Pennar Industries Limited (PENIND) Q3 FY23 Earnings Concall Transcript

Pennar Industries Limited (NSE:PENIND) Q3 FY23 Earnings Concall dated Feb. 09, 2023.

Corporate Participants:

Vikram Suryavanshi — Vice President

Aditya Rao — Vice Chairman and Managing Director

Shrikant Bhakkad — Vice President – Finance

Analysts:

Anika Mikkel — Invest Research — Analyst

Deepak Poddar — Sapphire Capital — Analyst

Dee — Astute Investments — Analyst

Vikram — New Asia Investment Advisors — Analyst

Dileep Sahu — an Individual Investor — Analyst

Mr. Hari Kumar — an Individual Investor — Analyst

Radish Gandhi — Discovery Capital — Analyst

Ankun Agarwal — Aussie Wealth Solution Private Limited — Analyst

Patanjali Cha — Individual Investor — Analyst

Unidentified Participant — — Analyst

Mr. Gaurav Agarwal — an Individual Investor — Analyst

Goro Sutiva — Banaras — Analyst

Casey Pawan — an Individual Investor — Analyst

Presentation:

Operator

Ladies and gentlemen, Good day and welcome to Penind Industries Q3 FY 23 Earnings Conference Call hosted by Phillip Capital India Private Limited. This conference call may contain forward looking statements about the company which are based on beliefs, opinions and expectations of the company as on the date of this call. The statements are not the guarantees of future performance and involve risk and uncertainties that are difficult to predict. [Operator Instructions] [Operator Instructions]

I now hand the conference over to Mr. Vikram from Philips Capital India Private Limited. Thank you, and over to you, Sir.

Vikram Suryavanshi — Vice President

Thank you, Seema. Good morning and a very warm welcome to everyone. Thank you for being on the call of Penind Industries Limited. We are happy to have with us the management of Penind industries for question-and-answer session with the investment community. The management is represented by Mr. Aditya Vice Chairman and Managing Director. Mr. Sheehan, workers. Vice President finance. Mr. De Krishna Prasad. The financial officer knows good corporate affairs, and Mr. Came Sunil. Before we start with the question-and-answer session will opening comments from the management.

Now I hand over call to Mr. Aditya for opening comments. Over to you, Sir.

Aditya Rao — Vice Chairman and Managing Director

Thank you. Moderators, thank you again, for warm welcome to all our stakeholders. Thank you for your presence today on finance industries quarter three the FY 2023 financial results. The conference call will follow our usual structure. First, I will start with my commentary on our financial results, stability, liquidity and our growth. Following this are CFOs Mr. Sheehan, Volker and Mr. Krishna missa will present their overview. Now this will open up the call for questions. So, an overview for the third quarter we recorded net sales of INR692 crores, a PBT was 27.54 crores.

This represents growth of 97% or the comparable quarter the previous year. We saw some moderation revenue on a sequential quarter basis Q2 to clarity. This was due to low margin revenue being removed replaced by higher margin revenue streams. We are confident we’ll achieve our financial targets and scale our PBT further in the fourth quarter. We’re close we are strongly with our best ever operational PBT our Q3 PBT of 27.5 for gross margin of 3.98%.

We expect further improvements in our PBT as we scale our higher margin views and the expense of our lower margin business units. We generate a cash part of 37.41 crores which was at a margin of 5.4%. And we’ll continue to work on scaling our margins and activity ranking. That covers our profitability, liquidity and capital efficiency, so we cover our working capital days and our rows. We’re currently at 77 days working capital and expect to reach 75 days by the end of this financial year. Our annualized gross for Q2, Q3, I’m sorry, was 19%.

And we expect to reach 20% was at the end of this financial year one and on an annualized quarter basis. It will not be 20% for the year, but 20% the quarter annualized quarter, fourth quarter. That completes our liquidity and capital efficiency discussion on our growth drivers. For the next few quarters we expect a body in white business, our feature building business both in India and the US and our engineering services business to grow. We are also working on an expansion of our module project which will be commissioned in the next financial year and will substantially grow our revenue activity. I’m thankful to all of you for your time and efficiently.

We will continue to focus on profitability growth, liquidity and capital efficiency. I would like to hand over the call to our CFOs for that when it comes to shareholders, third quarter financial results for the quarter and the nine months ended FY 23. The key Metro service would like to just inform you in terms of revenue we have increased from 532.97 crores to 692.22 crores but growth of about 30% EBITDA has increased from 46.94 to 66 crores about 40% increase in terms of percentage.

It has increased from 9.53% to 8.81%. The PBT has increased from 14.13% to 27.54 crores and in terms of fat it has increased from 10.71 to 21.11. The increase predominantly in terms of revenue if you compare the Q3 versus the Q3 that’s predominantly on account of the geographical expansion, which we’ve done in us. So, a chunk of the revenue is coming from that.

And also, in India the increase in the b&w business and the expansion in the higher profit-making businesses in terms of the [Indecipherable], we are happy to inform to the shareholders that we have crossed last year the annual part of what you do gross, what we have and currently we have we have for the nine months ended we are at 52 crores which itself is up by more than 20% If we compare year with the nine months basis also.

With this, will like to handle the call to the moderator.

Questions and Answers:

Operator

Thank you very much. We will now begin with the question-and-answer session. [Operator Instructions] Take our first question from the line of Anika Mikkel from Invest Research, please go ahead.

Anika Mikkel — Invest Research — Analyst

Hello, what is the [Indecipherable]?

Aditya Rao — Vice Chairman and Managing Director

Not really. Could you? Maybe speak up?

Anika Mikkel — Invest Research — Analyst

Hello. Okay, so my first question, can you please spend few minutes on a competitive landscape for the industry you are operating in along with your competitive advantage, which shall enable you to take the maximum orders from the upcoming opportunities, which is coming from the recent budget announced by FM.

Aditya Rao — Vice Chairman and Managing Director

So the competitive landscape in many of our businesses is that they’re dominated by mature large players. Very few of our businesses consist of competition, competitive intensity where it’s very fragmented. So, it would be difficult for me to answer the question across the entirety of our revenue streams, because we have as you may be aware about nine business units within the company, but I can say for the larger revenue streams, outcome competition or all m&a In India, we compete with Kobe, we compete with Thermax we compete with you investments and in the US, we compete with Cornerstone which is a multibillion dollar firm, and we compete with whirlwind and others.

