Solar Industries India Limited (SOLARINDS) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Solar Industries India Q2 FY '22 Results Conference Call hosted by Centrum Broking Limited. [Operator Instructions] I'll now hand the conference over to Mr. Chirag Muchhala from Centrum Broking Limited. Thank you, and over to you, sir.

Thank you, Vikam. Centrum Broking welcomes you all to the Q2 FY '22 Results Conference Call of Solar Industries India Limited. The management is represented by Mr. Manish Nuwal, Managing Director and Chief Executive Officer; Mr. Suresh Menon, Executive Director; Mr. Moneesh Agrawal, joint CFO; and Ms. Shalinee Mandhana, joint CFO. I will now hand over this call to the management for their opening remarks, post which we can take questions from participants. Over to you, sir.

Very good morning, and welcome to Solar Second Quarter and Half Yearly Investor Conference. My name is Shalinee, and I would like to welcome all of you on behalf of Solar Industries India Limited. To begin with, I would like to remind you that during this call, we might make projections or other forward-looking statements regarding future events and about the future financial performance. Please remember that such statements are only predictions. Actual events or results may differ materially. And our website will be updated with all the relevant information [indiscernible]. Now I request Solar's CEO, NMD, Mr. Manish Nuwal, for his opening remarks. Over to you, sir.

Thank you, Shalinee. A very good morning to all the valued investors. We are pleased to present highest-ever second quarter and half yearly numbers with good growth across geographies and sectors. We have been able to assume a decent EBITDA margin despite of challenges, mainly arising out of steep rise in commodities and foreign exchange fluctuation in the current quarter. However, the company has started passing on the increase in costs to the end customer, and we are expecting the impact of commodity prices should subside in coming quarters. The government of India has been laying great emphasis on infrastructure development, housing and mining. The GatiShakti master plan announced by government of India will definitely do a tremendous boost to our industry. Positive momentum in the defense, exports and overseas business has laid a strong foundation for sustainable growth in the future. We are entering into the second half of the year with a strong order book of INR 2,842 crores, which includes new orders from Coal India Limited to the tune of INR 1,471 crores. Despite of risk associated with rising commodity prices and coal prices. The half yearly results have given us confidence to revise our earlier given annual growth guidance from 30% to 40%. Now before I hand over to Shalinee to take you through the financials, I would like to wish you all a very happy Diwali in advance. Thank you very much.

Thank you, sir. The key highlights for the second quarter are: the conceded revenue is up by 34%. That is INR 788 crores versus INR 587 crores. The explosives revenue is up by 48%. That is INR 328 crores versus INR 222 crores. Our explosives volume has increased by 16%. That is 80,337 metric tons versus 69,195 metric tons. The realization of explosives have increased by almost 27%, that is 40,874 versus 32,074. The initiating system revenue has also increased almost 38%, that is INR 84 crores versus INR 61 crores. The nonmetal consumption has increased by almost 53% if we see Y-o-Y from INR 289 crores to INR 442 crores on account of steep price in raw material prices in absolute terms. The big expenses has increased by 27% from INR 117 crores to INR 149 crores, which is mainly on account -- which includes an amount of INR 29 crores on account of foreign exchange fluctuations. These causes an EBITDA increase in absolute terms to INR 143 crores against INR 128 crores, a rise of almost 12%. The PBT increased by 14% from INR 92 crores to INR 104 crores. PAT for the similar quarter has increased by 11% from INR 68 crores to INR 75 crores. This is an update for the quarter. Let me take you through the half yearly performance. The half yearly revenue is up by almost 50% Y-o-Y. That is from INR 1,078 crores to INR 1,613 crores. Domestic explosives quantity increased by almost 31% from 139,481 metric tonnes to 182,124 metric tonnes. Realization of domestic explosives increased by 24%, that is from 33,164 to 41,045 per tonne. Revenue from domestic explosives increased by 62% from INR 463 crores to INR 748 crores. The initiating systems domestic revenue increased by 48% Y-o-Y from INR 122 crores in half year to INR 180 crores in first half '22. The raw material price is up by 63% for the half year Y-o-Y from INR 558 crores to INR 911 crores on account of steep rising raw materials. The employee cost has increased by 27%. The other expenses has gone up by 33% from INR 197 crores to INR 262 crore, which includes a loss of INR 26 crores on account of ForEx fluctuations. EBITDA for the half year is up by 42% from INR 224 crores to INR 300 crores in absolute numbers. Recorded a PBT of INR 244 crores compared to INR 153 crores. We recorded a PAT number of INR 176 crores compared to INR 112 crores. The CapEx till 30th September is INR 137 crores, and the annual guidance plan is INR 315 crores. We have a total order book of INR 2,842 crores, comprising of new orders from Coal India to the tune of INR 1,471 crores and defense order book of INR 576 crores. This is from our end. Now we'd be happy to take any questions, comments or projections that you may have. Back to you.

