Bharat Forge Ltd (NSE: BHARATFORG) Q3 2025 Earnings Call dated Feb. 12, 2025
Corporate Participants:
Amit Kalyani — Vice-Chairman & Joint Managing Director
Kedar Dixit — Chief Financial Officer
Analysts:
Gunjan Prithyani — Analyst
Jinesh Gandhi — Analyst
Kapil Singh — Analyst
Mumuksh Mandlesha — Analyst
Arjun — Analyst
Nitin Jain — Analyst
Pramod Amthe — Analyst
Presentation:
Operator
Hello, ladies and gentlemen, good day, and welcome to the Q3 and Nine Months FY ’25 Earnings Conference Call hosted by Bharat Forge Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should any assistance during the conference call, please signal an operator by pressing star and zero on your touchstone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr Amit Kalyani, Vice-Chairman and Joint Managing Director, Limited. Thank you and over to you, sir.
Amit Kalyani — Vice-Chairman & Joint Managing Director
Good afternoon, ladies and gentlemen, and thank you for attending our Q3 conference call. This is Amit Kalyani. I have with me members of our finance team, Investor Relations. I will now hand over to Kedar Vikshit, our CFO, to take you through the numbers and then I’ll make a few comments and then we’ll do a Q&A.
Kedar Dixit — Chief Financial Officer
Good afternoon, ladies and gentlemen. I’ll take you through the standalone business first. Quarter three performance was soft given the demand conditions in our underlying markets. Our top-line was low by about 7% at INR2096 crores, while the margin was stable at about 28.1%. Europe continued to struggle with dynamic demand impacting both CV as well as EV exports. Our defense vertical also recorded lower revenues as lumpy nature of the business continued to impact the performance. Talking about domestic passenger vehicles recorded a sharp rebound in performance-driven by a better penetration with our customers. Our return ratios continue to hold steady with ROCE net of cash coming to about 19%. The standard of business won orders worth about INR723 crores in this quarter. Talking about overseas business, a combination of weak demand in Europe and some customer-specific weakness impacted performance of our overseas business. In-quarter three, the European operations posted EBITDA of about INR10 crores, while US operations reduced their EBITDA losses to INR6 crores in this quarter. Talking about Indian subsidiaries, JSE continued to register strong performance. In-quarter three, it had grew revenue by 20% to reach INR166 crore and margins have improved by 50 basis-points to scale-up to almost 14%. With significant customer and product diversification achieved over the last two years, JSE has been able to significantly derisk its revenue stream. The Europlus One team and JC’s strong competence are likely to see it for the business to scale-up to INR1,000 crore top-line over next two years. Talking about defense business, group’s defense business posted a revenue of around INR337 crores in-quarter three. As of nine months this year, the revenue was INR1,488 crores, translating a Y-o-Y growth of 49%. With order wins of about INR100 crores in-quarter three, the exhibitable order book as now stands as of December 21st is INR5,700 crores. This order book does not include any potential orders from domestic or export market. We would like to reiterate that translation of order book to revenues is governed by contractual timelines and thus may create some lumpiness in performance when viewed from a quarter-over-quarter standpoint. However, from a two to three year perspective, the business remains on a solid footing with capabilities across guns, vehicles and consumables. Talking about consolidated business highlights for the nine months. On a Y-o-Y basis, consolidated revenues were 2% lower at INR11,270 crores, while the EBITDA grew by 9.1% to reach at INR207 crore and PBT increased by 15% to INR1,224 crores. There has been an increase in EBITDA margin by 190 basis-points Y-o-Y to reach to 18.5% for the first-nine months with bulk of improvement driven by Indian entities. Our consolidated balance sheet continues to remain robust with ROCE of 16.5% as of December ’24. More importantly, leverage has gone down as QIP funds were deployed to pay-down the debt. The resulted gearing position has improved with net-debt to equity improving to 0.36 as of 31st December ’24. The company has secured new business worth INR2,616 crores in April to December period across defense, aluminium and ferrous costings and core coating business. And balance sheet continues to remain strong with ROCE and improving amongst liquidity of strong liquidity position. I will hand over to for auto parties.
