Welspun Enterprises (NSE:WELENT) Q2 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to Welspun Enterprises Q2 FY 'twenty seven Earnings Call hosted by three sixty one Capital Market Private Limited. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Please note that this conference is being recorded. I now hand the conference over to Mr. Selish Raja from three sixty one Capital. Thank you, and over to you, sir. Yeah. Good morning, everyone, and thank you for joining Welspun Enterprises Limited 2Q FY 'twenty seven earnings conference call. We thank the Welspun Enterprises team for giving three sixty one Capital the opportunity to post this interaction today.

0:52 Without taking much time, I hand over the call to Mr. Harsh to introduce the management, following which we'll begin the Q and A session. Yes. Over to you, Harsh. Thank you, Salish, and good morning. On behalf of Welspun Enterprises, I welcome you all to the Q2 earnings call. Alongside, I have the leadership team of Welspun Enterprises, led by Mr. Sandeep Gul, Managing Director of Welspun Enterprises followed by Mr. Soren Patel, who is the Managing Director of Welspun Michigan Engineers Limited followed by Mr. Abhishek Chaudhry, CEO of the Transportation Vertical at Westfun Enterprises followed by Mr. Lalit Jain, CFO at Welspun Enterprises and Ms. Sangeetha Tripathi, Lead Investor Relations of Westfun Enterprises. I hope you've had the opportunity to review the investor presentation that we filed with the exchanges yesterday.

1:40 The same is also uploaded on our company website. During the discussions today, we may be making references to this presentation. Therefore, I would request you to take a moment to review the safe harbor statement in our presentation. As usual, we'll start the forum with opening remarks by our leadership team, and then we will open the floor for your questions. Once the call gets over, you should you have any further questions, please feel free to connect with any of us. With that, I hand over the floor to our Managing Director, Mr. Sandeep Karik. Over to you, sir. Thank you, Harsh. Good morning, everyone. I thank you for being present with us on this call today. As we are close to the festival season, on behalf of Welspun Enterprises, we wish you and your families a very happy Dhanteras and safe Diwali.

2:29 On that note, let me begin with a few highlights of the first half of FY 'twenty seven. Talking about quarter two of FY 'twenty seven, our consolidated revenue for the period registered a growth of 32% year on year with an EBITDA growth of 122 year on year. With overall EBITDA margin being 39.5%. During this period, we also completed monetization of 51% stake sale in the Mukarbha Chaw, Vanipat project, reflecting our business model, which is asset light.

3:22 I would also want to talk about the business model that the company follows just to remind that take a project and record certain profit during the construction phase. And subsequently, we recognize certain profits during the equity sale or monetization phase. This as the investors who have been with us may have seen over the period that this happens at a regular interval when the projects are completed and mature.

4:16 I expect a similar situation to happen when we sell our current assets, which are Antasimaria Road project as well as the Saturnasapuram Nagapatnam Road project in future. Coming to the H1 performance. Our consolidated revenue grew by 11% year on year with a 53% EBITDA growth and consolidated EBITDA margin of 32.4%, well ahead of our guidance range. Historically, H2 has always been better period than H1.

5:02 So the H1 number should be seen as a base on which the second half shall build. This reflects the discipline we follow of efficient execution and capital recycling strategy. Moving to the balance sheet up. Financial position continues to remain strong. We have a healthy cash and a bank balance of INR 1,400 crore plus and our net debt to equity stands at 0.2x. The strong cash position gives Welspun Enterprise the flexibility to utilize the capital towards the right opportunities rather than merely chasing volumes.

5:52 Our prudent capital allocation approach also supports a better profitability profile. As of 09/30/2026, our consolidated order book stood at INR 18,700 crores approximately. This order book gives us good visibility and it supports our outlook for the rest of the year and years to come. Looking ahead, we anticipate H2 FY 'twenty seven to be stronger than H1 FY 'twenty seven. Factoring Pune Sherwood receiving appointed debt by Q4 twenty twenty seven sorry, my apologies, Q4 FY 'twenty seven, this keeps us on track and aligned with our stated guidance of 10% to 20% of revenue growth and EBITDA margin of 18 plus.

