Q1 19/20

Jul 25, 2019

Quarterly report

Good morning and a warm welcome to the 1Q FY 'twenty conference call of tube investments. First off, Harteir's congratulations to the management team for, a stellar set of Q1 results, I mean, challenging times. Today from the management team, we have, mister Eswellayan, Managing Director, Mister Mahindra Kumar, CFO. So, without further ado, I shall hand over the floor to Mr. Valay for his opening remarks. Postpaid, we'll open the floor for Q And A. What are you, sir? Thanks. Thanks, Satya. Thank you. Thanks, and good morning, everybody. Thanks, Aditya, for the, guidance. Basically, just want to give you a quick update on the quarter. Overall, we've had, a very good quarter. The revenue though has dropped, in Q1 versus Q1 of last year. And that's predominantly been driven because of the growth in the auto industry. However, in terms of PBT performance, we've still, maintain a fairly strong performance. Our PBT before exceptional items stands at 107 crores which is a growth of 36 percent over the same quarter last year. And this is excluding the gain of 9 crores. So basically, we had, again, of 19 crores because we surrendered Chanticleer shares in the buyback. Just before Nirmala Sitharaman kind of put in a good buyback tax. And So basically, our PBT, after the including the exceptional items is actually at 126 crores. So overall, that performance has been fairly good. In terms of ROCE, we basically improved to 23% from 18% in the quarter of the previous year. And this is all, all the numbers percentages we report are excluding the exceptional items. So they don't include the 2019 crores. In additional income from the Chantigas buyback. And our free cash flow to PAC was at 120% for the quarter. TII's revenue for the quarter, like we said, was slightly lower. And the path basically at a stand alone level was at 88 crores versus 54 crores in the same quarter last year. In terms of the individual businesses, the revenue for engineering was at 657 crores versus 717. The, PBIT for that business was 67 as against 5% in the same quarter last year, a growth of 3%. And, the ROCE for that business is at 40%. Cycles and accessories had a revenue drop of 23% compared with the same quarter last year. We had lower institutional volumes and kind of, the growth in the trade market as well. However, the, profit before interest and tax for the quarter was at 12 crores. This is again, 7 crores, and this is basically because some of the cost control measures we've started taking in that business. And, the ROCE was at 22% for that business. And finally, metal form parts revenue was at SEK3.50 crores compared to SEK3.12 crores in the same quarter last year, a growth of 12% BBIT at 34 versus 26. And, growth we've had growth in both railways, industrial chains, and fine banking products. The ROCE, that division is at 29%. So on a consolidated basis, we basically had $13.84 crores in revenue and a pack of $79,000,000. Chanticleer is basically had a revenue of $72 crores versus $62 crores in the same quarter last year. And our path at Chantee was at $9,500,000 versus $8,500,000. So I will stop with that and turn it over to you for questions and any discussions. So should you open the floor for question and answer session? Yes, absolutely. Thank you. We will now begin the question and you. Ladies and gentlemen, we will wait for a moment while the The first question is from the line of Mead Jain from Priti Finmark. Please go ahead. Good morning, sir. Congratulations on a good set of numbers. I have a couple of questions first regarding the cycle business. Our revenue has gone down by 23% and our profitability has improved So going forward, I mean, our main focus will be on cost rationalization or like to increase our revenue for Yes. So and sorry, Mitra, which which organization are you with? Britvieve in Mart. Oh, Britvieve, okay. Yes, Sameet, thanks for the question. Definitely, the focus is not going to be on significant revenue increase because basically, the market is not growing at a free pass rate. So we get into a revenue increase game. Basically, it'll end up being a bit of a price war and that's kind of not our interests. And so basically, our focus is just going to be on maintaining good profitable or getting to good profitability in that business. As you mentioned, the last concourse that we are developing more suppliers from 1st generation from the outside market, like mostly from China, So that part has been looked into this quarter. Like, have we gone more suppliers for our steels, for our cycle business? No, so that is not for the cycle business. The supplier's discussion that we had last quarter was around steel suppliers. Right. And that is for the tubes business, the BPI. Okay. Yeah. That's not for the cycles business. Okay. And on the engineering business, like, the auto are not doing well right now. And what is your take on this outlook regarding the auto sector? Yeah. So I'll kind of, you know, I always, my standard