Amit Kalyani — Vice-Chairman & Joint Managing Director
So ladies and gentlemen, I thought we’ll adapt adopt a slightly different approach to our con-call this time. Let’s break-up the performance into what was great, what was good and what was not-so-good. I think on the great, I think the new business verticals that is casting and aerospace are doing well and I expect it to continue doing so. For aerospace, we have now approved a new investment of machining of landing gear components and a ring mill to manufacture high-precision forgings for the growing demands of the jet engine components globally. This will help increase our business in the aerospace sector quite substantially with business that has been tied-up. So this will be a new accelerant for our aerospace business. On the casting space, we continue to witness excellent customer traction. Subject to demand holding up, we should be able to hit an annualized run-rate of INR1,000 crores, we’re hoping within the next six to eight quarters. I’m fairly confident within the six to eight quarters. Additionally, we expect to see the margins increase by at least 250 basis-points to 300 basis-points from where we are in the next two years. So that will give us excellent return on capital employed, asset turnover and also help us grow the business through internal accruals and generate returns and free-cash flow for the company. On the good, I think the standalone and defense business have displayed resilient performance in the quarter, but the standalone business given where we are in the cycle, with the weakness in Europe, et-cetera, the operational profitability has held up pretty well in the 28% range. On defense, we will see accretion to the order book before March-end as the domestic ATAC orders and other new orders will get tied-up and we are working on significant new opportunities, including participation in the IDEX in Abu Dhabi next week, where we hope to increase our visibility and our market access. On the not-so-good, quite frankly disappointing has been the overseas operations. A combination of weak utilization because of demand reduction in Europe and also in the US, there was a demand slowdown. There is a huge transition taking place between this EV to IC again. You may have seen announcements by two European OEMs in this week that they will each spend upwards of EUR1 billion to retool their planned new IC platforms for hybrid and also full IC platfor platforms going-forward. So clearly, there is some amount of, let’s say, rethink on the full electrification bandwagon. But yes, this is a temporary issue. Fact is cars will be made. And I think that in six months, we’ll have a concrete answer on the way forward. As we have mentioned, we are going to focus on returns, we’re going to focus on cash flows and businesses have to be profitable and stand-on their own feet going-forward. Overall, at a company-level, I think I’m optimistic about how the businesses are progressing. Except for the overseas subsidiaries, I think that the US business will see a fairly good progression in the next six months and the European business we are as I said, give us six months-to give you a concrete answer. We are in unpredictable times. We are in times where in addition to all the geopolitical issues, we also have new governments making new policies, so we have to wait-and-watch and see what that means. Means but as you have seen in the past we have you know gone through inflection points and come out stronger so hopefully the same thing will happen this time as well okay. I think I will be — I’ll just make a few more comments. On the India CV outlook, we expect Q4 to be slightly better than Q3. Q — the FY ’26 will be far or less — more or less flat. As of now, the North American CV market is expected to be buoyant with a 10% growth, but in the second-half of the year. So that’s the outlook. Europe is flat, too unpredictable. We don’t have much of an answer there yet because there are lots of governments where elections and changes are taking place, including Germany. But I think we have to wait-and-watch.
So I think I’ll be happy to take your questions, comments and me and our team will be — will attempt to answer your points. Thank you.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchstone phone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question comes from the line of Gunjan Pikkani from Bank of America. Please go-ahead.
Gunjan Prithyani
Yeah, hi. Thanks team for taking my questions. My first question is on the overseas subs, which pointed out quite a challenging environment. You do also talk about rethinking your manufacturing presence in the overseas business. Could you share more around this because it certainly seems that Europe will take a lot longer to turn-around than what we were guiding initially. So how should we think about the losses coming down there or how should we think about the business restructuring that you talk about in the presentation.
Amit Kalyani
Yeah, hi,. So very — in a very simple way, let me answer. Right now, there is a lot of uncertainty about policy, about you know what is going to be the way forward? Is it a global world, is it a regional world? So like I said, we are undertaking a thorough review of our manufacturing footprint. And within six months, we will have a concrete way forward.
Gunjan Prithyani
Okay. And is it fair to assume that the losses that we are seeing roughly about INR90 crores PBT loss or in the European business, that sort of stay — will remain at elevated levels for another two or 3/4 till we find a more lasting solution to this.
Amit Kalyani
I think they’ll be in the ballpark. Obviously, our attempts will be to try and reduce them. But like I said, we need two quarters more by which time we will have full clarity on our decision. Okay. Everything is based on the current demand in the market. But we are going to take a decision based on a number of factors and we need about six months for that.
