Dilip Buildcon Ltd — Q4 FY26

Dilip Buildcon Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=l91i1BYSIfE Published: 15 hours ago

0:01 1 second Ladies and gentlemen, good day and welcome to the DIP Buildcon Limited Q4 0:08 8 seconds FY26 earning conference call. As a reminder, all participant line will be in listenonly mode and there will be an 0:17 17 seconds opportunity for you to ask question after the presentation concludes. 0:23 23 seconds Should you need any assistance during the conference call, please signal an operator by pressing star 10 on your touchstone phone. 0:31 31 seconds I now hand the conference over to Mr. 0:34 34 seconds Ashit Salyan from ATF factors PR. Thank you and over to you sir. 0:40 40 seconds Thank you. Good evening everyone and thank you for joining us today to discuss the audited financial performance for Q4 and FI26. I have with 0:49 49 seconds me Mr. Dendra Jin MD and CEO Mr. Rohan Suryawanchi head strategy and planning 0:58 58 seconds Mr. Sanjay Bansal the CFO Before we proceed I would like to bring to your attention that certain statements made 1:05 1 minute, 5 seconds during this discussion may constitute forward-looking statements. These statements are based on our current expectations, assumptions, and beliefs 1:14 1 minute, 14 seconds regarding future developments and are inherently subject to various risks, uncertaintities, and factors beyond our 1:21 1 minute, 21 seconds control. Such forward-looking statements involve both known and unknown risks, and we advise you to interpret them with 1:28 1 minute, 28 seconds caution. I will now hand over the call to Mr. Rohan Suryawanchi for his opening remarks. Thank you, and over to you, sir. 1:42 1 minute, 42 seconds Thank you and good evening everyone. Uh on behalf of the whole DBL family, I extend a warm welcome to all our 1:48 1 minute, 48 seconds investors and analysts uh to our quarter 4 FY26 earnings conference call. 1:56 1 minute, 56 seconds The financial results and investor presentation for the quarter have already been uploaded on the stock exchanges and we trust that all of you had the opportunity to go through them. 2:07 2 minutes, 7 seconds I'm very pleased to inform the all our partners that this time we've prepared a new presentation format which simplifies 2:16 2 minutes, 16 seconds how one should look at our company given the new direction that we have embarked on. 2:22 2 minutes, 22 seconds It talks about our past, our current status and where we are intending to go into the future. It divides the company 2:30 2 minutes, 30 seconds in three verticals. EPC, the MD vertical and the assets vertical. 2:37 2 minutes, 37 seconds Now all these three verticals have different role. 2:42 2 minutes, 42 seconds The EPC vertical is going to be the one building all the assets while the MDO and the asset business will continue to 2:50 2 minutes, 50 seconds give us long-term revenue visibility and profitability. 2:57 2 minutes, 57 seconds The reason why we have moved in this direction I have already inunated uh in the earlier calls. 3:06 3 minutes, 6 seconds However, it is very important for me to point out right now that this strategic direction 3:14 3 minutes, 14 seconds is very important for everyone to kind of uh pay attention to closely because by FY 29, we anticipate 3/4s of our 3:24 3 minutes, 24 seconds profits to be coming from long-term assets and only 1/4 to be coming from our EPC business. That is the scale of 3:32 3 minutes, 32 seconds ramp up that will happen in our asset business and the cash flows and profitability that it will provide along 3:40 3 minutes, 40 seconds with taking a line share in the profitability. 3:44 3 minutes, 44 seconds It also is going to give us a visibility of the next 15 to 50 years of cash flow visibility. As you are all 3:54 3 minutes, 54 seconds aware the EPC business only gives a visibility of 2 three years. 3:59 3 minutes, 59 seconds So having said that let me now give you highlights on the broader sector environment 4:06 4 minutes, 6 seconds before which I talk about the DB bill's performance. 4:13 4 minutes, 13 seconds The infrastructure sector continues to offer strong-term opportunities supported by sustained government focus 4:20 4 minutes, 20 seconds on roads, railways, and other uh sectors that we're currently involved in. 4:33 4 minutes, 33 seconds Now during FY26 the average monthly tendering activity for the overall infrastructure sector 4:41 4 minutes, 41 seconds by national and state governments put together remained healthy at rupees 1.4 trillion. 4:51 4 minutes, 51 seconds However, this awarding activity was a little sluggish 4:57 4 minutes, 57 seconds in terms of the initial FY26 target that the government had set. This was obviously on account of various state 5:06 5 minutes, 6 seconds elections, regulatory scrutiny and other administrative delays. 5:13 5 minutes, 13 seconds But we remain optimistic about the sector in the midterm and the long term given the government's 5:20 5 minutes, 20 seconds continued focus on building assets across the infrastructure vertical. 5:28 5 minutes, 28 seconds With all that positivity, there is also certain new time near-term challenges. 5:36 5 minutes, 36 seconds The ongoing geopolitical conflict and the elevated crude oil prices have led to inflationary pressures across fuel, 5:43 5 minutes, 43 seconds bitumen, transportation and other key raw material costs impacting margins across the infrastructure industry. 5:50 5 minutes, 50 seconds And in addition to this, the competitive intenticity intensity and bidding remains high in certain segments 5:58 5 minutes, 58 seconds while delays in project approvals, land acquisition and receable cycles continue to impact execution timelines. 6:07 6 minutes, 7 seconds However, despite these challenges, we believe the industry is gradually moving towards a more disciplined and execution-led growth cycle. In this 6:16 6 minutes, 16 seconds backdrop, we continue to focus on selective tendering by prioritizing highquality projects with better margin visibility, 6:24 6 minutes, 24 seconds balanced riskreward and strong counterparties rather than pursuing scale only. 6:32 6 minutes, 32 seconds We remain focused on maintaining execution discipline, strengthening operational efficiencies 6:38 6 minutes, 38 seconds and preserving balance sheet strength which we believe will help us navigate near-term volatility while positioning the company to benefit from long-term infrastructure opportunities in India. 6:50 6 minutes, 50 seconds Now coming to DBL's business performance, our performance this year must be viewed through the lens of the DBL 2.0 6:58 6 minutes, 58 seconds philosophy which we have shared earlier and spoken about in the presentation. 7:04 7 minutes, 4 seconds We have consistently communicated that our approach to order booking is selective. We are prioritizing 7:10 7 minutes, 10 seconds profitability, cash flow visibility and return ratios over pure topline growth. 