Q1 21/22

Aug 12, 2021

Ladies and gentlemen, good day and welcome to GMM Fortler Limited Q1 FY 'twenty two Earnings Conference Call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Please note that this conference is being recorded. I now hand the conference over to Ms. Priyanka Raga from GMM Fotla Limited. Thank you. And over to you, ma'am. Thank you, Pajal. Good morning, afternoon and evening, ladies and gentlemen. A very warm welcome to all of you into the Q1 FY 'twenty two earnings call of JMS Polygon Limited. On this call, we will be referring to the earnings presentation that has been uploaded on the Stock Exchange and also available on our website. Hope all of you have a chance to go through the same. Before we begin, I would like to mention that some of the statements made in today's discussion may be forward looking in nature and may involve risks and uncertainties. Please note the disclaimer mentioning these risks is on Slide number 2 of the presentation that was shared earlier during the day. From the management, we have with us our Managing Director, Mr. Sara Sakel Thank you, Priyanka, and good evening to all the participants. Let me just quickly take you through the presentation and give you an overview of both the India as well as the international business. So the India business has shown tremendous resilience. We've had a strong improvement in both revenue and profitability. Our order intake across all verticals remain very strong, especially driven by heavy engineering where we've had significant inroads made into the oil and gas and petrochemical segment as well. We've also been very pleased with the Fortran International business. The turnaround is happening much before expectation. This is being driven by the turnaround in both Germany and China. Our Mavaz business continues to outperform. The current backlog at Mavaz is close to about CHF38 1,000,000 Swiss francs. So significantly higher than what it used to be and significant amount of order intake. In terms of the integration process, we are now continuing to expand the overall integration process to our internal team. We are now working with the local geographies and local offices to extend the operation excellence, the cross selling and the low cost sourcing model so as to increase market share and profitability. I'm happy to report as well that you will see now some of the impact of the synergies coming into our bottom line as well. We are very happy also with the order intake which shows and gives us good visibility for this financial year. Our outlook for this year remains very positive, not only in India but also globally. Most of the forward facilities are now booked and now we are looking at adding CapEx in certain areas so that would free up some capacity. We believe that the chemical and pharmaceutical market in the geographies in Europe and in the U. S, especially we'll continue to invest and we see a lot of global growth coming from there. We are currently now running both Karamstad and Hyderabad at full capacity. The Vatra facility is kind of operational. We are 2 days operational and we expect 2 more days to come online shortly. We ordered 2 new furnaces, 1 for Hyderabad and 1 for Gujarat. And we now believe that that will also help us pick up some capacity and kind of have more capacity. Like I mentioned to you, we got a significantly large order from LNG close to more than INR100 crores worth of heavy engineering business from LNG for the oil and gas and petrochemical segment. So that puts us in a very good position for heavy engineering and rating of all this order comes perfectly in time so that the Basma facility which we have acquired, the new order will be manufactured there. We've also been rated by ICRA facility of Moody as AA- stable A1 plus Just to give you a quick update on the numbers. In India, the revenue grew by 31%, INR130 crores to INR171 crores this quarter and EBITDA is up 80% to INR 24.3 crores to INR 43.7 crores. The order intake has improved significantly, up by about 120%. So the order intake during this quarter was close to INR 2.90 crores. The current backlog compared to previous year same time has increased by 60% to be over 500 crores of our backlog currently on our books here in India, like I mentioned to you, gives us great visibility for the future. A quick update on the international business. Forte International has shown improvement growth in revenue, profitability and order intake. Germany and interest team are stronger and improved profitability and robust order book. Germany, obviously, the facility there has gone from loss making to positive, close to $1,000,000 of EBITDA. So that is a significant improvement there. Nabard's business, like I mentioned, has significantly outperformed. We recently received an order for 8,000,000 to 5,000,000 in Nabard 50, taking their tax loss of CHF38.5 million. Please bear in mind that this company's revenue last year was CHF15 million, so it has maybe double of its revenues already in their backlog. NORWAG, Italy, UK, Penelop also on track. We're seeing a strong recovery in the U. S. And we are now in the process of adding some capacity in Brazil so that we can cater the growing U. S. Market. China also has come around and has made a good start this quarter and has turned profitable. Again, price improvement and execution is the focus there. And then we also now have a commercial strategy in place so that we want to increase market share. So international results, if we compare I