Ladies and gentlemen, good day and welcome to the Q4 FY 2025 earnings conference call of JNK India, hosted by IIFL Capital Services 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. 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. Akshit Gangwal from IIFL Capital Services. Thank you, and over to you, sir. Thank you. Good afternoon, everyone. On behalf of IIFL Capital, I welcome everyone to JNK India's 4Q FY 2025 earnings call. We have with us today Mr. Arvind Kamath, Chairperson and Whole-time Director, Mr. Pravin Sathe, Chief Financial Officer, and Miss Annie Varghese, Senior Manager, Investor Relations. Without further delay, I will now hand over the call to the management for their opening remarks, which will be followed by Q&A. Over to you, sir. Yeah. Thank you, Akshit. Good afternoon, everyone. I'm Arvind Kamath, Chairperson and Whole-time Director of JNK India. Thank you for joining us for our Q4 and full year FY 2025 earnings call. Your continued trust and interest are highly valued as we complete our first full year as a publicly listed company. Our journey over the past five years highlights the strength and resilience of our business. Since FY 2021, we have expanded our order book from INR 4,436 million to INR 10,819 million this year. This is a compounded annual growth rate of approximately 65.7%, representing more than a seven-fold increase. This order book and the order inflow of INR 9,327 million, which is recorded in this financial year, FY 2025, are the largest in the company's history, marking a key milestone and reflecting strong customer confidence on JNK India. Over the same period, revenue has more than tripled to INR 4,950 million, reflecting a CAGR of 37.7%. These figures demonstrate consistent demand and effective execution across our markets. Returns have moderated over the period with ROCE at 16.6% and ROE at 8.6%, reflecting margin pressure despite growth in scale. Importantly, we have driven meaningful cost efficiencies with employee expenses as a percentage of revenue improving from 23.6% in FY 2021 to just 9.2% in FY 2025, illustrating disciplined cost management. Our manufacturing facility in Mundra has consistently delivered quality and capacity enhancement, supporting project execution and timely delivery. We have strategically expanded our product portfolio to include cracking furnaces, incinerators, and flares, broadening our solutions for the refinery and petrochemical industries. Looking ahead, our focus remains on executing our strong order book efficiently, improving margins through cost control, and growing renewable energy offerings. We are confident about the opportunities presented by India's expanding refining and petrochemical sectors, which continue to grow at consistent rates. In summary, FY 2025 was a foundational year marked by significant growth, portfolio expansion, and operational resilience, setting the stage for sustainable value creation ahead. Thank you for your continued support again. I now invite our CFO, Mr. Pravin Sathe, to provide a detailed financial update. Thank you once again. Thank you, Mr. Kamath, and good afternoon, everyone. I'm Pravin Sathe, CFO of JNK India. I will now present the financial details for Quarter four and FY 2025. In Quarter four, the total revenue was INR 2,000 million, more than doubling sequentially from Quarter three, but down 10.9% year-on-year due to project life cycles. Operating revenue was INR 442 million, with a margin of 22.1%. EBITDA was INR 276 million, representing a margin of 13.8%. Profit after tax was INR 132 million, reflecting a margin of 6.6%. For the full fiscal year, revenue increased by 2.5% to INR 4,950 million. Operating profit decreased 22% to INR 1,424 million, compressing the margins to 28.8% from 37.8% in FY 2024. EBITDA declined 37.9% to INR 649 million, with margins narrowing to 13.1% from 21.6%. Profit before tax dropped 50.4% to INR 441 million, and profit after tax declined 51.8% to INR 302 million. Return on capital employed was 16.6%, while the return on equity stood at 8.6%. FY 2025 delivered the highest order inflow and the largest closing order book in our company's history. With inflows of INR 9,327 million and a backlog of INR 10,819 million. The extensive pipeline also offers strong revenue visibility as we enter FY 2026. Employee benefit expenses improved to INR 457 million, aided by the winding down of ESOP-related costs. Looking ahead, we remain committed to driving margin recovery through disciplined cost control and operational improvements, while investing in high potential growth areas aligned with India's energy transition. In summary, FY 2025 was a year of steady revenue growth amid margin pressures. Our diversified portfolio and extensive order book provide a strong foundation for continued progress. Thank you for your attention. We now welcome your questions. Thank you, gentlemen. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone 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 comes from the line of Shaurya Savjani from Savjani Enterprises. Please go ahead. Thank you for the opportunity, sir. I just wanted to get a clearer understanding on the margin perspective. Since Q4 of last year, there has been a significant decline in margin with raw material and project costs rising up to 81% compared to the historical average of 40%-50%. In previous calls, you attributed this to projects being in the mid stages of execution. However, we haven't seen this level of margin compression in the past fiscals, even during similar execution phases. Could you help us understand what has changed in this current fiscal to cause this sharper deviation? Yeah. Thanks for your question. In our previous earnings call also, as you have rightly pointed out, we have mentioned about the project life cycles being in the stages wherein the margin is little bit compressed. I would like to draw a reference to our earlier earnings call, wherein we had mentioned that this has to be seen along with the order inflow in the previous financial year also. Since the order inflow in FY 2024 was not significant, the margins that were getting compensated by the projects which were in the earlier life cycles, contributing to the higher margins, the compensating impact was not available, that we clarified in the last call. This year, we were anticipating this downfall. The new projects that have come in FY 2025, they have started generating revenue from the Q3 onwards. That compensating effect will be seen in the next financial year. This year we were anticipating a drop in the profitability, and that we had mentioned earlier also. Right, sir. I have another question. Additionally, I am also trying to understand the employee benefit expense. As your CFO rightly mentioned, the employee benefit expense has sharply declined, just some numbers, from INR 26.3 crore in the same quarter last year to INR 3.2 crore this year. This is actually quite surprising to me because, especially you said that there are being ESOPs distributed throughout FY 2025, and you are also expecting an increase in the labor force due to heavy order inflows. Why would you say that there has been such a steep decline in the employee benefit expense, even though you might say the stock price would have declined. Maybe would that be justifiable for such a steep decline in the employee benefit expense? So- In the last quarter, we gave declared incentives for the year. See, there are two, three factors contributing to this. One is the ESOP reserves that we were creating against the ESOP scheme. Every quarter, there was a debit to the profit and loss account, and that ESOP scheme has ended on 31st March 2025. That portion has gone away. It was a sizable chunk. Another thing is there is a reduction in the managerial remuneration also. The third factor is that we used to give the year-end incentives in every financial year, which used to come in the quarter four of that respective financial year. This year, strategically, we decided not to give the incentives in the quarter four, but look ahead for the progress of the company in the current financial year, and then take the decision on that. It has resulted into reduction in employee benefit cost. Right, sir. Just one last question. I'd also like to understand the current order pipeline and future expectation in both the new segments, which is waste handling systems and renewable energy segments. Specifically for the renewable energy space, given that there are several large-scale competitors, how do we view our competitive positioning? What would you say is our moat in the segment, and how are we planning to scale or differentiate going forward? Sure. This is Arvind Kamath here. Basically, as long as the order book is concerned, we gave you the figure, which is fantastic. We had the highest order inflow for FY 2025, that was also coming in terms of the diversified product portfolios like cracking furnaces, process plants, and flares and incinerators. Going ahead, we have a very good pipeline, the order finalization of about four projects are expected in the next six to eight months, which are quite large opportunities in the heating equipment and other equipment. In terms of the renewable energy, it's more of an entry to us in a bigger way. Because what we have done is one green hydrogen fuel station, which is already order is executed. We are also looking to develop our credentials and references in this space. We have about four to five proposals currently going on in the green hydrogen space, and that's where we plan to leverage our hydrogen handling capabilities and get more opportunities. In terms of our moat, basically, we have good experience in terms of the hydrogen handling. Hydrogen as a gas, which is very flammable and highly volatile. We do have a good experience of handling through our reformers as well, and JNK Korea also has extensive experience in hydrogen handling. We are basically leveraging that expertise and experience in green hydrogen projects as well. Right, sir. I wanted to also know about the waste handling system, which are the flares and incinerators. I don't think you mentioned that. Yeah. Waste handling systems, we already received orders last year, and that's part of our combustion equipment itself. We already quoting for those opportunities, and more opportunities are lined up in that area as well already. Right. Anything in numerical figures for the pipeline? Pipeline, generally, in terms of numericals, the big pipeline, what we have, the firm bid pipeline is ranging about INR 4,000 crore. That's the kind of figure what we have, which looks to be finalized in next one year's time. Okay. This is for all products? Predominantly heating equipment and the like. Okay, understood. Thank you so much for your time, sir. Thank you. Congratulations on good order book inflows. Thank you so much. Thank you, sir. A reminder to all participants, please press star and one to ask a question. Participants, you may press star and one to ask a question. The next question comes from the line of Vedant Sarda from Nirmal Bang Securities. Please go ahead. Yeah. I'm working capital.