7:17 7 minutes, 17 seconds Increasingly, we view our EPC business not just as a volumedriven profit center, but as a capital efficient execution and incubation engine. 7:28 7 minutes, 28 seconds This engine allows us to create longduration monetizable platforms across diversified asset classes. 7:38 7 minutes, 38 seconds I'm also very happy to report that for the FY26 DBL has secured total order inflows of 7:45 7 minutes, 45 seconds rupees 18,548 crores which is much higher than our original guided figure. 7:57 7 minutes, 57 seconds We had also communicated this that we have exceeded that full year order inflow guidance earlier but quarter 4 26 has further added to it. 8:11 8 minutes, 11 seconds Our order book today remains among the most diversified in the industry providing strong visibility across 8:18 8 minutes, 18 seconds multiple infrastructure segments without rely relying on any single one. 8:25 8 minutes, 25 seconds Our current build pipeline stands at rupees 80,000 cr plus across sectors 8:34 8 minutes, 34 seconds with optimum utilization of existing assets and a disciplined approach towards capital expenditure. The company continues to enhance capital efficiency 8:43 8 minutes, 43 seconds and deliver improved return on investments. 8:49 8 minutes, 49 seconds Now turning on to our mining vertical which is increasingly becoming an important driver of DBL's long-term earnings visibility and cash flow generation. 9:00 9 minutes Our core MD operations have continued to scale up steadily during FI26, beating our own targets in terms of production 9:08 9 minutes, 8 seconds and helping diversify a larger part of business away from the cyclicality of a traditional EPC business. 9:19 9 minutes, 19 seconds At the pachuada at the karmal mine quarter 4 production stood at 7.24 cr tons and cumulatively 9:28 9 minutes, 28 seconds fi26 production stood at 22.35 cr t t t t t t t t t t t t t t t t t t t t tons achieving full year production target. 9:39 9 minutes, 39 seconds Similarly, the Pashada coal mine continued its gradual ramp up with FY26 production closing at 6.37 million metric tons. 9:53 9 minutes, 53 seconds So on a consolidated basis, Dbill coal production for FI26 stands at 28.72 million metric tons. 10:03 10 minutes, 3 seconds Now we remain committed to achieving our annual coal production of around 57 million metric tons by FY29 10:12 10 minutes, 12 seconds which at its full capacity would represent a significant part of India's total coal output and positioning DBL as a critical 10:21 10 minutes, 21 seconds partner in the nation's energy security as production scales are further mining is expected to contribute 10:28 10 minutes, 28 seconds meaningfulfully to the company's IBITA generation and overall cash flow strength. Our 10:36 10 minutes, 36 seconds invit strategy continues to progress in line with the road map we had outlined earlier. Following the successful 10:44 10 minutes, 44 seconds listing of Anankam Highways Invit, we currently hold about rupes 1,400 crores worth of units in the Anantam highways 10:52 10 minutes, 52 seconds and around rupes 200 crores in the Shmam Invit taking the total value of init units on our balance sheet to nearly rupes 1,600 crores. 11:02 11 minutes, 2 seconds Now this has created a long-term platform for predictable distributions and structured deleveraging for the company. 11:12 11 minutes, 12 seconds We also remain on track to transfer the remaining ham assets in phases through through March 2027. 11:22 11 minutes, 22 seconds The next branch of 11 assets is expected to require less than 200 crores of incremental investment 11:30 11 minutes, 30 seconds while generating init units valued at around rupees 1,800 crores implying a net equity value creation of rups 1,500 to,600 crores. 11:42 11 minutes, 42 seconds Now while I'm explaining these other sectors, I also want to take this opportunity to debunk some commonly held perceptions about the company. 11:51 11 minutes, 51 seconds which we have also highlighted in the presentation. 11:55 11 minutes, 55 seconds The first perception is that we have made significant revenues from our state throughout our history or the past two decades. 12:05 12 minutes, 5 seconds However, the data suggests otherwise. 12:09 12 minutes, 9 seconds You would all be surprised to know that in the last 20 years only 10% of the total revenue that we have made has come 12:16 12 minutes, 16 seconds from the state government of MP while 90% has come from national government and other states. 12:27 12 minutes, 27 seconds Now this is a very big important perception that I'm trying to correct that we have been working mostly outside 12:34 12 minutes, 34 seconds our home state rather than in our own state. 12:39 12 minutes, 39 seconds Similarly, there has been a perception about our debt that has lingered since many years. And even though in the past 12:48 12 minutes, 48 seconds our debt might have been higher than our peer groups as we were in a cape cycle and in a growing stage, our debt position today is very comfortable. 13:00 13 minutes And besides that we have significant assets against it which was not the case in the past. 13:08 13 minutes, 8 seconds Now coming to our debt position outstanding debt as of March 31st 2026 13:15 13 minutes, 15 seconds stood at approximately Rs 1,800 crores at the standalone level and Rs 7,82 crores at the console level. 13:24 13 minutes, 24 seconds Now the console obviously is because we keep building these new assets and it's a temporary phenomena where as soon as we build the SPV uh and those are 13:34 13 minutes, 34 seconds completed we either sell them or we're going to put them into our in which so it's a temporary 2 three years thing 13:41 13 minutes, 41 seconds that we are going to do and it is all the revenues future revenues of those assets are tagged against that so it's a 13:49 13 minutes, 49 seconds very safe investment from that perspective now Against our standalone debt of rupes 13:56 13 minutes, 56 seconds 1,880 crores. Today we hold nearly 1,600 crores of inward units on the balance sheet. 14:05 14 minutes, 5 seconds Had we chosen to sell all these units, our net debt would have been roughly 300 cr or so. 14:13 14 minutes, 13 seconds But because we decided that we wanted to build a platform where we have cash flows coming in for the next 15 20 years, we have decided to retain them. 14:21 14 minutes, 21 seconds As we realize we are in a very comfortable position going forward and we have a very good order book as well. 14:28 14 minutes, 28 seconds Besides these inward units, let me also point out two assets that we already have. We also have about 1,000 crores 14:36 14 minutes, 36 seconds plus invested in under construction projects which will soon get transferred into the invit and generate additional init units of like I mentioned 1,800 crores. 