Psp Projects Ltd (PSPPROJECT) Q2 FY23 Earnings Concall Transcript

Psp Projects Ltd (NSE:PSPPROJECT) Q2 FY23 Earnings Concall dated Oct. 18, 2022

Corporate Participants:

Hetal Patel — Chief Financial Officer

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Analysts:

Ravi Naredi — Naredi Investments — Analyst

Parikshit Kandpal — HDFC Securities — Analyst

Navid Virani — Bastion Capital — Analyst

Shravan Shah — Dolat Capital — Analyst

Unidentified Participant — — Analyst

Chintan Sheth — Sameeksha Capital — Analyst

Prasanth Gopal — Spark Fund — Analyst

Balkrushna Vaghasia — Axanoun Investment Management — Analyst

Abhishek Basumallick — Intelsense Capital — Analyst

Jay Shah — Capital PMS — Analyst

Rushabh Shah — RBSA Investment Manager — Analyst

Mahek Talati — YellowJersey Investment Advisors — Analyst

Jainam Shah — Equirus Private Limited — Analyst

Meet Parikh — Analyst

Presentation:

Operator

Ladies and gentlemen, good day, and welcome to the Q2 FY ’23 and H1 FY ’23 Conference Call of PSP Projects Limited, hosted by Anand Rathi Share and Stock Brokers. [Operator Instructions] Please note, this conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict.

I now hand the conference over to Mr. Meet Parikh from Anand Rathi Share and Stock Brokers. Thank you, and over to you.

Meet Parikh — Analyst

Thank you, Yashashri. On behalf of Anand Rathi Shares and Stock Brokers, I welcome everyone to Q2 and H1 FY ’23 earnings call for PSP Projects Limited. From the management side, we have Mr. P.S. Patel, Chairman, Managing Director and, CEO; Ms. Hetal Patel, Chief Financial Officer [Technical Issues] opening remarks from the management regarding the industry and the results, post which we’ll open up for the — for an interactive Q&A. Over to you, ma’am.

Hetal Patel — Chief Financial Officer

Thank you for joining our earnings call. Please note that a copy of our disclosure is available on the Investors section of our website as well as the stock exchanges. Please do note that anything said on this call, which reflects our outlook towards future, or which could be construed as a forward-looking statement, mostly driven in conjunction with the risks that the company faces.

With that, I would like to hand over the floor to our MD, Mr. Prahaladbhai Patel for his opening statement.

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Thank you, Hetal. Thank you, moderator. Good evening, ladies and gentlemen, a warm welcome to each one of you and thank you for joining us on our Q2 ’23 earning call. I trust everyone is doing well. I believe you have got a chance to go through the investors presentation uploaded on the stock exchange and website.

I will begin with the key highlights that took place during the second quarter. PSP Projects reported an overall good performance in an otherwise seasonally-challenging quarter. We are happy to announce that PSP Projects has once again recorded highest ever order book till date of INR5,081 crore in comparison to all previous H1. The company has received highest-ever order in flow of INR1,512 in H1 FY ’23 as compared to INR637.22 crore during H1 FY ’22.

We are happy to announce during the current financial year, the pattern of our order win is more towards institutional orders and only 7% orders received from government out of the total order inflow of INR1,512 crore. Also, you will see majority of the projects awarded during the current year are from the state of Gujarat.

Total 14 projects were awarded during the quarter, of which the major projects are corporate office building project by leading multinational company of value INR290 crores. Repeat order in precast for National Highway-Speed Project from L&T of value INR195 crore. Fore court development at Ahmedabad Airport of value — fore court development at Ahmedabad Airport value INR128 crore. Repeat order to construct Phase II of a noodle plant by a leading multinational company of value INR115 crore. Repeat order to construct a manufacturing unit by a leading pharmaceutical company of value INR99 crores. Archaeological museum of value INR97 crore awarded by Government of Gujarat.

During the quarter, we completed 10 projects, all the projects were completed in time. Total projects completed till date totals 196 projects. Three [Phonetic] of the prominent projects completed are medical college and hospital at Rajasthan, an EPC project of High rise commercial building in GIFT city, corporate office building for Indian Potash Limited, Gujarat, and four precast projects.

As on 30 September 2022, the government projects comprises of 46% of all the business verticals. As on this, we have 49 ongoing projects, of this 50% are based in Gujarat, 36% in UP, 14% in Maharashtra and 0.2% [Phonetic] in Rajasthan. Bid pipeline going forward, we have a bid pipeline of approximately INR5,000 crore, of which, 45% is from private projects and around 52% from the state of Gujarat.

An update on UP projects. We have — sorry, we have an update on Bhiwandi and Pandharpur. We have two slow-moving projects in total that is Bhiwandi and Pandharpur, which together contribute to about 14% of our outstanding order book, rest of all our projects are fully mobilized. Also you must have noticed the decline in the revenue comprising year-on-year as well as the reduction in the margins.

Work from [Indecipherable] issues during the monsoon times can be considered as a major reason for the decline in revenue during the quarter ended June. All our projects in UP contributes to about 36%. Our order book are at a structural level therefore this progress [Indecipherable] differently due to this monsoon. Also, as we mentioned above, we are in the receipt of order worth of INR1,512 crore during current financial year major in Gujarat, and those projects are either at basement level or at ground level, where monsoon disturbs the most in construction process.

This year Gujarat also witnessed an unusual heavy rains, which prolonged till September end. This impacted a huge site by creating non-working condition and lower productivity. [Indecipherable] during the same quarter last year, as we were on the verge of completion of major projects like SDB and Kashi projects, where the structure was completed and we were executing mostly MEP and finishing work, which can be carried out smoothly in rainy season also.

