Marathon Nextgen Realty Ltd (NSE: MARATHON) Q1 2026 Earnings Call dated Aug. 12, 2025
Corporate Participants:
Unidentified Speaker
Chetan Shah — Chairman and Managing Director
Analysts:
Unidentified Participant
Kanav Khanna — Analyst
Jai Chauhan — Analyst
Kush Shah — Analyst
Parshwa Veer — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Q1FY26 earnings conference call of Marathon Next Gen Reality Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touch tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Kanav Khanna from EY IR. Thank you and over to you sir. Thanks.
Kanav Khanna — Analyst
Good noon to all the participants on the call and thank you for joining in the Q1FY26 earnings call of Marathon NextGen Realty Limited. Please note that we have mailed out the results to everyone and you can also see this on our website and it’s also been uploaded on the stock exchanges. In case you have not received the same you can write to us. We’d be happy to send it over now. Before we proceed to the call, let me remind you that the discussions may contain some forward looking statements and may involve known and unknown risks, uncertainties and factors.
It must be viewed in conjunction with our business that could cause the future result to performance or its achievement to differ significantly from what we have expressed or implied. To take us through the results of this quarter and answer to all of our questions, we have the management of Marathon Next gen represented by Mr. Chetan Shah Chairman and Managing Director, Mr. Mayur Shah Vice Chairman, Mr. Keval Shah, Director and Mr. Samyaksha Director. We will be starting the call with a brief overview of the quarter gone past and then we will follow it up with some question and answer.
And with this being said I’ll transfer to the. I’ll transfer the call to the management. Over to you sir.
Chetan Shah — Chairman and Managing Director
Thank you Panam. Good afternoon everyone. Thank you for joining us. For Marathon Next Gen Realty’s Q1 FY26 earnings call I am pleased to report that we have begun FY26 on a strong note delivering robust performance across all key operational and financial metrics. This quarter’s results demonstrate the strength of our business model and strategic positioning in Mumbai’s dynamic real estate market. Starting with our operational performance area sold is 7% more than as year over year Growth pre sales value jumped 16% to 183 crore. Collections have surged 28% to 239 crore. These numbers demonstrate the continued market demand for our project and underscore our consistent execution capabilities and the trust our customers place in Marathon brand Friends, the momentum we are experiencing is directly linked to the broader industry dynamics.
The Indian real estate sector, particularly in the Mumbai metropolitan region where we operate, continues to benefit from favorable demographics, ongoing urbanization and improved infrastructure connectivity. Our strategic focus on high growth corridors like Baikala, Bando, Dombeivali and Panvel has positioned us perfectly to capitalize on these trends. Friends, this strategic positioning is paying off across our project portfolio. Our market developments Marathon FutureX at Lower Parel, Neo Homes at Bandu, Nexon at Punville I are all experiencing positive market response and stable growth this quarter. We received occupation certificates for three Towers at Next Zone Panware, which not only accelerates our revenue recognition but also demonstrates our execution capabilities in a competitive market.
Three key micro markets have seen leadership in the market. Monte south in Baikala ranks among top three projects in both supply and sales volume. Marathon Next Zone Panve holds a similar top three position in Panvel, while New Homes in Bandu is also among the top three by market supply. These rankings across different price segments and locations showcase the breadth of our market appeal. Friends, beyond residential, our commercial portfolio in Lower Parel and Mulloon Lower Parel we have Marathon, featurex and Mulloon we have Marathon. Millennium continues to attract strong interest from both end users and investors, adding another dimension to our revenue stream.
The strategic highlight of this quarter was our successful QIP fundraising of rupees nine hundred crore rupees nine thousand million. QIP closed on June 30th. That is the last day of the quarter. The overwhelming response from the leading domestic and foreign institutional investors including marquee names like Quant, Mutual Fund, Kotak, Alternate Asset Managers reflects the market’s confidence in our growth trajectory. We have been strategic about deploying these funds. Repayment of debt of about 340 crore in July, an interest saving of rupees 10 crore quarterly and rupees 40 crore annually will result from this repayment. Debt to equity ratio, which was already very low before QIB is now at absolutely zero level.
