Indraprastha Gas Limited — Q3 FY26

Indraprastha Gas Limited Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=ZXfAcikI7f0 Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Interpress Gas Limited Q3 FY26 earnings conference call hosted by Antic Stock Broking Limited. 0:13 13 seconds As a reminder, all participant lines will be in the listenonly mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:23 23 seconds Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. I now hand the conference over to Mr. Varta Rajan. 0:33 33 seconds Thank you and over to you sir. 0:35 35 seconds Thank you Simma. A very good evening. I would like to extend a very warm welcome to all the participants and the top management of Indep Limited who are on this call. 0:46 46 seconds I would like to like you know especially welcome Mr. Kamal Kish Chhatal managing director Mr. Mr. Mohit batya director commercial Mr. Sanjay Kumar CFO Mr. 0:56 56 seconds Majjit Singh VP finance I'll hand over the phone floor to Mr. come to short chat for their initial remark. 1:05 1 minute, 5 seconds Uh good evening ladies and gentlemen. 1:08 1 minute, 8 seconds As we enter the final quarter of financial year, I am pleased to connect and welcome you all to discuss IGL's performance for quarter 3 FY 2526. 1:21 1 minute, 21 seconds I am Kamill Kisho Jetti, managing director of Indrust Gas Limited and I sincerely thank all our shareholders, 1:30 1 minute, 30 seconds analyst, stakeholders for your continued trust and engagement. 1:36 1 minute, 36 seconds I am delighted to present the operational and financial performance of Indep Limited for the quarter ended December 31, 2025. 1:47 1 minute, 47 seconds I will begin by outlining our progress in volume growth and network expansion during this period. The operational 1:55 1 minute, 55 seconds highlights are as follows. This quarter demonstrates steady operational execution and improving margin 2:03 2 minutes, 3 seconds visibility as we continue to consolidate our leadership position in India's city gas distribution sector 2:12 2 minutes, 12 seconds operating across 12 geographical areas spanning four states. 2:17 2 minutes, 17 seconds IGL serves a growing and diversified customer base through robust and scalable infrastructure. Over the course 2:25 2 minutes, 25 seconds of the year, we have significantly expanded our footprint. Our steel pipeline network now extends over 2,500 2:34 2 minutes, 34 seconds kilometers while our MVP network has reached approximately 29,200 kilometers. 2:42 2 minutes, 42 seconds This infrastructure enables us to supply natural gas to more than 32 75 lakh households, approximately 2:51 2 minutes, 51 seconds 5,400 industrial customers and around 7,400 commercial establishments. 2:58 2 minutes, 58 seconds We have added uh and commissioned 45 CG stations till now during the year 3:06 3 minutes, 6 seconds further strengthening access and convenience for our vehicle regular customers. 3:13 3 minutes, 13 seconds regulatory developments during the quarter. Two major regulatory recalibrations occurred that have a very 3:20 3 minutes, 20 seconds positive structural implication for the city gas distribution sector particularly for IGL. First is the 3:28 3 minutes, 28 seconds replacement of the 15% value added tax with a 2% central sales tax on domestic 3:34 3 minutes, 34 seconds gas sourced from Gujarat effective December 2025. 3:40 3 minutes, 40 seconds While the immediate financial impact was moderated by elevated gas input prices and currency fluctuations, this change 3:48 3 minutes, 48 seconds will have a positive impact on gas costs going forward. The second was the rationalization of the gas transmission 3:57 3 minutes, 57 seconds framework through the introduction of twozone tariff regime replacing the previous three zone structure. Effective 4:05 4 minutes, 5 seconds January 1, 2026, PNGB has revised its tariff regulation reducing pipeline 4:12 4 minutes, 12 seconds transmission tariff zones from 3 to two for the CD CGD sector. Zone one applies universally to CNG and PNG domestic 4:22 4 minutes, 22 seconds segment regardless of the delivery point distance from the source. IGL will benefit significantly from this change 4:29 4 minutes, 29 seconds as our geographical areas previously fell under zone 2 and zone 3 and will now 4:38 4 minutes, 38 seconds be classified under zone one tariff for industrial and commercial segment. 4:45 4 minutes, 45 seconds Zone 2 tariff will be applicable across our INC portfolio. 4:51 4 minutes, 51 seconds Let me now turn to our financial performance for the third quarter of FY2526. 4:57 4 minutes, 57 seconds The company recorded a 3% year-on-year growth in total sales volume with the CNG segment growing 3% and PNG segment growing 5%. 5:06 5 minutes, 6 seconds Despite lower offtake from DTC and DIMS fleets consequent to their phased migration towards electric mobility, the 5:15 5 minutes, 15 seconds CNG segment demonstrated resilient performance. 5:19 5 minutes, 19 seconds Adjusted for these institutional volumes, the segment delivered growth of approximately 10% 5:27 5 minutes, 27 seconds underscoring sustained demand across the wider vehicular ecosystem. 5:33 5 minutes, 33 seconds In the PNG segment, volumes increased to 2.5 million standard cubic meters per day 5:40 5 minutes, 40 seconds from 2.41 SEM per day year on year, indicating steady traction across all subsegments. 5:48 5 minutes, 48 seconds This growth is underpinned by consistent customer additions and stable demand across user categories. 5:56 5 minutes, 56 seconds This concludes my remarks and I would now like like to invite our director commercial she moit baty gi to share his comments. 6:09 6 minutes, 9 seconds Uh thank you uh managing director Shri Jetti. 6:13 6 minutes, 13 seconds Uh very good evening to everyone. I am uh Mohit Barta, director commercial at Indep. 6:20 6 minutes, 20 seconds And I extend a warm welcome to all our investors, fund fund managers and 6:26 6 minutes, 26 seconds analysts joining us today. I hope you have had the opportunity to review our 6:33 6 minutes, 33 seconds financial results for the quarter. Uh let me give you the quarter overview. 6:39 6 minutes, 39 seconds This quarter presented a mixed landscape for the CGD sector. While we benefited from the two 6:48 6 minutes, 48 seconds major positive regulatory uh changes as uh appraised by our managing director uh we have also 6:57 6 minutes, 57 seconds experienced volatility in gas cost and adverse forex impacts on procurement expenses. 