VRL Logistics Limited ($VRLLOG)

Ladies and gentlemen, good day, and welcome to VRL Logistics Q4 and FY '26 Earnings Conference Call hosted by Motilal Oswal Financial Services Limited. 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 a guarantee 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. Alok Deora from Motilal Oswal. Thank you, and over to you, sir.

Thank you. Good morning, everyone, and welcome to the Q4 FY '26 Earnings Conference Call of VRL Logistics. So today, we have with us Mr. Sunil Nalavadi, the CFO of the company. I will now hand over the call to Mr. Nalavadi to provide some opening comments, and then we can take up the Q&A. Thank you, and over to you, sir.

Yes. Thank you, Alok, and good morning to everyone. I warmly welcome all of you to the earnings conference call of our company to discuss the financial and operational performance for the fourth quarter and year ended FY '26. Onset, I would like to inform you that we have completed 50 years of service in the logistics industry. [indiscernible]

I'm sorry to interrupt you sir, but your voice is muffling.

Shall I repeat it?

Yes. Just like a few seconds that was muffling, like 5 to 10 seconds.

Onset, I would like to inform you that we have completed 50 years of service in the logistics industry. Our founder and promoter Dr. Vijay Sankeshwar started this company in the year 1976 with self-driven single vehicle with one route. Today, the company is operating with 6,000 owned vehicles along with the higher vehicles as well. Today, the operations of the company spread across 24 states and [indiscernible] territories with around 1,300 branch network. We cater to all the commodity segments with INR 10 lakh plus customer base. We are very much thankful to all those who supported us in this journey. I hope everyone has had an opportunity to review our investor presentation, which has been uploaded along with our financial results. We started this financial year with a strong background of freight rationalization and strategic pricing reforms, including the [indiscernible] and exit from the low-margin businesses. The year started with a deficit of 13% tonnage in [indiscernible] and so the full year we are [indiscernible] deficit tonnage growth by 7%. We achieve [indiscernible] improve in tonnage on quarterly basis in the current year, our efforts to increase in tonnage by adopting the right pricing policy. We are taking many steps to increase in volumes, especially by expansion in our network by opening new branches in untapped market, improvement in service quality by focusing more on own infrastructure facilities, which in turn result in the better control of our services, route optimizations to reduce the lead times to deliver the goods and having the lowest [indiscernible] ratio as compared to other operators in the industry. When it comes to the financial performance of the company, the quarter 4 total income stood at INR 859 crores, up by around 6% year-on-year and grew 3% sequentially, driven by improved realization, new client additions and the return of some previously lost accounts. Tonnage saw a quarter-on-quarter improvement supported by new account additions, growth in tonnage from the existing customers and return of volume following contract restructuring undertaken in the last year. Our daily tonnage crossed 1,500-plus tonnes during the quarter, reflecting improving demand trends. The realization per ton stood at around INR 8,147 increased by approximately around 3% year-on-year, reflecting freight rate rationalization and route mix. We were able to maintain realizations with sequential revenue improvement by 3% -- the yield improvement remains a key profit driver and reinforces our focus on sustainable margin-led growth rather than volume-led expansion. On profitability, the EBITDA margin stood at around 21.4%, down by around 190 basis points year-on-year. I would like to inform you that the quarter 4 of FY '25 was an exceptional quarter with a margin of 23% plus on account of our new initiatives such as freight rate rationalization, route optimization, et cetera, were introduced. The margins in the current quarter compared to last year were impacted due to increase in charges by around 1.3%, increase in salary by around 0.7% and increase in vehicle repair and maintenance by around 0.5%, whereas the fuel cost, which is reduced by around 1.7% to fuel 25% fuel quantity and cost increased to some extent on account of increase in the fuel cost per liter from INR 85 to INR 85 [indiscernible] advantage. With the current quarter we are in a position to achieve 21% EBITDA. The sequential EBITDA margin increased by 48 basis points improved [indiscernible] as against the last year profit of INR crores with a robust growth of 29%. The higher profit resulted in cash flow from operation to INR 68 crores from INR 83 crores in the last financial year. The cash flows of the company have been effect for [indiscernible] of INR 298 crores for the of INR 15 crores has been invested into purchase of land and building facilities in the critical locations of our operations. The cash flow is INR 175 crores also utilized for the payment of dividend in the current year. Our balance sheet remains strong. Net debt stood at around INR 440 crores as of March '26. And also the trade receivables to turnover ratio is at around 36 of the revenue, which will work out the receivable base around 10 days, among the lowest in the industry, underlining the strength of our collection mechanism and diversified customer base of 10 like GST traditional customers. Due to the higher return, the return on capital employed of the company increased to 25% from 21% and return on equity has increased from 21% from 18% Operationally, our network continued to scale. As of March '26, we operate around 1,293 branches and 50 transshipment hubs across 24 states and 4 territories. The fleet rationalization continues with the older vehicles being scrapped and reparation of owned assets improving around 77% of our fleet is totally debt-free and 14% is fully depreciated, providing strong operating leverage. Our strategic priorities remain unchanged, profitable and volume growth typically in the cost management and tight working cap control. We are actively managing the risk posed by current Europe development and potential derates volatility in fuel rates and other input costs. Looking ahead, when near-term macro uncertainties purchase, we remain optimistic improving demand conditions, stronger marketing initiatives, let isolation and expansion in underrated geographies positioned to well drive the gradual value recovery while sustaining the profitability. With this, I would like to conclude initial remarks I'll request participants to open for question and answers.