6:54 On the order book front, we are working towards the incremental orders worth INR 8,000 crores to 10,000 crores in this financial year. Touching upon Oil and Gas in a significant strategic development, we are happy to inform the Director General of Hydrocarbons, DTH, has passed an order approving the utilization of ONGC's existing facilities by Adani Welspun Exploration Limited, or AWEL, to evacuate and process gas from its Mumbai block on toll basis. This will substantially reduce AWEL's risk and capital investment and accelerate the milestones towards gas production first gas production.

7:47 We have revised our early development plan and submitted it to DGH based on the order issued by DGH, and we expect to get the approval soon. This development is expected to accelerate project development, optimize capital deployment and enhance early revenue visibility, which is targeted in FY 2029. A successful development and production will create an opportunity to unlock the value through monetization or revenue accrual. Now let me share some recognition, which we received this year.

8:40 Antasimaria Road projects received two awards, the Best Bridge Execution Award and the ICI Awards 2026 for outstanding concrete structure. This reflects our execution excellence in delivering complex infrastructure projects. On safety, we received three awards for HSE Excellence at IINA twenty twenty six. First being the Platinum Award for Dharavi Waste Water Treatment Plant, Mumbai second, a Gold Award for the Varanasi Aurangabad Road Project and third, a gold project for Welspun, Michigan's Meethi Darawi Tunnel Project four in Mumbai.

9:33 On sustainability, ESG remains integral to our business strategy. Our crystal ESG score improved from 55 to 60 in 2026. In addition, we also received the Circular Economy Leadership Award from the Center of Inclusive Social Development, CSID, and Hriday charitable trust recognizing our resource efficiency initiatives. With that, let me hand over to Avishek, who will cover our Water and Transportation businesses. Sarin will discuss the performance of West Palm, Michigan businesses, followed by Lalit, who will share the significant details on financial performance in greater detail.

10:24 Over to you, Abhishek. Thank you, sir. Good morning, everyone. Wish you a very happy Dantellas and a very happy Diwali. It is a pleasure to connect with you all once again. Let me take you through the key developments across our transportation and the water businesses, covering project execution, capital recycling and strengthening of our long term revenue visibility. I will also touch upon the key digitalization initiatives that we are undertaking to enhance operational efficiency and strengthen our organizational capabilities. Let me, first of all, begin with our transportation business. I am pleased to share that the divestment of the Antasimaria Road project is progressing towards closure, with the transaction expected to be reflected in our Q3 FY 'twenty seven financials.

11:12 This transaction is an important step in advancing our capital recycling strategy through which we seek to unlock value from operational assets and redeploy capital towards the new growth opportunities. This approach enables us to maintain capital discipline while creating headroom for investment in projects offering attractive risk adjusted returns. On our project execution front, the Varanasi Orangabad Road project has been completed and expected to receive its provisional completion certificate shortly. The Sanathampuram Nagapatnam project has achieved 90% completion and progressing towards provisional completion. Coming to the Pune Sheru Road project, we have made good progress on the preconstruction activities.

12:00 Topographical surveys and geotechnical investigations have been completed. Casting yards are being established at two locations. Design activities are progressing well and test piling has commenced at select locations. On the funding front, we have secured the debt sanction for DACRA, Union Bank of India and Punjab National Bank to the tune of 6,334 crores. Financial closure and the receipt of an appointed date are expected by Q4 FY 'twenty seven. With the key preparatory and funding milestones progressing, we expect construction activities together momentum during the end of the financial year. Going forward, our transportation strategy will remain focused on selectively pursuing high value, technically complex connectivity projects while maintaining a disciplined approach towards capital allocation, execution risk and returns.

12:56 Now moving on to our water business. Our focus remains on executing large scale urban water infrastructure projects while progressively building a portfolio of long term operation and maintenance opportunities. This enables us to strengthen our presence across the water infrastructure value chain while creating greater long term revenue visibility. At the Dharavi Wastewater Treatment Facility, which is our four eighteen MLD multilevel treatment plant, remains on track for commissioning by July 2027. An important aspect of this project is the fifteen year O and M contract that follows commissioning, which will provide long term recurring revenue visibility and strengthen the annuity component of our business.

13:43 At the Vandu 2000 MLT water treatment plant, excavation and civil works are progressing following the mobilization of the civil contractor. Execution had experienced temporary disruptions due to restrictions on the disposal of the excavated debris and temporary suspension of activities by BMC in view of Mumbai's air quality conditions. We expect execution momentum to improve as these restrictions ease. At the Pancharabur 910 MLD water treatment plant, which was secured in December 2025, initial mobilization has been completed and excavation activities have commenced. With key statutory approvals in place, we are focused on accelerating execution and progressing towards the targeted completion time line of April 2030.