mean, obviously, we can't compare both Q1 with Q1 of this financial year. But looking at pro form a numbers, there's a 23% improvement in revenue, 29% improvement in EBITDA, other intake is up by 37% and positive impact. In terms of consolidated results, again, not including the PPA impact, which I'll speak about in a little while, the revenue is up 2 57%, EBITDA up 80%, order intake is up 3 78% and then order backlog up 3 40%. Again, not right to compare Q1 and Q1 because last year we didn't have modular of our business and this year we do, but still it goes to show that there's improvement in all our trucks. In terms of the income statement, so like I mentioned to you, Indian standalone is INR171 crores with about INR43.7 crores of EBITDA, which comes to about 26% as a percentage of revenue. For the standalone is about INR 408 crores of revenue with about INR 40.6 crores of EBITDA, which is about a 10% EBITDA margin. So significantly higher than what we have guided towards. And obviously, the final impact of TPA, which is minus INR 46.5 crores. So if you look at it, with INR 43.7 crores of EBITDA coming from GMM, standalone, plus RMB 40.6 crores coming from Cordiller, which gives you about RMB 84 crores minus RMB 46.5 crores, which is the PPA impact. Again, it's a noncash impact. It's an accounting NP In the past quarter, that this PPA impact will reflect in our book. For next quarter, we will not have any further PPA impact, so you can straightaway add this number back. There are some intercompany eliminations, and hence, we get a total of INR551 crores of revenue and about the EBITDA of about INR35.9 crores, which is about 7%. And then obviously, PVC and PAC are negative, and that's mainly because of the impact of PPA. Again, non cash does not affect our cash flow. And for the next quarter, again, it won't be there. Just a quick update on integration efforts as well. We've made a good amount of inroads, both in terms of operational excellence, value sourcing and cross selling. We are in the process of launching some products here in India. Similarly, we've used the partner network to sell Indian made products into European, U. S. And Southeast Asian markets. We are also looking at implementing some of the manufacturing accident projects that we have had here in India to more resilient results. So all in all, we are quite happy with the performance, especially of the international business, which has turned around quicker than expected. And with the backlog that we have in hand, we expect this year to build on the momentum and really come out with a good performance this year. India obviously remains very strong, and we will build on India performance. And now with the new capacity coming in, the new VASA plants also coming online, we expect the India growth story to also to continue. So with that, I don't have any more points that I would like to make and we will then open it to Q and A and answer any of the questions that you may have. So thank you very much. Thank you very much. We will now begin the question and answer session. The first question is from the line of Amandip Singh from Ambit Capital. Please go ahead. Thanks for the opportunity. Bharat, firstly on the domestic business, we saw a sequential decline of 10% and you mentioned that it would be largely led by the COVID impact. But can you help us understand how would be the segment wise revenue stack up during the quarter between Glassland HE and PP for the standalone business? And how does this compare with the last quarter? [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] Sure. So I would just kind of caution you, the manufacturing company, Q4 is always a very big quarter for all company, Q4 is always a very big quarter for all manufacturing companies. So it will be kind of unfair to compare Q4 with Q1. But in any case, yes, there is a slight decline because of COVID. But anyway, Q1s are always a little bit lower. In terms of the breakup, I think Manish can provide that. I think we've stopped we are now doing more technology systems and services from a breakup standpoint. And that is getting in line with the international business that we wanted to cater to. The presentation that has the segment we told you, which talks about technology systems and services. On a standalone basis, 91% of our revenue came from technology business. So technology, again, just to clear your mind, it's basically any equipment that we manufacture. So all our F and D, glass line, everything is going to technology. After sales is obviously the services part of the business, spare parts. And then the systems, any time we combine these into a large kind of a complete unit. Sure, Tara. I got that point. But this breakout would be helpful if possible. Secondly, you mentioned about order backlog of PHF 38,500,000 at Mahwak. So can you help us understand the delivery time line for this? How would this impact the domestic TP segment given the outsourcing? Right. So I think most of our TP segments here are now geared up for the capacity that we now send to Mubad. And obviously, Mubad has been successful because they have a low cost source here in India, which makes them much more competitive in the European and U. S. Market. But obviously, this number of 38.5 is significantly higher than anything that they could do in Switzerland. So we have 2 thought process this year. 1 is we're going to have to free up some capacity in Kalantan by moving some of the PPMs to Batwa because Batwa, we have 7 shares, right? And we're