Harsha Engineers International Ltd (NSE: HARSHA) Q2 2025 Earnings Call dated Nov. 11, 2024
Corporate Participants:
Vishal Rangwala — Chief Executive Officer
Sanjay Majumdar — Strategic Advisor
Maulik Jasani — Vice President, Finance
Analysts:
Harshit Patel — Analyst
Shirom Kapur — Analyst
Jason Soans — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Harsha Engineers International Limited Conference Call. [Operator Instructions] I now hand the conference over to Mr. Vishal Rangwala, CEO of the company. Thank you. And over to you, sir.
Vishal Rangwala — Chief Executive Officer
Dear all, hi, this is Vishal Rangwala here, and I would like to welcome you to our quarter two FY 2025 investor call. And I would like to wish you all a very happy and prosperous new year. As we have been doing in the past, Maulik will take you through the numbers in greater detail, and I’m presuming that you would have had a chance to look at the numbers already. At the outset, I would like to mention that historically quarter two is a subdued quarter for us, both in terms of top line growth as well as in terms of margins, whereas fourth quarter is usually our strongest quarter at Harsha.
If I talk about quarter two financial year 2025, it’s a mixed bag for us. While India is more or less in line, though not fully up to our expectation, and while China is looking better, we continue to face challenges as much as Europe is concerned in this quarter, and we have also seen demand from U.S. softening significantly. Let me talk of our principal verticals, starting with Harsha India Engineering business. First and foremost, I am happy to inform that bronze bushing business has continued to be a strong positive for Harsha. Thus, in quarter two sales of bronze bushing, we were around INR24 crores and full first half sales for bushing is about INR44 crores. This is very much in line or little bit better than our expectations.
Going further, we see equally strong run rate as far as bushing is concerned. If I talk further about India Cage business, cage demand coming from India, there is a decent growth in quarter two, almost 15% over quarter two previous year. However, export from India have remained stagnant with some minor degrowth again, largely attributed to continued soft demand from our key market of Europe.
We have also seen some demand slowdown in U.S. market. Further, overall industrial demand in all key market is also down. We believe that Q2 overall slowdown is also a function of inventory reduction, destocking exercise being undertaken by our key customers, both in India as well as outside India, in view of demand reduction as well as to preserve liquidity. We expect the normal purchasing to resume sometime soon and likely peak in quarter four onwards in terms of demand normalization. And based on this, we expect the second half of the current financial year, particularly quarter four, to be relatively strong. Therefore, I am pretty confident that India Engineering business should grow positively in current financial year.
Moving on to our other pillars. While progress on the major outsourcing project in Europe is continuing, it may still take some time for us to conclude that exercise and given the usual challenges we face in such projects. Again, we remain very much excited about positive impact of China plus one, given major expansion undertaken by our customers in India. Plus, we have already started seeing increase in order inflow from customers who have already started their facilities in India in response to this as well as we expect some to start coming few quarters as other customers commence their production. On the flipside of the growth, the large size bearing cage segment is still not picking up given that the major end user segment, the wind as well as the industrial segment is very soft. The business from Japan-based customer is also a little bit flat for this quarter and below our expectation. However, this is not a structural issue, but it’s more of a function of markets we serve these Japan-based customers specifically in Europe and American regions, and some of the orders which are taking longer for conversion. Lastly, the stamping business again continues to grow quite satisfactory.
As I mentioned earlier, China is distinctly looking better with steady improvement in performance and positive profitability that we achieved in quarter two and first half financial year ’25. We expect China to grow significantly in current fiscal year, both in terms of top line as well as in terms of profitability, as compared to last financial year. However, Romania prospects continue to remain bleak, so we are working very hard on the strategy for improving the product mix in Romania by pursuing more cages, both from our existing customers as well as the new customers that we are in the process of acquiring. However, I am afraid that in spite of best of our effort, we may not be in position to achieve operating breakeven in Romania in current financial year given the fact that overall demand challenges and also the global volatility and geopolitical tension and supply chain related challenges are continuing. However, on a combined basis between our two key subsidiaries, I expect the losses to be reduced in current financial year, thanks to a strong positive contribution that has started to come from China.
