Ladies and gentlemen, good day and welcome to the Cyient DLM Limited Q1 FY 2024 Earnings Conference Call. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Krishna Bodanapu, Non-Executive Chairman of Cyient DLM Limited. Thank you, and over to you, sir.
Thank you very much. Good evening, ladies and gentlemen, and welcome to Cyient DLM Limited's first earnings call post-listing for quarter one of FY 2024. My name is Krishna Bodanapu, and I am the Non-Executive Chairman of Cyient DLM. Present with me on this call are Mr. Anthony Montalbano, the Chief Executive Officer of Cyient DLM, and Mr. Shrinivas Kulkarni, the Chief Financial Officer of Cyient DLM. Before we begin, I would like to mention that some of the statements made in today's discussions may be forward-looking in nature and may involve risks and uncertainties. A detailed statement in this regard is available in our investor update, which has been posted to our website. As you all know, Cyient DLM listed on 10th of July 2023. I want to take this opportunity to thank you all for your wonderful response to our IPO.
Taking the company public is a significant step in shaping the future of design-led manufacturing, and it offers an opportunity for investors to join us in this journey. Over the past years, we have demonstrated Cyient DLM's capabilities in a wide range of EMS solutions and are well-positioned to make the most of the favorable tailwinds in this industry. The combination of our design and engineering capabilities in Cyient Limited and our manufacturing capabilities in Cyient DLM Limited ensures that we are well positioned to meet our client needs and deliver value to them. I personally greatly value your trust and confidence, and I am committed to holding the same standards of governance and transparency that we have demonstrated in Cyient Limited.
Lastly, on behalf of the board of directors, I want to thank the leadership team, especially the two leaders, Anthony and Shrinivas on this call, who have made a seamless process of transition from a fully owned subsidiary of Cyient to a publicly listed Cyient DLM. Once again, thank you for your interest in Cyient DLM, and I will now hand over the call to Anthony and Shrinivas to walk you through the business update and financial performance. Anthony?
Great. Thank you, Krishna. Hello, ladies and gentlemen. Let me take you through the highlights of the quarter and business update. We posted a revenue of INR 2,171 million, which is 27.6% year-on-year growth. Major growth comes from industrial defense and aerospace segments. Our EBITDA is INR 200 million, which is a growth of 72.6% year-on-year. EBITDA margins are 9.2%, up 243 basis points on year-on-year term. Profit after tax is at INR 54 million, down 15.2% year-on-year.
This is primarily due to other income being higher in Q1 FY 2023, caused by unrealized forex gains. PAT margin is 2.5%, which is 126 basis points lower on year-over-year terms. Our order backlog is strong and stable at INR 24,997 million, and has an increase of 89% compared to last year. As this is our first call, I will take a few moments and cover broadly the business of Cyient DLM and our go-to-market focus before I move on to the key highlights of the quarter.
When you look at DLM and how we differentiate in the EMS industry, it really comes down to the type of work we do and the sectors and types of clients we do it. It is really mission-critical, safety-critical, electronic manufacturing services, primarily focused on aerospace & defense, medical, and industrial segments. These are segments that clients require quality and capability and really a demonstrated track record to deliver these types of applications. We have been doing this for 30 years across three sites in India, and this has been a core of our business. The association as well with Cyient Limited and the 7,000 design engineers that we have available to us are also really a key differentiator for our business. They help us bring value to our clients through the types of services we can provide that impact manufacturing.
They also enable us to engage with relatively large multinational client base. Most of our clients are industry leaders, global in scale, and they gained the confidence of placing their business with Cyient DLM, despite our relatively small size as an EMS player. It is primarily due to the track record we have and then also the wherewithal of the larger Cyient that brings that comfort. Let us go to the next slide. From a go-to-market perspective, as I covered, the three main sectors, aerospace & defense, healthcare, and industrial, it comes down to the type of work that we are doing in these sectors, the types of products. In aerospace, we have products that are going in aircraft. In healthcare, we will have electronics going into medical equipment.
Even in industrial, where it might not be a safety-critical application, it is often called a mission-critical application, where reliability is very high for some of these units in remote locations that provide the service level that our clients need. This has been a key area of our focus as we walk through our operations. These are the types of products that run through our facilities, all in a low volume, high mix environment. This is a very different segment of the EMS industry, which has very high-quality process requirements to support these types of applications. Go to the next slide. Some highlights for the quarter. First and foremost, we had a successful listing for Cyient DLM on the NSE and BSE, with a great response from the industrial community.