Gunjan Prithyani
Okay, got it. And the second question was on the — the defense ATACs order. What are the refresh timelines there? When do we see that adding up in the order book? Anything that you can share on order book?
Amit Kalyani
So there are three steps of the process. One is the contract signing, then you have FOPM, which is the first of production. And then you have series deliveries. So I think for series deliveries to start, we are at least 15 to 18 months from now.
Gunjan Prithyani
And if I understand that correct, that means revenue approval to start is at least 15 18 months, right?
Amit Kalyani
15 months-to 18 months is for the series deliveries to start. But contract will be signed in the next, I would say three to four months maybe even little sooner.
Gunjan Prithyani
Okay. Got it. And last question, if I can just — I know it’s very — there’s a lot of uncertainty on this whole tariff noise. Is there anything that you are sort of hearing from your customer-base because Class-8 truck does have a pretty dominant Mexico presence, right? So is — how should we think about this?
Amit Kalyani
There is no clarity on this yet. So if you’ve seen the verbiage coming from the White House, you know, they first talked about commodities. Then next week they’re going to talk about passenger cars, then they will talk about other things. So I think we have to wait-and-watch.
Gunjan Prithyani
And then EPA emission also sort of goes on a back-burner for some time because you don’t know-how the emission regulation evolves under the current regime. Is that the way we should think about it? A lot of uncertainty.
Amit Kalyani
If you’re talking about the US, yes. Generally speaking, there is uncertainty, but there are certain states where the emission requirements or the emission laws are different from the whole country. For example, California. California has its own Cafe regulations, California, air, something image, whatever, air something. So carb and cafe, air regulation board or whatever it is. So they have their own emission standards. So those will go-ahead no matter what. But that represents only a small percentage of the overall US automotive market. I think in general, there is going to be a rethink on the whole you know, green push in the US that is what we are hearing from the President.
Gunjan Prithyani
Okay. Thank you so much. I’ll join back-in the queue.
Amit Kalyani
Yeah. Thanks. Thank you.
Operator
Next question comes from Jinesh Gandhi from Ambit Capital. Please go-ahead.
Jinesh Gandhi
Yeah, hi. Amit, a couple from my side. So, your comment on margin expansion of 250 to 300 basis-points in next two to three years that was for JSO or at a consol level?
Amit Kalyani
Castings business, yes.
Jinesh Gandhi
For the castings business. Okay. And this would be primarily driven by operating leverage or you expect that Russian business to come back, which had impacted margins?
Amit Kalyani
Combination of operating leverage, cost-reduction, value product mix?
Jinesh Gandhi
Okay. Okay. Got it. And secondly, with respect to your comment on and what is happening in US with respect to US and Europe with respect to EV trend reversing. Do we see any risk to our aluminum forging business in both US and Europe because of the?
Amit Kalyani
Because aluminum forgings and aluminum, in fact is going to be common no matter whether it’s pass — whether it’s EV or it’s gasoline.
Jinesh Gandhi
Okay. Got it.
Amit Kalyani
Agnostic, completely agnostic for that.
Jinesh Gandhi
Got it. And last question pertains to our CapEx expectation for FY ’26, given that we are also now investing on the aerospace side and also the ongoing doubling of capacity in US for aluminum forging. So what should we budget for capex for and..
Amit Kalyani
For the capex for the US is done, okay and in India, we mentioned that we are setting up some new facility for aerospace and that is already now tied-up. We will announce that — I mean that is now going to take place. And I just want — and I’d like to let you know that we have signed a long-term agreement with a European company to collaborate to set-up a manufacturing facility to manufacture cutting-edge landing gear and other aerospace components for global OEM requirements. So this is the first-of-its-kind in India and will be a big boost to our overall aerospace capability and business be unique for this part of the world.
Jinesh Gandhi
Got it. So overall FY ’26 on standalone basis, would we investing close to about INR400 crored crores or to be lower than that?
Amit Kalyani
No, I would say about 300 odd crores.
Jinesh Gandhi
Okay and similar for subsidiaries, total capex of INR600 crore in at consol level.
Amit Kalyani
Subsidiaries, only investments in subsidiaries will be in India, nowhere else. Okay. And I don’t think that will exceed maybe INR200 crores INR250 crores at the motion.