Now if I talk about our solar business, quarter two we saw one of positive profit contribution to the extent of about INR1.5 crores, which has pushed up our EBITDA and PAT margins in quarter two. However, on an annual basis I believe that solar business will continue to remain normal positive profit range given strong policy level impetus resulting into continued strong demand that we are seeing in this segment. However, as indicated earlier, Solar Division is operating on its own without any material additional capital contribution or additional management bandwidth support from the company.
To conclude, I believe that we will achieve at least higher-single-digit top line growth in India Engineering business, but on a consolidated basis, top line growth could be in a mid-single-digit range for the current financial year. However, as we have indicated in the past, the bottom-line growth would be much higher, more or less in line with our current run rate what we have achieved in first half financial year 2025.
I would like to express my thanks to all of you for continued trust and confidence, and I wish you all a very good evening. Over to you Maulik bhai for further numbers. Thank you, Vishal bhai. Hello, everyone, and good evening. Wishing you all a happy and prosperous new year. For the quarter ended September ’24, for the Engineering business at consolidated level, we have achieved top line of INR310 crores against top line of INR327 crores in the immediate previous quarter and INR298 crores in the same quarter last year. Our consolidated EBITDA for Engineering business remain at INR50.2 crores for this quarter against INR40.5 crores in the same quarter last year. On the back of the raw material price pass through and also backed by Europe slowdown as well as product mix impact, our EBITDA margin has been lower compared to previous quarter. Our Solar business have achieved a revenue of INR42.6 crores and EBITDA of INR3.68 crores, and the Solar continue to have a good order level. As Vishal has mentioned, we have one-off revenue in the Solar in this quarter, and he has already given the number of around INR1.5 crores. Overall, our working capital cycle at consolidated level is around 151 days against 153 days in the previous quarter, and company at a consolidated level has incurred a capex of INR34.7 crores in this quarter. With this brief on the financials and the presentation uploaded on the sites, I now request operator to take the Q&A from participants. Thank you.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. [Operator Instructions] The first question is from the line of Harshit Patel from Equirus Securities. Please go ahead.
Harshit Patel
Thank you very much for the opportunity. Sir, my first question is, recently we have witnessed a pressure on gross margins for bearing manufacturers, the likes of Schaeffler as well as Timken. So, is that pressure being passed on to us by these OEMs or the domestic pricing levels are pretty much normal only?
Vishal Rangwala
Yeah, we are seeing some pressure on that front. Some we are able to address and a big chunk of it is automatic pass through because of the material pass through mechanism in place. So, yes, there is some pressure on that but nothing I would say out of ordinary. Normally when there is a demand shrinkage, that pressure comes in.
Harshit Patel
Understood? Sure. Sir, secondly, the greenfield capex which is to be commissioned in 4Q FY ’25 and as per the press release it is also pretty much on track. Now given that this capex is more skewed towards the high margin products like bushings, LSB cages, plastic cages, etc. So, will that give a substantial boost to our overall margin profile when fully commissioned?
Vishal Rangwala
So, I would not be able to exactly say all those products are relatively high margin, but that’s our general sense. Having said that, there is a lot of mix of product also what we are planning to produce at the third site. Now this investment because this is a completely greenfield project, and as there is a gestation period of ramp-up of demand as well as of production ramp up as well. So, in long term, I believe that this should be positive for us, but difficult to fully answer where it should be significantly positive from any specific quarter or otherwise. That’s the general what I can share.
Sanjay Majumdar
And just to add, in the first phase, what we are adding is actually on the bushings and the stampings as the main production. But then there is an overall infrastructure cost also that is being loaded on the first phase. So, I think the margin profile of the greenfield will in a medium- to long-term remain more or less in range of what we are delivering at India level.
Harshit Patel
Understood, sir. Lastly, recently Schaeffler globally, they have started a substantial manufacturing footprint consolidation which is pretty much highlighted in their recent earnings call as well. So, they are reducing the overall number of plants at the global level. So, are we in any way positively or negatively impacted by these measures?
Vishal Rangwala
So, yeah, there are few projects ongoing which are related to some outsourcing as part of this consolidation strategy they have. Partly we believe that what they are doing in India at Savli could be a part of that strategy of consolidation from multiple European facilities, which is response to China plus one sourcing kind of thing from Schaeffler. So, I don’t have a specific answer, but in general we believe we are a good beneficiary of that, what they are working on. We have been working with them on overall consolidation of their cages supply chain as well for a while now.
