Royal Orchid Hotels (NSE:ROHLTD) Q1 2027 Earnings Call

0:09 Ladies and gentlemen, on behalf of Captify Consulting Investor Relations team, I welcome you all to the q one FY twenty seven post conference call of Royal Orchid Hotels Limited. Today on the call from the management, we have with us Mr. Chandir Balji, Chairman and Managing Director mister Arjun Balji, president mister Keshav Balji, executive director and mister Ahmed Jaswal, chief financial officer. As a disclaimer, I would like to inform all of you that this call may contain forward looking statements, which may involve risks and uncertainties. Also, this is a reminder that this call is being recorded. I would now request the management to detail us about the business performance highlights for the period ended June 2026, the growth perspective and the vision for the coming year, Post which, we will open the floor for q and a. Over to the management team.

1:03 Good evening, ladies and gentlemen. On behalf of the board and the entire leadership team at Royal Orchid Hotels Limited, I extend a warm welcome to all of you to this investor presentation on the financial results for the first quarter ended 06/30/2026. We appreciate your continued interest and support, and we share the performance highlights and progress that we are making on our growth agenda. Key performance snapshot. Q one delivered strong top line momentum.

1:48 Consolidated revenue rose 36% year on year to about 107 crores from 79 crores in the corresponding quarter last year. Total revenue stood higher at 115 crores. This growth is attributable to our new hotel, Iconica, which had become operational last financial year. EBITDA grew faster than revenue, rising 39% year on year to approximately 33 crores, which is the EBITDA margin expanding modestly to approximately 30.7% from 30%.

2:40 However, the net profit declined to around 6.4 crore versus 10.9 crores last year. The diversion between robust operating performance and lower reported PAT reflects higher financial costs, depreciation, including in the AS impacts, an ongoing ramp up of newer properties, particularly our larger leased assets. We view the underlying operating trends as healthy and consistent with our expansion phase. Strategic progress. We continue to exit our high...

3:26 Our asset light growth model. The portfolio has expanded further with the day... Digital hotels and keys added during the quarter. We added five hotels with 237 keys during this quarter. We have 50 hoe... Plus hotels signed, which will be opening in the next eighteen to twenty four months. We are working hard and remain focused on vision 2030 targets of scaling to a significantly larger network of hotels and keys across India and select neighboring market driven primarily by management contracts, franchising, and selective revenue share arrangements.

4:15 Occupancy and average room rates in our key operating hotel and managed properties have held up supported by domestic leisure and corporate demand. New openings and pipeline conversion are progressing as planned. Looking ahead, we remain confident in the medium term outlook. India's hospitality sector continues to benefit from rising domestic travel, improving infrastructure, and growing demand in both leisure and business segments. Our emphasis on operational excellence, brands, setting across the agenda and related portfolio. We're also looking at disciplined capital allocation position as well to convert the current growth investments into stronger profitability and better ROCE in the coming quarters.

5:16 The detailed financial statement, segment by performance, and operational metrics are available on the investor presentation and results filing. Hope you all had a chance to go through the same in detail. We are happy to take your question now. Thank you once again for joining us today. We look forward to a constructive discussion. Thank you. All those who wish to ask a question may use the option of raise hand. In case you are unable to raise the hand, just drop your question in the q and a box, and we will ask on your behalf. We'll wait for a while as you assemble this.

6:32 We'll take the first question from Anubhav Jain. Anubhav, you can go ahead. Yeah. Hello, sir. Am I audible? Yeah. Yes, Anubhav. Please go ahead. Yes. So thank you for the opportunity, sir. So, though, my question is that premium premiumization of ROHLTD with Iconica, what's the plan, and how will that over the time include the yield? Let me take that, question. So if you look at, what we've tried to do with Iconica as a separate brand in the premium upper upscale segment, Right? The intention was very clear that how do you create a family of brands starting from the value priced at Zed by Ragenta going all the way up as with every other hotel company.

7:25 What we propose to do, right, going forward is we're signing hotels in the upper upscale category, right, by using Iconica as the growth driver there. We also have the opportunity, right, of premiumization where within our own Royal Orchid Hotels, if you look at it, you know, we've got about a thousand keys in the five star category between owned, leased, and joint ventured. Right? Those two are, you know, as you as you know, are being upgraded and have been upgraded to yield better ADRs in the time to come. Okay. Thank you, sir. I'll get back to you in queue. Thank you. We'll take the next question from., you can go ahead.