answer this is there's no point in me giving an outlook. My outlook is, has about a 50% chance of being right. You might as well flip a coin and decide what the next quarter is going to look like because we have no idea. So I don't think anybody has any idea. Everybody is just flipping coins. So our focus is, you know, if the market and if we're not at the peak of our demand, our focus is basically on how we can improve internal performance. So our focus now is turning more towards how we improve on productivity and quality. And when the market picks up, we'll be ready to kind of take, and kind of grow with it whenever it does. But I have no prediction as to when it's gonna turn around or what is gonna happen to it. Okay. Okay. And I don't think there's any point in any prediction. Right. On the large diameter pipes, kind of turning the volume sales and growth? Yes, I think we should, I don't know how we're doing the questions in the queue, but I don't know, usually what we do is one question and then kind of, it goes back into the queue. I don't know if the moderator is kind of how we're doing it. Sure. No problem. But you can come back into the queue, meet and kind of ask the question be happy to answer. The next question is from the line of Shaulo Asija from Invest Research. Please go ahead. Thank you for taking my question. So I want to know a debt position as a today, like, after this quarter, what is it? Net debt, is it about C387 crores? BRL 307 crores. Net debt. Net debt. Okay. So basically, we're kind of offsetting we have some NCDs which we can't pay back. So we're offsetting that with the investments we have. So net debt is a 3 year reserve. Okay, sir. And what is the CapEx during this year will be, what will be the CapEx? The planned CapEx, I think, will be in the range of about between 2.50 and 2.90 crores. And it will be regarding which segment or it is a total? Thank you. Thank you. Thank you. A reminder to all the participants Please restrict one question per participant. The next question is from the line of Nikkett Shah from Motiran Northwell Securities. Please go ahead. Hi. This is Nikhaya from Motorola Asset Management. I had just one question. Just wanted to understand, in this quarter, the margin expansion that we've seen in some of the businesses. How much role has the product mix to do with that? Because I presume in certain businesses like automotive chains, you know, we have slightly lower margin and effect closer to 1% or 2% kind of margin. And if that would have given automatically the margin profile would have looks slightly better. So just a sense on mix versus the margin. Yes, you are right. Obviously, kind of there is some effect of mix, and especially So basically, there are a couple of businesses where we're trying to focus on a higher mix profile in general. And, that includes both the fine banking business in the auto change business as well. The big challenge on the tubes business, this quarter, we've done a good job of basically keeping the mix at a fairly profitable in a fairly profitable situation, because there, there is pricing pressure as there because everybody has supply available. The, but in general, I would say kind of, there's obviously kind of 3 factors, that have driven performance for the quarter. It's been a combination of mix some of the costs and the productivity actions that we've taken, and the third is being able to manage, you know, our sourcing fairly effectively so that we didn't have to kind of take, hit set that end. So I may squeeze one more question. If you can just highlight some of the new initiatives on new businesses that you plan to do in an asset light model However, those started, if you can just highlight a few of them that you would like to get into, that'll be very helpful. Yes. So I think the two businesses that we've talked about and kind of have launched, one has been, TMT business where we've gone into TMT bars. The second business is the truck body business. And I think I always get questions on these new businesses. What you have to realize is kind of, you have to think of them as start ups. And so there's no point in kind of, I mean, so I don't want to get into the habit of kind of saying every quarter, you know, what has the performance been we have to give these things a little while to grow up. So they're they're tracking, you know, and, what we will likely do is, you know, when we're ready to discuss them. Performance wise, we will get back to you, but we don't want to start getting into discussing those businesses and growth those businesses quarter on quarter. The one area we started to look at, obviously, because everybody looking at it. There's the whole space of electric and what we can do there, but it's still early days for us. So once once we evolve something there, we'll discuss it with you as well. Great. Thank you so much, and I'll come back. Thank you. Thank you. The next question is from the line of Sagar Parekh. From the finance. Please go ahead. Yeah. Good