Q1 18/19

Aug 1, 2018

Quarterly report

Ladies and gentlemen, good day, and welcome to the Traveini Turbines Limited Q1 FY19 earning conference call. As a reminder, all participant lines will be in the listen only mode. Please note that this conference is being recorded. I would now like to hand the conference over to Mr. Rishabharal from CCR India. Thank you, and over to you, sir. Thank you. Good day, everyone, and a warm welcome to all of you participating in the Q1 FY2019 earnings call puts remaining turbine limited. We have with us today on the call, Mr. Dhruv Soni, Chairman and Managing Director and Mr. Nikhil Soni, Vice Chairman And Managing Director, along with other members of the senior management team. Before we begin, I would like to mention that some statements made in today's discussion may be forward looking in nature and a statement to this effect has been included in the invite, which has been mailed to everybody earlier. I would also like to emphasize that while this call is open to all invitees, it may not be broadcasted or reproduced in any form or manner. We will start this call with opening remarks from the management following which we will have an interactive question and answer session. I now invite Mr. Drew Soni to share some perspective with you with regard to the operations and outlook for the business over to you, sir. Thank you, Gavin. Welcome everyone to the Q1 conference call. And I'd like to take you through our results for the for the 1st 3 months. I think the main thing is that we've had an all time high turnover in the first quarter. Besides which, we have a net income from operational growth at 1,720,000,000 of 41% and a VAT of $190,000,000, which drove the shown a growth of 48%. Importantly, for the future, we've had a strong order intake by 11% growth over Q1 of last year. In that, the domestic order booking has grown by 43%. And I'll come to this a little later. But all in all, we have a strong outstanding order book at SEK 7,800,000,000. EPS is 0.58 per share The domestic market under 30 megawatt has shown signs of revival and some bulk orders I've got finalized and this is what has spurred our growth by 43% inquiries are also improved active inquiries from segments such as Sugar cement, steel, and even a little bit in waste to energy. Now in the international market, it is a little lumpy. So while we have seen an increase of inquiries of 12% in the international market, from the Q1 versus last year, the order bookings, many of which have got postponed to the Q2, are we are in the end of July, starting August. So we are confident that in H1, international order bookings for the first half of the current year, will be as per our budget and very good versus last year. We have the mix of order bookings in Q1 has gone up towards the domestic side, but this will again get corrected in H1 with our improved order booking, some of which has already happened in the month of July. The aftermarket segment has performed very well with the growth of 44% over Q1 last year. And in terms of order booking, which is crucial. We have seen a growth of 32% versus last year. The encouraging fact is that the export market in after sales has now started showing a fair amount of traction. And so we have an outstanding aftermarket order book of 65%. This is the effort that we put into our offices overseas and having salespeople and service people traveling a lot and it's slowly coming apart. The 2nd major thing in the international market, besides being lumpy for 1 quarter to another is that we have succeeded in diversifying our geographical spread and also our spread in the promised categories. So what happens in one market gets compensated in another market in a half yearly basis, and also gets compensated from one sector to another sector in a particular market. The dedicated team that we have in research and development has started bearing fruit because the number of new models that we have introduced have allowed us to cater to new segments and new geographical areas which we hadn't done for the past 2 years. This has also helped us in remaining more cost competitive. As you know, in the international market, the power sector has not been doing very well, but So many turbines is fortunate that our sector in the export market is mainly concerned with waste to energy biomass, which is the growing renewable sector and some process industries. So we when you look at the broad crusher, what's happening in the in the power market, especially the very large power market. It doesn't apply to our spread. I will be commenting on our joint venture gs of any, you know, in a minute, but I'm wanting to concentrate this on the under 30 megawatts segment. Our new generation Blaze profile, which had been under development, and now that we have been have been put into operation. And I see it is building up in a very consistent manner. In the domestic market, the spreads that we have in sugarco Generation method and process cogeneration is good, and we are able to cater to what is the customer requirement in this area. Coming to our joint venture, G. It's remaining limited. The overall performance has been better than the year