Welspun Enterprises Limited (WELENT) Earnings Call Transcript & Summary

On behalf of DAM Capital, we welcome all the participants to the Q1 FY '22 earnings call for Welspun Enterprises. From the management side, we have with us Mr. Sandeep Garg, Managing Director and CEO; and Mr. Akhil Jindal, Group CFO and Head, Strategy. We will start with a brief update for the quarter and then proceed to the Q&A session. Over to you, sir.

Thank you, Mohit. Good day, ladies and gentlemen. On behalf of Welspun Enterprises Limited, I welcome you all for Q1 FY 2022 results con call. I hope that you and your families are keeping well and taking adequate care. On this call from management side, I have with me Mr. Akhil Jindal, Group CFO and Head, Strategy. As we continue to sail through these unprecedented times, we at Welspun are taking extreme caution and following higher standards of hygiene and safety across all our locations. And in order to create awareness and protect our employees, additional efforts have been implemented. I'm thankful to all of my colleagues for rising to this challenge and ensuring business continuity. I'm sure that these times will bring along new learnings and would shape us to emerge as a stronger and more resilient organization. In this call, I will cover the key business highlights and later, Akhil will cover the key financial highlights. Now let me quickly share key recent developments. First, I would want to cover the order book as on 30th June 2021, which stands at approximately 9,000 -- approximately at INR 8,000 crores. Our current HAM order portfolio stands at 7 projects worth about INR 9,870 crores, out of which 3 projects worth nearly INR 3,400 crores had achieved PCOD or COD, and others are in advanced stages of implementation. Additionally, we have one BOT project of INR 2,122 crores, which is also in advanced stages of implementation. In an aggregate, the total portfolio of road stands at approximately INR 12,000 crores as on 30th June 2021. In addition, we have an EPC order of INR 2,366 crores, thus bringing the outstanding EPC order book as on 30th June of 2021 at approximately INR 8,100 crores. I must clarify that this order book excludes the Kozhikode Bypass HAM project, which, at this point in time, the Harmonious substitution for which has not taken place as NHAI has taken certain stance, which may be detrimental to our interest. And hence, we are evaluating our decision on this project. To give you the brief about the split of INR 8,100 crores of order book, approximately INR 5,560 crores is from road sector and about INR 2,540 crores is from water segment. I would now want to cover the key updates on our road projects and water projects. The first project that I would want to cover is Delhi-Meerut Expressway, Delhi section. It's a HAM project from NHAI, the 14-lane expressway. The completion costs for the project stands at INR 896 crores. The balance annuity that we need to receive for this project stands at 4,072 -- sorry, INR 472.9 crores. The current outstanding debt stands at INR 389 crores at a rate of 7.82% per annum. I would want to update the current status that we have received the sixth annuity of these projects in accordance with their payment schedule. The second project I would want to cover is Chutmalpur-Ganeshpur and Roorkee-Chutmalpur-Gagalheri or normally called CGRG project. It is another HAM project under NHAI AGs. The project is both in UP and Uttarakhand. The PCOD for the same project was achieved on 5th of August 2021.