morning, sir, and congratulations for incredible numbers, in challenging times. So firstly, cycle business, the margins have improved from 2 to 4%. Just wanted to get a sense from you as to, you know, how much I mean, in spite of decline in top line, you grew so much so well in margins. So, in terms of sustainability of these margins, going forward, are they sustainable or there was an element of one off? No, it's definitely sustainable in our minds. Okay. So 4 to 4 and a 4 to 5 percent EBIT margins is definitely sustainable in spite of, you know, this kind of top line run rate going forward as well. Yes. Yes. Okay. And secondly, on this electric vehicles, you mentioned that you're looking at it closely now, in terms of new businesses, but, is there, apart from, let's say, auto chains, in our old businesses, is there any risk to our any of our products going forward if electric vehicle kick start? No, the predominant thing is auto chains. And besides the auto chains, All of the other businesses are fairly safe in an electric world. Sure. And how big is auto chains, as a percentage of our total sales? We don't discuss that as segmental revenue, but obviously kind of the overall, I mean, the tools, first off, the OE and the aftermarket businesses will be a very differently there because, the installed base is fairly huge the aftermarket is growing at a fairly good clip. Okay. If anything, depending on the rate of penetration, the OE business is what it gets hit. And, the OE business in in auto chains is less than, I'd say it's about, it's, yeah, it's definitely less than 10. Percent of our overall revenue, but perhaps a bit less than that as well. Got it. And you mentioned about this pricing pressure CNN And Tubes business because of, obviously, the industry not doing well. Any risk to our margins going forward because of this. See, it's, like I said, you know, I mean, like, I'm always, the what the market kind of presents going forward? Nobody knows right now. Right? Right. So, you know, if, a lot of people are saying second, I was gonna get better. Then now are saying second. I was not gonna get better. So honestly, that is not what we're getting into. Right? All we're saying is if there's pricing pressure, then I've gotta do something to basically ensure that we deliver you kind of, you know, PBT growth, right? And the only thing you can do is kind of improve on the productivity side, improve on the quality side, improve sourcing, improve all the other things if we are under pricing pressure. So we have to be ready to do both. We have to be ready to take when growth is available. And we have to be ready to basically, you know, manage and kind of improve our margins if growth is not available. So that's really kind of how we're trying to shift focus internally. Will we get it perfectly the first time around? Probably not. But We are trying to learn that and practice that and everything we do. Sure, sir. Great. And all the best going forward. Thank you very The next question is from the line of Mr. Aditya Baghul from Axis Capital. Please go ahead. Mr. Viraj, just a couple of questions from my end. Firstly, broadly on the auto sector and our key customers, almost 50% of our total revenues come from or are some way linked to the auto sector. So have the initial conversations begun with regards to BS VI Implementations and what all changes could we implement to ensure that we gain there. That's question number 1. And question number 2 is, sir, if you can talk a little on the export of what it is and how the export segment has performed in the engineering segment, both from a European and the Asian next? Thank you. Yeah. The, so I think the, if you think of, 1st BS VI, right, there are 2 sets. Obviously BS6 most guys are adding for April 2020, and we've been working, So in a lot of cases, our key components like the front folk tubes are announcing significant change in that product. And I'll kind of it. A lot of it tends to be in kind of the drivetrain and other components that are what are changing. So the less impact there for us. The other area obviously is, if we look at you were asking in terms of export and sorry, Aditi, I missed your question. In terms of export, you're saying, is that an opportunity? Is that your question or No. So what I was wondering is last, I mean, the last few quarters, we've seen a healthy growth in exports. Just wanted to get your view on how we are looking this, both from a European point of view, where we have some key customers. And last quarter, you talked about some, customers in Asia as well. Yes. So definitely exports is still our biggest focus area, right? We have to start developing new products, that we can start exporting both in the tubes business and in the change business and in kind of in our time banking business as well. So all of the businesses have a huge export trust, and that's what we're putting kind of significant effort against, both on product development because that's the first thing. So though