now going to use all 7 in the short term. So some production will move there. We will then have more space available for Mahwad related work here in India. And what we're planning to also do, Amuniv, is we're going to use the U. S. Now. U. S. The Rochester Fondla facility is also kind of large and we will use that to finish some of this filtration drying work for Nagar and we will use that to kind of create some capacity as well. So it's a 2 pronged approach and obviously we want to kind of increase the throughput. If we have such a strong backlog, it's important that we kind of work as much as possible to make sure that we can kind of bring it down as soon as possible. So, Tarak, that was really helpful. And one more if I could squeeze in. So in the previous phone call, you mentioned about coming back with the updated guidance given the few acquisition including IPO taken place. So any update on that? So I think we are still sometime away from that postponement of the strategy and long term strategy around that. So give us probably a couple of new quarters and then we will be able to. But your question was more again, Amit, we are not quite right? Yes. I mean, so on the FY 'twenty four, the consolidated guidance which I guess you had mentioned and given the better than expected turnaround happening and also including the Batwa facility, any updated numbers on that or we can wait a couple of quarters for that? Yes. So, Batwal, to be honest with you, we started out much quicker than expected. I was actually planning it in maybe Q2 or early Q3. But because of the large orders that have come in, we need to ramp up and have the capacity available immediately, and that's why we've done that. But I think from a guidance standpoint, let's see 2 qualities. This is the 1st quarter that we're consolidating fully. Next quarter, the PB and I also put the way to look at a true idea in terms of what the numbers are. I think then maybe 6 months, I mean maybe 6 months in this calendar year, we'll try and look at maybe if there is any requirement and how we are tracking towards the final for the performance. We'll try and give you some kind of update on The next question is from the line of Daval Shah from Giri Capital. Please go ahead. Hello. Yes, I have a question with regards to the opportunity size, which you have mentioned in the annual report. The domestic opportunities are coming to around INR 74,000 crore over FY 2020 to 2023. So and we did around INR640 crore of revenue last year in the starting year. So how should we understand that how will this convert for us in terms of our top line over the next 2 to 3 year period? P. Vijay Kumar:] So I would the calculation that we normally will use is we continue to grow our estimate of the rate that we have been. Luckily for us, the dark line industry itself has been growing at a good pace. With the investments coming in, in agrochemicals, specialty chemicals and pharmaceutical, we believe that this market will expand. So we have a bigger market to kind of participate in. And currently, we have market share growth to 50%, if not more. So that's some rule that you can take. Having said that, we've also kind of entered into new markets such as oil and gas, the prochemicals which are growing at much faster rates and also much, much bigger, right? So even a small kind of size there in taking maybe a few big orders, it's only INR300 crores of the order intake. So I think you can as a rule of thumb, India will continue to grow at a similar rate for the next 3 years that we have been enjoying for the last few years. But I think that's what you can hope for. And I think the markets are there. The investment will continue. From what we have seen, the pipelines and the kind of inquiries that we have on hand, we don't believe that either of these segments will slow down in the foreseeable future. Got it. So this would include the PLLI led opportunity or is it excluding this? No. So we're not really factor that in. If that comes in, obviously that's a bonus. Whatever government policy for changes that will happen that will promote further manufacturing here in India or more investment of a government policy for changes that will happen that will promote further manufacturing here in India or more investment companies, that would be just bonus on top of what we are currently calculating. And obviously, being bullish, that's why we've kind of acquired a new factory so to free up capacity in Karamstad and then adding 2 new furnaces. So I don't see any reason why there should be any kind of slowdown in terms of growth when it comes to G and A for the standalone. Got it. Got it. And sir, if I can ask one more question. Now this is with regards to the expansion and the opportunity which we see in the Western markets, you mentioned the Europe and the U. S. Now where our the product configuration will be premium to what we are selling in India with regard to like the CINA portfolio which we'll be selling here? Would that have some sort of premium edge to it? See, in terms of the vehicle equipment is very similar. The glass that we use here in India is the same as the glass they use there. Obviously, there could be more beds and whistles. Their equipment might be more sophisticated compared to what an Indian buyer would buy, but that's the only difference. I mean, there's nothing that we cannot manufacture here that they are manufacturing. So that's the only difference. They do have some kind of smaller technology in different glasses that