2020. PCOD was achieved last year. Sorry.

Yes. Sorry, my apologies, 2020. I stand corrected. The estimated completion costs of the project is INR 1,108 crores. The project has been financed at 7.75% for the debt, which stands at INR 484 crores, and the balance annuities receivable stand at INR 654.5 crores. For this project also, the first annuity has been received in April 2021 as per schedule. The third project that I would want to cover is Gagalheri-Saharanpur-Yamunanagar, or GSY. This is an adjoining project to CGRG project. This project is primarily in UP and Haryana. The PCOD for this project has been achieved on 31st October 2020 with an estimated product competition cost of INR 1,388 crores. The debt for this project stands at INR 608 crores at 7.75% per annum, and the balanced annuities receivables stand at INR 816.7 crores. The first annuity of this project has been received in June 2021. The fourth project that I would want to cover in the road is Chikhali-Tarsod in Maharashtra. This is another HAM project from NHAI. It is on NH-6 in Maharashtra. The bid project costs, along with the estimated escalation stands at about INR 1,238 crores. At the current moment, the project has achieved progress of more than 90%, which is the fifth milestone under the concession agreement, and we have applied for PCOD for this project, which we expect shortly. The fifth project that I would want to cover is the PWD project in Maharashtra on HAM basis, which is in Amravati district of Maharashtra or we normally call AM2. This is a project of upgradation of state projects to 2 laning with paved shoulder road. The project's cost with escalation is expected to be approximately INR 1,620 crores. The physical progress of this project stands at about 80% at the end of Q1 FY '22. We have, under the COVID provisions, we have received an extension of time of 6 months for this project already. We expect the project to be completed ahead of schedule. The sixth project that I would want to cover is Aunta-Simaria, a project -- once again, a HAM project from NHAI. It is primarily a Ganga Bridge project Approach Road. The bid project costs, along with the escalation, is estimated to be in the range of INR 1,346 crores. The physical progress of the project is about 28% at the end of Q1 FY '22. Here again, we have received an interim milestone -- interim extension of time of 6 months has been granted by NHAI. The seventh project on growth side that I would want to cover is Sattanathapuram-Nagapattinam, or SNRP project. As the project was originally budgeted on a basis of 4-lane road project and 6-lane structure. However, at the time of appointed date in 5th of October 2020 NHAI changed the configuration to 4-lane road project and 4-lane structures. The negative change order for this reduction in the width of the structures has been estimated by IE to be approximately INR 29 crores. And accordingly, the bid project cost which was INR 2,004.5 crores is forecasted at as bidded level at INR 1,976 crores. And with the escalations, it is approximated to be approximately INR 2,272 crores. We have received the mobilization advance for this project, the second tranche of the same has been received. The last road project that I'd want -- the PPP project, last road project that I would want to cover is Mukarba Chowk-Panipat, or MCP project. It is a BOT toll project, which we acquired from Essel. The project is acquired through a process of harmonious substitution in June 2020. The original project cost was estimated to be INR 2,122 crores, out of which INR 1,593 crores was balance to be incurred to complete the project. At the end of Q1 FY 2022, the physical progress of the project stands at about 74.1%. We have requested -- we have applied for the PCOD for this particular project, and we expect the PCOD to be awarded soon. Coming to the water projects or I would want to say UP project. I would want to brief about the UP State Water Sanitation Mission Project, which was awarded to a joint venture between Welspun Enterprises and Kaveri Infraprojects Limited with 70% share in the joint venture of Welspun Enterprises and it being the lead partner. This is a bid with the successful bidders and bundled for awards for 2 years with projects being evolved after the DPR is submitted and approved by the client, hence, the value of the contract evolves as the CPRs are approved. The project entails the design, preparation of DPR, construction, commissioning and operation of the project for 10 years post completion. We have been allotted 2,544 projects. The originally estimated contract value for EPC phase or the construction phase is estimated to be INR 2,500 crores, excluding O&M and GST. At this point in time, we have submitted 434 DPRs, out of which 119 DPRs have been approved. Coming to the outlook of the business. On the road side, there are about 20 HAM projects of NHAI, which are totaling to about INR 33,000 crores. However, due to the relaxation and prequalification announced in the road projects, we are witnessing an increased competitive intensity, both in terms of number of bidders, which are higher, as well as aggressive price bid. We thus are being very selective in our evaluation of the opportunities and bidding for the road sector. We are also evaluating opportunities in the adjacencies like railways. And accordingly, we have recently participated in a Railway Land Development Authority, or RLDA, RFQ for redevelopment of Lucknow railway station. Our submissions are under evaluation at this stage. On the water side, I would want to brief that we see a huge opportunity in the scheme of Har Ghar Nal se Jal scheme, which is targeted to provide drinking water access to all by 2024. We see a potential of almost INR 6 lakh crores over the next 4 years in this segment alone. And WEL wants to focus on these projects and will actively participate in the bids. We will continue to explore inorganic growth opportunities through measured evaluation of risk return parameters and also continue to pursue an asset-light model while focusing on operational excellence and proven risk management. With this, I now hand over the call to Mr. Akhil Jindal for the financial highlights.