before. And JV were able to book orders for 305,000,000 during this period. The orders on hand and the entire pipeline from the international market is encouraging. We are looking at good bookings in Q2 and Q3. We're not waiting till the last quarter of the current year. But those are very active, some of which are getting postponed because of the economic conditions overseas, but are spread here again in geographical territories. Is good. We're looking at Southeast Asia and we're looking at some parts of Europe. The increased order book from the exports at our aftermarket business and having a strong forward looking order book and a very good inquiry pipeline makes one belief that we will have a much stronger year in terms of both revenue and margin and bottom line. This will be clear much better in our H1, but we are seeing visibility of this because of the strong orders on hand. So this is a situation different from where we were 3 months ago. The evenly spreading of order booking in various markets is the main takeaway that I'd like to tell you which gives the confidence of going forward in the years to come. We have also looked at our R and D efforts, are looking at new products which we hope to introduce in the years to come. And further feedback that we've got from customers, they're changing on to value engineering and cost improvements for the current short term. There's no reason why they will not be as successful as we have been. In the development we did in the last 12 months, which has started bearing fruit in the margin improvement which we will have in the current year versus last year. Our margins, which we feel are are better. They have come from a spread of our orders in different geographical territories. A better overhead absorption. And there's a mix of products in terms of the various geographical sectors that we cater for. So that is where we have in our orders on hand, and that is why we are able to give the confidence in the projections of the current year. More importantly, this order inquiry pipeline, which brings us to 1920 is also following the same mix and the same format. So I think where we had concentrated on various geographies, and content sharing export device on biomass, waste to energy, and targeted process cogen is paying off because these are not seeing the same downturn in terms of market that has happened in other power sectors. I'd like to now open the questions to the floor, but just to end by saying that today I'm standing here in a much better optimistic position, having had this audible and the spread of geographies than possibly was there 3, 4 months ago. Thank you. Thank you very Ladies and gentlemen, we will wait for a moment while the question We take the first question from the line of Ravi Swaminathan from Spark Capital. Please go ahead. Hi, sir. My first question is with respect to the domestic market. You had mentioned in your press release that you are seeing some kind of an inquiry update. So just wanted to get a sense from you as to what was the market size last year in the 0 to 30 Megawatt what it is currently and what would be possibly in that, by the end of this year. And, do you see this kind of, inquiry generation such the next few quarters also because there's a general general election also which is coming up. So could that hamper, the, inflow in the second half? So that is my first question. Yes. Well, you know, the market, if we look at Q1 last year versus Q1 this year, it's, you know, from 100 and 25 to 300, but let's not go on that huge percentage increase. The domestic market has picked up. My thoughts on the following quarters is definite improvement over last year of last year was very bad. The first quarter, you know, that there were the GST and all that coming in. So we should not take the raw base of the last quarter last year. But even looking at what was Actually, the market situation in Q2, Q3, Q4 last year. Domestically, I see an improvement this year which is taking us too close to where the elections are. So I'm the visibility I'm seeing now. This is come by analyzing our requirements. So we're not really going by market trends or something that's more for 20 nineteen-twenty 20. Now in 1920, I don't want to say something because we have the general election coming in. But for the current year, which is order booking in 2018, 2019, which means performance in 2019, 2020, we are very, very positive. And that is really not influenced by the election either in the States or in the center in the next 12 months. Okay. And what would be the market size, sir, 0 to 30 hours of now? So like we said, the Q1 order number of orders placed was about 300 megawatts. As compared to 125 megawatts. The annualized market last year was about 7.50 megawatts and we anticipate the growth would be over 20% on that? Yes. It is substantial growth. So there is a reliable Okay. And, along with the improvement in ordering, is the pricing also improving? So, I mean, that is a very good question. And That has been marginal up to now, but with the increased order intake, the we are definitely confident of a better, because there's more to eat for everybody, competitive intensity? The competitive