With debt reduction in numerator and equity augmentation in denominator. Net debt is zero with a sizable liquid balance available with US rupees 300 crore out of the QIP fund are earmarked for land development and project acquisition to build our future pipeline. Let me invite you to suggest good projects in Mumbai. Our focus is going to be redevelopment in South Mumbai. Additionally 160 crore are earmarked for fast pacing our ongoing projects. Friends, Complementing this is our parent company’s asset merger which is progressing through regulatory approvals this will bring valuable land assets and premium projects into the company, creating a simpler, more efficient structure that enhances our competitive positioning.
These strategic initiatives are reflected in our financial performance for the quarter. Total income grew by 10% year on year to 191 crore while EBITDA expanded to 27%, an amount of 81 crore. Most notably, profit after tax surged 63% year on year to 62 crores, significantly outpacing industry’s growth and reflecting our focus on high margin projects. Looking ahead, Our execution capability together with infusion of funds gives us a faster momentum in completing ongoing projects ahead of the schedule. Our diverse portfolio from luxury projects like Monte south in Baikala to affordable new homes to commercial tower futurex positions us well across market segments.
Combined with our strength, strengthened balance sheet and robust land pipelines, we are well equipped to capitalize on the positive industry outlook. The fundamentals supporting real estate remain very strong. Steady GDP growth, continued urbanization and supportive government policies. Our strategic focus on premium locations, operational excellence and financial discipline positions Marathon NextGen to continue outperforming industry benchmarks while delivering sustainable value to all stakeholders. In conclusion, quarter one has established a solid foundation for financial year 26. With accelerated execution, stronger financial and enhanced market positioning, we are confident that this will be a better year of of strong performance and sustainable growth for marathon next gen.
Friends. I will now open the floor for your questions.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on your touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Jai Chauhan from Prenata Asset Managers. Please go ahead.
Jai Chauhan
Hello, Good morning and thank you for the opportunity. Am I audible?
Unidentified Speaker
Yes, you are.
Jai Chauhan
Yes sir. So my question is regarding your marquee project Monte South. As of last update, tower B was approximately 65% complete and Tower C was at 16%. Right. So could you just provide current completion status of both towers? And additionally considering its premium nature, has there been any revisions on the estimated project costs and what is the sales velocity that you are currently witnessing for the unsold inventory?
Chetan Shah
So Monte south is progressing very well. Tower B is almost at now a 62nd floor. So like from RCC angle it is almost like 90% complete. And we are about to. We have already applied for part occupancy for the tower b up to 35 floors. So tower B is progressing very well as per the plan. Tower C is also progressing very well. It has now reached on 12th floor level and it is progressing very fast. Almost slab to slab cycle we have been achieving is every floor to floor is around 10 to 12 days. So that is also progressing very well.
Jai Chauhan
Any revisions to the estimated project costs or. And also about the sales velocity that you are currently witnessing.
Chetan Shah
There is no change in the estimated cost and the cost remains same on the velocity part. Like particularly during monsoon period. Typically the site visits normally less. But otherwise we’ve been reporting every month around five to six booking. That is a good velocity for the high value project.
Jai Chauhan
Got it. So got it. That is from my side, sir. Thank you.
operator
Thank you. The next question is from the line of Kusha from B and K securities.
Kush Shah
Yeah. Hi sir. Thanks for the opportunity. Am I audible?
Unidentified Speaker
Yes.
Chetan Shah
Yeah.
Kush Shah
So I just had a couple of questions regarding what would be the launch pipeline if going ahead for at least the next year or two. Yeah.
Chetan Shah
So the Marathon. See basically you may be knowing that Mumbai market was facing a huge challenge on the environmental clearances. And fortunately as on last week the Supreme Court has given a good judgment whereby the environmental clearances in Mumbai will start very soon. Looking at that in mind, we have Monte south commercial which we would like to launch in next two quarters. That is approximately 8 lakh square feet, carpets and GDP of around 3500 crores. Recently we’ve been looking at commercial supply in the South Bombay area particularly and even bkc. The vacancy rates have really gone down and there is a good demand for commercial office as well as retail.