Also due to this heavy order inflow during H1, company appointed and increased employee strength against the revenue decrease due to monsoon, which really impacted the margins almost by 2%. We consider this as a seasonal effect and has come out from the situation and work on all projects are going from October onwards smoothly.

To summarize, this financial has been part of this year in terms of order book, or little bit in terms of acquisition in quarter two, which will be strongly improved in the coming quarters as we have entered into a season [Indecipherable] to the construction segment. We are also confident and positive for the growth of infrastructure segment due to government’s conscious efforts to accelerate economic growth through higher infrastructure spend and providing incentives to domestic manufacturing.

A pickup in private CapEx is adding to India’s growth story. The softening of the commodity prices, augers well for infrastructure companies with steel prices having declined by 20% from its highest of March 2022.

With this, I conclude my remarks and now I would like to hand over the call to Ms. Hetal Patel to take us through the finance.

Hetal Patel — Chief Financial Officer

Thank you, sir. The financial performance during the quarter ended September 2022 is as follows. Quarter two FY ’23 versus quarter two FY ’22. Revenue from operations from the — for the quarter is at INR357 crores versus INR390 crores, which is reduced by 9% on YoY basis. EBITDA for the quarter is at INR39 crores versus INR55 crores, lower by 29% on YoY basis. EBITDA margin is at 10.83% versus 14.02%. Net profit for the quarter is at INR22.95 crores versus INR36.61 crores, which is lower by 37% on YoY basis. PAT margin is at 6.29% versus 9.27%.

The major reason of decline in revenue and margins have been briefed by P.S. sir in his remarks. During the quarter, the revenue generated from all UP projects put together was INR84 crores during quarter two FY ’23. Cumulative revenue till 30 September 2022 is INR266 crores for this project. Increase in other income is mainly attributable to reversal of impairment loans — impairment of loans to subsidiary companies, PSP Projects and Proactive Constructions Private Limited. As the subsidiary has repaid loan to the extent of INR75 lakhs during the quarter and is expected to repay the balance loan, the impairment provision of INR2 crores has been reversed during the quarter.

We’d like to mention a few important balance sheet numbers as on 30 September 2022. Long-term borrowing is INR46 crores compared to INR50 crores in quarter one. Short-term borrowing, INR111 crores, which was INR67 crores as on 30 June quarter one. Gross block of assets, INR351 crores; and net block, INR197 crores. Additions during the quarter was INR6 crores. Increase in inventory from INR81 crores in March ’22 to INR114 crores as on 30 September ’22, is mainly due to increase in work in progress by INR30 crores. Increase in current loans is mainly due to reversal of impairment on loans through subsidiary to the extent of INR2 crores. Other financial assets has increased mainly due to increasing amounts due from customers that is unbilled revenue, which has increased from INR128 crores to INR147 crores. This mainly consists of INR35 crores for Kashi project and INR24 crores of SDB projects, for which the final dates are under certification by the client.

Increase in other current assets from INR92 crores to INR176 crores is mainly attributable to increase in advances to vendors from INR75 crores to INR127 crores and increase in balance with government authorities from INR11 crores to INR36 crores. Amount due to customers in advance millings is INR31 crores and INR21 crores as on March ’22. Retention non-current is INR85 crores, which was INR81 crores in March ’22. Retention current, INR36 crores, which was INR33 crores in March ’22. Mobilization advance, INR141 crores, which was INR136 crores in March ’22.

Working capital days are as follows, debtor days are 72, creditor days are 71, inventory days are 29, total net working capital days are 30. Out of total credit facility of INR1,047 crores, utilized limit is INR645 crores, of which INR85 crores are fund-based utilization and INR560 crores is non-fund-based utilization.

As on 30 September ’22, the company has total fixed deposit of INR333 crores, out of which three deposits are INR116 crores. FD’s worth INR119 crores are under lien with banks or credit facility, and FD’s given to client as securities and amounts to INR18 crores. Work on hand, as on 30th September ’22 is INR5,081 crores. A detailed bifurcation is as per the presentation.

That concludes the update on financials, and we open the floor for question and answers. Thank you.

Questions and Answers:

Operator

Thank you very much. We will now begin the question-and-answer session. [Operator Instructions] We have our first question from the line of Shravan Shah from Dolat Capital. Please go ahead. Mr. Shravan Shah, kindly unmute your line. Please check his connection. We have a question from the line of Ravi Naredi from Naredi Investments. Please go ahead.

Ravi Naredi — Naredi Investments — Analyst

Sir, we have so much order book of INR5,000 crores, why our top line is less in quarter two when compared to last year? Any specific reason?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

See, I already mentioned in my opening remarks that the major impact is only because of monsoon, as most of the buildings which we are doing in UP, that is covering about 36% of our order book that is part. And the monsoons in UP were prolonged till September end, that was one of the reasons. And the new order inflow of almost INR1,500 crores, which comprises of our Adani energy house, Moneycontrol Junction [Indecipherable] all these projects are in a way at this stage of starting, that was they were in the monsoon — because they were at the foundation level, whether they’re in the basement or they’re at the foundation level.

So mostly when the structure work — previously also I have always mentioned, the quarter revenue mostly depends on what type of activity and the profits are also affected by the activities which are going in that quarter. So this year, this [Indecipherable] matter of chance that most of the buildings were at the structure stage and very few buildings were at the finishing stage, which was the reverse case in the last quarter when Surat Diamond Bourse and Kashi was going on. So that has impacted to the top line as well as the plans to the extent to the bottom line. And bottom line is mostly impacted because the revenue was less and the expenses remained the same or the expenses little bit increased because of the new staff we have taken for carrying out the new order book. So that all has included — affected the overall top line and because of the season. And the profit margin is affected because of the expensing remaining the same and the revenues getting reduced.