14:49 14 minutes, 49 seconds Similarly, we also have a gross block of little le about 3,600 crores on balance sheet 14:59 14 minutes, 59 seconds which translates into about an 800 crores of net block. Now these assets are all debtree. These are all equipment 15:06 15 minutes, 6 seconds that the company uses and we have no debt against it. So while our only working capital debt is 15:14 15 minutes, 14 seconds shown, we have significant assets against all our debt. 15:21 15 minutes, 21 seconds And more than this, as we have already said, our agenda is to be a near to be a 15:28 15 minutes, 28 seconds net debt free balance sheet by the FY 28th. We are very confident of this because of the continued cash generation 15:35 15 minutes, 35 seconds from our EPC operations, our MDO operations and the growing income from our init holdings. 15:42 15 minutes, 42 seconds So it's a clear pathway that we see. 15:49 15 minutes, 49 seconds So overall FYI26 while it has was a relatively challenging year for the infrastructure sector 15:58 15 minutes, 58 seconds we believe it also marks an important transition towards a more disciplined and executionoriented industry environment 16:06 16 minutes, 6 seconds deliver with its diversified order book a steadily scaling mining operations and 16:13 16 minutes, 13 seconds a well- definfined inbit monetization platform along with continued focus on capital efficiency. We are structurally 16:21 16 minutes, 21 seconds positioned much better than before and as we move ahead our focus remains 16:29 16 minutes, 29 seconds firmly on discipline growth, execution excellence, balance sheet strengthening and sustainable cash flow generation. 16:36 16 minutes, 36 seconds Now supported by the long-term infrastructure opportunities in India and improving contribution from our own stable cash generating businesses 16:45 16 minutes, 45 seconds we remain confident in our ability to create sustainable long-term value for all our stakeholders. 16:51 16 minutes, 51 seconds Now with that I would like to hand over the call to our CFO Mr. Sanjay Bansson who would like to take you through the 16:59 16 minutes, 59 seconds financial performance for the quarter in greater detail. Thank you. Thank you Rohanji. 17:08 17 minutes, 8 seconds Good evening to all. I will now briefly take you through the key highlights and financial performance for the quarter and full year ended 31st March 2026. 17:20 17 minutes, 20 seconds During FI26, the company added projects worth 18,548 crores and completed projects worth 17:29 17 minutes, 29 seconds 2,812 crores. As a result, the company continues to maintain a healthy and diversified order book with strong 17:37 17 minutes, 37 seconds execution visibility across multiple infrastructure segments. On standalone basis, the revenue for FI26 17:46 17 minutes, 46 seconds stood at 7,5 cr as compared to 9,4 cr in FI25 reflecting a YI change of approximately 22.2% 2% negative. 18:00 18 minutes ITA for the year stood at 734 crores against 9003 crores in the previous year 18:08 18 minutes, 8 seconds representing a Yi change of8.72%. 18:14 18 minutes, 14 seconds While the profit after tax stood at 841 cr is against rupes 311 cr in fi25. 18:23 18 minutes, 23 seconds Now on console basis FI26 revenues stood at 8,984 18:31 18 minutes, 31 seconds crores as compared to rups 11,317 cr in previous year reflecting a y 18:39 18 minutes, 39 seconds change of 20.62%. 18:44 18 minutes, 44 seconds The consolidated IITA stood at rupees 1766 cr with an iita margin of 19.65% 18:51 18 minutes, 51 seconds 65% while profit after tax stood at rupes 1398 crores is against rupes 840 cr in fi25. 19:03 19 minutes, 3 seconds With that overview we are now happy to open the floor for questions. Thank you. 19:12 19 minutes, 12 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press 19:21 19 minutes, 21 seconds star and one on their touchtone telephone. 19:26 19 minutes, 26 seconds If you wish to remove yourself from the question queue, you may press star and two. 19:33 19 minutes, 33 seconds Participants are requested to use handset while asking a question. 19:40 19 minutes, 40 seconds Ladies and gentlemen, we'll wait for a moment while the question assembles. 19:47 19 minutes, 47 seconds First question is from the line of Shraan Shaha from Dalak Capital. Please go ahead. 19:54 19 minutes, 54 seconds Uh thank you sir. uh and congratulations on historic highest ever order inflow uh 20:02 20 minutes, 2 seconds for us 18,000 K plus and also good to see that uh the new presentation and particularly the MDO uh revenue 20:11 20 minutes, 11 seconds profitability that you have said uh which we were asking uh from uh so now uh couple of questions so first uh on 20:20 20 minutes, 20 seconds the on the MDO front itself uh so now we will be selling this on a quarterly daily basis the MB MDO revenue 20:27 20 minutes, 27 seconds profitability what we have said on the slide number 14 sure sir we'll be sharing it on a uh uh 20:36 20 minutes, 36 seconds quarterly basis and thank you for your feedback uh we understand you were asking for certain things but uh 20:43 20 minutes, 43 seconds strategically what the company felt that this was the right time now to talk uh in greater detail about 20:52 20 minutes, 52 seconds uh how we are planning to go ahead Yeah. Uh so couple of questions on the 20:58 20 minutes, 58 seconds MDO front. So uh is it possible for us to kind of a broader thought process in 21:06 21 minutes, 6 seconds terms of the kind of a one can say a guidance in terms of the broader the revenue and the margin given the we need 21:13 21 minutes, 13 seconds to still do a whole handling plant capex for CRML. So obviously the depreciation will increase. So how one can look at 21:21 21 minutes, 21 seconds after two years kind of a maybe a profitability or margin at at MDO level and the related is how we are we are 21:31 21 minutes, 31 seconds thinking to kind of monetize this from the investors perspective. So whoever holding uh DBL says how they will get 21:40 21 minutes, 40 seconds benefited uh through this the the significant profitability that we have and obviously the revenue visibility is significant. 