Welspun Enterprises Limited (WELENT) Earnings Call Transcript & Summary

Good afternoon to all the participants on this call. Before we proceed to the call, let me remind you the discussion may contain forward-looking statements that may involve known or unknown risks, uncertainties and other factors. It must be viewed in conjunction with our business risks that could cause future business performance or achievement to differ significantly from what is expressed or implied by such forward-looking statements. To take us through the results and answer your questions today, we have the senior management of Welspun Enterprises, represented by Mr. Sandeep Garg, Managing Director and CEO; Mr. Akhil Jindal, Group CFO and Head, Strategy; and Mr. Sanjay Sultania, Chief Financial Officer. We'll start the call with a brief overview of the past quarter by Mr. Garg and Mr. Jindal, followed by a Q&A session. I now hand over the call to Mr. Sandeep Garg. Over to you, sir.

Thank you, Mohit. Good day, ladies and gentlemen. On behalf of Welspun Enterprises Limited, I welcome you all for Q2 FY '22 earnings call. Hope that you, your family and colleagues are well and safe and are taking the necessary precautions. Let me start this call by welcoming on board Mr. Sanjay Sultania, the CFO of the Welspun Enterprises. For this call today, I will cover the key business highlights. And later, Mr. Akhil Jindal will cover the key financial highlights. The world is coming back to normalcy in the aftermath of the second wave of COVID-19. It caused not only business disruptions, but also emotional distress to a lot of people, including some of our employees. I would like to tell you the resilience of the entire team at Welspun Enterprise, which weathered the storm and is now geared for the opportunities and challenges that lie ahead. Let me quickly share key recent developments with you all. The total road asset portfolio of the company stands at INR 12,000 crores as on 30th September 2021. Of this, road HAM portfolio is 7 projects for approximately INR 9,870 crores. Out of these 7 projects, 4 projects of around INR 4,600 crores have achieved PCOD or COD. And another project of over INR 1,600 crores is very close to achieving PCOD. Additionally, one BOT project of about INR 2,122 crores is also at an advanced stage of the implementation. The outstanding road EPC order book stands at approximately INR 7,835 crores as on September -- 30th September 2021. The breakup of which is that approximately INR 5,300 crores in road and INR 2,535 crores in water segment. Let me start with saying that our performance in this quarter was impacted by 3 factors: firstly, the extended monsoon across most of our projects. That meant, the work were hampered for a longer period than our planned stoppages on historical trends. Secondly, most of you are aware that farmer agitation continues around NCR. This affected our construction activity on substantial length of Mukarba Chowk-Panipat road project. Happy to share that, despite these uncontrollable events, we expect PCOD shortly for the project. However, work on the balanced portion impacted by the agitation shall be taken up after the issue is resolved. Finally, progress of our project at Tamil Nadu, that is Sattanathapuram-Nagapattinam, SNRP, has been affected by the nonavailability of earth -- of sand for earth filling. This is a state-wise issue, concerning permissions from mining -- for mining the earth and has affected all the road projects in the state. The industry has made representations to the state government, NHAI and MoRTH on this matter. We are hopeful of a resolution. And in the meantime, we are tackling those portions of work such as structures, which are not affected by the earth. I'm happy to share that the company received PCOD of the Chikhali-Tarsod package 11 A Section NH-6 in Maharashtra namely, CTHPL with the completion cost of about INR 1,240 crores from NHAI on August 25, 2021. This is the fourth road of our HAM portfolio, which has achieved PCOD or COD. On the Aunta-Simaria project, which primarily consists of a bridge over river Ganga, access to the bridge from the Aunta side has been impacted due to the multiple tracks in that area. Happy to share that through the intervention of PMO, both NHAI and railways are trying to resolve the issue. Both the parties are actively addressing the issue, and we expect the resolution shortly. As an interim relief, authority has granted us 180 days extension of time, and we expect -- we have applied and we expect further extensions of time on this project. We are also pleased to announce that with regard to 6-laning of Varanasi-Aurangabad NH-2 project, our contract has come into effect following an agreement between NHAI and our client, Soma Indus, Varanasi-Aurangabad Tollway Private Limited. The contract to commencement date of the project is 30th September 2021. So we should see revenue from this project coming from this quarter onwards. The original contract value of this project is around INR 2,400 crores, including GST. Following the agreement between our client and NHAI on the handover of right of way of additional 44 kilometers, we expect further addition to our contract value. This matter is presently under discussion between us and our clients, and we will update you once this concludes. In the water segment, we have commenced execution on our first major order, namely the Rural Water Supply project at the UP State Water Sanitation Mission under the centrally funded Namami Gange platform. We have made substantial progress in the first stage of DPR submissions and approvals thereof. The details of which we have shared in our press release. We expect to conclude the DPR approval stage soon and the execution to pick up further in Q3. Coming to the outlook. Firstly, I would want to mention that considering the higher competitive intensity in the road bidding, we have been extremely selective in evaluating opportunities in this sector. However, on a parallel, we are evaluating feasibility of alternate business verticals, such as the railways to fuel the future growth. In this direction, we have submitted RFQs for 3 railway station development projects, which are currently under evaluation. Also, I would like to mention that with the impetus being provided by the government for drinking water access under the Jal Shakti Ministry, Har Ghar Nal se Jal scheme, we see a huge opportunity in this sector over the next 4 to 5 years. Welspun Enterprises will actively focus on projects under this scheme. We also continue to look at projects in sewerage treatment plant and water recycling. The company will also continue to explore inorganic growth opportunities through a measured evaluation of risk return parameters. Finally, I would want to say that having built a substantial portfolio of completed projects, the company will now explore opportunities for divestments in accordance with this policy of asset-like model and operational excellence. With this, I now hand over the call to Mr. Akhil Jindal for the financial highlights. Over to you, Akhil.