7:06 7 minutes, 6 seconds Additionally, there has been changes in the legal landscape. The new labor code became effective 21st November 25. 7:16 7 minutes, 16 seconds Although these rules are yet to be notified, we have made provisions of around 28 ks in the current quarter as a one-time impact. 7:27 7 minutes, 27 seconds Excluding these provisions, our AITA would have been around 500 KS. 7:36 7 minutes, 36 seconds the market dynamics following the rationalization of the GST rates the GST 2.0 zero in 7:44 7 minutes, 44 seconds particularly on CNG vehicles was reduced from 28% to 18%. 7:51 7 minutes, 51 seconds Resulting in a phenomenal increased vehicle convergence which have risen which have raised from 7:59 7 minutes, 59 seconds uh uh average of 21,000 to 26,000 per month. We expect this momentum to 8:08 8 minutes, 8 seconds continue in the near future. Further the company is aggressively pursuing the growth in new geographical areas and now 8:16 8 minutes, 16 seconds the new geographical areas the incremental volume is contributing to almost 57% that is outside Delhi and NCR 8:27 8 minutes, 27 seconds the quarter 3 FY 2526 financial performance the key highlights are first 8:35 8 minutes, 35 seconds volume performance the total volume the total sales for the quarter reached 867 8:41 8 minutes, 41 seconds million STM, up from 838 million STM in the same period last year, reflecting a 8:48 8 minutes, 48 seconds 3% year-on-year growth. Overall average daily sales volume was 9.43 million SCM 8:56 8 minutes, 56 seconds compared to 9.11 million SCM per day in Q3 financial year 9:03 9 minutes, 3 seconds uh 2425. On the CNG segment, the CNG segment continued to perform strongly 9:10 9 minutes, 10 seconds with average daily sales exceeding 50 lakh kgs per day equivalent to 6.93 9:17 9 minutes, 17 seconds million SCM representing a 3% growth in terms of SCM terms and a growth of 5% in terms of KG terms. 9:30 9 minutes, 30 seconds Excluding the DTC volumes in Delhi, CNG sales grew by 10% underscoring robust 9:37 9 minutes, 37 seconds underlying demand with DTC fleet fleet transitions expected to have minimal impact going forward. The CNG segment is 9:46 9 minutes, 46 seconds well positioned for sustained growth in the PNG segment. The PNG segment also demonstrated growth with average daily 9:54 9 minutes, 54 seconds sales of around 2.5 million SCM per day up from uh 2.4 1 million SCM in the 10:03 10 minutes, 3 seconds corresponding uh last quarter uh quarter for the last year representing a growth 10:10 10 minutes, 10 seconds of uh 5%. However, the domestic uh domestic PNG sales growth was around 8% 10:18 10 minutes, 18 seconds along with commercial uh PNG growth of 8%. However, the industrial demand had was subdued a little bit. On the revenue 10:27 10 minutes, 27 seconds and the profitability, our total revenue for this quarter stood at465 10:33 10 minutes, 33 seconds kores making an average 8% yearon-year increase driven by volume growth and 10:40 10 minutes, 40 seconds steady operational execution across segments. Evita stood at 473 kores 10:47 10 minutes, 47 seconds compared to 360 kores in Q3 of last year reflecting 31% growth and 7% 10:56 10 minutes, 56 seconds sequential growth compared to 44 43 crores in previous quarter. The profit 11:03 11 minutes, 3 seconds after tax packed for Q3 stood at 358 kores as compared to 285 kores in the 11:10 11 minutes, 10 seconds corresponding quarter of the previous year demonstrating a robust growth of 25% in PAT. So that concludes our uh 11:20 11 minutes, 20 seconds opening uh remarks and uh we would like to open the floor for the question and answer session. Thank you. 11:30 11 minutes, 30 seconds Thank you very much. We will now begin with the question and answer session. 11:35 11 minutes, 35 seconds Anyone who wishes to ask a question may press star and one on their touchstone telephone. 11:42 11 minutes, 42 seconds If you wish to remove some yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. 11:52 11 minutes, 52 seconds Ladies and gentlemen, we will wait for a moment while the question queue assembles. Thank you. 12:06 12 minutes, 6 seconds We take the first question from the line of Yogesh Pat from Dat Capital. Please proceed. 12:12 12 minutes, 12 seconds Thanks for taking my question sir. Few questions from my side. Uh how many DTC buses phase out during the quarter 3 and 12:21 12 minutes, 21 seconds now what is the CNG consumption volume of uh DTC buses? 12:29 12 minutes, 29 seconds So uh uh like if if I can share you for quarter three. So uh uh the the sales 12:38 12 minutes, 38 seconds have come down it was around 80,000 kgs per day in October. Then uh further tapered to around 54,000 uh in November 12:48 12 minutes, 48 seconds and uh December it was uh left to around 22,000 kgs per day. So now almost only 12:57 12 minutes, 57 seconds on below I think 100 buses are left out and uh uh we what we have we have been 13:05 13 minutes, 5 seconds uh made to understand from DTC I think by March this DTC volume will be almost uh zero. 13:13 13 minutes, 13 seconds Okay. Second question related to unit IBITA margin or ITA margin guidance. uh we have been giving a 7 rupees perm kind 13:22 13 minutes, 22 seconds of uh I beta margin guidance now we have posted a 5.4 rupees permium in this quarter uh what will be the parameters 13:32 13 minutes, 32 seconds or the things which will boost up the I beta margins from the current level of 5.4 four to the seven any broader idea 13:40 13 minutes, 40 seconds uh if you could give us yeah two three things first is the transmission tariff so the total impact 13:49 13 minutes, 49 seconds if you know for the entire se sector was around 1,000 crores and out of that ideal share was 330 13:57 13 minutes, 57 seconds crores we have passed on some of the benefit to the consumers but we are still left with 260 crores so that should translate to approximately 75 pesa per sem. 14:09 14 minutes, 9 seconds Okay, that is one. Second is as the Gujarat V was implemented only in December. So we could uh realize only 14:16 14 minutes, 16 seconds the part the sec. So that impact is around uh uh 20 25 pesa. 14:23 14 minutes, 23 seconds Third is the labor code that was implemented. So we had to make certain provisions that is a onetime provision. 14:30 14 minutes, 30 seconds Um going forward it may not be that high. So that is around 30 pesa. extra. 