Concord Enviro Systems Ltd (NSE: CEWATER) Q3 2025 Earnings Call dated Feb. 14, 2025
Corporate Participants:
Prerak Goel — Director, International Sales
Prayas Goel — Director
Analysts:
Maulik Patel — Analyst
Dhavan Shah — Analyst
Unidentified Participant
Prateek Bhandari — Analyst
Amish Kanani — Analyst
Deepak Poddar — Analyst
Tej Patel — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Concord Nviro Systems Ltd. Q3FY25 earnings conference call hosted by Equator Securities. 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 you need assistance during the conference call, please signal an operator by pressing star then zero on a touch tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Maulik Patel, head of research from ICVIRA Securities. Thank you. And over to you, sir.
Maulik Patel — Analyst
Thank you, Yusuf. Good afternoon everyone. And thanks for joining. We have Mr. From Concord, Radhak Goyal, Chairman and Managing Director Priyas Goyal, Chairman and Managing Director Freidak Goyal, Executive Director Sudhasan Kamath Group CFO Abhijit Galke, Ashutaji and M and A. I would request Pradek Goyal to give opening remarks on the third quarter performance and outlook of the same. Thank you.
Prerak Goel — Director, International Sales
Hi. Good afternoon ladies and gentlemen. We extend a warm welcome to you on this conference call for the Q3 and 9 months FY25 results of Concorde Enviro Systems Ltd. I’m Priyak Goel, the Executive Director of Concorde. I’m joined with our Chairman and Managing Director Mr. Piyas Goel. Mr. Sudarshan Kamata, CFO and Mr. Abhijit Galkya, Head of Strategy and M and A. So just to sum up. Q3 and the nine months ended we had had revenues of 389 crores for nine months and 122 crores for the quarter ended December 31st. The nine months growth is about 31% year on year from the sales compared to FY24. Q3 25 had lower export shipments as compared to Q2. So you see a small growth in this quarter on quarter. But tracking overall numbers of FY25. The profit for the nine months ended 31st December is about 4.36 crores. The nine month profit and the quarter performance was low on account of forex losses on a project in Mexico due to volatility in the forex markets. We’ve had a slightly higher freight expense also due to some bulk cargo shipments for this project. However, the order book is tracking at a healthy 546 crores as on date. We obviously are experiencing a string of demand from both international and domestic clients from industries such as food and beverage, steel, automobile and chemical. New sectors such as solar and CBG also tracking well for us as we had discussed. So yeah, happy to hear your questions and take it forward. 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 N1 on the Touchstone telephone. If you wish to withdraw yourself from the question queue you may press STAR and two participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. First question is from the line of Dhawansha from Alpha Accurate advisors. Please go ahead.
Dhavan Shah
Yeah, thanks for the opportunity sir. So my question is, I think you mentioned that there was some lower shipment during the quarter. Plus there were some forex laws and higher freight costs. So can you share the numbers of all these three things? And. And in the order book of around 550 odd crore, how much orders are from Mexico at this moment and how much are unhinged? If you can share thoughts on that.
Prerak Goel
Yeah, sure. So let me just answer your last question first. Out of the total order book of 546 crores, about 34 crores are still in Mexico pesos. However, this is against execution that is happening in Mexico itself. So the costs are also in Mexican pesos. So therefore that currency exposure is almost, you know, it doesn’t impact the overall numbers of the receivables and the unbilled revenue for the project that is being under execution in Mexico. There we have exposure of Mexican pesos at the current moment. Which has impacted the books. The total loss at the current quarter was about 6 crores and for the 9 months period it’s almost about 11 crores is the total accumulated forex losses at the current moment. Obviously some of these are unrealized. And we’re tracking the movement to see how we can, we can, you know, hedge these better to counter some losses. And how much are the receivables from Mexico at this moment? So the receivable number I think stands at about 24 crores. And. But there is still an unbilled project value. I can confirm. I don’t have that value of N, but I can confirm it shortly.
Dhavan Shah
Okay, okay. And why are we not hedging the Mexico receivables? I mean, is this the only part we are not hedging or there are other parts also?
Prerak Goel
We don’t hedge because I think at the time of IPO we were told that most of the revenues are, you know, denominated in the USD for the export business. Yes, so, so, so most of the projects, most of the projects that we have are mainly in USD. So all our export, I mean, most of the export projects go into USD projects. However, this Mexico project, since it had a large EPC component as well, it was kind of done in mxn. And while the MXN was quite stable against the dollar over the last couple of years, we’ve seen some volatility both on account of political situation in Mexico, that is after the elections that took place. And obviously currently there’s high volatility because of what is happening when it comes to hedging. We have a very active hedging policy. In fact, all payables that we have in dollars are generally hedged. So we hedge very actively. However, in this particular scenario, the volatility was quite sudden because it happened due to an unexpected political event in Mexico. And that announcement was not factored in through our policy decision making. And that’s the reason why that impact occurred. After that impact, yes, there has been an inability to kind of look at the whole thing because the movement has been quite volatile and the hedging rates have been quite significant. So we have been, while we’ve been kind of watching the space and trying to hedge it, we know in the short term that there will be some volatility and fluctuation that will come up out of the total export.
Dhavan Shah
How much is in the USD terms at this moment and have we gained anything from the translation benefits?
Prerak Goel
Because the US dollar was also appreciated during last quarter. So you see, what happens, unfortunately, is that the projects in Mexico are in a UAE subsidiary. So typically what’s going on is that the forex loss is getting recorded in the UAE subsidy, which is again hedged to the dollar. Now, when that kind of moves to translation reserve coming into consolidation into India. That movement is in translation reserve and not in the P and L. So that’s the reason why the P and L has a higher impact. And while the rupee peso, or, sorry, the rupee dollar has kind of been to our advantage, only part of that, I mean, let’s say on the Mexico project, we haven’t been able to kind of show the gain on that because that’s sitting in translation reserves. So, yes, there is a net of effect, but that’s gone to translation reserve.