Jinesh Gandhi
Got it. And just one clarification on the US operations now losses — EBITDA losses have reduced to just about INR6 crore on quarterly basis. This would be at what level of utilization? Are we close to 80%, 85% there now?
Amit Kalyani
Utilization is currently at about 60%.
Jinesh Gandhi
60%, you said. Okay. Got it.
Amit Kalyani
We have reduced costs a lot and we have improved efficiencies.
Jinesh Gandhi
Got it. Got it. Great. Thank you and all the best.
Amit Kalyani
Yeah, thanks.
Operator
Thank you. Yes. Next question comes from the line of Kapil Singh from Nomura. Please go-ahead.
Kapil Singh
Good evening, sir. My question is on export industrial revenues. We have seen a good growth over there. Could you give some color for that? And also aerospace, any — like any numbers you can give on what is the current revenue and what is the potential of these facilities that we are setting up?
Amit Kalyani
So we have — you know, like we said last year, when we spoke, our oil and gas — I mean, sorry, our aerospace revenues are currently running at somewhere in the region of, INR60 crores INR70 crores, INR50 crores INR60 crores a quarter. So we expect this to go to triple-digits by next year per quarter. And this new facility that we are adding can you know almost help us double that capacity. This becomes our path to crossing 100 million going towards 150 million to million of business.
Kapil Singh
Okay. Thanks. And on the industrial business, if you could give some color, because we saw good growth over there.
Amit Kalyani
On the industrial business, the only area where we have seen a degrowth is on the high-horsepower engines and that is temporary because of some amount of inventory in the system, otherwise, the business is doing quite well. Rail has in a small dip as well. That’s the only other thing.
Kapil Singh
So I was asking about the export industrial business, which has gone from INR360 crores.
Amit Kalyani
Not export only. Export industrial has been more or less flat. I mean it’s been up by about 8%, 7%, 8% over last year.
Kapil Singh
Yeah. So which segments have grown, that’s what I would.
Amit Kalyani
Oil and has grown significantly. Aerospace has grown by almost 25%. Understood. Oil and gas and aerospace have grown.
Kapil Singh
Okay. And sir, in India, you have mentioned that there is some capex slowing down and that has potential to impact industrial business in the near-term. Which segment could be affected there?
Amit Kalyani
Okay. I could understand your question, sorry.
Operator
May we request you use the handset please?
Kapil Singh
Yeah. On Slide 4, we have mentioned that despite capex momentum slowing down and its potential impact on industrial business,
Amit Kalyani
A slowdown is basically in two areas. One is on infrastructure and the second is on new capital formation in industrial sectors. So power plants, water projects, these are really — there’s no big capex that is taking place. Like in ’15 ’16, the big capexes that were announced or 14 ’15 in these mega power projects, in these mega projects, those have now come to an end. The next set of these mega projects are now yet to start?
Kapil Singh
Understood. And sir, lastly, just wanted to understand the exposure in case of exports, so is there export going from Europe to US for either Bharat or from Bharat customers?
Amit Kalyani
No, not much. Very small.
Kapil Singh
And the tariffs which have been put in US on steel and aluminum, is there any impact on the company or these will be passed on to the customer
Amit Kalyani
So we don’t know that yet, as I told you. We don’t know what the tariffs are, you know-how they will be calculated, what is the base, what exactly are the HSM code. We don’t know that yet.
Kapil Singh
Okay, sir. Understood. Thank you. Thanks and all the best.
Operator
Thank you. Thank you. The next question comes from the line of from Anand Rathi Institutional Equities. Please go-ahead.
Mumuksh Mandlesha
Yeah. Thank you, sir, for the opportunity and good to see the two more business going to touch INR1,000 crores. Sir, firstly, just on the previous question, can you help us what was the revenue for oil and gas for this quarter and for nine months, sir?
Amit Kalyani
For the quarter I’ll tell you the growth. The growth over last year is almost over 60% to 70%. Got it. Got it. And I mean, nine months, the growth is about 30%, 20%.
Mumuksh Mandlesha
And sir, recovery has been driven — driven, I mean, any indication going ahead how do you see the growth for this segment?