14:37 14 minutes, 37 seconds So combined all these we we are seeing that we should be near to I mean seven 14:44 14 minutes, 44 seconds going forward and if required any adjustment in prices. The long-term guidance remains that 7 to8 is our target range. We were expecting the 14:53 14 minutes, 53 seconds transmission uh tariff to be notified much earlier than it was notified because they sent the communication in 15:01 15 minutes, 1 second July. PNG communication was in July and we deferred because we don't want to uh basically 15:08 15 minutes, 8 seconds uh make the RSP of our CNG product volatile. So we want to keep it constant. So we deferred the price 15:17 15 minutes, 17 seconds increase or anything like that. But so that was the reason that there was delay but now going forward we expect that 15:24 15 minutes, 24 seconds this should come uh these benefits should come and automatically it should be near to 7 based on the current prices. 15:33 15 minutes, 33 seconds Now you suggested 75 pesa per unit kind of a benefits from the uh unifi tariff rationalization 15:40 15 minutes, 40 seconds out of that how much we have already pass on to the customer in terms of benefit this is after passing on. Okay, 15:47 15 minutes, 47 seconds this is the benefit what is left. So 1 rupee something was there. So now what is left is 75,000. 15:55 15 minutes, 55 seconds And the last sir just uh gas sourcing breakup if you could provide in MMSD terms from each source that would be helpful. 16:09 16 minutes, 9 seconds So if you see uh our overall uh procurement was 9.75 out of that APM was 16:16 16 minutes, 16 seconds 3.3 uh8 uh NWG was uh 57 million uh 16:23 16 minutes, 23 seconds cubic meters per day uh HPS was around uh.5 16:28 16 minutes, 28 seconds and uh RLNV uh rest was RLN around 3.3 in percentage terms if I say domestic 16:35 16 minutes, 35 seconds was around 43% NWG uh 7% % HPS 6% and 42% for RND. 16:45 16 minutes, 45 seconds Thanks a lot sir. This was really helpful and wish you better luck. 16:50 16 minutes, 50 seconds Thank you. We take the next question from the line of Nitan Tari from Philip Capital India. Please go ahead. 16:58 16 minutes, 58 seconds Hi sir. Uh thanks for the opportunity. 17:00 17 minutes Um uh so my question was related to your guidance for uh volume for this year and for next year. So uh in the previous 17:08 17 minutes, 8 seconds call you had indicated that we'll be exiting this year at about 10 mm at CMD. 17:13 17 minutes, 13 seconds So do we maintain that uh that guidance and in terms of like you know exiting this year at 10 because I think uh in 17:19 17 minutes, 19 seconds the 9 months so far we are at 9.43 after uh 9 months. So that would be my first and second question was again on volume. 17:28 17 minutes, 28 seconds So if you can give us a breakup of uh like you know sales across our um NCT, NPR and new geographies and also the 17:36 17 minutes, 36 seconds growth respective growth rates in those regions. 17:39 17 minutes, 39 seconds Yeah, we maintain the guidance that as you know the CGD sector the last quarter is the best sector the quarter four of 17:48 17 minutes, 48 seconds any year you pick up any year that is the best sector and till now we have performed the average has been 9.43 43 but we have been constantly going above 17:57 17 minutes, 57 seconds 10 millions per day. The draw from um all the sellers is exceeding 10 million. 18:03 18 minutes, 3 seconds So we will be exiting uh the quarter at 10 million that we are confident and the breakup that you have asked. 18:12 18 minutes, 12 seconds Yeah please. So uh the breakup for the current year 9.43 which breakup you wanted to know. So Delhi is contributing 18:22 18 minutes, 22 seconds to around 5.4 43 this is CNG plus PNG uh around 56%. 18:29 18 minutes, 29 seconds Uh Na Gyabad is contributing to 2.24 per day around 23%. And the other uh the 18:38 18 minutes, 38 seconds newer GS we can say around 13 to 14% 1.26 mm CMD per day and the NG is.5. So 18:47 18 minutes, 47 seconds the breakup of 9.43 43 is and sir the respective growth rates in these areas uh in this quarter. 18:56 18 minutes, 56 seconds Yeah. So Delhi as you know it is almost flat or you can say half half to 1%. Uh 19:03 19 minutes, 3 seconds Na Gazyabad is growing at around 6.2% whereas the outside or the new GS is contributing to almost 17% growth. 19:15 19 minutes, 15 seconds Okay sir. And uh sir if I may just uh like you know ask a follow-up question on the volume that you mentioned in terms of guidance. So sir in the 19:23 19 minutes, 23 seconds previous quarter I think the DTC volumes were about at uh like 30,000 kgs per day whereas the uh numbers that you 19:31 19 minutes, 31 seconds indicated for this quarter indicate a higher average uh contribution from BTC at about 50,000 kgs per day. So in fact 19:39 19 minutes, 39 seconds DTC has contributed more in this quarter than it did in the uh September quarter. Right? So then how do we see this? Yeah. 19:47 19 minutes, 47 seconds Yeah. Yeah. I I got it. See the September there was uh dip it was um 19:55 19 minutes, 55 seconds definitely less. Then uh two months October and November I think they there some buses were not flying and they 20:03 20 minutes, 3 seconds rolled it back and then finally it got shunted out but December volume it was around 20 22,000 and further as I 20:11 20 minutes, 11 seconds mentioned earlier also hardly less than 100 buses are left out and what we have been made to understand from DTC they 20:19 20 minutes, 19 seconds will be phasing it out entirely by March uh uh 26. So actually what I wanted to understand is that in September our 20:28 20 minutes, 28 seconds total CNG volume was higher despite a lower contribution from DTC in this December quarter our DTC contribution 20:36 20 minutes, 36 seconds went up sequentially but our overall CG volume went down. Please I I yeah actually in this quarter in Delhi as you 20:44 20 minutes, 44 seconds know the graph implementation was there the schools were shut down for a a few days I mean this this time the pollution 20:52 20 minutes, 52 seconds was really bad. So schools the buses were off off the roads. So those were the major impacts. Due to this the 20:59 20 minutes, 59 seconds quarter three was slightly other than the DTC also the buses volumes were down but now that the weather has improved 21:08 21 minutes, 8 seconds the graph have have been lifted so we are at normal now I'll reiterate the numbers for DTC uh Q2 21:16 21 minutes, 16 seconds we had an average sale of 40,000 and this quarter the average sale was around 6,000 21:25 21 minutes, 25 seconds uh okay all right sir thank you sir u I'll get back of the question we earlier mentioned about 40 50,000 it 21:33 21 minutes, 33 seconds is actually 6,000 6 all right um my my over there other portion which is dim that was also 21:41 21 minutes, 41 seconds uh 1 lakh 50,000 last quarter this quarter it is 1 lakh 30,000 okay 21:50 21 minutes, 50 seconds thank you we take the next question from the line of Solanki from ICS security please go ahead 22:00 22 minutes Okay. Uh just you know as you mentioned we sorry Mr. Hardik we cannot hear you clearly sir. 22:10 22 minutes, 10 seconds Thanks for the opportunity as you mentioned that you know you maintain uh volume guidance. Can you just you know uh help us what the volume growth for 22:19 22 minutes, 19 seconds next two to three years uh GA wise if you can just break down Delhi and non Delhi. 