we don't make here in India, but we can import it as kind of coated over here. But otherwise, there's no real change in terms of so that's why the idea of using India as a no cost source. And maybe this is a good time to talk about some of the successes that we've had. We had a certain order in Spain. We had a certain order in Russia where the customer would not have bought some order because of the price point. So now having access to India for you was able to sell Indian made equipment in these geographies and get market share and at good pricing as well. And similarly, we are currently working on a very large project in the U. S. As well that we believe that the Indian made equipment will be a right solution for the customer there. Thank you. Mr. Shah, may we request that you return to the question queue for follow-up questions. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants at the conference, please limit your questions to 2 per participant. The next question is from the line of Sandeep Gulshyan from GM Financial. Please go ahead. So the first question is pertaining to the margin of stable nonin levels in Forber International as per your earlier guidance of that FY 'twenty four, 16% console given that calculation of roughly around 12% to 13% margins, however, you delivered 9.5% in the current quarter, which has come in earlier than what you were expecting. So would you think that these 12%, 13% margins can be further exceeded over a 3 year period? Or were you still maintaining similar guidance for international business margins? Yes, Sandeep, I think this is the 1st full quarter for Cordiller International and probably a bit too early to see that this 9.5%, 10% EBITDA margins are more sustainable. I think we need to test this number for another 2, 3 quarters and then probably. So but I think, Sandeep, I think we'll just jump in here and kind of add. If these orders were a problem, we would have been a little bit more conservative. But the good thing is that order is already indexed. We don't we are not scrambling for orders. Now the focus really shifts to execution and if we can get the momentum going in the execution, there's no reason why these numbers are not only sustainable because they're maybe even probably improveable. Maybe Alex can jump in and kind of give you a little bit of color on the international business and what you expect the margin profile to be. Yes, happy to do so. Thanks, Karl. And hello, everyone. In fact, we are really happy with the performance of international investments. And in fact, you're right, and we are doing better than what we've guided for before. From the margin perspective, this is especially driven by the faster turnaround of the German business and also other improvement measures, and we already see the results earlier. So the margin definitely went up. And also in the future, we see under the COVID crisis in February restrictions. Nevertheless, if this not comes more or less to the end, we also see there another push to the margins and other improvement potential. So we are really happy with the performance year to date and also positive for the outlook. Got it. And second question is on pertaining to, you mentioned in last conference call that there is a particular company where you want to make a mark where low cost products are more acceptable and Saga does not have a share there. If you can update on that? And also if you can kindly give us the CapEx guidance for this year. Those are my last question. Right. So on the markets where cordless is not very strong, Spanish market comes from even Russian market, Southeast Asia are areas that definitely India can be leveraged, and we are leveraging India already. China, obviously, there is a good potential there to improve the Chinese business as well. We have now packaged has doubled the capacity. So we believe that China is going to be a growth area for us. So these are the kind of low hanging fruit that we have. In terms of CapEx, there is a new furnace that we'll be adding in Brazil of about $400,000 There is a good backlog now in the U. S. And Brazil need to ramp up because Brazil is the low cost for the U. S. Market and the U. S. Market is now investing. In India, like I mentioned to you, we've already approved 2 CapExes for 2 new furnaces, 1 in Karamstad and 1 in Hyderabad, which was done last board meeting. And besides that, we have no other significant CapEx plan. So I think this has put us in a strong position. And then obviously, moving the HE business out from Karankar gives us that additional capacity in last line in Karankar. Thank you. Thank you. Mr. Tushkin, maybe request that you attend to your question queue for follow-up questions. Thank you. The next question is from the line of Utsav Mehta from Edelweiss, AMC. Please go ahead. Hi, good evening, Bharat, and thanks for taking my question. Could you just give some sense on the operating cash flows that you've done in this quarter and where the working capital at a consolidated basis would be? P. Vijay Kumar:] Yes. So cash flows have been consistent and very healthy. Also, there's some investment in regard to inventory due to the 1, due to the higher backlog that we have, order backlog and also we need to safeguard that based on a back to back basis for the procurement of the scheme prices. And like Darik mentioned earlier, this cash expense of INR46.5 point 5 crores of PPA impact also get into the cash flow for us. So they are pretty much comfortable. So of course in next quarter