intensity is less. The expectation level, everyone is having more orders. And everyone is seeing further orders. So there is a little tendency of not adding certain price points which could be used by other people in the same sector. So we are actually changing our price points. And also there's a marginal, pass through of costs, which will take place. So there will be price increases. Got it, sir. And, in terms of exports, so basically, exports is a fair share of revenue. The recent rupee depreciation has made us more competitive. So basically, in a sense, whichever geography Well, we were not losing orders based on price anyway. So the fact is that at all, what we will do is we'll make will be better from a margin perspective for us as well as allow us to pass through anything. And the further question is, that actually the rupee depreciation in the last three months is mainly going to see order conclusions in the next quarters, that's making those very competitive. The ones that you put out, because these are dollar quotes, So you are in a much better position versus it's a natural competition, not Indian competition in the foreign market of of inquiries, the active inquiries, which are under negotiation for Q2, Q3. So that's why I made a feeling that our margins in order bookings in the current year will be better than what we had in the previous year in exports and overall. Thank you. We take the next question from the line of Bhavan Parikh from Renaissance Investment. I would Yeah. So, sir, my first question is, sir, I mean, while in this quarter, margins are better. Y o y. So we are about 17%. But in this quarter, we've had more of exports and even, aftermarket revenues also, done seasonally well. So shouldn't be a margin driving closer to, like, the 19, 20% that we generally report Hi, there. Good question. You see, I said a lot of the dispatch of the Q1 has come from last year. And these are almost ready, and these are the ones that have been dispatched this year. And they the mix was different. So it was not very dependent on our order bookings this year. Or on and so we are really looking at the legacy of 9 months ago and what had happened because that's really the dispatch part what you had in the current quarter. That's why I'm confident of H1 where the second quarter is going to show an improvement over what we had here. The second in March, and that is really in line with what you're saying. The improved, aftermarket, the improved diversification in the export is what is going to make the margin better in the next few quarters. Okay. So so you mean that last year, some of the orders that we've taken were at lower margins and those have come into execution now? No. The mix was different to what we had now. The mix of aftermarket was different when we picked those orders then. You're looking at a higher aftermarket today. So this will get reflected by when your future margins. Okay. Also, there's another thing that as we, as we operate with a certain amount of fixed costs, as we then close to about 200 crore, turnover on a quarterly basis, we have much better overhead absorption And, so what you'd see from our results is, yes, we, our material costs may have gone up, which is a, which is a reflection of product mix, but overall margins, are impacted by fixed costs also, which over if you look at it over a period of time of the business, which is over the next next quarter as well as the subsequent quarters, it will all get evened out. Okay. Okay. And so secondly, we've been seeing a deferment of orders on and off both domestic and exports, earlier. And the ordering was in pretty good this time. So isn't that, some of the earlier deferred orders they have actually kicked in or these are the new inquiries which are materialized for us. Actually in joint venture GPL, some of the orders are taking a little longer to for them to pick up, and we expect that in Q2. But to answer your question, no, this is not anything. It's all new, new business. This is not the deferment. Okay. So, sir, you mentioned the inquiries are good from, segments like sugar, cogen, and a couple of them. Cement scene also. So, I mean, in this corner, what has worked for us in terms of better running search segments? The same segments. Okay. So essentially, I mean, given that quarter 1 has been really good and for FY18, we haven't had a very great revenue growth. Yeah. So this year, actually, you know, we should be compensating for the lost revenue growth of FY18 also and, at normalized margins, that is a fair expectation. Some parts definitely are going to have revenue growth and we definitely are going to have margin growth. Now, you know, we don't give a guidance on this, but, what you have mentioned at the trend is correct. Okay, great. Thanks and all the best. Thank you. Thank you. We take the next question from the line of Chirak Pachala from Minimar Bank. Please. Hello? Hello? Hello? Yes. Yeah. Yeah, sir. So basically, the question first is on the aftermarket services side. So in this quarter, we have seen, you know, increased order inflow as well as a very high order backlog in the aftermarket basically around 73 crores worth of inflow