[Operator Instructions] We have a first question from the line of Sujit Jain from ASK Investment Managers.

Congratulations and complements for the highest-ever turnover like you mentioned. Quick question is on Coal India, a large order that you received, which will kind of get carried over next 2 years. One presumes that a lot of it would be bulk explosive. Does that mean that because of the tax change in the mix, the operating profit margins over the next 2 years compare it to you again?

The order book, that INR 1,471 crores, is mainly bulk. That's the new order that we have received. There is an increase in volume by about 17% from the previous order, and there is a price increase of roughly 26%. So I do not think that this direct fix will make major difference at this time, sir.

Right. And when I look at the gross margin for Q2, they were kind of depressed. And as we've mentioned, the raw material price inflation would be passed on to consumers with a lag. Does that mean that eventually our margins will come back to 20% from Q3, Q4 onwards?

Yes. We have never seen such a steep price in commodity prices in last so many years, which is currently visible every year. The company has started passing on the increase in the cost to the end customers. But passing the full price is not possible on an immediate basis. So there's always a lag of a month or 2 at a quarter depending on the terms and relationships with the customers. So when we talk about margins, we feel that the EBITDA margin should be around 20%, and [indiscernible] 11% on annual basis.

Right. That's great. And you have called out INR 29 crores in other expenses as ForEx fluctuation item. If I add that back, ex of that, our margins could have been higher by 3%, 4% for Q2. Is the understanding correct?

Yes, it should have been up by around 3%-plus.

[Operator Instructions] We have next question from the line of [ Brajesh Joshi ] from HDFC Bank.

Many congratulations, first of all, to Solar Industries India Limited for achieving this beautiful result. I actually have a small question on this. You had mentioned that the prices of raw material has increased and Solar, to a large extent, has been able to pass on the price hike to the end customer. So what is the component of the freight as the freight prices have also increased? The rate has gone up. In some of the places and some of the other companies I'm dealing in, in those companies, I have seen the hike of around 200% in fees. So what is the situation in case of Solar Industries and how Solar is managing all these?

In prices, the price of raw materials, when we talk about, it is all the factors. We take into account all the factors. So when we see there's an increase of around 28% Y-o-Y and around those prices increased by 17% on -- from some previous quarter. So this includes the freight as well. So the same will be passed around to the customer, but with the lag of period.

With the lag of period. So how much does the company expect it will -- a quarter. Will it be a quarter or 2 maximum?

Not a quarter. Yes, it's around 1 to 3 months.

1 to 3 months, that is a quarter.

Yes, that is a quarter, correct.

Okay. So how much will be the effect of this price hike -- sorry, the freight hike?

We have taken all the factors into account. And as I said, we should maintain the EBITDA margins on annual basis around 20%, including all the pricing.

[Operator Instructions] We have next question from the line of Abhishek Poddar from HDFC Mutual Fund.

First is regarding the raw material situation. If you could highlight any challenges that you are facing in sourcing of key raw materials and how is the inventory situation?

Yes. Like we have been sharing over the last many years, we have a good relationship with our vendors due to our commitment and rising terms and our payment terms. So we have a fairly comfortable position to fulfill our obligation with our customers who are on contract or on spot basis. So we have a very good relationship with our customers and vendors as well, and we are in a comfortable position.

Understood. But sir, because of the energy shortage, is there a possibility that you'll be concerned that it could impact the ammonia nitrate supplies and you probably would want to overstock if the event happens like that?

As far as our company is concerned, we have taken all the best efforts to fulfill our contractual obligations and our -- to meet our customer requirements. So we are pretty much comfortable.

Understood this. Sir, regarding the defense side of the business, any sense on the Pinaka order? What is the progress? What is our expectation now? And also, if you could highlight what is the defense order book and what kind of execution you are looking at for this year and next year?