Ravi Naredi — Naredi Investments — Analyst

Right. Thank you. Thank you. Detailed answer. All the best. All the best.

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Thank you.

Operator

Thank you. We have our next question from the line of Parikshit Kandpal from HDFC Securities. Please go ahead.

Parikshit Kandpal — HDFC Securities — Analyst

Hi, sir. Sir, my first question is on the numbers. So first half, we have done INR700 crores. So YoY is about just flattish. But our working capital has deteriorated. Just wanted a sense on why are we seeing deterioration in the working capital?

Hetal Patel — Chief Financial Officer

See, as sir has already mentioned, we have started this with new project. And for that, it is still under exploration phase. And for that, we need to take the inventory and some work then, which is to be mentioned as a work in progress. So those are not yet done, we need to spend for those projects. And still billing may not be — may not have started to that extent.

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Expenses delineated mobilization also.

Hetal Patel — Chief Financial Officer

Yes, few mobilization expenses, there would also be little impact. So for that, working capital is utilized.

Parikshit Kandpal — HDFC Securities — Analyst

Ma’am, because our share of government orders in the order book is increasing. So is it something to do with that the nature of blended working capital is seeing some deterioration because of the mix change as well?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

No, no, it can’t be considered that way. It is purely because of the stage of the work. And most of the projects [Indecipherable] when you start, it requires a huge money in terms of mobilization and making the infrastructure required for the site. And because of that expense being done in that first one, two — first in the second quarter, that infrastructure getting the convert into revenue till the end of the project.

Parikshit Kandpal — HDFC Securities — Analyst

Okay. My second question is on — first quarter was impacted because of labor availability. Second quarter, there was extended monsoon. But now have the things normalized because we have a festive season during this October, where people go home. So how do you think the third quarter will pan out? And how will it impact your full year guidance about 15% growth or closer to INR2,000 crores of turnover because you’ll have to make up for INR1,300 crores of revenue in the second half, which will be a growth of almost 26% to 27% in the second half of last year. So how do you stand out there?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

So there are two things to see here. So there are few build projects, which are in UP, they are still at the structural level, but the finishing work of the buildings, which are already been done has already been started since last one month. And the MEP provisions, which are required — MEP purchases which are required for those projects are already been done. So probably we have already initiated all these three activities, initial MEP and the plastering part.

So I personally feel that there will be a revenue — there won’t be any much issue because of this — because probably because of the rain, but the resources were available [Indecipherable] there are two things to see here. So there are few build projects, which are in UP, they are still at the structural level, but the finishing work of the buildings, which are already been done has already been started since last one month. And the MEP provisions, which are required — MEP purchases which are required for those projects are already been done. So probably we have already initiated all these three activities, initial MEP and the plastering part. e second — because the resources were not only in the first quarter. And when the resources were available, we were not having that situation to start the project because it was open to start. But now the situation is in control and we have sufficient labor and I personally feel that we’ll be able to recover that.

Parikshit Kandpal — HDFC Securities — Analyst

And what about the guidance, sir, will you be able to do INR2,000 crores of turnover this year?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Of course, we’ll be able to do.

Parikshit Kandpal — HDFC Securities — Analyst

Okay. The last question, sir, on these projects. So the EWS projects and the Uttar Pradesh medical colleges. So what kind of margins do you expect you can make on these projects now because these two are the large part of the order backlog? So if you can update us on the EWS projects, how is the legal update — any legal update you have? And on the medical colleges, what kind of margins do you think the residual order book has?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

See margins as we have already said that it has never been impacted because of the medical college or the situation in UP. It was — it has — in this quarter also, as I mentioned, it has impacted 2% largely because of the overheads remaining the same and the revenue being not generated because of the situation of season. And as far as — so probably there won’t be any impact much on the margin because of UP. And secondly, the question was about EWS Bhiwandi, yes the hearing was largely done. And again, the new date which is given is 21 November now to hear on the arbitration part.

Parikshit Kandpal — HDFC Securities — Analyst

Sure, sir. Thank you. I’ll join the queue for more question. Thank you and all the best.

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Thank you.

Operator

Thank you. We have our next question from the line of Navid Virani from Bastion Capital. Please go ahead.

Navid Virani — Bastion Capital — Analyst

Hi, sir. Good evening.

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Good evening.

Navid Virani — Bastion Capital — Analyst

Sir, I had two questions. One was related to — you mentioned in your opening remarks that there was some augmenting — augmented hiring, which was done and the revenue did not grow in line with that. So just wanted to understand as to when things normalize, can we expect the cost to normalize to around 4% level such a percentage of revenue?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Yes, yes. Because in this quarter only, we’ll try 6%, 6.5%. But probably if we go in the same pace also, at the end of the year, we’ll be in the range of 3.5% to 4%.

Navid Virani — Bastion Capital — Analyst

That’s helpful. And sir, last one, I just wanted to understand that the borrowing and as a result, finance cost has started to climb up. So just wanted to understand as to are we refraining to take mobilization advances and are taking debt to fund the projects initially, is that the case?

Hetal Patel — Chief Financial Officer

See, mostly our new projects will be with mobilization advance. And also, definitely, it will be streamlined. So currently, we are using this working capital for the new project and all. But once the formalities and everything is over, that mobilization advance will be coming for the [Indecipherable]. So that we’ll be utilizing in next quarter — in this current quarter.