Now, it’s a complex relationship, a lot of our competitors are also our customers, because we supply to max you have good relationships with them as well. So, typically, we tend to get into industries which are mature, which are which can scale and which are have presence of large, well structured corporate, so the competitive intensity doesn’t rise to a level where you have to compromise on margins revenue. I will try to get a better answer to you later, but in the interest of time, I think that broadly answer your question.

Anika Mikkel — Invest Research — Analyst

Okay. And so, the second thing is for FY 22 and as your annual report your capital employed is 915. Yeah, that is the basically the total of liquidity and your non-current liabilities. And earlier you have guided for 20% ROC, right? So good that to be true, you must generate as it of 181, 85 kind of material kind of EBIT and EBITDA of around two to TCRs right. And for nine months appetite is one to 50. So, do you think we will achieve 100 cars at the time Quattroporte to that guidance to be [Indecipherable].

Aditya Rao — Vice Chairman and Managing Director

So, if you look at a capital employed right now, that number is closer 900 crore. So, if you take our EBIT for the year, I think right now we would end up at I mean, the 1920 person was on a quarter basis for the year we may be slightly below that because of Q1 and Q2, we were not at 19 or 20%. But we will not be giving an EBIT projection for the financial year but you can assume improvements on Q3. Quarter confident that even if we don’t touch 9020 will be close to it for the whole year.

Over the quarter, as I mentioned in my initial comments, we will be about you know, 20% divided by four. So we will be about 5% return on capital employed will actually continue for nine months and with FY 23, we’ve already already reached EBITDA of 183.86 crores and then if the procedure is close to around 47 crores, so, more or less we should be that is our view, we will not be a substantial difference what we will have

Anika Mikkel — Invest Research — Analyst

Yes, can we achieve the level of that 17 18% kind of not 20%

Shrikant Bhakkad — Vice President – Finance

Or 17 18% but EBITDA level will have close to around nine positive at 9.5 interesting about Rose 19% We will reach to 20% Our target is to reach 20%.

Anika Mikkel — Invest Research — Analyst

But for three to 20% you have too much to deal with 1200 people in Puerto Rico so that’s why I’m really surprising number

Shrikant Bhakkad — Vice President – Finance

900 crores your rate 180 crores in EBIT right Yeah, so our EBIT right now is not 90 crores. I’m I’m confused why you would say we need to do 100 crores

Anika Mikkel — Invest Research — Analyst

No, actually, I was talking in terms of EBITDA. EBITDA.

Shrikant Bhakkad — Vice President – Finance

EBITDA is already 180.

Aditya Rao — Vice Chairman and Managing Director

Yeah, I think you may be looking at the wrong number. EBITDA for the year for nine months is not what are you starting quarter number or for the nine months and nine months ended number is already 183 That’s what we’re trying to say it’s already 183 So we.

Anika Mikkel — Invest Research — Analyst

I think there is some confusion. See your EBITDA is nine, your capital employed is 925. Right? And to do an ROC of 20% You must do the EBITDA 184 EBITDA 184, right.

Aditya Rao — Vice Chairman and Managing Director

Yes.

Anika Mikkel — Invest Research — Analyst

And what is your nine month EBIT?

Shrikant Bhakkad — Vice President – Finance

100 and EBITDA. You you add it if you remove it, decrease the precision 44 So what did he do it? 141 40 is that EBIT?

Anika Mikkel — Invest Research — Analyst

That’s what I’m asking. Will you do that kind of means remaining Epicor going.

Shrikant Bhakkad — Vice President – Finance

[Indecipherable] crores where’s your 100 Crore number coming from?

Anika Mikkel — Invest Research — Analyst

That was the EBITDA thing. EBITDA. If you add back the depreciation to Azure,

Shrikant Bhakkad — Vice President – Finance

I’m gonna show you with a 20% gross for the year. Okay, let’s go.

Anika Mikkel — Invest Research — Analyst

That’s that’s the way I was.

Aditya Rao — Vice Chairman and Managing Director

Okay, thanks. Any further questions?

Anika Mikkel — Invest Research — Analyst

Yes. Your revenue from outside India arose from [Indecipherable]. So my question is, what is this number in first nine months, you’re outside India business in the terms of opening.

Shrikant Bhakkad — Vice President – Finance

Outside India, in India versus outside India is this the difference between the standalone and consolidated? So $160 is the difference for the quarter on quarter if you take that’s that’s predominantly 436 versus 692. So 536 crores, is the India Business and 692 including the US business. So close to 160 is the entire difference that comes from the-

Anika Mikkel — Invest Research — Analyst

Second thing is what is driving this protein powder attainable? This is because I’m difficult or confusing the macro headwinds going on in Europe and USA, and we’re getting how we are able to deliver these fantastic numbers. So kindly give some color on them

Aditya Rao — Vice Chairman and Managing Director

At this point or us revenue, I mean, our international revenue seems to be quite robust. The reason why we are saying that is our order books are growing there is as you I think you mentioned it is talk of recession, but we are not seeing any sign of that in the markets that we are present in maybe in the tech sector, but at least outside the tech sector, we have not seen at least for our addressable markets, we’ve not seen any decrease in better order books have gone up in January. And I’m not hearing any talk of a decline in our revenue from our international businesses or declining margins.

Anika Mikkel — Invest Research — Analyst

On the capacity front, what is the total capacity and capacity utilization across the different verticals? And are we considering any further capacity expansion or capex plan on going forward?

Aditya Rao — Vice Chairman and Managing Director

So, capacity utilization again, we are a little diversified. So we I can give you an overall number which may not make much I would not I would ask you not to not to scale that number across the company. It’s around 60 65%. But in several of our businesses, we are at capacity and you’re adding capacity standard include TV it includes in India, it will include TV in the US it will include a module plant and, in some way, or under capacity specifically in our CPU and under older revenue streams. So yeah.

Anika Mikkel — Invest Research — Analyst

So, any expansion plans, expansion plans in any of the verticals we’re considering?

Shrikant Bhakkad — Vice President – Finance

Yeah, we will be scaling our body in wide capacity over the next quarter or finish building capacity in India and in the US as well. And we will also be increasing our module capacity, those from our engineering services business, yes, shall we are building larger delivery team in India as well. So we will need to what can be the capex, the amount you will.

Operator

Thank you. We take the next question from the line of Deepak Poddar from Sapphire Capital. Please go ahead with your question.