22:26 22 minutes, 26 seconds Actually our guidance has been that every year we will be adding 1 million so 9 to 10 and 22:35 22 minutes, 35 seconds next two years I think 1 million each every in next two years and majority of that would come I mean Delhi will 22:42 22 minutes, 42 seconds continue at 8 to 10% after once the impact of DTC is away so 8 to 10% would 22:50 22 minutes, 50 seconds be the NCR zone and outside would be 17 to 18% Okay, that's helpful. Thank you. 23:02 23 minutes, 2 seconds Thank you. 23:04 23 minutes, 4 seconds The next question is from the line of Samri Hazika from MK Global. Please go ahead. 23:10 23 minutes, 10 seconds Yeah, good afternoon. So, so firstly on clarification, you mentioned that the Gujarat B implementation was from 23:17 23 minutes, 17 seconds December only not before that and 2025 per SCM is still pending to be released. Is that right? 23:25 23 minutes, 25 seconds I mean for only December quarter we could realize in the last quarter. So if the whole year impact is there so that should be the benefit. 23:34 23 minutes, 34 seconds No I mean Q you are saying another 20 25 pesa would get added to the gross margin right from this. 23:41 23 minutes, 41 seconds Yes yes yes. 23:44 23 minutes, 44 seconds Okay. And uh second is on the DTC uh 40,000 to what was I I couldn't get that 23:52 23 minutes, 52 seconds that part which Nin was asking uh the DTC scores for this quarter was 24:00 24 minutes uh 5,000 6,000 around 6,000 kg uh average and last quarter the last quarter this 24:09 24 minutes, 9 seconds number was uh 40,000 40,000 24:16 24 minutes, 16 seconds 40,000 40,000 fallen from 40,000 to 6,000 in quarter on quarter yes 24:25 24 minutes, 25 seconds okay and 150 to 130 was that was dim okay that was dim from Q2 to Q3 so dim 24:34 24 minutes, 34 seconds is still at 130 and dim is still at 130 so DTC and dim they used to comprise 24:42 24 minutes, 42 seconds around uh 8 to 10% of our sales. Now that number remains around 4%. 24:48 24 minutes, 48 seconds So dim alone used to be 67%. Now it is at around 1%. Not even 1%. Uh DTC plus DIS. 24:57 24 minutes, 57 seconds Yes. 24:58 24 minutes, 58 seconds Okay. And DIMS will also keep gradually declining right. 25:04 25 minutes, 4 seconds So DIMS is a slightly longer uh uh period for the transition because the primarily the mandate is for DTC to 25:12 25 minutes, 12 seconds convert and DIMS is basically on operator who have the vehicles with the the daily integrated transport model. So 25:21 25 minutes, 21 seconds they are the outside operators. So they have a longer tenure basically because those buses which have been put up they will run for 8 to 10 10 years. 25:31 25 minutes, 31 seconds They are basically contract buses which run on uh right contract basis. They private party buses run on contract basis. 25:41 25 minutes, 41 seconds I can few uh questions. Uh so 9 months u I mean what is the CNG station base and capeex for 9 months? 25:52 25 minutes, 52 seconds It's around for CNG CNG or PNG PNG station what is you said 45 till now 26:00 26 minutes after 9 months is around 190 crores 190 crores oh 26:06 26 minutes, 6 seconds no 116 sorry PNG is 190 the steel network is 190 and the PNG is 116 crores 26:14 26 minutes, 14 seconds and MDP MDP is 560 so total we have spent around 847 crores in 9 months 26:22 26 minutes, 22 seconds Okay, this is the and what is the PNG station base right now? 26:28 26 minutes, 28 seconds So we're almost 975 uh stations by you can say 973 to be 26:36 26 minutes, 36 seconds specific as on end of uh 31st of uh January you can say out of the DTC have been closed that we 26:44 26 minutes, 44 seconds have to review. Yes, that's around 55 60 buses have uh been closed uh stations have been closed which were 26:51 26 minutes, 51 seconds run by DTC. So that number you can reduce around 925 uh uh stations operative. 27:00 27 minutes Right. Right. And and uh last question uh what would be CGL MGL volume for uh 27:06 27 minutes, 6 seconds this quarter as well as last year same quarter? 27:11 27 minutes, 11 seconds MNGL is 1.99 uh M cmd last year it was 1.7 27:17 27 minutes, 17 seconds 1.7 to 1 almost 2 million and CGL last year it was.33 this year it is.34 they have growth of around 3%. 27:28 27 minutes, 28 seconds Okay. And there was dividends from COG, M&M and Q3, right? Q3 we had dividend from M&GL 40 crores. 27:37 27 minutes, 37 seconds 40 crores. In Q2 also there were dividends, right? 27:40 27 minutes, 40 seconds Q2 we had final dividend 67 crores around 58 crores from MNGL and 9 crores from CGL. 27:49 27 minutes, 49 seconds Got it. Thank you so much. 27:53 27 minutes, 53 seconds Thank you sir. Before we take the next question, a reminder to all the participants. If you wish to join the question queue, you may press star N1 on your touchstone telephone. 28:05 28 minutes, 5 seconds Ladies and gentlemen, if you wish to ask a question, you may press star and one on your touchstone telephone. The next question is from the line of Vive Gupta 28:14 28 minutes, 14 seconds from Nova's capital. Please go ahead sir. 28:18 28 minutes, 18 seconds Uh thank you for for taking my call. I just had a option a power loin question in the future when LNG prices come down 28:26 28 minutes, 26 seconds and the demand for uh commercial increases would you have to put up more uh infrastructure or within the existing infrastructure you'll be able to expand increase volumes? 28:37 28 minutes, 37 seconds No actually uh if you see the current state of uh queuing in Delhi NCR it it 28:45 28 minutes, 45 seconds is still a uh cause of worry and we need to put up more stations because the moment we provide more 28:52 28 minutes, 52 seconds convenience more people will be attracted to convert to CNG. 28:57 28 minutes, 57 seconds Okay. Now although the queueing time has reduced drastically from earlier say half an hour to now 5 6 minutes but our 29:05 29 minutes, 5 seconds vision is to make it queue less I mean there should be no queue at stations and what about for the uh industry small 29:13 29 minutes, 13 seconds industry which the commercial segment the volume can increase you know yeah definitely the the volumes 29:22 29 minutes, 22 seconds will increase there now uh even the DG set conversions for the societies because they have gone for alternate to 29:31 29 minutes, 31 seconds NG also in some cases. So we are trying to capture those customers and also the commercial uh transition from say LPG to 29:40 29 minutes, 40 seconds gas that continues. So that 10 to 11% growth would be there. 