Yes. As we have informed earlier that our company when authorized from -- is one of the authorized production agency for making these Pinaka rockets. And the Defense Acquisition Council had accorded acceptance or necessity for capital acquisition proposal for modernization and operational need of their armed forces poses, and it includes Pinaka rocket ammunition. But value and our shares will be known only after RFP is finalized. So we are waiting for RFP to come. Apart from this, like we have shared that our order book now stands at INR 576 crores because of the complete order which we have received a couple of months back, which was multimode hand grenades. So we are now in a comfortable position, and we can -- definitely, we will see the better numbers coming from defense from next quarter.

Understood. Sir, any sense of time lines for Pinaka in terms of RFP on a [ defcon ] basis also?

So recently, we were clear on the acquisition of these products. So once they release RFP, we will definitely share with all our stakeholders.

Understood. And sir, on the international operations, if you could highlight how is the situation in Turkey. And also, if you could talk about the expansion in Australia and Tanzania?

Yes, our operation in Turkey is business as usual. And though Turkey has come under the gray list, but it didn't impact our business, except any -- there could be some foreign currency fluctuations. And we don't see much other issues because of Turkey coming under the gray list. As far as Tanzania is concerned, I think we have almost completed our project and it should go into commercial production, I think, in November. Australia, the construction is still done. It has been delayed because of COVID and heavy monsoon in that part of Australia. I think we should be able to be complete in this financial year.

Understood. And how is the profitability in South African operation, sir?

We were expecting EBITDA in a level we see in the current financial year. But Africa was logistic challenges around COVID, ForEx fluctuations and steep tension in the raw material prices and logistic concerns also. So we feel that next year, it should be in line.

[Operator Instructions] We have next question from the line of Bharat Gupta from Edelweiss.

Congratulations for a great set of numbers. My question is first on the defense side. So there, we have seen that on a Y-o-Y basis, our contribution is really at a constant figure. While earlier, we were projecting of delivering near about INR 300 crores for the full year. So do you think that the target is now on the upper side and didn't need to revise on further?

Defense side, earlier, we have given a projection that we should be able to reach around INR 300 crores number. And we believe that we should be able to reach around INR 275 crores in this financial year.

All right, sir. And sir, for the MMHG orders, so that was the commitment, we have to deliver the product the orders that we have been [indiscernible], right? So for the next year, do you think that our overall contribution can be greater than INR 400-odd crores for FY '22?

For this financial year, we should be able to reach around INR 275 crores. And as we progress further, we will bring the annual guidance once we really reach into those Q4 numbers.

Right, sir. And sir, secondly, coming on the guidance range. So there you have highlighted and devised it's upwards towards 40-odd-percent. So mainly, I guess just wanted to get a sense about what kind of a volumetric growth are we looking for the full year basis?

For the current year, we see the volume to grow around 15% to 20%.

All right. And the [indiscernible] be pricing. And sir, coming on the export trend where we've seen a 34% kind of a growth, so just wanted to get a sense about stabilizing operations pertaining to Ghana in the South African market. So what is the key driver in this particular quarter?

Generally, we do not share the standardized revenue. We share that on an annual basis. Yes. But on overall basis, exports and overseas revenue in the quarter has grown by 34% and on half year, 40%-plus.

Right. Have you seen any logistical challenges pertaining to continuation or something with respect to our overseas supply?

Yes, the logistics challenges are still existing. It has existed for the last 6, 7, 9 months. We have managed it till now. I think we will face that challenge of managing it going forward.

Right, sir. And sir, my last question pertains to the CapEx front. So where we were planning for 2 new plants. So how are we [ today ]? And what is the expected time line for the completion of this, sir?

Currently, as we said, during the half year, we have done around INR 137 crores of CapEx and the annual guidance stands at INR 315 crores, so we are on track. And despite of the rise in the commodity, we are maintaining the guidance of INR 315 crores.

My question pertains like have you finalized the lands for the 2 upcoming plants, which we are taking? And like what is the time frame where we can commence the production on these?

We are still exploring the location feasibility and the reasons mentioned that is in the northwest and south of India. The same is in previous. And as and when that gets finalized and materialized, that will be communicated.

[Operator Instructions] We have next question from the line of Mayank Bandari from Nirmal Bang Institutional Equities.

Sir, my first question is on the guidance that you have revised to almost 40% growth. And in first half, you have done almost 50% growth, which implies that second half would probably be a 30% growth. So 30% growth would be a value growth and there may not be any volume growth. That is what you are indicating?