Navid Virani — Bastion Capital — Analyst

Understood. Understood. And then lastly, if you can just again mention the number of pledged FDs with the bank?

Hetal Patel — Chief Financial Officer

Yes. I had mentioned a total number of FDs at INR333 crores. And out of that, the FDs pledged with the bank is INR199 crores, right? And a total three FDs because it’s INR116 crores. So if you see, we are utilizing those fund base limit because we don’t want to break these FDs and all. So the company has the funds, surplus funds available to use as — instead of using working capital. But as a prudent policy, we are for a temporary [Indecipherable], we are utilizing working capital limits.

Navid Virani — Bastion Capital — Analyst

Okay. That’s it from my side. Thank you and all the best.

Operator

Thank you. We have our next question from the line of Shravan Shah from Dolat Capital. Please go ahead.

Shravan Shah — Dolat Capital — Analyst

Hi, sir. Sir, just again, coming back to the execution part. So now as you are saying, the execution is now on the smooth and monsoon is kind of over. So for the third and fourth quarter, how much — so I think last time, we said around INR2,200 crores revenue and just now you say INR2,000 crores. So for the full year, how much we are looking at? Because we were talking about 22% [Phonetic] 25%. So that was around INR2,200 crores revenue we were looking at. So now how much we can easily do for this year?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

See, I have not said INR2,000 crores. Parikshit asked me that we’ll be able to reach to INR2,000 crores? So he mentioned about INR2,000 crores. Yes, we have still promised about INR2,200 crores. And our projection planning and the internal planning still maintains at the INR2,200 crores, and we’ll try to reach to INR2,200 crore.

Shravan Shah — Dolat Capital — Analyst

So from this quarter, we can — so that means we need to do close to INR1,500 crores kind of revenue in second half. So can we see INR600 crores, INR650 crores plus from the third quarter itself, so that the fourth quarter should not have a significant pressure in terms of INR1,000 crores?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Yes, of course, we have to do. And that is there in our planning for this quarter.

Shravan Shah — Dolat Capital — Analyst

Okay. That is great thing. And in terms of the margin, as you mentioned, now the — once the execution will be normalized, so the employee costs will be coming down. So we would be, again, back to the 12%-plus kind of margin?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Yes. Yes.

Shravan Shah — Dolat Capital — Analyst

Okay. Third is on the order inflow. So INR1,512 crores we have received, plus the latest INR345 crores government Gujarat order. So that if we add, so we have close to INR1,857 crore order inflow. So how much more now we are looking at?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

We still stick to our order inflow target of INR2,500 crore.

Shravan Shah — Dolat Capital — Analyst

Okay, INR2,500 crores. So are we L1 or anything — any specific order that you think likely to be open bid in next two months?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

No, we have — whatever we were allowing, we have already [Indecipherable] But there are three projects still to come, which is will be in a large scale. And probably still we are having six months of journey from year to end until March 2023. So adding on further INR1,000 crores from here will not be a good task. Even if that L1 order is converted into — L1 status is committed to order, we’ve already reached to INR1,800 crores. So we will require further INR1,000 crores inflow till March, which is, I personally feel is not that much big task. And it is during that period if we get the larger opportunity to go beyond that, that can also be seen. But presently, I’m saying that it can be — we will be easily reaching to INR2,500 crore.

Shravan Shah — Dolat Capital — Analyst

Okay. That’s great. And then further, in terms of the large projects, so we mentioned the INR5,000 crores bid pipeline. So last time also said a couple of INR1,000 odd-crore kind of project is there, so Surat and Mumbai, gems and jewelry. So anything specific you want to highlight, when the bidding will be done? When can we see the outcome?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

The Surat bidding is already completed, but somewhere by bad luck, only single tender of PSP has come. So probably the Surat municipal corporation will go again for bidding within maybe next week. Let us see how it goes beyond by end of this month. But presently, we have already bidded the tender and it was only using the tender. So I personally feel [Indecipherable] doesn’t have received any news from them, but probably single tenders are usually rejected by the department at first level, and second you can consider a second stage. They may consider single tender also. But as of now, we are not sure what they will decide. But even if they go for re-invitation of tender, that will come within this week — within next week.

Shravan Shah — Dolat Capital — Analyst

Okay, and then Mumbai [Speech Overlap] Okay, okay, no issues. Okay, okay. Thank you.

Operator

We have our next question from the line of Piyush Jain [Phonetic], an individual investor. Please go ahead.

Unidentified Participant — — Analyst

Hello?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Hello?

Unidentified Participant — — Analyst

Sir, just wanted to check this margin decline in this current quarter because of monsoon, what you are saying is whatever around 11% to 10%, is it a one-off? And will again close the year and next one or two year in the trajectory of 14% of margin, which we have achieved in 2022?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

No, 14% may be say that is in general not achievable all the time. Usually it is in the range of 11% to 12%, and we will be reaching to that level, and we’ll be trying to maintain that level because 14% what we reached was special case. And as I said, it depends on the quarter what type of activities are there and what level of projects are going on in those activities in that quarter.

Unidentified Participant — — Analyst

So you have given a target of around 12% to 12.5%, correct?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Yes, yes.

Unidentified Participant — — Analyst

Okay. Sir, the next question is that one or two times in this call, we have mentioned the Central Vista opportunity when you said that if you completed that Surat Diamond Bourse project, the you will have a visibility to bid for higher projects. So anything work down on that scale, sir, Central Vista or any other big project? Maybe you’re not bidded or maybe you’re just evaluating?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

So the bidding on that client only, the Surat Diamond — the completion of Surat Diamond Bourse, the project which we have bidded for Surat Municipal Corporation is INR1,080 crores, and that is based on the criteria only where we have got this opportunity bid for such a large project. And as far as Central Vista is concerned, till now, there is no tender from the date when we have received that certificate from Surat Diamond Bourse, one of the large projects has been announced by — at Central Vista level till now.