Amit Kalyani
See the oil and gas sector in the US is limited by only one thing and that is the ability to get the gas out of where it is where it is coming out-of-the ground to where it is consumed or where it is converted into some other product. The only place today where they can do that is Texas, where within Texas, the oil and gas that is pumped is being consumed in various different industries in Texas. But many of the other states where they are, you know, generating shale oil or shale gas, they are not able to — their pipelines aren’t in-place. So if you remember what President Trump said when he came to office is, I want to get the Keystone pipeline done so that the benefit of the gas and the for the economy in the form of cheap energy will start. I’m sure you saw that. So that is going to lead to a big infrastructure boom in the US and infrastructure boom in the US in such sectors will lead to a virtuous cycle where a lot of other sectors will get benefits. So construction sector companies like Caterpillar, all these companies, companies that make power-gen equipment, all of them will get benefit. So we expect that very, very shortly, once the pair — the shovel hits the dirt, you will start seeing the impacts of this.
Mumuksh Mandlesha
Got it, sir. Sir, coming to defense segment, just in near-term, sir, next few quarters, how do you see the run-rate for the defense revenue, sir?
Amit Kalyani
So I would say that I would look at the defense on an annual basis rather than a quarterly basis. So we had guided that we will see a close to 50% growth in a 40% growth Y-o-Y. And I think we should be fairly close to that, maybe a little less than that because of some of the delays in the processes that we had thought will be passed. But once that happens, I think it will catch-up.
Mumuksh Mandlesha
Okay. Got it, sir. And sir, the recently there was a new MOU with the L3 Harris. Anything just to indicate what kind of opportunity this business can bring, sir
Amit Kalyani
That is yeah, that is a sector policy for I C4I, it is L3Harris is one of the largest companies in the whole imaging and electronics that are used in defense and this very large company, L3 Harris and these are new sectors that we’re getting into related to defense, electronics and systems for you know, for India.
Mumuksh Mandlesha
Yeah, got it, sir. Sir, lastly, you have mentioned in the presentation about the nuclear segment of nuclear industries opportunity. Can you indicate how we are shaping up for this segment?
Amit Kalyani
Yeah. So there are two facets to the nuclear sector. One is the conventional large nuclear power plants that are coming up, which are either NPCL technology or foreign technology. These are typically 700, 2,000 or 1,200, 1,400 megawatt per unit. And each location is multiple units. So it can be anywhere from four to six units. If you remember, was supposed to be 1,600 into 6, which was 9,600 megawatts. So those are the mega nuclear power plants. Now India has an installed-base of roughly, I think about 10,000 or 11,000 megawatts of nuclear power. I think that is going to more than triple in the next 10 years with the projects that are announced and underway. Plus now globally there is a push for SMR, which is small modular reactors because of the huge energy requirements of data centers and also of EVs. So hand of a lot of other sectors which are going to consume a non-fossil-based fuel energy could be to generate hydrogen or whatever. So these are going to be big opportunities and even the Indian government has talked about allowing SMRs and private sectors to get into this. So this is another opportunity.
Mumuksh Mandlesha
Got it, sir. Just — I mean, any revenue currently, sir, from nucleus segment, sir?
Amit Kalyani
Yeah, yeah. We are a — we generate anywhere between, I would say INR50 crore to INR100 crores a year depending on the how much orders are there in the system. Every power plant in India has parts made by us
Mumuksh Mandlesha
In any order books for going ahead soon for the.
Amit Kalyani
We have a continuous order book in this sector, but it’s not very large. It’s basically every time they are building a new power plant, they place orders on you know for various different parts. So we make both the material and the components that come out of this. These are typically big parts anywhere in weight from 5 tons to 30 to 40 tons single piece.
Mumuksh Mandlesha
Understood, sir. Thank you so much for this opportunity.
Amit Kalyani
Thank you.
Operator
Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants in the conference, please restrict your questions to two each. If you have any follow-up questions, please rejoin the queue. The next question comes from the line of Arjun from Kotak Mahindra Asset Management. Please go-ahead.
Arjun
Thank you for taking my question. Sir, the first one is given in light of what comments also you’ve made and with change in the regime in the US, so effectively, we had come up with this last man standing strategy in terms of continuity of business. So in the current context, do you see that the longevity of our business has possibly increased? And could you comment on how you see competitive pressures, etc as a result of this?