8:18 Hello. Am I audible? Yes, Shurbhi. I wanted to know, your consolidated revenue grew 38.5% and EBITDA approximately 39.1% in q one. How much of this growth came from the two thirty seven new key added during the quarter? And what was it like for revenue and EBITDA growth of existing profile? I'll take this question, See, the... In the quarter, we have opened 237 rooms, five hotels, and they all are in management franchisee model. So the number to that would be very, very negligible. Okay? So... Because we only give the management fees or the franchisee fees from these hotel.

9:05 The major number comes from our GLO hotel that is, you know, own leased and joint venture hotels. So the number from these five hotel will be very, very negligible. Okay. And can can you tell me what is the revenue per growth, occupancy, and ARR moment for q one? See, as far as the occupancies are concerned, we are at 70% in our JLO hotels and at 60 odd percent... 60.8% at our... All the managed and franchisee portfolio. And as for the ADR is concerned, last year, we were at an ADR of $5,004.88. This year, we are at an ADR of $6,002.33 in our jail hotels.

9:52 And in managed hotel, our last year, the ADR in the same quarter was 4,031. And this year, it is 4,300. Okay. One last question. With the current pipeline of signed and operational hotels, what should investors realistically think about as the sustainable revenue growth rate for the next two to three years? Will it be closer to 25 or 30%? K. So, sir, would you like to take one or should I go ahead? You can go ahead. Okay. So as far as the growth growth from these numbers are concerned... Okay. See, we are at 7,000 odd rooms, and we have signed 11,000 odd rooms with 50 hotels coming up in next twelve to twenty four months. Okay. Most of these hotels, barring few, you know, three to four hotels which are coming in under the revenue share model, most of these hotels are under managed and franchising model wherein we have not invested anything.

10:53 So the the growth from there will be will be in the managed segment. I've shown separately in my presentation the... What we earn from the managed segment. So there will be a substantial growth in the managed segment, but we get a management fees from these hotels. So the, you know, the revenue will grow definitely there. And as far as the geo hotel is concerned, in next, you know, two to three years, Iconica established itself because just fairly a new hotel. So there, you will see a substantial growth. But at this point of time, for three years down the line, giving a number will be a little difficult, but there will definitely a growth in the company. Thank you, sir. Thank you. We'll take the next question from Rahul Bhangaria. Rahul, you can go ahead.

11:42 Am I audible, sir? Yes. Yes. Yes. Thank you for taking my question. It's it's not about this... My question is not about this quarter, sir. Just to generally broad this thing. I've asked this question in different forms before as well. Broadly, you know, you have laid out your long term plans very well. That has been well explained, the asset light model. All of that, you know, is good. But when does the... When do we move our profitability line? When do you see it moving? Because, you know, three years back, we're also at 50 CR pad. This year also, we end up somewhere there and thereabouts. We moved from four, 5,000 rooms to eight, 10,000 rooms. So when do we see the needle moving, sir, on on the underlying front? Because, you know, the valuation or anything else the... That that company can come under the function of the bottom line in it. Sure, you know, you guys are putting up so much effort in adding so many rooms, new brands, working so hard. I'm sure you look to that as well. So just a broad timeline on when do you see it reflecting in the bottom lines?

12:42 See, Rahul, I I just put up the... This thing then probably I will request miss Arjun sir and Keisha sir to add to my reply. See, Rahul, please understand one thing. We are at an ROC of around 17, 18%. Okay. Of... Because you are seeing flattish because, you know, we are in a churning stage. You know, the company is taking... Going to take a big leap, but we are in a churning stage. Of course, you have a concern, and we also have a concern that how do we increase our profit and the profit looks flattish. But once things are stabilized... Stabilizes itself, definitely, you'll see a good growth in the company. That much I can... I'm very sure about. And if you really look at the ROC, the deployment of cap... The capital is done very, very intelligently.

13:30 And and ROC offer, you know, 17, 18% is actually not bad. Of course, we are targeting an ROC of, you know, 20 plus. Okay? And which will happen in next couple of... One year or so once we have established... Once Iconica gets stabilized itself because we have done, you know, funding there also. So, definitely, you you will see this thing, and probably I request Arjun, Sarra, Kesusar to add to it. I can I can add to that? See, I think if you did take the last couple of years coming out of pandemic, etcetera, we kind of took a, you you know, know, a point of view that while we were asset light for a long time, we'd also like to be somewhat asset light. Right? So we are also putting in capital to use and towards revenue share and lease properties.