No. As I said earlier, the volume growth should be around 15% to 20% on a year-on-year basis. On half year, as we see, the volume growth was around 31%.

Yes. So second half, there will not be much volume growth, right?

We see the volume growth because it is from Coal India that we have bought an additional 17% volume growth.

We have next question from the line of Abhijit Mitra from ICICI Securities.

Just to understand the nature of the margin drop, 33%, in this quarter a bit more. So in terms of your ammonium nitrate pricing, what is the kind of escalation that we have seen in this quarter? And also to understand, is just pricing also leading to some amount of volume pushback from the clients? Are you seeing some element of demand destruction happening also? The reason I'm asking is the sharp increase in working capital also that we are seeing, which is pulling up your net debt. So some color on this, the upgrade.

Yes. As regards ammonium nitrate, the prices have increased on year-on-year basis in this quarter at around 38%. And on quarter-on-quarter from the previous quarter, this is around 11%. And further also, we foresee a steep rise in prices till the price stabilizes. So we have -- generally, we have started passing on the increase in the cost to the customers, but with a lag of month and quarter.

Apart from these price right, what you have asked, whether it will impact the demand cycle of the product or not, I would like to add on this point that this second quarter is normally a lean period for our country for demand of exposures. From October onwards, definitely, we see that price will not impact the demand because everybody should like to finish their projects and do the mining before the next monsoon starts. So the window available is only 7 to 9 months, and we don't feel that it will impact the demand as such. And like we have seen, there are a lot of supply chain bottlenecks coming up in the country because of the international factors. So that will also reduce the availability of raw materials in the country. But like we have shared that we have taken all the necessary steps to come out of these kind of challenges and we are getting much confident that we will be able to continue passing all the drivers to the customers and meet their demand as per our obligations.

And on the borrowing part, no doubt that has increased. But as we see [indiscernible] to same factors, okay. And the working capital position, we are at the same level that we have maintained at 108 days. But if we see the inventory base that has come down from March from 119 to 105, and debtor days has also gone down from 66 to 60. And also the creditor days have gone down by 20 days. Back then, it was 78 days in March, and currently, 58 days. So the working capital days remains same, but overall, the working capital position is quite good. And by March, we see that it should be around 100 days, further reduced to 100 days.

[Operator Instructions] Your next question from the line of Amit Zade from Antique Stock Broking.

Maybe just one question on the domestic explosive industry side. I think, correct me if I'm wrong, I think last 4 to 5 years, we have seen this industry almost in the range of INR 5,000 crores to INR 6,000 crores. And now what do you see this industry moving towards? And within this industry in specific segments like demand from coal limestone, iron ore or other, if you can break key segments of the industry? And what -- which part of this industry you are more bullish on and see higher growth traction in the near future, sir?

Based on our experience and the inputs which we received on various quarters, we believe that the industry will grow at 7% to 8% on sustainable basis for years to come. And as far as mining industry is concerned, it can be around 6% to 7%, which is a sustainable number. And for housing and infrastructure, we believe based on the various projects and strategic push from the government of India, demand should continue at around 10% to 11%.

Okay. Sir, the broad breakup of this industry in terms of coal limestone, iron ore and lower infrastructure?

Mine life is basically already given in our annual report. You can refer to that. And if you have any more questions, you can send us. We will reply to that.

Okay, sir. Got it. And sir, another question on our Coal India revenue. So again, 3 class 3, 4 years, we have been in the range of INR 400-odd crores of plus/minus 5%, 10%. And now we are little less confident of clocking almost -- if you add back bulk detonators, roughly INR 700 crores to INR 800 crores of annual run rate. So we are almost seeing a doubling of -- certainly doubling of the content from Coal India after almost being stagnated for the last 5 years. So I'm confident on certain of volume with [indiscernible]? Or you believe this kind of now that we have this, the next level, so that it would again maybe stagnate as we deal for a couple of few years and then more go ahead?

