Man Industries (India) Limited (MANINDS) Q1 FY23 Earnings Concall Transcript

Man Industries (India) Limited (NSE: MANINDS) Q1 FY23 Earnings Concall dated Aug. 12, 2022

Corporate Participants:

Mahantesh — Manager, Investor Relations

Ramesh C. Mansukhani — Executive Chairman of the Board

Analysts:

Asherman — Individual Investor — Analyst

Chirag — Keynote Capitals — Analyst

Unidentified Speaker —

Manish Gupta — Solidarity — Analyst

Manjeet Buaria — Solidarity Investment Manager — Analyst

Arvind — Individual Investor — Analyst

Presentation:

Operator

Ladies and gentlemen, good day and welcome to the Man Industries India Limited Q1 FY’23 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded.

I now hand the conference over to Mr. Mahantesh from Man Industries. Thank you, and over to you, sir.

Mahantesh — Manager, Investor Relations

Good evening, everyone. This is Mahantesh, Manager, Investor Relations from Man Industries. I welcome you all to Q1 FY’23 earnings conference call of Man Industries India Limited. I have with me from management, Dr Ramesh Mansukhani, Chairman; Mr. Nikhil Mansukhani, Managing Director; Mr. Ashok Gupta, Chief Financial Officer; and Mr. Jatin Shah, Company Secretary.

We’ll have a brief opening remarks from the management followed by Q&A. Please note that this call may contain some forward-looking statements involving risks and uncertainties. Listeners are cautioned not to put any undue reliance on the facts presented during the call. With this, I hand over the call to Mr. Ramesh Mansukhani for his opening remarks. Thank you.

Ramesh C. Mansukhani — Executive Chairman of the Board

Thank you, Mahantesh. Good evening, everyone, and a warm welcome to the Quarter One FY’23 earnings conference call. Let me begin by giving you a brief of the standalone financial performance for the quarter. We have registered a total income of INR507 crore — INR508 crores and growth of the top line around 23.8% compared to quarter one FY’22. Our EBITDA stood INR35 crore approximately with the profit of — net profit INR10.5 crore. During the quarter, we witnessed cost of key commodities like metals, polymers, [Technical Issue] chemicals etc and logistic cost also increased because of the war between Ukraine and Russia, which impacted quarter one badly.

However, since past July, we are witnessing [indecipherable] prices of these commodities and helping and this softening will accept our performance to improve going ahead, with the pulling [Indecipherable] prices and other raw materials along with government focus on creating strong infrastructure for [indecipherable] and water sector, we estimate the higher order over the next few quarters. As on date, our total unexecuted order, which is approximately INR1,000 crore and will be executed five, six months.

Our bid position is approximately INR17,000 crore. These bids are at various stages and we expect to book tangible orders over the next few months.

Coming to the some of the sector highlights, it is expected increasing demand for natural gas, petroleum products will drive the oil and gas market over the next five years. Indian oil and gas market in the expected [Indecipherable] about 6% to cater and to this rising demand, oil and gas majors are increasing their capex [Indecipherable] network line pipes which it is the most economical way to transport crude oil and petroleum products over long distances.

We also see demand in the water sector coming on [Indecipherable] and increasing interaction across various state. There is a strong intent to achieve the ambitious target set under various schemes like The HAR GHAR JAL national river linking etc. The [indecipherable] for the piping industry is considering the infrastructure requirement to develop this network in the coming year.

Update on the capex. I’m delighted to share where the work on our VRWC Pipe project implementation, is on track and is developing well as per the revised schedule. Along with this, our plans to introduce [Indecipherable] business, we’ve also been progressing well in order to major order equipment critical equipment already placed and work is going into full swing.

With our in-house manufacturing and extended execution capabilities, we are confident to scale our business in the near future, deliver consistent growth. These are all from our side, we can now open the call for question-and-answer.

Questions and Answers:

Operator

Thank you. We will now begin the question-and-answer session. [Operator Instructions]. The first question comes from the line of Asherman [Phonetic], an Individual Investor. Please go ahead.

Asherman — Individual Investor — Analyst

Thank you for the opportunity. Sir, I would like to first of all, I was unable to attend the last conference call. So I would like to point out that Man Industries has violated the SEBI rules for the listing obligation. I guess the promoter has purchased equity when the trading window was closed during the previous quarter, this is not the first time that it has happened. This has happened in 2019 also. So I would like to — I would like on behalf of minority shareholders would bring notice to that, that if we can focus on the corporate governance side, it would be really good, sir.