29:45 29 minutes, 45 seconds So using the infrastructure or you will require more. 29:50 29 minutes, 50 seconds So for PNG industrial and commercial we are already uh we have already reached all the industrial and commercial hubs. 29:56 29 minutes, 56 seconds So probably uh will not require that much uh capex to reaching those customers. Uh given the price reduction 30:03 30 minutes, 3 seconds of uh uh international energy prices uh probably we'll be able to sell more and 30:10 30 minutes, 10 seconds uh growth uh is something which we can expect that will affect margins positively. Yes. Yes. 30:19 30 minutes, 19 seconds Okay. That was it. Thank you. Thank you sir. 30:27 30 minutes, 27 seconds The next question is from the line of Malik Patel from IQirus. Please go ahead. Yeah sir. Thanks for the opportunity. Any specific reason that 30:35 30 minutes, 35 seconds growth in NCR was very like it's like 6%, it usually be around that 11 12% kind of on a run rate what we have seen 30:43 30 minutes, 43 seconds in the past. Any specific reason for this kind of a number? 30:51 30 minutes, 51 seconds See uh you are right uh I think um you are right last few quarters we were uh looking at around 10 to 11%. 31:02 31 minutes, 2 seconds So because this gap effect is there in NCR also and uh uh this time I think you 31:10 31 minutes, 10 seconds are aware that due to some high pollution issues and all the schools were closed. 31:16 31 minutes, 16 seconds So we also envisaged a little bit tapered growth in uh Gazyabad or Noa 31:24 31 minutes, 24 seconds area. uh but the uh number of vehicles which are getting added in particularly 31:30 31 minutes, 30 seconds passenger car segment uh we are confident uh to uh bounce back on the similar numbers. 31:39 31 minutes, 39 seconds Okay. Okay. And sir when you say that that uh the 10 MMS CMD will be the exit rate and in doing that it will be for 31:48 31 minutes, 48 seconds that particular month you will exit at around 10 or that quarter you will exit around the average will be around 10 mm cmd. 31:59 31 minutes, 59 seconds I think the average 10 for the quarter uh what we are suggesting is that in the March month it should be at 10. the 32:08 32 minutes, 8 seconds entire month should be at 10. So that is the exit uh rate because for the quarter 32:15 32 minutes, 15 seconds we are now at 9.4 9.5 number and going forward this month we are touching 10 32:23 32 minutes, 23 seconds and March the complete March should be above 10. 32:27 32 minutes, 27 seconds So the average for the two three days you know for the holidays and other uh reasons the sales are less on those two three days. 32:38 32 minutes, 38 seconds Five six days we are doing uh about 10 but on Sundays the number of vehicles are less 32:46 32 minutes, 46 seconds so that brings down the average but going forward uh in March we will be at 10 about 10 for the whole month 32:53 32 minutes, 53 seconds okay the last question what was the DTC volume in the base quarter I think you mentioned that average for this quarter 33:00 33 minutes was something around 50,000 kg per day that's what the average for the Q3 what that number was in base quarter. 33:10 33 minutes, 10 seconds So we stand corrected it is 5,000 uh kgs per day uh for this quarter and for the 33:18 33 minutes, 18 seconds uh last quarter of the previous uh that means previous year the same quarter it was around 1.5 lakh per kg 33:26 33 minutes, 26 seconds okay it was 1.5 lakh got it okay thank you sir thank you sir we take the next question 33:35 33 minutes, 35 seconds from the line of praul sin from ICICI securities please go ahead. 33:41 33 minutes, 41 seconds Thank you for the opportunity sir. I hope I'm audible. Yes, please go ahead. 33:47 33 minutes, 47 seconds Yeah. So just uh with respect to the guidance that you just mentioned in terms of volumes where the target is to essentially add about 1 million scrums 33:56 33 minutes, 56 seconds per day every uh year just wanted to understand what will be the sourcing strategy. What kind of contracts are we 34:03 34 minutes, 3 seconds sort of in the market for? Whether are we looking at only Brent linkling in the view of recent Henry Hub strength or are 34:11 34 minutes, 11 seconds we still looking at a diversified kind of a sourcing state just in understand trying to understand the readiness to you know meet this kind of higher volume 34:19 34 minutes, 19 seconds target from a sourcing perspective yeah going forward we anticipate that uh right now 42 43% is RLG it should it 34:28 34 minutes, 28 seconds will be 50/50% RLG and 50% from domestic sources including HPT new well guess and uh APM 34:38 34 minutes, 38 seconds and our target to all the potential uh shippers is new gas price that is 12% of 34:47 34 minutes, 47 seconds Brent and since our major portfolio is already linked to Brent because APM new HPT are 34:56 34 minutes, 56 seconds all linked to Brent so we for diversification we will have the 50% I think it will be 50/50 from 35:05 35 minutes, 5 seconds Henry Hub and rent but if we get some good deals on Henry Hub then I think uh we are open to that but 35:14 35 minutes, 14 seconds our our guidance to them has been that 12% of uh bread should be the uh landed 35:22 35 minutes, 22 seconds price for us got it sir and sir I'm sorry if you have answered this earlier I joined a bit 35:30 35 minutes, 30 seconds late but can you refresh uh your guidance for kix for 27 28 if you can break it down in terms of NCR and outside MCR as well. 35:40 35 minutes, 40 seconds Uh see uh uh uh our core uh core uh business capex we have plans for around 35:50 35 minutes, 50 seconds 1250 crores uh for this financial year out of which we have already uh spent uh 35:57 35 minutes, 57 seconds in 9 months 847 crores and the breakup in terms of like if we say Delhi so 36:06 36 minutes, 6 seconds Delhi is almost around 45% we have spent and UP part is almost uh say you can say 36:14 36 minutes, 14 seconds 30 to 35%. and uh hana is around uh 10% 36:20 36 minutes, 20 seconds you can say so it is like that and so for 27 also can we can expect a 36:28 36 minutes, 28 seconds similar kind of a level so our aspiration or our uh targets are 36:35 36 minutes, 35 seconds uh like that only to around 1200 to500 kores in the core uh uh segment 36:44 36 minutes, 44 seconds got it sir We'll be adding sorry the diversification capex BD capex that will be other than the core business. 