This is something we are very grateful for, and this is a very notable point for Cyient on its journey. We have a very strong pipeline of over $700 million. This is backed by major aerospace and defense clients, as well as some of the other sectors that we engage in. We believe that this will continue to convert and continue to drive the business growth that we have demonstrated in the business to date. We also recently were awarded a State Export Excellence Award from the government of Karnataka. This is a great recognition of the type of work that we do, and then we also had some key customers' appreciation for some zero defects, literally zero PPM across some of our A&D segments that is really pretty high bar to try and reach. That is something that we have demonstrated this last quarter.
We have also had some key wins that add to the pipeline. Some new wins in the aerospace & defense space approaching INR 27 million on one specific deal. Also some other ones. We have some other order intake of about INR 33.6 million during the quarter, providing stability to the significant backlog that we have already built. Next slide. On the finance updates, I am going to turn it over to Shrinivas, and he can guide us through this.
Thank you, Anthony. Good evening, everyone. I will walk you through the P&L and some key financial metrics. Our gross margin was significantly higher year-on-year basis. This is due to better revenue mix and a few one-offs we had in Q1 last year. Our full-year gross margins will be in the range similar to what you see in Q1. Our operating performance for the quarter was strong, and we ended up with an EBITDA of INR 20 crores, which is a growth of 72.6% on a Y-o-Y basis. Compared to Q1 of FY 2023, we incurred higher finance charges due to increase in borrowings and the interest rates. Also, in Q1 last year, we had unrealized forex gains of nearly INR 8 crores. These two factors are contributing to PAT decline Y-o-Y. For the rest of the year, we should see significant increase in PAT.
The strong operating performance will be aided by lower finance charges with the loan repayment we plan to do with the IPO proceeds, as well as higher other income we expect to see for the rest of the year. From a revenue segment perspective, aerospace & defense combined mix is about 56%, followed by 30% from industrial, 10% is from med tech, and 4% is from others, which is primarily some work we do with rail transportation. The PCB box build and cable wire harness mix is in line with our historical trends. From an export versus domestic mix perspective, approximately 70% of our business is in exports, which includes deemed exports, and 30% from domestic. We do not expect significant change in this mix over the next one year. Our order book is very strong.
It is stable for the past three quarters, despite doing nearly INR 750 crores of revenue in the last nine months. A few of the orders repeat every quarter, while a few repeat every year. Hence, we may see fluctuation within the year. However, we expect to see growth in our order book on a full year basis. Our DIO for the quarter is 187 days, which is high. This metric has to be looked at with the customer advance days, which is the chart right below that, and which has also increased. So customer advance sort of funds the higher inventory buildup. We plan to optimize this further, and we expect to see the number going down to about 140 days by the end of Q2 and 120 days by the end of the year. Our DSO also has increased to about 90 days in this quarter.
However, there is no systemic issue or risk with any of our receivables, and some of the collections have come in after June 30 in the last two weeks, and therefore end of quarter number is looking high. Also, on some of these metrics, it makes sense to look at an average for the year, and we will continue to show the trend to you going forward. On the IPO utilization, given that the IPO concluded only 10 days ago, we have still not utilized the IPO funds. However, going forward in this format, we will report the usage to you on a quarterly basis. With that, we sort of close the presentation and open the floor for any Q&A that you may have.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles.
The first question is from the line of Venkatesh Balasubramaniam from Axis Capital. Please go ahead.
Yeah. This is a question for Shrinivas. Firstly, when you are calculating your inventory days and payable days and sales days and customer advances, for everything, the denominator is sales only, right?
Yes, that is right, Venkatesh. This is exactly the definition that we have defined in our RHP. The same definition that is used.
Okay. You are using the quarter-end number to calculate this. You are not using any averages, correct?
No, no. Quarter-end number only.
Okay. When you actually look at it, when you calculate your net working capital, I am assuming that is equal to DSO plus DIO minus DPO minus customer advances. But when I am doing that calculation, those numbers are not adding up.