compared to normally 45 to 50 crores quarterly inflow ended that we had And you mentioned in opening commentary that overseas markets has contributed to it. So is there any, I mean, larger refurbishment orders in it? And we assume because of this overseas office is getting more this to be a normalized run rate going forward? No, you see, what I want to tell you is we've been successful in this quarter, but this is not reflective. You can't take 1 quarter's performance and then put it as an average over the rest of the year. So even when one's done well, I caution that. But the point that we have got 1 is some refurbishing orders. So what I we are all very happy about is that there has been this success in our perseverance with the export offices and will are concentrating on the aftermarket in the export offices? Are you being close to the customer giving him confidence that we can service him. These are the reasons why we took the expense of putting up these facilities overseas. And So while I definitely feel that the overall business is going to be higher, I can't make a projection of exactly what it's going to be because this business is lumpy from quarter to quarter. Okay. So second question is on the G Driveni side. So, you know, I mean, there have been, international media reports that has decided basically to divest its stake from the GE Baker. It is joint venture, which basically holds stake in our company's GTV joint venture So any update on that side? I mean, what happens if GE actually divest the stake to this JV? I would not like to comment on something that's in the media or coming from another company. All I know is that there's nothing that is in front of us today and nothing that I can see in the in this financial year or going forward. What may happen in the distant future is something that will keep you price of the moment we are aware of something that has a relevance to the Veneta Bank. Okay. So, I mean, even as of now, also the international marketing of the G IIIVINI continues to be handled by GE people, or do we handle it now? No, it's being handled by the VAT exactly the same as it was before. Okay. And so the last question on the API turbine side. So I mean, sir, a few quarters where we had won that breakthrough order on API turbines from Middle East. So any more business updates from that, any more orders that we have and what is the progress on execution or of those turbines that we all got? Very good question. They are the customer, even though API customer and the Kuwait National Petroleum Company, we have now delivered them. So that offtake was delayed a bit. So they we expect them in operation in the next few months. So we feel a bit through. Getting registration from from, places like Aramco and others have seen much longer than one thought. It's nothing that is in our control. We are a small part of that purchasing, overall So it is we are pursuing it. We are getting some inquiries, but the finalization of those inquiries are taking longer. This is really not something that is in our control. But all I can say is that our reception from oil producing companies And from these very high good margin new sector market has been good. So we go to the consultants and we go to the parties, We are well received. We are not saying that they're all here. They just say you have to follow-up the features and they take this time. So That's we this is really a scale of focus area. So any addressable market that the size that you mentioned where we are already qualified and where we can bid for API domains? No, this is by parts of the Middle East, we can. And we are hoping that we can get some breakthroughs in Southeast Asia in the near future. Okay. So, for any I mean, numbers that can be put around addressable market size in terms of, let's say, megawatt or gigahertz. Market size is very high, but I would like to put that till we are qualified. Because addressable means to us. So it will be yes, so I'd rather approach the expression Once we may get into the question of getting worried. Okay. Okay, sir. And finally, what would be the G III VINI JV's order book as of now? 164. Thank you. We take the next question. It's from the line of Anun Bhabnami from Unifi Capital. Please go ahead. Thank you for the opportunity. So can you give us some sense of the current capacity utilization within our the engineering joint venture and the stand alone clearance events. Well, I think it's the same because the, our joint venture as a, it doesn't manufacture. Manufacturing is turbine for the JV is done by so many turbines. We are raised about 50, 60 percent mark. We've got a little long, because there's a lot of outsourcing and there's bought out equipment we can grow very substantially. I mean, you can take, at least that and with some small changes even more. So it's 40% is easy. And as you know, in our new facility, we only have 2 base commission and currently, we don't have space for file. Okay. Okay. And, sir, if I were to track the order book, like, because looking at the last 3, 4 years, order book at the end of first quarter. So in 2014, it was 7,600,000,000 in 250 meters, 7.8000000. Again, in 2016 Megawatts, close to 7000000 