36:52 36 minutes, 52 seconds So that 800 500 to 800 crores that will be separate I mean into renewables into 36:59 36 minutes, 59 seconds CBG into LNG infra. So those will be separate. This is only for the core of CNG and PNG. 37:06 37 minutes, 6 seconds And will they start to reflect from 27 onwards or is that slightly longer budget that I was I think from 27 they should start 37:14 37 minutes, 14 seconds reflecting because uh the JV formation and subsequently the cash calls and all will take some 37:20 37 minutes, 20 seconds time 27 onwards they should start reflecting so on an overall basis sir then somewhere between 1,600 to 1700 K is a 37:29 37 minutes, 29 seconds reasonable number to assume for the overall capex for 27 is that maybe around 2,000 you can say 1200 1300 37:37 37 minutes, 37 seconds core and 600 700 double syncation. 37:41 37 minutes, 41 seconds Understood. Thank you so much. Thank you so much and all the best. 37:46 37 minutes, 46 seconds Thank you. Before we take the next question, a reminder to all the participants, if you wish to join the question queue, you may press star enter. 37:55 37 minutes, 55 seconds The next question is from the line of Dwan Patel from Samiksha Capital. Please go ahead. 38:02 38 minutes, 2 seconds Sir in your comments earlier you mentioned we got benefit of reduction in sales tax but we also faced headwinds 38:08 38 minutes, 8 seconds from higher gas cost and forex. Could you break down this impact or how it impacted our gas cost? This seems to be down by 90 pesa quarter on quarter. 38:22 38 minutes, 22 seconds So if you see our exchange rate has gone from say around 86 87 to uh 90 91. So 38:29 38 minutes, 29 seconds around uh 7 to 8% uh uh uh rupe 38:35 38 minutes, 35 seconds devaluation rupee uh devaluation is devaluation rupee uh devaluation is 38:38 38 minutes, 38 seconds there which is uh uh which has resulted there which is uh uh which has resulted 38:42 38 minutes, 42 seconds in in around uh uh two two and a half in in around uh uh two two and a half 38:44 38 minutes, 44 seconds rupees increase in gas cost which was rupees increase in gas cost which was 38:47 38 minutes, 47 seconds partly offset by the uh vat reduction partly offset by the uh vat reduction which happened during the last quarter. 38:50 38 minutes, 50 seconds which happened during the last quarter. 38:52 38 minutes, 52 seconds So around uh 7 to 8% uh uh uh rupe So our gas cost per SPM if you see that is more or less remain same only 60 to 60% reduction is there had these uh 39:01 39 minutes, 1 second rupee devaluation not been there uh our uh gas cost would have been much lower and victim margin would have been much 39:09 39 minutes, 9 seconds higher just on the uh send could you quantify what is the benefit we we get 39:19 39 minutes, 19 seconds uh I don't remember Uh exactly. 39:31 39 minutes, 31 seconds The total impact that we assessed at that time was around 35 to 40 say for SCM. 39:41 39 minutes, 41 seconds And did you get this for the whole quarter or only December? Actually the benefit we got only for the December 39:49 39 minutes, 49 seconds month but for this this quarter it will be for full 3 months. 39:54 39 minutes, 54 seconds Okay understood. Sir I could you give an update on uh on the tender process uh in the Middle East uh that you are participating in. 40:03 40 minutes, 3 seconds Yeah we have qualified for the stage one and we have been in 40:10 40 minutes, 10 seconds given the tender for stage two. So there I think uh we are in the process and bid submission is April 23. So we'll be 40:18 40 minutes, 18 seconds participating in that and uh it looks a very good opportunity in the sense that it is a very planned kind of a thing 40:25 40 minutes, 25 seconds that with CGS is only at a 5500 m distance and the industrial cities are 40:32 40 minutes, 32 seconds planned the gas prices there are much more competitive as compared to alternate fuels. So there is a natural 40:40 40 minutes, 40 seconds uh push for the switch as well as the government push will also be there and each industrial city we in our assessment is going forward would be 40:48 40 minutes, 48 seconds around 1.5 million. So we are looking at four now. So 6 million total is the long-term uh sales potential there. 41:00 41 minutes Sir and since you submitted the bids could you give a ballpark estimate of what kind of capex it entails? 41:07 41 minutes, 7 seconds No, right now the bid final the bid has to be submitted by April 26. 41:14 41 minutes, 14 seconds 23rd April 26 the bid submission date is there. So the job the uh capex calculation is still going on. 41:24 41 minutes, 24 seconds Okay sir and on the uh captive power plant that you are planning uh is there any progress there? 41:31 41 minutes, 31 seconds Actually the uh JV with Rajasthan is taking some time that in the sense that the land allocation because it is being 41:39 41 minutes, 39 seconds transferred from other agency to uh that the other JV partner company. So that is 41:47 41 minutes, 47 seconds taking time. In the meantime for our operational efficiency and other things we are coming out with a 200 megawatt uh 41:54 41 minutes, 54 seconds tender. So that will be through tender route and whoever has got the land and the connectivity CTU connectivity. So 42:02 42 minutes, 2 seconds that is the precondition and they can participate and then we will evaluate that. So that is also on the progress. 42:08 42 minutes, 8 seconds It should come out in next within next month month or so. 42:14 42 minutes, 14 seconds Okay. Thank you so much. 42:19 42 minutes, 19 seconds Thank you. The next question is from the line of Vikas Jen from CLSA. Please go ahead. 42:27 42 minutes, 27 seconds Hi sir, thanks for taking my questions. 