So like I answered, [indiscernible] we foresee that there will be in the range of 6% to 7% and mining growth in India, mainly because of the coal mining. And as government has already announced that they will open up the coal block to the private players. So what we give our guidance or our conception that 6% to 7% growth includes demand from Coal India, [indiscernible], Singareni Collieries Company Limited and various private coal mining. So as far as your portion of our dependents or our remaining share from [indiscernible] is concerned as, we have been showing that our revenue from Coal India as a percentage of total sales since going down, but our presence in Coal India is not going down. If you look at our basket now, it is around 16% to 17% of the total revenue. And it is similar to deep number plus minus 2% or it was 20% 2 years back. So gradually, as our businesses from different businesses from international markets, businesses from housing and infra sector will grow, definitely, shares from Coal India will keep reducing within or gradually.

[Operator Instructions] We have next question from the line of Abhishek Ghosh from DSP Mutual Fund.

Sir, if you can just help us understand that this time around in the Coal India bidding process, how has the competitiveness given the overall sourcing issues of the raw material are you seeing reduced competitive intensity? Any thoughts around that just for the Coal India bidding will be helpful.

The bidding process is as per the normal process that Coal India had for the last few years. The bidding process, there was no change in the bidding process. The number of participants supply the vendors who participate in the tender remain the same. Definitely, they would have been issued with supply [indiscernible] problems and logistics problems for certain vendors, who may have actually moved out of Coal India's participation and not taking the order. That could have happened as a result of which we have got a 17% increase in volume.

Your market shares for Coal India would have remained stable?

More or less, maybe a slight increase, but more or less stable and will still see increase.

Okay, okay. And the margin expectation also would be stable. Like earlier, [indiscernible] margin you were making, similar margins you will be making going forward also on a per tonne basis?

There may be some increases, which in this coming because there has been a better price rise in this tender.

All right. And sir, ex of Coal India in the housing segment and other segments that you're seeing, in the domestic market, are you seeing the lower-scale players having the issues of working capital and so things? Is that something that you're seeing in the marketplace?

Like I have already shared that the great challenges is mainly because of commodity price increase and disruption in the supply chain that is impacting the industry as a whole. What we are looking at this moment is to meet our contractual obligation and to feed our customers who always buy from us or who are dependent to a large extent on supplies from Solar. So we are not looking at what other people are doing, but definitely, we have taken necessary steps and we are in a comfortable position to meet our customers' requirement. There is a set price rise, and we are passing on the price increases to the customer, but Shalinee has explained that there is some lag and we are trying to bridge the gap as early as possible.

Okay. And sir, for the Indian operations, what would be the utilization level for you in maybe FY '21? And what we'd be broadly doing now? Or given the 20% volume growth that you're expecting in '22, what should be the utilization level?

Yes. Like we have already shared earlier, that Solar [indiscernible] facilities across the globe and product portfolio is also quite wide. So it is not possible to calculate one number to give capacity utilization factor. So it is difficult for us.

So sir, there is coming from that, the need for increasing capacity in India because the volume growth seems to be picking up right both for Coal India and with the housing pickup and infrastructure projects, things that you have mentioned out, do you believe there's a need for capacity expansion? And what will be the lead time because your pan-India capacity in the project plan is still, you're still not kind of laid out. So any thoughts around that from that perspective?

Okay. I understood your question. Like we have said that in this financial year, we are likely to spend around INR 300-odd crores, and out of that, almost INR 135 crores, INR 140 crores has already been invested in the projects. So it is mainly on account of increasing the capacity and increasing the product portfolio. Apart from this, we are also spending on staffing the new plants in Australia, Tanzania and additional plant in Ghana. So because of these, we have planned our investments. And going forward, we are also investing into expanding the product portfolio of defense [indiscernible]. And these things have been captured now, making an annual position of INR 300 crores. Apart from this, we have also shared that there are opportunities, and there is a need to expand our footprint from one location to multiple locations for some of the products. That's why we are planning to set up plants in the western part and northwestern part of India and southern part of India. So as and when those decision is being taken, we will definitely share with you.

Okay. And sir, lead time for putting up such plants from the conceptualization to the commercial would be something like 2 years, is that a fair assumption?

Like we have already conceptualized and freeze our plans. So since we have already known ahead on those things. So we believe that it should take around 2 years or 2.5 years to start the commercial production.

Okay. And sir, just 2 questions from my side. In terms of -- while Tanzania, Ghana, Australia, the newer testing and newer regions that you're adding, have you also kind of looked at over the next 2, 3 years, how many more countries do you want to add? Any thoughts around that will be helpful. [Technical Difficulty]

Sorry for some disturbances. Like we have already shared that it is our strategic plan to expand the global footprint. And we are exploring various opportunities in [indiscernible] and even Southeast Asia and Australia. So as we move forward, we will definitely share all those details.