Dhavan Shah
So if we do the net of effect, then what is the actual gain or loss? If you can share which went into the revolution result,
Prerak Goel
Sure, we can send that to you. I don’t have the numbers currently with me, but we can share that with you, no problem. And you shared that there was some, you know, loss of sales also because of the shipment issue. So how much is the loss of sales? Not loss of sales. What happened was, see if you look at the quarter on quarter, we did about 160 crores last quarter. We did about 122 crores this quarter. Now typically what happens in our export projects is a lot of the shipments kind of are bunched up like a bulk shipment that goes out. It’s not like, you know, we’re kind of tracking every month and we’re shipping. So Q2 had the residual equipment for our Mexico project, but Q3 did not have. So we’ve completed all the projects, shipments for Mexico and now the next projects that we have are all due for shipments in Q4. So Q4 will again kind of see that increase in sales because the export projects will tick in from the order book. You can see out of the 546 crores, about 45% of the export book is export based. And that is a slightly bulkier kind of a lot where shipments would move in kind of bunches. So there would be some variation quarter on quarter in our business because only the after sales piece is more like a run rate which is Quite steady. So 40% of the revenues basically track quarter on quarter. But the 60% of the business would have some variations basis of the execution of the planned execution for these quarters. So basically if I look at, you know, the first nine months, I think we did revenues of roughly 380 odd crore and EBITDA is hardly 28 odd crore.
Dhavan Shah
So what is our, you know, guidance for F25 and F26 based on the current order book?
Prerak Goel
So see the revenue guidance, I think, see we’re looking on a year on year, 18% minimum growth. Okay. So the revenue guidance is definitely there on the, on the, yeah. So what we’re looking at the EBITDA basis is we should be tracking around 16% incorporating the fact that this forex losses has taken place. You know, it works out to about 11 2% of the turnover if you look at it. So that’s probably what we are factoring in our guidance at the moment. So basically, you know, if I look at roughly 600 crores of revenue which you can do based on, you know, your guidance of 80, not percent this year. So that comes to 600 crores of top line.
Dhavan Shah
And on that you are saying that 16 EBITDA margin is a sustainable number for this quarter for this year?
Prerak Goel
That’s right. A bit the margin you are saying that comes to 96 odd corrode. And for the first nine months we did just 28 odd corrode.
Dhavan Shah
So do you still expect this fourth quarter can be such a high number of 68 odd corrode EBITDA?
Prerak Goel
See, there are two things. There are two things. One is Q4 has quite a lot of export. Projects that are going out. You know, our margins in the export business are better than our Indian business. So that is one of the reasons why we are confident that those numbers should track. And also the fact that our expenses are, you know, let’s say the employee expenses, the other expenses are not going to rise in the proportion to the turnover. Because see from a business perspective these are quite stable expenses that we have. We don’t have expenses which track sales in a very big way because it’s not like a lot of variable costs in the books. So that is the reason why the number should track to that level.
Dhavan Shah
Okay, okay, okay. And in terms of the order inflow, I think more or less we are running at the same run rate. So what is the progress over there?
Prerak Goel
So the order book is, I mean, I said it’s quite healthy. We are sitting at about 546 crores of orders right now. Seeing great demand from sectors like steel, automobile, food and beverage. On the international front continues to be very strong for us. Good bids in process. So if you look at, you know, part of the things we put out in the exhibition, domestically we have an active orders under discussion of about 800 crores and internationally this value is about 350 crores. So we have good traction on the orders that we are currently discussing with potential customers. And these are all mainly going to be FY26 and. Yeah. So you know that 20% growth year on year is something that we definitely are poised to achieve. Order inflow growth would also be around 20 odd percent you are seeing. Yes. In F26. And why tax rate are so low? Because I think you mentioned that UAE subsidiary is not paying any taxes. But I think so in the overall top line, UAE doesn’t contribute that much to the overall revenues. No. So exports are picking up. No exports are picking up. So QA does contribute about 50% of the overall growth number. So it’s the export turnover is booked. Also the UE identity. So there is, there is profits. I get tracked for the export projects all done there and the domestic projects are all here. So you know, tax rates are pretty much also profits overall I pretty much split between the two businesses because it’s about 60, 40%. 60% is domestic, 40% is exports. So that 40% exports, whatever profits are made on that, that typically we are able to enjoy a tax benefit on those. That is zero percent tax rate at the current moment. Yes.
Dhavan Shah
Yeah. And that will continue till when?
Prerak Goel
So at the current moment, as per the UAE laws, we do not have to pay tax for our export on. It’s only if you’re doing domestic business within the uae, then there’s a tax on us, which.
Dhavan Shah
Is there any limit? Is there any limit from the UAE government?
Prerak Goel
No, no, no. There’s no holiday. It’s not like a tax holiday. It’s. At the current moment, this is. I mean, they’re not taxing this.
Dhavan Shah
Understood. I have more questions, sir. I’ll get back in queue.
Prerak Goel
Yeah, sure, sure.
Operator
Thank you. Next question is from the line of Melin.from Dalalan brochure. Please go ahead.
Unidentified Participant
Hi, good afternoon. Yeah, wanted to know a couple of things. One is that even if I look at your last year’s numbers, your earnings are volatile. Volatile in sense. Quarter, quarter. Though I do understand that, you know, in a, in a project based company there could be these kind of volatility during the year, at least till you have a sizable amount of top line where some of your products are. Projects are for the long term and for the short term, some for the short term. Last year’s first quarter also I think you had declared a loss and then there was a small profit in third and fourth quarter was very good. So just wanted to understand A was on accounting policy. When do you consider, when do you take the top line into account in A, in your P and L? Is it after? Only after you complete your 10% of the contract? Because that is what I think the norm is. So just wanted to understand that. And I think my second question was on hedging, which I think has already been answered. So if you could tell us more about that and how should. Because you know, it’s a small project company as of now, but over a period I’m sure it can become large. So how should we look at the company especially on the top line? What is the kind of period which we should look at? 3/4, 4/4 because the quarterly fluctuations will be there. So just if you could give some guideline to the analyst on that.
Prerak Goel
Yeah, no, absolutely sir. I think, you know, we are absolutely right as a business we do have quarterly fluctuations. If you look at this year, you know, 18% in Q1, 28% in Q2, then 21% in Q3. Hopefully you know, we’ll be about 30, 33% or 35% in Q4. So the numbers are definitely going to be on a moving basis quarter to quarter. And this is primarily driven by a lot of the bulkiness that exports bring to our business. Right. So anything which is a smaller project and we typically would classify anything less than 25 crores of small projects, the revenue recognition happens when we deliver the equipment to the client and there is a small percentage which is for the commissioning and installation expenses which then gets billed when the the project is complete. So let’s say you know, at the time of supply, 90, 95% and the balance 5 to 10% depending on the scale of the project would be on commissioning. On the larger projects we have a project completion method basis. So you know, like for the Mexico project we’ve had to kind of do it on, on that basis. So whenever the equipments were finally dispatched or the costs were incurred, that’s when revenue, revenue has been recognized. Okay. And yeah, I mean that, that goes as for the policy that, that the company has on, on realization of project revenues. So we, if you look at, we have some sizable contract. In Africa right now which are you know, 70, 80 crores. We have some projects in US which are about 40 odd crores. So those projects would continue to kind of be accounted on the budget completion basis.