Thank you, Sandeep. Thank you, everyone, for joining in today. So firstly, I would like to just give you a small summary of the financial numbers that we announced last night. So clearly, the revenues, we have seen a 25% growth in the H1 to almost INR 624 crores in comparison to the corresponding period last fiscal year. Now this growth has been seen largely on account of the total work done during this quarter. Though the numbers could have been far more better, but due to the reason that Sandeep mentioned like monsoon continuity and certain four major events, the numbers are what they are, and we are hoping to recover quite a lot of this in the H2. The EBITDA for the first 6 months was around INR 75 crores. And if I compare it with the last year's number for the same period, this was almost the same at the same level. The cash paid for the first 6 months is around INR 41.8 crores. And again, because it's comparable to the last year's number around the same period, last year was a little more, but again, it's comparable. The important thing is on the balance sheet side, our gross debt, which was INR 500 crores -- which is, let's say, INR 500 crores today, is lower than INR 566 crores as we reported on 30th of June 2021. Our cash balance is a healthy cash balance of INR 343 crores compared to INR 95 crores as we announced in the June 30, 2021, call. And these are all the cash balance post the dividend payout of INR 22 crores that we did, which was attributable to the last financial year, but it has been done during this quarter. So the cash balance of INR 343 crores is after the INR 22 crores of dividend payment. On the investment side, I think, we are inching very, very smoothly to some of the projects which are about to get complete. Clearly, the portfolio is quite healthy. And in that sense, with 4 HAM projects already completed, fifth one likely to get complete pretty soon and the BOT project, which is also likely to see the PCOD, we would be almost done with almost INR 8,300 crores of the project completed out of a book of INR 12,000 crores. That means only 30% of our book, which, going in the next financial year, will be incomplete. Not a mean achievement for the company which have gone through all this -- all the disruption during the last 12 months, 18 months due to external factor. And as a result, if our 70% of the book is almost complete from an operation -- from an execution to operational zone, we feel quite comfortable around it. And exactly the -- this is what is also reflecting in our order -- in our investment position. So out of our total investment, we have nearly done close to INR 2,121 crores. The balance investment left is only INR 180 crores. And this INR 180 crores is also after we have taken a price increase cost circulation of nearly INR 50-odd crores in the SNRP project as per the NHAI guideline. So that means the significant substantial money that need to be invested is already invested. What is balance is only INR 180-odd crores, which is clearly much more -- I mean, our cash balance is INR 343 crores. And to that extent, this is quite adequate. We have also invested INR 92 crores in the water assets and other assets being INR 54 crores. Oil and gas is being INR 379 crores. And the road assets is -- the BOT is INR 575 crores and the HAM is INR 1,021 crores. So that's a breakup of INR 2,121 crores. We have provided the same breakup in our press release also that you have also seen by now. And if there is any question regarding that, we will be happy to answer that. So I think, all in all, we have kept the balance sheet at check. The rating has been kept at check. We have continued to be AA family rating. And in that sense, all our loans, everything are being serviced in time. Our total loan is INR 500 crores gross, out of which INR 475 crores is a long-term loan, and the INR 25 crores is the accrued interest and other effects, which also gets clubbed into the loan portion. So with this, I open the floor for the question answers. If there's anything that we have not covered in our opening statement, feel free to ask the question. The whole management team is here, including Sanjay, who has recently joined us. So a very warm welcome to you, Sanjay. And we all are available as a management team to be able to answer any of your questions. Thank you.

