Sterling and Wilson Renewable Energy Limited (SWSOLAR.BO) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to Sterling and Wilson Renewable Energy Limited Q2 FY '26 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. Sandeep Thomas Mathew, Senior Vice President, Investor Relations, for his opening remarks. Thank you, and over to you, sir.

Yes. Good morning, and very welcome to our Q3 FY '26 earnings call. We have with us today Mr. CK Thakur, our Global CEO; Mr. Ajit Pratap Singh, our CFO; and SGA, who are our IR partners. We will start today's call with the key operational highlights for the quarter and industry outlook by Mr. Thakur, followed by the financial highlights by Ajit, post which we will open the floor for Q&A. Thank you, and over to you, CK, sir.

Thanks, Sandeep, and a very good morning to all of you. This investor earnings call marks my first anniversary over as Global CEO of Sterling and Wilson, and I would like to thank all stakeholders for their continued support in this exciting journey. I'll begin today's call with a quick update on business operations and outlook. The third quarter has been an eventful and exciting time for our business with the company achieving some important milestones, which is expected to have a long-term positive impact on the company's future and operations. We have been able to deliver on the key order inflows guidance, which is a critical lead indicators of the company's business health. While we had conservatively projected 15% growth in order inflows at the start of this fiscal year, we have already achieved INR 6,929 crores of new orders this fiscal period. Of this, INR 3,086 crores of new orders was bagged in the third quarter through 4 new project wins. We are happy to announce that with the orders already achieved and a few more orders in advanced stage of closure, we are increasing our order inflow guidance to more than INR 11,000 crores in this fiscal, which is more than 60% year-on-year growth in order inflows and will mark this fiscal as one of the most successful ever in the terms of order bookings for the company. We bagged 4 new orders this quarter totaling INR 3,036 crores. The first was a gigawatt scale order from Adani Green for a balance of system package for 3 solar power projects at one of the world's largest RE projects at Khavda Renewables Energy Park, Gujarat. This order is valued at approximately INR 1,381 crores. We also took a meaningful step towards building our engagements by entering into a multiyear strategic partnership framework agreement with Adani Green Energy Limited. This framework is intended to support future utility scale renewables deployments through our structured and enduring engagement model and reflects a growing industry preference for experienced EPC partners that can deliver large repeatable project scopes with speed, consistency and risk management. We view this partnership as a strong endorsement of our execution capabilities and operating disciplines as well as a recognition of our increasing relevance in India's next phase of large format renewable energy development, where the scale, reliability and repeatability will be critical differentiators. We are confident of delivering the projects within stipulated time lines, which are -- also, we hope we'll start to showcase our ability to deliver domestic gigawatt scale projects in a short 12 months time frame or lesser, which we expect will increasingly become the norm for the project in Kutch regions where a huge 100-plus gigawatt scale PV project pipeline is building up. On the domestic side, there has been 2 more key project wins in the third quarter, including a 210-megawatt project from a private IPP and the large 790-megawatt hour battery energy storage project from Serentica. After the JSW BESS order award last year, the Serentica project really establishes our credentials strongly in the market. In the international market, we continue to make strong inroads in South Africa, where we have bagged our second order win this fiscal with a 240-megawatt tonne project with nearly USD 147 million. This will be the fourth project we will be executing in South Africa, and we have made strong progress with the first 2 projects in South Africa as well. At this point, it may be worth reiterating that all our post-COVID international projects have been moving along expected lines and profitability, indicating that our strategy to only work as per our terms and risk appetite in the international market is bearing fruit. On the execution side, we are continuing to scale up and deliver as per expectation. This is evident from our top line, which is up nearly 48% year-on-year and also well ahead of the revenue guidance at the start of the year. Moving to our unexecuted order value. It currently stands at INR 10,413 crores compared to INR 9,096 crores as of March '26, sorry, March '25 and approximately INR 9,287 crores as of last quarter. About 75% of our current order book comprises domestic Indian projects, while the international UOV comprises primarily 2 projects in Europe, which are in advanced stages of completion and 4 projects in South Africa. A large proportion of new wins is coming from clients with strong balance sheets, projects as clear land and [indiscernible]. Our operations and maintenance business continues to be a steady and growing annuity stream and has now touched a 10-gigawatt portfolio mark. The O&M portfolio has crossed critical scale, supported both by third-party contracts and the steady projects of our own EPC projects. As more large projects move from construction to operation, we expect this segment to contribute meaningfully to revenue stability and margin resilience over time. Now coming to the industry outlook and how things are shaping up for us in quarter 4 and beyond. We have nearly 6, 7 gigawatt of orders that are likely to be built out this quarter in India alone. And we are fairly confident of making further headway in some of these bids. We also have some interesting projects lining up in the international side, where as I mentioned earlier, we are building to find work along with terms that we prefer and find equitable. I would like to reiterate that we continue to remain present and carefully evaluate projects in India and overseas. We stay focused in targeting profitable orders. We did some aggressive biddings in the last 2 quarters on the PSU side, especially from a smaller new EPC entrants. Last but not least, our new order inflow guidance does not capture any potential order inflow from Reliance where we continue to remain in active dialogue on the last multiyear multi-gigawatt RE rollout. Those will be over and above our current guidance for this fiscal. For financial year 2027, we are already beginning to see a strong third-party EPC pipeline continue to build and expect the market bids can surpass over 30 gigawatt. What gives us greater confidence is the character of our order pipeline. We are increasingly engaging in projects that are part of multiyear capacity rollouts. These programs will typically involve repeatable scopes, standardized engineering and tight integration with transmission and historic infrastructures, and an environment where scale, experience and process maturity becomes distinctly advantageous. Over the past quarters, we have seen a visible shift in how large developers engage with EPC partners moving away from purely transactional contracts towards longer horizon engagements, framework and deeper operational coordination. This evolution aligns well with our strategic intent to grow through repeatable executions rather than episodic wins. These developments are structurally significant for EPC players like us. A broader outlook for India's renewable synergy sectors remains fundamentally constructive. Installed capacity continues to rise. Costs are tending lower. And ecosystem is deepening across manufacturing, energy storage and emerging building sectors such as hydrogen and ammonia. As India accelerates these transitions towards renewables, the availability of reliable large-scale battery storage systems is becoming essential for round-the-clock power. Despite its strategic importance, India's installed BESS capacity is at a very nascent stage. As of June 2025, cumulative operational capacity stood at roughly 0.5 gigawatt hour. CEA estimates India will need 34.7 gigawatts and above of BESS capacities by the end of financial year 2027. This widening gap between current capacity and future requirements is now driving a significant reallocation of capital across the power value chain where we hope to play an active role in the coming years. With this, I'll ask Ajit to take you through the consolidated financial highlights. Thank you very much.