Ramesh C. Mansukhani — Executive Chairman of the Board

Okay. Mr. Asherman, I would like to say, 2019, there is not any violation regarding to buying the share by any group companies. There may be some other thing, not this one. This is a first time in our history last 25 years, our one of the sister concern, they purchased the share and they were not aware — the concerning person the day he put the deal, he was not aware. Once we realized, then it was — that’s why we under the settlement process, we paid the penalty and we submitted to the SEBI. I hope that mater is now closed, and it was only 100,000 shares, which was not intentionally, not purposely. Once the company promoters are having share or more than 3 crore — 3.5 crore, 100,000 is not a big thing, this a purely mistake and accepted by our one of the sister concern, not by the promoter company, but one of the promoter company by mistake [Indecipherable], that’s why we already told.

Asherman — Individual Investor — Analyst

One more thing I would like to point out about the forensic audit that SEBI had ordered. So is there any read from that or report from that?

Ramesh C. Mansukhani — Executive Chairman of the Board

No, actually not nothing is happening we are awaiting some response from there as well as the matter is in progress, we will inform you.

Asherman — Individual Investor — Analyst

Okay. And this cost — this cost of the raw materials, which has inflated a lot. So this is for whole of the industry, right. So which is not Man Industries which has only facing this problem, right?

Ramesh C. Mansukhani — Executive Chairman of the Board

Yeah, the raw material prices from July onwards last two months is softening, all the sectors including metals, plastics, chemicals all is coming pre high level is slowly, slowly changed. It’s a good for our industry.

Asherman — Individual Investor — Analyst

Okay. And I would like to know the volume volume and value growth on the revenue side.

Ramesh C. Mansukhani — Executive Chairman of the Board

You are talking about the future or what?

Asherman — Individual Investor — Analyst

No, volume growth, we can see that the volume of INR400 crores of revenue as rising to INR510 crores. So what is the part of the value and what is the part of the volume. Can you bifurcate it, if it is possible.

Ramesh C. Mansukhani — Executive Chairman of the Board

Not possible this moment, but I can give the ballpark figure, volume that increases, sorry the turnover increased around 25% and the volume also almost same.

Asherman — Individual Investor — Analyst

So we haven’t taken any price rise right so raw material prices have inflated. But we haven’t taken any price rise. So can we —

Ramesh C. Mansukhani — Executive Chairman of the Board

But no rise right in future whatever the business are coming price hike is now already pass through stage and our price formula now we have already taken care about it.

Asherman — Individual Investor — Analyst

Okay. So quarter two would be the — quarter two, we have already taken a price hike, you’re telling that, right?

Ramesh C. Mansukhani — Executive Chairman of the Board

Yes.

Asherman — Individual Investor — Analyst

And the contract, which we had already the order book is that is not, it is not based on escalation clause?

Ramesh C. Mansukhani — Executive Chairman of the Board

No. Normally, in our case most of the cases we can say, more than 90% cases, our government is buyer, there is no escalation clause.

Asherman — Individual Investor — Analyst

Okay. And I would like to suggest only one thing in the case where the raw materials that is very high. Can we bring down the time period for the order book, then it would be really helpful for us to pass on the raw material prices. If it is not escalation clause, we can vary our price rise at every order.

Ramesh C. Mansukhani — Executive Chairman of the Board

Yeah. Normally we do once we get the order, we normally do back to back, for the not 100% quantity may be 90%, 99% quantity as per the yield, a lot of other parameters are there which is left out, which is impacted only. That’s why the impact was low, but normally we take care back-to-back basis. And historical maybe 10, 15 years once, it was once in a while it was a matter.

Asherman — Individual Investor — Analyst

And sir. Last question from my side. Operating margin has fallen to 4.33%, so will this be the operating margin for the next coming two quarters and then it will improve or what would be your guidance. I’m not asking for quarter wise, I’m asking for the whole year or for coming two years. What would be your margin [Indecipherable] for the two years.

Ramesh C. Mansukhani — Executive Chairman of the Board

We estimate and we are expecting our EBITDA will go back the same level in future, because we have right now the good order book position as well as to value-added products and the coming good book also expecting the improvement in all the quarters coming quarters.

Asherman — Individual Investor — Analyst

And prudent level I can assume around 7% of EBITDA, right.

Ramesh C. Mansukhani — Executive Chairman of the Board

No, not at this time 7% but we didn’t go back the whatever we were doing last year also, which was approximately 10%. We will, we are expecting to go back to level debt level also.