[Operator Instructions] We have the first question from line of Rohit from Antique Stockbroking.

Sir, my first question is on the outlook as such. Can you quantify what kind of execution are we looking at considering that one -- the first half, we have done INR 600-odd crores?

Rohit, just to answer this question, I'll answer it in two forms. If you see historically, last year to this year, we are about 25% higher. So we expect the same trend to continue into H2. To enable that, as you may be aware, that may not be a general knowledge, but we have -- we are strengthening the organization, in addition to the Sanjay, who I introduced on this call, there's Mr. Ajay Hans who has also joined the company as CEO and one, Mr. Neeraj Gupta, who has also joined the company as Chief Operating Officer's role. So we are strengthening the organization to ensure the execution becomes stronger. And we anticipate the trends that have been in past between the ratios of H1 to H2 to continue this year as well.

Can we say, Sattanathapuram, this will be a year where we can do at least INR 500 crore revenue and Panipat-Haryana, we can do INR 400-odd crore revenue?

So Panipat-Mukarba Chowk, I think, will be determined by primarily how the farmer agitation pans out. So there is a substantial work, which is stuck because of that. And in terms of the turnover, the primary focus would remain NH-2, which is the Varanasi-Aurangabad project, which is an EPC project and is absolutely ready for execution. So we are quite hopeful that, that is where the majority of turnover will come from.

Question is on the order inflow part. We were L1 for that MCGM project, 35 billion MCGM project. So what is the status over there?

So we have been engaging with MCGM on this particular project where we are L1. However, the -- we are still awaiting the final decision in the matter. We expect this could take a couple of months before the matter is finalized by MCGM.

Okay sir. Then the Kerala harmonious substitution, you were in talks with NHAI for a project, what is the situation over there?

We decided to stay away from it because of the delays that were taking place in the substitution and the appointed date having been taken for the project, so we were at risk of delay. So we decided to stay away from this.

Sir, in the last call, I believe, because we have had a conversation about the -- ramping up the execution to INR 3,000 crore kind of number by the year next because for the order backlog that we have in hand and the deadlines to execute it, these numbers are anything but inevitable. So what is the outlook now as such for next year? I'm not talking about this year, maybe this was a difficult year. Maybe next year, are we geared up?

So we have a very healthy order book to achieve that number. Obviously, the -- we are reasonably confident that COVID is behind us. And hence, we should be in a position to improve our execution abilities going forward with a healthy order book.

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

Yes. A couple of questions. One for last time I only asked about the run rate because you mentioned that INR 3,000 crores was a run rate. And you said Q3 would be INR 600 crores what you expect. Are we on track? Or do you think we are -- we will not go to INR 600 crores?

So to answer the question, the situation is that the monsoon is extended right now. So there will be certain challenges. As you know, even in the October, North as well as in the South, the monsoons have been extremely heavy. It also impacts our work on the river Ganga. So there is going to be some challenges. Hopefully, the monsoon is now behind us, and then we should be able to ramp up. But obviously, the October month has seen challenges continued of the monsoon. So that's going to impact the run rate, for sure.

Somehow, I think, we have been promising numbers. We have been telling the future outlook call-by-call every time, and it's not getting reflected on performance. Like even this number, I think, H1 of last year and H1 of this year is not comparable because the Q1 last year was complete lockdown. And if you have -- you are commenting that H1 of this year, you have shown a growth versus H1 of last year, whereas the comparable would be Q2 to Q2. And Q2, you have degrown. So somehow -- and even if you really see the number of road projects active, Aunta-Simaria, anyway because of conflict with railway, the work has stopped. Your Sattanathapuram-Nagapattinam, because of the adds we saw, the work is not going at a pace what we would want. Varanasi-Aurangabad, you just got the commencement date. So it looks like that we have nothing very active on the road project. And where we are reading almost on a regular basis, various companies getting awards, we are being very selective which we have been all along. Suddenly, our order book looks very dried off. Third, on the UP project, now election coming up, we don't know how the things are going to move there. So are we looking at dry spell in the future?