[Operator Instructions] We have our first question from Krupashankar NJ with Avendus Spark.

So my first question. So sir, first question is good to see that the volume growth is coming back on track. And then you have registered a first Y-o-Y growth during the quarter. Just wanted to get a sense around how do you expect the volume growth momentum in fighter and what are the efforts you are taking towards boosting volumes on that front, sir?

Yes. In terms of volume growth, we are expecting to grow at least around 6% to 7% for the full year basis. And we are expecting that at least around 2% quarterly growth on a sequential basis even for the financial year '27 to -- on a full year basis, the expectation is around the [indiscernible]

And what are the efforts you're taking towards pushing those volumes, sir? I think ...

The effort is basically our rate rationalization is already completed. And the customers are very well aware about the structure of the rates and ages. And we are pushing a lot of marketing activities, and we are identifying to the large customers and just to inform that we are getting a lot of new customers, also especially wherever we are opening the new branches, new geography, we are adding the new customers as well. So that is given a lot of confidence for us to increase the volumes.

Sir, but the diesel prices are also going up, right? Are you planning to further increase your prices to offset that impact of higher fuel costs?

Yes. Of course, digital prices are increasing, and it is impeding to every operator -- and ultimately, the cost, whatever additional costs will come, that needs to be passed on to the customers. And during the recent movement, whatever the rate increase is there. So to pass it on that expenses, we have not increased the rate, but some of the selective routes, wherever we are offering some kind of a distance. And wherever actually, the volume growth are coming, we identified this route and wherever the rate week is required, we have already done it. So for the month of April also, we have -- we saw that the year-on-year volume growth is around 8%, and we are maintaining the EBITDA percentage in the range of around 21% plus.

Understood. But given the fact that there is going to be further increase on selective routes. Does that put pressure around the volume growth expectations because the hikes are -- have been quite recent, right? And then just to get a sense -- how do you

Pressure is the volume growth pressure is not on account of the increase in fuel rate. But basically, what's happening -- some of the commodities demands are affecting for example, the products which are related to the petrochemical, which are directly related to the crude oil, for example, plastic production, we are already chasing closing in the market that the demand of such product is coming down. So those things may impact on the volume, but because of the increase in frac rates and all this is increase in fuel rates, so everybody is in the market or retain every operator has to take it all that, it actually be passed on to the customer.

Understood. And I could also see in the presentation that you're not currently availing the direct procurement due to increase in a bulk fuel rates. Just wanted to get a sense that -- do you see any -- while you have guided that the first quarter margins will be moving at around 21%. But do you see an impact on your margins because of the proportion of bulk supply coming down?

Yes. To that extent, the EBITDA level, definitely, there has been -- we are very flexible to maintain at around 20% level. So some basis points may impact on the margin because of this facility has been withdrawn. [indiscernible] the bulk purchases will tee loss.

Understood. Last question from my side, if I may, sir, just wanted to get a sense around CapEx, which you will be incurring in FY '27 towards fleet? And any hubs, which you will be adding during the year.