14:17 And, occasionally, in the outcome, some years back, also, purchased a partner's stake, etcetera. So so why do we take these... Why do do a ramp up? And you've seen a ramp up in our revenue this year. Right? It's a pretty large revenue ramp up compared to some years back, primarily because now we are doing revenue sharing properties as well. Now when these properties get added, you know, there obviously is an India's effect. There's an initial ramp up effect. There are costs associated with all that stuff. So so I think this will be a definite time time for some investors who have been patient with us for some time. But I think the reason we are doing this is because we understand that not only, should the number of keys grow, but, so should the top line. And also the bottom line, the cash profits, which are the most critical things to us.

15:07 I believe all of these things will, start to show in the numbers, soon. But, yes, there is one additional business model that has been added. Investors should be aware about it earlier when we added management contracts. It was a costless way of going to some extent because there's very limited maintenance CapEx associated with adding new keys. But now when we add keys in the revenue share and lease model, there is a cost associated. And with India's, you know, there was a slightly larger, you know, upfront loaded cost, which, of course, we have explained in our investor relations as well... Investor presentation as well. That So is just something that we do want to highlight to to all investor that there is a slight change in the way when we go from asset light to asset light. There is a slight change in our, you know, p and l as well. But, you know, as this... As more hotels come on stream, you'll start to see, you know, a much higher growth in the bottom line as well, just like how you've seen a good growth this year in the top line.

16:10 And now one more thing I would like to add to case also replying. Please understand, last two quarters, you know, we have been hit by one particular factor, the change in the GST module. See, earlier, we used to charge above... Below 7,500 rates. We used to charge 12% GST, and we used to get the input credit to... And we used to, you know, set it off against our g a... GST output. But now with the change in the regulation, definitely, the GST now output is 5% without input. So we are getting an input loss. Let me substantiate this that in this one quarter, there was a GST input loss for the entire company by 2.5, which is a substantial number. We are trying to find out ways to mitigate this particular process and this particular, you know, cost which has come and all of a sudden, due to the change in the regulation has come.

17:06 We're trying to find it out with the ways how do we mitigate this particular thing, and probably we'll come out with a better solutions in time to come. Right. So I just wanna add one quick thing to all of them. You know, 20% of our rooms contribute to 80% of the revenue. Okay? And until that was until very recently, the Royal Orchid hadn't really made a large investment in any asset to get to, you know, to the heft of the top line. Iconica was the first such investment, and the hotel already came on stream in November. So, you know, we usually give it, say, a year of gestation as do you, and you've been kind enough to say that in the past, right, that about a year is what a hotel usually takes for it to, you know, to turn the corner. And so we're hopeful on that. The other flip, you know, to add is that, how does one obviously add assets to the company that are, you know, be it brownfield already assets, which are revenue and profit accretive to us?

18:13 And that is something that we're doing very, very actively in our development pipeline. Right? How do you add hotels that today, you know, starting from the get go, one can, start seeing some form of traction. Right? There's no real, you know, six, eight months of, development cycle and then setting up the hotel cycle. So You you wanna try and shrink that so ROCE goes up. So I think it's a question of time where you will... A short time. Right? And I thank you for your patience for, I think, a decade. But it's just a short while longer, and I think that corner is about to be turned. So, so as, any... The point is well taken, and Iconica actually gets the benefit of doubt for another two, three quarters. Benefit of doubt in the sense it gets the time to turn it around and actually show some numbers.

19:03 So iconica point is well taken. But even, let's say, x iconica and x of Indes, we... Would you think that you are happy with the performance that has happened, the x iconica, x Indes, I'm saying? Even those numbers haven't moved much. So any any thoughts there? Yes, Rahul. I agree with your statement. I would not say that we are very happy. We are trying to find out ways to move. See, our top line has grown. Okay. There's no doubt about that. We are at... Our operating margins have grown. I have no concern. We are looking or finding... We are looking at the ways how do we improve it further so that our path grows. You know? We are we are in a little bad situation as far as the taxes are also is concerned.