Unidentified Participant
Okay, okay. All right. And just wanted to understand about the tax rate, what is the guidance which the analysts should take on your total taxes tax rate for the year.
Prerak Goel
So I think we generally kind of build in about 15% as a, as a tax rate, you know and it would vary 2 or 3% up and down depending on so around 15% for the, you know, to develop a model.
Unidentified Participant
Right. Okay. Thank you very much and all the best.
Prerak Goel
Thank you sir.
Operator
Thank you. Next question is from the line of Agam from Raj Trading. Please proceed.
Unidentified Participant
A good question. So you said freight and forex impact. So Forex impact was 6 crore for the quarter. What could be the freight?
Prerak Goel
So I mean the total freight for the quarter was about 5 crores. So if you look at the just the impact portion it should have been about two, two and a half.
Unidentified Participant
So roughly about three crores is what was that large order value?
Prerak Goel
It was a brake bulk cargo that we had to send out to Mexico and which was obviously due to the current conditions, geopolitical conditions. It was very expensive. But yeah, I mean as I also said we are in discussions with our clients because it was a single shipment which we have discussed with them the impact and therefore we hope that they will share the cost on that.
Unidentified Participant
So around 10 crore was the effect of rate and forex for this quarter, right?
Prerak Goel
Yes. And do we expect any more impact from the forex coming quarters or no. So actually the peso has already recovered a bit against the dollar if you see from the 31st of December lows. Obviously we can’t guarantee anything basis. This is a very volatile market at the current moment. But we are actively discussing with our bankers in Mexico to see how we could hedge this position in such a way that overall the impact is becoming very, very small.
Unidentified Participant
So going and what’s your thought process and how much the part that how much is Mexico of our order book now?
Prerak Goel
So as I said Mexico total orders outstanding is only 34 crores. And that also pertains to work that is being done within the country in Mexico. So both for me the revenue and the cost are in pesos for whatever we have built so far that has been where you could say shipments have left from India and UAE and gone to Mexico and that outstanding is what is subject to this volatility. So now there is no substantial exposure. So impact would be. Yeah. Order book. Not, not so much, but.
Unidentified Participant
Okay. Yeah. Okay. And, and so this international mix would be how much would be. Can you classify?
Prerak Goel
So 301 would be how much? Right, Sorry, I, I didn’t get that question. You’re saying 301 crore is your what export international order book.
Unidentified Participant
So how much would be each region? Can you quantify?
Prerak Goel
Oh, okay, So I think US is about 40 odd crores, Africa is about 105. Sorry, with the additional Africa it’s about. Okay, wait, let me open that page for myself. Yeah, so about 90 crores is US. 112 crores is, is South Africa and then We’ve got Mexico, 34 crores. Yeah, okay. So and Africa is also hedge for us. So what happens is on the, see on the export side, you know the, let’s say the hedging is because ad is, sorry, Dubai is where these orders are executed from and the ad and the dollar is pegged. So whenever there is a dollar invoicing to my client in uae I’m, I’m already pegged, you know, so there’s no ability to peg any further. What happens is in India if there is a dollar exposure because you know, sometimes they’re buying raw materials and everything, that exposure we hedge in the Indian market. So that kind of counters some of the volatility that we face. But yeah, I mean if it’s a dollar export then Dubai is the exporter. So there is no ability to hedge on that front at least. The question I’m coming from is that, so what’s the thought process in future to try to minimize or avoid this kind of forex losses or of course that was a, that was a big one that we also took back. But you know, I mean see for the same client in Mexico today we’re negotiating further orders. So we’ve clearly told them that these orders would need to be in dollar terms. We did take the last project in, in pesos because as I said there was a substantial amount of work that was being done also in pesos. So it was, it made sense at that point in time to look at it. But yeah, obviously going forward we are kind of going to stick to dollar currency as much as possible. Only the local, you know, wherever there is local work, especially on the EPC projects, if there’s local contract, local work to be executed then we’ll have to kind of look at coming in there. The Africa order is dollar dominated only. So the exports are dollar dominated. There is again some local work, maybe about 10, 20% which is in local currency. But that again will be executed using local suppliers, so the risk is minimal. A variation would only kind of reduce the order book value or the sales value, but it won’t have an impact on profits. Okay, that lesson has been taken on the order book front.
Unidentified Participant
Out of the 800 road. How much are we expecting? To be materialized in next three months.
Prerak Goel
So see, I think, I think if you look at our India business is tracking at about 30% conversion. Our export business is slightly more, you know, better where we kind of track about 60 to 70% conversion for our export inquiries because I think they’re more kind of focused inquiries in which we definitely have technological advantage or you know, kind of energy footprint advantage. So that is basically on annual basis of course these numbers. So yeah, I mean but again good tracking because at least on the recent, let’s say last three months, if you look at the steel sector, the automobile sector, these are large companies who we’ve got good orders from. So you know, we definitely see the India business tracking well. Food and beverage, especially on the food processing side, we’ve got good orders in the last quarter. So definitely the uptake is quite strong. And this order book of 546 crore includes ONM or ORM would be over and above this. No, it includes the O and M. So this is the total order book. It includes onm. Yes. Okay. Okay. And for. So as per the guidance what you said sir, for next year around the 600 crore Malpant figure which we are targeting the next quarter in terms of growth of top end would be flat. Right. But I think Q4, we did 200 crores. Right. If I do the maths. Yeah. So quarter on quarter will be flat. But you can. Yeah, I mean because the profitability will come back to look at. Sorry, yeah, the profitability will come back, right?
Unidentified Participant
Yes sir. Because I mean. Yeah. Are you saying you’re trying to end the year at 16% EBITDA?
Prerak Goel
Yes. Okay.
Unidentified Participant
Okay. And why is the employee and the interest was also gone up this year this call for the quarter.