Deepak Poddar — Sapphire Capital — Analyst

Hello. Hello. Thank you very much for the opportunity. So first up, I just wanted to understand on the demand scenario, the demand environment, both in India as well as the International Division, I mean, how how do you see the traction in that demand? Or any kind of slowdown that you’re seeing because of the global scenario? So some flavor or because of the inflation scenario, some some flavor, that would be very helpful.

Aditya Rao — Vice Chairman and Managing Director

Thank you. So we’re primarily present in the automotive sector, the building and infrastructure sector, railways and aerospace and in the energy sectors taken together, that’s a big chunk of the gross fixed capital formation in India. And quite frankly, in any country. As I mentioned, on my call, we don’t see any problems in the US we don’t see any problems in Europe, I think, why there has been talk of recessions and soft landings. From what I am seeing from an audible point of view, I’m not seeing a reduction in demand as of right now.

We’ll be in our view, we will be able to sustain our revenue and profitability for the near term, we don’t see any problem there. India also with the exception of some sectors, such as railways, for example, a lot of we are hearing a lot there is a real big budget, but I am not seeing much traction on the ground as far as orders to other concerned. So in that we are seeing some moderation and railways.

It doesn’t comprise from a profitability point of view; it comprises less than 5%. So, it’s not not a big deal to sort of so to say, but I don’t have clarity on our business units, revenue and profitability in the near term. Hopefully, that changes our order books are quite strong. But that’s not translating into revenue in railways. In India, the pensioner building sector is now at its record peak in terms of order book. In fact, we’re adding capacity as quickly as we can.

And as you may be aware, finished buildings captures and basically any process industry, anybody into the warehousing, logistics, any manufacturing industry, the end users, there’s so many non residential construction users bringing in buildings, so we’re not seeing the reduction. They’re a large order books, here in India and in the US. So from a demand side, I’m not seeing a reduction in that business unit.

Solar also is doing reasonably well for us, profitability is increasing and improving. And we believe that not as busy not only as I think, also look, they are expanding their capacity. In fact, we would be a medium sized player in this, we would not be one of the larger players in this field. So but not across our major verticals. Whether that be automotive or infrastructure or building construction. Railways, we’re not seeing I’m not seeing a reduction. Was I audible? Deepak? Did you-

Operator

Mr. Deepak?

Deepak Poddar — Sapphire Capital — Analyst

Hello?

Operator

Yes, sir?

Deepak Poddar — Sapphire Capital — Analyst

No, yeah, I understood. The second question is in terms of profitability. You mentioned that in the second half profit that was saved in the first half. So we are holding on to it?

Aditya Rao — Vice Chairman and Managing Director

Deepak could you repeat that to the second part, the second half what sorry, I could make out what you said.

Deepak Poddar — Sapphire Capital — Analyst

Our second half that would be double of first half. So are we holding on to that?

Aditya Rao — Vice Chairman and Managing Director

I’m not sure I said exactly that. But let’s let me do the math. Give me a few seconds of that in the first half.

Deepak Poddar — Sapphire Capital — Analyst

Pat was which is what we reported in the first half. And I think we were of the view that second halfr to be two weeks of what we are reporting the first year

Aditya Rao — Vice Chairman and Managing Director

For the nine months it is 51.58 in terms of PAT.

Deepak Poddar — Sapphire Capital — Analyst

Okay.

Aditya Rao — Vice Chairman and Managing Director

And the quarter that we reported earlier was 16.

Deepak Poddar — Sapphire Capital — Analyst

What was- [Indecipherable] first and Second, Q1 and Q2?

Aditya Rao — Vice Chairman and Managing Director

So yeah, I think we’d be close to that, if not entirely that. But really not like to give guidance on this. What I would prefer to say is that we will- Q4 will be stronger than Q3. That, we have a picture of- [Indecipherable] – prices and profitable, it’s just under all of those numbers. You know, I don’t think we should.

Deepak Poddar — Sapphire Capital — Analyst

Fair enough. I understand. And sir, anything on FY 24? Any flavors that you can provide- I mean, in terms of even the top line thing, and how do we see the margin now we are coming to here?

Aditya Rao — Vice Chairman and Managing Director

I will not give guidance, but I can say FY 24 will be better than FY 23. That much I can say and we are harder at work to improve our profitability and efficiency. And we will report to you quarter on quarter exactly what our goals are. As of right now, I would like to only comment that Q4-FY 24 will be better in FY 23.

Deepak Poddar — Sapphire Capital — Analyst

Fair enough. I got it. Yep, that’s it from my side, sir. Very helpful, and all the very best.

Operator

Thank you. So we take the next question from the line of Mr. Dee [Phonetic] from Astute Investments. Please go ahead.

Dee — Astute Investments — Analyst

Good morning, sir. Am I audible?

Aditya Rao — Vice Chairman and Managing Director

Yeah, please go ahead.

Dee — Astute Investments — Analyst

Sure. So most of my questions are around your pre-engineered building division. So before I move on to fundamental question, I just had one bookkeeping question. So I just wanted to check with you that. So in your segmental data, you report two divisions, one is Diversified Engineering, and second is Custom Design Building. So my understanding is this custom designed building is entirely pre-engineered business. Am I correct?

Aditya Rao — Vice Chairman and Managing Director

Yes, yeah, it is. It may also include engineering a little bit.

Deepak Poddar — Sapphire Capital — Analyst

Very, very small part of it?

Aditya Rao — Vice Chairman and Managing Director

Okay. Yeah. Just briefly, broadly speaking, yes. You’re 90-95% right. 90% of that. Not entirely 100%. Only 90% of that.

Dee — Astute Investments — Analyst

Okay, so now I move on to the fundamental question. So my first question is, I mean, I was, if I look at your revenue growth, the margins which you have been doing in the stimulant buildings, much better as compared to the nine months of FY 22. So if you can, you know, give a broad understanding, and this has been the trend across the industry, all the players are reporting very good numbers. So what is changing in the industry? And what is leading to you this kind of growth in revenues and improvement in margins? If you can elaborate on that?

Aditya Rao — Vice Chairman and Managing Director

You’re speaking specifically to the engineer building business? Yes. Yeah. So I think I think there’s a I mean, I think the gross fixed capital formation story is increasing. I think the Indian government, if you’ve seen the budget, Government capex is increasing, which means we don’t deal with the government directly, but it filters down to private sector capex, ultimately. So whether it’s warehousing, whether it’s manufacturing plants, with airports, there’s a tremendous amount of new orders that are coming on, a new capacity that is coming on.