we will probably be sharing the cash flow going forward. From a debt EBITDA perspective, so we have a debt equity ratio of 1 and the net debt to EBITDA on a consolidated basis as well is at 1. So we are on and on at June 8, very, very comfortable from a cash flow perspective. Okay. Could I just request the gross debt number? And second part of my question, Tarek, this is the 2nd quarter in a running that the standalone business is done close to 25% or 25% -plus margins. Do you believe that this sort of a number is sustainable? Or is there some element of benefits of raw material prices or inventory gains baked into this and therefore it should be about 20%, 21% back again? I don't think so. I think that we can sustain these margins on 2 or 3 fronts. One is that we will add a significant amount of export business now that we are part of the Fort Bend network and we are leveraging India. So we will be doing probably close to maybe 17%, 18%, 20% of export business every year. That will definitely help the margin profile. Like I mentioned to you, we've also kind of going to ramp up our intercompany business. So the stuff that we will send to mobile because of the backlog will kind of increase as well. And then with the Vatra facility and the large flow through of orders going through that, I'm sure there will be some absorption as well. So I'm not too fast about possibly numbers for this year. And in the glass, market, it's pretty easy to pass on these price increases to our customers because they buy raw materials all the time. Glassman is not the only equipment to buy, they buy exchangers, they buy heat exchangers. So they take those metal prices into account when they kind of budget their expenditure. So all in all, I believe that we can sustain these margins for the financial year. Yes. And on the debt perspective, your question, Usman, the gross debt debt is at $73,000,000 cash in hand is $30,000,000 so net debt turns out to be at $43,000,000 on a global basis. Wonderful, gentlemen. Thank you so much, sir. Thank you. Thank you. The next question is from the line of Javed Barak from Sidoti Securities and Finance. Please go ahead. Hi, sir. Great commentary. I just had a clarification question on the CPA. For next quarter, the entire 65 crores is going to be So, 46 goes off on the CAG side for the next quarter onwards. So it was INR92.46 in previous quarter, INR26 in the next quarter in this quarter that is Q1. So that is off. The amortization of intangibles, which is at INR18.8 crores this quarter, weekly INR17.87 next quarter and thereafter equity INR6 crores per quarter for Q3 and Q4 and Thank you. The next question is from the line of Shanti Patel from Shanti Patel Investments. Please go ahead. Sir, my question is taking into consideration all these factors, what will be the return on capital employed and return on equity as on 31st March 2022? [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] So currently, we can kindly appreciate that future guidance, we will not be able to share with you. But currently, we are running at a ROCE of 16%. Yes, but we have got mononets monopoly type of products, correct? The quantification is not that much. Then return on capital and return on equity should be much, much higher than what it is. So this is the so from a margin standpoint, I think we have been running at 25 plus percent on a domestic market. And now international business is there, which does lower our percentage per se, but then it gives us more in dollars than in the absolute terms. So we need to appreciate from that perspective that from a percentage perspective, it may go down on a global basis. But in absolute terms, it's going to be nearly double in coming quarters. Sir, Rajvind, repeat. You put return on equity is 15% or return on capital? Return on capital employed is 15%. And return on equity? Whichever on equity, I will have to check. I'll come back to you on that. But in terms of coming back to our numbers, pre acquisition numbers we have targeted, it can be a 3 year period by where the ROE and ROCEs will come back to those numbers. Obviously, there will be a little bit drop in these numbers because of the acquisition, but a little bit of downturn, but in the end of the day, we're changing the guidance here of the company. So that should be one thing that we should be able to Thank you. Mr. Patel, may request actually return to the question queue for follow-up questions. Thank you. The next question is from the line of Srini Vas from Rockford Consultancy. Please go ahead. Good evening, sir. In the PPT presentation, the Page number 13, the tax is INR 18.1 crores. Can you repeat? INR 181,000,000 and the tax is RMB118,000,000. Right. So would you like to jump into that? This is basically the additional tax provision that we have to make in this quarter in probably U. S. In regard to the amortization. Do you want me to explain that? No, no. Before tax, the tax amount on RMB181 crore, tax cannot be such a high. No, I agree that this is the deferred tax amount on 181 PBT. You are seeing a tax impact of 1.18, which is considerably higher with the percentages of average 25%. But that is where I'm saying we had an additional tax impact on account of deferred taxation due to the timing differences. And that's why I just wanted Alex, you would like to explain this further on the probably from the USP and maybe on the amortization of the intangible expenses, timing differences? So next question, I think that provision will not be discussed. On a On