So we haven't been able to increase our order book beyond this 7, 8,000,000,000 rupee number. So I mean, when do you see this crossing, like, say, 10,000,000,000,000 kind of a number? Let me tell you what we've done. If you look at some of the players in the far field, there turnovers have gone down very substantially as you must have noticed. So we have been able to weather this thinking internationally very well by Douglas. Now I think we are positioned well to take up, because the sectors we are in have now started drawing fruit So we are quite confident that with our offices now starting to kick in, in terms of post product and after same service. And with a number of units having been commissioned overseas, that takes time. It is not only dependent on asset dependent on the customer. Having his other facilities and commissioning his power plant, that will start seeing traction in the current year, but very much so in 2020. Okay. Sir, can you give us a backup of our Q1 revenues in terms of, turbine sales aftermarket and refurbishment? Aftermarket is the same, but about 24% of the turnovers from the aftermarket. We include refurbishment and in the outlook. Okay. So And that sounds like it is turbine sales. Yeah. And, sir, Madeline, how would be the split between these two segments? I want to do this for much, much better, but I don't think we give break ups. Okay. And so order book, you mentioned that mix has changed. So, we have higher, aftermarket. It's in the sense of the order book split in terms of aftermarket. It's in the investor brief, but I can get it out. It's in the investor brief. The split of order booking is a bit of orders on hand in aftermarket and I'll just get it one minute. 13% of the order book and aftermarket. That's 103 crores. But you must understand that aftermarket has a much quicker cycle than the product. So looking at the opening order book and saying it doesn't mean that the turnover is going to be in that same split. Because the book in bill is much quicker in aftermarket than it is in product. And, sir, Adi, in the call, you gave a couple of figures. I couldn't understand if you can explain. You gave a number 300 megawatt order placed vis a vis 1.25 megawatt last year, what was this number in relation to? This is the, the question was, what was the domestic market now versus last year. So we gave a figure of what we believe was the market in Q1 last year. Overall, and this year. But with the caveat to say that because it was a very low base last year, This increase should not be looked at as a percentage way of forecasting the future increase. Though we expect the domestic market in the following quarters to also be higher than the last year passed. So if I were to look at these numbers, in terms of megawatt, the numbers in 2 in the series, roughly 140% higher. So has it translated into commensurate rise in revenue? No. See, an order booked today, it will calculate into revenue in 9 to 12 months. So we are this is the cycle of the, power generation steam turbine business? Yes. Sorry. So essentially, I should expect revenues to be 140% higher given the order book is 140% higher in megawatt terms. No, not really. Let's make a differentiation. We talked about overall markets going up. We talked about our orders going up. We had a 43% increase in the domestic order. This will come in in the quarters, 3 quarters from now, 4 quarters from now. A reflection in this packet. Thank you. We take the next question from the line of Ranjit Shabram from ICC Securities. Please go ahead. Yeah. Hi, sir. Congrats on a good set of numbers. It's really happening to see, the revenues going up I just wanted to get some clarity like you were, expecting sugar and cogen has a good group driver, but then we look at the oral sugar scenario, it's in a very bad shape. Just wanted to understand that there are these orders coming because the sugar mills are not performing well. Good question. Good question. Let me tell you, we are in the group, we are also in sugar. So we're very, very aware of the You see, sugar standalone has got problems in the environment. So the driver for sugar companies is in the a full expectation of their co products, which is molasses and Bagas in molasses is to put up ethanol plants And you know the big incentives that have been given by the government of India in funding and the priorities that's been given by the Prime Minister towards ethanol blending. Now these distilleries also have power generation equipment and we've already got some orders in the case of more crushing because yields have gone up. There's more gas availability. So factories to counteract low sugar prices, we'll have to get revenues from co generated power, even though the rates are not going up, but they're still very viable in terms of having a diversified revenue stream for the sugar plant. So it needs a revenue stream from ethanol, from power and from sugar. That's why I'm saying. That's good funding for it. And the funding for the ethanol and there is there. This is not a problem of funding, both the sugar development fund and the banking sector. Okay. So you believe that even though the sugar prices and other things are in