Yes. We identified around 2, 3 locations now, which are in the pipeline, especially places like [indiscernible] and Raipur is there some additional locations we are looking. But overall capital expenditure will be around INR 300 crores for the full year. Now in the current year also, we invested almost around metros out of that around INR 100 crores for the vehicle and demanding most of the capital expenditures for the land and reading facility. And even going forward also, the mix will be like that. around INR 100 crores to INR 150 crores for the vehicles and around INR 200-plus crores for land and bedding. So on a full year basis, we are expecting around [indiscernible] capital expenditure.

Our next question comes from the line of Ram Dangi from [indiscernible] investment management.

Sir, on the CapEx is, can you hear me?

Yes, please.

So you just explained that going forward, the CapEx will be around INR 100 crore of the [indiscernible] and the INR 200 crores on the land and buildings for the warehousing in the last 3 years. In 2025, we have done a huge CapEx of INR 400 crores plus. Where we see our recycling in the refinancing or the vital purchase cycle coming back into the picture in 2027 or 5 years, 7 years down the line?

No, this catalyst [indiscernible] is a continuous cycle. See now what happened, the government has put a restriction of the life of the vehicle for 5 years. even though it is not mandatory, but there are a lot of restrictions to operate the vehicles which are crossing more than 15 years. That's the reason whatever capacity will cross the 15 years, we need to add those vehicles. And apart from that, whoever [indiscernible] growth to carry the additional in growth also burial. So normally, what -- do we replace the vehicle in 5 to 7 years, so we keep it till end of the last 15 years in our fleet. Normally, end of the last 5 years. Only certain substances, which are outdated or major accident such ratings will be scrap even before that.

Great. And second, as we -- in the last 1 year, we are that are out the gross making order the lower-margin business is -- going forward, will the 10% volume growth rate will come back or it will be like in line with the industry of 5%, 6%, 7%?

Yes. Currently, the trend is there are certain pressures in the market. As I said, some of the commodities are impacting because of increase in the oil price. So the products which are related to that. It may be some of the plastic goods or some of the oil-related commodities. So there actually, demand is already constrained. So in spite of that, actually, we are expecting the growth in tonnage in the range of around 6% to 7% in the next year because of our network and catering to many products in the industry. We are not depending on any line of the commodity or land for customers. So that is given a lot of catalyst for us to increase the [indiscernible]

Got it. And normally, we give the tonnage, but do we tell the other metrics of the tenant with the genomes because the not just the limit to what you are acting. Nothing. And lastly, how the complete competitive scene in the industry? And I sent floater companies have also increased their prices and likes of the delivery work, even at the lower price, they are also going on the price hike. So how is the competitive scenario in the industry look now? Did that change in the last few months? Or is it still the same?

The competitive scenario, the industry is highly depending on the until operator. But that ratio is coming down a -- and the unoriginal market is converting into the organized industry. So many of the organized players actually taking share of the [indiscernible] . But about the fuel rate is concerned, whatever increase is there is everybody has to increase the rate and according everybody is [indiscernible] pass it on to the customers.

Our next question comes from the line of Nishita Sasha from Sapphire Capital.

Yes. So I just wanted to understand to that taint and that we are able to pass on our price increases to the customers. So is there any lag with which we pass on the time or we can like directly pass the cost -- increased cost to our customers.

Yes, there will be some lag. So now in the last 1 week is there are 2x increase in the rates. So we cannot increase like this. But definitely, we will analyze the trend over a period of at least 1 or 2 months, then we will take a call. Now because of some disturbance in the supply water, we got impacted. And because of this price increase of INR 3, we have already increased some of the freight rates in selective routes, not in the entire route of the company. So that is giving that is taking care of whatever additional costs we are incurring it has been already pass it on to the customers. like that in the future, whatever changes will happen, we will analyze for some period and we will take a call to increase the rate.

Okay. So we've be taken up license in some [indiscernible] or side?

Yes.

Okay. So like even with the lag, are we going to be able to maintain the 20% margin?

Yes, the lag, we did not much longer at will be very short to within a month or so.

Okay. Understood. And my next question is like how many branches do we plan to open in FY '27?

This year, we have opened around 110 countries. And out of that, around 55 to 60 branches which were project to the existing branch and some of the nonperforming branches of rear closed. But in the current year also, we are expecting the branches -- new branches to be opened.

Okay. So 110 net branches, have you opened or growth? Like how many branches do you said?

Around 60 branches -- net branches are around 40 numbers.

Okay. And even in certain we plan around the , like 100, 110 new gross branch we close around 50?

