Shalby (NSE:SHALBY) Q1 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to the q one FY twenty seven earnings conference call shall be hosted by Elara Securities. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions at the end of today's presentation. Please note that this conference is being recorded. I would now like to hand the conference over to mister Kashish Thakur from Hilara Securities. Thank you, and over to you, sir. Thank you, Manu. Good morning, everyone. This is Kashish Thakur from Hilara Securities. We welcome all the participants to Shalby Limited quarter one financial year twenty twenty seven earnings call hosted by Hillara Securities.

0:48 Today we have with us senior management representatives from Shalby. We will start the call with performance highlights from group CFO of Shalby Limited, Mr Amit Kumar and Mr. Kanan, Chief Executive Officer of Shalby Medtech. After that, we will open the floor for question and answer for all the participants. I will now hand over the call to Mr. Jigar Tore for important disclaimers regarding any forward looking statement that may be made in place. Over to you, Jigar. Thanks, Kashish. Good morning, everyone. Our investor presentation is uploaded on the stock exchange website and our company website, shalby.org. We do hope you have already had the opportunity to go through the presentation. Please note that some of the statements made in today's call may be forward looking in nature and may involve risks and uncertainties.

1:41 Kindly refer to Slide two of the investor presentation for a detailed disclaimer. Now I would like to hand over the call to Group CFO, Mr. Amit Kumar, for his opening remarks. Thanks. Thank you, and over to you, Amit. Yes. Thank you, Jigar, and good morning, everyone. Welcome to the earnings call of Shalby Limited for the Q1. Now I'll walk you through the consolidated financial performance of the company for the quarter one of twenty twenty seven. This performance I'll explain in crores and on year on year basis. For the quarter one, the company delivered a healthy improvement across all key financial parameters, starting with our consolidated revenues stood at 338.6 crores as again INR 330.4 crore in the quarter one of the last year. This is with a strong growth of 11.6% on year on year basis.

2:35 The EBITDA improved to INR 49 crore as against quarter one of last year of INR 48.5 crore, which is reflecting a growth of 1% on Y o Y basis. Our EBITDA margin stood at 14.5% compared to 16% in the corresponding quarter. Consolidated PPT stood at INR 19.7 crore compared to INR 22.7 crore in the one of the last year with a VBT margin of 5.8%. The consolidated PAT has been higher to has been higher at INR 10.5 crore with a PAT margin of 3.1% in the Q1 and again INR 7.7 crore with a PAT margin of 2.5% in the quarter one of FY twenty twenty six. The group continues to maintain a healthy balance sheet with a comfortable gearing ratio of 0.46x and a net debt of INR463 crores.

3:29 And we'll further walk you through the stand alone performance of the hospital segment. The stand alone revenue for the quarter one stood at crores as against INR242 crores in the quarter one of the last year, listing a growth of approximately 7% on a year on year basis. The stand alone EBITDA approximately stood at INR 47.8 crores as against INR 52.4 crores in the quarter one last year, with an EBITDA margin of 18.4% versus 21.6% in the corresponding quarter last year. But stand alone PBT stood at across 34 crore as against for across INR 40 crore in the quarter one of FY 'twenty six with a PBT margin of 13.1%. The stand alone PAT stood at 25 crore compared to INR 25.7 crore in the quarter one of the last year.

4:18 This has a PAT margin of 9.7% in the quarter one as against 10.6% in the quarter one of the last year. At the net debt level, this stands for the Hospital segment for 54.5 crores at the end of the quarter. The stand alone ROC for the quarter has been at 9.4% at an annualized level. The operationally, our ROC has been INR 44,711 crores compared to INR 45,673 in the corresponding quarter last year. The allot has stood at three point six nine days as compared to the quarter one of the last year at three point five three days. The number of occupied beds has increased to seven zero one in the quarter one as against quarter one of the last year at six thirty nine. This shows a growth of 9.8% year on year basis with an occupancy rate has been at 51% excluding Shalby International, which stands at 54% during the quarter.