Unidentified Participant — — Analyst

Okay. Any other opportunity after you becoming eligible for bigger projects after the Surat Diamond Bourse which you are evaluating?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

No. Not to the scale which you are thinking, which is more than INR1,000 crore or INR1,500 crore had been announced.

Unidentified Participant — — Analyst

Okay, sir. Sir, what is your overall outlook, the way you would be seeing this the projects are being started evaluated of what you are bidding? What is the outlook you are seeing overall, not about the quarter or per se something, maybe a one or two year outlook wise, how is the activity going on?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

See, overall outlook as we always strive and always to achieve is about 20% to 25% of growth. And each year, we should lend to a minimum order book of additional further 20% to 25% order book, keeping to the revenue. That can put us all the time to order — outstanding order book of more than INR5,000 crores, which is more than sufficient for next one, 1.5 year.

Unidentified Participant — — Analyst

And sir, you said the INR1,000 crores still expected in H2. So let’s assume this INR5,000 crores will become INR1,000 crore — INR6,000 crore. And then out of this INR6,000 crores, there will be an execution of around INR1,200 crores to INR1,300 crore. So are we saying we’ll close the year around INR4,800 crore or INR5,000 around, or you will have a higher order book by the end of March ’23?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

See, this time, it is an effort that — usually first two quarters, we do not get so many numbers of order, but we said this has happened for the first time in five years. So we have already reached to INR1,500 crore, plus the L1 that is INR1,800 crore. So probably, if we get a good opportunity, we can go beyond INR2,500 crores. But presently, I look at INR2,500 crores minimum.

Unidentified Participant — — Analyst

Any upper side, which you have —

Operator

May I request you to come back in the queue?

Unidentified Participant — — Analyst

Okay. No issues. Thank you.

Operator

Thank you. [Operator Instructions] We have a question from the line of Agam Shah [Phonetic], an individual investor. Please go ahead.

Unidentified Participant — — Analyst

Can you give me — can you repeat figures for your debt equity? How much debt is there in your balance sheet, including your working capital debt just compared to —

Hetal Patel — Chief Financial Officer

Yes, sure. See, as I mentioned, our long-term debt is INR46 crores, which mainly includes equipment loans and one mobilization finance, which we have [Indecipherable] And short-term debt, that is CP and other working capital requirement is INR111 crores.

Unidentified Participant — — Analyst

Okay. And how was this figure last year, same quarter?

Hetal Patel — Chief Financial Officer

Yes. Last year, the long-term debt was INR50 crores and short-term debt — as of March ’22, I’m saying, and short term debt was INR67 crores. So if you see the short-term working capital limits has been utilized more by — up to INR111 crores from INR67 crores, yes.

Unidentified Participant — — Analyst

And you see this figure more increasing?

Hetal Patel — Chief Financial Officer

Yes, it may not be increasing because see, like normally, our range is between INR60 crore to INR80 crore — maximum up to INR90 crores. But this we have already mentioned that since a few of the new projects are at the state of starting of the project, we need to finance — we need to expense for whether it’s mobilization expenses, like labor colony and all other major expenses. Until then, we might not have received the mobilization advance, as some formalities need to be completed for these new projects. So that’s the reason.

Unidentified Participant — — Analyst

Okay. And on the Pandharpur and the two projects, which are stuck, so any update on that, let’s say, the hearing is postponed. So what is the road map ahead?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

You see, we are waiting the court to decide on the arbitration as far as BSE is concerned. Once we are awarded the arbitration, then the process of arbitration about our claims related to what we have spent on the project will start. And on the Pandharpur side, we’ve seen nothing has happened. We are just sent a notice for the payments, which we have been long term due. So they have not — I think they have replied for that — we have not replied to that, or not is to the Pandharpur [Indecipherable].

Unidentified Participant — — Analyst

So INR700 crores is the size of the two projects, right, totally?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

No, no, INR550 crore and INR150 crore, yes, INR700 crore. You’re right.

Unidentified Participant — — Analyst

That includes INR5,000, right? Or INR5,000 crore —

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Yes, that is included in present outstanding order, you are right.

Unidentified Participant — — Analyst

And projection for this year internally, does it include any work coming from these two projects, or is without this?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

No, no, we are not considering that those projects will start for — and we have not considered any reason for the projection of this year.

Unidentified Participant — — Analyst

Okay. Thank you so much.

Operator

Thank you. We have our next question from the line of Chintan Sheth from Sameeksha Capital. Please go ahead.

Chintan Sheth — Sameeksha Capital — Analyst

Thank you for the opportunity. Sir, one bookkeeping on the pending orders as on September. The Adani residential project, the total contract value last quarter was mentioned around INR499 crores. That has revised down to INR359 crores this quarter. Just wanted to check what has led to that?

And second question is on — as you mentioned, the execution will pick up. But the INR5,000-odd crore of bid pipeline, what are our targets for next year given that if I remove the INR700 crores of orders of the Pandharpur and Bhiwandi, and this year we are looking at INR2,500 crores and INR2,200 crores of revenue, the next year asking rate will depend on the order inflow of next year, right? So if you can guide what are the guidance we are working on for the next year?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Yes. Okay, first question was related to Adani real estate, that order value has been reduced from INR349 crores to INR200 crore, that’s what your question was?

Chintan Sheth — Sameeksha Capital — Analyst

Yes. Project value was INR499 crore. It has reduced to INR359 crore.