Prerak Goel
So the quarter obviously you know we had expenses running up towards the end of December. So that’s one of the reasons why the expenses are slightly higher. But if you look at now we’ve kind of reduced our debt by about 50 crores from the IPO proceeds. So that is, that has happened in February. So you know that benefit will accrue in partially in this quarter and then from next quarter onwards that should kind of go better. The employee is more because of annual increment cycle plus we’ve kind of placed some, you know, added some resources given the growth budgetary that the company is seeing, you know, from the overall business and of course the CBG segment as well.
Unidentified Participant
Okay. And how are margins looking for next two years point of view?
Prerak Goel
So I think our margins guidance has been, you know, very, very strong. You know, I think given the leverage that we are getting with higher turnover, we definitely see those improving. As I said, this is more of a one off for us for the moment. But yeah, I think we should definitely see stronger margins going forward. This year we’ll be ending at 16%, right? Including the one offs, right? Yes, sir. Okay. From that end, we should increase it. We should raise.
Unidentified Participant
Okay. And how’s the overall demand scenario being so far?
Prerak Goel
So very positive, as I was saying. I mean if you look at both from the international and the domestic, I think in international we are having a, you know, a large project coming from Africa. So that’s another big one that we’re chasing. There’s new projects in Mexico because you know, that’s again a market where the government has kind of tightened compliance for a lot of industries. So there is a lot of demand there. You know, we’re talking to the alco beverage industry there, the food and beverage and also some of the automobile clients in that region. In India I think we continue to see good demand. In fact, chemical sector is something. In the last quarter we’ve seen them kind of come back both with new orders as well as some capacity expansion. So we hope, because pharma and chemical have been bread and butter sectors. If you see the sector mix that we’ve had in the Indian market, Pharma, chemical have been very strong. So with that rival, we definitely hope that that should also continue.
Unidentified Participant
Why are we not looking at Europe?
Prerak Goel
So Europe, it’s not that we are looking at it. We have a sales office out of Hamburg at the current moment. But I think, you know, the, let’s say the, what people generally do there is they discharge it to the municipalities and they pay a fee for the discharge. So that’s where a lot of people kind of, you know, tend to not treat their wastewater but simply discharge it to the municipal corporations. The cost of that is something we are working on obviously because it’s an expensive market even from an operations perspective. So today few clients are kind of looking at recycle and ZLD solutions in that market. But we’re sure that given the cost that they are paying for the municipalities, there is an advantage there. So yes, our team is working on in those markets to see how we can go through. But yeah, I think we’re still seeing a lack of holistic demand coming in from that region.
Unidentified Participant
Okay, thanks. I’ll join the queue. I have few more questions but I’ll let other stuff. Thank you. Wish you the best.
Prerak Goel
Thank you, sir.
Operator
Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants in the question queue, please restrict your questions to two per participants. If you have any follow up questions, please rejoin the queue. Next question is from the line of Prateek Bhandari from Artventures. Please go ahead.
Prateek Bhandari
Yeah, hi, thanks for the opportunity. I wanted to understand about the order book component you mentioned that. 5.6.
Operator
Mr. Pratik, may I please request you to use your handset?
Prateek Bhandari
Am I audible?
Operator
No, it is still sounding very low.
Prateek Bhandari
Hello? Is it better now?
Operator
Yes, please proceed.
Prateek Bhandari
Yeah, so I wanted to understand about the order book component. You mentioned that five 46 odd corrodes of the order book includes the ONM as well. Yes. So does it include the CBG as well? Yes, include CBG as well. But yeah, for the first contract. So if I have to, you know, talk about the split of the OM versus the, you know, the fresh equipment sales, what would be the quantum. So 100 crores is O and M. That’s our 12 month tracking number. 100 crores?
Prerak Goel
Yeah. Okay, so that means the remaining 446 odd crores is for the fresh equipment. Yes. I mean got some trading in there as well, but that’s about 15, 20 crores. So small. All right, and the execution timeline for the complete order book would be 12 months. Right. So most of it is 12 months just on the Africa projects. There is, let’s say not final 10% that will be on commissioning. So maybe there is some carryover into FY27 for that Africa order.
Prateek Bhandari
Okay. And also if you can give an, you know, tentative ballpark figure of your average order size both in terms of the domestic orders and international orders.
Prerak Goel
So international is larger obviously. I mean, because you know, these are larger projects. So typically I would say an average would be starting at about 40 crores upwards. You know, we’ve seen about 70, 80 crores at the current moment. So that’s, you could say that would be the range on the domestic side. Orders are quite spread out, but I think, you know, average, you take about 5 odd crores is the average. So you know, we get orders typically 8, 9 crores on the higher side, which are these average projects which we execute in less than six months. Eight to nine crores? Yeah. I mean that’s an average, that’s a higher value, higher end. And 5 crores is the average. Okay, so 5 crores would be the average. Okay. And you know about the guidance you, you know, just alluded to that, you know, we would be clos closing the year roundabout at around about 600 crores of top line. And in the nine months we have done approximately 387 crores. So you know, do you feel confident that we would be able to do that 53% top line growth in just the Q4? Yes, if you look at Q4 last year also it was about 200 crores. So it was 200 out of 496 totally. So Q4 is a very strong quarter for us generally both in the Indian context as well as, I mean some projects kind of do get piled up where they get dispatched in Q4. So it generally is. If you look at our Trends, at least 33% of the annual revenues have been kind of booked in Q4 on a kind of a sustainable basis, where we’ve done this for years now. So, yeah, pretty confident. In fact, I think if you look at Q4.25 versus Q4.24, you’ll probably tell us that it’s flat. So it’s going to be very close to the same number as compared to what we did last year. And you mentioned that the EBITDA margins would be 60% for the full year, right? Basis, yes, sir. That’s what estimates are giving us a number right now, sir. And going forward for FY26, what kind of growth you can, you know, we can anticipate on FY25 numbers. So I think given that, the fact that CBG is kind of coming in and given that we have a strong order book, I think, you know, we are looking at a minimum of 20% sort of a growth coming in and that should translate across. I mean obviously the margins and everything that we’re signing up new orders for is pretty strong. So we expect that 20% growth to come with good profitability across the board. And by far, you know, how has the, you know, the Jan month, you know, has been for you if I talk about the Q4. So Jan has gone steady, I think, you know, we’ve, I don’t have the exact numbers again, but yeah, it’s gone pretty steady. We have kind of achieved on, on we on track for Delivery of the Q4 target.
