VA Tech Wabag Limited (WABAG) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, I'm welcome to the VA Tech Wabag Limited Q4 FY '21 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Rajiv Mittal, Managing Director and Group CEO. Thank you, and over to you, sir.

Thank you. Dear friends, good evening. Let's all -- let me first welcome you all to the earnings call post announcement of Q4 FY '21 results of VA Tech Wabag Limited. Joining me today for this earnings call is Mr. Sandeep Agrawal, our group CFO. We hope you all had a chance to go through the results update. The world, especially India, is going through a tough phase on account of second wave of COVID-19 pandemic, which has taken heavy toll on livelihood and also on lives. I wish you all the best of health and let us all hope that we get through the second wave of pandemic and emerge as more resilient global and much more economically and environmentally responsible. At Wabag, we have taken all necessary health and safety measures at our sites as well as in offices to ensure good health and well-being of our employees and laborers. Our endeavor at Wabag has always been to be amongst top 3 global water solution provider. I'm extremely happy to note that Wabag is now among the top 4 private water operators across the globe ensuring safe and clean drinking water as well as sanitation. This is indeed a proud moment for all of us at Wabag and also all our stakeholders. At Wabag, health and safety is of paramount importance and is an integral part of our culture. As a result, Wabag has secured 4 prestigious awards among a tough competition from 220 entries at the Environment Health and Safety Excellence Award organized by CII, Saudi. Moving on to our performance for the year, we witnessed improvement in economic activities and progress in Q3 itself. And we saw further improved across the globe as we progress into Q4. Our construction and supply chain reached near pre-COVID levels in Q4. In fourth quarter, our capital project team led by Mr. Varadarajan, achieved the financial closure of 2 HAM projects in our order book. In KMDA HAM project, we have partnered with IFC Washington and product intake for the project debt funding. And EverSource Capital will be our equity partner. The financial closure was completed in Feb 2021. Design, engineering and ordering activities are nearing completion. Construction work at site has already started. In Digha Kankarbagh HAM project and beyond, we secured the project debt funding from PTC India Financial Services and achieved the financial closure in March 2021. As you know, in Digha Kankarbagh project, we are already progressing on the DBO portion of the contract. Now with this financial closure, the design, engineering and ordering work on HAM project is accelerated and already in the advanced stages. Construction work is also expected to start soon. I would like to take this opportunity to congratulate the team for this wonderful achievement and wish to see many more such successes going forward. Coming to some of the 3 project updates. Our Doha South project in Qatar is being executed for public work authority towards rehabilitation of South Doha sewage treatment facility using advanced technology to treat additional sewage, which will be generated from the football stadium constructed for the FIFA World Cup 2022. These projects include rehabilitation of existing plants while simultaneously maintaining the plant performance during the project phase. Detail engineering is complete. All the long lead items have been ordered and delivered to site. We will work for the new units, digester, sidestream filtration, while storage stand is also complete. We have started phased commissioning of the project and expected to complete the same by this year-end. Our MARAFIQ project in Kingdom of Saudi Arabia to design and build a large sewage treatment plant with a capacity of 120 million liters per day for Jubail industrial city is progressing well. We have completed engineering and ordering activities with most of the items already delivered at site and balancing advanced stages of manufacturing. Site civil works have progressed well and with utmost focus on health, safety and environment where the project has achieved a major milestone of 4 million safe man hours. Coming to our Zarat project in Tunisia, the seawater reverse osmosis plant of 50 million liters capacity expanded to 100 MLD, is being executed. The project is progressing well with engineering and ordering nearing completion. Civil work at site are at peak. Equipment deliveries and installation has commenced. Delivery of intake and outfall [ file ] at site has also been completed. At our 300 MLD independent sewage treatment plant at new Jeddah Airport in Kingdom of Saudi Arabia, which is being built with the state-of-art Merida technology for first-time in the region. The project is progressing well, amidst global pandemic climate. We have achieved approval of basic engineering packages. Detailed engineering and procurement activities are in full swing. Construction activities from the customer side is also progressing well at site. In our 30 MLD seawater desalination plant being executed from Mangalore Refinery and Petrochemicals Limited, engineering and procurement activities are complete. Equipment have been delivered at site and civil works are in the final stages of completion. Seawater intake structure and cross country pipeline work has been also completed. We expect to commission the project within Q2 FY '22. In our effluent tent plant being executed for Purolite in Romania, which includes 15 years of operation and maintenance, engineering and procurement as well as construction activities are complete, and the project is currently under commissioning phase. We expect to complete the commissioning of the project next quarter, which will be 3 months ahead of schedule. Thereafter, Wabag will run the operation and maintenance of the plant starting H2 FY '22. Moving on now to the key financial highlights for the year. I'm delighted to inform you that with our continued focus on cash management and debt reduction, we have returned to net cash position of INR 44 crores this year, and once again, generated free cash flow of INR 96 crores and operational cash of INR 135 crores. Our gross debt has reduced over the last 2 years from INR 613 crores in March '19 to INR 520 crores in March '20 to INR 350 crores in March '21. We are proud of the team for this significant achievement. I also would like to highlight the performance metrics of our core business for FY '21 EBITDA of core business for the year stood at 9.6% against a reported EBITDA of 7.7%. Core PAT of the business for the year stood at 5.3% against a reported PAT of 3.9%. Return on capital employed, ROCE of the core business stood at 21.4%. Core net working capital days stood at 58 days for the year. Our core business, which is water technology business remains intact and continues to grow profitably. With the high-quality of order book, close to INR 10,000 crores and also an excellent order pipeline visibility we are confident of another good year's performance to generate value for our stakeholders in our growth story. I would like to express my sincere thanks to our direct and indirect employees and all the stakeholders, including our customers, suppliers, investors and bankers for their continued support, especially during these pandemic times. I would now request Sandeep to take you through the financial highlights for the year. Over to you, Sandeep.