19:49 If you really look at it, the cost of the tax is quite high. So we are trying to find out that way also so that our path improves. But your concern is our... Also our concern, and we are definitely trying to work towards it. So I... Just to add one more thing, Rahul, to help you and to add to mister point. You see, when you look at the average hotel size that was signed up to, say, about a year and a half to two years ago, right, with sub 50 keys. Now, today, you look at the hotels that we are signing, right, there are, you know, plus sub 80 going up to 100,120 key management contracts as well. Now, all of that helps. The second piece of the puzzle is... I mean, obviously, one is larger hotel inventory, or larger key inventory per hotel is something that there's an active focus on. And the second, component that we're actively focused on on is the premiumization and increasing the average yield per hotel. That comes with larger hotels, more facilities, so on and so forth. So all of that is in very, very active plan that is, you know, I guess, is, about a year, year and a half ago. We set this in motion, and we're seeing the results with developers coming forward to us, you know, to to sign interesting hotels that will add to a premiumization and be a better yield per asset.

21:13 Great, sir. Thank you for those answers. Desvali, just one more thing on... Just to follow-up on your GST thing. So is it a fair thing to say that 2.5 that you just mentioned is an additional cost that you bore in the quarter, which otherwise would be reflected in the bottom line. And and is that setting in the ITC column right now? Yes. ITC... And we have to write it off. I can't I can't help it. I can't carry it forward. You know what? ITC is not allowed. Will have to write it off because my output is... Does not permit me to take the IDC input because we are at 5% in the output tax. My output tax below 7,500 rate is that that. So we have been taken by surprise. We have done some representation to the government also, and we are also trying to find out ways how do we mitigate this particular cost.

22:01 Right. Great, sir. Thank you for answering those questions, and all the best. Thank you. Thank you. Thank you. We'll take the next question from Harleen Kaur. Harleen, you can go ahead. Hello. Am I audible? Yes. Sir, my first question is, EBITDA grew 39%, yet FAD declined 39%. While the India's accounting impact explains part of this, should investors now think of EBITDA or cash profit as the better measure of underlying economics of the business? No. I think the investors should look at the non India's numbers. That is why we present our numbers in India's and without India's. So I think investors should look at non India's number because that shows the true picture of our business.

22:49 Okay, sir. So what would q one FY twenty seven part have been approximately without this account... Accounting impact? 11.7 crores. Okay. No. No. Okay. I'm sorry. I'm sorry. I'll just tell you, 11.7 crores is the, you know... One second. So our...

23:39 As far as our path for the q one in FY twenty six without India's concern, it is 12 crores. Sir, what about q one FY twenty seven? It is 9.8 crores. Okay, sir. So what is the ROCE difference between an owned hotel and a managed hotel for Royal Orchid? And where do you see the optimal mix? See, managed hotel, we don't invest anything. Okay. Okay. And we get a percentage of the top line and the operating margins. So without investment, we are getting some fees, but, of course, we have to spend some money for running those hotels. Okay. So we we do that, sales and marketing and all. Whereas the owned hotel, you invest heavily, and then you get a a return from that operating margin from that hotel. So this is... Both both are different kind of business, rather, I'll say.

24:40 Okay, sir. Sir, one last question. We are seeing the opportunity for premiumization of ROHL with Iconica. What's the plan, and how will that over the time improve yield? So as mister Arjun Bali has said earlier that Iconica is in the stage of, you know, streamlining the whole thing, and it takes little time. The hotel is new and all. That is why for better understanding, we are publishing our result with Iconica and without Iconica so that the investors and the analysts can understand the numbers better. So... And once, you know, we grow that brand more, so the numbers will definitely change. I just wanna add to one thing. I think... Just to clarify what mister Jaswal was saying and Arlene to add to your question.

25:29 You know, we just opened a hotel in Baroda in Vadodara called the Lakshmi Narayan Palace. Now it was intentionally branded, with the Iconica Collection. It's not an Iconica Hotel, but it's it's not a Regenta Hotel either. It has to be something else. And we have a collection brand sitting there. The logic was to tell the customer that it is a Palace Hotel, but it is in the upper upscale segment. Okay? And that, the the connection between Bombay and the other hotels, the logic was so that the customer feels, okay. Hang on. You've got an upper upscale hotel in Bombay. This is of a similar vintage, and therefore, you, can afford to charge a premium rate. You can afford to charge or do better services and all of that. So in time, we will use the, Iconica name selectively, but to try and get a better yield on assets that we otherwise would not have been able to.