I can’t name names but the order the quarters are characterized by I would say three or four very large orders. Currently in our order book 40 50% is only two or three players. That’s both a risk and also good thing in terms of it gives you tremendous ability to cater nature revenue goes to those fears. And on the other side, of course, the risk of having, if not majority, a big chunk of your audible coming from only a few players, but in my opinion all venture building companies are doing well right now. Because a lot of people in the process industries, warehousing and manufacturing and expanding capacity. I think that’s the reason why everyone’s order books are right [Indecipherable].

Dee — Astute Investments — Analyst

Okay, so, um, so, you know, in the past, this industry has faced an issue of raw material price volatility. So, your FY 18, you are done almost 14% EBITDA, and then it has come down to almost 6% margins. So, how are you, you know, plan- trying to change this volatility in margins? And do you think in future, the margins will be much more unstable, this kind of volatility will continue because of the volatile raw material prices?

Aditya Rao — Vice Chairman and Managing Director

I think we are a pass through and we’ve learned the, the way to manage these risks now. So obviously, with our risk management every quarter, there’s four risks we cover. One of those risks is raw material price escalations, which can be dangerous for our markets, but effectively the combination of you know as booking raw material in advance, quarterly rate contracts allow us some time to see a cost increase and then having to pass that on to our customers.

And ultimately price escalation contracts, for arbitrary price escalation terms in our contracts will make sure that we don’t have a worst case scenario- we will have to go back to our customers and renegotiate if that evaporates. But that’s extremely rare. So the combination is four or five things I don’t- I don’t believe we will have an issue as far as raw material price variability, potentially impacting margin suspension. And that has been the case for the last eight quarters I think, in my opinion. I think we understood how to deal with very, very precipitous rises and falls obviously changes the equation a little bit, but I don’t think that’s what we’re expecting right now.

Dee — Astute Investments — Analyst

It was like two related questions to this again. So one, if you can share a number that how much of the you know, order book currently is the contracts which you have signed the recent ones, down on the what percentage of those have a contract for price pass ons to the customer, if you can share that number. And second, so based on your explanation, do you think that this 9% margin which you have done you want to nine months, do you think you will be at least be able to sustain this margin, if not improve? So these are the two related questions.

Aditya Rao — Vice Chairman and Managing Director

So what is 9%?

Dee — Astute Investments — Analyst

So, so based on this inventory, situation. 9% is your PBIT for the pre-engineered building divisions on nine-month basis.

Aditya Rao — Vice Chairman and Managing Director

Okay, Okay. Yeah. Because this is higher margin, I think we can safely say that that can persist. I don’t see an issue there. As your question on what percentage of our order book we have price escalation for? I don’t have that. It’s a good question. I don’t exactly have the answer right now. I’ll get back to you on this.

Dee — Astute Investments — Analyst

Okay. And sir, last question. So you look at the almost 800- [Indecipherable] now for your building. What kind of-

Aditya Rao — Vice Chairman and Managing Director

[Indecipherable]

Dee — Astute Investments — Analyst

Am I audible now?

Aditya Rao — Vice Chairman and Managing Director

Yeah, better. Go ahead please.

Dee — Astute Investments — Analyst

You have INR800 crores of order book for pre-engineered building division. So if you can share what kind of timelines are usually there for order book to get converted to revenue?

Aditya Rao — Vice Chairman and Managing Director

Typically, they can experience about six to eight months. I don’t I don’t think it’s much more than that. Now, again, because a lot of land some convert in three months itself, but the vast majority of it, I think, converts quickly. Was that the question sir?

Dee — Astute Investments — Analyst

Sure. That answers my question. Thank you.

Aditya Rao — Vice Chairman and Managing Director

Thank you.

Operator

Thank you. So we’ll take the next question from the line of Mr. Vikram [Phonetic] from New Asia Investment Advisors. Please go ahead.

Vikram — New Asia Investment Advisors — Analyst

Hello. [Indecipherable]

Aditya Rao — Vice Chairman and Managing Director

Sorry, could you repeat that question?

Vikram — New Asia Investment Advisors — Analyst

This current order book of solar, it’s about a run across and will continuously last quarter?

Aditya Rao — Vice Chairman and Managing Director

Revenue from solar last quarter would have been about- we don’t have an exact breaker for that because it’s been a huge part of a view but say around INR70-75 crores.

Vikram — New Asia Investment Advisors — Analyst

INR70-75. And what was margin on-?

Aditya Rao — Vice Chairman and Managing Director

Margin as we don’t report segmental PVC, but we have a base where less than a certain percentage operating profit, we don’t. Each business has a different number. So [Indecipherable] we will not be able to give you [Indecipherable].

Operator

Thank you. We take our next question from the line of Mr. Dileep Sahu [Phonetic], an Individual Investor. Please go ahead, sir.

Dileep Sahu — an Individual Investor — Analyst

Yeah, hi, Miss Charity. Congratulation, very good set of numbers all round. You know, you just start with solar business pending oral 800. Where does it fit? As you can see in building projects, or is it somewhere else?

Aditya Rao — Vice Chairman and Managing Director

It has a certain [Indecipherable], we don’t. As I said for [Indecipherable] we do provide a segment of break up solar. But solar [Indecipherable] the remaining main company that is part of that, but I will say telcos order book mark revenue.

Dileep Sahu — an Individual Investor — Analyst

Yeah, I know. So, I was just wondering you know, if you have pre-engineered building India US together these 1200 crores and you have a solar business of 800 crores and your run rate or booking in products is around 350, 400 crores they are regular businesses. So, as we speak starting 1st of January, we are talking about 2500 odd crores of pending orders for the quarter and some of them will not get built in this quarter but-

Aditya Rao — Vice Chairman and Managing Director

Yeah, so, your question is?

Dileep Sahu — an Individual Investor — Analyst

So, my question is am I getting the numbers correct, that solar business is 800 crores engineer– engineering business US and India is on 1200 crores plus a regular business in the components and products business which [Indecipherable] businesses.

Aditya Rao — Vice Chairman and Managing Director

So [Indecipherable] is about 40 to 45 million in terms of an order book [Indecipherable] last month.

Dileep Sahu — an Individual Investor — Analyst

240 crores. 240 growth in expense 750 crores in India pre-engineered.

Aditya Rao — Vice Chairman and Managing Director

Yeah. PED is about as we said about 800 crores, railways is about 156 crores and solar is about 800. So, yeah, so that matters approximately right. Yes.