[audio distortion] The next question comes from the line of Anshul Jetti. Please go ahead. Hello. Yes. Please go ahead. Yeah. Am I audible? Hello, sir. My question is on the working capital front. Our trade receivables have increased by almost 50%. It would be great if you could throw some light on our working capital days and the future outlook. How do you see about that? See, we have been telling this previously also. What happens is maximum dispatches happen in the last couple of months. If you see as on the balance sheet date, the receivables look very hairy. Out of that, I would like to tell you that in last couple of months, we have almost recovered more than INR 150 crores. If you see the position as on balance sheet date, you will definitely feel that the receivables have piled up. It is due to the dispatches that happen in February and March. This is a typical situation every year. What portion would you attribute to the PSUs in the trade receivables? This time, major receivables were of PSUs only. Any portion of. Hello, we cannot hear you. Hello, am I audible now? Yes. Please go ahead. Yeah. Any portion of unbilled revenue in other current assets as well? There is no unbilled revenue as such, but the revenue that could have been billed, but which has gone in this financial year, is roughly around INR 70 odd crore, which has slipped down to this financial year. Okay. Sir, next question is on the margin front. If I look at EBITDA margins without adding the other income part, we are at around about 9.8% EBITDA margins. What's the future outlook and how do you see EBITDA margin in the next two years going at that we have a big order from Reliance as well next year? See, going forward, we have kept a benchmark of at least 14%-16% of EBITDA. Okay, sir. Considering the large orders, we cannot anticipate EBITDA of 18% or 20%, but 14%-16% could be a range that is reasonable and achievable. That is what we apprehend. Okay, sir. Thank you. That's it from my side. Thank you. A reminder to all participants, you may press star and one to ask a question. The next question comes from the line of Mihir Thakker from Prithvi Finmart. Please go ahead. Thank you so much for the opportunity. Just wanted to know what is the execution duration of the current order book on hand. Hello? Currently, whatever order book is there, we anticipate that it will get executed over six quarters. Okay. The bid pipeline that you have mentioned of about INR 4,000 crore, what conversion rate are you expecting on this? Yeah, it's a bit difficult to exactly pinpoint because depending on the size of the opportunities, but historically, whatever gets finalized, we've been able to get anywhere in the range of 20%-30% as our share. Okay. Thank you so much. That's it from my side. Thank you. The next question comes from the line of Akshit Gangwal from IIFL Capital Services. Please go ahead. Yeah, thank you for the opportunity, sir. I just wanted to understand. Like at the beginning of the year, our target was to execute the opening order book of about INR 620 odd crore this year, and which is not materialized, but I assume that given the project life cycles, do we see that in the next couple of quarters, revenues picking up? Typically what you've mentioned is that 1H is 1/3 of your overall FY revenues. Will that trend continue this year, or how do you see revenue split across quarters for FY 2026? Yeah. Akshit, actually, what you have said is right. The revenue will start picking up from the quarter two onwards. In fact, quarter one would also be better as compared to the past years, but the actual pickup will start from quarter two onwards. Okay. Quarter two should see some pickup. You mentioned that the current order book should be for the next six months. Any target for FY 2026? Six quarters. Six quarters. Sorry. Yeah. Next six quarters. Any targets for FY 2026, numerical targets, like what we are looking at, considering spillover of from this year as well? How would that look like? Yeah, Akshit, as you mentioned, started your question because whatever last year we thought of, we could not due to certain reasons of execution and delays from the customer as well. We want to be a bit, what you say, conservative in our estimate for this year. Still, something like around 40%-50% increase on the revenues is what looks very feasible considering what situation the various orders are as of now. Okay, understood. The Reliance project, you expect it to complete by FY 2026 or it will spill over to FY 2027? Some part could spill over to first quarter of FY 2027. Yes. Okay, first quarter of FY 2027 is when we expect that entire project to get completed. Yeah. Most of the revenue would also be billed in this financial year. Okay. FY 2026 as well. Understood. Sir, last question. 