So this building has been designed to look at ground and one as a retail and upper floor as offices. And so you know that is one launch which we are looking at in next two quarter. Secondly at next zone we are looking at phase three being launched approximately 4 lakh square feet and GDV of 500 crore. So in a continuity there is a good sales in Marathon. Next the airport coming up the ceiling is also connecting to South Mumbai in almost 4045 minutes. So there is a good demand in Marathon next zone conveyal project. So we are going to capitalize on that demand.
And thirdly we are looking at our micro market Neo Homes that is Bandu. We will be launching two more projects accounting for approximately 3 lakh square feet and GDB of approximately 500 crore. So in next 2 to 3 quarters Marathon is looking at almost 15 lakh square feet of launch and 4,500 crore of GDP. In addition to that as chairman already mentioned we have earmarked approximately 300 crore for new land acquisition. New project. Our model will be a satellite model JD JV and targeting to Central Mumbai and South Mumbai cluster redevelopment project. So we already identifying those projects and appropriate time we will announce those tie ups.
Kush Shah
Mr. Sir, thanks for the detailed clarification. My next question would be what will be the launch? If you could give some more insights on the launch of the land at Panvel.
Unidentified Speaker
So. Sorry, can you repeat the question please?
Kush Shah
Yeah. Any development on that one way land?
Unidentified Speaker
So the phase three will be launching in the next two quarters. Like Myrbhai mentioned it’s a 500 crore GDB and it’s around 3.3lakh square feet. That being said there is additional land coming in through the merger. That the merger will take around 12 to 15 months. And post that we’ll be launching additional project in Panvel.
Kush Shah
Understood sir. And the land which would be coming through the merger. Any anything on that?
Unidentified Speaker
Yeah, that’s the land. So all in all we have around 418 acres that we are getting in through the merger. Where 130 acres is in Bandu, 83 acres is in Dombelly and 205 acres in Panvel. So these are some of the land assets that the group company had which will come in through the merger. And all in all, you know 4.2 crore square feet is what will be the area, the carpet area that can come through with this land. So this is subject to the approval from the authority. But that being said, you know we are working hard on getting that done in 12 to 15 months.
Kush Shah
So that sounds really massive. Thanks for the opportunity. And just add one last question. What would be the potential FSI expectation going forward. In the merging the company that is getting merged?
Chetan Shah
Yes, yes. So I mentioned around 4.2 crore square feet is a carpet area that will be coming in from the 4.14 and 18 acres of land.
Kush Shah
Understood sir. All right. All right. Thanks for the detailed clarification. I’ll fall back.
Chetan Shah
Absolutely.
operator
Thank you. Before we take the next question we would like to remind participants you may press star and one to ask a question. The next question is from the line of Nitesh Koel from Growth 360°. Please go ahead.
Unidentified Participant
Hello. Good morning sir. Congratulations for good set of numbers. I just want to know that you are quoting that next two to three quarters the GDV would be 4500 crores. And sir, what would be the completion date out of this GDV let’s say the revenue for let’s say 2930 or something like that.
Unidentified Speaker
So all projects are will be launched and typically these are large project and completing in at least three to five years period. However we you know tend to take part occupancies of towers and so you know the recognition can come in two and up to three years start coming in.
Unidentified Participant
Okay sir. Okay, thank you so much. Perfect.
operator
Thank you. The next question is from the line of Miz Desai from Desai Investments. Please go ahead.
Unidentified Participant
Thank you. My question was regarding the merger. So I just wanted to understand what assets will continue to be held by promoter entity and are there any assets you know which are still pending to transfer to the listed company?
Unidentified Speaker
Yeah, so currently the company the Holdco is called Marathon Realty. Marathon Realty has an asset which is you know FutureX which is also coming in the merger along with 418 acres and there are a few live projects in Lor Parel that is also coming in through the merger. So the merger pretty much, you know it is getting in almost all the land bank that is part of the company and typically all these land banks are vetted legally and hence it is getting brought in. So yes, we are bringing pretty much. Everything within the merger.
Unidentified Participant
Okay, so we can definitely assume that post merger the entire Marathon Group operations will effectively be housed under this listed entity.
Chetan Shah
No, there are, there are other assets which are outside which are litigated which we have not brought in. So there would be assets outside the LISCO belonging to the Holdco. But all the development that will happen in future is going to be in the listed company.