42:29 42 minutes, 29 seconds Uh sir for simplicity if if you were to look at volume growth that you have reported this quarter X of the changes 42:39 42 minutes, 39 seconds that we have seen for DTC buses what would that number have been? I know you've shared a few numbers and like a little lost on that but if you were to 42:47 42 minutes, 47 seconds just take out the DTC and X of that what would the volume growth be either CNG or overall volume growth? overall would be 42:55 42 minutes, 55 seconds around 9.6 in that case 9.87 9.87 43:01 43 minutes, 1 second okay so uh CNG overall 98 43:07 43 minutes, 7 seconds sorry overall overall would be 9.43 43 is the overall okay 43:16 43 minutes, 16 seconds you can say around from 150 we have down to 6,000 so that is the change 43:24 43 minutes, 24 seconds 150 is in kgs so it will be around from 2 to say 10 so 1.1 9 43:34 43 minutes, 34 seconds so you can add 2 to that so 9.63 63. 43:38 43 minutes, 38 seconds Okay. Uh so yeah, 9.63 versus 9 one, right? 43:48 43 minutes, 48 seconds Yeah. Yeah. 9.11. Yeah. Yeah. Exactly. 43:53 43 minutes, 53 seconds That's a 6% growth, right? 44:01 44 minutes, 1 second Uh uh we are talking in KG terms. Uh If I tell you the last year, last year 44:08 44 minutes, 8 seconds number uh overall CNG sales was 47.55 lakh kg. 44:14 44 minutes, 14 seconds Uh if I remove the DTC and dim sales, it is 44.14 lakh kg. Current year our total 44:22 44 minutes, 22 seconds was 50.01 lakh kg per day. If I remove the DTC and dim sale, it is 48.63. 44:29 44 minutes, 29 seconds So from 44.14 lakh kg to 48.63 60 lakh kg per day of sales which is a increase 44:36 44 minutes, 36 seconds of 4.49 49 uh lakh kg per day 10% which is 10.17% of CNG sales. So 10.17% 44:45 44 minutes, 45 seconds is the growth for CNG segment if we exclude DTC and depths. 44:50 44 minutes, 50 seconds So DTC now for all practical purposes of course it might be still impacting the base for 5,000 is the number in the current 45:00 45 minutes quarter. Uh so Q4 uh sorry Q3 of next year will be the period when you will 45:06 45 minutes, 6 seconds not see any impact of DTC sales going down. DIMs might still be uh having some 45:13 45 minutes, 13 seconds impact there but probably this 1.32 lakh kg sales of dims which we uh we had in 45:20 45 minutes, 20 seconds this quarter uh probably next two three years uh I think it is going to be there and then probably it will go down. Sorry 45:29 45 minutes, 29 seconds you mean that 1.32 lakh kg sale is going to continue next two to three years that's what is 45:37 45 minutes, 37 seconds at that kind of a level at roughly at that kind of level not no no no major declines okay so the the bigger part of the 45:44 45 minutes, 44 seconds decline which was impacting headline growth is now done kind yeah it is almost done and whatever is 45:52 45 minutes, 52 seconds left like by by Q4 it will be almost zero that we can this drag which is there that will be there for maybe next two to three 46:00 46 minutes quarters probably Q3 of the Q7 is when we'll not see any drag and the normal growth in reflecting 46:08 46 minutes, 8 seconds the overall okay and uh so sir so that is where you get the confidence that from here on you'd roughly be adding uh growing at about 10%. 46:18 46 minutes, 18 seconds Yes. Okay. 46:20 46 minutes, 20 seconds Yes. Yeah. And uh just to understand so you did explain that there are these uh 46:27 46 minutes, 27 seconds the two three elements with which margin should be higher. So uh based on that 46:34 46 minutes, 34 seconds roughly 1 rupee plus should be higher gross margin for the next for this this quarter this coming this quarter where 46:41 46 minutes, 41 seconds we are in based on those you said 75 pesa net plus about 25 pesa from Gujarat 46:49 46 minutes, 49 seconds uh and I think there was one more thing right labor code implementation one time 30 pesa that will be I mean 25 pesa that 46:58 46 minutes, 58 seconds will be come from there so 1.25 25 you can say. 47:01 47 minutes, 1 second Okay. So that you think is broadly weather that we are dealing with right now. Yeah. 47:08 47 minutes, 8 seconds Plus uh in case uh we are able to add CVG. So that as you are aware that CBG like size duty exemption has come. 47:19 47 minutes, 19 seconds So that I mean it depends on us now that how we are able to ramp up our uh CBG uh in our network. 47:30 47 minutes, 30 seconds Okay. So, uh but would that be very material immediately? No, I mean it'll take some time for it to immediately. I mean it will take 1 year 47:38 47 minutes, 38 seconds or so to be going from 1% to 5%. 47:44 47 minutes, 44 seconds So 5 to 10% if you are able to do that will be have a material impact. Okay. Okay. 47:50 47 minutes, 50 seconds uh and and uh in terms of your uh sourcing you are confident that most of it you would not have to depend so much 47:59 47 minutes, 59 seconds on LNG I mean most of it will come from new well gas uh uh is what you think no 50% we said going forward the we are 48:08 48 minutes, 8 seconds yeah incremental also the 50% uh anyway we have to be sourcing from uh say half a 48:15 48 minutes, 15 seconds million every year we will be adding Okay. Okay. 48:20 48 minutes, 20 seconds So next year I think some HPT gas is also coming in which we will get apart from NWG some HPT gas is getting freed 48:28 48 minutes, 28 seconds up. I think that will also come to market. 48:31 48 minutes, 31 seconds So 50% we are expecting that we will have to source additionally. Okay. Sure. Okay. Thank you so much sir. 48:40 48 minutes, 40 seconds Thank you. The next question is from the line of Nitan Tari from Philip Capital India. Please proceed. 48:47 48 minutes, 47 seconds Um hi sir. Thanks for the opportunity. 48:50 48 minutes, 50 seconds Uh just wanted to understand uh to what percentage of your gas sourcing is the Gujarat Vat applicable the Gujarat Vat 48:57 48 minutes, 57 seconds this year 43%. The APM it's only applicable to the APM not to 49:06 49 minutes, 6 seconds LM which is also 7% is 7%. So you can say 50% of the gas 50 50% of the gas. Okay. 49:15 49 minutes, 15 seconds Yeah. and and WG right sir and and secondly sir uh you indicated the DTC volume for the base 49:23 49 minutes, 23 seconds quarters um so if you can also indicate the dims volume for the base quarter as well as uh for the second quarter 49:32 49 minutes, 32 seconds I'll tell you the DTC and dim volume again for the current quarter DTC volume was 5,000 kg per day 49:40 49 minutes, 40 seconds okay volume was 1.32 lakh kg per day 1.3 32 lakh. Okay. 49:47 49 minutes, 47 seconds The previous quarter BTC volume was 44,000 kg per day and volume 1.47 lakh kg per day. 49:56 49 minutes, 56 seconds Sorry that was not clear. Please uh say that again. 