are sustainable and as we move forward, we expect margins to grow in the coming years. So that probably answers your first part of the question. We are seeing a gradual ramp-up on our steel furniture business, where we expect full ramp-up to happen probably by Q3. And that's when you would basically -- suppose that you should be able to see improvement in margins there.

And second one from FY '20 to FY '21, our exports have increased by 6%. So do we have a aggressive plan of increasing exports? Or is it a temporary phenomenon?

Most of our business is export, and exports will continue to grow for us. Even if you were to look at toys, toys is -- all of it is exports. So it's going to grow for us.

The next question is from the line of [ Kunal Jain from District Capital ].

Hello? Can you hear me?

Yes. Please go ahead.

Sir, my first question is for carbon steel, are we planning to target other clients apart from Home Furnishing majors?

Not at the moment.

Not at the moment. Okay. Sir, my next question is I got mostly on the lockdown. So for our U.K. subsidiary set up, is there any delay due to lockdown or travel restriction? Are we expecting any loss of business due to the same?

There's no loss of business. But yes, we are -- the setup is delayed, of course. We were looking at going on stream in June. We are now looking at going on to stream in September.

So September, okay. Okay. And sir, for this past month, like April and May, did we face any logistic issues because of this lockdown or any disruptions?

There is issues that every day, we are able to manage them at the moment. So...

So nothing major on -- major affecting numbers or anything like that?

Not yet. No.

[Operator Instructions] The next question is from the line of [ Atul Kothari from Progwell Securities ].

Sir, I have just a few couple of questions. Sir, my query basically is in reference with the toy segment. So currently, we are having only 2 companies as customers or do we cater to more clients as far as our toy segment is concerned?

We are currently working with 2 companies. And as we move forward, we will look at adding customers. But with these 2 companies, more so we see a lot of growth potential which is there.

Okay. And sir, while we are looking for expansion, will you also be targeting Indian toy brands?

No.

Okay. Okay. And secondly, sir, I mean was there any loss of business in Q1 FY '22 (sic) [ FY '21 ] due to the lockdown on account of the second wave of COVID-19?

Minor. Yes. Yes, there has been some. So against just the monthly plan that we made, we have had some issues in April and March on primarily because of availability of people.

Okay. So the overall impact will be marginal or it will be significant?

No, it will not be significant.

It will be marginal.

The next question is from the line of V. P. Rajesh from Banyan Capital.

Yes. Just trying to understand your customer concentration. So in toys, as you said, you are only supplying to 2 customers. And I believe for the furniture it's just 1 customer. What is the situation sir in the other businesses if you can just elaborate on that?

Essentially, if I look at -- we probably have a -- apart from pharma, we probably have a list of 20 to 24 customers. And the top 6 or 7 would contribute to 85% of our revenue.

Okay. Okay. And the large customer that you talked as I heard on the [indiscernible]. Are those contracts long term in nature? How is the -- what is the structure of those ranges?

We won't be able to disclose contracts, but what I can tell you, we work with -- means once we acquire a customer, I don't think there's been a single instance in the last 32 years of company's existence where we have blocked the customer.

Okay. All right. But those are not...

[indiscernible] better conditions.

Right. No, I was just trying to understand whether those contracts are long term in nature or they can be terminated on a very short notice and they can contract with some other parties. That's -- I'm trying to get a sense of that.

Typically, they're long term in nature. The type of business which we are in you could not be looking at short term.

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

Sir, my question is on the management side. As Anil Kalra -- Mr. Anil Kalra has left the company. So how are we looking for the next CEO? So would be -- he joining from the promoter family? What would be he on the professional side like he was from Anil -- Mr. Anil Kalra was?

It's open. There's no boundaries as such. There is a candidate profile we're looking for. And then it -- I think we're quite open in terms of what background the CEO comes from. But yes, there will be a heavy emphasis on operations, so.

Yes. Got that. Another sir, my question is on the total fixed asset side. So we have approximately INR 220 crores of fixed assets on our balance sheet. So can you give me a rough estimate on how the segment-wise would be it health care and plastic side and the pharma side?