So look, see, just to answer your question, see, the reality is that certain orders, which were expected to start off, did not start off in the time. And this is an industry-wide phenomenon. In terms of the monsoon, I'm sure we have heard it from multiple sources that it is -- there are challenges most of the companies are facing. So to that extent, these are issues which are not controllable by the management. We don't try and control to the extent they are possible. In terms of your Varanasi project, you are right, it has just started. We have worked very hard to get to that project. So we are well prepared to hit the ground running. In terms of the water project, yes, there is likely to be an election, but I think with the orders or the DPRs that approved of approximately INR 800 crores for us, I don't think that, that should be a challenge going forward for the execution. However, these are the issues that nobody controls, we will have to deal with the situation as it comes.

To be very honest, sort of -- I think we -- I'm sure as a management, also you maybe relooking your strategy, but something needs to change because we have been missing our performance on a very regular basis, and that is getting reflected in our stock price. If you really compare any other infra -- good infra companies, their stock prices has moved pretty substantially, whereas we have degrown even on the stock price. And we are now valued actually lower than our net worth. So I think we have to think slightly out of box to see how the things can improve from here.

Sure, sure. It's a valid point. And as I said, we are looking at alternatives. We don't want to be seen playing in a very highly competitive environment. And whilst other companies' strategies are there, our strategy has always been that we will grow the company with the bottom line focus. So we are looking at alternates where we can create better value rather than just trying to create -- stick to a particular sector where competitive intensity is extremely high, and I'm sure you're investor in this sector, so you will be seeing these competitive bid intensity being extremely high, which is even a worrisome issue for the client themselves. So you would -- I would -- I think, as an investor, you wouldn't want to advise the management to look at alternative out-of-the-box solutions rather than get into the same race where everybody is racing on the only a price point being lower than the other one.

Also, I think, just to add on to what Sandeep has said, clearly, the challenge that are seen in the industry were visible to us. And that's the reason why there has been a bit of a lateral change of taking a good substantial profitable outside EPC work in the terrain and in the region that we know and also to get into the water. So if you see the last 2 events that has happened in the company, they have been in that direction because if the road sector is becoming over competitive and for no rhyme or reason that the migrator is charted once again, despite a lot of people suffering in the past and new people not learning out of those mistakes, the company shifted gear, and we have now got into the third-party EPC in the water. And also, as Sandeep mentioned, the railways is another part, which is being evaluated very, very strongly. So I know -- a few quarters has been some disappointment for both the company as well as for the market. But I think there has been always a thinking cap active, and we are trying to get into the zone where, let's say, all this profitability that we promised and what we think, gets delivered quarter after quarter other than just like a onetime event. So thank you for your feedback. We really appreciate that. And I just wanted to tell you some actions being taken by the company, and we'll keep on looking at such new avenues for further sustainable and profitable growth.

We appreciated that. I think also, let's accept that the COVID had a severest impact on this company. So...

It's not just COVID. I'm discussing even before COVID.

Sure. We'll have a relook at it, yes.

[Operator Instructions] The next question is from the line of Meet Vora from DAM Capital.

So sir, I had a couple of questions. Regarding our run rate of execution, we have an order book of INR 78 billion and our revenue run rate is close to INR 24 billion. So how soon do we expect it to ramp up or go to, say, for example, INR 30 billion?

So obviously, the attempt would be to ramp it up in the next year. We are strengthening the organization. Accordingly, we are diversifying into water. We have already diversified, and we are also getting into the EPC third-party projects. So all these should start reflecting the revenue growth as well as the profit growth in the next year is what our anticipation is.

Sure, sir. And on the road side, what is your outlook from NHAI in terms of bidding and tendering that they are going to carry out this year? And what part have we bid out? Or what are we expecting as a part of our order inflow from that?

So we have practically stayed away from bidding for last quarter -- couple of quarters, primarily because all the bids are going at price levels that we can't even sustain. So it's a considered decision until the competitive intensity does not ease up, we are going to stay away from the -- these projects because we genuinely believe that there is hardly any money to be made. And we are diversifying in terms of our offerings to the market in terms of the third-party EPC contracts, both in road and water as well as looking at adjacencies where we believe there's still substantial money to be made.

Okay. And so then, on the water front, what is your outlook, like, say, for example, in terms of our ordering scope and our ordering outlook? And the number, if you can give, what ordering inflow are we expecting?

So the first order inflow in the water side which we are working towards is the order of MCGM, which is a substantially big order of about INR 3,500-odd crores. And we are bidding for certain other projects in the water sector, and we expect at least one of those projects to crystallize in this financial year.