50:01 50 minutes, 1 second 144 lakh kg for BTC 1.47 lakh. 50:07 50 minutes, 7 seconds Okay. And and the base quarter, yes. And the base quarter was the DTC was 1.55 lakh. 50:16 50 minutes, 16 seconds Okay. And was 1.85 lakh. Understood sir. 50:24 50 minutes, 24 seconds Thank you so much sir. 50:28 50 minutes, 28 seconds Thank you. We take the next question from the line of somaya from Aventis. Please proceed. Yeah. Thanks for the opportunity sir. 50:37 50 minutes, 37 seconds One clarification. So in this quarter we said 50% is uh RLNG within this can we 50:44 50 minutes, 44 seconds give a sub break up in terms of u spot and henry up and bent link contracts. 50:53 50 minutes, 53 seconds So broadly spot was not there that you can bought any spot uh some quantity we 51:00 51 minutes had got from IGX uh which is generally the HPST gas available on uh available there. uh so YGX uh we bought maybe one 51:09 51 minutes, 9 seconds or two% of the total requirements and uh apart from that uh our Henry hub and print linked contract RLNG contracts are 51:18 51 minutes, 18 seconds in the ratio of around 60 to 40 out of the total RLNG around 40% is Brent 51:24 51 minutes, 24 seconds linked and around 60% is got it sir now also we have a bit of a 51:32 51 minutes, 32 seconds flexibility in terms of uh the entry of contract uh I mean we In case of the cost we do have so we can push it 51:39 51 minutes, 39 seconds depending on in case we feel Brent is relatively lower so we have the flexibility is that yes yes it is there 51:48 51 minutes, 48 seconds got it sir sir also uh the next couple of year cex so you did mention about the trajectory there so in terms of CNG 51:57 51 minutes, 57 seconds station additions uh what we plan to put and um within this how much it goes into the pipeline so broadly and what kind of 52:04 52 minutes, 4 seconds volume you know contribution maybe over the next two three years this can contribute the capex that we are spending over the next couple of years. 52:12 52 minutes, 12 seconds So roughly uh around 80 to 100 CG stations we are targeting uh year over 52:19 52 minutes, 19 seconds year for uh maybe roughly next 3 years or to 5 years. So uh out of uh the total 52:28 52 minutes, 28 seconds capex almost uh you can say 40 to 45% uh will go on the CNG and uh balance will 52:37 52 minutes, 37 seconds be on the steel pipeline network as well as the MDP. So it will be like that and uh as mentioned earlier the total 52:46 52 minutes, 46 seconds overall incremental volume we are anticipating 1 million to add year on year. So out of this around you can say 52:55 52 minutes, 55 seconds 65 to 70% will uh come from CNG and the around uh 53:01 53 minutes, 1 second uh maybe 30 35% maybe from the PNG both industrial commercial and the PNG. 53:09 53 minutes, 9 seconds Got it. If you take number of stations 100 stations perom average selling 6,000 53:16 53 minutes, 16 seconds kg per station it will be around 6 lakh kg which translates to around 8.8 8 million cubic meters per day of sales 53:26 53 minutes, 26 seconds 100 station.8 8 million is the number which you can add from CNG and PNG is growing at 53:34 53 minutes, 34 seconds around 12% 14%. Uh depending upon industrial uh volume is dependent upon 53:41 53 minutes, 41 seconds prices. So that's growth also. So both put together 1 million is something which is very achievable. 53:51 53 minutes, 51 seconds Sir within this 100 stations um between the gas I mean Delhi NCR and other new 53:57 53 minutes, 57 seconds GS how would this uh see you can see it all depends uh we 54:05 54 minutes, 5 seconds have the target for 100 80 to 100 and uh we are scouting for u land in Delhi also 54:12 54 minutes, 12 seconds as MD also mentioned for the queueing part and uh we are also anticipating uh 54:18 54 minutes, 18 seconds uh the the DTC holds stations hybrid and all uh they are also offering these sites in Delhi. So uh if uh what we 54:28 54 minutes, 28 seconds expect if it goes on so almost say 25 to 30% uh we should get uh in Delhi also 54:37 54 minutes, 37 seconds and uh otherwise mostly it will be outside uh uh GS u and uh somewhat in uh Gazyabad and uh NCR part also. 54:50 54 minutes, 50 seconds Okay. So one last question. So in terms of uh opportunities for uh you know getting into the other gas or inorganic 54:58 54 minutes, 58 seconds for in general uh in terms of the recent MWPs and what are the opportunity sets or is there a chance for a consolidation 55:06 55 minutes, 6 seconds in the industry in the next couple of years uh because of some bit of uh aggressive bidding on the MWP side. Is there an opportunity set still available and then how are we looking at it? 55:16 55 minutes, 16 seconds Actually the this is a regulated you know licensed kind of a business. So here 55:24 55 minutes, 24 seconds unless the some regulations are modified and facilitated 55:31 55 minutes, 31 seconds for these mergers and acquisition it will be very difficult because all those DAs will be carrying huge penalties and 55:39 55 minutes, 39 seconds that will deter the potential buyers and unless something is thought on those lines but how do you make it possible 55:48 55 minutes, 48 seconds something similar to say NCT mechanism or something like that is thought of that uh with those kind of penalties it 55:56 55 minutes, 56 seconds will be difficult for them to sell it also because they they are right now in negative you know valuations are in 56:03 56 minutes, 3 seconds negative zone. So it that I think uh is a potential bottleneck for M&A but we 56:12 56 minutes, 12 seconds are we see that going forward if we have to achieve the kind of growth the mergers have to take place the smaller entities with going day by day will find 56:20 56 minutes, 20 seconds it difficult because the sourcing is now becoming a very very critical aspect and those who are able to source will uh give the benefit to the consumers. 56:32 56 minutes, 32 seconds So that is our assessment of the situation because players are there who are ready to you know uh bid for those 56:42 56 minutes, 42 seconds amend activities but the field is not right you know the penalties and other things they will have to inherit those also. 56:54 56 minutes, 54 seconds Thanks for your thoughts. Thank you. 56:57 56 minutes, 57 seconds Thank you ladies and gentlemen. We take that as the last question for today. I would now like to hand the conference over to the management for closing comments. 57:09 57 minutes, 9 seconds Yeah. Uh thank you all the minister for participating in the uh earning call of IGF. Uh thank you Mr. Vad Rajan and 57:19 57 minutes, 19 seconds stop broking. Uh we will meet again in the month of April or May uh with better set of results. Thank you so much. 57:30 57 minutes, 30 seconds Thank you. 57:31 57 minutes, 31 seconds On behalf of Antic Stop Broking Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.