We would not be able to give you that breakup.

Okay. So as for -- because I was asking because for the past 4, 5 years, we have been not been able to work on the health care side. We have been lagging on that. So any color can you give me on that because...

[ Chirag], if you were to look at whatever we've been talking on the last 4 calls, we have said that health care has been probably one of our fastest-growing segments in the last 3 years, and we expect similar growth as we move forward in the next 3 to 5 years.

Okay. So any color on that? Any as estimated, any estimates how far we can go any revenue or any margins?

We will not be able to put a number. What we have indicated also as Amit mentioned earlier in the question which one of the participants asked, we are looking at a 2 to 3x growth over the next 3 to 5 years on the health care part of the business also.

The next question is from the line of Manish Gupta from Solidarity.

Two questions, Sanjay bhai. First one was that your gross block is about INR 220 crores right now, and there is about INR 23 crores of capital work in process. And to the question that Pritesh had raised earlier, you said that peak revenue on this can be about 2 to 2.5x which we should see in Q3 or Q4 of this year. Is this understanding correct?

Yes. So it will be really between Q3 and Q4. Manish, what happens is we have different projects with different customers, which will get commercialized at different periods of time. I mean there will be something which is getting commercialized in Q1, similarly something which is getting commercialized in Q2. And as we move forward, something which is getting commercial in Q3. So ramp up of this will again, have different time frame. So somewhere between Q3 and Q4 is when you would probably see peak revenue coming from the investments which we have made.

Got it. So if I just do some very simple math on this, I want to make sure I have understood you right. So there's INR 220 crores of gross block and INR 23 crores of WIP. That's about INR 243 crores, let's just round it off to about INR 240 crores, right?

Right. Right.

And you are saying 2 to 2.5x asset turn. So if I take 2.25, the average of that, so we will come up to approximately if I just do the math here, it's INR 240 crore 2.25. So that's about INR 540 crores, right, on an annualized basis, right? So would I be right in my calculation that, let's say, Q4 of this year, you're saying Q3 to Q4, so let's just say, Q4 of this year, your annualized run rate would be about INR 540 crores of revenue.

Manish, you also need to take into account that we are looking at investing INR 80 crores in the current year. Out of which, a large part of the investment will be done by Q1. I would say 50% of the investment will be done by Q1, which is what also we are looking at ramping up between Q2 and Q3, which is a new plastics factory.

Got it. Got it. So it would -- so the way I had to look at it is on the existing investments, the run rate would be, say, INR 540 crores or something, plus the additional revenue on any investments you do in Q1 and Q2 of this year?

Yes. Yes. Yes.

Got it. Got it. Very clear. Second question is, based on what you know right now, what is your CapEx plan for the next few years? Like you said INR 80 crores to INR 90 crores this year. Next few years, any visibility on what your CapEx plans are?

Manish, a large part of our CapEx plan would get decided based on business confirmations, which we have from customers. With some customers, we have some sort of visibility in terms of what sort of growth are we looking at. And based on that, we would basically mean at some point of time, we need to set up 1 new factory for manufacturing toys as we move forward. So incrementally, I would say for every INR 100 of revenue, you would probably look at somewhere between 2 to 2.5 of investment, which would be required in CapEx, so.

Yes. No, I get that Sanjay bhai. The question was that...

[indiscernible] express and CapEx would look at revenue of somewhere between 2 to 2.5 is what we get what we would look at. Yes.

No, no, I get that. My question is that do you have any visibility on aggregate CapEx you will do FY '23, FY '24 so on and so forth.

FY '23 will have a similar number as the current year. About INR 50 crores to INR 70 crores is what we will do in CapEx.

Okay. Excellent. Third question is, Amit, our historical challenge in the last few years has essentially been not orders, but ability to ship orders out, right? So can you provide some color on what we have done over the last 12 to 24 months to strengthen this aspect of our business?