Thank you, CK sir, and good morning, everyone. Our quarterly performance has continued to pick up pace. We achieved our highest ever third quarter top line performance since listing with revenues reaching INR 2,092 crores. For the 9-month period, our revenue has grown 48% year-on-year to INR 5,602 crores. The strong top line performance is largely attributable to improved execution pace witnessed in our domestic EPC business aided by the availability of nonfund-based limits in recent quarters, among other factors. Our unexecuted order book of INR 10,413 remains healthy and diversified, providing revenue visibility for the future periods. Importantly, the nature of the outlook continues to improve with commercial structures that minimize commodity price exposure, accelerate cash flows and are less demanding on our balance sheet. This reflects our conscious decision to prioritize quality of earnings over aggressive bidding, a principle that remains central to our operating philosophy as we prefer to change margins rather than changing only the top line growth. On the gross margin front, our 9-month FY '26 gross margin was 10% compared to FY '25 gross margin of 10.1%. Third quarter gross margin of 9.5% has shown improvement, both sequentially where it was 8.9% in previous quarter. And -- versus same period last year, where it was about 9.4% in quarter 3 FY '25. Our operational EBITDA, which is operating revenues less recurring overheads amounted to INR 105 crores this quarter compared to approximately INR 90 crores seen in quarter 2 FY '25 last year and INR 62 crores seen in prior quarter. On a 9-month basis, operational EBITDA is up 115% to INR 289 crore from INR 134 crores in the same period last year. The operational EBITDA is a key indicator of how operational leverage can favorably at bottom line as execution scale pickup. Our recurring overheads have remained flat in this quarter at around INR 93 crores and at levels similar to seen in last quarter. Our nonrecurring overheads for this quarter was impacted by an additional charge on the Conti matter towards legal expenses of Conti as a result of the final order, which we received in quarter 3 that resulted in us having to provide for some additional costs, thereby impacting our reported PBT and PAT. Now coming to the balance sheet numbers. Our debt levels have remained stable during the quarter, with net debt decreasing by approximately INR 4 crores compared to last quarter and stands at INR 738 crores. Our net working capital has shown improvement at negative INR 407 crores compared to negative INR 279 crore in previous quarter. And we continue to operate in a negative working capital cycle. We have been able to retain our credit rating during the quarter and continue to make progress on finishing limits on non-fund as well as fund-based requirement. We have been able to raise fresh funds to the tune of around INR 2,500 crores since the start of the fiscal. That includes both fund-based as well as non-fund based limits. With respect to indemnity proceeds, we have received the full amount from Mr. Khurshed Daruwala, while we are expecting Shapoorji Group payment by January 31. With this, we can now open the floor to questions and answers.