a bad shape, the sugar mix will continue to do the CapEx in terms of and also that their overall yield will increase. So that taxes will continue. We are not on There are no options. They have to do it. Otherwise, they're not able to increase their profitability and revenue stream and the risk is very large to rely on the sugar market. Okay. And apart from a sugar, which other major sector, you are seeing an uptick, are you wearing chemicals for places? You get any Well, without getting specific, the large segments are process cogeneration, which includes a certain sectors that we talk about, but more than that has been metrics and steel and the inquiries from cement have been very strong also. Okay. And what was the part of this rupee depreciation in this, revenue growth? Because you mentioned that export had been a driver in terms of the the the the repeat depreciation. We follow a a process of hedge accounting and a majority of our external that is foreign currency receipts I hedged. So what you would see in terms of this currency appreciation of the rupee is when the new contracts get expired, you would find much better profitability because the rate, including the forward premium be somewhere in the region of about 72.73 rupees for dollar contracts. Okay. So this current revenue growth is not, there is no impact because of the rupee depreciation in the earning group. Okay? And, sir, if I if I if you have missed it, what is the current market and co captive cogen in the domestic that you are seeing for this year? I heard it as around 7.50 Megawatt. Is that the right number to look at? That was last year. Yeah. I think this year, we'll know, you can be looking at over 900. Around 900 Megawatt. Yeah. Okay. Okay, sir. Thank you so much. Thank you. Thank you. We take the next question from the line of Ashutosh Meheda from Edelweiss. For that, I would like to remind all participants. Good afternoon. Yes. So this is more to dwell upon one of the questions which an earlier participant asked. So if you look at the sales mix during this quarter, So we have a larger portion of exports and aftermarkets. But however, when we look at the gross margins, we see a decline there. So is there any specific one off or and contract, which has a lower margin, which we have delivered now? Yeah. That's exactly my point. That this has been coming through from the previous year, and that is exactly what happened. It's a really, you know, our margin on our breakthrough. This is the execution of our first oil and gas. Okay. So do we have such a very big one? Lot more went into it than we thought and very high certification and compliance procedures. But we've learned the ropes and all that is now accounted for and delivered. Okay. So do we have any other such orders in the order book? Hello. Okay. Thank you, sir. Thank you. We take the next question from the line Fichay Kumar from First Global. Please go ahead. Yeah. Hi. Good evening, sir. Congratulations on a good set of number. My question is, yes, sir. What are the margins levels we are expecting since, you know, the export or contribution is really higher here, and the margins is 17 sequentially is a low somewhere. So what are the margins we are expecting for the next quarters? We don't give a thing quarter on quarter, but I want to just mention that when I mentioned 2 very positive things, which looking at catching up with a higher margins in Q2 than what we got in Q1 and that the overall year margins are going to be what we had last year. So, you know, it's to please, you know, because it being a capital equipment business, there's nothing yet delivered in 1 month and then get delivered another month. And that's a higher margin than a lower margin. 1 quarter, you may see a huge spot. Spot in something and then if they choose to take those as a projection for the future, the trend is positive in margins, both on a yearly basis and on the full yearly basis. Thank you. We take the next question from the line of Katy Jain from Sundaram Mutual Bank. Please go ahead. Sir, with regard to earlier, you highlighted that sugar cogen. Sir, do you think that, that the B heavy processes will aid in CapEx for us, sir? Yes. [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] Yes. Now, most definitely, by the way, it will take a little time because but many people are moving to, distilleries, ethanol distilleries on B. Heavy, how much has decreased the pricing of for the heavy, which is they may make it further incentive, but they have to do that. If you want to get our ethanol bending, even up to 10% So, we know it because by the way, we have, we are in that business and we're helping it ourselves. Yes, sir. Yes, sir. I'm not too wrong in when I in the analysis because it's, And it's a well, how long it takes a minute. So these are very encouraging trends in terms of power generation equipment, even in a sector where the sugar is not alone doing that well. Okay. Okay. So from FY 'nineteen, you will start to order, seeing order for BAV plus or when you are seeing orders for BAV, sir? Might be even the currency. FY19 may be order. I don't know. But certainly, I know that, I can't say it now because we haven't had