Asherman — Individual Investor — Analyst

Okay. Thank you. That’s all from my side. Thank you.

Ramesh C. Mansukhani — Executive Chairman of the Board

Thank you.

Operator

[Operator Instructions]. The next question comes from the line of Chirag from Keynote Capitals. Please go ahead.

Chirag — Keynote Capitals — Analyst

Yeah, thank you for the opportunity. Sir. As you are saying that we have started passing on the cost or the cost of raw materials are coming down, what kind of gross margin are we looking at from the second quarter itself?

Ramesh C. Mansukhani — Executive Chairman of the Board

I’m not talking about the gross margin, Chirag. We are talking about the EBITDA, if you see the last year our three, four quarters result [Indecipherable] 10% plus. I think except this quarter, we will go back to the same level, go back to 9% level and normally in our business, gross profit margin, EBITDA, you say between 8% to 12%.

This quarter was very exceptional and the future quarters depend on should be much better value added coating kind of coating, which kind of upgrade the pipe, lot of calculations there, but considering order balance on hand and the bid book position, we are expecting good growth in EBITDA and as well as to order book position.

Chirag — Keynote Capitals — Analyst

What percentage of our order book is value added products?

Ramesh C. Mansukhani — Executive Chairman of the Board

Right now, you can say this moment we have around 90% orders roughly are good value added products.

Chirag — Keynote Capitals — Analyst

Roughly. And can I expect that 90% of our books are also based on oil and gas industry?

Ramesh C. Mansukhani — Executive Chairman of the Board

The 90% this is a all value added products and this is from oil and gas only. And hardly 10% from the water segment.

Chirag — Keynote Capitals — Analyst

So it makes sense that we are going to have 10% to 12% operating margin for the next three quarters.

Ramesh C. Mansukhani — Executive Chairman of the Board

Which we are expecting, as we say, the order book — the original whatever last year EBITDA, we will reach over there very soon.

Chirag — Keynote Capitals — Analyst

My second question is, we have the policy of reverse bidding option, correct?

Ramesh C. Mansukhani — Executive Chairman of the Board

Yes, sir. In not all cases, in some cases.

Chirag — Keynote Capitals — Analyst

Can you elaborate it. What does that mean that in not all case, but in some cases, because I was under impression that majority of our orders are raised on reverse bidding. So that is the reason we can have a stable gross margins, but that is not the case.

Ramesh C. Mansukhani — Executive Chairman of the Board

No, I will give a little bit more highlight on this issue. Actually, the Indian PSU, which are now all adopted reverse bidding, but the international market, whatever export bid is there still is a close bid. And although it’s electronic bid, but not reverse bidding, there is a difference, Indian IOCL, HPCL, BPCL they follow central government purchasing policy, which is now most of the cases is the reverse bidding, for the export, no.

Chirag — Keynote Capitals — Analyst

Can you bifurcate the revenue based on domestic and exports for the quarter?

Ramesh C. Mansukhani — Executive Chairman of the Board

Yeah. This time this moment you can say 80% is a domestic, 20% export, but the whatever bid INR17,000 crore bid we put, which is almost 80% export and 20% domestic, just reversal.

Chirag — Keynote Capitals — Analyst

Got it. Correct me if I’m wrong on this that does export business has comparatively lower margin than domestic business. Correct?

Ramesh C. Mansukhani — Executive Chairman of the Board

Sorry, can you. No, not like that, export business is mostly better pricing and less competition because many locations, very few people are competition over there, depend on which country, what kind of company is buying the pipe, so lot of parameters are there. Now our export bid book is much, much higher and the domestic routine is going on.

Chirag — Keynote Capitals — Analyst

Sir, actually I was under the impression that due to higher freight cost, generally margins are a bit lower than domestic margin, steel pipe internally. So you are saying that is not the case. Correct?

Ramesh C. Mansukhani — Executive Chairman of the Board

You are talking about export freight, you’re talking —

Chirag — Keynote Capitals — Analyst

Yes, as we are making more export. We are having an active book of 80 percentage of INR17,000 crores into export business. I’m expecting our outward freight cost is going to go up due to which there can be an impact on operating margin. This is my presumption, and I’m asking that is it correct or not?

Ramesh C. Mansukhani — Executive Chairman of the Board

Right, but nowadays the difference is there, the sea freight whatever gone up also it is also cooling down, but it is cooling down, export now are more liquidative for both our will depend on country for project sometime, India, sometimes this thing. So we have to see the client and client requirement and the period up supply lot of thing was there.