An opportunity to look at the results update presentation as circulated and uploaded on our website. Now let me take you through the key financial highlights for the quarter and the year ended March 31, 2021. Our consolidated revenue from operations stood at INR 2,835 crores, it's almost up by 11% as compared to the previous year. On a stand-alone basis, the revenues from operation was about INR 1,843 crores, up by 6% as compared to previous year. Revenue from PTC projects grew by 10%, and O&M has grown higher than EPC, which is about 17% year-over-year. EBITDA for the year stood at INR 219 crores on a consolidated basis and INR 170 crores on a stand-alone basis. Our EBITDA margin, excluding ForEx gain/loss and divestment gain what we had last year, has largely remained intact on year-on-year basis. Profit after tax attributable to owners for the period stood at INR 110 crores on a consolidated basis, up by 21% and at INR 73 crores on stand-alone basis, up by 24% from the previous year, representing a profitable growth. For the quarter, our consolidated revenue was INR 1,000 crores, a 27% year-over-year growth and stand-alone revenue was INR 700 crores or 42% year-over-year growth. And it has been our endeavor, we returned to a net cash position of INR 44 crores in FY '21. Our gross debt has reduced by 33% from March '20 and our net interest cost by 48% on a consolidated basis on account of significant debt reduction. Our net working capital stood at 97 days. Debt reduction has been applying agenda of the management to improve the liquidity level of the group, and our efforts are showing the expected results. Continuing our focus on cash management, we continue to generate free cash and operational cash for the second consecutive year. During FY '21, we generated free cash of INR 96 crores on consolidated and INR 69 crores on a stand-alone basis and positive operational cash flow of INR 136 crores on consolidated basis and INR 105 crores on stand-alone basis. We thank our bankers, vendors, investors and other stakeholders for the continued support extended to us during the year and going forward. With this, we open the floor for question and answer.

[Operator Instructions] The first question is from the line of [ Sandeep Vera ] from [ Weinstein Competency ].

Congratulations on strong set of numbers, sir. And also congratulations on bagging net cash position, and being rank fourth in the world in the private water operator. Sir, my questions are -- I've two questions. We have generated INR 136 crores of cash, that is correct, from the operation. But last year, it was INR 244 crores. So it is a muted cash flow from the operation this year. And sir, how do you see this receivable moving? Because if you take current noncurrent and the from one of the customers, which we know. So it is amounting to almost INR 2,900 crores, sir, INR 1,349 crores from the current receivable, INR 547 crores noncurrent receivable. And other assets, one receivable which is classified into other assets, it's almost probably maybe around INR 1,000 crores. So how do you see these receivables are moving going forward? And other question is since the input costs have gone up. So how do you see EBITDA moving further?