Dileep Sahu — an Individual Investor — Analyst

So, so around 2000 crores. So, you know, this solar business that we picked up in September, we discussed that it will get built in six months from September, which is basically March and that is not happening, right? Because we are just hardly build anything 700 crores maybe out of 1100 crores?

Aditya Rao — Vice Chairman and Managing Director

No, we haven’t, we haven’t built that. Partly, the reason is because there are delays from our customers on execution on that. I will not name the customer. But there are large PSU and they have not, I think the land equations [Indecipherable].

Dileep Sahu — an Individual Investor — Analyst

To relieved you right come up with which 1100 will get built in six months that will get delayed to Q1 next year, right?

Aditya Rao — Vice Chairman and Managing Director

At this point, I can’t give you a lot of clarity on exactly when those specific orders will pass out. But I do have every confidence that those will pass out.

Dileep Sahu — an Individual Investor — Analyst

Good, sir. So that might even not partly because it’s a turnkey project. So you won’t even build partially or you won’t recognize the revenue at least. Is that correct?

Aditya Rao — Vice Chairman and Managing Director

I’m not saying we won’t. But at this point, I can’t commit to the exact value for it.

Dileep Sahu — an Individual Investor — Analyst

Understood. The second question, so this 1150 crores is most likely will be a carry forward for next financial year, partially at least, a major partially, majority partially.

Aditya Rao — Vice Chairman and Managing Director

Are you are you talking about building [Indecipherable] or?

Dileep Sahu — an Individual Investor — Analyst

The PSU energy company which we picked up that 11 50 crores.

Aditya Rao — Vice Chairman and Managing Director

Yes, yes. My expectation right now is that it’s going exponential and not really the same. And that’s Okay, because we never really factored in-

Dileep Sahu — an Individual Investor — Analyst

No, I’m just trying to get a clarification. I would assuming that Q4 will be 1000 Crore quarter for us, because [Indecipherable].

Aditya Rao — Vice Chairman and Managing Director

Yeah, I don’t believe that. As of this. Now, I don’t have the clarity to tell you whether we will execute in the fourth quarter or not. But I can tell you fourth quarter will be quite [Indecipherable].

Dileep Sahu — an Individual Investor — Analyst

No problem. The standalone and consulted revenue nine months is the difference isn’t 500 crores. I assume that is mostly US out of the 500 crores, 450 odd crores in the US.

Aditya Rao — Vice Chairman and Managing Director

Yeah, 90% of the consolidated numbers, which obviously standalone numbers, if you see comes from Europe, the foreign subsidiaries. We don’t have any big Indian subsidiaries [Indecipherable]. So, I can safely assume that around 400 crores will lead to new buildings and 100 crores will be all components like hydraulics and tubes and stuff like that.

Dileep Sahu — an Individual Investor — Analyst

Is that the entire [Indecipherable]?

Aditya Rao — Vice Chairman and Managing Director

[Indecipherable] revenue, no. That revenue gets recorded in domain entity, [Indecipherable] entity.

Dileep Sahu — an Individual Investor — Analyst

Yeah. My second question is regarding this-

Operator

I’m sorry to interrupt. May we request to join the question queue, sir. Actually have participants waiting for their turn.

Dileep Sahu — an Individual Investor — Analyst

Okay. Sure, sure. Okay.

Operator

We’ll take the next question from the line of Mr. Hari Kumar an individual investor. Please go ahead sir.

Mr. Hari Kumar — an Individual Investor — Analyst

Good morning sir. My specific question is regarding this water treatment business, regarding this one statement business, like is there no focus on the management side on this business because other companies are making huge turnouts in this water treatment?

Aditya Rao — Vice Chairman and Managing Director

Yeah. I will say that at this point we have an order book and water ATC. Specifically, our capabilities are in industrial water treatment, desalination, TP effluent treatment and recycling systems we are executing our order book out. Yeah, we are working– we are not looking at this business or the business unit we want to gro. and there are others, our competitors who are doing quite, yes.

Mr. Hari Kumar — an Individual Investor — Analyst

Okay, sir. Thank you, sir. And the second question is regarding this standalone like most of the properties here coming from a subsidiary company like why is this standalone profitability not improving, sir?

Aditya Rao — Vice Chairman and Managing Director

I think there are improvements in standalone profitability and consolidated profitability, and going forward that will continue to be the case.

Mr. Hari Kumar — an Individual Investor — Analyst

Okay, thank you, sir.

Aditya Rao — Vice Chairman and Managing Director

[Indecipherable] profitable also increased from 11 crores to 15 crores, if you see on our PBT basis from December 21 to December 22. And that roughly is approximately 40% there’s a growth in standalone as well.

Mr. Hari Kumar — an Individual Investor — Analyst

Yes, sir. But compared to that [Indecipherable] seems to be [Indecipherable].

Aditya Rao — Vice Chairman and Managing Director

That’s a good point. I think margin expansion in a standalone entity is something that’s important, and we are focusing on that. And as we add your revenue as spoken of BIW spoken about. Whatever we are adding is higher margin. So I’m sure we will continue to see sustained margin improvements as we have for the last eight quarters of this year. I think there has been sustained margin improvement we will continue to work on that for the standard entity also.

Mr. Hari Kumar — an Individual Investor — Analyst

Very good. Thank you very much.

Operator

Thank you sir, We’ll take the next question from the line of Radish Gandhi from Discovery Capital. Please go ahead.

Radish Gandhi — Discovery Capital — Analyst

Yeah, hi. How much is your gross debt and exceeded net debt right now in the business?

Aditya Rao — Vice Chairman and Managing Director

Could you say that again? How much is at?

Radish Gandhi — Discovery Capital — Analyst

[Indecipherable].

Aditya Rao — Vice Chairman and Managing Director

[Indecipherable]. There has been not a substantial increase in terms of the different positions that we have. And through working capital measures, we are able to increase the net debt position as close to 628 crores what we have gross debt. The net debt, if you add up the cash and bank balances, it goes to 120 crores that we have, the net debt will be 500 crores.

Radish Gandhi — Discovery Capital — Analyst

Got it. And just to understand in terms of– Do I have a plan of reducing external debt and is the free cash flow given the overall EBITDA is increasing your profitability is increasing? Would we be seeing the optimal free cash flow being used to pay down external debt? Or will the less debt be removed status given the expansion we’re doing an incremental lowering capital given growth?