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Yes, The INR150 crore order has been canceled because there is a change in design of the overall pack. So that order is no more now in the order book. And it is not part of our INR5,000 crore order book also. We have already made that change. Now that order may come or may not come after design change.

And second question was related to order inflow for the year, right?

Chintan Sheth — Sameeksha Capital — Analyst

Yes, right.

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

So order inflow, I already said that we have targeted about INR2,500 crore, out of which we have reached INR1,512 crore, plus the L1 status, if it is converted to orders, we are already into INR1,800 crore-plus. So we’ll be easily reaching to the order inflow that we have projected for this year.

Chintan Sheth — Sameeksha Capital — Analyst

I was mostly talking about next year order inflows. Any color on that?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Next year order inflow, again as I said, that whatever revenue you can generate and if you can add on your order book to more than 25% of the revenue of the previous year, that’s what we’ve always target for.

Chintan Sheth — Sameeksha Capital — Analyst

Okay, okay. Got it. Got it. Thank you.

Operator

Thank you. We have our next question from the line of Prasanth Gopal from Spark Fund. Please go ahead.

Prasanth Gopal — Spark Fund — Analyst

Hi, sir. So any color on margin impact due to commodity price movements?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Presently, we don’t see any impact on margins. As of now, the steel, cements are reduced to a large extent, and it has become steady. So as such, no much impact should come on the first.

Operator

Mr. Gopal?

Prasanth Gopal — Spark Fund — Analyst

Okay. Thank you, sir.

Operator

Thank you. We have our next question from the line of Balkrushna Vaghasia from Axanoun Investment Management. Please go ahead.

Balkrushna Vaghasia — Axanoun Investment Management — Analyst

Good evening, madam and sir. The first question is related to like, as you say, the PSP was the only bidder for Surat municipal building, right?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Yes.

Balkrushna Vaghasia — Axanoun Investment Management — Analyst

And do you think the process of tender allotment will get completed before the Gujarat election is declared?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

I think now it is a little bit difficult. If the tender could have somebody else has also bidded for the same, because the PK criteria has been a little bit strong. So I think one or two companies [Indecipherable] is getting qualified, but none of the companies have put the tender. So probably even if they give this minimum one week time, so before election, if the tenders are quoted, it can at least the process of tender can be over. So diverting the contract, I personally don’t see that, but fast we can move.

Balkrushna Vaghasia — Axanoun Investment Management — Analyst

Okay. And what is the deadline — project deadline for UP medical college project?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Deadline for project, we already — some of the projects will be getting mostly completed by March and some of the projects are getting towards June to August.

Balkrushna Vaghasia — Axanoun Investment Management — Analyst

March and August next year, right?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Yes, yes.

Balkrushna Vaghasia — Axanoun Investment Management — Analyst

Okay. And as you say that workforce has been increased, right, in comparison of last quarter? So —

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Yes. It has already been increased from the July — August onwards. But July, August was a very heavy rain, and continued till September. That’s the major impact on the part.

Balkrushna Vaghasia — Axanoun Investment Management — Analyst

Do you have any rough number regarding the number — percentage increase in workforce, like employee, number of employees increase?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Probably — I’m not having the exact number. But usually, when it was the crisis of labor, it is almost 30% to 40% of labor available to average number of labor available. So it should be in the incremental of around 60% to 70%.

Balkrushna Vaghasia — Axanoun Investment Management — Analyst

Okay, okay. And are we completely out of Surat Diamond Bourse project, right? That is 100%, right?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

We are completely out. We are at the verge of completion of the final accounts as of now.

Balkrushna Vaghasia — Axanoun Investment Management — Analyst

And the last question, what the amount madam said about regarding unbilled revenue for March ’22 and September ’22?

Hetal Patel — Chief Financial Officer

Yes. March ’22, it was INR128 crores. And as on 30 September, it is INR147 crores. And I already said that this mainly comprised of the two completed projects for which final builds are still pending for certification. And that is INR35 crores for Kashi and INR24 crores for Surat.

Balkrushna Vaghasia — Axanoun Investment Management — Analyst

Okay. Thank you. Thank you so much.

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Thank you.

Operator

Thank you. [Operator Instructions] We have our next question from the line of Abhishek Basumallick from Intelsense Capital. Please go ahead.

Abhishek Basumallick — Intelsense Capital — Analyst

Hi, sir. Can you give me some updates on how your precast facility is doing and what kind of benefits you are deriving out of it?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Precast facility, we already said that now we are getting — as and when we are doing one or the other projects, we are getting more and more inquiry from different types of structures. So first thing which we did on our own industry. Then we got an order of an industry within. And then we got six orders for making go-downs, warehouse and facility [Indecipherable] In terms of infrastructure also, L&T first gave us an order of about INR50 crores to INR60 crores for the making the substation infrastructure, which is required at the bullet train. And later, they gave us order of INR190 crores for making precast elements on the track of the bullet train. So yes, I can say that the —

Abhishek Basumallick — Intelsense Capital — Analyst

One roughly, it was about INR30 crores that was — the work was there. In Q2, can you give us some kind of numbers in terms of what happened?

Hetal Patel — Chief Financial Officer

Yes, it is around INR25 crores, INR20 crores to INR25 crores. But see, mainly, we are using proper L&T as precast sale, we are also using as a backward integration for certain other projects, some small quantities are transferred to other projects also. So if you look at precast going forward, it will be like — it will be a cost center, and we’ll be supplying the material to other sites also in addition to such L&T type of intra project that also will be part of precast use facility.