earnings call on Saveri Engineering as yet to pass. You can hear, answer questions there. Sure, sir. Sure, sir. Now we have established our second plant also, and we will continue to see a good cash flows. So any plans of diversification further, sir, in the concentric circles? Yes, good question. You know, we have no big diversification or anything in this current year that we're looking at, we are certainly looking at new product lines. We have plenty of capacity for new product lines. So our R and D efforts with this We are actually spending monies on that. We have the space in terms of our the results of the year can absorb higher R and D expenses because they have the return coming in the year ahead. And secondly, we have both the capacity in terms of the plant and equipment and space of other expansion. The second thing that we are doing, we are going even further down the line, a small little CapEx in terms of testing equipment where because it will supplement our R and D, we probably are going to have the 1st testing lab over the second one, DHL, we have it in Asia. Now this will allow us to really start simulating, state of the art technologies which we're developing. So you need to, we're benchmarking now higher and higher on an international plane. So but there's nothing that is in the FY 2019 year that we are concentrating. Okay, sir. Sir, on exports piece, which are the geographies we are seeing good traction, sir? Are they on developed market or on the developing market side, sir? Well, the developed market has been better than last year. We expect that it can still improve, but it has definitely been better than last year. And we've got orders also in Q1 better than what we had last year. Again, there are the sectors that I said waste to energy and biomass and limited process. And these will continue. Secondly, we are seeing some traction in Southeast Asia better than last year. LATAM, has not picked up as the way we thought it would and, some parts of, in our refurbishment business and others in the Middle East and Africa are doing well. Sure, sir. We take the next question from the line of Chiragmachala from Ermelbank. Please go ahead. Yes, so just one follow-up. Sir, is there any ForEx gain in this particular quarter? For exchange? No, we follow hedge accounting for all variations on account of MTN are put into hedging reserves and which are then adjusted against the revenue at an appropriate time under the revised dispatch. Okay. So so now it doesn't flow through the PNN, unlike earlier process of, to OCI, other comprehensive income. Okay. Because the debt figure is negative, actually, in this quarter of negative 2 crores despite rupee depreciation. It's okay. Because the rupee depreciation is negative. It keeps on happening like this. Finally, in case the system is the revenue. Yeah. So it's not a loss, but it's it's under the accounting standard. We have to provide for it. Right. Right. This is happening even though we have delivered the termite. Thank you. Our next question is from the line of Sarkar Parekh from the finance. Please go ahead. Yeah, good evening and thanks for taking my question. Just one question on the domestic market. Have you lost our market share in this quarter? Because, it's about 1 40% increase in terms of market size, and we have grown order inflow by 43%. So is it loss in market share or it is loss in price? No, we've actually gained market share. So then this 43% rise in order inflow does not match with 140% increase in market size, right? No, the, the market that we estimated in, So I think you're right. We looked at the order, maybe the market figures of last year were not entirely 140 or 150. But of the, you know, we have traction on all orders. So we know exactly what we lost and what we want. So in that, we know that, Actually, actually, one up picture around 60, 65% Thank you. Thank you. Our ladies and gentlemen, this seem to be the last question for today. I would now like to hand the conference over to the management for their closing comments. Thank you very much. Thank you for a very active question. I'd like to just summarize our position by saying that we view the balanced part of FY 2019 very positively. We have a very good order book, best that we've had. And the mix is good in terms of international and domestic and after sales and product. Our strategy of diversifying geographical presence internationally with the help of I export offices is working. The domestic market is picking up And the increased domestic market will bring about an increase in margins as well. And our research and development efforts in the past, which have brought new models out, have been well received in the market. And so have given us opportunities of catering to the sectors which are growing, which is waste to energy and biomass and internally in the co gen and the ethanol sectors domestically, plus what is available in metals and cement. So we expect a SFQ2 and good H1 results and ending the year with a positive increase in Thank you very much, ladies and gentlemen, on behalf of Praveni Turbines, we conclude today's conference. Thank you all for joining us. You may disconnect your lines now.