14%, 16% of OPMs that we are looking for, is this including the other income or excluding that? Because I think around 4% of the EBITDA margins that you're looking at this year is from the other income. It is a big jump. just wanted some clarity on the guidance. See, 14%-16% on total revenue, I'm saying. Okay. You look at total revenues including the other income portion. Is it? Yes. Okay. Understood. All right, sir. Thank you so much. Thank you. The next question comes from the line of Sahil Sanghvi from Monarch Networth Capital. Please go ahead. Yeah. Hi, good afternoon, and thank you for the opportunity. I missed the initial three, four minutes of the call. Sorry, I was late in joining. Could you help us with the reason of the lower revenue that we've clocked this quarter, as in we were targeting much higher numbers. Project-wise or something, more detail on the project delivery, what happened exactly? Hi, Sahil. Actually, we were targeting a revenue of somewhere around INR 620 crore at the beginning of the financial year, and then we had given a revised guidance on that. In fact, what revenue we have booked, we could have booked INR 70 odd crores more revenue, but which has slipped to the current financial year due to various reasons, because of delayed payments from the client or for the export shipments or for the inspection of the ready material not done by the client. For various such reasons, about INR 70 odd crores revenue has slipped to the current financial year. Right. Is this all attributable to external factors, or is there some execution detail also? Is it mix of both or? Majorly it is due to external factors. Okay. Also wanted to understand the status of the HPCL order. Are we on track to complete it by December, or will it slip over to fourth quarter? Yeah, Sahil, it's exactly difficult. Our endeavor is to close in the quarter three only. Being HPCL, okay, there are some issues in terms of the site work, because site work has already started. Civil and the construction, mechanical, everything is started. Being a PSU in Mumbai, there could be certain this thing. Our endeavor is to close by Q3, but we are sure that at least by maximum by Q4, we'll be able to close it in case if there is a delay. That's right. Sure, sir. This INR 70 crore that we are saying, which is now delayed to FY 2026, will that be recognized in 1Q itself, or would that go to 2Q? Just trying to understand, will the revenues be more evened out? That's more from the quarterly perspective. Since I told you that this revenue has slipped to current financial year due to external factors, it is very difficult to predict that it will materialize in the Q1 itself. We can say that revenues will get rationalized in this financial year. Margins should also iron out, sir. This year we have moved to the new revenue recognition system. Yes, that is for sure. Okay. Thank you, sir. Thank you for your answer, and all the best. Thank you. The next question comes from the line of Ashish Chopra from Goldman Sachs Asset Management. Please go ahead. Yeah, hi. Thanks for the opportunity. I just had a follow-up on the previous participant to just understand the execution delays in further detail. Last quarter, Pravin had mentioned that INR 620 crore was the target at the year's beginning. Because of these execution delays, you had mentioned that you will be falling short, let's say, by 10%-20%. That's the INR 70 odd crore shortfall on that base. As we end the year, and which implies INR 250 odd crore, INR 260 crore of revenue in the fourth quarter. As we exit the year, the number is eventually around INR 191 crore. There's another INR 60 odd crore on top of that 10%-12%, which seems to have not come through. Versus the original number of INR 620 crore, we are falling short by more than INR 120 crore. Just what incrementally panned out in the fourth quarter, over and above what was already visible to you in the first nine months that led to this additional delay of INR 50 crore-INR 60 crore? This is my first one. Good afternoon, Ashish. Whatever just Pravin Sathe explained, about INR 70 crores revenue, which mainly has been delayed from the last quarter, was because of the delays by payments from the customers. We had to slow down that processing of those orders. Some part were also not cleared by final inspection because of the customer, which was export. Some part, customer asked us to delay because its site was not ready. These, about INR 67 crores-INR 70 crores, to be precise, which was delayed from last quarter, which we actually planned in the last quarter. Okay. The other thing that you also mentioned in the third quarter call was that given the order book that you have at your disposal. I'm sorry to interrupt, Ashish, you're not audible. Could you please move to an area where the network coverage is better? How did we assist, sir? No, you're still not clear. Okay. Better now? Yes, please use your handset mode. Yes, go ahead with your question. Yeah. I hope I'm audible now. Yes. Yes. Much better. Okay. Yeah. The second question was that you had also mentioned at the end of the third quarter that given the order book you have, despite some slippages that you were witnessing in FY 2025, you still remain on track to maybe get to a revenue in the range of INR 1,000 crore with 17%-18% EBITDA. Despite some of these orders which are slipping into FY 2026, that should be additive. You mentioned 40%-50% sort of a growth number, which still implies a substantial shortfall to that as well. We are looking at somewhere in the range of INR 700 crore-INR 750 crore versus that number. Does this, the revenue in the