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

What is happening, one factory we are doing for — noodle factory we are doing at Sanand. Once we started the project, then [Indecipherable] understand the plant, and they come and visit the plant. They’ll convert some of the things into precast. So some of the things get converted from the — our original orders of capacity into precast to speed up the project. So those types of additions that will always be added within the projects. Suppose we are doing one project for [Indecipherable] compound wall was previously not precast. Now we are doing that for precast also. So such types of —

Abhishek Basumallick — Intelsense Capital — Analyst

So basically, in the precast, will we be getting increased margin going forward for our existing projects because we are using precast? Or is it that we will be able to deliver faster? What is the benefit? Because we’re putting so much capex, and I’m trying to understand what is the tangible benefit that we are getting out of it?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

You’re right. As far as the existing project is concerned, we try to use precast to speed up the project at times. But once this precast becomes the type of technology, which has been universally accepted once two or three projects are done completely. As I said, we have done one industry of our own factory, then we did one more factory. So looking to those factories, now we are getting orders for warehousing facility. We are also getting some of the orders of our industry, our projects which our industry is getting converted into precast. So it is both ways. Once the technology is accepted and we are doing for other person, that can improve our margins depending on the time line we have on the client side or you can speed up our project also if we did the requirement from client. And if it’s a specific requirement from client, that can improve our margin also.

Abhishek Basumallick — Intelsense Capital — Analyst

Okay. And sir, the last question that I have is, this quarter, you said we roughly added about INR1,500 crores of new orders. How much is fixed price in that and how much are like variable pricing? And because raw material prices are going down, should we expect higher margins going forward in the price content?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

I think major order which had [Indecipherable] mostly the private sector from Ahmedabad and near one in Gujarat. So almost all the projects are carrying price escalation or price pass through, except I think on the only quarter of Sports Complex, which will be as per RBI index.

Abhishek Basumallick — Intelsense Capital — Analyst

Thank you. Thanks a lot.

Operator

Thank you. We have our next question from the line of Jay Shah from Capital PMS. Please go ahead.

Jay Shah — Capital PMS — Analyst

Hello. Congratulations to the management for a good set of numbers. Sir, I wanted a general idea if you can give now that we have been elevated to the next level and we can bid for the project up to INR2,000 crores and above. What will the strategy of the management be going ahead? Will we now start bidding only for bigger projects or it will be a blended mix of smaller and medium projects also because maybe the completion time and realizations are sometimes better than the smaller projects also. So what would be the strategy of the management going ahead if you can throw some light?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

See, our strategy is still the same, where PSP is getting more and more appreciation in terms of order at the same time maintaining the bottom line also. So as we say private sector, where the competition from INR50 crores to INR200 crores is niche, where the last company do not want to participate, then we have a better range of as an organized contractor in and around Ahmedabad or in Gujarat. So up to INR200 crores, yes, our main segment shall be private sector.

And when we talk about government sector, there till INR500 crores. There is a huge competition between the local players. So beyond INR500 crores shall be the right target for PSP. Where the qualifying criterias are high and the competition is, again, because of the large companies like L&T, Shapoorji, Tata or NCC, these four or five companies getting qualified INR500 crores. So these will be the two areas which we should target, and we have been doing the same since last few years, and that should be the futuristic target also to maintain our — the top line and bottom line growth.

Jay Shah — Capital PMS — Analyst

Okay. And sir, second question was do the company plan to get into even the road construction because a lot of infra push is there on the road side also? So is there any strategy that —

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

No. We haven’t ever thought about going into any infrastructure projects. We’ll try to remain in this segment, either just in the building line probably as a contractual term, not even into developing business, nor into the infrastructure business.

Jay Shah — Capital PMS — Analyst

Okay, okay. Thank you. That’s all from my side. All the best for the future.

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Thank you.

Operator

Thank you.

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

I think we have [Indecipherable] your questions. Have any person to ask a question?

Operator

Yes, sir. We do have three.

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Okay. Still three?

Operator

All right, sir. We have a question from the line of Rushabh Shah from RBSA Investment Manager. Please go ahead.

Rushabh Shah — RBSA Investment Manager — Analyst

Hello?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Yes.

Rushabh Shah — RBSA Investment Manager — Analyst

Just want to understand from an industry perspective, next two, three years, since PSP has been historically have known to achieve various milestones and the current macro environment, can we assume that the best for PSP is yet to come? And if you can share some pointers what gives you that confidence, it would be very helpful. Thank you.

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

See, there are two things. Previously, we were known in the industry for civil and market types of images, then we have entered into, then we’ve entered to design build. So that’s the USP of PSP that each year we have grown to a scale where we are getting more and more opportunities of EPC and design build projects.

Secondly, after completion of the Surat Diamond Bourse, we have also got that enough confidence and capability to execute large projects. So that is also giving us a better benefit in terms of internal that we have completed that project in time with a specific requirement of quality on such a large project. So we’ll be able to execute a large project and capabilities are already grown within the company.

So these are the two things which we in future also, we have done some of the projects and still we are doing every year about INR50 crore to INR100 crore of interior. So any project from design build, civil, MEP and interior, these are the three lines where we can go ahead, and most of the clients now want to work with a single-point responsibility and we have a better edge that we are into all the three fields of construction, building construction.

Rushabh Shah — RBSA Investment Manager — Analyst

Okay, okay. Thank you.

Operator

Thank you. We have our next question from the line of Mahek Talati from YellowJersey Investment Advisors. Please go ahead. Hello, Mahek Talati. We’re not able to hear you.

Mahek Talati — YellowJersey Investment Advisors — Analyst

Hello?

Operator

Yes, please go ahead.