Aditya Rao — Vice Chairman and Managing Director

I think the vast majority of our debt over I would say close to 80% above is working capital debt. Some of that cash [Indecipherable] non cash. So I don’t see any way they’re going to escape that they’re going to continue to need these instruments. You can see our debt increase in proportion to our revenue. And what we mark it out as we make sure interest cost is less than 3% of our overall revenue. That’s what we try to make sure that happens. But what we do also is as she can’t as mentioned set cash aside, so you will see a lot of positive cash flow operations for this year and already nine months I think you’ve seen it or another three quarters.

Radish Gandhi — Discovery Capital — Analyst

Yeah, but close to 100 crores as well.

Aditya Rao — Vice Chairman and Managing Director

Yeah, you can say 100 crores cash [Indecipherable] this year for sure.

Radish Gandhi — Discovery Capital — Analyst

Got it. Understood. And the other question is with regards to you know, you’ve indicated there’s some amount of excess land etc. You guys are in the process of considering sort of monetizing. Is there any update on that? Is that actually being actively pursued? Or is that sort of actually a longer term aspiration.

Aditya Rao — Vice Chairman and Managing Director

As of right now, we have nothing to share with you. But as I’ve mentioned, in my last call, this is something that the board takes up and is reviewing. We’ve already affected a sale of one small portion of our land assets. But we don’t see ourselves as a real estate company. So as the board [Indecipherable], but we have no interest in expanding or anything for that land. It’s an asset that’s there is good. So we were better off having our assets and manufacturing equipment, and other kinds of assets. So we’re not actively [Indecipherable]. What is there the board will take addition and when we have something to share, we will definitely communicate with.

Radish Gandhi — Discovery Capital — Analyst

Got it. Good, understood. And with regards to-

Operator

Sorry to interrupt, sir. May we request to join the question queue, please?

Radish Gandhi — Discovery Capital — Analyst

Sure, no problem.

Operator

We’ll take the next question from the line of Ankun Agarwal from Aussie Wealth Solution Private Limited, please go ahead, sir.

Ankun Agarwal — Aussie Wealth Solution Private Limited — Analyst

So, [Indecipherable] order book has on debt, all verticals.

Aditya Rao — Vice Chairman and Managing Director

So we have covered that sir I think we don’t mention combining all the audiobooks, I think is a risky feature but previously, the investor had suggested it’s about 1500 crores

Ankun Agarwal — Aussie Wealth Solution Private Limited — Analyst

Is fine to make your prediction with your turnover when you [Indecipherable].

Aditya Rao — Vice Chairman and Managing Director

Got a rejection that said next quarter [Indecipherable]

Ankun Agarwal — Aussie Wealth Solution Private Limited — Analyst

This was actually a function of production function revenue.

Aditya Rao — Vice Chairman and Managing Director

Revenue projection area temper allocates Q4 body strong quarter over both revenue or profitability heavy Cisco.

Ankun Agarwal — Aussie Wealth Solution Private Limited — Analyst

Any capex plan for next year?

Aditya Rao — Vice Chairman and Managing Director

Yes, we are expanding our PV in India PV in US, our module plant and our body [Indecipherable]

Ankun Agarwal — Aussie Wealth Solution Private Limited — Analyst

How much funds required?

Aditya Rao — Vice Chairman and Managing Director

We have not finalized next year capex budget but we’ll get back to you by the next quarter or the exact amount. But we don’t anticipate raising debt or anything to finance.

Ankun Agarwal — Aussie Wealth Solution Private Limited — Analyst

Thank you.

Operator

Thank you, will take the next question from the line of Patanjali Cha individual investor, please go ahead.

Patanjali Cha — Individual Investor — Analyst

Oh, I see. [Indecipherable] extremely delighted at your results and listening to you for the prospect to the company not only in the next quarter, also subsequently. Really proud of you and the management and the way you have handled the situation in the past. I have a very limited one question. In the past, you did so well. With the ICS, do you have any plans to go back because there’s so much of capex happening there? And it’s a prestigious project with a decent margin, just your take on that?

Aditya Rao — Vice Chairman and Managing Director

Firstly, Thank you for your words. Regarding ICF, your question? We currently have an audiobook. It’s not translating into revenue. If the ICF integral coach factory model, coach factory, and other manufacturers want to expand their order, I mean, they give us more orders, and that translates to the revenue we generally retain and have those capabilities, we have very substantial assets. As of right now, I have no clarity on that business units.

And yeah, as you said, it’s a prestigious project. But what’s important for us is sustainability of our revenue, reliability of our revenue streams. At this point, I don’t have that clarity in terms of on paper, it looks good, but we don’t we can’t depend on that, we ultimately we have a job to do. So I have no sunlight on that. So right now, we’re to give you.

Patanjali Cha — Individual Investor — Analyst

Okay, and one more area we just wanted some ideas on is this possibility is there in many places. So any chances of us expanding our footprint in the release opportunity? Or we stay focused on what we were doing in the past cycle?

Aditya Rao — Vice Chairman and Managing Director

[Indecipherable] Yeah, so our current value proposition for railways involves fabricated structural assemblies, for coaches and wagons effectively involves sidewalls and the frame assemblies, fun parts. So it will continue to be that even for newer trains, it’s like train 18 when they bought it as it’s called in the media, we have strong capabilities. We will continue to sit on that, there is some revenue happening, but it’s about in this year, I doubt it will cross 200 crores for example, but our expectations are higher. Hopefully, it translates. But as of right now, I have I don’t have any confidence that that’s going to happen.

Patanjali Cha — Individual Investor — Analyst

In the near future on the defense front.

Aditya Rao — Vice Chairman and Managing Director

I’ve explicitly been told by my customers not to discuss it.

Patanjali Cha — Individual Investor — Analyst

Thank you and all the best Keep up the good work. Thank you.

Operator

Thank you, sir. Will take the next question from the line of deep [Indecipherable]

Unidentified Participant — — Analyst

Yes, thanks for providing me the opportunity again, I have one more question, I was thinking about almost 1000 crew in a flight. So, if you can share the break up how much out of the 1000 cruisers for your three engineered building divisions and subsequently, you can also share what kind of working capital you have for your steel building.

Aditya Rao — Vice Chairman and Managing Director

So for pre-engineered buildings in India, we have about 100 crossbows connect was blocked would be about 1700 [Indecipherable] so 172 is the gross block for the integrity of our painted building business. From what was your other question? So sorry,

Unidentified Participant — — Analyst

Working capital before this business.