26:29 Okay, sir. Thank you so much, sir. Thank you. We'll take the next question from., you can go ahead. Yes. Hello. Thank you for the opportunity. I had couple of queries with regards to Iconica. So, what has led to the, decline in top line for Iconica this quarter? The reason I'm asking is because in q four, the occupancy was cited at roughly 60 odd percent, and April, May run rate was given as 80%. So what has led to that sequential decline then from '24? Yeah. So so two things, Renuka. The q three, q four in a business hotel environment is all... Is always the best as far as, you know, the industry is concerned. You will see across the board that q one for business hotels especially is the lowest, and then it picks up over the year. That's, reason number one. Reason number two, the entire market in that, inbound near the airport domestic, no, international travel market in April and May, huge, took a huge hit because of, you know, all the flight cancellations that happened because of the war. And we don't realize that, you know, 50% of inbound into India come through three Middle Eastern carriers.

27:55 That went to zero. Okay? So the the you you add the two factors. One is the reality that, q one is always the lowest, in a business hotel environment, and add to the fact that you did have, you know, a global issue in April that still persists. Okay. So the, in q four con call, you had mentioned it was at 80% occupancy rate, so, for the month of April and May. So I just wanted to, clarify that number. What was the occupancy for Iconica then in, the months of April, May, June? Oh, give me one second. I'll just give it to you.

28:46 Mister Jeswali, are they offhand? I'll just Yeah. Yeah. See, Renuka, see, the numbers what we have given in February, March, we did 80% occupancy. The occupancy did get hit a little bit in the first quarter because of the war. All the business hotel across India has got hit. However, the leisure decision did well. Okay. That is why you are seeing the change in the numbers from quarter four to quarter one. And the ideas of quarter one and two is different from the ideas of quarter three and '4. Okay. The quarter three and four is almost 60%, and quarter one and two will be 35, 40%. That's how in the... In that business hotel works. And as far as the, you know, occupancy in... Is concerned, let me tell you, in April, we did an occupancy of 79%.

29:39 It dropped a bit in May. May dropped to around 60 odd percent. And then in June also, we did around June went up to 70. 70%. That's all. Okay. But on an average, it would have been higher compared to q four. Right? No. No. No. Q four Not at all. Q four is the best always. Okay. So can you just give me the number for q four for Iconica? So q four, we we were at, you know, in 80% around. Okay. Okay. And currently, in the month of August, what would be the rate line? Rain. In... It has rained heavily in Bombay in July and August. It rained has havoc.

30:28 So the... Definitely, it has hit the occupancy a little bit. But post October, it will grow. Okay. Okay. Yeah. I'll join back in the queue. Thank you. Thank you. We'll take the follow-up question from Rahul. Rahul, you can go ahead. Sir, just a question on Iconica. Given the number that you've reported, let's say, India's impact, if we remove, annualized top line of 85 crores is broadly... $80.85 crores broadly is very breakeven without India, I'm saying, once you play the pay the lead as well. Yes. Yes. Yes. You are right, Rahul. 85 crores, we will definitely breakeven. That's a that's a PBT break, ma'am? No. EBITDA should not be a big... But depreciation should not be a big number anyways.

31:13 No. No. EBITDA. Yes. Okay. And and anything you make above 85, any... Whatever that number is incremental incremental 5050% of anything above 85, 50% will go down to the bottom line. Could be 50% should be higher, sir. I'm just trying to understand because more. You can see... You can take little more. Because fixed costs are covered. Right? Fixed costs are already covered. Fixed costs are mostly mostly there. So roughly around 60, 65% will definitely go down. We are targeting 100 crores to be very frank. Rahul, let me tell you, we are targeting 100 crores, but let's see how the business moves in the third and fourth quarter. And how do you see the... See, your your lease rentals are tied up for the next... For the for the... For all the time that you have the property in lease.

32:01 Right? Absolutely. Yes. How do you how do you see your ADR lower the next two, three, four years? Do you see a scope of increasing them over time? Does that 100 crores? Can you touch on twenty, one thirteen, whatever Rahul time frame. Rahul, let let me take that quickly. See, we opened in November. We missed the entire RFP season. Okay? Where you have corporate contracting that goes on, we missed that entire season. Now, so when you opened, you're effectively scrambling for, guests on the online travel portals, you're, scrambling from existing relationships. And while we while we say, listen. You know, we've opened there, so did three other hotels at the same time. Fairmont, four fifty, Quays, Hilton Garden Inn opened with a 170, and Roswyn opened soon after that with a 110.