Okay. First, thank you for your appreciation. We do appreciate that. Second thing about your receivable, I think if you would compare the same numbers, what you highlighted this year versus last year, you would see there is a net movement positive that we -- though our top line has gone up by almost 11%, but our receivables have come down by more than INR 100 crores. Rightly, you said under the different buckets, one, you are saying in the assets, other assets. These are -- being an EPC company, there's always some progress cost, which we cannot bill. It is not a bill receivable. We don't build that. And since this is not a receivable. It's just a progress cost which we have -- which we will collect in the coming months and quarters as we deal, we will collect that. The other part of our business is always a retention money. And this retention money you see in most of the contracts during the execution, client deducts about 5% to 10%. And when we complete the project and hand over, we get this retention money. And in some cases, a part of the retention money is even paid after the warranty or the defect liability period. So going forward, this will be the nature. Yes, some of the due receivables, which we have done well this year, and we expect to continue this momentum. And in this year also, our aim is to further bring down the collectible receivables, which is what we will do. And I think your third question...

Question on increasing input cost and rising material cost and all that federal...

During the pandemic time, basically, all the costs have gone up. I think you have seen yourself how does -- all the metal indexes. I think anybody can go to a London metal exchange and see how the metal prices over the last 8 months have gone up, whether it's steel, copper, alumina, everything has gone up. But most of our contracts also have an escalation clause and we get compensated, if not fully, a substantial part of our increase is compensated by this escalation formula. So going forward, if this continues, which we don't think so because we believe all the -- our factories are starting production. China exports are coming back. So we expect this escalation in cost will be now controlled and it will start moving down. But as I said, even if it remains high, we are covered, to a greater extent, by the escalation formula we have on our contracts.

[Operator Instructions] The next question is from the line of Mohit Kumar from DAM Capital.

Congratulations on a very good performance in a very, very tough year. So my first question is are you willing to give any guidance for FY '22? Or you are refraining from giving any guidance given the environment?

I think the second part of your question is what we would go with because you know under this circumstances, when you don't know even next month, what is going to be. So there's no point in giving the guidance for the year. As soon as we see more stability in this environment, which has been very tough for the last 12 months or 15 months, I must say, we would definitely give a guidance. But one thing is we are very bullish. We definitely see the performance going up in the -- this year and going forward also. As I said in my speech, that our order backlog has been excellent. And there are good quality orders. Most of them are from multilateral agencies. And also the pipeline, which our boys have developed over the last 12 months, which will give results this year is also very solid. We have a good visibility that we can see good orders, both on the industrial side and international markets where we will increase our order book further.

So second question is, sir, of course, you just touch based upon the order. But can you elaborate on the order outlook and order finalization for FY '22? And do you think the situation improved further on the ground, and you can see a better momentum compared to FY '21. I think FY '21 was slightly very, very muted for us as far as order inflow was concerned.

I think this -- we have mentioned in our calls earlier. Definitely, it was a strategy because we already have a good order. We don't want to load too much order in our order book, then we are open to delays. So we just took a little bit of break. And in the meantime, developed an excellent pipeline with good funding and a substantial part of that order, which are going to come this year, you will see international and industrial, where generally, the cash flows and margins are better.

Can we expect an order inflow something like FY '20 levels?

As we said, we refrain, in this call at least, to give guidance. But I'm sure we are very bullish on our order intake this year.

The next question is from the line of Priyankar Biswas from Nomura.

Congratulations, sir, for turning net cash after quite some gap. My first question is, at least on the current receivables on those fronts. So we have seen a substantial improvement this year. So in this regard only, do we see this working capital improvement as sustainable, like, let's say, over FY '22, '23? So like what are the measures that the company has specifically taken to do this. Because what I remember was, earlier, the receivables level seems to be a bit higher. So what are the measures you have taken? So what is the sustainability on that? And the last part of this question is, there would be certain equity investments, I believe, for our HAM projects from our share of the investments. So what is the SCF outlook on basis of that?