it won't result in immediate kind of growth, we're starting with product development so that we can kind of then, get sustainable growth in the future. And like I said, in the Asia market, we've had good penetration because 2 wheeler penetration is, is there in Asia as well. But we're also pushing heavily into into Europe. So both of those trucks continue And I would say that that by far is the biggest focus right now for the company. Sure, sir. And if I may just squeeze in one more question. Can you share some outlook in terms of what is happening with the railway segment in the metal form? Yeah. So railways is doing very well actually. We're seeing a lot of good growth in that segment. And it looks like, you know, with a new regime or should I say the continuing regime, they've really kind of come back and really want to push that business at a very rapid pace. So we're quite bullish on that business and the growth opportunities it presents. And it has been doing quite well for us the last quarter, and we think that this will sustain. As a matter of fact, basically kind of one of the biggest things that have helped offset and kind of helped us kind of grow from a growth perspective has been kind of improved performance from railways and industrial chains and fine banking and all of the non auto businesses that we have. So we're definitely looking at seeing how we can start growing those businesses more aggressively. Great, sir. That's very helpful and best of luck. The next question is from the line of Sham Sander Seeram from Sanderam Mutual Fund. Please go ahead. Hello, sir. Morning. And congratulations on excellent performance in the quarter despite very challenging circumstances. So on the metal forming division, we have seen growth this quarter despite, I would presume the OE change on the auto side should have seen a strong decline. With sub segments, you did talk about railways Other than that, on the door frames business, also has there been a good pickup from Hyundai, if you can just just give some color on the subsegments that have driven this growth? Actually, that we've contributed to the largest, and like we put, like I told you in the note, it's been railways, industrial chains, and fine blank Right? Industrial chains, is growing significantly both domestically and overseas We see that as a continuing good opportunity going forward. Fine Blanking, we're getting more customers and our existing customers are growing very well with us. And so that's seen significant growth compared to last year as well. So honestly, those 3 are the 3 largest growth areas in metal forming. You know, Hyundai has always been consistent with us as I've been our other doorframe customers. So that business continues and it's a very good relationship that we continue to, we would like to continue to develop as things go forward. Right. Sir, on the industrial change, business, just continuing on the prior thing, on the industry same business, I mean, is it you're seeing good growth because of better utilization and the factories what is contributing to this, sir? And this is largely the new product. It's new products. There are all kinds of new products in that business that are growing fairly well. Okay. And this will this will be aftermarket? Yes, sir. No, it depends on the kind of application. It can be OEM as well. Some of them are OEM applications and some of them are after talk. Okay. Okay. Understood, sir. Understood. Understood. So broadly on the aftermarket business between steel and auto. You did mention auto continues to grow well, but if you can just give some one numbers, is it like 10% to 12% growth on the aftermarket change business, both auto and industrial? We check. We'll try and see if we can get your growth numbers. If you just give us a minute, we'll check. Yes, in combination, it will be 10%. Okay. Okay. Okay. And the industrial would have been, could have grown better. Is that a bit of a problem? We won't get to that level of granularity. Okay. No problem, sir. No problem. So on fine blanking, sir, on fine blank side also, we have, I mean, auto constitutes a good portion of that business. I mean, you did mention that that business has seen good growth. Is it new customer addition or new products that have contributed to the growth, sir? Yeah. It's been, both. So, obviously, we have got new products and new customers. And like I said, there's also growth with our existing products and customers. Because some of it though is dependent on auto domestically, some of it is also dependent on auto exports. And we also created additional capacity recently. That's also right here. Okay. Okay. Understood, sir. Understood. I understood. Is it done? Sorry to interrupt you. Yeah. I'll come by and. Next question is from the line of Abhishek Ghosh from DSE Mutual Funds. Please go ahead. So just wanted to understand one thing that, what's how are you looking at your CapEx given the overall slowdown and other things? Is there any rationalization into