5:24 The payer mix for the quarter had been 30% self pay, 38% insurance and 32% government business. Importantly, now coming to Shalby International, our Gurgaon unit, the revenue stood at INR 26.2 crore as against quarter last quarter in the last year at INR23.2 crore. Our ARPU has also increased to INR93226 crore, while our loss has stood at three point eight days during the quarter. International revenue contributed about 42% of the operating revenue of the Shalby International in the respective quarter. Importantly, here to also mention that the Gurgaon unit has achieved its EBITDA breakeven for the first time since the acquisition, and this is a sustainable and a growing EBITDA we look forward from in the subsequent quarter.

6:18 Overall, international business for the Shalby Group has been at about INR 13 crores, which comprises about INR 2 crores coming from the Gurgaon unit and rest 11 crore coming from the other unit of the Shalby Hospital. We are also pleased to share that during the year, the group successfully completed 47 transplants, including 41 kidney transplant, five liver transplant and one bone marrow transplant. It has been the summary of our hospital performance and the consolidated performance. Now from here, I'll move forward to our medtech performance during the quarter at a consolidated and stand alone level. So we have started FY 2027 on a very stronger note in our MedTech business with encouraging performance across our all key business units, importantly, a meaningful improvement in our profitability.

7:10 The first quarter demonstrates the progress we are making in building Shalby MedTech into a more diversified, scalable and profitable medical technology platform. Also to give you now how it the performance has been at the top line and EBITDA. To start with the top line and revenue performance, at the consolidated level, Shalby Limited delivered a revenue of approximately 47 crores in the quarter one of the FY 2027, registering a growth of 17% in the quarter four of the as compared to the quarter four of the last year and 53% strong performance if we compare it on a year on year basis. Moving to the this performance was driven primarily by strong momentum in our Shalby Limited at India level, which delivered a revenue of approximately INR 36 crore, reaching a growth of 29% sequentially and 98% on year on year basis.

8:09 We are particularly encouraged by the performance because it reflects the increasing traction for our products, improving execution across our business unit by the team. At the SAT U. S. Level, we also remained stable, delivered a revenue growth of 30.8% with a modest sequential growth of 9% on year on year basis. Our Singapore unit, the SATPL reported a revenue growth of $900,000 while this is a lower sequentially, but the business remains strategically important for our broader MedTech portfolio and we remain focused on improving our profitability from here. Overall, the consolidated business is showing increasing scale, we believe the underlying growth opportunity remains very attractive. And importantly to mention, this CAGR of 950%, which we have been retaining from quarter on quarter and year on year, we are confident to see the same level of the growth in the coming quarters also.

9:05 Moving to the profitability performance, most encouraging aspect of Q1 is the improvement in the EBITDA. And at a consolidated level, EBITDA has been posted positive, and this has been our fourth consecutive quarter for Symantec as a whole, reporting a bit of positive performance. Moving to entity level, the S and TLR India level entity approximately reported crores revenue as compared to as compared to $10,000,000 in quarter four of the FY twenty twenty six with INR 12,800,000 in Q1 twenty twenty six. This represents an approximately growth of 191% sequentially and 130 on year on year basis.

9:53 This is a very important milestone for us. The improvement is not merely a functional revenue growth, rather it is also the benefit of operating leverage, better business mix and improved execution over the period where we have been consistently working upon that. At the SAT U. S. Level, the EBITDA has been marginally negative during the quarter at a stand alone level. We are actively working on improving the profitability and confident to see that in the coming quarters through our operational efficiencies and the business initiatives we are taking across. At the Singapore entity level, the SEGPL, on the other hand, delivered an EBITDA of approximately $800,000 a significant improvement compared with the previous quarters. At the consolidated level, as I mentioned earlier, the EBITDA has been posted positive at about $1,700,000 in the quarter one of the 27,000,000 and it has been the fourth quarter consecutively reporting a positive EBITDA.