14:36 On the Dharavi Ghatkopar Tunnel, as you may recall, we have received the court clearance in June. Since then, the Ghatkopar shaft excavation work is in progress and has reached 26 meters. The project remains on track for completion by FY 'thirty three. Lastly, on UP GelGevan mission, execution continues to progress well with over 80% physical completion across projects, thus keeping us on the track for substantial completion in FY 'twenty seven. Over four fifty schemes out of ten sixty eight schemes are already completed, are and are in trial phase or in the O and M phase. We expect the substantial scheme completion by FY 'twenty seven.

15:24 In the water vertical, we will continue to build our execution capabilities, selectively pursue technology led opportunities across the water and wastewater treatment value chain. Let me now briefly touch upon our digital transformation initiatives. Alongside expanding our project portfolio, we are investing heavily in digital capabilities to improve operational efficiency, strengthen governance and create a more integrated and scalable organization. Our supply chain management, digital initiative, Project Suction is now live, bringing procurement and supply chain processes onto end to end digital platform. Further, implementation of our eOffice platform and unified interface application architecture will strengthen governance, internal controls, data security and integration across the organization.

16:18 In parallel, we are developing AI led applications across critical areas such as quality assurance, safety monitoring, logistics planning and project progress tracking. These initiatives are aimed at improving project visibility, enhancing operational productivity and enabling faster, more informed data driven decision making. Our broader objective is to embed technology into our day to day operations and decision making processes, thereby creating a more efficient, agile and execution focused organization. To conclude, we remain focused on converting our growing infrastructure portfolio into sustainable business growth, improving capital efficiency and creating long term value for our shareholders.

17:09 Our priorities will continue to be disciplined capital allocation, timely project execution and building a stronger base of recurring revenues. With that, I would now like to hand it over the call to Mr. Soren Patel, Managing Director of Welspun Michigan, to take you through the performance and the key developments in our specialized engineering and tunneling business. Over to you, Soren, sir. Thank you, Abhishek. Good afternoon, everybody, and happy Dantiras to you all. Let me begin with our performance. Order momentum during the quarter was strong. Total order inflow to date is approximately INR450 crores contributed by three rehabilitation projects and one microdrunning project.

17:54 These include two World Bank funded pipeline rehabilitation projects from the Ahmedabad Municipal Corporation covering the Eastern and Western corridors in the city and a pipeline rehabilitation project from the New Delhi Municipal Corporation. Multilateral funded and metropolitan clients of this quality strengthen both our revenue visibility and the quality of our receivables. Looking ahead, we expect H2 FY 'twenty seven to show improved execution momentum as ongoing projects ramp up and recent orders mobilize. Beyond the order book, we are pursuing bidding opportunities of approximately INR 1,500 crores to 1,800 crores, which we are approaching with disciplined margin focused bidding.

18:41 For quarter two FY twenty seven, WELL reported revenue of INR 139 crore, EBITDA of INR 25 crore and PAT of INR 12 crore compared with a stronger base in the same quarter last year. For H1 FY 'twenty seven, revenues stood at INR $3.18 crore, EBITDA at INR 63 crore and PAT at INR 35 crore. This year on year moderation reflects the timing of order releases on select projects, which deferred planned execution into later periods. This is a phasing effect. The underlying work remains in our order book and with releases now progressing, we are moving to convert it. As of September 2026, our order book stood at 2,279 crores, including the INR995 crores from project from DJT or roughly three years of revenue at our current run rate.

19:37 It is diversified across tunneling at 53%, pumping at 21% and rehabilitation at 19%. Execution delivered several important milestones this quarter. Our main shaft construction for the DJT project has begun after all permissions were received in June this year and currently has reached a depth of 30 meters. In tunneling, we completed the 5.84 kilometer priority sewer tunnel Phase one drive from down Bosco to New Malarta IPS with a breakthrough of the machine on 10/09/2026. This was one of the most technologically challenging and demanding drives in Mumbai's sewage program. PST 1 is on track for completion by September 27 and the 4.6 kilometer PST 2 tunnel is also progressing towards the January 28 completion.