that? No. Yeah. I think, already, there's an overall slowdown. That's the right time to spend. So our plan for the year, I will say we will stay intact. I mean, we'll wait, you know, like, I guided. It'll be somewhere between the 2502 D. I don't think we'll I don't think we'll slow that down because I honestly feel kind of where it's focused. Right? Steven, we're not spending you know, there's an earlier question kind of on, you know, on auto chains and stuff like that. Right? So it's not like we're spending capacity on We're not we're not spending we're not putting new capacity in the ground in auto change and things like that. Right? So, basically, our focus has been on how we can get into businesses that are, in our minds kind of going to grow with us in the future. Sure. And so those businesses we want to invest in, so we won't slow down on those businesses in terms of investment. Okay, okay. And in the metal form division 4th quarter, we had seen some amount of margin drop and again, we're kind of clawing back. So it's a function of replacing with OEMs or it's a function of more of aftermarket coming through? How should we look at it? Segments also. Okay, mix of segments is differing this time. Some of these growth segments like our MDS plan, they have started growing well in the current quarter. Okay. Okay. And just one thing, everybody's been talking about, you know, adversities because of photo and other things, but I think adversity also at time bring in a lot of opportunities. So from your segment, particularly maybe from engineering because of lighter tubes and other things, do you think EV can all come out as an opportunity for you guys? Definitely. I think there's no shortage of opportunities right now. And definitely, I think EV is an opportunity, a huge opportunity. Sure. And if you can just lastly help me with the exports growth for the quarter, We'll get you that number. On the whole, it was about 24%. Okay. Yeah. Thank you so much and all the best. The next question is from the line of Chetan Genoria from Alpha Credit Advisors. Please go ahead. Hello, sir. I just one question I wanted to ask, what has led to the decline in our other expenses for our other expenses have declined both in absolute terms, both compared to the June 18 quarter and the previous quarter. So what is the factor that has led to this decline? Thank you. Yes. So basically that is part of the, I mean, kind of focus we've also had in cost reduction, both manpower costs and fixed costs have come down. And and and our logistics costs as well. So those 3 are kind of we talked about some of those initiatives we were driving last time. So those 3 of all kind of begin to kick in and we have kind of, we have managed some of our manpower costs as well. Okay. So, so is this likely to be the run rate going, right, or like this cost savings would we'll, keep, ahead of the deposit. Okay. Okay. Chaitan, do you have any follow-up question? No, no, no, no. Thank you. The next question is from the line of Agastadavi from COO Capital. Please go ahead. Thank you for the opportunity, sir, and congratulations. Sir, most of my questions have been answered. I had one broad question. In autos and in railways, can you describe a bit about the range of products you already have and what you plan on introducing? To the extent you are comfortable, I just need to understand what are the sensitivities we have to, let's say, OEM sales versus aftermarket, and also 2 wheelers, 4 wheelers series and, off highway vehicles and also a similar breakup in railways. So, if you're not comfortable sharing the actual product range, if you could give some indications, how you are, I mean, where you are aligned more comparatively in which vertical? Yes, so obviously kind of that's fairly granular. I mean, think the to give you a broad sense, you know, in auto chains, we do, we do drive chains and cam chains, then we do industrial chains. So the industrial change, obviously, has nothing to do with the auto business. And, then on the tube side, you know, one business is a tubular front fork business, which goes into 2 wheelers. But then there are a lot of other businesses and tubes The report or annual report also for the list of Yes. Actually, our annual report has a pretty decent listing of what you're talking about. So I think that's probably the best source for need to do it on the ground. I was more thinking about quantification, but, perfect. So I'll just speak with that. We won't quantify that. We won't quantify that product. Okay. Okay. And so for Railbase, sir, any new areas that you're looking to enter, you sounded positive on it. So any other like expansion? So, definitely, we're doing more and more products. We started off previously, we are focused just on ICF here. Now we set up a new facility that is close to MCF in Birelli and we started supplying them and that facility is beginning to mean, it's just carried off from this quarter, but we feel fairly bullish about that facility continuing to scale as