21:50 21 minutes, 50 seconds Uh thank you Shamanji. I think that's a great question. Uh obviously uh as any analyst you would like to understand how this business will shape up and how the 21:58 21 minutes, 58 seconds profitability and the revenues will shape up. See the beauty about this business it's a very simple to sort of project uh kind of business because 22:07 22 minutes, 7 seconds every year by law we are supposed to do a contracted value uh and the pricing per turn that the government is going to pay for us is already set. So simply 22:16 22 minutes, 16 seconds what you have to do is as you keep on expanding uh our volume that we're providing every year if you just do a 22:24 22 minutes, 24 seconds simple mathematical number that okay this year if DBL did this much so now CRML you'll know that the rate is around 22:31 22 minutes, 31 seconds uh let's say I think about 500 or so is the rate atl and about 1100 rupees t is a rate at pachala so the simple math 22:40 22 minutes, 40 seconds that you'll have to do is just do it a multiple into how the next three years because By FYI 29 we will achieve 22:48 22 minutes, 48 seconds fullear target of uh 50 million metric tal and while Para is already working at 22:55 22 minutes, 55 seconds uh at the same 7 million metric tons per year. Uh now if I talk about FY27 we're 23:03 23 minutes, 3 seconds expecting about 33 35 23:07 23 minutes, 7 seconds or or or 30 or 13 plus in in that and uh 23:15 23 minutes, 15 seconds than that it's in and similarly the year after that we are targeting upward of 40 million at 23:21 23 minutes, 21 seconds CRM uh and uh then 50 like I mentioned in the fifth year now 23:30 23 minutes, 30 seconds Para like I said will be same Potangi in the next 3 years we'll be setting it up again as per contract we've defined how much we'll be doing in the next 3 years 23:39 23 minutes, 39 seconds uh earlier in our earlier presentation as well so the mining plan will be kind of flowing through that way uh with the EPC business and the mining 23:46 23 minutes, 46 seconds uh business will flow in that so put together and I think it's a safe sort of way assumption to take that you take similar profitability for your sake of 23:56 23 minutes, 56 seconds uh making the model that that could be how you can sort of uh do the mining sort of revenue separately and how the 24:05 24 minutes, 5 seconds profitability will look now Hello. 24:17 24 minutes, 17 seconds So yeah, sorry. So what we anticipate in FY? So from the current 1 1600 crores of 24:24 24 minutes, 24 seconds revenue in this year we expect uh revenue to increase to about uh 2500 24:31 24 minutes, 31 seconds crores or so in FI27 which will further increase to about 3,000 24:38 24 minutes, 38 seconds plus 100 crores in FY28 and eventually I think in FI29 we should be somewhere in the range of around around 4,000 crores 24:46 24 minutes, 46 seconds of revenue coming from the sector. So that's how it will kind of play out if we were to do just a simple math of the 24:53 24 minutes, 53 seconds uh the multiplication of the total tonnage and the rate that we're at. So that's how it will work out. Now coming to the second part that you answered. 25:03 25 minutes, 3 seconds See all these are subsidiaries held completely under the delu and obviously we would want to ensure that our shareholders always get maximum returns. 25:12 25 minutes, 12 seconds So at an appropriate time if we feel there is a certain way which will help us extract a greater value from all 25:19 25 minutes, 19 seconds these assets that will be uh functioning at their peak capacity we will take that call. Currently we have no such uh agenda to prize the market of. 25:31 25 minutes, 31 seconds Got it. Got it sir. Uh for second question on the one on the init part. So you have mentioned that currently we are 25:40 25 minutes, 40 seconds closely is is having a 200 k in weight in the same and the 1,600 K 25:49 25 minutes, 49 seconds 1,400 K in the alpha. So put together 1,600 K and after maybe 200 K investment 25:56 25 minutes, 56 seconds we will be getting 1,800 K more. So roughly three 3,300 K in value that we will be having maybe a two year down the 26:05 26 minutes, 5 seconds line. Uh so there in presentation last time uh we were kind of a the 26:12 26 minutes, 12 seconds distribution from B alpha particularly that number was on on the higher side 41 26:20 26 minutes, 20 seconds now that number is is is on the lower side 350 or then the in 29 it is coming 386. So just wanted to understand is 26:29 26 minutes, 29 seconds there some understanding that now we will be getting a lesser uh dividend yield or whatever the return on the equity or the init that we are holding. 26:40 26 minutes, 40 seconds Uh so uh as far as the init units uh value is concerned you are right uh after uh 11 assets further uh divestment 26:49 26 minutes, 49 seconds to init that uh kind of init units holding will be there. But at the same time uh you must appreciate that the 26:58 26 minutes, 58 seconds timing of uh transfer the assets to invit uh changed in fi 26 uh uh and in 27:06 27 minutes, 6 seconds 27 also we will be uh transferring uh four assets uh in quarter 1 and then 27:13 27 minutes, 13 seconds balance uh uh in quarter 4 or quarter 1 of fi uh 28. So basis that the uh the 27:23 27 minutes, 23 seconds cash flow from the uh distribution is in visas uh in the slide number 24 shown in the presentation. 27:32 27 minutes, 32 seconds Okay, got it. Uh now sir on on the standalone part the broader uh guidance number just wanted to recheck. Uh so on 27:40 27 minutes, 40 seconds the standalone front the uh revenue for FI27 EIDA margin order inflow how much 27:48 27 minutes, 48 seconds we are looking at uh capex and uh uh also if you can help us in terms of the net date you have said that by FI28 we 27:57 27 minutes, 57 seconds will be a net debt free but in FI27 how much one can look at to uh a reduction. 28:05 28 minutes, 5 seconds So Shan G uh uh as I've mentioned earlier as well now FI27's revenue target uh from if we look at FI26 number 28:14 28 minutes, 14 seconds I we mentioned it will be at 30 to 40% growth from this number. Uh so we are in line with that because we have the order 28:22 28 minutes, 22 seconds uh the order book is very healthy right now at almost 28,000 crores. So uh we are very confident of of the revenue uh 28:31 28 minutes, 31 seconds that we should be able to get. uh that's where it will the revenue number would be at. Now in terms of uh our IDIDA we 28:38 28 minutes, 38 seconds are targeting that same 11 12% uh IIDA that we have mentioned that will be uh in line with that. Now more than that we 28:47 28 minutes, 47 seconds are also targeting about 10 12,000 crores of new order inflow to come in this financial year which will provide 28:55 28 minutes, 55 seconds us good visibility extending up to uh FI FI30. So that will be there. Similarly, now you also asked us about the debt. 29:05 29 minutes, 5 seconds How how much we are anticipating to reduce in this financial year. We anticipate somewhere between 600 to 800 crores of debt will be reduced in this 29:13 29 minutes, 13 seconds uh in huh in this financial uh year. uh and already from last quarter we've reduced about uh 2300 crores of debt 29:22 29 minutes, 22 seconds already and we anticipate going forward uh in the next two years like I mentioned we should be where we are at 29:29 29 minutes, 29 seconds uh near that uh net debt uh uh zero kind of numbers. 