Harshit Patel
Understood. Thank you very much for answering my questions and all the best.
Sanjay Majumdar
Thank you.
Operator
[Operator Instructions] We have the next question from the line of Shirom Kapur from PL Capital. Please go ahead.
Shirom Kapur
Hi, thanks for the opportunity. I just wanted to add a few questions regarding some datapoints if you could help me with. One would be what was the sales for your stamp component in Q2 and H1? Hello?
Maulik Jasani
Yeah. Sorry, am I audible?
Shirom Kapur
Yeah.
Vishal Rangwala
Yeah. So, our stamping business for H1 remain around INR25.5 crores.
Shirom Kapur
Okay, got it. Just another question now on your Japan sales, when you say flat this quarter, you mean YoY or QoQ? And how is it developing? And you also mentioned it’s not a structural issue. It’s some market related maybe some timing issues. Could you clarify a little bit further on what’s happening in Japan and how you expect that to pick up if not in FY ’25 but then in FY ’26 and beyond?
Vishal Rangwala
Yeah, so what specifically we mentioned are two things, and I’ll clarify that. One, there are projects which are ongoing, which takes some time. The ramp up happens in one quarter, and then we face a ramp up challenge or initial issues. So, those are the initial ramp up challenges we face when it comes to inducting new customer. Second part, what we mentioned specifically because when we talk about Japan, what we say is a Japan origin customer, and these customers, we are serving them in various markets, not only Japan as a country. And we are seeing some significant slowdown of their offspace in Europe and America, looking at overall market conditions. So, the growth is not there because of the overall market condition. And then there are a few projects which are getting softer start versus what we have anticipated.
Shirom Kapur
Right. So, it seems that the slowdown in Europe has been going on for the past few quarters, but now America is seeing a slowing down as well. Could you clarify a little bit on what exactly is causing this slowdown? Is it as a result of just lower demand from the customer side where they’re experiencing low demand or could you just basically give more color on the slowdown in America?
Vishal Rangwala
Yeah. Specifically, I am not able to — all we can share is what we are seeing from our customer. And our customers, they’re asking for lower as compared to what they had earlier projected as well as what they were picking up earlier. And there is also an element of, because of overall economic slowdown, we feel that they are trying to reduce inventory and conserve cash. So, that we believe it’s a combination of all those is we are seeing a lower demand from our customer across Europe and America.
Shirom Kapur
Okay, understood. But is this expected to correct anytime soon or do you see this as a long term impact on our business?
Vishal Rangwala
Basically, we are starting to see some normalization related to all those inventory corrections. When a significant market demand is going down, we see our customer doing further correction on the inventory they hold. And so, we see a little bit higher impact versus actual demand correction. And we are now seeing some normalization of the demand based on those overcorrection or inventory correction mostly already taken place. And we expect that by quarter four, January, February, March, we expect that normalization would have fully taken place. So, we are looking at that improvement in quarter four.
Shirom Kapur
Okay, that’s helpful. And if I could just squeeze in one last question. In a recent interview, NBC Bearings, which I believe is a big bearing company in India, has announced that over the next four years they’re planning to incur around INR750 crores of capex to expand the facilities. And I just want to know if this is something that could benefit Harsha because they’re planning to increase capacity almost 50% over the next two, three years. So, how this could benefit Harsha and whether this has already been factored into your growth projections for the next couple of years?
Vishal Rangwala
Yeah, so we also understand that in the case and NBC Bearing or the company NEI is a big customer for Harsha, a very respected customer for us, and we believe that we will definitely benefit out of that. We offer such a diverse portfolio of product and competency we have within this bearing cage segment. So, that we are feeling quite confident that — or we are highly confident that whatever their requirements are, we can fulfill, take care of it from a technical point of view as well as commercial point of view.
Now I don’t have a specific, but also, we believe that they would potentially be a beneficiary of this whole China plus one deployment by automotive industry or other industry. And we see that definitely benefiting us because we are one of their key suppliers for when it comes to bearing cages.
Shirom Kapur
Okay, thank you. That’s all very helpful and good luck.
Operator
[Operator Instructions] We have the next question from the line of Jason Soans from IDBI Capital. Please go ahead.