Aditya Rao — Vice Chairman and Managing Director

Working capital for the business, it’s about, it’s about two months of working capital.

Unidentified Participant — — Analyst

Okay. Okay. Thank you.

Operator

Thank you, sir. Will take the next question from the line of paper for deference to Fire Capital, please go ahead.

Unidentified Participant — — Analyst

Hello. Go ahead sir. Yeah. Thank you very much for the opportunity. Okay. So I just wanted to understand on the railways, front, I mean, do we take direct orders? Or do we do I mean, subcontract? I mean, in terms of capabilities, you mentioned we have strong capabilities, right? So, so are we making effort to kind of because railway is one area where we see a lot of potential right in terms of the other inflows that can come in, right. [Indecipherable] how do we look at it?

Aditya Rao — Vice Chairman and Managing Director

So orders are mentioned, we potentially have orders for the next one year also already, but as I suggested, for whatever reason, it’s not converting to revenue. And our orders are directly from the issues such as integral coach factory, model coach factory for coaches, for valiance, it’s denominated by the private sector. So our customers are [Indecipherable].

Unidentified Participant — — Analyst

Okay. But do you see that traction can build over the next maybe, what, one to two years? Or? Or will it be difficult for you to say?

Aditya Rao — Vice Chairman and Managing Director

I think I want to be careful that I see what’s important. What’s important, sir, I think is that there’s a lot of clarity in how they want to roll out their own rolling stock plans. There’s execution on the planning, there’s no problem. I think they’re all hard work. But it’s also the privatization versus not privatization. So I think once there’s clarity on what they want to do, I’m certain that it will come. But as I’ve mentioned, for us, we can’t wait for that, we can’t wait for that for growth. So I think we have to ensure that we scale, irrespective of whatever happens with railway, so that’s our plan. They’re not counting on railways to grow.

Unidentified Participant — — Analyst

Okay, fair enough. I understand. And for my second question, I think, in the previous calls as well, I think we were have we had an aspiration of 5% profit margin, right? Maybe that’s also what sort of timeline we may be looking at do to at those kind of margins?

Aditya Rao — Vice Chairman and Managing Director

So I took over that if we continue on the path, we are on for the quarter quarter mprovement, quarter sustainability, replacing that revenue with good revenue. I’m not seeing I’m seeing our ability to reach that is actually quite strong, but it may take, I would say a year, year and a half would be when we will be able to reach that. And it’s not like 5% is a very high margin, but it doesn’t end at five we should look beyond that as well.

Unidentified Participant — — Analyst

Yeah, but currently, I think we are at about 3% Right? I mean, so the next stepping stone would be at least 5%. Maybe then we might look beyond.

Aditya Rao — Vice Chairman and Managing Director

Yes, exactly right.

Unidentified Participant — — Analyst

And that is 1.21 and a half years is what we need.

Aditya Rao — Vice Chairman and Managing Director

Yes, we can, I can assure you we are working on it on a on a quarter, on quarter basis we have margin expansion is very important for us. So we will continue to work on it. But we haven’t set aside that one and a half years we will definitely do it but I’m certain that you will see quote-unquote improvements and I don’t see a reason why 5% and beyond is not achievable based on a current product profile.

Unidentified Participant — — Analyst

And that’s quite heartening to hear. So that’s it from my side. Thank you very much.

Operator

Thank you. The next question from the line of [Indecipherable]

Unidentified Participant — — Analyst

Two questions. One is a clarification. This pending order book that you are showing and just want to read it. One, the PSU [Indecipherable] under cross which really hardly anything is there it’s also 1100 cost and Debt is on 760 crores and accent is 440 growth that total comes to from 2500 crores only the three of them so it might correct don’t mind making some mistake here.

Aditya Rao — Vice Chairman and Managing Director

You’re right you’re not making a mistake. [Indecipherable]

Unidentified Participant — — Analyst

I think these three only the BB and the PSU business is surface 25 under current pending audits as we speak. Plus there will be some normal comprehensive. Okay, so that’s my question is regarding steel tubes and in pension issues. Then went into the PR industry as you know they have announced their 115 Crore expansion of the DSD deals and pretty much everybody I talked to are talking about expansion investment capital accent all. We have very miniscule capacity in steel tubes.

I understand we’ll– we have got a small pilot plant or something. So, any idea in terms of tubes itself has been quite stagnant for 44 years for us, when everybody is talking about 40 50 60 plus loads. So, one commentary on the steel tears business and expansion in the virtual factory and US business in general, we appreciate it.

Aditya Rao — Vice Chairman and Managing Director

Okay. First clarity on the audible question, you know. So, you’re right, I misspoke. It is what I said when I said 1500 I didn’t include the PSU order book, if I if you include that then yes, it goes, it goes to the number that you mentioned. Now, as far as the plans for tubes are concerned, we believe tubes is one of our good growth verticals. And you’re right regarding T eyes recently announced project to expand the last year large diameter plant which is Anthony and they are spending about 180 crores on that, we will also be expanding into large diameter tube in the next financial year.

As of right now, we have not finalized the project. So, I have no details in terms of the capex or capacity which we are but we do believe this is a good market for us to be in. Our tube manufacturing currently will encompass CW only and not here W [Phonetic]. In CW in India, we would be number two behind data via inductive investment, I’m sorry.

So but obviously, if you look at the entirety of the job market, and you come on here, WCW there, we are a very minor player, but the value addition the most precise products are higher margin products are all in CW even TI [Phonetic] the majority of this LSVT W are not yet W. So that’s the path we’re on. They’re at about 20% of what TI is at right now. We will scale up there’s– there’s plenty of market size for us to grow into. We will scale up. We will be working on implementing a large diameter to project.

Shrikant Bhakkad — Vice President – Finance

So, next– next financial year we will see some investment grade because we will give you clarity on that. The moment we finalize our plan sir, but at this point I will definitely say we– the last democratic capacity is definitely something we will expand into.

Unidentified Participant — — Analyst

Second question is regarding this-

Operator

Sorry to interrupt with that question. We have participants waiting for their turn.

Unidentified Participant — — Analyst

Okay.

Operator

We take the next question from the line of Mr. Gaurav Agarwal, an Individual Investor. Please go ahead.

Mr. Gaurav Agarwal — an Individual Investor — Analyst

Thank you for the opportunity, sir. Sir, my question was with regard to other income. So, if you know, there is a substantial jump on a nine-month basis. So, how do you see– what are the key components of this other income and is it sustainable and if not, then what is the trajectory going forward?