10:50 While we recognize that there is a still considerable room for the improvement at the consolidated level, However, we are confident the direction towards which we are working and execution would reflect us a more better and stronger number from here on. Major, now to mention about our inventory levels, which has been a key parameter to evaluate and drive business. The good part is our inventory levels have been on improving trend. Our inventory at a consolidated level is declining, showing a significant increase in our DSO holding period. And as per our estimate, we expect a 30% improvement in our DSO in our inventory holding days, which has been a significant focus area for us in the recent quarters.

11:35 At the same time, our consolidated revenue has increased to from FY 2025 at 1,300,000,000 to FY 2026 at about GBP $472,000,000. And just in the sorry, I'm repeating it again. Our revenue at the consolidated level has been $923,000,000 in the FY 2025, 1,300,000,000 in the FY 2026. And now just with the first quarter, it has shown a number of CHF $72,000,000 This shows a strong performance and also gives us the confidence to improve our inventory level and its holding period from here on. We will remain highly focused on working capital discipline throughout the year. Looking ahead, we enter the rest of FY 2027 with our priority remains unchanged.

12:21 Importantly to mention, first would be, we want to sustain the strong growth momentum in SMTM. Second, we want to improve profitability and operating leverage across the portfolio. Third, we will continue to focus on inventory optimization and working capital efficiency as already covered. And finally, we'll also continue investing selectively on our products and technologies that can create sustainable long term growth for the Shalby metric as a whole. We believe the underlying metric opportunity in India and globally remains very significant. Importantly, to mention, our objective is not to simply grow, but top line, we want to build our business with a stronger margin, higher asset productivity, better cash conversion and a sustainable long term growth.

13:07 The Q1 FY 'twenty seven number give us confidence that we are moving in that direction. With with that, I would like to thank our employees, customers, partners, shareholders for their continued support. We'll now hand over the call to participants, and we'll be happy to take any questions. Thank you very much. We will now begin the question and answer session. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. We have our first question from the line of Raja Kumar from RK Invest.

14:11 First of all, congrats for the good set of numbers. Good to see that your health the hospital segment is doing well this quarter. And I think you kind of kept up your promise there. So I just wonder whether now this segment will continue to be steady state and the margins will continue to improve from here on. There are no one offs and there are no headwinds on this segment? That's my first question. Sorry, could you come again with your question? We could not hear you properly. Yes. No, no. My question is on the hospital segment. So it is good to see that your margin performance is kind of back to year on year levels.

15:05 So this is in line with whatever you the commentary that you gave in the last two quarters that you are expecting to see a better performance. So it's really good to see that. So the question is whether these margins will sustain our ability to improve further from here on now? Yes. Thank you for your question. And on to the margins, to reflect, we see a confident we are confident to see an improved margin from here on. And the reasons are their underlying reasons are very obvious that if we mention it about importantly to include that we had we had deployed bunkers in our units already in the last year, which got activated also in the quarter one. But we see the more uptrend of that to come in the current in the subsequent quarter and which would flow to our EBITDA margin straight away.

15:55 That would be the significant part of the upside of the revenue where we are confident. And then that will include our new EPS renewals are also actively underway, which would give us significant upside on to the renewals, which hold a potential of 5% to 7% jump on to our revenue with the TPAs and other tie ups which are in active discussion. Another to include as an overall at the hospital, we have already mentioned that the Gurgaon unit, which has been underperforming, has posted an EBITDA positive, and we are confident to see a better margin from thereon because it's building on a better top line from there. Another to include are such... Our other units like Krishna, Mohali, and Naroda had been posting a year on year growth of about 30%, and we are confident to see that trajectory to also follow.