No. Going forward, the closure branches will be lesser. Net branches itself, we are expecting at least around 100 numbers in the coming year.

Our next question comes from the line of Anshul Agarwal from Emkay Global Financial Services Limited.

Sir, first question I had was on pricing in the industry versus [indiscernible] So since we've taken price hikes in Q4 FY '25, and I believe industry did not follow suit our pricing was slightly premium or premium versus unorganized operators. Now in a fuel inflationary environment, when unorganized is expected to sort of pass on these hikes. Would this lead to a conversion of pricing, but -- or should we think that different, the premium range should be maintained because we sort of pass on these fuel hikes as and when the prices are high.

Yes. Now what is happening, which is inevitable to each and every operator in the industry to increase the rate or park it on this fuel increase cost to the customers. So accordingly, we will analyze the competitor movement. And accordingly, we decide our pricing strategy. But with respect to the whatever rationalization and other things have been base defined based on our cost save that will never change. So for example, in some of the routes, our margin is hardly anything. Or some of the customer contract is giving very low margin. We don't wish to do that business. We wish to maintain certain operational margin. And accordingly, we are going to fix the rate in respect to any other operator in that particular route or that particular customer.

Got it. so to say, the Q4 FY '25 price it which led to a divergence in our versus sort of industry pricing that should sustain flash remain despite this fuel in [indiscernible] environment

Yes. And even in the market, many of the customers who have bet left is, they are coming back to us. So that's the reason for the quarter 4, we are in a position to grow in volume by around 3% on a year-on-year basis.

Got it. Sir, second question was any particular reason why [indiscernible] high charges have sort of increased? I believe we have adequate number of vehicles to sort of manage our own tonnage and the purpose of sort of doing this higher CapEx on vehicles was to sort of ensure that [indiscernible] had charges sort of remain at a minimum. So any particular reason why these have increased?

The overall number of vehicles, the vehicle capacity has been reduced compared to last year versus the Q4. Ramping last year, we were at around 6,100 vehicles. Those numbers have been reduced to around INR 5,900 because of reduction in the capacity of the vehicle and on the other side, the tonnage as we improve to carry that additional tonnage, we engaged outside BT.

Got it, sir. And given that our CapEx plans or vehicle spend plans are stable in the current year as well, do we anticipate a similar number of vehicles being scrapped as this current year?

Scrappage will not be there, but there will be addition of vehicles. So as we plan the year around 100 addition, out of that, around 100-plus vehicles at a [indiscernible] so the remaining 400 vehicles are going to be are till December.

The next question I had was on the tonnage contribution from the new branches that we have added in the current year. Would you be able to share that number?

Yes, new branches in the current year addition is hardly around in Q4 around 1%, 1.5% growth those are competitive. These are all new branches just they are adding the new customers. And the current year, the contribution is around 1.5%.

All right. Any particular plans or strategy of sort of extracting more volumes from these new branches in the coming years? Because I think we are adding net, you mentioned 100 branches on a base that should sort of contribute 7% to 8% volume on our overall base or they'll take time to ramp up?

You take time to ramp up. But on a full year basis, again, we are expecting that if we opened gradually or funded numbers, we're expecting that on a full year basis, these branches may contribute around 2% to 3% in the [indiscernible] and apart from that, around 4%, we are expecting the normal growth as from the existing customers or new customers in the areas where we are operating. So that's the reason we are in a position to reach around 67% or volume growth on a 2-year basis in next year.

Got it. So very clear. Just one last question. Any items on what could be our depreciation charges for the next 2 years considering that we have added a lot of hubs in the current year. I see depreciation has sort of not inched up in the current year despite the CapEx we have done. So sort of number that you...

[indiscernible] cost will not increase because most of the new profit is where we are investing the value of the land is verified. So land is a non-depreciable office, we'll not be any depreciation cost on that. only some portion of the building or infrastructure, what we are creating on the facility is it specific again, is it for a longer period. So there will not be much impact on the depreciation because of new [indiscernible]

All the very best for the next year.

But in spite of that, what is happening because of investment in these old higher levels, the rental expenses are coming down and even the lease liability and right-of-use [indiscernible] in the balance sheets are coming up. So that will be further strengthening our balance sheet.

Our next question comes from the line of Mr. Achal Lohade from Nuvama Institutional Equities.