Okay. So a follow-up question on that, this MCGM order, which you are saying, has not yet been finalized, right? So when do we expect it to get finalized?

So I think we -- it will take at least a couple of more months for the MCGM to decide the order. So the process is on. However, we are not accounting that this order is under the belt. So without this order under the belt, we have a reasonably healthy order book of about INR 8,000 crores. So we are not extremely hungry for the project orders at this point in time.

[Operator Instructions] The next question is from the line of Rohit from Antique Stockbroking.

So my question is on the Lucknow railway station project. We were earlier bidding -- I mean, if I'm not mistaken, we are part of that bidding process. What exactly is the situation over there?

So at this point in time, the government is kind of restructuring how they will execute these projects. So we are under the prequalification stage. We believe that we will get prequalified and we'll participate in the bidding process. However, the government itself is now reconsidering about the entity that will take this -- these station redevelopment projects forward. So we will have to wait for the government to decide which entity takes it forward and then only can we go in for RFP.

How much do you want your balance sheet to have exposure to that particular segment?

The -- so we will want to first look at the final concession documents that they are coming up as the part of scope of development that they will participate because this is something which is evolving at this point in time. Once we know the concession agreements that are being finalized and the real estate component and the station development component as to how the split is will be the exposure that you would want to take on our balance sheet.

Sir, one more question on the oil and gas front. Considering the prices that we have seen right now, is there any relook into that oil and gas assets as such? What is the status over there?

So oil and gas, as I said last time, we expect the -- we are right now evaluating the reserves certification processes on so that we know what the results are and how the results are going to behave, so that particular action is on. The situation is that post-December, we will come up with a field development plan if this is something which is the way that we decide to move forward and that will determine the next actions on oil and gas. Happy to share that we are in a healthy position in terms of that particular sector. We expect the results to be better than what we originally estimated.

And sir, finally, my question comes back to the asset monetization path. You have stressed this point today as well and earlier as well. If I'm not mistaken, you were earlier planning to do some refinancing of the expensive loans for or maybe do some structuring within the PCOD assets and then bring them out for monetization. So what stage are we in all those places?

Yes. So Rohit, if I may address this, the refinancing is something that goes on continuously. So for example, we completed the 2 PCODs refinancing. So as and when the project achieve PCOD, we start talking to the banks and by the time the first annuity comes, the rating would have happened and the refinancing would have happened. So it normally takes around 2 to 6 months' time from the PCOD date. So all the projects, which have achieved PCOD, they're -- they've been refinanced. And -- but for the Chikhali-Tarsod project, which has got recently commissioned, there, we are in discussion with our lenders. And very shortly, our target is to get a refinance within this calendar year, probably by December itself. And as far as the top-up loan is concerned, at a company level, we are being ultra conservative and not drawing the top-up loan, although it's sanctioned by NHAI and also it is being, let's say, sanctioned by the bank. So both in GSY and CGRG, the 2 projects where we achieved PCOD last year, and we did the refinancing and the entire work, let's say, by March, the top-up loans are sanctioned, but we have not yet taken the disbursement of them. That is something which is pending at our end. And we would like to wait and watch till we draw that top-up loan. As far as the monetization is concerned, now we have a substantial assets portfolio, the whole bouquet, where we have 5 assets, as I mentioned to you, 4 completed, one about to get complete. So almost INR 6,200 crores on the HAM side. And another BOT project, which is, as Sandeep mentioned, around the corner for the PCOD. So together, INR 8,300, INR 8,400 crores as the project cost is something that is now available to us to be offered as a platform, and we are going to be in active dialogue with the prospective bidder because this is a size which attracts the right kind of partners, right kind of investors. Selling the small asset one by one is not something that is very prudent. But we have realized that now since we have almost over INR 1 billion as a site to offer, clearly, we can attract the serious and, I would say, larger players. And to that extent, we are hopeful that by the end of this financial year, we would be -- definitely be in a position to sign the definitive agreement, if not receiving the money by March. So this is our endeavor. We've got good 5 months to work on. The team is very seriously working on all the fronts. And I believe that we are in good dialogues with some of the prospective buyers. And we would have some news to share with you, let's say, in the quarter 4.

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

Sir, on the monetization part, are we looking to keep some stake in that entity or you're looking to offload a very large stake and be a minority in that particular asset monetization plan? Or can you please comment on that?