a consistent basis, sir, the tax impact would be approximately 25%. Okay. But in this quarter, it is more? In this quarter, it is more on an individual in a country basis in U. S. There was some additional tax calculation difference due to the timing difference of the intangible amortization. Okay. And my second question is, Karan just mentioned that we have ordered 2 new furnaces, 1 for Karank and 1 for Hyderabad. When do you envisage the commissioning of the furnaces? So Hyderabad permit issued commission by Q4. So we should see payment in Q4 output in Hyderabad. And most likely, Karamstad will be for Q1 of next year. Okay. Thank you. Thank you. Thank you. Thank you. The next question is from the line of Amar Maurya from AlphaCredit Advisors. Please go ahead. Couple of bookkeeping questions. I don't know whether you would be able to share that. So what would be the India, Jaztime revenue this quarter? So like we mentioned earlier that we need to change the segment that we have been reviewing because Swadler has been reviewing monitoring technology systems and services, while Indian entity has been reviewing basically the glass dining, heavy engineering and the PP divisions. So we have decided that going forward, we should be reviewing basic technology systems and services. Services being the aftermarket business gives us separate monitoring to give us the focus as well, which is the high margin area, which you will see in slide number 14, the international business has got a substantial share, but the standalone business does not have that share. So that's the piece that we want to enhance. So 91% of technology services, which is 15% of percent of the time frame basis in the segmental breakdown. And going forward, we intend to monitor the same segments. Okay. The result of these of you, maybe to help you transition to this new segmental data, we have given the FY 2021 business segment detail application on page number 18 or slide number 18, where we have given our FY21 revenue data, Okay. But going forward now, this is the new standard which we'll be following, right? Absolutely, yes. And sir, what would be the order book for Mahwak? Order book, as mentioned, currently at this point of time in August end, mid August, we are at 38.5 million CHF. CHF. Yes. CHF. Yes. CHF.38.5 billion, right? CHF.38.5 million. CHF. CHF. Okay. So that is by 70, whatever if you do, 70, 80, about 240 crores. Okay. And sir, like about the capacity expansion, I believe Hyderabad says that 400 to 500 GL capacity will be operational by Q4, right? Sorry, can you please repeat? Asim, as the Hyderabad capacity expansion, when it will be commissioned? It will be commissioned in Q4, right? As per the And that's what we were really waiting for to really see if they can ramp up to a specific momentum and then we can add more capacity. So we have done that quite well. We've already broken all the records that the last company has kind of done there in terms of monthly outsold number of units revenue. And by the time this new facility and new permit comes in by the end of this calendar year, we would then have ramped up of our fabrication capacity so that we can then have the additional output as well. Thank you. Mr. Mory, you may be request that you return to the question queue for follow-up questions. Sir, two questions. Firstly, the employee cost in the Indian operations have increased on our wireline basis from 15 to almost 20 crores. Is it because of the Wadhwa facility? So there are 2 reasons for that. Yes, one, based on the amount of Wazalore facility, we have to hire upscale on the employee strength, A. And B, as we would expect, we have the annual appraisal cycle going up. So March was the rate build. So that's the second reason. Okay. Secondly, on a sustainable basis, what kind of tax rate can we see in the formula business? So currently, you said that because of U. S, it's a bit higher because of intangible assets and amortization. 25.7 percent, you indicated 26% 26% for the Fodlar business, correct? Forlough International, yes Forlough. Okay. And Tara, one question for you. So currently, the business is going fantastically for Forloughing with the whole order ramp up and everything. So how do we see the business turning out in the next 3 years? Can we say that at least it can grow 50%? [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] So I mean I don't like to commit on numbers right now. We're still kind of getting the hang of this business, understanding the business, kind of getting the momentum going. But I would just point to what we have done with Mahwag, right? When we bought Mahwag, it was a $5,000,000 $6,000,000 company in terms of revenue. Today, it's closer to $20,000,000 and can ramp up to $25,000,000 So that growth 3 times, 4 times, right? I think if we have the right strategy in place in terms of using and leveraging low cost countries, which we are doing already, We are looking to add and grow products that are profitable in our technology base, which we are doing. And if you look at really improving the production on the site because like I mentioned to you, the orders are there. We are not worried about orders at all. This is really a good situation for this company to be in because the last thing you want to take over a company and then worry and scramble about scramble for orders at low prices and low margins. That's not the case for us. We have a lot of backlog across all geographies. The pricing and the margin profile all look very good. So really