29:35 29 minutes, 35 seconds Yeah. Uh thank you sir. I have more questions will come up in Q. Thank you and all the best. Thank you sir. 29:44 29 minutes, 44 seconds Thank you. A reminder to all participants, you may press star and one to ask questions. 29:51 29 minutes, 51 seconds A reminder to all participants, you may press star and one to ask questions. 29:56 29 minutes, 56 seconds Next question is from the line of Vignesh Ayar from Sequent Investments. Please go ahead. 30:04 30 minutes, 4 seconds Hello. Uh hello. Uh yes, thank you for the opportunity. So my first question uh is actually related uh to the 30:12 30 minutes, 12 seconds investments uh that we are going to make in the renewable energy and the transmission uh segment of it and I was 30:21 30 minutes, 21 seconds uh you know looking at the slide number 24 on our PPD uh where I see that uh uh 30:28 30 minutes, 28 seconds 1250 crores for solar plus another 39 crores and a transmission 435 crores 30:35 30 minutes, 35 seconds investment uh is what we are planning over the period of next two years. uh so uh firstly I'm not going to understand 30:43 30 minutes, 43 seconds uh the structure around uh this investment in uh in a manner like what 30:50 30 minutes, 50 seconds is exactly the structured equity you know from acquirer for transmission and solar that is stated separately would it 30:58 30 minutes, 58 seconds be more like an SPV floated and sorry is breaking 31:05 31 minutes, 5 seconds is it your voice is breaking your voice is breaking Yo, we couldn't we can't understand very clearly because your voice your there's some problem in the network. 31:14 31 minutes, 14 seconds Hello. Uh am I audible now? Yeah, you're audible now. 31:19 31 minutes, 19 seconds Yeah. Yeah. Sorry. So, uh my question was again on the solar and transmission business where we have uh decided to 31:26 31 minutes, 26 seconds commit certain x amount of funds over the period of FI27 and 28. So, I wanted to understand the structure of uh this 31:35 31 minutes, 35 seconds investment. Uh firstly on the part where you are stating in slide number 24 that 31:41 31 minutes, 41 seconds structured equity from acquirer for transmission solar a certain amount is given. What is it exactly? I mean I want to understand the structure behind that. 31:52 31 minutes, 52 seconds Secondly, I wanted to understand what would be our equity commitment and what would be the expected IRRa on this product uh projects. 32:04 32 minutes, 4 seconds uh uh uh basically uh uh the idea uh of uh Gulp Belcon in transmission and solar 32:11 32 minutes, 11 seconds is to raise around 85% equity commitment to these projects from the uh investor 32:19 32 minutes, 19 seconds who will be putting in equity during uh uh construction. Uh so the commitment 32:26 32 minutes, 26 seconds from DBL side would be 15% of the total equity uh requirement in these projects. 32:33 32 minutes, 33 seconds uh in terms of uh IBITA margin uh in transmission it is upward of uh 24%. And 32:41 32 minutes, 41 seconds in u solar so sorry uh you asked about IRRa so IR 32:49 32 minutes, 49 seconds uh would be uh uh high teens uh in both the projects. 32:57 32 minutes, 57 seconds Uh okay. So uh if I understand it right for these these projects would you be 33:05 33 minutes, 5 seconds floating a separate SPV where uh any funding fund raise would be done or how is it that is the structure I was thinking about. 33:14 33 minutes, 14 seconds So basically uh uh this is uh the I said the acquirer will put in equity directly 33:21 33 minutes, 21 seconds into the uh project codes. So transmission SPV the uh potential 33:28 33 minutes, 28 seconds acquirer will put in uh direct equity to uh the SPV of transmission and similarly in solar. 33:37 33 minutes, 37 seconds Uh okay. Okay. Uh got it. And uh yeah. 33:41 33 minutes, 41 seconds So my second question uh on uh this is on our uh you know uh the coal uh 33:48 33 minutes, 48 seconds business. Uh I heard you earlier uh regarding the MBO business where uh uh you gave us stated guidance of how you see uh the picture uh moving ahead. 33:59 33 minutes, 59 seconds wanted to just understand how do we see this business from the margin point of view uh ma majorly I mean uh especially 34:07 34 minutes, 7 seconds in quarter 4 I think the margins have come down a bit uh versus how do we see this margin growing uh forward you know 34:16 34 minutes, 16 seconds for the next 3 years uh to our stated target in FI29 would we see uh a more 34:23 34 minutes, 23 seconds like a fixed percentage of margin coming in or as we scale up or or as we scale 34:30 34 minutes, 30 seconds up uh uh would we see that operating leverage playing in it? 34:36 34 minutes, 36 seconds Uh so thank you for your question. Uh see the margin that you are talking about uh that has come down uh in the in 34:44 34 minutes, 44 seconds the mining business temporarily right now is primarily because the evacuation by the government could not be done on 34:52 34 minutes, 52 seconds time. Uh so there is at the SRL mine uh right now we have about 6 million metric 34:58 34 minutes, 58 seconds ton of of stock which is lying at site uh because of delayed evacuation uh by the government and because of 35:07 35 minutes, 7 seconds unavailability of racks. Uh otherwise production from our side was doing well. 35:11 35 minutes, 11 seconds Uh and these are temporary issues. We expect this to kind of normalize with the government taking a keen interest in ensuring that all the supply chain 35:19 35 minutes, 19 seconds logistics are kind of worked out. So we expect in the mid to term this will all kind of normalize uh long-term if we 35:28 35 minutes, 28 seconds talk about the margin profile you're very right you know there will be economies of scale that would play out as we work at peak capacity as our uh uh our our coal handing plant comes online. 35:41 35 minutes, 41 seconds There is also kicker in the contract where once the coal handling plant comes online uh we will be entitled to a 35:48 35 minutes, 48 seconds higher uh revenue share. So all those things will add to a sweetener much later. However, we are just saying when 35:55 35 minutes, 55 seconds you're looking to build your model, you can build it conservatively around these numbers and understand how this business will kind of flow. But uh we're 36:03 36 minutes, 3 seconds confident that uh as as uh scale hits and as we also complete our coal handing 36:11 36 minutes, 11 seconds plant and hit COD uh the margins will uh meaningfully uh improve. 