Yes. Thank you, Sandeep, and good afternoon to everyone on this call today. Many thanks for being a part of our journey. I would just like to briefly touch upon the financial numbers, which were published yesterday a little late in the day. So to that extent, if anyone has not got a chance, I just want to repeat the key highlight numbers. Our revenue was up by 97.7% on a Y-o-Y basis, which is around INR 344 crores. Clearly, the last -- last year, same period was heavily disrupted by COVID. We also had some effect in the first quarter this year, but nevertheless, the numbers are much better than the last year. The Q1 EBITDA is INR 41.4 crores, the total EBITDA INR 41.4 crores, then this is also up 50.4% on a Y-o-Y basis. The EBITDA as a margin percentage is around 11.7%. Now this is a little muted than what we plan internally and also what we try and achieve due to some orders which were executed in this quarter, which had a little lower profit margin. But we -- on an overall basis, we are pretty hopeful that in a year's time, we would be in and around 12% plus mark on the overall EBITDA, as we have always delivered in the past. The cash back of the company in this quarter was around INR 23.5 crores. Now these are all additions which are happening in the company for the future growth. So there's just a Q1 PAT INR of 23.5 crore, which was there in the last quarter. Now on the investment side, because we have 2 models as you would know, one is the EPC model, which Sandeep touched upon on each and every project. On the investment side, we are happy to share that most of our projects had been fully funded, and we have nearly achieved financial closure or rather the CODs and the PCODs on the project. So that means a significant amount of money has already been invested. For left to be invested going forward is INR 207 crores, all in all, INR 160 crores being on the road side and INR 39 crores being on the oil and gas side. While we talk today, our total invested -- or the investment book, if I may use that word, is around INR 2,035 crores, largely to the HAM projects for around INR 1,000 crores, road projects are around INR 524 crores, oil and gas being INR 361 crores, water BOT being INR 94 crores and other assets being INR 54 crores. The total asset size that we have on the investment side is over INR 2,000 crores today. And naturally, as we finish more projects, mostly within this financial year, we are also going to liquidate many of these at the right time, at the right valuation. So many of this INR 2,000 crore investment will also like to get freed by the end of this year and the beginning of next year. So I think at a balance sheet side, our net debt is roughly around INR 471 crores. Now this is a little up than the previous quarter, where we were INR 227 crores. So clearly, most of the money that is going is in the investment and completing the projects. We have little extra working capital also during this quarter, primarily on account of some payments from PWD and from GST and from NHAI. So that means the net current assets have gone up from INR 50 crores, which was as on 31st March '21, to around INR 224 crores in June. Now obviously, we have not been drawing our limit for the short-term debt, which has drawn at INR 97 crores in 31st March has remained more or less the same at INR 90 crores on 30th June. So clearly, most of the net current assets that are funded from INR 50 crores to INR 224 crores has been funded out of our own net cash surplus. And to that extent, our cash and cash equivalents have come down from INR 375 crores to INR 95 crores. But Clearly, we have a lot of room for drawal of the facility as and when we require. And our investment cycle is also nearly over with just INR 200 crores to be invested in the balanced project. So there is no need for raising any further money in Welspun Enterprise level. So all the short-term assets that we have got are -- they can be funded by the short-term assets, short-term role, and all the long terms are fully funded, as I mentioned to you. So to that extent, I think we are -- the company is well levered, and our net debt-to-EBITDA is only going to improve from here on. Our net debt to equity is quite comfortable at net worth of INR 1,840 crores and our net debt of around INR 470 crores you can imagine it's almost like around 30% leverage, which is very low for our infrastructure zone. But I think we are happy with that. And also, the CARE has restated our rating after our numbers at AA. I'm sorry, not CARE but the Brickwork has restarted our rating at AA minus, which makes us one of the few companies in the infrastructure zone to have a rating in the AA family. And I think L&T and I think one or two more companies. So that means our financial acumen over the last 2 to 3 years has been well understood by the rating agencies and also the lending community. Some of the loans that we've raised are at a very fine price, as Sandeep mentioned, at 7%, 7.25% for the project like AM2, 7.25%, and even for the HAM projects at the GSI and the CGRG at 7.75%. So as we complete more and more of these projects, the interest rates are only going to come down. Because eventually, once the CODs are also achieved, our rating will migrate from AA family to AAA naturally. And that will bring the cost of borrowing from 7.75% to under 7.5%. I would imagine 7.45% to be precise will be the journey from here on the second quarter. That is something that we would like to achieve. By the time we have another call after the second quarter, the completed projects should be under 7.5% is what our internal aim is. So with this, I open the floor for the questions. If anyone has a question, please feel free to ask. We will try and cover as much as we can during this call. Should any question is still left unanswered you can always reach out to our internal IR team and really happy to answer any of your pending questions. Thank you very much. And moderator, you can open the floor for the question now.