No, there will be some other current asset movement as well, Venkatesh. It is not a significant item, therefore, we are not showing that here.
Okay, understood. The other question which I had was, do you have a guidance for revenue, EBITDA for the current year and the year after, which you would like to communicate? Revenue and EBITDA guidance.
No, we do not want to give a guidance at this stage. What I will say, though, is our revenue will be higher than the industry average for the year. We have also indicated what our order book is, and more than half of it is convertible in the next 12 months. That sort of gives you an indication of what the growth can be.
Okay.
EBITDA will be similar to what we did last year. That is between 10% and 11%.
Okay, 10% and 11% EBITDA margin. You mentioned that your revenue growth will be higher than EBITDA. Just to give you some information, Syrma SGS Technology has given a guidance of 35%-40% for the current year. I think Kaynes Technology has a guidance of 50%+ for the current year. Are you trying to say that you will do more than what these people have done? Because when you say more than industry, it leaves it quite open-ended, because what exactly is industry for you?
No, I think, Venkatesh Balasubramaniam, the industry is defined by other companies who are in this space as well. For now, let's keep it at industry average or higher than industry average, which includes other companies in the EMS space.
Okay.
We will specifically not comment on any other company's numbers. As we go through the year, when we have better confidence on the full year number, I think we will decide whether we want to give an outlook or not. But for now, the order book is strong and we expect to grow significantly. We'd want to leave it there.
Okay. One last question from my side. I think post-COVID, your raw material ordering cycles had actually gone up to almost one and a half years. Are you seeing improvements in terms of raw material orders, in terms of how fast you're getting? What exactly you are seeing on that front when it comes to ordering of raw materials? Because that is one of the biggest drivers of your working capital.
That is correct. Definitely the supply chain is easing out, but it is not easing out at the pace that we had expected originally. Therefore, I think while there will be a drop in our inventory days, it will not be a significant drop. So what we are saying is we will go down to about 140 days by end of Q2 and about 120 days by end of the year.
Okay. Thank you. All the very best for the next nine months of the year.
Thank you, Venkatesh.
Thank you. The next question is from the line of Mihir Manohar from Carnelian Asset Management. Please go ahead.
Yeah. Hi, thanks for giving the opportunity, and congratulations on a good set of numbers. Sir, lastly, I wanted to understand the pipeline of $700 million that you have mentioned in aerospace & defense. When you say a pipeline of $700 million, what do you exactly mean by that? Are they from existing customers, or is it from new customers? What is the near-term visibility of that pipeline? That will be really helpful. My second question was on the seasonality of the business. Is there a seasonality in the business? Does 3Q, 4Q, form a major portion of the overall year? Why there is a seasonality? Just wanted to get an understanding around that. What is the broader revenue split which happens across the quarters? That would be really helpful. Yeah.
Yeah. This is Anthony. I can go ahead and speak to the pipeline. The pipeline does make up from current clients and also new clients as well, with a heavier weight on current. We do have some significant programs that we look to be announcing in the coming quarters, that have a material impact on that pipeline.
This is a view of where it is today, and as we close those deals and convert them, that pipeline may come down. Then, of course, we also have our go-to-market initiatives where we'll continue to add on that. So we think this is a great base to take us forward. Right now, our business view is we take a look at the business from an annual perspective. That's how we invest in it, that's how the business is managed, that's how we drive our growth. We think this is the right base to get us there.
Yeah. On the seasonality, what we've observed in the last three years is typically H1 is about 45% and H2 is about 55%. We expect similar trends this year as well.
Sure. That is it from my side.
Thank you. The next question is on the line of Renu Baid from IIFL Securities. Please go ahead.
Yeah. Hi. Good evening team. I have two questions. The first question is, can you share some insights in terms of the new customer additions that we have seen for our business and any numbers or order value that you would want to assign with the new customer additions? I presume this will be largely in the non-aerospace & defense portfolio.
Yeah. In the past quarter, there is new customer. It does make up a new customer addition. As far as the client names, on a business award, we do keep that confidential. But what I can communicate is that it is along the same caliber when we talk about an industry leader similar to the type of logos that we have already communicated. So in our business, we will definitely add new clients, and we plan to show more awards with clients, new logos in that regard. But the difference is that these will be market leaders in their sectors. So from a business perspective that drives our revenue, it is from a relatively small number of clients.