Yes. Sir, just one last question. In terms of the housing and the infra segment, which is more of kind of a dealer-based model for you as well, are you seeing a lot of demand pull because you're hearing a lot of housing demand moving up and infrastructure projects are expected to pick up? So is there a scope for better margins in that segment given there will be a strong demand traction? Any thoughts around that segment, sir?

Like we don't share the margins on each customer sector wise. But on an average like we have been sharing that historically, which we always share that our margins will be in the range of 20% to 22%. But due to recent price rise and a lag between the price rise and finished goods price rise, we are maintaining that we should be able to make an EBITDA margin of around 20%.

[Operator Instructions] We have next question from the line of Shobhit Tiwari from Canara Robeco Mutual Fund.

Sir, my question is pertaining to the capital allocation, more so with respect to overseas. So while making the decisions, how do you ask like -- what sort of return metrics do you have in mind while assessing your new geographical footprint?

Generally, as we have been saying, the ROC -- [indiscernible] in the ROC should be around 25%-plus. So we keep that in mind by planning any expansion. And also we see the market, mainly we have seen in the overseas, it takes time to get on the market and stabilize. So on it, destination periods very long. So on long-term basis, we try to see that, that should cross ROC of 25%.

And generally, what sort of time does it require to reach that target?

It takes around 4 to 5 years to reach to the target.

Okay, okay. And just secondly, how do we look at defense segment? So we have invested significant capital. I understand there has been like delays in getting orders and execution. Now going ahead, you've highlighted that. Do we have a significant order book plus Pinaka order would further be coming in? So what sort of capital allocation towards that? And what sort of target and return metrics do we have in mind there?

Like we have been sharing that in the last almost 7 to 8 years, we have developed a wide range of products to fulfill our target of making country self-sufficient in ammunition. And we are also looking forward to export these products out of the country. Based on this strategic planning, we have been investing into the products for different applications. Like we have said that this year, our order book stands at INR 576 crores. And in this financial year, we should be able to reach around [ INR 275 crores, INR 280 ] crores as far as top line is concerned. So next year, definitely, we will share our annual guidance in the next quarter.

And sir, any return metrics in mind here?

Our return metric is not based on one product or one sort of portfolio, it is based on a company as a whole. So we believe that we are fairly near to our desired level of around 25%, 26% of return on capital employed. And as far as return on equity is concerned, we always try to let more than 20% on it. So by and large, our planning and strategy is based on those things.

We have next question from the line of Mayank Bhandari from Nirmal Bang Institutional Equities.

Sir, my question is related to the export markets. We have a very margin profile there. In Zambia, if you look at it, it was around 30%, less than 20%. And I think in Nigeria and Turkey, scale is also good. So what is the kind of product difference in the product profile there? Or how would you -- how one should read about this?

For similar [indiscernible], the product profile remains same. So it may defer a slide on the requirement on the type of mining in the particular country. But we see the basket as a whole. So for us, we see product at control level.

Okay, okay. And secondly, if you can provide what is this exposed in the first half that will be from the stand-alone entity? Any number? Are you willing to provide the numbers?

We generally provide the control and for the control the first half year, it's 41% of the basket and in amount terms, it's [ INR 669,136 crores ] for exposure overseas.

Okay, okay. Fine. And lastly, I missed the number that you mentioned for the initiation system in the [indiscernible]. Can you provide that?

For initiating system, you're talking for half year or quarter?

Half year, half year.

For the half year, domestic initiating is INR 180 crores in the first half year.

And Q2?

Only Q2, it's around INR 84 crores.

Okay. Only Q2, it is INR 84 crores.

Because of the monsoon, it's a seasonally weaker quarter.

[Operator Instructions] As there are no further questions from the participants, I'd now like to hand the conference over to Mr. Chirag Muchhala from Centrum Broking Limited for closing comments. Over to you, sir.

Yes. We thank the management for taking time out and sharing their value and insights on this call. And we also thank all the participants for their presence. Sir, do you have any closing remarks?

We thank all the participants in the [indiscernible]. On behalf of Solar, I wish all a very happy and prosperous Diwali in advance. Thank you.

Thank you very much. Ladies and gentlemen, on behalf of Centrum Broking Limited, that concludes this conference call. Thank you for joining with us, and you may now disconnect your lines.