But because of the commodity prices cooling down, now, shipping freight also little bit has gone down.

Chirag — Keynote Capitals — Analyst

The last question, I was hoping that we had, as we have seen that strong price increase [Indecipherable] even Indian company, Indian [Indecipherable] companies are coming up with good capex [Indecipherable] orders active order bid in India’s [Indecipherable] compared to exports, are there any kind of order [Indecipherable] from their end.

Ramesh C. Mansukhani — Executive Chairman of the Board

Your voice is breaking. Your voice is not clear. Chirag, once again, can you please come again please.

Chirag — Keynote Capitals — Analyst

Am I audible now?

Ramesh C. Mansukhani — Executive Chairman of the Board

Yeah, better, yes.

Chirag — Keynote Capitals — Analyst

From my understanding, when I heard the calls of OMCs and other peer set of companies into steel pipe, I was expecting that a bit of higher order book and active order books on Man Industries is also related to the domestic players. So I’m not able to understand like why our — aren’t we looking at domestic orders currently and our active order book is also only 20 percentage, which is targeting domestic markets. So I just wanted to understand why is that case whereas others are not doing this thing.

Ramesh C. Mansukhani — Executive Chairman of the Board

At this moment, whatever the order book is there that is all 90% on domestic front, but what we are telling that we with book position where we have bid for almost INR17,000 crore of the project. there are around 80% of the bids for export orders and remaining 20% bd for domestic orders. So, we are targeting our turnover maybe equal to balancing 50% for domestic, 50% towards exports.

Unidentified Speaker —

End of the year.

Chirag — Keynote Capitals — Analyst

Got it. And can I expect that out of this active order book, we can convert 20% into actual orders?

Ramesh C. Mansukhani — Executive Chairman of the Board

Whatever the order books are in hand that is going to be converted into — that is going to be executed in next five to six months and so far as bid book is concerned, we have good chance of winning good quantum of orders — good portion of it.

Chirag — Keynote Capitals — Analyst

No sir, I’m just asking that historically I have seen that Man Industries is able to book 15% to 20% of the active order bid order book —

Ramesh C. Mansukhani — Executive Chairman of the Board

That’s what we are saying, we are having good chances to win a good amount of orders.

Chirag — Keynote Capitals — Analyst

So can I expect that it can be around 20 percentage?

Ramesh C. Mansukhani — Executive Chairman of the Board

Could be.

Chirag — Keynote Capitals — Analyst

Okay, thank you. Thank you, sir.

Operator

Thank you. [Operator Instructions]. Next question comes from the line of Manish Gupta from Solidarity. Please go ahead.

Manish Gupta — Solidarity — Analyst

Thank you for the opportunity. So I had three questions. The first one is that you mentioned you cover back to back your steel costs to the extent of 90%. So the question was why do you cover it to 90, why wouldn’t you just hedge the complete commitment that you have to produce for. Why would you keep 10%, 15% open?

Ramesh C. Mansukhani — Executive Chairman of the Board

Manish, good afternoon. Manish I will reply here, the company policy back to back 90% purely reason, two factors are there. One, yield calculation always we do up to 75%, 85%, we always review the situation what yield we are getting, yield maybe 1%, 2% here and there, that’s why safe side we book 90%. Number two, sir. The other issue in some purchase order the client is having the liberty plus, minus few percentage, which is approximately 5%. We have to consider this both the sectors it’s why we book 90% and the 10% we book very close to completion of the project. Here the quarter which we got the hit apart from metal, other items chemicals, plastics, etc, which is normally we do not hedge, we normally buy on the spot market normally.Because price fluctuations are very less, this quarter was very exceptional problem because of the Russia-Ukraine war in the month of February, then prices shoot-out of the plastic and chemicals in the month of April, May, June. So whatever spot prices we have to complete the project.

Now, the situation is reversed last one and a half month than debt benefit also, we will get in future, 90% policy is bad maybe one quarter or good for the future quarters for ever. So this is a company policy.

Manish Gupta — Solidarity — Analyst

Okay, very clear. Sir. My next question is sir, can you give us an update on Merino specifically are you — what stage are you in your resolution process. Do you have, are you still in discussions, do you have a verbal agreement, do we have a term sheet. I mean, is it possible to get some concrete timelines by which this can be resolved?

Ramesh C. Mansukhani — Executive Chairman of the Board

Yes, sir. I can give this thing, this settlement process is completed, negotiation is completed, documentation is going on. And next two months everything will be executed which I can give this thing.