We are talking adding new logos in the terms of maybe four or five logos a year, is really the way our business is run. And that would give us substantial growth. It is very different than a company that might be crossing many sectors and might have relatively smaller engagement in deal sizes, where that is a bit of a higher client churn business.
Got it. But most of these new customer additions that we are seeing, including the ones that you already have, are you witnessing a visible shift in incremental volumes coming out of China to India? Or this would be more about the incremental volumes, which Cyient DLM is buying based on their competitive positioning?
On the new logos for the past quarter, the specific case is really more of an expansion. As the companies look at sourcing, many of these clients in the space are diversifying into new geos, and India is becoming a top destination in that regard. So it is not necessarily business that is transferring from China to India. It is basically new business award that now is really coming to India based on the capabilities, and the cost, and the overall service level, which is allowing us to grow.
Sure. My second question is, if you look at the broad exports, as in we have always had 65%-70% of business coming from exports, any color you can share in terms of the geographic mix between North America and India, APAC on the backlog or the current book that we have?
Yeah. When you look at the number of clients we have, a good portion of that is for export. A lot of our business, client-wise, as far as key clients, does go to Western countries, Europe, U.S. But we do have some larger local programs, which will run through for the next couple of years, some defense business directly within India. Today, that is making up the largest share of our current revenues, but it is actually a relatively very small share of the number of clients we have. We see that mix changing a bit as we work through that. We see probably the exports will continue to make up a greater portion of the overall business as we look out in the next couple of years.
Sure. Next is, broadly, if you look at the working capital cycle in the last, as we compare to the last year's trends, clearly it is now inching close to 100 days. After this increase in the next cycle, from a segment perspective or the end market perspective, you think it is attributable to the industrial segment where the growth has been highest, 75%? Or it would be more in terms of securing the supply chain and electronics semi cons in advance?
Yeah. Let me address that. I think some of this is definitely due to securing the parts ahead of time to secure the revenue. But we see that easing out, and we have a line of sight to get to the networking capital at 60 days by the end of the year. We are working towards that. Definitely, DIO and DSO are two major components that help us with that.
Yeah. But also, what I was trying to understand is the increasing share of industrial in our business mix. Is that also having an impact on the changing dynamics on your working capital cycle and overall ROE as well?
No, not really. I think that's not had much of a bearing. Some of the increases we see are actually in the aerospace and defense business now.
Sure. One last number to clarify. You mentioned approximately more than 50% of your order book is convertible in the next 12 months. Does that imply this more than 50% of the INR 25 billion order book?
Yeah. See, that's an executable order book. It will be subject to availability of parts and customer schedule push-outs, et cetera. That's a broad indication in terms of where the growth can be, but it's not necessarily that that will entirely be the growth for it.
Okay. Thanks much, and all the best.
Thank you. The next question is on the line of Meet Jain from Motilal Oswal. Please go ahead.
Hello. Thanks for the opportunity. I want to just understand the mix of ODM and contract manufacturing part of our business. How much is the ODM mix?
We do not engage in any ODM type business. Just in terms of definition, when we say ODM, that means that we do not own the IP on the current revenue that we are shipping on. This is really what I call a pure contract design and contract manufacturing. Now we do programs for our clients where they will engage with us on design and manufacturing. That is really on a build-to-spec application. That is where instead of the client working with an engineering firm to get the product developed and then using a different manufacturer to get the product built, we have several programs where we do the solve within Cyient. This has enabled our Cyient DLM business, and also helps us bring value to our clients because we can leverage the engineering.
Oh, okay. Got it. Next is around the value chain of our business. We build box build and we do cable harnessing. How have we moved our value chain and what kind of backward integrated are we?
Yeah. I would look at PCBA and box build as really kind of an offering to our clients, right? Clients will usually source those two together. They'll come to us, we'll do the electronics, we'll do the circuit cards, we'll build it into a box and ship that to them. Now, there are cases where there might. For example, we have one large client where they happen to have their own operation where they do the final assembly. So we just do the cards and we ship it to their operation and they do the box build. But most of it's tied together on the card manufacturing, the PCBAs and the box build.
We do that source as kind of one business. Then you also have the cable and wire harnessing business, which is a little bit more separate. Some of the work that we do there is specific to aerospace, where we do some complex harness work in that regard. That is an area that we do see some expansion in as we look forward.