current year equivalent to the order book at the end of the year, is that no longer holding now? I just want to understand what's changed both on the revenue outlook front and also on the margin front. Why is it now 14%-16% versus 17%-18% that we had been holding on to till at least as recently as the last quarter? The old projects that are getting slipped over to the current financial year, they are in the stages where the margin profile is very low. Practically what margin is getting generated by the new projects in this financial year is somewhat getting eaten away by these projects. Therefore, we are giving the conservative estimate of 14%-16%. Okay. Also if you could elaborate on the revenue outlook? As Mr. Kamath said, in the past also whatever guidance that we have given, then we had to revise the guidance due to external or internal situations. We want to be on very conservative side. That's why he has said that we can expect a revenue growth of 40% to 50% over current year's revenue. This is a conservative estimate. We don't want to give overestimated guidance. Understood. One last question from my side. On the pipeline of orders that you mentioned of INR 4,000 crores that should maybe get finalized somewhere in the course of the next 12 months. Are any of these larger orders imminent, maybe in the next quarter or so? The reason for asking that is, after the big order from Reliance, I think the last nine months have seen fairly relatively tepid momentum of order inflow. I think the first two months of this quarter as well, I don't think you've announced anything. Maybe another three, four months, if the situation doesn't change, perhaps we are looking into FY 2027 as a year when again, the revenue growth starts becoming questionable considering that the orders won later may only get executed somewhere in the middle of that year and then into FY 2028. Just as phases the pipeline, are there any orders which are in advanced stages or it remains to be seen and unclear as to when this pipeline gets firmed up? Yeah. No, Ashish Chopra. Actually, two of the opportunities are very much on the finalizing stage, and it could get finalized in next one or two months itself. Both are comparatively quite significant value. That way, one is for export and one is for domestic opportunity. Both bids are already in place, and anytime in the next one month, the customer could take a decision on. That way, we are quite bullish in terms of at least the big pipeline, what we have and in terms of the order inflows for this financial year as well. The diversification into the various product lines also has helped us in increasing our big pipeline and also the new proposals going ahead. Got it. That's it from my side. Thanks for this. Thank you. A reminder to all participants, you may press star and one to ask a question. The next question comes from the line of Varun Goel from Mirae Asset Mutual Fund. Please go ahead. I just wanted to understand the margin picture. I know this guidance of 14%, 16%, including other income. I know if I strip that other income off, then it looks like the operating guidance is around 12%, 13% compared to the 21% we did in FY 2024. Secondly, if you can just clarify, to my understanding, the average order execution is one to two years. Even if some large orders are coming to an end and they're having lower margins, then ideally our margins in FY 2025 should have been higher. Can you just help me understand these things? Yeah. Basically, you are referring to the 21% EBITDA of FY 2024. Earlier also, we have clarified this, that due to front-loading of revenues in the previous year. We were using a different revenue recognition model that time. We were using output method. Based on the milestones, we used to book the revenue and the corresponding cost. The milestone-based revenue were giving a vitiated picture if you see quarter-on-quarter basis. We have changed that method in the current financial year, and we are following the cost-based method, that is input method. Both the methods are approved as per the Ind AS 115. To iron out these variations quarter-on-quarter, we have decided to use the input method. When we talk about the margin of 21% in financial year 2024, it was including the other income and three to four points, the margin was on the higher side because there were few items in that financial year, which had a very high margin of profitability. Therefore, it had contributed to a higher margin of three to four points in that financial year. That impact is seen in the next financial year, that is the current financial year. Three to four points, if you reduce from that 21, it comes to 16%-17%. That is the normal profitability that we have been experiencing. That is why still to discount it and give a conservative estimate, we are saying that we can give a guidance of 14%-16%. Could you also clarify the second point? Can you please elaborate on the second point? I just missed that. It was just mentioned in the previous question that the pending order execution will be towards the closer of the orders and therefore it will be lower margin. I'm just asking then, by that logic, FY 2025 margins should have been higher because then we should have booked higher margin part of the orders in FY 2025. It appears as if both FY and FY 2026 we are having lower margins. Can you just help me understand that? In my first answer