Manish Gupta — Solidarity — Analyst

So that means you have a term sheet, if you’re saying documentation is happening, you have a signed term sheet?

Ramesh C. Mansukhani — Executive Chairman of the Board

[Indecipherable] you can say term sheet supplemented whatever you said and that is executed by them, they sent to us our law firm has made some changes, which is going on. Almost is finalized and we hope to sign next week. And then we have two months for execution.

Manish Gupta — Solidarity — Analyst

Okay. My third question is, sir, that would you be able to tell us what is the market value of real estate that is on the company’s books today. Approximate market value.

Ramesh C. Mansukhani — Executive Chairman of the Board

Approximate market value approximately is INR200 crore.

Manish Gupta — Solidarity — Analyst

So in your balance sheet, what is shown at cost, the market value of real estate, will be about INR200 crores.

Ramesh C. Mansukhani — Executive Chairman of the Board

We are estimating INR200 crores. Actually our investment is INR100 crore.

Manish Gupta — Solidarity — Analyst

Okay. And the last question I have is that the company is not growing very, very aggressively. 10% to 12% kind of growth. So, will you have any surplus free cash flow available to you after you make your capex investments?

Ramesh C. Mansukhani — Executive Chairman of the Board

The capex investment is already consider and our capex more than 50% is already deployed and this moment we are not taking any disbursement because the work is smoothly going on. Still we have some amount to draw in near future as per the need of the company.

Manish Gupta — Solidarity — Analyst

No. My question, sir. Is that over the next 24 months will the company have any surplus cash after completing its capex obligations?

Ramesh C. Mansukhani — Executive Chairman of the Board

In the next 24 months. I can say Mr. Gupta will reply also, he will support me. The this current year, whatever ERW will be completed end of the year, there will be surplus, but after putting up the [indecipherable] plant next year, whatever would be surplus will be deployed over there. I’m talking about 24 months.

Manish Gupta — Solidarity — Analyst

Okay. So what I hear you say sir is that practically speaking there is no surplus because you need the surplus for the stainless steel plant next year.

Unidentified Speaker —

Mr. Manish. Let me explain estimates in any different manner. See, after having this cash profit in our books for next two year — for current year as well next year, we are planning to put our [indecipherable] stainless steel. So that cash generation plus whatever the asset monetization program, what we are like modular shelters, we are planning to dispose it off. And additional cash we are going to get that additional cash from that and further to that land deal what we had in our books for INR31 crores that has also been under monetization program. And soon it is going to be in the cash form in our books. So we will be having sufficient cash flows even of the deploying our cash for capex program.

Manish Gupta — Solidarity — Analyst

So my question sir, very simply, is that you have INR200 crore of real estate on your books, you have surplus cash, the promoter holding is well below 75%. Why would you not more aggressively buy back your stock?

Ramesh C. Mansukhani — Executive Chairman of the Board

Let the time come, once this whatever asset monetization program is going on. If one, if any fine day we will see, we have the sufficient surplus funds in our books physically, then probably we can think for buyback or other options.

Unidentified Speaker —

Manish, in simple words, Mr Gupta is saying we monetizing the Merino, we are monetizing the Ballari plant, which we already sold, money will come next month. This is the problem with between the Piramal etc will be finished by this thing, then we will be more confident to say what will be the excess money in future.

The first excess money to clear everything put our expansion program. And what will be the surplus. And then we will see what can we do, but at this moment, difficult to comment on this issue very [Indecipherable] as already [Indecipherable] our capex program your suggestions are well taken. But at this moment we have not committal, we want to finish all our old matters top priority next two.

Manish Gupta — Solidarity — Analyst

Okay, very clear. Thank you.

Ramesh C. Mansukhani — Executive Chairman of the Board

Thank you, Manish.

Operator

Thank you. [Operator Instructions]. Next question comes from the line of Manjeet Buaria from Solidarity Investment Manager. Please go ahead.

Manjeet Buaria — Solidarity Investment Manager — Analyst

Hi, good afternoon, sir. And thanks for taking my question. I just wanted to understand what is the outstanding loan in Merino and at what portions is the settlement being roughly done. So I just wanted to understand what is the excess we will have as equity after the settlement is done?

Ramesh C. Mansukhani — Executive Chairman of the Board

So we have signed an NDA with the borrower and lender and documents are under execution and this moment to comment, this is not a right time because, we are abide by the legal procedure. So please wait for a few more weeks, you will get to know, what we have done, but in the larger interest shareholder that will be there, the good thing is being done.