We have spent a lot of money on maintenance of existing facilities, tools and machines. I think if you also look at our [Audio Gap] you will see a higher amount than previous quarters and previous years for repairs and maintenance. One thing we've done is we've tried to bring in our assets to a level where they can be much more efficient. From a manpower perspective, we haven't faced -- except lack of manpower on account of COVID, we have not faced any other challenges probably since the lockdown ended, doing quite well in that area. We have hired a lot of ITI grads. New facility, the hiring has already started. We have filled all key positions for our new facility and even some factory workers. But none -- we are not classifying anyone as a factory worker in the new facility. They will all be skilled, and they will all be production team members. So we're trying to bring in a sense of belonging, at least in the new factory, where there's a greater level of motivation and being connected with the company in the new facility that will go on stream in July.

Excellent. And last 2 questions. The first one is that in the nature of conversations that you're having now with the Swedish major or with the toy customers, are you seeing more complicated engineering or more complex engineering kind of orders coming to you? So is the skill -- level of skill that is required in these orders? Is it increasing? Or is it more of the same?

No, we see both. We see increased complexity projects also coming our way, and we see also simple products where there is a need for a very high output.

Okay. Last question. That a few years ago, we had defined a vision for ourselves. We are obviously behind that, but one can clearly see a lot of progress otherwise. Have you defined any new vision for yourself, say, 5 years out? What margin profile or what revenue profile you think the company should be at?

I have a vision, but I will not be sharing it at this point. I think we'll wait for this year to end. And then maybe surprise everybody on the vision.

Okay. So last call...

It's less to do with revenue and numbers and just overall vision in terms of where the company should be headed.

Okay. So Amit, last call, I had requested this that if we can have a 5-year kind of road map. And you said you'd take a look at that. So I think at some point in time, it will be good if one can share in management's longer-term vision of where the company is heading. I mean we are long-term shareholders, right? So while the short term is important. We are looking at the long-term. So I think it will be good if you can put this on the calendar at some point in time.

Sure.

The next question is from the line of [ Nikhil Jain from Galaxy International ].

Yes. So just a couple of questions, actually. So first was that do we anticipate that our debt levels will be increasing year-on-year, given that the CapEx that we are planning to do is something like INR 80 crores to INR 90 crores every year, this year and next year. So right now, we are -- they are reasonably -- so it's not uncomfortable, but they are basically high, right? So is there any plan that we have on let's say on what will be the guidance on that kind of a thing? So what would be the debt level going into FY '22? And that was question one.

[ Nikhil], if I were to look at from a debt level perspective, probably you're seeing a peak level debt, debt peaking out at its peak in the current quarter or so. Post that, you will see debt levels going down, absolute debt levels going down. And as the ramp-up in revenue happens in March, you will basically see overall debt equity and debt-to-EBITDA going down. If we were ever to look at March '21, while debt-to-EBITDA might a little higher, there is 2 things which need to be kept in mind. There were 2 major projects which we executed last year and 1 project, which is getting commercialized this year for which debt was raised last year. We had COVID due to which they were delays on the steel furniture plant. All of the ramp-up will happen in this year. So you will basically see overall margins going down. But in spite of that, our DSCR margins or DSCR ratio has been quite healthy even for March '21 and as we move forward. So DSCR has been very, very comfortable. And these are ratios which we constantly monitor on a month-and-month quarter-on-quarter basis.

Right, sir. Okay. Okay. Good to know that. So that was point -- question number one. Question number two, is that in the last quarter call, you overall said that in FY '22, we are looking at, let's say, a top line of around INR 550-odd crores. Right? So is that the current visibility for this year also right now given that we have a second wave of COVID and other things?

Yes. We would say we are still on the same number. We would have the same visibility, yes.

[Operator Instructions] As there are no further questions, I would now like to hand the conference over to the management for closing comments.

Thank you, everyone, for joining the call. We hope we were be able to answer your questions. For any further information, I request you to get it touch with SGA, our Investor Relations advisers. Thank you once again, and season greetings to all and stay safe.

Thank you. On behalf of Shaily Engineering Plastics Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.

Thank you.