I think our preference, Mohit, will be to do the 100% exit that may be allowed by NHAI, it may be allowed by the regulator. Wherever the regulator doesn't allow an exit because of some time limitation, we might have a structure where we may end up holding it for the time being with a clear route that they would be 100% exit as and when allowed with the regulator. This is in line with our well laid out policy for the last 3 years that, as a developer when the role ends and the project is operational, we would like to monetize them, we would like to sell them 100%. And as I mentioned earlier, now with the substantial assets bouquet, we are in a better position to offer it to the market.

Sir, with $1 billion, I think, inv bid is a real possibility. So are we exploring that route or not?

Inv bid is also one of the possibility which you have evaluated. But I think our preference would be, again, to give it to the investors who either have an inv bid or are planning to form their own inv bid and it could be an inv bid rather than us sorting our own inv bid and then -- well, inv bid then if we do ourself, it would not be 100% monetization, as I mentioned to you earlier. So to that extent, I think, the preference would be to look at the third-party investor rather than shooting our own inv bid, though we have evaluated that option also internally.

Sir, on the EPC side, as you said that you're trying to build capabilities or trying to bid in the areas where you are not there. Are we building capabilities in some of the newer areas and which are those areas? And have we already -- have you hired a team or something to build those capabilities?

So as we said, we are looking at alternate transportation in other areas. There's definitely railways as we've talked about. And we are looking at all the adjacencies where we believe that there is -- the skill sets are transferable and we need our smaller teams to build up. However, we are building up the team on the sector of railway for sure.

And sir, does DOT or BOT makes sense for you? Or do you think it's not for us?

So BOT, there is something that we will look at it. However, we are a bit skeptical about the greenfield BOTs. So we would look for something which has started the background. So as you know, MCPTRL, Mukarba Chowk-Panipat is a BOT toll project. And that's something which synergizes because that have enough history of tolling.

Sir, my question was with respect to -- of course, there are a couple of NHAI bids expected to come in this fiscal on the BOT space. TOT, of course, there is a large -- there are at least 3 or 4 bids that are open right now. And then there's Ganga Expressway. Of course, this is a greenfield -- complete greenfield. So do you think in the priority in your basket fit, does any of this fit into your opportunity size? Or would you like to participate in those bids?

So I am -- I we will definitely look at the NHAI BOT projects to ascertain the risk and reward profile. And if it makes sense for us, we shall try and attempt those projects. I don't think TOT is -- TOT synergies the asset-like model. So we will stay away for us at least at this point in time from TOT. So coming to the greenfield BOT projects, that's one line we need to be very extremely cautious about because there are no histories and then we are taking estimate on how much of traffic will get diverted on those roads, which becomes a very difficult assumption and it would go wrong tremendously. So we think we are -- we are skeptical about it, but we keep on looking at those opportunities for sure.

And sir, last question, sir, on the time line for the EPC work on the EP JJM are we, say -- I think, we won this order, I think, a few months back. And it looks like there is no execution as of now. So when do you expect the execution to pick up? And is there a risk that the UP election will delay the work? And related question is, are there JJM contracts open in the entire country at this point of time where we would like to bid?

So two things I would want to say. Number one that the process itself of the UP JJM projects was that they will have impanelment, and then we needed to create DPR, which will finally get approved, and then the project will come into execution phase. So happy to share that the DPR approvals has not taken place in the last 5, 6 months. And the projects are now in the executive shape. I do not expect any adverse challenges on these projects during the phase of election because it's for the good of the masses. And I think it's a social project. So we expect the social environment and the governments will support this through the election phase. However, we would see as it will evolves. The third point that you said was that are we going to look at other states. For sure. Where we feel that the projects are a substantial in nature, we will look at those projects. We cannot be executing very small value contracts. That's something that we do not participate in.

Sir, my question was, are the large tenders in JJM available at this point of time? And do you think the H2...

There are -- Odissa is coming up, the MP is coming up, Rajasthan is coming up. So this will be -- Maharashtra is coming up. So there are enough. And this is going to be across the pan-India rather than specific to a state platform.

That was the last question for today. I would now like to turn the conference over to the management for their closing comments. Over to you, sir.

Thank you, everyone, and I really appreciate your participation in this investor call. I can assure that Welspun will continue its journey of operational excellence on an approximately INR 12,000 crores of portfolio. We are now focused on value unlocking through recycling of the capital. I thank you for the questions. And if there are any queries, you may please -- unanswered, please feel free to get in touch with our investor relationship team, who would be happy to respond to your questions. Thank you, and good day.