[Operator Instructions] The first question is from the line of Rohit from Antique Stock Broking.

Sir, given the current situation that we have moved from a stressful Q1, what is that normalization process looking like? What is the execution that you are expecting in this particular year itself?

I think whilst the COVID, too, has impacted us to some extent in the Q1, and it's -- the impact is now [ underway ], the challenge is that we do not know how the third wave will play out. So in these turbulent times, it will be incorrect for me to give a forecast for the -- how the whole thing will pan out in this financial year. However, if the order book is to be recognized of about INR 8,100 crores, which gives us a clear visibility for about 3 years, we would expect the execution to be pro rata over the next 3 years. So that would be the kind of numbers that we pan out, but I would refrain from giving a guidance on that.

Sure, sir. My second question would be more on the order inflow part. I understand we are having some negotiations with NHAI on the Kerala-based project. You have also talked about some other projects where you see some competitive intensity from other players, with NHAI the likely threshold. What are these opportunities also as well and some of the railway projects, too? But in terms of a targeted order inflow, what is the number we have in mind?

So as you -- as I had covered earlier and I was going to repeat, there is a large project with MCGM for which we have opened L1, which in terms of EPC value itself is about INR 3,500 crores. If that certifies, that will be a very large order addition. My intent of this financial year is to add one more project. And then wait for the competitive intensities to ease off and then gradually move to a scenario of one project every quarter kind of order flow for the next year. So this year, our target will be to add 1 more project, at most 2 projects.

Sure, sir. And finally, if I may ask one more question. This has more to do with the UP-based project and the both UP-based EPC road project as well as the water project. What is the execution time line? As in what gross percentage of orders will be executed this year and maybe the next year and so forth? What is the life cycle of these projects?

So the life cycle of these projects is that these projects are supposed to be completed 24 months after the DPR are approved. As of now, as we speak, we have approximately about INR 950 crores worth of contracts DPR gave and issued to the client. So within the 24 months from now, we expect all these INR 2,500 crores worth of orders to be executed.

Just to reiterate that point, 70% is the executable portion, which is recognized as a part of order backlog, this INR 2,500 number?

Sorry, I couldn't get your question. Could you kindly repeat?

Sir, the follow-up on this water project that you had a JV partner with 70% share, if I'm not mistaken. So this INR 25 billion, INR 2,500 crores outstanding order backlog that you have with this project is your JV share in that project?

So just to clarify that all the EPC work for the project will be delivered by Welspun Enterprises. The JV partner is as a -- in the JV 30% equity. But however, they are not going to do physical work. Physical work is going to be executed by Welspun Enterprises only. So they practically are technical partners.

[Operator Instructions] The next question is from the line of [ Ajay Luthra ] from JM Financial Service.

This order that you talked of INR 3,500-odd crores where you have become L1, what is -- by when do you expect to get the order or by when could that get finalized?

So this is a large value order, which is where we are very much higher than the original estimate of the client. So we are currently in process of discussions with the client. So we are not saying that this order is under the belt. We will have some clarity in the next 60 days about this project, which way this project is moving ahead. The validity of this bid is up to December 2021, which is the final date by which we will know the outcome of this project.

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

Just wanted to check because we have unexecuted order book of around INR 8,000 crores, which has to be executed in say, 24 to 30 months. So average, it looks like it's INR 3,000 crores per annum. So which quarter you expect to do at least INR 600 crores type of turnover?

So if all goes well in terms of the situations which are beyond our control, we expect in the Q3, the turnovers to rise to that level or there around.

When you say the factors which beyond your control, is related to COVID or you're talking about NHAI road, land availability or other stuff also?

So I think the only thing that we are referring to, it is primarily the COVID or similar events like there are certain events like farmer agitation, which are way beyond control of NHAI and the concessionaire or the contractor. So events which are beyond the control of the authority or the concessionaire is what I'm referring to.

So the 2 large projects in this INR 8,000 crores is your Varanasi-Aurangabad and your Tamilnadu project. So are we all geared from all the approvals and from our own perspective to start booking revenue or are still some more approvals required there?

So in terms of the Tamilnadu Sattanathapuram-Nagapattinam road project, we have -- we are fully mobilized on site to start recognizing revenue from that project. So all adequate approvals are in place. In terms of the Varanasi-Aurangabad Road project, the approval from NHAI in terms of the deal between the concessionaire and NHAI, it has been approved. So all approvals in terms of the project to start are in place. We expect the project to start somewhere in September 2021. And then we will be in a position to start recognizing revenue for that one.