Jason Soans
Yeah, hello sir. Thanks for taking my questions. Sir, just wanted to understand, you had spoken very strongly about the bronze bushing segment last quarter also. Of course, you were on target for probably reaching INR80 crores to INR85 crores of top line in the bronze bushing segment. So, any more incremental information on that? And you said that the wind market Europe is still subdued. So, just wanted to have an update on that market in terms of the windmill market, how is it going in Europe?
Vishal Rangwala
Yeah. As far as what information we have when it comes to cages in the wind market specifically, we are seeing steel demand is still subdued when it comes to Europe. However, based on the input from our customer, the wind market remains strong in India. Also, the strength of the bushing is coming from the fact that it is a conversion where it’s more product sold in the market with bushing as a rolling element. So, that’s what is going on there and the reason for growth in that segment. But overall other than India, we see or at least what we hear from our customer, that wind market remains still weak with some pockets of improvement visible.
Jason Soans
Yeah, sure sir. And sir, just wanted to understand, of course, we are a consolidated entity. So, now one thing just wanted to understand in terms of standalone revenues, I believe when you look at Harsha, I think around 45% comes from exports. And if those numbers are right, just wanted to understand how much comes from Europe, U.S., and the rest of the world?
Vishal Rangwala
Out of exports or out of…?
Maulik Jasani
Sorry, Jason?
Jason Soans
Yeah. Maulik bhai, actually for the standalone entity, I just wanted to know the domestic and the exports figure. And in that exports, what regions contribute what percentage?
Maulik Jasani
Sure. So, as mentioned in our investor presentation, this quarter around 42.7% is export from our standalone revenue and out of our overall standalone revenue, roughly, I am just giving you a ballpark number, around 20%, 22% is Europe.
Jason Soans
Okay.
Maulik Jasani
Give me a moment. And also you asked about USA, right?
Jason Soans
Yes.
Maulik Jasani
U.S. is around 7% to 8% and China is around, again, 7% to 8%.
Jason Soans
Sure. So, this is break up for the exports. Okay. And anything else, Maulik bhai, in this? And the rest is rest of the world that way?
Maulik Jasani
Rest, majority goes to Japan out of the rest, Southeast Asia and Japan
Vishal Rangwala
And then the biggest market still remains India.
Maulik Jasani
India is the best, obviously.
Jason Soans
Yes, yes Okay
Sanjay Majumdar
Just a clarification, Maulik bhai.
Maulik Jasani
Yeah.
Sanjay Majumdar
These are the percentages of total sales or composition of export sales. I think what Jason wanted…
Jason Soans
No, sir…
Sanjay Majumdar
So, Jason, that is where the confusion is. So, this is the percentage of the total sales.
Jason Soans
Yes, yes, I got that. So, it’s basically a breakup of the 43%. 20% to 22% Europe, 8% U.S., China 8%, and Japan and Southeast Asia the rest.
Vishal Rangwala
That’s right.
Jason Soans
That’s 57% coming from India, basically for the standalone entity.
Vishal Rangwala
That’s right.
Jason Soans
And sir, just my next question is actually just wanted to understand, when you look at the other pieces, it’s China and Romania subsidiaries which are the main one for you. So, when you look at China, is that only catering to the domestic China market, or are you looking at exports from that entity also? And same question goes to Romania also. Romania, I believe, will be a hub for Europe to the surrounding areas. But just wanted to know about China, how is the strategy there. Is it only catering to the domestic market or are you looking at like an export hub for other countries as well?
Vishal Rangwala
Yeah. So, China’s main focus is China market. We do sell it to some customers outside China, but it remains less than 5%. And for Europe, same. Main focus is European market. And that’s where most of the product is going, most of the customers are located. In addition to those entities selling in the local market of China and Europe, we significantly send what numbers we just talked about a few minutes back. We send a lot of products from India to China as well as India to Europe.
Jason Soans
Okay, sure. Okay. Yeah. And sir, just needed your view on this. Of course, we serve the bearings customers the biggest, and you have a very, very good market share for bearing rings also from them. Now, of course, long term story being strong I understand, but sir, just wanted to understand how do you look at — there is clearly some weakness going on in the bearing segment even in the domestic side. And, of course, Europe and all is weak itself. So, do you see any green shoots going ahead or do you think this is a seasonal structure? If we are still on the uptrend, but probably seasonal, there’s some slowdown. Just your views on it. And basically Europe again remains to be a pain point for other players as well. So, any reason as such you see for the slowdown? And now again, if I look at it connected economically, China also was facing a slowdown. Now stimulus measures are being given. Do you see any such measures giving because Europe also has been soft for a very, very long time? So, anything which will probably boost our market there?