16:48 There had been few units which had been... Which had underperformed, including Surat and Indore, where the active work is on to recruit the right set of the doctors, where and those discussions are underway. So all these set of things, we are confident to see a better top line and major part of it flowing directly to EBITDA and ultimately resulting in a better EBITDA margin from in the subsequent quarters. That's good to know, sir. So the second question is on the manufacturing and trading of implants that segment. Why the bottom line is deteriorated despite your revenues have gone up year on year INR 28 crores, from INR 28 crores, it has gone to INR 42 crores, but the bottom line is deteriorated.

17:33 And in the last two calls, we have been saying that the COGS has been coming down significantly, but why then the bottom line is bleeding? So yes, thank you for your question here. While we see our CAGR has been growing on to the bottom line, we had been posting an EBITDA positive numbers. And more importantly to include is, if you notice in the earlier years, this is as a result of that we had been earlier investing, which has been resulting into an interest expense, which is now not significantly increasing. Our debt has become stable. The differential reason is also the depreciation on to the intangibles and other products, which we have done other CapEx we have done in the earlier year. And the full year effect is coming into this quarter. We do not see our bottom line to worsen off from here. Rather, we are confident to see a better bottom line in the subsequent quarters. Also importantly, by the reason of the upside on to our gross margins, which had been which is expected to increase about 100 basis points to 200 basis points each quarter from here on.

18:53 So what is the reason quarter on quarter, the bottom line is I mean, then the losses have gone up like 7.4 crores to INR 11.4 crores this quarter from Q4 to Q1. So is there any one off sitting in here? Or is it going to be like this? This is also by the one off, if you would not have noticed, the earlier quarter had some impact of the ForEx gain, which was of the ForEx, which had been the otherwise in the current quarter. So once that stabilizes, we would see that the one off would not be there into the P and L, and we would see the improvement trend of the bottom line profit. Okay. Okay. And last question is to the CFO. Sir, why you are not recognizing the deferred tax on the losses? Because otherwise, tax rate is getting, you know, vitiated.

19:47 You know, it looks like you are providing higher taxes. So when do you think you will start recognizing the DTA on the tax losses? So we are already recognizing our DTA wherever required in our hospital segment. On to the U. S. Medtech operation, that is an accounting call. On a conservative basis, we are not recognizing our DTA currently. But as soon we see the profitability improving, we will reconsider and reevaluate it out. Okay. Thank you so much, sir. All the very best. Thank you. A reminder to all participants, if you wish to ask any questions, you may press 1. Anyone who has a question for the management can press 1 on their touchtone telephone.

20:37 We have a next question from the line of from Ilara Securities. Please go ahead. Hi. Thank you for the opportunity. Sir, regarding metric business, our metric business revenue has grown around 53, but EBITDA was around 1,600,000. So what is driving this weak profitability, particularly at, like, US US front, and what can we expect sustainable double digit EBITDA margins? From when can we expect that? Steve, there are a couple of things. So as our CFO mentioned, a large part of the profitability decline has been because of the foreign exchange changes in terms of the dollar to INR, right? In terms of the volume, the volume has grown significantly in India. As you can see, there has been a growth of 100% in terms of the volumes of sales in India.

21:42 In terms of The U. S, we have been predominantly stable in terms of the volumes of sales in The U. S. Business. So that has remained flat for us. And there are multiple initiatives that we have taken to grow that sales number, right? Coming to the cost of EBITDA margins improving. So I think there are a couple of initiatives which we have taken significant initiatives taken in the quarter one of this year. And because of those initiatives, are going to be investing our total inflow into the company will reduce by about INR 3 crores a month, right?

22:29 So that is the impact of all these initiatives that we've taken in terms of working with the right vendors, etcetera. And the other thing is that there is another significant project which is underway, where after which if it is implemented, which is going to be implemented and executed by the quarter four of this financial year, we will see that the cash flow requirement will go down further by another INR 3 crores per month. So there are these significant initiatives which are taken, and we will be achieving a double digit EBITDA margin from thereon because these are the important changes which we have to make.