the focus across all factories is really to get the momentum of manufacturing going and really push out as much product as possible. If you can do that, I believe that this year you will see good amount of improvement. And we'll be obviously conservative and we are seeing things turn around much quicker than expected. But I believe that there's a lot more that we can expect from this company. There are a lot more synergies. And I'm personally very pleased in the way things are going. I think things can be looked a lot better. Thank you, Mr. Mura. Maybe we request that you return to the question queue for follow-up questions. The next question is from the line of Rupesh Rao from Rupeshi. Yes. Hi. Just one for Manish. So what would be the net debt sitting in order? Net debt, global basis, we said the No, I just want the order. I just want the order. It's IN 350 crores. That's not yet, no? Yes, that's gross, yes. 348. So 148 crores. Yes, 148 crores. So 148 is the debt sitting in Fodlar. And can you then can you just share what is the net debt with GMS plus Mawa? GMS plus Mahwad, we are at 1 100 and 60 plus 48 to be 1 100 and 80, yes, 1 100 and 70 crores. That's okay. That GMM plus Mahwad debt and $148,000,000 is an $8,000,000 as follows. Thanks. Thanks a lot. Appreciate it. Thank you. The next question is from the line of Sandeep Tulshyan from GM Financial. Please go ahead. Yes. Thank you for taking up the solid question. Two questions from my side. One is the order book that you are sharing. I just want to check whether this constitutes only the technology fees or does this also constitute the services fees also? It has all orders. Obviously, it will be heavy on equipment because the services have much shorter decline than there is this in the scope of booking more. But currently, the orders that we are currently maintaining and the group that we are currently maintaining and the group concerned order number is, what, RMB1200 odd crores, right? Yes, RMB 1700 odd crores at the end of Q1 FY 'twenty two. That is the group level order backlog. All right. And second question was pertaining to this Vatva facility. I mean the company that was operating this plant prior to you did peak earnings as high as INR898 crores. So should that be the number that we should consider as peak output that we specifically can deliver once 7 or 7 days of operation? So, I mean, this is only a plant being acquired. So they may have other plants as well, so that number may be something different. But like I think I had mentioned earlier that something like 450 or 500 crores of turnover is something what we can expect in the long run from Dazalore facility. HDUP did 180 or 185 at their peak. But that was 5 years ago when the metal prices were literally less than half of the current revenues. The next question is from the line of Mitesh Meena, a dividend investor. The next question is from the line of Lee Surendra, Individual Investor. Please go ahead. So we have taken control of the Vatwa plant a few months ago. We now have a team of people there. We have contractors in place. We have also moved some of our orders from Kalamsar to Wadhwa. So manufacturing has started in full swing there. And over the next few months, you will see more orders coming in to Vazalore and we will be using the Vazalore facility to manufacture more heavy engineering improvement. B. Balaji:] And what is your question? What is your revenue in the mix on business in this quarter? Like we mentioned, we have talked to monitoring on basis the earlier segment. So we may be talking about technology systems and services again. And like Priyanka mentioned earlier, to help the transition, there is a slide number 18 in place to get to those new numbers or new segment. But having said that, I think all our product lines are have a strong order backlog. 1 is not heavier than the other. That's why we've been able to maintain our profitability as well. So across the board, we are booked now in mix beyond in proprietary and heavy engineering and in glass line. And that's why we've been able to sustain our profitability. Thank you, sir. Thank you. Thank you. Ladies and gentlemen, that was the last question. I now hand the conference over to the management for closing comments. So as I mentioned earlier, yes, the business looks very promising. The India business obviously continues to do very well, double digit growth and we have a very positive outlook for this financial year. With the new investments coming in, I think that puts us in a good position for next year as well. So the focus will be obviously on execution, but also kind of building a backlog for the next financial year. Globally also, like I mentioned, very happy and pleased with the turnaround much quicker than expected. I think that will give a big boost to many of the people who are wondering how the Forte International business will perform. And I think the only way now is obviously up. I think with the kind of synergy that we are going to work on that we are building in place, I think that we have a bright future ahead of us. And obviously, you'll see some of this kind of flowing through in the next few quarters, which will give you a much better idea in terms of how the businesses are performing. So I do appreciate your time, and thank you for logging on. And look forward to talking to you again next quarter. Thank you very much. Thank you. Thank you. Ladies and gentlemen, on behalf of GM and Fotner Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.