36:19 36 minutes, 19 seconds Okay. I mean uh if I have to see just from the numbers perspective FI25 blended the margin was around 26 now it 36:26 36 minutes, 26 seconds is 23 and quarter 4 because a one time impact uh has led to a lower margin. So 36:34 36 minutes, 34 seconds it would be fair to say that 2425 is a more stabilized level of margin and any economics of scale that come after this 36:43 36 minutes, 43 seconds would add on to the margin that is in place right if I if I you're right sir you're right that range is the right range to take and there'll 36:50 36 minutes, 50 seconds be you know improvement on that yeah yeah got it got it yeah that's all from my side and I'll get back in if I have 36:58 36 minutes, 58 seconds any more questions thank you thank Thank you. Next question is from 37:05 37 minutes, 5 seconds the line of Sanjay Parik from Suham Asset Managers Private Limited. Please go ahead. 37:13 37 minutes, 13 seconds Yeah, thank you uh to the team. Yeah, I just wanted uh you know as we move to 29 37:20 37 minutes, 20 seconds and 30 what are the annuality streams of revenue if you can broadly for each of the segment uh uh you know 37:29 37 minutes, 29 seconds you can explain that is one and secondly particularly this renewable project uh while my colleague asked uh but where 37:37 37 minutes, 37 seconds are we because I think these are short tenure projects so what is the status uh uh a little bit on the payback and the 37:45 37 minutes, 45 seconds structure equity uh uh again I just wanted to understand that of the equity portion 15% will be put by us 85% will 37:55 37 minutes, 55 seconds come as equity but they'll be given debt returns is that the way and who could be the potential investors here uh so that 38:04 38 minutes, 4 seconds is a little more granular expect understanding of that project and when do we start and when do we complete that 38:10 38 minutes, 10 seconds is uh that is that will help me Uh Sanjay thank you for your question. I 38:17 38 minutes, 17 seconds think you asked a bunch of questions. So let me start with the last bit that you saying. So the transmission and uh the 38:25 38 minutes, 25 seconds solar project that we are doing the larger strategy for us as we mentioned earlier that we want to build different asset classes just like what we've done 38:33 38 minutes, 33 seconds in the road sector. We want to build it in other sectors as well. Whether it's water, whether it's transmission, whether it's renewable, whether it's oil and gas, we want to do it across. But 38:42 38 minutes, 42 seconds having done that we have also promised the market that we want to be a debt-free company by FY28. So uh while 38:50 38 minutes, 50 seconds our larger goal long-term remains to create different platforms short-term we also realize the reality that if we 38:58 38 minutes, 58 seconds invest all our free cash in equity then we won't be able to achieve our goal of being a debtree company by 28. So the 39:06 39 minutes, 6 seconds model that we are going to do in between right now is that whatever these assets that we're building we will build these assets make our EPC margin and we are 39:15 39 minutes, 15 seconds looking to divest these assets at an earlier stage uh and find an investor right now also so that we attain our 39:24 39 minutes, 24 seconds short-term goal of 2028 being near net debtree that is why we are looking for investors currently in these assets now 39:32 39 minutes, 32 seconds two years down the line when I'm completely debtree when I'm doing these assets I will look to hold on because we will have significant amount of free 39:40 39 minutes, 40 seconds cash flow coming from our mining operation from our invit operation so my thing would be at that time key where do I deploy this capital which not only 39:48 39 minutes, 48 seconds gives a greater return for my investors but also gives us EPC business so that will be the long-term goal that we have 39:56 39 minutes, 56 seconds so uh I hope my my the strategy that the company has is uh is basically on the short term why we're doing this finding 40:03 40 minutes, 3 seconds an a buyer Right now it's kind of clear because we want to also be net debt free and not put all our equity into uh 40:10 40 minutes, 10 seconds building these assets and then sell it completely at that time. Hence this this methodology the via media has been 40:18 40 minutes, 18 seconds adopted right now. That is the goal. The structure that you are asking it won't be like any investor who is coming in it won't be a near uh debt kind of return 40:26 40 minutes, 26 seconds that they'll be looking at they'll be looking at obviously a more uh higher return than that. uh and we will be structuring to see how both their uh 40:34 40 minutes, 34 seconds sort of aspirations and our goals can meet and we can find a common way between both of them. That will be the idea and the goal for us. Uh and those 40:42 40 minutes, 42 seconds discussions are ongoing. Obviously, I'm not at a liberty to talk about uh you know any names and what it is. But uh I 40:49 40 minutes, 49 seconds am I'm uh I I'm sure we'll be able to give you uh a better clarity and good news on that uh in the coming sort of 40:58 40 minutes, 58 seconds short term only because those discussions are going on and we will give you uh better clarity going forward. 41:06 41 minutes, 6 seconds No, this is very helpful by only one thing by year uh the uh the structuring of this uh will be the debt portion will 41:15 41 minutes, 15 seconds be depend on the structure right just to understand so the structure has to be in place for you to get the debt for the 41:22 41 minutes, 22 seconds project. Uh sir sir the structure of so the sp has already been formed all the sps have been formed. Now the equity and 41:30 41 minutes, 30 seconds debt that has to be put in them all of them have also been defined already that how much equity and how much debt will go in each that has been defined. We 41:38 41 minutes, 38 seconds have also gone to the uh lenders with that same structure. Okay that this is the equity that we'll put in and this is the debt that we will need. We also have 41:45 41 minutes, 45 seconds inprincipal approval from lenders for all the projects that we're talking about. So we also have that. So all that process is done. Now the equity let's 41:53 41 minutes, 53 seconds say in solar about 1 1200 crores of equity and in transmission about 400 cr of equity has to go. Now what we are doing is of the 1,600 crores of equity 42:01 42 minutes, 1 second we are looking to find a solution that 85% of the capital that has to be invested as equity comes from the 42:08 42 minutes, 8 seconds investor while 15% is put by own DBL's own balance sheet. So essentially the cash that then gets you know the free 42:17 42 minutes, 17 seconds cash that is generated at the company level goes and reduces my standalone debt. So that is the goal because in these two areas right now we don't have 42:26 42 minutes, 26 seconds an init. However for the road we already have an invit. We already have an exit platform. We already have units already that we're holding. So we would not want 42:33 42 minutes, 33 seconds to uh let go of you know all those finished assets right now. but rather you know do this and uh because this is 42:42 42 minutes, 42 seconds not a ready platform that we have we are open to selling it completely also at this juncture just to like I said achieve our short-term goal of being a 42:50 42 minutes, 50 seconds near net company by FYI 28 perfect this is very helpful and and what is the commissioning deadline for this is there any commissioning deadline 42:59 42 minutes, 59 seconds 2 years 2 years 2 years from uh April 26 yes when I that is broad lines Whenever 43:07 43 minutes, 7 seconds we start the process or two years from there it will go from the letter of yeah perfect. Thank you. Thank you. Thank you very much. 43:16 43 minutes, 16 seconds Thank you. Thank you. Thank you sir. 43:17 43 minutes, 17 seconds Yeah I thank you. Next question is from the 43:24 43 minutes, 24 seconds line of Shankar Oja from SKS Capital and Research. Please go ahead. 