[Operator Instructions] The first question is from the line of Sameer Dalal from Natverlal & Sons Stockbrokers.

So two questions. The first is, we've scaled up our operations very well, which is -- congratulations on that. You've got INR 2,000 crore revenue. But obviously, the gross margins have not come in very good for the simple reason that if you look at your overall costs have not gone up, but your operating margins overall have not gone up, in fact, have gone down quarter-on-quarter. So what was the reason for that lower gross margins? And how do we see gross margins moving going forward, given that we are working on this kind of open costing model, especially the one we tied up with Adani? Two, INR 30 crores, again, we took additional loss. I'm guessing now this is completely over. But going forward, do we -- I mean, are there any other known or unknown risks that lie in the balance sheet like the 1 we had? And if you can just elaborate a little bit on that?

Sure. Sure. So in terms of gross margin, as we've indicated earlier also, we expect a gross margin in the range of 8% to 10%. And the gross margin is changing based on the orders we execute, whether it is a turnkey order or it's only BOS, because in general, in percentage terms, margins are better if the order is only BOS. If it is coupled with the model supplies, in terms of margin percentage, the margins come down a little bit. But on an overall basis and absolute number terms, our margins improved. So we'll continue to maintain the guidance of around 8% to 10% overall margin, and I think we are in the same range. Coming to the second question on Conti matter. Last time when we gave our investor presentation, that time, we have received the interim order under Conti matter. And that interim order has a variable element, which was legal fees of the Conti lawyers which was to be reimbursed on an actual basis. And this INR 30 crores is towards that legal fees of Conti lawyers. We now received the final order and with that, we believe the Conti matter is over in terms of the impact in our financials. Going forward, most of the legal cases are covered under indemnity. We don't -- this was the largest case -- Conti case was the largest case, which was not covered under indemnity, and we don't foresee any large impact in future like Conti in our financials.

I understand that. My question is, are there any small -- you said this is the largest one. Are there any smaller ones that we need to look out for, which will have smaller impacts, no doubt. If you can just tell us if there is any possibility of anything coming up surprising because that is what has hurt the stock. People don't like these sudden losses, sudden exceptional losses coming up. So can you just tell us what exactly is there in the book? even if it's more INR 10 crores side, whatever, what is the possibility of any loss, I think, which is not stopped by the promoters?

There is -- at this point in time, there is no crystallized foreseeable loss which is not covered right now.

No, my question is not the crystallize. I'm saying what is there in the books? Is there any contingent liability that we need to worry about? And what is that amount?

No. So, Sameer, so basically, you see there are 2 things. One is that some kinds of the non-recurring coming out of the court cases. And the other part is that if you can foresee some of the losses through operations, right? So if you see the operational losses, I don't see any such eventualities coming in, right? So as of now, we don't have any claims from the client. There's no operational deficiencies, absolutely not, right? So I don't foresee any such things to happen again. On the court side cases, right? So we are pretty confident that whatever court cases are pending for the U.S. matters, once it is -- I mean, we are pretty confident about winning those cases. But the court case is a court case, you know that, right? So -- but then our all experts' opinions, legal experts' opinions, I mean, stay confident about winning these cases.

All right. So what is the value for that -- for the [indiscernible]. That's the question.