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

Good afternoon. Sir, 2 questions. Firstly, on the -- of course, we have -- we have included the Varanasi project in our order book. But Kerala one is pending, right? So what is the status of Kerala and how and when do we expect this to become part of our portfolio? And what is the hindrance -- what is the issue you are facing right now in terms of closing this deal?

So on the -- as I said, Varanasi-Aurangabad road project, all these issues between the concessionaire and the NHAI stand resolved, and we are quite confident that project would start generating revenue from September 2021. However, on the Kozhikode Bypass, which we were trying to take over through a process of harmonious substitution, NHAI has taken a certain position in terms of the levy of 1% on the existing concessionaire. And for the harmonious substitution and also that they will not consider extension of time at the kind of harmonious substitution. We are not confident at this point in time that we will be able to convince the client to reconsider these stance. If we fail to help NHAI reconsider the stance, we may have to rethink about these projects. So hence, we are not currently considering this project as part of our portfolio. So we will update the investors once the clarity emerges around these few sticky points of the harmonious substitution.

Sir, secondly, sir, do we have enough opportunity of this kind of harmonious substitution going forward? Do you think that we will be able to -- I'm talking about the opportunity set. Is the opportunity available to close more projects like this in this fiscal?

So the answer is there are -- let me answer. There are enough projects under distress for sure in the industry. But will they meet our return expectation for us to get into a mode of discussion of harmonious substitution? The answer is that we have not evaluated anything at this point in time, which meets our total return expectations. So if something comes through, we will surely evaluate them and raise if we should take over those projects or we shouldn't.

Understood, sir. And lastly, on the water projects, sir, how do you think UP, we haven't seen too many tenders on the block. Have you seen any more tenders from the states in the last few months? And do you think what kind of opportunity -- what kind of opportunity size available, especially in the next 8 to 9 months?

So in terms of water, I think there are substantive opportunity. I mean they may not be in the direct domain or states that you may want to participate, but we see substantial 11 orders by MBDA and Madhya Pradesh being considered at this point in time. So there are projects in Pune, which are being considered in the water segment. There are about INR 10,000 crores of water projects similar to the one we have in UP, in Madhya Pradesh. So there are a lot of water projects which are getting announced as we speak. But since these are some scattered agencies, they were not getting -- they will be -- they are not getting consolidated as a single number. So water as an opportunity offers a huge canvas, both in terms of the client base and in terms of the kind of projects that are available.

Okay. And sir, a couple of more questions, if I may ask. So are we still -- where are we in terms of monetizing especially 2 or 3 ATM assets as we speak? Is something on the cards we are considering right now? Are there something which you want to do in FY '23, FY '24, and you're not looking at it at all at this point of time?

I think it would be more like H2 exercise rather than FY '23 exercise. So as Sandeep mentioned, with 3 projects now operational and the annuities are getting received, timely annuities on each one of them. It's a matter of time that we complete our 2 more projects on the HAM side during this quarter. When I said during this quarter, means Q2 quarter. And at the same time, achieve PCOD on the one of the good projects. So with these 6 projects under our belt, all complete, operational, revenue generating, it's the right time for us to be visible in the market whether a platform deal than individual singular asset by asset sales because that doesn't fetch the right results. So clearly, it would be a H2, as I said, something that we would strive to achieve by the February, March of 2022 or if not in the beginning of the next financial year. You will see -- we will start seeing some of the exits from some of these completed assets.

Understood, sir. Lastly, sir, on this Lucknow rail and -- Lucknow railway station, can you please clarify what kind of opportunity there in terms of size and what kind of scope -- what kind of scope we have?

So this is the RFQ stage of the project where we are qualifying for the project. The opportunity exists for redevelopment of the station and the land around it. And as you know, the -- these are like investment projects, which -- these are like more like investment projects, which, based on the vision and design of the concessionaire, will determine the costs to be incurred and the revenue streams are identified. So it's a design, build and monetization opportunity. So each individual concessionaire will look at it differently. But to give you a ballpark figure, this will be in the range of INR 1,000-plus crores as a base any concessionaire will look at.

[Operator Instructions] As there are no further questions, I will now hand the conference over to Mr. Mohit Kumar for closing comments.