Understood. My last question is regarding our margin expansion side. Are we doing any measures or taking to expand our margin from current levels?
I'm sorry, can you repeat the question?
I want to understand what we are doing to expand our margin from current levels. We are already doing some backward integration. We are integrating PCB and box builds to some of our customers. Apart from that, to improve our margins further and for revenue growth, are we targeting certain sectors or certain products in the market going forward?
Yeah. Okay. Got it. Yeah, good question. We have various initiatives that we do have in place that we are looking to expand on margins. Just due to the growth that we've had in the business, we are getting some natural margin absorption. Where we are today as we continue to scale and absorb costs, along with some operational efficiencies, that alone can give us one, two points of opportunity, from an EBITDA perspective. Another area of margin expansion for us, is really on these build-to-spec programs, where we do the design and manufacturing. We have far more ownership of the overall product. We have far more input on the design, on the materials, control on the supply chain.
These programs do allow us to make higher margins compared to a traditional standard build-to-print business where the client controls all of that. As that part of our portfolio grows, that can give us maybe another point to point and a half of opportunity there on the overall business. As we look out a couple years, there is an upside on margins, where we could get one, two, three points as we deliver on those types of initiatives. Then we do have continual items that we look at, such as, increasing our operation efficiencies and some of these basically manufacturing best practices that we're always working on to improve upon.
Okay, got it. Thanks for the answer.
Yeah.
Thank you. A reminder to the participants, please press star and 1 to ask a question. The next question is from the line of Rakesh Wadhwani from Monarch AIF. Please go ahead.
Hello. Thank you for the opportunity. Sir, sorry to repeat that point. Can you just repeat the guidance on the networking part and inventory part, because I didn't get the point properly, number properly. Can you please help me with that?
You want to know what the networking capital and inventory days are?
I just want to know what is the guidance for the full year. You gave the guidance like, you want to reduce inventory days as well as the networking capital cycle. So number that. I didn't get the number.
For the inventory days, we will go down from 187 to about 140 days in Q2, and about 120 days by end of the year.
Okay. Regarding networking capital?
Networking capital, which is at 98 days right now, will go down to about 60 days by end of the year.
Okay. 60 days. Okay. Thank you for clarifying, sir. Thank you. Sir, just another second question from my side. If you look at the trend of the customer advances, it is very volatile. There are days we are getting. What is the reason for volatility in customer advances?
The customer advance, I didn't follow your question. Can you say that again, please?
What is the reason for that volatility in the number of customer advances? Because I assume all the clients will be giving us orders before they will execute the order. What is the reason for volatility in numbers? Because revenues have gone up, but the number of days has come down.
The customer advances are very specific negotiations that we do. Not all customers gives us advance. A number of times, customer is himself asking us to order the part ahead of time to secure the supply so that the revenues are not disturbed or his supply is not disturbed. In those instances, we go and renegotiate from a contract which is already in place. It can fluctuate, depending on the specific negotiation that we have with the customer or the request that comes from a customer. I think it's best to see that number in relation to DIO, right? Whenever you see a DIO number, you should take that customer advance days. The net number is typically where that gives the right guidance.
Okay. Sir, last question from my side. In order to grow at a higher rate than the industry of 30% growth that the industry has, it has been estimated the industry will grow in the arch also more than 30%. I just want to know, what is the kind of order book that we are expecting to grow in the coming quarters? Growth of the order book.
Yeah. The order book we will see growth. It is hard to predict how much the order book will grow by because, like I said, few orders repeat on a quarterly basis, a few repeat on an annual basis. What we see is a significant pipeline on which we are working on. We also see the total contract value of the awards given to us significantly high. It is almost 2X of the current order book that we see. It is very hard to predict, but definitely we will see a growing trend in the order book. That is what we should look out for.
The order book is also dependent on customer-specific practices. There are certain customers who give a firm purchase order. Some of them give an award letter and then give a purchase order only for a specific period of time, et cetera. We have looked at some of these metrics together to get a view of what the growth is likely to be.
Okay, sir. That is it from my side. Thank you. All the best.
Thank you. The next question is the last question from the line of Bobby Jain from Falcon Investments. Please go ahead.