23:18 And like we have discussed in our earlier calls, and as you all are medical and pharma analysts, you would understand that any changes that we have to make within this segment, where it concerns the U. S. FDA and other regulatory bodies, it takes about six to nine months, one year often to kind of make these changes. So this is all underway. Half of the progress is already made. The other half is expected in the next six months from here on. Sure. Thanks, sir. Sir, next question is on our hospital business. So hospital occupancy has improved to 51%, but stand alone margins were broadly, like, declined by around somewhere around three twenty bps to 18.4%.

24:14 So what was the margin pressure? And again, can you reinstate your FY twenty seven EBITDA margin guidance? So on to the you are right, the occupancy has significantly improved about 600 basis points. And on to our EBITDA margins, see our top line has increased, the units which I mentioned, like Krishna and Naruda had shown a jump of year on year basis about 30%. This is the EBITDA margin is the pressure on the EBITDA margin is temporary because we have deployed new doctors and new specialties, which had come in. So it takes sometimes about a quarter or so that the doctor reflects its complete profitability. Into the subsequent quarter, we see the EBITDA margin to improve by that reason and also by the reason which I covered previously that the new EPR renewals and the bunker revenue is to flow into the subsequent quarter giving the full effect would be reflecting a better EBITDA margin from here on. We are strongly confident as per our estimate to see a EBITDA margin of upward to 20% on a year on onto the full year basis.

25:26 Understood, sir. Sir, in last I think, so I recall in previous two quarters, we have done few addition in Shalby International in doctors front. So that has been stabilized or we are still adding? Yeah. So yes, we have done the replacement and the new recruitment of the doctor, importantly to mention on to the Hong Kong and ENT side that has been showing a good growth momentum and had contributed to our revenue, where we have recently recruited and replaced doctors include the liver transplant and KTT. Their revenue contribution in the quarter had been lower because that had happened in the middle of the quarter or at the end of the quarter. The full effect you would see coming in the quarter two. And also to mention our bone marrow transplant, which had been not there in the last quarter, the active discussion is on with the doctors, and that effect would also you would see in quarter two and quarter three, which will be taking our top line further up from here. And further also, the international business also remain impacted to some extent, which has been showing improving trend from June onwards. The full effect of that would come in the subsequent quarters.

26:46 Understood, sir. Again, just continuing on Shalby International, we have already turned EBITDA positive despite having occupancy of 24%. What are what are our aspirations for the occupancy and EBITDA margin for the same hospital in FY 'twenty seven? And by when can we achieve that breakeven as well for the Shalby International? So with a very with a kind of estimate and the work which we are executing at the ground, we do expect our occupancy level to touch 30% or up from quarter three or quarter four onwards. And we are also likely very confident that on to the quarter four or near quarter three end, we would be able to see a PBT positive number also.

27:39 We are not far from here. We are not only a bit of positive this time, we have posted a 7% EBITDA and so hence the journey to see a PBT number positive and so hence the fact we may see that to happen from six to nine months there with the specialties already deployed in and few are already underway. Sir, I think for tax rate, our tax rate has seen a bit of moderation. So can you just guide what kind of tax rate we can expect for FY 'twenty seven? So first to mention at the hospital level, we have already translated to the new tax team with a lower tax rate of about 26% from earlier of 35% in the previous year. So that is the one benefit is which is a permanent benefit showing already going to our stand alone P and L. At the overall group level, if you would notice, our ATR has significantly come down to 47% as against the 66% in the quarter one of the last year.

28:44 And at the stand alone level, have already covered. So this is the kind of the permanent tax benefit, which will be flowing through the whole scheme of the things. And one shift, important thing to mention into other MedTech and Gulgauna units since we have carry forward losses, as soon we have... As we have already proven going to the PBT would be... Would not have a tax expense for the next two, three years. That would be a straight cash benefit flowing to our overall profitability and taking up easier more than... More... At a more better rate from here. Understood, sir. So one last question from my end. So our consolidated ROCE remains still low at somewhere around 16.7% versus management earlier stated doubling the ROCE.