only, I have touched upon that point, that these are the projects where we have already booked higher margins in financial year 2024. Now the margins are on the lower side in these typical projects which got delayed, and they are getting slipped over to the current financial year. Whatever the orders booked in the FY 2025, we have hardly done any execution in the FY 2025 itself. Most of that execution will take place in FY 2026. What would be our average order execution cycle, sir? Average execution cycle could be around one and a half years to two years. Right. Okay. Thank you. Thank you. The next question comes from the line of Vedant Sarda from Nirmal Bang Securities. Please go ahead. Thank you for the opportunity, sir. Like you told, current order book is for sufficiently for six quarters. We would be operating at a full capacity, like it is. Hello? No, it is not like that. We said that current order book will get executed over six quarters. It is not that it is sufficient for six quarters. It will get executed over a period of six quarters, and there is no capacity constraint as such. We will also get new orders, which will also be executed over the six quarters. Over the six quarters. And then. What is the capacity utilization rate on which we are running? As we have been telling since we went public, that there is no installed capacity as such for our typical business. Because we can outsource the facility, we can outsource the fabrication to other facilities also, and therefore, there is no capacity restriction as such. It is a very elastic thing. We can accommodate even the higher orders. We'll have to outsource fabrication to the other units, which are approved vendors. Okay. Thank you. Thank you. A reminder to all participants, you may press star one to ask a question. The next question comes from the line of Shaurya Savjani from Savjani Enterprises. Please go ahead. Hi. Thank you for the opportunity once again. I wanted to touch upon the pipeline again, right? You had said that you're looking at approximately a INR 4,000 crore pipeline. I believe in the previous call you had said that there is INR 4,000 crore domestically and INR 4,000 crore export pipeline, and both are different, so cumulatively INR 8,000 crore. Just correct me if I'm wrong, and please give me a better understanding on this? Hi. Basically, when we say pipeline, it's a bit of how do you look at it. Currently, what I said for INR 4,000 crore is the firm offers itself. In our kind of a project business, what happens is there are two types of opportunities. One is the firm opportunity, which means already the firm inquiries have been received, and we have submitted the firm quotes. Which will actually get finalized in next, say six, eight months or maximum a year's time. When we say big pipeline, there are also proposals which we submit where the project is announced, but we submit the proposal to the EPC companies or EPC is bidding for the project, things like that. That could get finalized over a period of, say, eight months to one and a half years. The total proposals, the pipeline is in that range. What you said is correct. The firm proposals which we mentioned just now is what is going to get finalized, but say in about six to eight months time. Understood. Okay. Thank you. Thank you. A reminder to all participants, please press star and one to ask a question. The next question comes from the line of Vedant Sarda from Nirmal Bang Securities. Please go ahead. Thank you for the opportunity, sir. You mentioned that we have changed the method of recognizing revenue using currently input-based method. That is a percentage completion method, no? Yes. Earlier we were using output method. How it is different from the current method and how it is impacting our financials? See, it is different in the sense that in the output method, there are various performance obligations out of the contract. They are identified, their transaction value is described. As you go on achieving that performance obligation, you go on billing that particular milestone. The cost corresponding to that milestone is taken against that revenue. In order to facilitate the cash flow, what typically in our business people do, we also have been following, that in the initial milestones, the revenue is on the higher side, whereas the cost is on the lower side. Though the cost is low, a higher portion of revenue is allocated to those performance obligations. What happens is, in certain quarters, the revenue gets booked at a very high scale, but the corresponding cost is very less. That quarter shows a very high margin. In input method, what happens is you prepare a budget. Based on the total budgeted cost, you have a budgeted margin, and periodically you visit that budget again and again and revalidate the margin. As you go on incurring the cost, you apply the margin percentage to that cost and proportionate revenue you recognize. The deviations in margins quarter-on-quarter gets ironed out. I hope I'm clear. Yes. Sir, please go ahead. If we have no more questions. Yes. Right. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to the management for the closing comments. Thank you everyone for attending the call and asking the relevant questions. Thank you once again. Thank you, sir. Ladies and gentlemen, on behalf of IIFL Capital Services Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.