Vishal Rangwala
So, I think for us to predict on the economic front what will happen, it’s difficult. Having said that, as you rightly said, definitely, we feel that whatever this specific year the Chinese market is doing much better versus earlier, could be due to stimulus or otherwise. We believe that Europe is already in a tough spot for almost one year, and it’s a matter of time when it will revive. We are fairly confident, but not able to fully predict exactly how that happens. And to your question about, are we seeing any structural shifts. Not really as yet. But we are seeing few things, I’m sure you might have seen globally SKF separating out industrial and automotive. Schaeffler also in face of this difficult situation, reorganizing, including the merger with Vitesco. So a lot of things happening within our customer. Yes, it could happen, as you said, some shift could come about. But right now, we are yet to see that.
Jason Soans
Yeah. Sure, sir. Sure. And just lastly, sir, just wanted to understand, if possible, when you again look at it from your subsidiary perspective, the Romanian subsidiary in FY ’24 it basically yielded a PBT margin of around minus 4%. That’s just [Indecipherable] a loss. So, going ahead any guidance or anything, you want to give structurally? I understand you said in the opening comments that you’re looking at basically reducing the losses. But any more specific guidance if possible? You already mentioned China has been doing well and just because Romania is a bigger piece in terms of revenue and profitability. So, just wanted to understand how is that going? Any guidance on that front?
Sanjay Majumdar
So, Jason, if I may…
Vishal Rangwala
Yes.
Sanjay Majumdar
Yes, Vishal, you want to.
Vishal Rangwala
That’s fine, go ahead, Sanjay bhai.
Sanjay Majumdar
Yeah. So Jason, the problem here is in Romania our strategy is that, you see, we are trying to move away a little bit in terms of product mix with more cages coming in. Okay. So, we are trying to add new customers. We are also negotiating with our existing key customer to buy more of cages, and the talks are positively moving. So, I don’t see really a top line growth possible even in near term in Romania. In fact, this year there would be a little bit of a negative top line growth. But hopefully by the fourth quarter, if our cage starts picking up, even if the demand remains more or less stagnant, we should be able to try to see whether the margins can become positive. So, this year really, it’s ruled out. Next year we are internally hoping that we will be able to stop losses. Again, beyond that today to do any prediction is like gazing a crystal ball, and we don’t have that.
But it’s just trying to tighten the belts, improve the product mix, reduce the losses, and see whether we can — because in an ideal situation I should have talked about an 8%, 9% EBITDA in Romania. Today we are talking of reaching the positive EBITDA margin first, and then we will talk of growth. So, it’s really a tough thing. But yes, we have a strategy in place, and we are working on it.
Jason Soans
Okay, sure. Sure, sir. Thank you so much. Those were all my questions. Thank you so much for answering.
Vishal Rangwala
Thanks, Jason.
Operator
[Operator Instructions] We have the next question from the line of Shirom Kapur from PL Capital. Please go ahead.
Shirom Kapur
Hi, thank you for the follow-up. Just wanted to get a couple more data points. If you could share the revenue and EBITDA figures for Romania and China individually for Q2 and for H1.
Maulik Jasani
So, Shirom, as we have informed in the previous investor call also, for the overseas subsidiaries we prefer to give a combined numbers and that’s what we have given also in our investor presentation and even our results in the segment information.
Shirom Kapur
Okay, sure. And if I could also just maybe — these are just my thoughts, but your greenfield capex that you’re doing with Harsha Advantek, and you’re adding new additional capacity for your existing products with the bronze bushings, large size cages, and stamp components. So, I just want to understand the rationale for it being part of a new subsidiary as opposed to just a regular expansion of your existing business. And this is more from the perspective of going forward if we were to see a consolidated minus standalone numbers, it won’t just reflect your Romania and China numbers, but it would likely also include Harsha Advantek’s numbers right after the plant is commissioned. So, I’m just wondering maybe going forward whether you’d be giving some bifurcation and how just to understand the thought process behind this being under a subsidiary as well.