Unidentified Participant
So I had one more follow one more question on the balance sheet transfer. So so post the proceedings of qip. So just wanted to understand you know the capital allocation and the impact of this on our credit ratings or you know will reduce the debt, the finance cost will reduce. So I just wanted to understand your thought process regarding this.
Chetan Shah
Yeah, so there is definitely a strengthening of balance sheet. As I mentioned in my speech, you know debt to equity ratio which is ratio of two different, you know denominator and numerator. Denominator has grown by 900 crore of capital infusion and the numerator, the 340 crore debt has already gone away. So currently we are sitting on a sizable bank balance. So instead of debt it is a sort of a negative debt or you know cash in the bank kind of situation. With this we have already approached all our credit rating, existing credit rating agencies and new agencies to re rate the company and that process is on.
Unidentified Participant
Okay, okay. And so lastly I just wanted to. On a macro front, I just wanted to ask you one question. Is that now as we see particularly Mumbai, so the suburbs are also, you know, have started getting good realizations in terms of the area. So and the projects into luxury. So luxury projects are also in demand. So is there any plan that you would, you know, like to launch in the suburb part of the Mumbai?
Chetan Shah
So we have always had a policy of distributing all our projects across three segments. One is like you mentioned, luxury or south Mumbai projects where we already have Monte south going on. And we are actively seeking new projects in that area because our marathon FutureX, the commercial tower has been completed. So there is in a way a vacuum from the city side that is South Mumbai. Then we already have project in suburbs which is the Bandup and Mulund area. So in Bandu we have like Mayur mentioned, we are going to be launching three projects worth about 3 lakh square feet.
That is a suburban project. And the third segment is, you know, periphery. That is Mumbai metropolitan region outside the city and suburbs, the peripheral area of Panvel. And there again we are going to be launching phase three of nexo. So this is how we have been managing. You know, at times one market goes very strong. The other market is not giving so much of sales. But overall our numbers keep on ticking.
Unidentified Participant
Sure. So lastly on the realization front, so you think that the current realizations are will be sustainable. How is the demand scenario which we are looking on the ground level?
Chetan Shah
The demand scenario is good. Like I mentioned again in my speech, the three micro markets that we are active in, all three micro markets, we are at top three ranks in terms of sales and supply. So that is how it is. Yes, markets do go through ups and downs. But currently the way the demand is being seen is excellent, healthy demand in all these three micro markets.
Unidentified Speaker
And that being said, Marathon always acquires project at a price which is actually lower than the market. Hence we have a higher margin. Hence we can survive in any kind of conditions.
Unidentified Participant
Got it? Thank you for answering my questions. All the best now.
operator
Thank you. Before we take the next question, a reminder to participants. If you wish to ask a question, you may press star and one on your touchstone. 4. The next question is from the line of Farshwa Veer from Gorilla pms. Please go.
Parshwa Veer
Hi, am I audible? Yes, you are. Okay, just a small quick summary. I think we have some 420 acres right as on date, including the amalgamated entities. Yeah, yeah. Once when it gets gets Merged with the Lisbo, the listed company will have that. That would be approximate. What would be the valuation for that acre? 420 acres. Approximate like 4, 5, 6 crores. Any idea?
Chetan Shah
So the net value of the whole. Incoming asset is around 3100 crores. The net value of that. So in that again 418 specifically is coming in and around 2.33 lakh square feet. Carpet in Lor Parel in a project called FutureX is coming in. Another 54,000 square feet in a project called Marathon Chambers right beside FutureX in Lower Parel will be coming in and two live projects in Lower Parel. So these are the assets that are coming in, projects that are coming in and everything is brought in that net discounted value of around 3100 crores.
Parshwa Veer
From the 3100 crores how much is realizable in the coming three years?
Unidentified Speaker
So I mean we are actually going through the merger process and post the merger process which is at 12 to 15 months, we’re going to launch a few projects there. That being said, we have a live project which is OC ready around 2.33 lakh square feet in FutureX which we are selling simultaneously. So that value itself at the current rate of say 45,000 will be more than 1000 crores. So that is a ready asset that is coming in and that assuming the merger goes through will be realized as and when it’s sold once post the merger.