well. Okay. So, thank you very much. We're also getting into, but also supplying components for the Metro business now, and that's beginning to pick up well too. Okay. So if I can squeeze one last question, sir, last quarter, you were mentioning something about a target growth rate of around percent for this year. Obviously, it is not under your control because external environment is so bad. And I agree that it is unpredictable. Officer, but you also guided towards a pathway towards 10% margins. So, is that dependent on volumes more or value more? I mean, can you throw some light there? Because as you said, your cost saving exercises won't stop your new product addition exercises won't stop. Your CapEx is clearly not stopping. So, is there like how mature how much of that 10% light path is addressed, if at all? I think I've articulated this. We talked about it a bit in the last call as well. See, broadly, the point is this, right, like, you, like, you, yourself, articulated some of the sales growth will be in our control. Some of the sales growth will not be in our control, right? We can launch new businesses and we do believe that those between the new businesses and growth in the existing businesses, we can hit those growth rates. But clearly, it is dependent on markets, right. What we are first focused on is kind of delivering delivering year on year profitability growth, right? So a profit, a bottom line has to grow year on year. That plan is intact, right? Now that plan has to happen, whether the market grows or the market doesn't grow. Right? I've always articulated that in the in years, that means for the next couple of years, we're going to get more of a kicker from improving our PBT to sales margin. And in the out years, we'll get more of a kicker from improving, increasing our sales. So that thesis remains intact and that's what we're focused on. And congratulations. Thank you. Thanks again. Thank you. The next question is from the line of shyam Sundar Sreedharam Sandra Mutual Fund. Please go ahead. Yes. Hi, sir. Thanks again for the opportunity. Sir, on the both side, I mean, we are continuing to see very good growth. What what, if you can highlight some of the drivers that are leading to this, I understand it is mostly from the engineering side, the tubes business, but if you can just elaborate on your, the post strategy that we have that we are following now and where do we want to be in terms of, an export perspective? Yeah. So I like like I said, right? I mean, our first target is, I mean, definitely our intent over time is to bring exports to, you know, kind of north of 30% of but that will take a while begin given that exports are so small for us right now. Right? So the two businesses right now that are kind of that we export in our engineering business and our industrial chains business. Both have seen good growth compared to the last year. And both were heavily investing in exports. And like I told you earlier, a lot of that investment is going into new kinds of products that we're developing. Right? So these are products that we've never done before, but which are large globally. Not so present in India. So there are lots of applications in both industrial change and engineering. And we're investing significantly in that product development because we know that, you know, there are some products out there that are like tubular front front fork, for example, on a global basis, right? And our intent really is to get into products like that and kind of, you know, try and get a global market share that's similar to what we have in some of these products in India. And our belief is that we will be able to get there. So that's why we're investing in the product development. And every year, we hope to see, I mean, ideally, we like to see kind of north of this 24% growth. Part of the reason for the 24% growth only in exports this year is because the exports markets are also down. But we think that this market, I mean, this will pick up as we go forward. Right, sir. So, on the export side, are we placing local suppliers or how does it work, sir? Because I mean, I would presume anywhere there would be a good pricing differential Are we displacing local suppliers there? And, is that a reason how, we are growing up and gaining share of business? Yes, it is. The Chinese are there, but luckily for us, the Chinese are not there in these two spaces as much. In the smaller, like, you know, when we get to the smaller chains, the Chinese are there, but the larger industrial chains, we don't see the Chinese as much. And similarly, in our engineering business, we don't see the Chinese as Right. So how do we, I mean, do we have a separate business development team in terms of the, our organization structure. We have separate, you know, team and that looks after this. Yeah. It's a whole different business unit. So I think, Shyam, like I discussed the last time we've broken down at 18 business units. Correct. And exports is a separate business unit. Exports to the separate business unit. They have an office in, Belgium, you know, for Europe. We have, I mean, we cover Asia, And basically, it's a separate BU that's only, you know, 100% focused on that. Understood. So if I may squeeze one more question on the utilization front between capacity utilization across the different business units, some broad ballpark numbers, if you can Yeah. Yeah. Yeah. We've got enough capacity right now. That's not the challenge in this year. Correct. No. No. I just have to. Oh, I just have to. Yeah. There's enough headroom there. Oh, I I'm not saying capacity constraints, sir. I would presume there would have been a fall in the in the utilization levels. I mean, how how is it between the change? 