20:33 Our approximately 400 crore Miti tunnel project, which will divert the dry weather flows from Vapat Nala and Sapheth Poonala to the Dharavi base water treatment facility is also progressing towards completion by January 28. In addition to the three segmental DPM projects, multiple microdrilling packages in Mumbai are targeted for completion in FY 'twenty seven. In rehabilitation, the Gauravara mega drain project is nearing completion, almost a year ahead of schedule, a clear demonstration of our execution capability. The 15.5 kilometer Mumbai storm water drain rehabilitation project is progressing towards completion also in FY 'twenty seven. In Smart Ops, the 24 crore Chandrapakaraywa cleaning project is complete and operational.

21:25 It performed reliably through the Ekata Shiwari and the O and M contract runs through June 2027, giving us recurring revenues. We are also in the process of executing and completion sewerage treatment plants projects in Matura and Odessa. We continue to invest selectively in engineering, digital monitoring and automation to improve productivity and asset utilization. Our work in wastewater and air pollution technologies is building adjacent capabilities that expand our addressable market. Our medium term ambition is unchanged. Revenue growth of about 15% to 20% and EBITDA margins above 20%. Our order book, recent wins and execution track record give us a foundation to deliver against it.

22:15 With that, I'll invite Lalit Jain to take you through the consolidated financial performance. Over to you, Lalit. Thank you, Sachin Bai. Good morning, everyone. Wish you happy Dantiras and happy Gwalit. It is pleasure to connect with you once again. I will take you through our financial performance for Q2 and H1 FY 'twenty seven, followed by an update on our capital allocation and balance sheet. Starting with Q2 FY 'twenty seven performance. Our consolidated revenue from operations stood at $10.35 crores, up 32% year on year basis. EBITDA at INR $4.25 crores, up 122 percent year on year basis. EBITDA margin at 39.5% versus 23.9% in Q2 FY 'twenty six.

23:03 EBITDA at $3.51 crore, up 179% year on year. And PET at INR $2.96 crore, up two zero one percent year on year basis. The revenue and EBITDA include a gain of INR 194 crores arising from the completion of our 51% stake divestment in Mukherbhacho, Panipat project. The monetization aspect is a part of our ongoing business operations, which is aligned with our asset light strategy. On the H1 FY 'twenty seven performance, console revenue from operations stood at $180.08 crore, up 11% year on year basis. EBITDA at INR $6.10 crore, up 53% year on year.

23:49 EBITDA margin at 32.4% versus 23.9% in H1 FY 'twenty six. EBITDA at INR $4.73 crores, up 69% year on year basis and PET at INR $3.52 crores, up 77% year on year basis. Now coming to our balance sheet and grade profile. Our consolidated balance sheet continued to remain strong with net worth of INR 3,581 crore as on 09/30/2026. Cash and cash equivalents stood at INR $14.32 crore with net debt of INR $4.50 crore. As stated by our MD and A earlier, during the quarter, we should upgrade our long term credit rating to AA stable, while Nicarag continues to maintain its AA stable rating.

24:40 These ratings reaffirm our financial strength, prudent capital management and robust credit profile. To conclude, our focus remains on delivering profitable growth, maintaining balance sheet discipline and maximizing capital efficiency. With a strong financial position, diversified business portfolio and disciplined approach to capital allocation, we remain confident of creating sustainable long term value for our shareholders. With that, I would now like to hand over call back to the moderator to open the floor for question and answer. Thank you. Thank you very much. We will now begin the question and answer session.

25:26 Participants are requested to use handsets while asking a question. The first question is from the line of Anand Dasan. Morning. Am I audible? Yes.

26:13 Congrats on the deep set of results, sir. So my first question is regarding the PPT where you had mentioned about the oil and gas division. So could you elaborate on the project and vision, including the arrangement with ONGC and the roles and responsibilities of each parties and capital commitments? What will be the expected revenue and profitability contribution from this division once it commences? And what will be the peak revenue potential EBITDA margin for this division? Thank you for this question. I will be able to partly address this question because of some certain confidentiality issues. Coming to the DGH order that you referred, it is us order specifically giving what all facilities will be available for use to evacuate and then process the gas at the ONGC's Hazira plant.