Prateek Bhandari
Okay, okay. Okay. That was our questions. Thanks.
Prerak Goel
Thank you.
Operator
Thank you. Next question is from the line of Amish Kanani from Novus Investment Managers. Please go ahead.
Amish Kanani
Yeah, hi, thanks for, for the call. Part of the questions are answered. But sir, if I have to, you did mention that the conversion in India is probably say 30% and international maybe higher at 60%. If I were to understand this pipeline, sir, a little better, is this the pipeline which generally gets closed, you know, on a three to six months basis or it’s a yearly pipeline. So say six months forward, will this pipeline inquiry pipeline will grow or it’s a static for a year or so is the first question.
Prerak Goel
Sir, I think if you’re looking at the market dynamics in India today, cost of water is going up for industries. So what we have seen is that the pipeline has been growing. It’s been going quite steady. I would say 10 to 15% a year is the additional pipeline that we are seeing in the Indian context. Obviously a lot of the customers who are talking to us today, earlier there was a trend where people used to come and take quotations and then hang for a bit. I think that is kind of changing and I am hoping that with the Capex cycle kind of hopefully coming back with the monetary policy easing should kind of benefit the whole Capex cycle in the country. So yeah, I mean, I think overall there’s been a growth in the volume of inquiries that we’ve been getting. But yeah, it’s been in the range of 10, 15% is what we’ve seen in the last couple of years.
Amish Kanani
Okay. And sir, talking about cbg, you did mention only one project of CBG is there in the order book, any sense of how it is panning out? Because we, from the listed player space of a, you know, perspective we have heard and seen probably, you know, Praj and paramaxis of the world are also in this, in this thing. And my understanding of the CBG pipeline was that Ambridge, you know, the capex. For the CBG plant is anywhere between 25 to 40 crores. So if you can give us some sense of how are we, you know, competing with these large players and what is our accessible market opportunity and stuff like that,
Prerak Goel
I’m going to give it to Mr. Pass to answer the question.
Prayas Goel
Hi, good afternoon. Yes, as you, as you mentioned, the CBG opportunity is quite large with multiple players. As Concorde, our focus on the CBG play continues to remain on the, you know, kind of the general open market CBG licensees who have good access to feedstock or guaranteed feedstock availability which has been one of the major kind of issues plaguing the sector. But additionally we, you know, given our strong industrial connections, we are also looking at and in advance stages to sign contracts with industries who themselves have organic waste, you know, from our food, from the food and beverage sector, from the sugar alcohol sector, who have captive waste so as to say and are able to kind of, you know, supply enough of feedstock for a CBG project. So in addition to the licensees, we’re continuing to look at industrial players and we expect our kind of next year mix of about six to eight projects to be a mix of industrial and you know, general open biomass license kind of CBG projects.
Amish Kanani
And so what’s the ticket size for us?
Prayas Goel
Yeah, the ticket size, I mean typically it’s going to be on an average between 30 to 70 crores depending on the project. So between 5 and 10 tonnes. So between 30 to 70 crores per project.
Amish Kanani
And we address the whole pie is what we’re saying, right? Our equipment?
Prayas Goel
Yeah, that’s right.
Amish Kanani
Okay, answer just a couple of housekeeping questions, sir. This year, nine month order input, you know, inflow if you can give us and also, you know, if you can clarify, you know, whether our order book is largely private sector. Do we deal with government entities in terms of, you know.
Prayas Goel
Yeah, so I think the number is close to 400 crores. I think it’s about 420 if I’m not mistaken. But it’s in that range of 420 odd crores. If you look at our business mainly on the private side, we do have some different business with the defense where we do work for government of India. That’s basically the Indian Navy and Coast guard. So there because we supply these desalination plants on both their ships and submarines. So that order book continues. Traditionally it’s been in the 6 to 7% sort of a range. At the current moment, I think out of the order book you would probably see about a similar kind of 5, 6% number which is related to defense. Beyond that, there is a bit of the O and M business where we’re doing it now with third party contracts where we have taken on a little bit of exposure for operating and maintaining sewage treatment. Sorry, not sewage water treatment plants. So there, there was a small government exposure, but again, the quantum is not more than 2, 3%.
Amish Kanani
Okay, okay. Thanks a lot. And all the best, sir. Thanks for the quantity.
Prayas Goel
Thank you.
Operator
Next question is from the line of Deepak Podar from Sapphire Capital. Please go ahead.
Deepak Poddar
Yeah, I’m audible, sir.
Operator
Yeah, you’re audible.
Deepak Poddar
Oh, thank you very much, sir, for this opportunity. So just wanted to understand, we have got about order book of 546 crores out of which around 100 crores is om order. So 450 crores odd would be our current order book. Right. Out of which domestic is 55% and export is 45%. Right? Yes, yes. So what is the margins we see in exports and what is the margin we see in domestic? I mean generally, I mean when we book the orders, what’s the inherent margin we keep for ourselves?
Prerak Goel
Yeah, so at the gross margin level there’s a difference. You know, generally in the range of 7 to 8% is a difference between India and exports. Now on
Deepak Poddar
EBITDA level, sir.
Prerak Goel
Yeah, I was just coming to that. So what happens in the EBITDA level, sir, is that in case there’s a last mile, especially on the EPC contracts, if there is a last mile contract work that is to be done, then typically costs would go up. So in contracts where we’re doing epc, we see that the EBITDA margins are very close to what we see in India. But contracts where we’re doing equipment supply or we’re doing just let’s say supplying spares and all that stuff there, we definitely see higher EBITDA margins. So I think if you look at a consolidated position, it depends on the mix of projects that are coming in. But I would say on the EPC it’s similar to India, but on the supply contracts I would say anywhere between 5 to 7% better than India.
Deepak Poddar
Right. So I mean if I have to see, I mean at a company level is ebitda margin is 16%, then the export margin would be 20% and domestic margin can be 12, 13%. Would that be a fair.
Prerak Goel
That would be a fair assessment.