Hi. The current weak environment, how is that impacting your business?
The sectors that we engage in are, at this time, not seeing really any weakness as far as they're in demand. Again, our main focus is aerospace & defense, medical and industrial. It's a little bit different of a volatility compared to what you might find in a sector that's more consumer-based or maybe automotive, where if there's concern about weakness in the economy, buying patterns might change. Right now, these sectors that we're in, on the aero side, it has more of these long cycles. Right now, it's very much come out of a down cycle and is accelerating into the beginning of an upcycle. Then the medical and industrial piece, again, we're not seeing much weakness in those sectors when we speak to our clients.
Okay, got it. Given the emphasis India is placing in its defense industry, do you see the India part of the business growing faster than the global one?
I'm sorry, which part of the business? Could you repeat that?
The Indian defense part, given the emphasis the Indian government is now placing on the defense part, do you see that part of the business growing faster than the global one, or is there no difference?
I do not have a direct answer as to the growth rate of India defense compared to the global business. I can comment, though, that is an area where we see a lot of opportunity. We have a lot of business in that sector today. It is also an area that if we choose to, we can expand on it in that regard. As far as an opportunity perspective, that business has pretty strong opportunity. Just even in the last two weeks, there is a couple pings that we have already had on that sector.
There is different aspects to India defense compared to maybe other types of business where this might have higher ROCE because of the ability to turn inventory on that type of business, maybe get more client cash advances. But that business is more competitive and also can yield a little bit lower margin compared to our other businesses. It kind of comes down to having the right balance to hit the objectives of our business.
Right. When you-
At this point, our growth is not coming because of that.
Correct.
It's other things that are driving.
Sorry, I didn't get that. Your growth is not?
Yeah, sorry. Krishna was just providing the clarification that our growth and even our pipeline is not based on the India defense.
Okay. Right. Got it. When you accept any new business from any of your existing clients or new clients, is there a certain ROE metric that you look for or a certain margin that you look for? How do you accept new business?
For us, the measure of a business is really those two metrics right there. It comes down to the type of work that we do. As far as the profitability margin guidance that Shrinivas provided earlier in the call, where we are operating now, that is kind of the baseline, and that is what we see going forward. The ROE or the ROC on the business right now for us will be a bit lower, especially since we have had cash come in due to the IPO. Our target is to get ROCE up into the 20%-25% range for our overall business. That will probably take us probably a couple of years to get to that range.
Right. As investors, should we be looking at margins, operating margins or ROCE?
That is a debated question. I think one thing I would point towards is if you look at the PE ratios across the EMS industry, and you look at the companies that have been operating for decades, the companies with the highest PE ratios are usually the ones that it is directly correlated to the bottom line. We think there is a healthy balance, right? Are you creating more business value by saying, hey, I am only going to go after 13%-15% business and limit your growth, maybe have your ROCE suffer, or do you move purely into high volume consumer business, which is low single-digit profitability but takes very little cash. It has very high inventory churn, then you have a different type of model. We operate in the high end of that sector.
We operate in the higher margin side of that, and that gives us the high bottom line. There is a little bit of a trade-off on the ROCE, and I think there is a case to be made on potentially down the road to look at a little bit of trade-off on ROCE versus the bottom line. Our strategy right now is pretty much continuing really on the order book we have, on the pipeline that we have, which is based off our core sectors today, which should give the similar type of return.
More bottom line focused?
Yes, I would say definitely more bottom line, especially for a company like Cyient DLM.
Right. Okay. All right. Thank you very much.
My pleasure.
Thank you. Ladies and gentlemen, that would be our last question for today. I now hand the conference back to the management for the closing comments. Thank you, and over to you.
Thank you very much. Thanks for being here this evening. Obviously, this is the first investor call for Cyient DLM, and we look forward to showcasing the business a lot more and having these conversations at least quarterly going forward. As we've done with Cyient in the past, we will plan to also host an Investor Day for Cyient DLM investors so we can actually showcase, and as you know, in this case, there's a lot more to showcase our manufacturing facilities and capabilities, and we will keep you posted on that. With that, thank you very much, and speak to you next time.
Thank you very much. Ladies and gentlemen, on behalf of Cyient DLM Limited, that concludes today's call. Thank you all for joining us, and you may now disconnect your lines.