Manjeet Buaria — Solidarity Investment Manager — Analyst

Okay, sir. We’ll wait for that update. The second question was the INR200 crores market value of real estate approximately, which you mentioned this is house under the Merino subsidiary, am I correct or is your standalone balance sheet of the company?

Ramesh C. Mansukhani — Executive Chairman of the Board

Can you just repeat your question?

Manjeet Buaria — Solidarity Investment Manager — Analyst

You mentioned the market value of the real estate is the company has roughly INR200 crores, is this under the Merino diesel entity or is this on the standalone balance sheet?

Ramesh C. Mansukhani — Executive Chairman of the Board

No, sir. This is a value of the project. Only one project in that company and we are disposing off, then some liabilities also will go, company will get the money. And then the situation will be more clear. Only one project there company, nothing else.

Manjeet Buaria — Solidarity Investment Manager — Analyst

But I just clarify this. This project is in Merino, INR200 crores approximately the project which is in Merino.

Ramesh C. Mansukhani — Executive Chairman of the Board

The INR200 crores is basically for all the asset which Man Industries owns, which has Merino, one more land in Karnataka, which together put together, make it is INR200 crore assets.

Manjeet Buaria — Solidarity Investment Manager — Analyst

Got it. Would it be possible to split it between —

Unidentified Speaker —

Out of which INR40 crores is directly on the Man industries and Merino Shelters is around INR150 crores, INR160 crore.

Manjeet Buaria — Solidarity Investment Manager — Analyst

Very helpful, thank you for clarifying this.

Operator

Thank you. Next question comes from the line of Arvind, an Individual Investor. Please go ahead.

Arvind — Individual Investor — Analyst

Thank you for giving me the opportunity, I have two, three questions, sir. First one is, as you said out of INR17,000 crore bid book we have, how much percentage we will be successful in getting the orders. How much percentage of that INR17,000 crore?

Ramesh C. Mansukhani — Executive Chairman of the Board

The INR17,000 crore bid, this is all the time, very dynamic, every time it changes, what will be the percentage of success. What is the evaluation stage there is a very different conditions, but we can say whatever we are requirement of the business to fulfill our order book will be sufficient so far, will be sufficient so far.

Arvind — Individual Investor — Analyst

My second question is, can we have more revenue guidance for next two years.

Ramesh C. Mansukhani — Executive Chairman of the Board

Revenue guidance. As we discussed last time also, we are anticipating some growth, good growth in this year, depends on some projects we already bidded situation will be more clear in next one month. And next year will be the additional revenue apart from the growth will be additional revenue from ERW and some value added products also.

In percentage wise. I cannot say right now what will be, but there will be the good growth in ’23 as well ’23 and ’24 also.

Arvind — Individual Investor — Analyst

And my last question is regarding the [Indecipherable] bonus shares. Is there any clarity on that.

Ramesh C. Mansukhani — Executive Chairman of the Board

What was your question?

Arvind — Individual Investor — Analyst

Regarding [Indecipherable] bonus shares.

Ramesh C. Mansukhani — Executive Chairman of the Board

No. You are talking about the bonus share.

Arvind — Individual Investor — Analyst

Yes.

Ramesh C. Mansukhani — Executive Chairman of the Board

So right now, we cannot comment on this issue please.

Unidentified Speaker —

[Indecipherable]All the commitment for the bonus share regarding from Man Industries, we’ve already done and then now the matters in court from the other side, so far, already from Man Industries everything is complete.

Arvind — Individual Investor — Analyst

That’s it from last two years [indecipherable].

Ramesh C. Mansukhani — Executive Chairman of the Board

We are trying as soon as possible all decisions we will see.

Arvind — Individual Investor — Analyst

Can we have some specific guidelines for timeline.

Ramesh C. Mansukhani — Executive Chairman of the Board

No, sir, matter is subjudice, our legal team is trying to, as soon as possible to resolve to give me good news to you.

Arvind — Individual Investor — Analyst

Thank you.

Operator

Thank you. As there are no further questions, we have reached the end of question and answer session. I would now like to hand the conference over to the management for closing comments.

Ramesh C. Mansukhani — Executive Chairman of the Board

Thank you everyone for your participation in quarter 1Q FY’23 earnings call, in case of any further queries, feel free to get in touch with us. Thanks a lot for your time and attending these questions. Thank you.

Operator

[Operator Closing Remarks]