I think the first question, if I may respond, on receivables, you have seen it, and I think the earlier participant also asked a similar question on my response. And you have also seen from the numbers we have been projecting in the last 2 years, there is a tremendous focus on cash management and receivables. And this is what has enabled us to bring down the debt, improve the operating cash, improve the free cash. We have done that. And there is no looking back on it. What the good work we have started, we have to make it even better. I think people are focused. We have put that as one of their KPAs that they have to collect cash, and each project has to be cash positive. We have to negotiate that payment terms and also go ahead collect cash on time. I think the boys have been doing a pretty good job over the last 2 years. And I assume this will become part of the DNA of the organization. And going forward, definitely, this is sustainable. Regarding your equity, as we have always told you, and we want to remind if we have new participants here, that we have always been an set-light company. And we want to continue this journey going forward as an asset-light company. Now because there were some opportunities, especially coming out from Namami Gange, where they introduced this model of HAM; being a leading company in the country and also globally, we didn't want to give up this opportunity first to clean some of our rivers, which we think is a social responsibility for a company like us, and second, also, there was a huge business opportunity, which was also available to us to clean the river. So we came up with a model where we have already closed 2 projects financially, where our equity contribution will be extremely low. And this kind of projects will definitely keep our position in the market very well. And also, we will invest extremely low equity. Now like you talk about this large [ good-to-go ] project, Angkor Wat and bigger. This project is almost about INR 1,200 crores. And our equity will be INR 7 crores to INR 10 crores. So you can see on a project of about INR 1,200 crores, where we are going to do EPC and O&M for 15 years, our equity is going to be 1% to 2%. Same thing with KMDA, where our equity will be INR 15 crores to INR 20 crores for a project of the size of about INR 400 crores. So all this, we have structured in a way that we don't invest a lot of equity. At the same time, we remain participant in this project and do our APC and O&M projects.

So sir, that was quite a comprehensive answer, excluding the nuances. And if I may touch upon this, like I know you are not giving a sales revenue guidance as such. But it seems that this quarter, you had done, like, almost close to INR 10 billion. Last time, it was like INR 8 billion.

Correct.

At least something of this sort of quarterly run rate can reasonably be maintained. Will we be wrong to perceive that? Or is it a right understanding?

You have to -- you are very experienced. You have been following this company for many, many years now. So I don't think I can make any comments on your assumption. You just have to go by the past track record and see how good is our order book, how our execution is getting the traction, and you should make your judgment. And I'm sure your judgment will not be wrong.

The next question is from the line of Jonas Bhutta from PhillipCapital.

Congratulations on improvement in the balance sheet, which was much awaited. Sir, a couple of questions. Firstly, sir, if we can get a breakup of INR 107 crores that you provided for bad debt in the year, as to how much of this is for the GENCO projects. Now if we were to look at a 3- or a 4-year period, sir, we've provided in excess of INR 300 crores in form of bad debt, which now sort of total up to almost 3.8% of sales. Now going into FY '22, do you believe that most of the cases that we were to take on either GENCO projects or the other projects is largely behind us, and the bad debt as a percentage of sales should now go back to the historical averages of about 1% to 1.5%. That's the first question, sir.

I think you know, Jonas, you have been tracking this company for a long time, and you did mention about this. So I think our run rate is still in the range of 1.5% to 2% without GENCO. And we think this is sustainable for a company of this size with multiple geographies, what we have been doing over the decades. About 1.5% to 2% is a good number, what you mentioned. And I think as we go along, GENCO will become insignificant. So there's nothing more we need to provide on many years to come. Maybe still something more depending on the outcome of some of the legal issues we have. But other than that, I don't think you're wrong in saying that we were always in the range of 1.5% to 2%. I think we should get back to that range.

So sir, out of the INR 427 crores of receivables that we have from the GENCOs, which are mentioned in the notes to account, how much of these have now been provided for, sir?

See what we are saying, and that is also we have given you a breakup. Clearly, these things are as the legal thing. And you know, for the last 1.5 years, there is nothing has moved at NCLT or in Supreme Court, where these cases are. And also at one of the execution sites where the site has been closed for last 1 year because of various issues related to COVID, which we expect that this week, we will restart as the state is coming out of the lockdown, and we should be able to start that. We expect also the Supreme Court and NCLT should start working within this week. And as soon as it works, I think we should be able to achieve that.

My second question was, if I were to look at your receivable -- the reported receivables of INR 29 billion and take out this INR 400-odd crores on account of GENCO, we are still at about 325 days of receivables. Why that has come down? Because last 2 years, the average was about 375, 380, which is commendable. But where do you think that this should normalize because I'm sure you're not comfortable even with 325 days.

I explained, Jonas, to the earlier participant, I don't know whether you were there on the call that time. I think clearly, there are -- part of it is not even receivables. These are retention monies, which are maybe during the year or some of it over the next 1 or 2 years, they will become receivable as we complete the project and as we complete the warranty period, okay? So almost a bulk of it will get into that category, at least 1/3 of at least 30%, 35% of that is set retention. The other part is a progress cost, which is not even something is built and because we are progressing over the next few months or quarters, we will build and collect that. So our collectible receivables are maybe only 1/3 or 40% of it. And that's where we are completely on focus, and we have reduced that substantially, the collectible receivables, going forward in this year. Also, you will see, the collectable receivables will keep coming down.