43:29 43 minutes, 29 seconds Yeah. Hi thanks for this. Uh sir just quickly in terms of how many more assets to be transferred to this uh anam invit 43:38 43 minutes, 38 seconds and by when this will be done sir uh this is we have 11 more assets to be transferred into the anam uh invit 43:47 43 minutes, 47 seconds the road assets that we're talking about and uh this will be happening gradually through this year and by first quarter next year is uh what we're expecting 43:56 43 minutes, 56 seconds and and uh how much more equity I mean how much investment you'll have to put in for these assets to be completed and transferred. 44:04 44 minutes, 4 seconds So for the 11 assets in total it is less than 200 crores 169 to be exact right now which is there on the presentation 44:12 44 minutes, 12 seconds as well slide number 24 you will find it there. 44:17 44 minutes, 17 seconds Okay. and and once this is transferred so by next year quarter 1 uh what will be your uh the value valuation of those 44:26 44 minutes, 26 seconds uh uh sir about 3,3,300 BP that will that will be the total init value that we'll have including the 44:34 44 minutes, 34 seconds seven assets that we've done and these 11 that will go so against the total 18 assets that we have that we will be putting in the init we will have uh init 44:43 44 minutes, 43 seconds units worth between 3 3,000 to 3,300 crores Uh so so so here you have 3,300 crores 44:51 44 minutes, 51 seconds and and the other one is 200 crores. So there is uh so that 200 crores is there and you don't have any further uh increase of value in that same right? 45:01 45 minutes, 1 second No it will be same sub it's an initut those units are there it is giving us uh dividend income. 45:07 45 minutes, 7 seconds Yeah. So it's about 3500 cr plus in your uh ownership of assets in these two. 45:14 45 minutes, 14 seconds Yeah somewhere in that range sir. So this is obviously all these are dependent on the finals number you know because there is always change of scope that happens at the project level the 45:22 45 minutes, 22 seconds government is not able to give us all the land at times so the the final BPC value obviously always determines so these are obviously broad strokes that 45:31 45 minutes, 31 seconds we're telling you I see I see uh great in terms of um 45:38 45 minutes, 38 seconds obviously you have talked about it in terms of your payment from JJM last quarter uh month status now do you have 45:47 45 minutes, 47 seconds any further payment to be received from JGM and uh payments are regular monthly payments are happening there we don't have any hold up there that was uh earlier in the 45:56 45 minutes, 56 seconds year that had been there but that there are hold up on JDM payments great thank you thank you sir 46:07 46 minutes, 7 seconds thank you next question is from the line of Ishita Loda from Swan Investments please go ahead 46:15 46 minutes, 15 seconds Uh thank you for the opportunity and congratulations on a very strong order flow much better than the other industry 46:23 46 minutes, 23 seconds PS. Um I have a few questions uh for the CFO sir. Um as per slide number 33 the 46:32 46 minutes, 32 seconds receivables have increased from 1384 crores uh as on March 25 to 1783 crores 46:40 46 minutes, 40 seconds as on March 26 despite 22% decline in revenue and uh the funds that were blocked from J1 mission have been 46:49 46 minutes, 49 seconds released. So um can you please explain this? 46:53 46 minutes, 53 seconds So basically uh there are two types of uh payments from Jaljivan mission. One is basically regular bills and one is 47:01 47 minutes, 1 second basically the final amounts. So Jivan mission the last 10% which is uh basically uncertified one which will be 47:09 47 minutes, 9 seconds paid once we will do the last hydro testing. So that 400 cr will be paid uh uh once the we will do the hydro 47:18 47 minutes, 18 seconds testing. So basically it will happen uh partly this quarter and partly next quarter. So uh the the increase in 47:27 47 minutes, 27 seconds receivable from FI 25 to 26 is mainly on account of this 400 uh cr receivable uh 47:34 47 minutes, 34 seconds from the uncertified uh from the from the judgment mission projects. 47:42 47 minutes, 42 seconds Okay. And uh given the debt reduction target of 600 to 800 crores in FI27 uh 47:49 47 minutes, 49 seconds what is our expected interest outgo from the cash flow next year? 47:54 47 minutes, 54 seconds So basically if you can see this year also we reduced around 11% interest cost. Uh next year the interest cost 48:02 48 minutes, 2 seconds with the uh uh reduction in the net date we feel the uh uh total interest outgo 48:09 48 minutes, 9 seconds would be close to uh between 375 to 400 cr. 48:15 48 minutes, 15 seconds Okay. And uh I heard that in the opening remarks that the order inflow was 18,500 48:22 48 minutes, 22 seconds crores. But if I do the back of envelope calculation taking closing order book of 28,800 and opening order book of almost 48:32 48 minutes, 32 seconds 15,000 crores and execution of 7,000 crores. Uh the implied order inflow comes to 22,000 crores. So the 48:40 48 minutes, 40 seconds differential of 2,400 crores is change of order or the order inflow that you received post FY7. 48:48 48 minutes, 48 seconds So mam you can see you can see uh uh let me tell you the slide number and remark below the slide number. Uh we aid 48:58 48 minutes, 58 seconds because the the 18,550 cr order book order is from s parties whereas we have we have orders from our 49:06 49 minutes, 6 seconds uh coal business. So we a whole business uh next year next 3 years order book and every 49:14 49 minutes, 14 seconds quarter uh is changed because we we are in the phase where the volumes are increasing. So every quarter there is addition. So just see the not on the slide number 18. 49:26 49 minutes, 26 seconds Okay. Uh understood. And uh sir what is the distribution income from shrimp and alpha that was included in the standalone other income in FI26? 