Deepak Poddar
Okay, so. Okay, okay, understood. So I mean I was just looking at the guidance that we’ve given for this year, FY25, I mean for 16%, if you have to do, for this entire year, you have to do at least 30% EBITDA margin in fourth quarter. So how will we achieve that? I mean at 200 crores of revenue you have to achieve 28, 29, 30% kind of EBITDA margin where our order book inherent is only at, I mean 19, 20% in exports. I mean you mentioned this will happen because of push in exports. Right. But your exports inherent margin itself is 20%. So how do we achieve 30% kind of EBITDA margin?
Prerak Goel
So what is happening, sir, is if you look at our other expenses, you look at our employee cost, these are two costs which are obviously significant, but they pretty much fix quarter to quarter. You will not see that kind of increasing with increase in revenue. So as you go from 122 crores in Q3 to about let’s say 210 to 20 crores in Q4, you’re seeing those two costs are not changing. So on an overall basis that number is not going to, I mean, I don’t need to kind of earn 22% on that. I mean, these are all analyzed numbers. So typically what will happen in Q4 is that you will have let’s say 50 plus percent contribution gross margins and then you will have these fixed costs coming in in terms of salary and other expenses which will then result in your EBITDA kind of slowing down. So this is typically been again with us on a, you know, historic basis. If you really look at the numbers we’ve been trading it, I mean it’s been kind of tracking the similar kind of fashion.
Deepak Poddar
Okay, okay, so, so I mean you, you’re saying in fourth quarter this 28, 29% EBITDA margin is doable.
Prerak Goel
That’s what we are.
Deepak Poddar
Okay, understood. And my second question is on your order book. I mean currently we have an order book of only 450 crores where annually we are doing a revenue of 600 crores. Right. So which gives us a very low visibility. I mean if you look at some other companies also, they have at least two, three years of visibility. Right. I mean, as for our perspective, I mean the visibility is quite low. I mean even not in year. And given your execution timeline is 12 months. Right. For this and when it would be many years,
Prerak Goel
You know, of course. But let me just put that. So we get a lot of small orders in India which are typically executed within three to six months. Typically this number for us historically has been between 120 crores of orders which come in during the year are executed during the year. So that typically peace continues because a lot of the small scale where they’re just buying equipment. So if you look at my entire product profile, EPC I’m doing only for very few, very large clients. Right. Let’s say a major part of my business is where I just supply equipment. But we go in, we commission that equipment and get paid for it. And these orders typically would be executed from a minimum of three to a max of six months. And these orders we are booking on a regular basis every day. So between 120 crores per annum will come from this steady kind of business, let me say. And then there are some large projects that do come in. The O and M businesses is pretty much continuing the trading. Obviously the trading orders are executed within 30 to 45 days. So those all are recurring businesses which will keep coming in. They don’t really kind of contribute much in the order book stage. But that 40% revenue is pretty sticky. So that will continue. And you can see that the O and M business is growing at 20%. So that will kind of, you know, continue to track and the balance is what will come in through just in time orders.
Deepak Poddar
Okay. So any order book target we have for year end this year, FY25 and 26, what sort of order book we are looking to kind of accrue further.
Prerak Goel
So we were, we were hoping that, we know, we’ll be able to achieve 500. And I think given the current inquiries that we have responded to and some of the orders which are closing stages, we are quite confident we’ll be in that range. So 480, 500 is what we expect to close FY25 at. So we’ll have that much of opening order book,
Deepak Poddar
That is excluding O and M. You’re saying?
Prerak Goel
No, this is including one himself. What I’m giving you numbers right now.
Deepak Poddar
Okay. Okay. So we are already at 550, right?
Prerak Goel
I mean, so yeah, that’s the range almost we’re executing. I mean, if you look at this quarter’s execution is almost about 140 and a 50 crores with balance execution is pending.
Deepak Poddar
Correct, correct, correct. Okay, I got, I, I got it. Okay. That would be from my side. Thank you.
Prerak Goel
Okay. Thank you, sir.
Operator
Thank you. Next question is from the line of Tej from Nivesha Investments. Please go ahead.
Tej Patel
Yeah. Hope I’m audible, sir.
Prerak Goel
Yes, yeah, per second.
Tej Patel
Thanks for the opportunity. My question is again on the Forex part. If I look at the three months bank exchange, I, I, what I understand is our receivables are quite old and three months also, which are dominated in the pesos. Right. So if you could give me those numbers, right. I mean how many, how much of our receivable which was outstanding has on, let’s say last quarter or older than six months. And, and, and what in terms of percentage, how much hit they would take and what I understand is about 9 to 10%. Right.
Prerak Goel
So if you look at, yeah, I think if you look at the overall forest loss that we have on the books right now is about, about 11 odd crores coming from the Mexico project, right? So about, I think the total Indian rupee exposure is about 75 crores to the Mexico project at the current moment, both in receivables and unbilled revenues. So that is where we’re seeing that the Mexico peso fluctuation is kind of creating a loss on the books. But that as I said, we’re coming close to the order execution period. So I mean we have delivered all the equipment that is to be going there and we hope to complete installation by March and then, you know, most of this commissioning and everything by June. So next two quarters this money will get received and that’s the open forex exposure that we continue to have, which we are actively looking at.
Tej Patel
So 75 crores is exposure. Okay, okay, got it. And USD would always be stable because it’s linked to AD, which is pegged. Right. So you gain or loss, but there’s no impact on rpnl.
Prerak Goel
Yes. I mean, yeah, on the dollar. On the dollar point of view. The dollar orders. Yes, it’s no impact on the pnl.
Tej Patel
Got it, got it. And my question was if I look, I mean if I look your historical numbers or Our business is quite sticky, right? I mean, so what, what I understand is for you to grow, let’s say 20% next year, you need to crack a new client. Right. Because our, let’s are all our major orders that say the Mexico Diagonal order is also about to end in this financial year only. So, so what’s the visibility there? I mean, are we gonna get repeat orders from Diageo? I mean as far as understand, Diageo has a, you know, good CSR projects across Africa and India also. So what’s the visibility on 20%? How many new customers are we looking at it? Because all the major orders which we, which we got from, let’s say, make now or Diageo about to end. Right. So what’s the visibility there? And is this incremental amount coming from the international markets? Because as far as I understand, I mean, this is a follow up question. I mean, the ZLD adoption in India is still quite low because of higher expenses and no mandate. So how do you see this panning out in India? And I mean, I just wanted to understand how confident are you about this 20% incremental growth? Because for you to grow 20%, either your older customers have to give you a big repeat order again and otherwise you have to enter a new market to, you know, get a new order from a bigger player. So on visibility, focus, throw some light.