No. So I mean court cases are basically -- all of you are aware that this is all basically the -- I mean the encashment of the bank guarantee, right? So those against that encashment of the bank guarantee we have moved to the court. That's it. Otherwise, there is nothing the client has basically -- knowing the process, this goes -- I mean, clients have some claims. We have some claims. But it's all about basically against the bank guarantee encashment that we moved to the court.

So our cash outgo at this point in time is around INR 750 crores towards legal cases, which is covered under indemnity.

The next question is from the line of Puneet from HSBC.

Can you also talk in detail about what is the framework agreement that you have with Adani? Does it lock in your margins, any volumes?

Yes. So yes. So this is 5 years or more framework arrangements and the scope is defined. Contractual terms and conditions has been agreed between both the parties. And if you can successfully complete this project, which is in hand, basis that since they have a lot of ambitious plans in Khavda regions to go on. We are expecting that at a similar rate or even more than that, we could be getting EPC orders year-on-year basis. Margins, typically, if you see it is aligned with the numbers that Ajit has just spoken, maybe around, let's say, takeaway kind of things, right? So this comes to be around INR 10 lakhs per megawatt, kind of things, right? So which is -- which comes to be around 10%, something like this. So it is all aligned at the market. But what is important is that it is all in the same regions without any risk of the models price going up and down or transmission lines or the land issues. So we have a short business, right? So with this kind of business propositions, we feel that our stability towards the margins and all would continue.

Is there any quantum of how many gigawatts you will execute over the period or each year?

Yes. So this year, the first order that we are exiting is over 1 gigawatt and for the value of INR 1,381 crores and they have the huge capacity to add it there. Initially they were doing their internal EPC. Now they have moved to the third-party EPC. So there are 4 or 5 parties. We and LMC are the middle players there. So depending on our performance, which we are, I mean, pretty sure about delivering good, we should be expecting, if not more, at least the same gigawatt level kind of operations every year from them.

So 1 gigawatt each year broadly.

Minimum. That's what I said. Minimum. Gigawatt and more, right? Yes.

Okay. And any further clarity from when the Reliance will start for you?

So I mean, things seem to be on the ground now. So there are -- the infrastructure development activities are going on. And we are expecting that some more traction will take in this quarter, end of this quarter.

Okay. And will we have bandwidth to do both Adani and Reliance at the same time? Or would you have to rely on any external help here?

So I think it's a very interesting question. Today, we are doing almost 10 gigawatt in the country, right, and overseas. So -- and every single segment is defined in a manner that a particular -- I mean, operational region is sufficient to deliver that kind of goods. So while we're talking about Reliance, obviously, we have to build up our capacity. That's how the organization expands. So Reliance -- Adani has a separate setup that has already been defined. When we are moving to Reliance, then Reliance setup will be different. Everything will be different. So as far as capacity is concerned, no organizations from day 1 say that we are there to handle everything, but gradually have to improve, and you have to keep on building up. So that exercise, we will continue doing, but we are confident of delivering best. Yes.

Understood. And just lastly, if you can elaborate why Conti was not covered in the indemnity?

Most of the cases with customers, those who are covered in the indemnity when Reliance came as a new strategic industrial company, Conti being a case with subcontractor that was not considered during due diligence and negotiation with Reliance when they joined as an investor. And case also started after the Reliance came. So -- it was not before that, yes, yes.

The next question is from the line of Bajrang Bafna from Sunidhi Securities.

Just need to understand your gross margins during the quarter was above 9%. But despite that, our EBITDA margins on a consolidated basis is around 3% or maybe slightly better than 3%. So can you cite is there any one-off in the operational numbers on consolidated basis also?

So I think as we alluded during our discussion, one, Conti matter came that we have shown around INR 30 crore cost for that. And yes, so that has impacted our EBITDA margin from our gross margin.

But that too you have shown as an exceptional item. So I'm not talking about that. That has been mentioned in the consolidated numbers. But even after excluding that, your EBITDA is somewhere around INR 65 crores or INR 67-odd crores on a consolidated basis. So normally, you indicated that our recurring cost is around INR 93 crores. So the numbers are not matching up because still the EBITDA looks a little lower on percentage terms and also on absolute terms. So any other one-off in the numbers apart from this INR 30 crores?

No, normal business in one of the case in Australia, we have incurred sudden expenses on defect liability of the -- during O&M. So those costs have been accounted for, but those are normal business expenses basically, although one off, but normal business expenses in terms of our O&M cost. So O&M margin, that's why came down a little bit during the quarter, and that has impacted our EBITDA.