Just wanted to understand with respect to vehicle mix, if you could call out and what is the typical [indiscernible] on an average?

Sorry, I'm not hearing you properly. Will you repeat your question, please?

Sir, my question is in terms of the vehicle, if you could call out what is the average tonnage and what is the average lead distance typically traveled on a daily basis?

The lead distance is in the range of around 270 to 280 kilometers. I'm telling you about across all the vehicle categories and the capacities are in the range of around 15 to 18.

Understood. Any particular reason why we don't maintain unlimited data, sir? Like is -- is it not a

Kilometers since we are handling your number of rules, it's basically the 1,300 rates to INR 1,300. That is a kind of a route where we are operating. That's the reason because of the bulk information, we are unable to complete that information, but we are trying to do that. Let us see if possible, definitely we will share that information to you.

Understood. The second question I had, if you could give some clarity for FY '26 for the full year, what is the mix in terms of the industry mix, what you used to give earlier -- and also again, yes? Yes, yes. Please go ahead, sir.

The investment is again predominantly to be driven by the extent cloud industry plus commodities. So currently, the portable term conformation from this cities around 17% to 18%. That trend is going to be continued. And the next line of item is about the interproduct center against fees, equipment also together certain all kind of exist all together is contributing currently around 10% to 11%. Again, the same line of contribution is going to continue the new thing is we are planning a good contract with some of port entity. So again, predominantly their products are related to either some of the materials are related to site and similar to that product. So invest in it will not change the [indiscernible] it.

So textile agri products combined is about 30%. What about the balance, sir?

Balance again, industry groups there are pharmaceutical industries an book and siteware product... Share okay. They are all in 5% to 5% to 6%.

Understood. And how about the MSME large enterprises and the spot bookings?

Cord booking, again, what we call, 2 and paid on, which is a spot seat what we are getting from the customer. So that is again contributing in the range of around 80%. And account customers are contributing in the rate of around 15% to 16% and remaining around 7% to [indiscernible] there actually the mode of the all the monoboard account.

6% to 7% is FTL through full truck load you're talking about, sir?

Yes.

Understood. And how are door-to-door mix, what is that ratio in FY '260?

Door to door earlier, it was around 33%, 34%. Now I think increased to around 38%, 39% close to 40% of the commodities are going door to door.

And what is the price difference between door-to-door and the others?

The relation will be around INR 1, INR 1.5 per kit will be more in the low deliveries.

Understood. Sir, I wanted to also understand in terms of your competition, given the price hike or what we have taken -- how are our rates compared to the immediate year? Is that substantially higher? Is that comparable or is that lower?

Compared to the [indiscernible] players, actually, we are offering some premium rate to the customers. And again, we have one in our operations, our customers are -- our competitors are different in each leg of our operation. So will expect a company they are not directly competitive to us. wherever we are having some account customer captains only in those scenarios, the expense rate can be comparable. But in corporate, actually, our rates are more or less comparable with these extra run companies. In the rest of the cases, again, it will change the route wise and commodities also. For example, we are handling most of the tax commodities from Visa to rest of the country. where our competitors are, again, the local operator in route was operators. For example, if [indiscernible] moving from [indiscernible] , we need to compete with 1 operator. [indiscernible] again another competitor. And within cities also, there are different operators. Say, for example, Surat, operator is there. Surat, another operator, Surat Hydra and other operator like this. So depending on the product and depending on the rules, again, we need to compare with the competitors. And as accordingly, we are taking. But compared to unorganized players, we are having some premium -- but in terms of one place, we are more or less comparable to that. And the rate also depends on demand and supply. For example, some of the operators will not provide service properly or 24x7 -- in those scenarios, definitely, we are offering some more premium rates.

Next question comes from the line of Danesh Jain from Apartments.

Am I audible?

Yes, you're right, please.

Perfect. Sir, can you talk a little about the buzz business which you have? We are seeing a lot of new buses on the road. So like how many buses do you have? What's the revenue? What are the margins like?

No. Currently, we are not into bus business. This companies. The promoter and other companies have in the bus business and there is no -- so we've seen cargo, et cetera, going there. So that is not a led to this. No, nothing.

Our next question comes from the line of Mr. Alok Deora from Motilal Oswal.