27:14 The facilities that we can use are starting from their unmined platform at B1211P, which is about 30 kilometers away from my platform, which we are going to set up to evacuate the gas and the condensate from our block, MB Block, which we call Mumbai Block as well. And from there, it will take to the main processing offshore platform of ONGC called TCPP. Through after processing at TCPP, it will be carried over the SVHT pipeline to Hazira and processed at Hazira to give us a gas, which we can pumps directly into the grid of gas available at Hazira, both at medium pressure as well as high pressure.

28:14 So they have finalized the specialties that we can use under the policy of the infrastructure sharing, which the MOPNG had come out in June 2025. Now this specific order is allows us to move a substantial investment of capital avoided and moved it to more of a revenue expense, thus it derisks the business in totality. If you would recall the original plan that we had was taking a much longer pipeline to the shore. Now that we are using existing infrastructure, the capital cost is expected to go down by almost in the magnitude of $300,000,000 to $400,000,000 And since it is usage of existing infrastructure, it is also ensuring that we get a better profitability and early revenue can be obtained because the work itself has reduced substantially.

29:38 What I'm avoiding to respond to you is the exact number of investment as well as the revenue from it. As our EDP revised EDP, as I said, has been submitted to DGH and we await its approval, these numbers will get frozen at once that is approved by DGH, and I would be very happy to share with all of you at that stage. I hope I've been able to answer the question. Right, sir. But yes, what will be the revenue and profitability contribution from this solution for once it starts? So revenue is determined by two things. One is what we can produce and the average gas price that we expect.

30:30 Now revenue, given as we said, we are expecting somewhere around 0.6 Tcf producible gas as well as the about 20,000,000 barrel of no, sorry, 2,000,000 barrels of oil or condensate. So depending upon what pricing that you would want to select for the gas and the condensate, the revenue will be accordingly worked out. Since the DGH is still working on the approval of EDP, I am shying away from giving the exact numbers. Once the EDP stands approved, it will be more than I'll be more than happy to share it with you.

31:23 Sure, sir. That was helpful, sir. Sir, my next question is regarding the WEL, Western Michigan division. So we were expecting around INR 1,000 crores of revenue in this year. But if I look at the first half number, it was around INR $3.20 crores of top line, which we had recorded. So how do you see the second half in this division and the big book pipeline for this year? So as I explained, the year on year moderation reflects the order of the timing release. We are quite optimistic about how we see the second half. And considering that the orders have been released now, we are gung ho about trying to achieve what we had guided in our remarks last quarter. I don't see us falling short in terms of our ambitioning.

32:12 And we can assure you that we will try our best to either match it or exceed the targets that we had given. Right, right. So regarding this I think Sorry, I wanted to say is that they are expecting to definitely be in a situation of the growth phase rather than the degrowth phase that you have said for H1. Now whether we will be in a position to beat the last year's revenue targets by 5% or more than that, we can't at this stage clearly specify, but we are reasonably confident that the year and complete year will be a growth year.

33:08 And the temporary blip that FY 'twenty seven may not meet the overall medium term guideline. That notwithstanding, for an overall level for a medium term, we still stay with the guidance that we have given. Sure, sir. Yes. Sir, recently Chinese commerce ministry has announced export on tunneling. Could you be a bit louder, please, Anandeep? Yes, yes. So the Chinese commerce ministry has announced export turbine tunnel boring machines. How do you think this will impact our Michigan business such as Welspun, Michigan? So the impact on us is that you may have learned that a German company Herring Connect has opened up a massive factory in Tamil Nadu.

34:04 And they are the world's leaders in TBM manufacturing in terms of the kind of machines that we need to use to successfully execute our projects. We so far have not been buying Chinese TBMs at all. Our main source of TBMs has been Japan as well as Germany. And both of them have operations out of Thailand and now India. So we do not see any impact on our future project execution abilities because we are confident that the kind of vendors that we are sourcing from have the ability to deliver us our project machines on time. Sure, sir. That's helpful. Sir, my last question is regarding order intake we are expecting for the full year in our core business and the Western Michigan business.

34:57 So I hope the question is to the Welspun Enterprises. At a consolidated level, as I stick with the guidance that we should be in a position for FY 'twenty seven, be able to have an order book of about 8,000 to INR 10,000 crores. As I had said earlier as well in the last call, and I repeat, we expect all these orders to come in H2, and we are working towards that. Minus spillover notwithstanding, we expect it to be in the similar range. Right. Right. So in Western Michigan, sir, how much are we expecting in the half year? So, Welspun, Michigan, as I said, our current order book stood at INR 2,279 crores, which is roughly three years projected current run rate.