Sure. And last one, if I can squeeze in, sir. So the project cost or the order book for the Agra Ghaziabad project has gone up by about INR 300 crores in the fourth quarter. Can you elaborate on what is this relating to? Has there been an additional scope that got added? Or how should one look at it?

See, there are two things, Jonas. One, there is an escalation clause on this contract for 10 years. So each year, we will build more than what we build in the first year. And each year, we'll keep on building more and more and more. That's number one. Number two, yes, you are right. This is the first time in the country they are doing a one city, one operator, which we had earlier done in city of Istanbul in Turkey. So as we go along the plants, a lot of refurbishment and replacements have to be done. These are a set formula cost-plus basis, and they keep giving us that refurbishment and replacement of those plants, and we keep adding that. And that adds extra scope to our order book.

So the annual revenue run rate from this project was expected to be about INR 75 crores, INR 80 crores. What is it now based on the...

No, no, no. Jonas, double up that, about INR 140 crores to INR 150 crores because it's INR 1,400 crores to INR 1,500 crores orders in 10...

Over a 10-year period, okay. Got it. So this additional INR 300 crores spread by 10 years, so another INR 30 crores sort of gets added, right, so INR 130?

Yes. And we can also expect, as we go along, we will get many more scope chain orders, and it will -- closing value can be expected to be much higher than the present value.

So this year, we have built INR 140 crores?

Yes, close to it.

The next question is from the line of [ Naman ] Jain an individual investor. The next question is from the line of [ Chuck Sebaski ] from [indiscernible].

Yes. I think most of my questions regarding this GENCO, now last August, you said that by December 2020, we should be able to collect something. But till date, I don't think I could get anything.

I don't think I need to answer. You know the answer yourself.

Yes, I know. But is there any chance like once the court opens and all, can you give some hope on this?

I think we are fully convinced that as soon as the court opens, that we will definitely handle it. Don't worry. And we will...

Okay. Okay, and then -- then...

And in the next call, we'll be able to share some good news.

And second is -- my first question, like, Chennai Desal project, JICA and municipality of Chennai that Desal project, no? That...

Yes, yes. I understand. I think definitely, we'll be happy that your company, as the VA Tech Wabag, we are one of the 4 qualified bidders. The prequalification process is over. We are one of the 4 qualified bidders, and we are now expecting for RFP to come, which we hope now the elections are over. The RFP should come any moment, and we are very hopeful that we will be able to do well on that.

Yes. So do they declare the L1 contract term?

No, no. This is only, our RFP still not come. So we have not submitted our bid. It's only prequalifications are completed.

Prequalifications. Okay.

This first phase process was just prequalification, then the technical bid evaluation. And finally, the price bid.

Okay. So what sort of time you can keep it in your mind? Like, by...

We are thinking that it should get finalized in Q4 of this year.

Q4. Okay. Okay. By the end of the year, financial year? February -- January, February?

Correct.

Okay. Okay. And congratulations on the performance of the company. We are improving day by day.

The next question is from the line of Kaushik Poddar from KB Capital Market Pvt Ltd.

See, this bank charge nearly forms around 1.8% of the turnover. With the improvement of your finances and the rating, do you expect this charge, as a percentage, to come down?

Yes. I think -- is it -- 1.8% is the total charge or...

Banks free up -- I think INR 54 crore is the charge on a turnover of around INR 3,000 crores.

These are only bank charges or including the interest? So the bank charges, you're right.

Yes, [ INR 67 crores].

I think if the 2 things -- very correctly, you have said. One is the rating of the company. Have seen rating has gone up during the last year. That definitely helps us to bring down the bank charges. But on the other side, the company's order book has gone up substantially, which also we have to give higher amounts of bank guarantees, both for performance and advances, which will also increase our bank charges. And this also has a lot of overseas contracts where we have double bank charges because the Indian bank gives it to a corresponding bank in that country. And that corresponding bank on that country gives it to ultimate customer. So if there are international jobs, the bank charges will be almost double of that of Indian contracts. So as we get more and more contracts and more international contracts, this number is expected to go up.

So can you take it that it will earn 1.8% or it can come down as the turnover goes?

I think around that should be okay. Because 1.8% of INR 2,800 crores, yes, it is about 1.8%. You're right. I think you should -- if you're doing modeling, it's a good number to stay with.

The next question is from the line of Renjith Sivaram from ICICI Securities.

Am I audible now?

Yes, much better.

Yes. Sir, I just wanted to -- congrats on good set of numbers. Good to see the cash flows coming back. But when I analyze your cash flow, it's largely because of our increase in payables that we are still able to manage the positive cash flow. So it could be other current assets have been actually increased.