Prerak Goel
Yes, sir. So totally, I mean, if you look at our Africa business that we already have, so we have an order from Diageo which is for two sites in Africa talking to about 105 crore. So this is the orders that we have got on the back of our execution in Mexico. In Mexico itself we’re working with Diageo, we’ve almost given them another $3.5 million worth of quotation for some of the works that they have on their new plants. So Diageo continues to be a very strong client for us. And obviously from a relationship point of view, we’re very strong with them. And as you said, they have a great CSR budget where they are, they’re working across the globe. So I would tell you that we have projects which are under discussion for even Europe and, and you know, Africa as well. There are more projects that will come up there. So that is definitely there. Having said that, you know, we have new clients. We’re talking to a sugar industry based out of South Africa, which is, they have kind of tendered with, let’s say, you know, kind of our technology for a particular project in South Africa. So that again, it’s a large kind of a contract, I think, you know, 100 plus crores. So that is already kind of, you know, coming in. Plus markets like Mexico we are focused on because there the government has put a mandate where you could say the industries have to adopt ZLD like Diageo did for the Mexico distillery that they put up. So that is something where we’ve got almost four or five very strong inquiries from both the Alco Beverage as well as certain food and beverage industries like yeast manufacturing. So there we have some strong kind of final stage discussions that are currently happening which should translate into orders in the coming two, three months. So that all, you know, from a order book and an execution space, I think we are quite comfortable. Even if you see out of the 500 crores order book that we should be there, which we should have for FY26, close to about 400 crores is what will come from the projects that we currently have. And roughly about 40% of our revenues come from our after sales business. So if you targeted 20% growth and then you kind of look at 40% of that number that’s going to come in from recurring business which we already have. So the 400 crore project order book, plus the 120 crore which we normally get during the year, that should substantially cover the growth for FY26. But yeah, I mean, as I said, I mean all these discussions that we are having is a very strong pipeline. And as these orders kind of come in over the next, let’s say three to four months, we expect the order book to be quite visible to give us growth for the next two.
Tej Patel
Great, great. And if you can just put a broad range, maybe what expectations are we having from the Africa and especially from Diageo? So in terms of number of projects, the order inflows, in terms of value, what amount of orders are we expecting from Africa and then Diageo?
Prerak Goel
I think Africa, we have quotations out there for almost about 150 crores which are currently being given to clients. Diageo at the current moment, the Africa project, we’ve already won, so that’s in the order book. We’re working with them for two other markets that they have, but we’ve not come to the quotation stage yet on those. So we haven’t given up any more attendance for the Africa business of Diageo.
Tej Patel
And out of 150 crores, how much would be diagonal?
Prerak Goel
No sir, this is all non Diageo. The 150 crores in Africa is purely non DHO. It’s, it’s a sugar industry that we’re talking to.
Tej Patel
Great, great. And I just wanted to get your thoughts on. We are almost doubling our capacity in the membrane space. Right. And if I look at the overall utilization, it’s about 60%. 40, 50, 60%. Right. So, so what’s our thought process behind this incremental membrane capacity? I mean are we going to use in house for our EPC contracts or are we all probably thinking to sell it as a consumable and then what’s our plan there of ramping up and then how much revenue could we expect from this incremental capex?
Prerak Goel
So I think two parts to it, you know, one, see we are the ramp up that we’re doing right now is more for our waste heat evaporator business because that’s also a kind of a module that we make and we use it for evaporation as compared to the stainless steel evaporators. So right now the ramp up is more towards that business. You know, we’re trying to kind of create a demand for that. So wherever there’s a thermal kind of a system, you know, today we are capacity constrained for that ZLD space. Where customers want to do zld, we have a minimum capacity which is installed at the moment. So that is where we are ramping up. If you look at our membrane, purely RO membrane sort of division there, the focus is on two things. One is, you know, we are focusing on sale of modules because a lot of markets where we see, you know, people want to just integrate, they want to do the last mine integration within the country and they just want to buy modules from technology players like us. So that is where you know, we’re focusing on module sales. But yeah, we’re not trying to ramp up capacity there right now because at the current moment we do have spare capacity in the, in the module and membrane manufacturing space. It’s really the WHE and some of the other components that we’re streamlining where we’re doing certain investment.
Tej Patel
Got it, got it. And what I understand is waste initiative operators, you know, forms a major chunk, major chunk of a ZLD in terms of cost. So since we are backward integrating, are we expecting our margins to improve?
Prerak Goel
Yes, sir. So that’s the whole crux of getting into ZLD because, you know, we have the tech to be able to support that last mile integration. Because earlier, if you see our history, let’s say we were only doing mainly the membranes bit of the business. So obviously the membranes were only about 30% of a ZD contract. Today we have a higher wallet share because when a client looks at zd, we basically. Entire equipment. So that obviously gives us a larger chunk of the business. And that obviously does kind of help in margin because you know it’s one contract earlier we should go there just doing one equipment, now we’re doing multiple.
Tej Patel
Interesting. That’s all from my side. Thank you.
Prerak Goel
Yeah, thank you.
Operator
Thank you. Next question is from the line of Mr. Malik Patel from Equida Securities. Please go ahead.
Maulik Patel
Yeah, I have few questions. A couple of things. This 5 crore of DRGU higher shipping cost has been booked as in a part of the cost of raw material. Right. In this part or is it part of the other expense?
Prerak Goel
No, it’s part of other expenses.
Maulik Patel
Okay. And this forex loss,
Prerak Goel
It’s a part of other expenses.
Maulik Patel
Both has been part of the other expense, right?
Prerak Goel
That’s right, yeah.
Maulik Patel
So your gross margin, if I look at this quarter, it’s been similar to the last quarter which was around 45 to 44. But because of these two items as other expenses, the percentage of sales has gone up pretty high. Okay, this one, what’s the update on this mega order, Mega engineers orders and what kind of status we have when we are expecting to start delivery on that.
Prerak Goel
So engineering is ongoing right now I think. Yeah, we’re just waiting for advances and the engineering completion. Okay. So after that. So the large part of the execution will happen in FY26, right? Yes. Okay, got it. But again subject to advances and all coming in so.
Maulik Patel
Okay, okay, got it. So in this CDG you have received one order. I think the earlier discussion was that we have any capability to do around two to three, three kind of CBG every year. Right. And the market is pretty good. And government has also announced some kind of incentive to promote this one. We’ve been hearing on what I mean are there more orders in the pipeline and has the bank started giving the funding for the CBG or not?