Mahek Talati — YellowJersey Investment Advisors — Analyst

So how much is the capacity utilization for the precast factory which we have?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

See presently on an average, the concrete quantity which we are executing is in the range of 80 to 90 cubic meters per day. It should be minimum — I would say on average, it should be between 150 to 200 cubic meters. So I think we can say presently it is 50%. But probably, once we enter into large size buildings, we will be able to achieve the 200 cubic meter per day.

Mahek Talati — YellowJersey Investment Advisors — Analyst

Okay. And that would translate into 90%, 95% kind of utilization?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Yes.

Mahek Talati — YellowJersey Investment Advisors — Analyst

And do we have any capex planned for this particular segment going forward?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Presently, we have already planned some of the capex as we have got order from L&T, which is only an infrastructure, the major facility is already ready. But there are a few things which we have to invest on the mold side, which is specifically requirement from L&T. So that will be the only capex which we’ll decide. Further for building, the facility is almost ready.

Mahek Talati — YellowJersey Investment Advisors — Analyst

And sir, with respect to Central Vista, initially like around three quarters back, we were quite bullish on getting some orders from there, and they are also announcing a couple of tenders. Now what has changed between then and now, apart from the fact that we got a bit delayed with the Surat Diamond Bourse execution because of COVID. But otherwise, has anything else changed in that particular respect?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

See, as far as Central Vista is concerned, yes, you are right. We have bidded at times for the PMO, the executive and claim. But at that time, we will be — we could not submit the certificate, which was required by the client. And then that certificate once we received, then after the tender was announced and at that time most of the new projects are starting. So we didn’t bid for that project. But yes, that was the only project announced of INR1,200 crores is I think almost eight to nine months. So no other project has been announced after overall this development, which is going on is earlier — we have reached about INR6,000 crores out of INR18,000 crores to INR20,000 crores. So probably, there must be some issue at that Central Vista level why they are not putting more and more tenders. So as far as PSP is concerned, nothing has changed. But that opportunity to bid for that project, large project have never been announced since last six to eight months.

Mahek Talati — YellowJersey Investment Advisors — Analyst

If they come up with a further announcement, do we plan to bid for that? Or have you moved on?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Again, because we have — this year, we have already reached INR1,800 crores of order book, and the target is not more than INR2,500 crore minimum. So if you get a better opportunity in and around and Ahmedabad or within Gujarat, probably our order book is more than what we have planned, we may not bid for those projects also. So it depends on the opportunity which we are getting within next three to four months.

Mahek Talati — YellowJersey Investment Advisors — Analyst

And sir, as you mentioned earlier that in the first two quarters, it’s not usual for any construction company to receive so much of orders, and we are already doing such good numbers. If we get a chance of getting more orders, will we accept them? Or will we stop after INR2,000 and INR2,500 crores if we get this year’s number?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

At least we should say that the target which we have set is about INR1,580 [Phonetic] crores. It can go up to INR3,000 crores or INR3,000-plus crores. That is more than for ourselves to stretch ourselves to the execution stage. So till INR3,000 crores, there is no point in saying no. But, yes, minimum target is INR2,500 crores, and maximum can be INR3,000 crores, INR3,200 crores, which is sufficient for the companies to manage as per the past experience what we have done.

Mahek Talati — YellowJersey Investment Advisors — Analyst

Okay. And sir, do we plan to take any orders from outside India as well, like previously, we have worked in the U.S. with the subsidiary. Do we plan to do that any time in future?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

No, we have no plans to go overseas.

Mahek Talati — YellowJersey Investment Advisors — Analyst

Okay, sir. Thank you so much.

Operator

Thank you. We’ll take our last question from the line of Jainam Shah from Equirus Private Limited. Please go ahead.

Jainam Shah — Equirus Private Limited — Analyst

Yes. Thanks for the opportunity. So just wanted to understand from the capex front, as we have received the order inflow of around INR1,800 crores, including L1 order and all these projects are about to start in the near to medium term. So any kind of incremental capex that we would be required to do apart from our regular capex for these kind of projects and further order inflow for this FY ’23 and ’24?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Yes. There is no planning of going for that capex. In general, we always end up at 3% to 4% of the revenue. So till now, we have not made any large capex within the six months. So that can be within the range of INR35 crores to INR40 crores, which is yet to come.

Jainam Shah — Equirus Private Limited — Analyst

Okay, sir. And sir, on the UP medical projects, as we have done around INR85 crore work during this particular quarter, around more than INR1,000 crores is yet pending. So what could be the run rate that we can expect for upcoming three to four quarters as our deadline would be nearing and our execution and our overall revenue target is also higher for upcoming quarters. So what could be the run rate from the UP project for upcoming quarters?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

So now what we are saying is next March onwards, our project should start completion depending on the status of the project at each medical college. So from March to August, even if you consider, so it is a journey of about two quarters this year and next one or 1.5 quarter next year. So we should be in the position to maintain our INR250 crores to reach to this INR1,000 crores achievement which we want.

Jainam Shah — Equirus Private Limited — Analyst

Okay, okay, sir. That’s it from my side. Thank you, sir.

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Thank you.

Operator

Sir, there are no more questions. I would now like to hand over the call to management for closing comments.

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Once again, thank you, everyone, for joining us and your continued support and trust on us. We hope that we have been able to address most of your queries. In case of further queries, you may reach out to our Investor Relation adviser, E&Y, and they will connect with you offline. Thank you, Prem, for hosting our call. Wishing you all a happy Diwali. Enjoy the festival. [Indecipherable] Thank you and God bless you.

Hetal Patel — Chief Financial Officer

Thank you, everyone.

Operator

[Operator Closing Remarks]