70 to 75%. On the change business. Yeah. And engineering. Okay. Okay. Okay. Understood, sir. Understood. Thank you. Thank you, sir. Thank you. The next question is from the line Raghawi from BNK Securities. Please go ahead. Hi, sir. Thanks for the opportunity. So I've got just one question. Out of the 2.20 bps gross margin expansion in the current quarter, how much of the portion is sustainable going forward? It depends how much you have got from the steel price decrease And what is the sustainable portion? So, first of all, we don't discuss at that level of granularity. And, I think to, in our mind, we have to sustain at least this much. Right? So your question is, are we going to be able to sustain it in the next quarter? It outlines we have to, right? So, when you say, I think, I think, there are too many factors that move every quarter to kind of, you know, to talk about what is sustainable and what is not, right? So what you have to be able to do is be able to sustain a bottom line growth number, which is what we're focused on now. Thank you. The next question is from the line of Jagar Schwab from Financial Research Technologies Private Limited. Please go ahead. Congratulations, sir, and excellent set of numbers. Sir, would you like to Should you would you like to shed some light on the another new division so that you're looking at the automotive vision and other vision system, sir? Yeah. Like we said, I mean, we started construction of that facility. It's gonna be at least still, it's gonna take, at least till the end of the year to get that facility up. So we started construction. Gotcha. So I mean, it'll reflect timing more so in FY 2021 and maybe throw some light in the quarters going ahead, sir, regarding the opportunity and etcetera? Absolutely. First let's start making something and selling something and then we can talk about it. Thank you very That was the last question for today. I will now hand the conference over to Mr. Aditi Abigal for closing comments. Thank you. A big thank you to the management team for taking the time out. Mr. Weline, just one question from my end, if I may. We've talked about some, inorganic growth, maybe in distant future, can you maybe discuss some key attributes of the targets that you might have. I mean, what what is it that you would look for in a key target? Yes, it's a good question. See, basically, what we said is first, we have to bring down our leverage. So we're not fully deleverage yet. We're at 87 crores at net working capital is about 3.25. But first, we have to bring down our leverage to under net working capital. Once we're there, then, you know, and by the way, kind of in general, we've been opportunistically just looking around. What we what I think will make sense is kind of, you know, distressed deals that offer kind of a turnaround opportunity. One of the things we feel we are decent at is kind of taking an entity and improving its profitability. And if we have a strong balance sheet then we'll basically take a look at the stress deals where we can kind of improve its profitability. That is one segment. And then obviously, the 2nd segment is something kind of that, can offer us the opportunity to get into into export markets or markets that are like that fits the criteria and we talked about earlier, right, which is B2C versus B2B exports, import substitution and fairly asset light. So in both ways, it's not like we're in any rush It's like I've always said, it's like you guys and investing. You have to be patient, and, we are patient But if a good distressed opportunity or something else like that presents itself, we're definitely open to it. On behalf of Access Capital, thank you for taking the time out, sir. Would you have some closing comments? No, Aditi. I think that's great. We still kind of, you know, like we've always articulated kind of our focus is going to be on how we continue to improve the bottom line for this company. We have to kind of show that we can compound profit, I mean, profit growth you know, on an ongoing basis. And that thesis for us remains as intact as ever. And we, continue remain very confident about being able to deliver that thesis, to the markets as we go forward. Thanks, Aditya. Thanks so much for having us. Thank you very much. On behalf