I think there are a couple of key people in the queue.

The next question is from the line of Rohit from Antique Stockbroking.

Sir, my question is more [ skewed ] -- a bookkeeping question. Can you just help us through -- there are some projects that we have got PCOD, but they are still having some exposure in the order backlog. So what is -- it's a miniscule portion, I understand, but what is the nature of that order? And will you be executing it in this fiscal?

So as you know, there are 2 kinds of things that are left out of the PCOD, certain areas or where client is not in a position to hand over the land or certain sections of the work, which cannot be completed due to the pained local constraints, they are listed separately under -- at the time of PCOD. And then those particular projects, actions are completed over the next few months or maybe larger period. So all these others of INR 10 crores, INR 12 crores represent those sections where, due to certain constraints, work would not be completed by the concessionaire. However, NHAI reserves its rights to ask the concessionaire to complete that project once the constraints are removed.

Sure. I mean, in [indiscernible], will there be any descoping or something that can come across?

I don't foresee that because whatever was still to be descoped has already been descoped. So when we say the bid completed project cost, the descoping sections have already been factored into that.

Sure, sir. Sir, my final question will be more on this oil and gas projects that you have current exposure. You also have some investments lined up. You were earlier planning to do a feasibility report and then do a subsequent value unlocking. What exactly is the status over there?

So to give you a -- I mean I had kind of addressed that last time as well, and that will repeat. So we expect the technical due diligences to continue between now and December of 2021. By the time we will have all the detailed investigation from the reports that we have got out, the PVT analysis that we are making on the resources available and also the inversion of the systemic records that we have and establishing a correlation. So this process will continue until about December and by that time, we will now be the vertical [ entity ] to certify the reserved scoped resources. And that is when we will have a clarity around the whole developmental model that we want to use for these projects. So that's when the clarity will emerge when actually we can brief you a bit better than more what we -- more than what we've already briefed you of.

The next question is from the line of [ Chandra Shekhar ], an individual investor.

Sir, mine is a more general question. So as we know that we have been following an asset-light model, so my doubt is, especially in these kind of situations when worldwide, we are facing a lot of constraints. So is it possible that when a lot of projects are lined up by government, so we'll face any constraint in the availability of contractors who have the equipment ready to be -- to construct or complete this bid? Like is it a risk that is there because of following this model? Or are we prepared, like, it is not an issue or is it not a risk at all? So that is my question.

Okay. Very interesting question. I'll address it in 2 ways. I don't know if that -- if you follow the bidding pattern in NHAI on EPC contracts, that most of the EPC contracts are going in the ranges of minus 15% to minus 25%. So what it tells you is that there is a huge amount of capacity of the EPC contractors who want to take up the EPC work. So I don't see that challenge that the capacity will dry up quickly. Second way I would want to address this thing is that there are certain key assets in terms of construction equipment that the company has acquired. However, they are, right now, available for us to be utilized on the projects and held for sale. However, those are available for us to augment any contingency that may come up on any of the projects or with any of the contractors. So we have played it in terms of mitigation plan, a reasonably well-balanced strategy there.

So sorry, sir, can I continue? So if in case, like, in future we are getting more and more projects, is it possible that we can augment it to meet the -- like to -- when we compare with other builders, other contractors -- sorry, other infrastructure companies which have already huge existing capacities, so is it possible to augment in a reasonable time? Is it not our -- it is not in our plan at all?

So let me say that this is not a preferred option. However, we are aligned to [ realities ] and we are aware as to if the business cycle moves to a particular direction, then we need to respond very quickly. The good thing is that we have a very healthy balance sheet, which allows us to very quickly move in a direction that we choose to move and we are not constrained like unlike most of the industry to be straddled with a situation that even if they want to move, they can't move.

As there are no further questions, I will now hand the conference over to the management for closing comments.

Thank you, everyone. I really appreciate your participating in this investor call. I can assure that Welspun Enterprise will continue its journey of operational excellence on an approximate INR 12,000 crores road order portfolio. We will remain focused on unlocking value through recycling of the capital at an appropriate time. The water segment, where we operate in EPC mode as well, we will continue to look at opportunities for value creation. I thank you all for questions. And if there are any further queries, you may get in touch with our investor relationship team, who would be very happy to respond to your questions. Thank you and good day.

Thank you very much.

Thank you.

Thank you very much.