I think, certainly, Renjith. You can see from the numbers we have given. The payables at last year was about INR 800-odd crores, okay? And then it is fixed [ INR 82 crores ].

Sir, your cash flows, actually, the payables have resulted in this positive cash flow from that.

One minute, let me get the balance sheet.

Renjith, payables have come down. It has not gone up. Maybe if you look at the overall...

From the cash flow statement in that the -- if you look at the trade receivables has increased INR 78 crores. Other financial assets increased INR 57 crores. And other assets have increased INR 132 crores, while your payables have increased -- both your payables and other liabilities have increased, and that has resulted in this positive cash flow. I am just reading out your cash flow statement, as reported. So as I'm going to change course because of this other aspects, improvement that we are actually seeing the cash flow generation much more like you guided to INR 81 crores of cash flow mentioned last year. And this year, it is only INR 167 crores. So that's what this other asset...

Renjith, I have the numbers in front of me now. I'm sure you also. Now if you see the noncurrent payables is at the same level for a higher turnover, higher sales, okay? It was INR 136 crores. Now it is INR 131 crores. So noncurrent payables have come down slightly from the last year, from INR 136 to INR 131. If you go to the current payables, if you take both for small enterprises and large enterprises put together, we are more or less flat. We were 161 -- INR 1,614 crores last year, and now we have INR 1,635 crores. So the payables have not gone up even our top line has gone up.

Sir, I'm curious. In our cash statement that you have reported in the stock exchanges.

But we just look at the balance sheet. Now it's straight coming from the balance sheet under the current liabilities and noncurrent liabilities. That also, we put it to the stock exchange.

Yes. Yes, sir. But then…

But that's reading from the balance sheet. If you want, I'll go to the cash flow statement also.

Sir, because there is an increase of INR 132 crores in the other assets.

Other asset increased on the asset side you are talking about.

You go to the cash flow statement, changes in working capital. There is a INR 132 crores increase in other assets. While your trade payables, there is an increase of INR 62 crores. And other liabilities, there is an increase of INR 43 crores. So these two have actually allowed us to show positive cash flows.

No, no, just hold on Renjith. Just hold on, I'm looking at the cash statement. If you want to look at cash statement, we'll do. But I thought the payables you are talking about, so I gave you straight from the balance sheet. If you want to go to the cash flow, either we can take offline or if you give us 30 seconds, I will give you the back-up of that INR 130-odd crores we are talking about. See, if you're talking about this INR 62-odd crores, which is payables, from the last time, the delta was INR 80, and this time it's INR 62 crores.

And if you go to the other assets last year, actually, been processing INR 156 crores. Compared to that, now it is negative 132 crore INR. That means that much of other assets have increased, which has actually impacted our cash flows.

No, no, don't worry. You want to take it offline? Or you want me to take the details and give you that.

No, I'm fine. I'll do it offline. No problem. I just wanted to...

I think I will tell Karan to call you. Because it's clearly what we are talking about, if you take into the payables, which is INR 62 crores, it's basically -- the ForEx element has almost 50% of that. There is a ForEx movement. That is the reason you are seeing that INR 62 crores. On INR 132 crores, also, I will give you a breakup. But coming to, very clearly, the payables have definitely come down. And the right place to see is our balance sheet where it shows that even for a higher top line, our payables are low.

Okay. And sir, if I look at the -- if I try to look at the last reported order book breakers and current, is there any reeling or is there any sort of that you have taken off or some readjustment in the order book, order intake?

Yes. It's harder because these are all dynamic orders. Some of this are item rate orders. If some of the portion is not getting executed, we always adjust. As somebody was asking earlier, whether it has gone up for both movements you do. If it goes up, we add to it. And if it comes down, we reduce it.

So there is no particular…

There is no cancellation, there is nothing. Not a single order is on hold.

Okay. And was there any large O&M order that we got last quarter?

I cannot tell you, but I don't remember of that, there is a large going-in order.

Okay. And lastly, sir, regarding our margins. For us, once, like, if you can, the order book, how much is fixed-price contracts and how much is variable price contracts so that we'll get some idea that this portion of the order book is safe and the other portion can be…

Our orders have a variable price index because these are generally more than 2, 3 years, and we have always a variable price index, and these are all multilateral orders. But if you want specific orders, please get in touch with our team. I'll tell my team also. They will give you order by order.

The next question is from the line of Harsh Shah from Dimensional Securities.