Amit Kalyani
I think it’s too early to comment on that level of detail because we don’t know. I mean, generally, if you want to ask me, I think the longevity has gone up. But if you want me to specify, I don’t think I’m able to because on one-side, longevity has gone up, on second side, you have top of tariffs and other things. So it’s very difficult to be able to what do you Call-IT, to bridge both and to come up with a total picture of where we stand. Fair enough. Can we say this that we have a strategy where we are able to utilize our assets to do multiple things. And I think it just allows us a little more flexibility and a little more breathing room to make a longer runway with our existing products, especially because a lot of the OEMs have already started the process of de-integration, so it gives us some bigger, newer opportunities going-forward.
Arjun
Sure. Sir, the next question I had was on the defense piece. So you did mention, say, for, us, etc., series delivery may take 15 months. Is that for all such contracts because hearing they are possible contracts
Amit Kalyani
Contracts export contracts can be much sooner, but domestic contracts, there is a pretty lengthy process.
Arjun
Okay. So if we do get export contracts, that could possibly be done, revenues may hit the revenue line-item.
Amit Kalyani
We got export contracts and it translated into revenue in under six months.
Arjun
Fair. So the last question is product that we already make. Right. So the last question.
Amit Kalyani
Increase the number of products that are already in our ready-to-make category, this marketplace becomes bigger for us.
Arjun
Perfect. Lastly, sir, there was a news report of us possibly entering the semiconductor space. Just wanted to understand what are we targeting, what products are we looking at for this space?
Amit Kalyani
It’s too early to talk about that in detail. So I think we’ll talk about that at some later point in that.
Arjun
Sure. Thank you and wishing you all the best.
Amit Kalyani
Thank you.
Operator
Thank you. The next question comes from the line of Nitin Jain from Fairview Investment Private Limited. Please go-ahead.
Nitin Jain
Yeah. Thank you for the opportunity and congratulations on the resilient quarter. So most of my questions have been answered, but I just need a few clarifications. So for the aerospace business, you’ve given the triple-digit quarterly revenue guidance. So can we expect that from Q1 FY ’26 or more like exit
Amit Kalyani
Not Q1. But in FY ’26, we would expect that.
Nitin Jain
Right. And by when would the new facility be operation?
Amit Kalyani
This will be operational in ’27 towards the end of ’27. It takes about 18 months.
Nitin Jain
Okay. And your comment that FY ’26 would mainly be flat. So was that just for the CV business or consolidated?
Amit Kalyani
No, right now, given the pluses and minuses, I would say it’s overall, but it doesn’t mean that on a profitability level, it will be the same because we are hoping that we will reduce losses in our overseas subsidiaries.
Nitin Jain
Okay, that’s helpful. Thanks so much.
Operator
Thank you. The next question comes from Pramod from InCred Equities. Please go-ahead.
Pramod Amthe
Yeah, hi. Thanks for the opportunity. First, I wanted to check, in the domestic passenger vehicles, you have been consistently improving revenues in-spite of the demand slowdown. What’s going the right here for you?
Amit Kalyani
So we have new customers and new products, that is what is helping us,
Pramod Amthe
Okay. And you expect that trend to continue in-spite of a slowdown,
Amit Kalyani
Trend to continue because most of our customers who have — who we have got in the last few years are increasing their localization. And that is where we are now supplying a lot of new components, both engine transmission, chassis, especially transmission components, etc. So that is a big growth area.
Pramod Amthe
And looking at of expo where there have been series of EVs unveiled by the car makers and considering your improved presence in cars. Is there any components you are winning even in the EV space for domestic manufacturing?
Amit Kalyani
Yeah, we are making rotor shaps. We are making a lot of aluminum parts for electric car companies one more time.
Pramod Amthe
This is helpful. Thank you.
Operator
Thank you. Ladies and gentlemen, we will take that as our last question for today. On behalf of Bharat Forge, that concludes this conference.
Amit Kalyani
Thank you. Ladies and gentlemen, thank you very much for your participation and interest. It’s always great to have a good dialogue with our investors and analysts. And we look-forward to continuing this engagement and keeping you abreast of what’s happening in our business. Thank you and have a nice day.
Operator
Thank you. On behalf of Bharat Watch, that concludes this conference. Thank you for joining us. You may now disconnect your lines.