32:49 So, you know, you had about a thousand keys addition within walking distance of our hotel. Right? That was... That... So look at it from that context. We don't come with a legacy international pipe. You know? So we have to go and fight for every business that we, get. And we've seen a huge amount of acceptance of the product and the service, right, from the customers who've used the hotel. We are now seeing repeat business, and therefore, we are seeing people coming in and signing up long term or, you know, as I say, the the the long rein, the contracts with the hotel for the season ahead. Please also remember that, you know, we are seven, eight months old. Okay? So year one will be settling in. Year two will see increase in ADRs, absolutely.

33:41 Right? And year three, obviously, the ADRs will keep going up. You know? And and that is that is obvious. Right? Or rather that's expected. But, so to give you some hope, can we increase ADRs? Absolutely. And, you know, I think year one was about trying to find a place for the hotel in the market, which is actually quite a cluttered market. Right. Thank you. Thank you, Pavan. Thank you. We'll take a follow-up question from Survi. Survi, you can go ahead. Yeah. Hi, sir. I had one more question. I wanted to know employee cost has increased substantially over the last eight quarters stand alone business from 19, 20% levels to 23% levels. What is the...

34:34 Why is the employee cost rising so sharply while revenue continues to be where it was seven to eight quarters back? Yeah. Look. This year, also, there was a new wage code. So there was a slight increase due to the new wage code which we have taken. And there has also been annual increments, which are part of... Part and parcel of the hospitality industry. Some increases in costs are due to the new leases we have taken. Some are due to the, you know, strengthening of the management team. But I think, like I said, you know, across the group, we are going to see some, you know, optimization of the costs as the revenue start to kick in based on, you know, all the expansions that we're doing based on the asset right program.

35:26 Okay. So when do you think this will stabilize as percent of revenue? Look. I think we we have some, you know, new properties open this year, and we also... But we we anticipate this to be sort of range bound within what it was a couple years back and what we are in terms of the percentage, but the revenues are going to increase. So so I think in another year or so, things should start to stabilize. You know? So we've had, like I said, the new wage code coming. So that is... That has been a slight step up. Amit, you can you can quantify it. So so, Sumi, let me tell you. If you take the whole year round, see, the revenues are scattered from first quarter to fourth quarter, but the wage remains fixed more or less. So if you take the revenues from the whole year round, the average cost will come around 22, 23% only.

36:19 Okay. So when do you think Royal Orchid can realistically build 100 to $1.50 crore annual management fee business without taking significant balance sheet risk? And by when do you see that happening? We have given a reason of 2030, and we are targeting that debt. Okay. Right. I I just wanted to clarify that Vision 2030 did not give a target, of, whether it is revenue or fees. So we just want to clarify that is the case. We are not, assuring any any date for hitting 150 crores of admin fees from our side. While we are at a good run rate and we have grown fees about 14% last year, we we are at 7,700 keys. We expect to be at 11,000 plus in the next twenty four months or so.

37:22 And we, of course, have a a good pipeline and a good vision. We have a tie up with Hampton by Hilton. So all these are, positive. But, look, obviously, given the, we said last quarter, given the worst scenario, we are trying our best not to give any, projections. And then, of course, a 150 core fee numbers and very, very, very large number. Two and a half Three times. What we are doing. Times. Yeah. So that is a very large number. I I I don't have a numb... Date for that. But, yes, we are looking to absolutely double this in as shorter time as possible. So one more thing. Even on the annual... Annualized bassinet has increased from 17 in f y twenty three to 21% in f y twenty six.

38:13 No. I I... Suri, absolutely. Please understand. FY twenty three cannot be compared because it was just after the COVID. Okay. COVID, we had scaled down the entire operation to a, you know, a big way, and then that's why FY '23, the numbers are quite enterprising. But industry standards, if you look at it, it's around 20 to 23%. In our segment, you will find the cost. So it will hover around that. Okay. Thank you so much. Thank you. In case anyone has a question, we use the option of raise hand. So since there are no further question, would you like to give a closing comments?

39:06 Yeah. Good evening, ladies and gentlemen. I really appreciate your queries in this session, And we will take note of all the points raised by you, and we can assure you better results in the quarters to come. Thank you very much. Thank you. You. Thank you to the management team for your valuable time, and thank you to all the participants for joining on the call. This brings us to the end of today's conference call. You may all disconnect now. Thank you. You all. You.