Okay. Got it. So sir, next year, excluding, let's say, Reliance is something that also we expect maybe some time in the near future. That is also something which is expected. But barring Reliance, in FY '27, considering our order book is about INR 10,000 crores, with Adani also in the foray, can we expect INR 9,000 crores sort of top line in FY '27 with at least 9%, 9.5% sort of GP margin and close to 5% EBITDA margin. Is that a right assumption?

Yes. So in terms of revenue growth, we have guided for the current year around 15% to 20% growth over last year. We are on the same guidance. And for the next year also, we can consider similar kind of growth, 15% to 20% in the revenue with the gross margin, what I indicated during our discussion. So...

Got it. And sir, just on the interest cost part, during the quarter also on the consolidated basis, interest costs have shot up to almost INR 45 crores or INR 47 crores. So any broader reasons for that shoot up? And how do we see interest cost panning out into FY '27 because our debt is more or less stable, and we are almost a negative working capital company. So just some highlights on that will be really helpful.

So during -- if you remember, during last discussion, we have disclosed that we have obtained a loan from IRDAI that was disbursed in September 2025. That was for INR 500 crores. So interest expense out of that loan came during this quarter for full quarter, and that has increased overall interest expense. Plus during the current quarter, we have also taken another loan from an NBFC, for INR 100 crores. So this put together the INR 600 crores addition in our gross debt. That has increased the interest expenses. With the repayment of these loans, majorly in the next year, FY '27, we expect the interest cost to come down sequentially.

Okay. So can we expect the run rate to be around INR 30 crores, INR 30-odd crores per quarter basis on FY '27?

It will change. First quarter will be high and then gradually it will come down until fourth quarter. My Q4 interest costs would be highest because we'll have INR 500 crore impact of IRDAI loan, plus INR 100 crores what we've taken recently, Q4 interest would be the highest one and then gradually it will come down. We can expect around INR 35 crores, INR 40 crores per quarter on an average basis.

The next question is from the line of Anuj Jain from Globe Capital.

Congratulations on the good set of numbers. My -- just a simple question. I mean in terms of revenue visibility, we are doing a lot of many things, and it is shown in the numbers. But again, the same is not reflecting in the bottom line. That is the main concern over the last, I would say, 7, 8 quarters that we have a very lumpy kind of bottom line due to some event or the other. So when we can see a stabilized number going -- I mean by which quarter or which year we would be able to see the stabilized number that these are our gross margins and we have so much lumpiness in the EBITDA margins. So any stability in kind of numbers as an investor because it's pretty difficult in every quarter, we don't see any improvement on the bottom line side. So I just want to understand what is the way forward?

So 1 of the unforeseen issue was this Conti legal case, which we were hopeful to win, but ultimately, we lost and that has resulted in an exceptional loss in the last quarter as well as this quarter of around INR 30 crores this quarter, we have got the impact. With this looks like most of the exceptional and unforced things are resolved. And -- now in terms of cost also, we are in the process of rationalizing the cost and overhead. So we're expecting in the future the EBITDA margins to be in the range of 5% plus and gross margin, as I indicated, 8% to 10%. So that's what we can guide at this point in time.

By when we can see that stability. I mean from the Q4? From the next financial year?

That's right. Yes.

From Q4, you're saying?

Q4 onwards. Yes.

Okay. Okay. And one more thing. Any color on this Nigeria project? I mean do we have any discussions going on or till it is not there or...

Nigeria.

Yes. So Nigeria, it is still on. I will not say -- I mean now what has happened is that basically the Ministry of Finance has taken over the SPV operations, right? So they say that now this project is to be under SPV. So the project is still on, but their internal discussions, it has moved from NDP to Ministry of Finance. So at this stage, I can only say that there's still things are going on.

Okay. Okay. And in your order win, you have one order win for the Bakken Energy BESS thing. So can you quantify that thing? I mean how big that order is? And what kind of things are lined up in the battery energy storage system vertical?

Yes. So this order is for about 790-megawatt hour, although the battery supply is sourced from the client. But the rest of the integration is with us. So on the risk part, if you say, in a way, this is better. right? Value is less, but then at least the battery risk is not there. Recently, you must have seen the battery prices are again going up and all. So after the JSW orders last year, so this is the first large size BESS orders that we have got.