49:44 49 minutes, 44 seconds Allow some 49:57 49 minutes, 57 seconds total uh uh dividend in interest income during FI26 from U both the unit units 50:05 50 minutes, 5 seconds are 64.5 5 cr and uh the distribution was higher so uh the total distribution was close to 100 cr. 50:15 50 minutes, 15 seconds Okay. And um with respect to so in the opening remarks it was mentioned that bumment and raw media costs have 50:23 50 minutes, 23 seconds increased due to the clean oil price impact. So can we pass this on entirely? 50:30 50 minutes, 30 seconds What is the impact on our margins? Um so basically uh the for every every 50:38 50 minutes, 38 seconds contract there is a inflation formula from which we get the uh impact of the increase in pricing of this uh raw 50:46 50 minutes, 46 seconds material or the items but uh you know uh this formula may not give you 100% 50:53 50 minutes, 53 seconds increase because uh you can see the uh increase in the HSD and vitamin prices 50:59 50 minutes, 59 seconds sharply but the formula gives partly uh uh adjusted through the formula but 51:07 51 minutes, 7 seconds the balance is uh impact on the uh margins. So you can see some margin impact on uh coal business where uh the 51:16 51 minutes, 16 seconds HSD is the major cost. So there will be some impact. 51:22 51 minutes, 22 seconds Okay. Um thank you. That's it from my s. Thank you. 51:31 51 minutes, 31 seconds Thank you. Next question is from the line of Vishal Perial from PL Capital. Please go ahead. 51:40 51 minutes, 40 seconds Yes sir. Thanks for the opportunity. Uh so so in terms of interest cost though you did clarify how how do you see the 51:47 51 minutes, 47 seconds projecting next year but if I look at FI26 interest costs have gone down uh but that level has seen an increase absolute 51:55 51 minutes, 55 seconds level basis. So so so uh So basically uh let me tell you at the standalone level yes interest course 52:03 52 minutes, 3 seconds is reduced by 11% and that is mainly because of the reduction in the cost of debt uh basically the working capital 52:11 52 minutes, 11 seconds cost of debt is reduced significantly on W3DL the interest rate reduced by almost 125 basis point that is the impact uh on 52:20 52 minutes, 20 seconds the interest rate interest cost okay no because our uh revenue has also declined so maybe uh probably mobilation 52:28 52 minutes, 28 seconds advance or or I mean like you know the interest cost linked to that it will have certain bearing on the reason I'm asking 52:36 52 minutes, 36 seconds partly say yes you are right partly the impact of the lesser mobilization advance as well yeah so maybe like next year when we are 52:45 52 minutes, 45 seconds targeting a growth interest cost I mean like you know as an absolute level do you see it will reduce reason is in 52:54 52 minutes, 54 seconds terms of the outflow tracker that you mentioned there is a shortfall around 250 odd crores short-term debt could see 53:02 53 minutes, 2 seconds an increase revenues are increasing and interest for absolute level it could see increase so is that fair to understand or probably I'm guessing 53:10 53 minutes, 10 seconds so basically if you have heard uh Rohan g in the opening remark he said this year basically by March 28 our target is 53:18 53 minutes, 18 seconds to make this company debt free so the this year we will be reducing close to 600 to 800 crb gradually so the primary 53:26 53 minutes, 26 seconds impact effect of interest uh reduction in absolute terms would be from the debt reduction. 53:34 53 minutes, 34 seconds Okay. Okay. Got it sir. And uh and in terms of Yeah. I think that's that's all from my s. Thank you sir. 53:47 53 minutes, 47 seconds Thank you. Next question is from the line of vigny from sequent investments. Please go ahead. 53:58 53 minutes, 58 seconds Hello Mr. Yes Mr. Yeah, please go ahead. 54:01 54 minutes, 1 second Yeah. Yeah. Uh uh so my question is uh I wanted to understand on our standalone EPC order book uh I wanted I wanted to 54:11 54 minutes, 11 seconds understand the part where uh due to uh the ongoing war there has been RM escalation 54:18 54 minutes, 18 seconds and how uh so do we have a clause in place for uh you know pass through of this escalation of raw material? How how 54:27 54 minutes, 27 seconds is the arrangement uh you know uh for us and uh whichever order we have uh you 54:34 54 minutes, 34 seconds know got till you know uh sir obviously whenever there is such 54:41 54 minutes, 41 seconds a sudden spike uh or increase in prices no contract uh will ever protect you against that because government 54:48 54 minutes, 48 seconds contracts are linked more towards the WPI and CPIN and not does not take into account such a thing uh so it's not 54:56 54 minutes, 56 seconds completely pass through and we uh will be facing those uh challenges as well as will the rest of the industry. uh the 55:05 55 minutes, 5 seconds the I guess the saving grace here is the government is aware of this issue and we as an federation the national highway 55:12 55 minutes, 12 seconds you know builders federation we are also uh talking uh with the government about 55:19 55 minutes, 19 seconds these issues and we're trying to see how uh this blow can be softened uh and hopefully in the coming sort of days 55:27 55 minutes, 27 seconds there should be some kind of resolution that could do uh I don't think and know that everything can or would be 55:34 55 minutes, 34 seconds protected but uh but there'll definitely be some kind of respite that we hope the government will kind of uh step in and do. 55:44 55 minutes, 44 seconds All right. Sir uh could you share what is our uh cost of borrowing for our house? 55:50 55 minutes, 50 seconds So our cost of borrowing uh around uh 9% on average basis. 55:59 55 minutes, 59 seconds Okay. Okay. And that's all for my time. 56:04 56 minutes, 4 seconds Thank you ladies and gentlemen. That was the last question of the day. I now hand the conference over to Mr. Rohan 56:12 56 minutes, 12 seconds Suryanchi for closing comments. Over to you. 56:16 56 minutes, 16 seconds On behalf of the whole DBL family, I thank all of our partners to come who came and joined and ask questions. uh uh 56:23 56 minutes, 23 seconds I think please uh do go through our presentation in detail because uh we have uh taken significant uh uh we put 56:31 56 minutes, 31 seconds significant thought in terms of designing it for you guys to how the future of the company will pan out and I think that might be very useful uh for 56:40 56 minutes, 40 seconds any investor looking at how the company will shape up. So thank you very much and I look forward to seeing all of you guys for our next quarter call. 56:49 56 minutes, 49 seconds Thank you on behalf of the DIP Buildcon Limited that conclude this conference. 56:54 56 minutes, 54 seconds Thank you for joining us and you may now disconnect your lines.