Just a couple of questions. So if you take this all these charges on diesel prices increase and bulk procurement coming down and also the toll charge is increasing. How much we are now in a position to increase the freight rates. We have increased at certain routes, but in general, and the talks are that the prices will increase further like today also, there was a price increase of maybe 80, 90. So sir, how do you see this? I mean, when would be a situation where, say, in a case where INR 3 crore, INR 4 has increased further during the next 3 months. So how are we looking at margins at the gross and EBITDA level to pan out. Would we be able to maintain this fourth quarter run rate? Or can it come under some pressure? Any thoughts on that?

Yes, there will be some temporary disconnect or some range there. But definitely, on a full quarter basis, you are planning to maintain the similar EBITDA numbers. The reason is, for example, now because of the disturbance in the bulk digital supply or through refinery, we have already treated in some of the routes that there wherever we are offering at a lower rate and all or wherever there is less competition. So where actually we have already increased some of the rates. And we have changed certain metrics also within the carryable wage -- for example, earlier, we used to charge a 12-week freighter cases. Now for certain routes, we increased from 8 to 9 periods. So straight away, the quantity will increase in such routes. And definitely, it will take care of whatever additional cost and similarly, certain line items. For the customers who are having different [indiscernible] also, like one is the basic rate. Then second thing, we are adding some of the loading and loading cars, some of the freight on value cost some 3, 4 additional items. There also, we are increasing certain metrics. And for account customers or contractual customers, we are adding one line item in the contract that the fuel such -- so that fuel such depending on the fuel rate that will change. For example, today, also, you increase certain rates. But minimum rate, they will expect at least around INR 2 INR 3 increase in certain contracts based on that, that fuel sushi will apply to the customers. So because of these steps, we are confident that we are going to maintain the EBITDA at a similar level. There may be some basis points impact, but not in a big way.

Okay. Got it. So the price increase which has happened until now in diesel, around INR 4 or so plus the INR 1 today. So that is not having any real impact because that is basically more or less passed on?

Yes.

Got it. And sir, on tonnage terms, as you mentioned, one of the -- in your presentation with some of the customers has come back and now it's -- we could see -- so basically, what we had highlighted during the first half of the year has actually happened where at the end of the quarter, the loss in volumes have reduced and we have actually turned into the growth phase. So now how confident are we of getting this 7%, 8% volume growth or could it be higher or lower? Any risk factor to -- on either side of this? Or would it lordly be in the 7% based on what you are seeing?

No, the tonnage have been already concerned in the last year. This current year as well as last year because of some of the exercise what we have taken. But considering our service level, most of the customers are coming back. And also, we are adding the new customers. So for example, in Q4 year-on-year basis, our quantity around 17% of the quantity is contributed by the new customers year-on-year, I'm saying. And the less customer share is around and existing customer growth year-on-year is around 1%. So on a total of all days, actually, we are in a position to grow by around 3% in the volumes. So apart from whatever the less customers are there, we are getting the new customers quantity also better than them. And there is a volume increase from the existing customers. So that is given more confidence and moreover, even though if we achieve 7% growth in the tonnage, that despite is already there in the current year. We see on the full year basis that the tonnage decline is 7%. And predominantly, it is from the customers who are already know our services. They are already experienced with a VRL. So we are and because of this juncture of increase in the fuel rate, increasing the freight rate, again, definitely, they will come back to us. That's what we are hoping. The major share will come from them also.

Next question comes from the line of Gaurav Ghandi from Glorytail Capital Management.

Just one question. Sir, do you see any risk to the volume growth because of the Western DFC going live now? Some shifts might happen to the railway side. Do you see any kind of risk to the volume growth?

So DFC is directly related to the full color. So the commodity what we are carrying is not directly linked with the railway services. So that's the reason the impact of DFC will not be much on our commodity or [indiscernible] quantity.

Ladies and gentlemen, that was the last question for today. I would like to turn the conference over to management for the closing remarks. Thank you, and over to you.

Yes. Thank you once again to all the participants and your patience here everybody most of the questions related to about the recent trend in the fuel rates. So considering our network, considering our customer base and customers considering our -- the service to the multiple commodities in the industry, we are hoping that definitely, we can pass it on this cost to the customers and maintain the EBITDA margins in the range of around 20% plus going forward. With this, I wish to complete this call. Thank you.

Thank you so much, sir. Ladies and gentlemen, on behalf of Motilal Oswal Financial Services Limited, that concludes this conference. Thank you for joining us, and you may now disconnect.