Chetan Shah
And as you would have seen in our past presentation, also there are upcoming projects which are already ongoing for, you know, next two, three years. They will give substantial turnover.
Parshwa Veer
Yeah. And I heard before you were saying some 4 crores square feet is the sellable this thing which is available with us post the merger is done. So how would you term that in the realizable amount in rupees? 4 crore square feet into how many rupees? If you can just give me an.
Chetan Shah
Idea that is really difficult to say because very future. Yeah, the company has the bandwidth and this is not something that company needs to do by itself. We will be entering into some sort of a joint venture, joint development or DM model for some of these land. So monetizing the land would be quicker, would be the main focus post the merger of these assets.
Parshwa Veer
So I mean if I want to just bring a ballpark figure for this 4 crore square feet as a realizable value over a period of three to five years, that can be sellable. So what would that number come to?
Chetan Shah
This is future looking statement that we will Be able to share all these numbers post the merger has happened.
Parshwa Veer
All right, sir. Thank you.
operator
Thank you. A reminder to participants, if you wish to ask a question you may press Star and one on your touchtone phone. The next question is from the line of Sachin and individual investor. Please go ahead.
Unidentified Participant
Thank you. Thank you for giving me an opportunity to ask a question. I would like to ask that what is our unsold inventory? I mean the ready inventory which is unsold. And since you’re saying that the project has completed on Future X, how much time we will take to you know, sell off this project and how this will reflect in the pack.
Unidentified Speaker
So unsold, ready OC ready inventory. We have around 1.1 lakh square feet in Monte south in Tower A, around 1 lakh square feet in next zone which is in Panvel and around 42,000 square feet in the Lisco for FutureX. And all in all the value of that would be around, you know, around 600 crores. 6 to 700 crores.
Unidentified Participant
And how this will reflect in the fact.
Unidentified Speaker
So you know every, I mean the whole timeline of the sales of this project, you know there will be one year. Yeah, one and a half. One. One year will be a good time where we’ll be selling it. And off of that around 30% will be the EBITDA and 20% will be the PAT.
Unidentified Participant
So all in all we can count it as 1300 crores, right?
Unidentified Speaker
So 7 on the PAT level. So 700 crores. But the marathon share is around going to be around 450 crores. And off of that 20% which would be around 90 or 90 odd crores.
Unidentified Participant
Okay, so find 450 crores, right?
Unidentified Speaker
Yeah.
Unidentified Participant
Okay. And this can be realized within a year.
Chetan Shah
Yes.
Unidentified Participant
Okay, thank you. Thank you sir.
Chetan Shah
Yes.
operator
Thank you. Participants, if you wish to ask a question, please press Star and one on your touchstone phone. The next question is from the line of Prashant, an individual investor. Please go ahead.
Unidentified Participant
Hi, good afternoon. Am I audible?
Unidentified Speaker
Yes, you are.
Chetan Shah
Yeah.
Unidentified Participant
My question is you mentioned going Asset Light and DM models earlier and you also mentioned that you could look at it at your existing land parcels. Would we also be looking at acquiring projects on a DM model as well considering. Yeah, yeah, yeah. Go ahead please.
Chetan Shah
Yeah, yeah, we are open to the model. You know, as you are aware, Marathon has capabilities of real estate from A to Z. 880 people are working for the group. And we have architectural capability, designing capability, marketing and sales capability, execution, that is construction. The Monte south project that you see, 65 storey towers are being constructed or built in house. So there is an EPS EPC capability also in house. So we have all the capabilities and we are okay to have DM model assignment in South Mumbai and other areas.
Unidentified Participant
And what typically would you look at in a DM model? Would you look at a minimum top line or minimum sort of share to take?
Chetan Shah
We normally would want. If it is in city of Mumbai, we would look at the land area of at least one acre and more. So that would be the cutoff size. Yeah. Then depending on the road width and other things, the FSI could be a little bit less or more.
Unidentified Participant
Of course. Of course. Thank you. That’s it for me.
operator
Thank you. Before we take the next question, we would like to remind participants you may press star and one to ask a question. The next question is from the line of Jignesh and individual investor. Please go ahead.