So what kind of margins do you expect in this BESS project?

Margin. Yes. So margin would be in the same range for all the EPC works, I'd say, whether it is the U.S. project or BOS with -- except for the BOS where the margin slightly goes down. But for all such BESS projects, all the margin remains the same, 10%. So here also, it is more than 10% only.

And sir, value-wise, what did you say, I mean, in terms of value-wise BESS project, I mean.

So this value is around INR 170 crores, INR 170 crores. Yes.

The next question is from the line of Danesh Mistry from Investor First Advisors.

First of all, congratulations on a good set of numbers and revenue going pretty well. I had 2 questions. One, actually, you had alluded to a previous caller earlier, where you spoke about the O&M margin. But if you could give us a sense on when do you think these would kind of come back to where they were. So if I were to see in December '24, your margins were close to 25%. And today, you're at approximately 3%. I understand there are one-offs that are there. But do you, at any point of time, see these margins coming back? Or will they be lower? That's question number one. Question number two, sir, you also spoke about the Adani order, there's roughly 1 gigawatt a year, what would that translate in value terms? And any indication or color on what would be the order booking next year, sir? That's it from my end.

So I'll take the second question first, right? So on the Adani order side, the value of the orders for 1 gigawatt -- over 1 gigawatt is around INR 1,381 crores, right? So INR 1,381 crores. And this is pretty aligned with the normal market orders that we get from the various clients from the PSU and then the IPP. So a better impact, we'll say. And as I have told, I mean, just now that this is a long-term framework agreement. So based on our performance in these projects, we'll keep on getting this kind of the megawatt level orders or even more. This, I think you see how the India is progressing. So this has -- last year has been around 62 gigawatts of the tendering. More -- I mean, part of them, the contract signed still has to happen between the implementing agencies and the developers. But with this, I mean, this pace has to continue. But in the other energy transition element, the hydrogen and this and the other things coming up. So the requirement of solar for sure is going up only. So what was the same this year, let's say, around 40 gigawatt plus we will be achieving. So I'm expecting the similar, I mean, traction will happen in a few years to come again, right? So whatever order guidance that we have given now, right? So I mean, around this level orders for sure will be coming. That's what I believe.

And in case of O&M margin, you are right, we have consistently given 20% to 25% O&M margin, and that's what we delivered also in the past. During this quarter, our O&M margins were around 18%. And there is a little bit dip in terms of O&M margin because of one-off expense we have incurred in a defect liability in one of the international locations. So that has reduced our O&M margin for the quarter a little bit. But otherwise, we continue to maintain the guidance of 20% to 24%, 25% in the times to come.

Got it, sir. Because if you see, even last quarter, September quarter, I'm just seeing your consolidated numbers, the segment, your O&M top line was about INR 63 crores and your O&M EBIT was about INR 9.5 crores. So that's about 15%. So I'm just trying to understand, sir, if we -- if O&M, if it remains at about INR 60-odd crores is the top line, will your margin come back to the INR 10 crore, INR 12 crore number? Or is the new normal about INR 8 crores, INR 9 crores.

No. So basically, see, I mean, our business model remains the same. With some kind of risk that we are taking for 1 project, which is operational risk, that means we have to maintain the performance ratio, we have to maintain the availability, right? That is the term in our scope. We maintain sufficient inventory of these players and the plant operation and maintenance practices are strictly followed by us. In this particular quarter, one of the Australian projects basically. So the panel, which normally doesn't fail, right? Normally such equipments are never supposed to fail. We have -- I mean rarely it will fail. But somehow these top panels, I mean, I don't know, because of what reasons, but then is still under the due diligence. But then the panels failed. Although we took a lot of actions to airfreight the panels to ensure that the down time becomes less and all. But despite all the actions, there were unavailability for few days, right, for a few days. So the generation loss during that day because of unavailability of one of the panels has really caused the penalty to be incurred. And that's the reason that this quarter has gone down. Otherwise, if you see over the several quarters or I mean, historically, our margin level remains the same. So this one kind of event does not mean that it is cyclic. And then again, in the next quarter, we were going to get a hit also. No. So the margin will continue in the range that we have been getting from the O&M business.