Aditya Rao — Vice Chairman and Managing Director

There are various streams of other income when it comes predominantly. This is an account of the amount that we are sitting on Treasury and the cash and bank balances. That’s where the amount comes from and also the other income that we have as an account of foreign exchange fluctuations, that we had voluntary. Last couple of quarters, there was volatility, so, we had some exchanges, but this is this may not be the scenario which may which will repeat in the future.

Mr. Gaurav Agarwal — an Individual Investor — Analyst

Of the nine months other income terrifies here, how much it would be on account of foreign exchange?

Aditya Rao — Vice Chairman and Managing Director

Foreign exchange fluctuation is close around 15 Cr [Phonetic].

Mr. Gaurav Agarwal — an Individual Investor — Analyst

Okay, and so, when you give– you know, pad guidance and you know, for FY ’24, you know, you want to perform better than FY ’23. So, you would obviously take into account all these things, right, like other income, which was unsustainable, like Forex income, it won’t be a part of next year. So, you take all those things in account, then you then you– you know, give your guidance per se, but your aspiration for FY ’24.

Shrikant Bhakkad — Vice President – Finance

We generally do not give–

Aditya Rao — Vice Chairman and Managing Director

No, I think the question is regarding the reliability of other income. We are quite sure it will be– I think we, when we do our pricing, we are quite clear what margin want to sell our products at. Our margins will be sustainable. So, the other income comes or not, these are– these are components of an entire margin that come in, we will ensure margin protection if that’s your question.

Mr. Gaurav Agarwal — an Individual Investor — Analyst

Okay. And sir, you know, of the side effects here just copying on it a bit more. Is there any right back component also, like there are some provisions that you keep making, you know, on a quarterly basis? So, what’s some write backs also be a part of this and if yes, how much would that number be in fortify assignments FY ’23.

Aditya Rao — Vice Chairman and Managing Director

They’ll write back a certain part of it. But both right backs and this foreign exchange fluctuation will not repeat, per se is what I’m saying. What you will repeat is basically the Treasury income that we are setting which is in terms of bank deposits and other income that we have. The foreign exchange fluctuation– if the fluctuation happens, both this gets factored when we sell to the customers and what we receive. That’s the difference and we had the quarter and one of the recognitions we have, we have a difference. But it has more to do with the exchange fluctuation rather than repeating every time. If– doesn’t it answer your question?

Mr. Gaurav Agarwal — an Individual Investor — Analyst

Yes, it does. And just one last question on the monetization front. Do you have– you know, in near term goals in terms of monetizing some non-core assets for land assets? And if yes, how much could be the quantum. In case you don’t want to monetize them, what could be the quantum otherwise, you know, for these are non core land or non core assets?

Aditya Rao — Vice Chairman and Managing Director

I think we had answered this question previously, sir, we currently have don’t have a plan to commit to you on a liquidation of land assets. But, we don’t see it as an as a quote, asset for the company. So as we have lunch, we will we already liquidate some portion. As we have, as you have an idea of what what we’re going to do with it, we will communicate it to you, but the board is discussing this issue. And once we understand it better, we’ll get back to Question. Consider the quantum if you could share that number. I mean, there’s substantial land assets in the company, the valuation of that is market determined, but within the company there are in excess of three 400 acres. So…

Mr. Gaurav Agarwal — an Individual Investor — Analyst

Okay, yeah. 400, here is what I can take.

Aditya Rao — Vice Chairman and Managing Director

I would not be able to come into the exact valuation of Atlanta.

Mr. Gaurav Agarwal — an Individual Investor — Analyst

But no problem. No problem. Thank you so much today and Thank you for providing clarification on.

Aditya Rao — Vice Chairman and Managing Director

Okay. Thank you.

Operator

Thank you, We’ll take the next question from the line of Mr. Goro Sutiva [Phonetic] from Banaras. Please go ahead.

Goro Sutiva — Banaras — Analyst

Throw some light on the acquisition with what’s happening in France, acquisition.

Aditya Rao — Vice Chairman and Managing Director

Acquisition from SCADNAM is in the aerospace field. We are hard at work trying to scale that business up.Nothing last quarter, I mentioned that we will give you a little more clarity. So there are now achieved profitability. I’m going to a very small for us it’s about building Europe out into a bigger market. So both our engineering services revenue and and our aerospace machining business revenue is growing quite well.

Kadam also gives you a lot of capabilities in the automotive tooling space, which they also specialize in. So it’s work in progress. But over the course of the next year, I’m certain we can make this into a big driver of our revenue and profitability in Europe. But right now, it’s early days, but it’s profitable. We are it has we have met our expectations from acquisition.

Goro Sutiva — Banaras — Analyst

Never really [Indecipherable]

Aditya Rao — Vice Chairman and Managing Director

It’s I will not be able to give you the exact record right now. Sir. It is low. I mean, the entirety of our Europe revenue would be close to about 60 or 70 crores a year it’s low.

Goro Sutiva — Banaras — Analyst

[Indecipherable]

Aditya Rao — Vice Chairman and Managing Director

Solar vertical what exactly.

Shrikant Bhakkad — Vice President – Finance

So solar we provide module monitoring systems tracker solutions and module manufacturing.

Goro Sutiva — Banaras — Analyst

Okay.

Operator

Thank you. We take the next question from the line of Casey Pawan of an Individual Investor. Please go ahead.

Casey Pawan — an Individual Investor — Analyst

I’ve been an investor in your company in a very long time. So far I have not received an inducement any reward for my investment is there any need for giving any dividend in the near future?

Aditya Rao — Vice Chairman and Managing Director

Dividends and any other corporate actions are decided by the board and the board takes the ratio which feels appropriate from time to time I am thankful for you for being a long term investor with the company and once the board has something to share, I will convey that to you sir Once a decision has been made. I will say that we have completed a buyback a substantial buyback in the last financial year and we continue to debate these are the bonuses. The Thank you again for your support. I do mean extra and

Casey Pawan — an Individual Investor — Analyst

Thank you.

Operator

Thank you, so ladies and gentleman that was the last question for the day. I would now like to hand the conference over to the management for closing comments.

Aditya Rao — Vice Chairman and Managing Director

Thank you for your presence and for your questions. We will continue to do the work we have set out for us and hope to close the year off strongly for revenue per and PBT forgive yourself. Thank you so much for your question.

Operator

[Operator Closing Remarks]