Unidentified Participant
Yeah, thanks for the opportunity. So wanted to understand how much would be the cluster redevelopment as a size of your projects or portfolio in next two to three years. Because this I think is a new kind of initiative which Marathon was not doing in the past.
Chetan Shah
Yeah. So we, we were actually doing it, but we were doing it for the slum rehabilitation in Bando. Now we are actively seeking projects in South Mumbai in cluster redevelopment. And that’s why I mentioned that it should be at least 1 acre and more and the size should be 500 crore of GDV at least. So from that perspective we are looking at a cluster. Now there is a going to be some cluster projects also announced in Bandu out of the slum project. So that will come in next two, three quarters.
Unidentified Participant
Okay. So going ahead, out of your total projects, maybe 10 to 20% would be from this kind of initiative.
Chetan Shah
Yeah, yeah, we are planning that. Let’s hope what we get. But if we are also getting open land, we, we can. We are not insisting on cluster. Of course. Cluster is the flavor of the time today. So we would prefer cluster. But we are open to other kind of development also.
Unidentified Participant
Okay. Right. Thank you.
operator
Thank you. The next question is from the line of Pashwa v from gorilla PMS3 square.
Parshwa Veer
Hi again. Are you planning to work outside Bombay also?
Chetan Shah
No. Our focus has been mmr. We are exploring all the, you know, proposals that are coming from Bangalore and Pune. But our focus is always, has always been mmr. So right now we are concentrating on mmr.
Parshwa Veer
Okay, thank you.
operator
Thank you. The next question is from the line of Viril Shaft and individual investor. Please go ahead.
Unidentified Participant
Good afternoon. My question is related to the other income section which has been shown in the financials, it has grown quite high as compared to the earlier quarters. Please can you elaborate on the same?
Chetan Shah
Yeah, sure. See, the other income of about 50 crore consists of one major item which is capital gain on sale of investment of 40 crore. These are the premises that we had built in Marathon FutureX and kept for investment. Meaning we had rented them out. And those are the premises that we sold during this quarter, realizing about 40 crore from that. So that’s why there is a spike in other income. Although this 40 crore is other income, it is actually something that we had constructed three years ago.
Unidentified Participant
Okay. So in a way it is a good income for the company.
Unidentified Speaker
Yeah.
Unidentified Participant
Liquidating.
Chetan Shah
Yeah. If you see, you know, five years ago we were selling in future X about 20, 25,000 rupees a square feet. And that is the time when we rented some of the premises. And currently now when we are selling it is 45,50,000 rupees per square feet. So there are two things that has happened. One, we have been able to leverage our ability to hold on to these assets by leasing them and secondly, selling them at appropriate time, which is when the market is ripe.
Unidentified Participant
Okay, and just one more question. What would be the equity post merger.
Chetan Shah
Would it be fully diluted 6.75 crore. Post merger? Post merger it will be about 11.5. See currently, I mean before QIP it was 5.13. Then after UIP it is 6.77, 6075 roughly. And post merger it would be about 11.8 or 11.9 crore.
Unidentified Participant
Okay. Okay, great. Thank you so much.
Chetan Shah
You’re welcome.
operator
Thank you. Participants, if you wish to ask a question, please press star and one to ask a question. The next question is from the line of Zignesh, an individual investor. Please go ahead.
Unidentified Participant
Yeah, so sir, post merger your equity will be 11.9 crore. So.
Chetan Shah
Companies equity. Total equity.
Unidentified Participant
Yeah, yeah, total equity. So currently your after QIP your holdings 55%. So post merger what would be the promoter holding?
Chetan Shah
Close to 75%. It will be 74.3% or so.
Unidentified Participant
Okay. Okay. Thank you.
operator
Thank you. Ladies and gentlemen. That was the last question for today. I now hand the conference to management for closing comments.
Chetan Shah
Thank you very much for participating. Just one clarification. When I mentioned total equity, I was mentioning number of shares. Each share is about 5 rupees paid up capital. So when I’m saying 11.8, it is 11.8 crore shares into 5 rupees. That would be the equity capital. Thank you very much for all participating, and let’s hope to see you soon and with much better results.
operator
Thank you. On behalf of Marathon, Next Gen Reality Limited concludes this conference. Thank you for joining us. And you may now disconnect your lines.