35:52 We expect that in the least, we would get anywhere between INR 700 crores to INR 1,200 crores of book orders that we will add to whatever we think we will be completing in this year. Right, right. So one last thing, when the transfer level you had mentioned eight to 10,000 close, in which sector will be able to see this? In water and So wood, we expect the orders to be in the water space, the rehabilitation space and the tunneling space. We also expect that either in the year by the year end or early next week, the transportation orders should also start coming in.

36:38 In the FY 'twenty eight, coming to FY 'twenty eight, we expect orders to be kind of across all verticals that we operate. Giving a mix at this point in time will be a bit difficult. But those are expected to be across all the three verticals that we operate in. Sure. Right, sir. That's my question, sir. Thanks a lot, sir. Thank you, Anand. Thank you very much. The next question is from the line of Sarika, an individual investor.

37:39 Please go ahead. Good morning, sir. Good morning. Thank you for this opportunity and congratulations on a good set of numbers. My question pertains to the order guidance that you have given. We've spoken that going ahead, we will be adding around INR 8,000 to INR 10,000 crore of orders in this financial year. So just give some light as to which are the sectors under which we'll be getting the orders, what is the pipeline looking like? And more color on the order book and the bid pipeline was there. So in the balance of this year, I expect the orders to be more focused on water and few in the rehab or tunneling space.

38:31 Water will be primarily the driver of the order book. The order books could be in the water space also expected to be both in the transmission and treatment area. Okay. Okay, sir. Thank you. Thank you. My sorry, sir. Another question that I have is with respect to the Pune schedule road project that we are doing. While I understand that there is a debt tie up that has been talked about, can you give more understanding as to what would be the revenue for this year and the next year FY 'twenty eight? So as I said, Sareka, we are expecting the appointed date to be in the Q4 of up to or by Q4 of FY 'twenty seven. Depending upon that date, we expect the revenue from the project to be in the ranges of 300 crores to INR 400 crores this financial year.

39:49 And so going forward for '28, '29, any understanding, well, not the hardcore numbers, but still what is the kind of revenue range that we can expect? As of the current forecast, we of the appointed date, we expect the revenue in the FY 'twenty eight to be in the range of crores to INR1200 crores from Pune Sheru project. Thank you, sir. Thank you. Thank you very much. The next question is from the line of Pramod Kumar from Evergreen Capital. Congrats on a great set of numbers. Sir, given that 1H has been roughly around INR 1,800 crores, do we still stick with the guidance of 10% to 20% on the top line?

40:44 Yes. We are sticking with the guidance of 10% to 20% revenue growth. And as you would recall, most of the time, H1 reflects about 40% or there around of our revenue, and the balance comes in H2. We expect the similar thing to happen. We are reasonably confident that we will be in the guided range of 10% to 20% on the revenue growth at a consolidated level. Perfect. Sir, on the margins, do we still stick with the 18% plus guidance and what would be the drivers for the margins to stay around 18%? So as I said, I maintained that our current margins are much higher, even if we take away the recognition of our sale of NCP, our margins are in the ranges of 20% plus.

41:51 However, we I would the guidance that I maintain is 18% plus is what I would always continue to guide depending upon how the supply chain pans out and how things happen. We will definitely we are absolutely confident of making 18% plus, whether the plus will be 2% or 4%, I don't know at this point in time, and I would not want to comment upon it at this stage. All right. Sir, just one last question. Could you just highlight on the broad contours of the under some of the idea deal? Is the enterprise value and what is the status?

42:40 So I think we guided our that it is going to be in the ranges of about INR 200 crores for the equity plus plus plus the NCA and the debt will transfer INR $7.64 crores of debt will transfer alongside with it. Thank you so much sir. Thank you. Thank you very much. As there are no further questions, I would now like to hand the conference over to management for closing comments.

43:39 Thank you, and thanks all of you for joining us today. To sum up, I would like to reiterate that we remain committed to creating long term value for our stakeholders with continued focus on improving return on equity and return on capital employed. We hope we have addressed all your queries. Should you have any further questions or feedback, please feel free to reach out to our CFO or Investor Relations team. Thank you and have a good day and great festivities ahead. You very much. On behalf of Welspun Enterprises Limited, that concludes this conference.

44:25 Thank you for joining us, and you may now disconnect your lines. Thank you.