Maulik Jasani
Yeah, one subsidiary will be fully operational, although it has started doing operation in the offsite. But it is still on a very minuscule level. And once it is fully operational, we will decide how to share those numbers with the investors. And on the rationale, yes, this is our incremental business where we see a good amount of growth prospects. And although in our existing line of business, both bushings as well as LSB were a very small pie in the overall existing business, which we see that it has a potential to grow and hence we need an incremental setup and capacities over there. And that is the reason it qualifies for the new site. And same is the logic with the stamping which is very small business as you are aware. And we see that there is a great potential over there also to expand these business lines. And hence we have decided a separate site and separate company for the same.
Sanjay Majumdar
But just to add Maulik bhai, it’s anyway going to be a part of engineering and others India.
Maulik Jasani
Exactly. Whenever we will disclose it, it will be…
Sanjay Majumdar
It will be consolidated with India. So, you will always have India as a one clear number and then the overall consolidated. So, you should be able to clearly decipher how things are moving. Should not be a problem.
Shirom Kapur
Okay. So, the numbers in the presentation of India, going forward, will always include the new subsidiary as well.
Sanjay Majumdar
Yeah, obvious.
Shirom Kapur
Sure.
Maulik Jasani
We will ensure that number is communicated well.
Sanjay Majumdar
Yeah, don’t worry.
Shirom Kapur
Yeah, sure, absolutely. I appreciate that clarity. And just if I could ask a last follow-up is. As we saw this quarter, the exports definitely from India have declined considerably. But from your domestic sales within India have seen quite a good improvement. And I’m just wondering from a long-term perspective how you see the growth in India. I know there’s with China plus one and the outsourcing opportunity taking place. So, can we see this sustainable 15%, 20% growth happening in India going forward? I’m just talking about the sales within India, given your new subsidiary coming up as well.
Sanjay Majumdar
So, we are not actua lly giving any specific guidance for next year.
Shirom Kapur
Okay.
Vishal Rangwala
But I think I will take that as a directional. We see very positive growth so far as well as we expect that positive growth or good significant growth will continue. As Sanjay bhai mentioned, we don’t have a specific guidance right now, and we do not intend to share that. But all those drivers, as you mentioned, our customers drive towards China plus one and bushing business growth which is currently focused on the Indian market specifically, all that will definitely drive that number positive is what we feel.
Sanjay Majumdar
Yeah. So, just to add, we are very bullish on India and India can definitely grow at around 20%, but I think it’s a bit early for us. But let’s wait. We are very hopeful that we are working on a lot of projects also. So, things can definitely be very aggressive at India level. But we’ll have to see how globally things pan out. That’s why we said that we’ll probably want to wait for some more time.
Shirom Kapur
Sure. And just one last question on your subsidiary. The margins that you saw at subsidiary levels, if you were to bifurcate at the consolidated India and then coming to subsidiary number, the margins that we saw there last three quarters after Q2 last year, we see them to be positive around 3%, 3.5% at EBITDA level. But this quarter specifically, it’s come back down to seems like less than 1% as per the calculations that we’ve seen. So, is there any reason why this particular quarter we’ve seen a jump even though it had been — I understand the commentary is still weak from Romania perspective, but even sequentially from the last three quarters to now this quarter specifically, we see the decline. So, any particular thing that’s happened this quarter that’s further impacted the profitability in the subsidiaries?
Maulik Jasani
So, basically you rightly said, Shirom, as said in the commentary, mainly on account of Europe slowdown, including the Romania performance, and also because of the price pass through mechanism, because the last quarter we had a benefit of the lower price procurement which has been passed through in this quarter and which has been squared off.
Shirom Kapur
Okay, sure. That’s clear. Thank you so much for answering all my questions.
Sanjay Majumdar
Thank you.
Operator
[Operator Instructions]
Sanjay Majumdar
Maybe, moderator, if we don’t have any further questions, you may consider closing the call.
Operator
Certainly, sir. We do not have any questions in the queue at this moment. I would like to hand the conference over to Mr. Vishal Rangwala for closing comments. Over to you, sir.
Vishal Rangwala
Right. So, thank you. So, again, ladies and gentlemen, really appreciate you joining this call today to get an update about Harsha’s quarter two. And we hope you have a good day and good evening. Thank you very much.
Sanjay Majumdar
Thank you, sir. Thank you very much.
Operator
[Operator Closing Remarks]