Prerak Goel
Yes, as we just mentioned earlier that you know we are focusing on both the biomass side of it and the industrial side, organic waste side of it. So yeah, we are definitely on track to close a couple of more orders in this for the for FY26.
Maulik Patel
Okay. And for on this capex you intend to do from this IPO only money once I think that get finished probably next year. What kind of revenue you can do on this capacity? You have both in terms of at 1 at Versailles and in Dubai what kind of revenue you can do in the system and plants.
Prerak Goel
You see actually if you go to see from a capacity utilization perspective, once we put up the investment for the WHE manufacturing I think revenues can go up at least 3. To 3x. 3x for systems and plants.
Maulik Patel
Okay. Okay. So that’s probably on if I look at this last year, this year system and plants will do around 400cr kind of a number approximate. So you can do around,200 on the same days.
Prerak Goel
Yeah.
Maulik Patel
Okay. And wh. When you would you be finishing that Cutex approximate?
Prerak Goel
So we’re starting in FY26 and it’s a one year kind of a play. In the meantime there’s some outsourcing happening to kind of bridge the gap for the next year. But yeah, it’ll take about one year. So FY27 early FY27 we should have operational next year.
Maulik Patel
And any thoughts on the competitive industry in the domestic market? Our others are expanding their base or capabilities. Are there you see any kind of pressure on the margins? Because domestic has always been relatively lower margin for you compared to the export. Any thoughts on that?
Prerak Goel
Yeah, we’re seeing a good kind of movement on the domestic market where customers are realizing that they need to get the operating cost of ZLD and go for a efficient and reliable zero liquidity charge because it’s no longer just to something that they need to show. So they are realizing the operating costs and going for better value equipment. So the market is maturing domestically in that sense. You mean to say that more and more are going for the delta option rather than the earlier solutions? Yes, also because of water security, because you know, water becoming more expensive and water availability becoming more
Maulik Patel
Players are also expanding the capabilities in terms of if someone doesn’t have an MSLD then they will also start getting the technology from the outside and start getting dollars. The competitive intensity in terms of more people you are seeing on and that more people are participating now or was it similar? I would say it’s similar to what it was last year. But market has opened. Right. You the chemicals and pharmas which probably were not expanding in the last two years and now expanding.
Prerak Goel
Yes, certainly.
Maulik Patel
Thank you.
Prerak Goel
Thank you.
Operator
Thank you. Next question is from the line of Harshit Rati from Sundar Sari Sansar. Please go ahead.
Unidentified Participant
Hello.
Prerak Goel
Hello.
Unidentified Participant
Yes sir. Just in case that you have acquired subsidies in Kenya and Uganda. So are we seeing any orders from the countries and all?
Prerak Goel
Yeah, so this is actually for the Africa order I just mentioned with Diageo there is some last mile contract work that will have to be done locally. So this entities are to cover those contracts.
Unidentified Participant
Okay. And in quarter four. So are we not seeing any forex. If losses. Right. If in case.
Prerak Goel
So we are actively hedging that position. As I said from the lows of December, the pesos already recovered. So hopefully we could some of the losses. But yeah, we are actively in discussion to see how we can hedge it. Obviously the hedging costs right now because the volatility are quite high. So we also kind of tracking that and solving for it. But yeah, I mean we are hoping that you know we don’t come to a negative position for Q4 but that exposure is remaining open. But that’s been actively managed. But we will be profitable. Right? If in we will be. I think the worst is over.
Unidentified Participant
Okay. Yeah. Thank you sir. Thank you so much.
Prerak Goel
Thank you.
Operator
Thank you. We have our next follow up question from the line of Dhawansha from Alpha Accurate Advisors. Please go ahead.
Dhavan Shah
Yeah, thanks for the opportunity sir. Again. So I have just one question on the other cost. So this quarter other cost is roughly 30 odd crore. And if I exclude you know the extraordinary item of roughly 78 crore of this rate and forex, so roughly 22 odd crore is the other cost out of this 22 odd crore. Can you help us? How much is the fix and how much is variable?
Prerak Goel
I think barring some sales commissions and some service and, and freight. Yeah, to the extent of freight I think so that’s about 2 and maybe another 2. So about 4 crores is relatively variable. The balance is is pretty much fixed.
Dhavan Shah
Understood. Okay sir. And so. So, so basically 18 plus 23 so 40 odd cr per quarter is the fix over rates that you are seeing saying. Right. And that will continue in F26 also.
Prerak Goel
Yes,
Dhavan Shah
Understood. Okay sir, thank you. Right sir, thank you.
Operator
We will take our last question from the line of page from Nivesha Investments. Please go ahead.
Tej Patel
Yeah, thank you so much for the opportunity. Again I think I just wanted a bit clarity on the employee cost. I mean you said you did some hiring so I’m just wondering what’s this hiring for? I mean are this for the Africa project? Because I mean there is quite incremental jump in and blows this pilot lower revenue base. So we just throw some light on.
Prerak Goel
Yeah, sure. Hi. So yeah, the hiring is kind of more related to on the project side from a project management point of view for ongoing projects and projects that we’re expected to bring in bandwidth for project management. And also on the CBG side which is relatively a newer business we’re getting into. So kind of building the whole team there from a CBG perspective third party ONM’s piece which we started, which is also bringing in expected revenue in the coming period. So there’s also manpower onboarded for the third party onm part of the business.
Tej Patel
Is there a temporary nature to this?
Prerak Goel
Cost because probably let’s say project gets completed, right? Then, then EPC projects do we do, do you have those staff which are on temporary payroll or are they small expenses? Very minor. Very. There is obviously some, you know, annual or six month kind of contract which are taken in market, local people. Right, got it. But yeah, that’s not significant.
Tej Patel
Got it, got it. Okay. Okay. That’s all from my side. Thank you so much.
Prerak Goel
Welcome.
Operator
Thank you, ladies and gentlemen. That was the last question for the day. I would now like to hand the conference over to the management for the closing comments.
Prerak Goel
Thank you everyone for joining the call and we look forward to your participation in the ensuing quarters. Thank you.
Operator
Thank you on behalf of Equira Securities. That concludes this conference. Thank you all for joining us. And you may now disconnect your lines.