29:33 What are the three key levers and timelines for this to be achieved? And one question on Mumbai expansion, how it is framed. Okay. Yeah. So first to answer on your RoC, yeah, at the group level, we are at about... At the stand alone level, we are at about 9.5%. Group level, are approximately 11%. Now we see this opportunity to improve from here on by largely two reasons. One, our CapEx deployment has been heavily happened in the last years where we have done a 150 gigawatt of the CapEx including our bunker specialty and where we have been Yes. So I would continue to answer your question on to the ROCE.

30:22 I would resummarize it. Your question had been on a lower ROE at an overall level. So I had mentioned that about our group level ROCE is at approximately 7% and a stand alone level, it is 9.5%. This has been made by the major reason of the CapEx deployment in the recent years, including where we had invested in Dunkirk, Specities, RoamTech and we have investing in the MedTech space also. Group level ROC and our estimates and our plans in the recent in the current year and for the next year are to we would be able to manage with a minimal CapEx since we have already invested that and EBITDA positive into our different program unit.

31:08 So as an overall team of things, see our ROCTO be improving from here on. And we do expect to that to fall in the with an industry standard from one to two years from here, which is between 11% to 13%. Mr. Rendon, sir, last question on Mumbai expansion. How does it frame out? The discussions are on with the trustee, including once the alignment happens, it would be for the approval or the review of the trust office there. So these discussions are underway. Whenever there will be another development, it would be informed to the respective stakeholders. So so thank you. Thank you for the opportunity.

32:00 That's all from my end. Thank you. A reminder to all participants, if you wish to ask any question, you may press star and 1. Anyone who wishes to ask question may press star and 1 on the touch tone telephone. We have our next question from the line of Tripti Shukla from Credit Suisse. So my question is, like, in late July, Ikra downgraded about long term credit rating from a plus to a for our 830 growth credit facility.

32:56 So could you walk us through the primary drivers behind this downgrade and how you are managing your debt profile alongside with the recent one twenty nine growth working capital facility from Potak? Yes. Thank you. Hello, So to answer on the answer on the rating, our rating had been now at a from a plus, and our outlook has improved from negative to stable. This has been a procedural assessment, which we they had done, and they had their own parameters, but it could be reevaluated in the coming quarters, and that can go on to the upgrade from thereon. On to your second question, on to the recent debt facility, which we had announced, it's not a new fresh debt infusion, which we are doing. It's just a replacement at an efficient cost, which is about 30 basis points lower to our average. So that has been the reason. This is not an increase in the debt level. This is just a replacement and Our outlook has been been done better off from the negative to the stable. That has been a procedural assessment they have to do, and that can be reassessed that would be properly reassessed in the subsequent quarters.

34:15 On to your question of the the the which was mentioning that this is a new not a new debt infusion, which we are doing. It's just as a restructuring and replacement of our existing debt, Sorry to interrupt you, sir, but we are unable to hear you. Your voice is breaking. No, sir. Your voice is still breaking, ma'am. Is it better now?

35:10 Yes, Amit. This is better now. Okay. So I was just mentioning on to the new debt posting, which has been announced, it's not a new infusion of the debt. It is just a replacement at a better cost, which is lower than our average. Our net debt levels do not increase by this. And also in the subsequent quarters, we do not estimate our net debt to go higher from here. It could be on a stable or a reducing trend into the coming quarters. Okay, sir. And sir, my second question is like I was looking to the presentation. So I saw that the government pay significantly from thirty two percent in q one twenty seven up from 24% a year ago. So on currently, your overall ARPU year on year compression to 44,711.

36:02 So is this shift towards government scheme or temporary or at least by a very basic volume strategy? And furthermore, how are you protecting your cash conversion cycle given the typical longer time associated with the government there? What means share of business has decreased if you complete? Of the teams and where possible where we are applying on renegotiation of the SOP being Sorry to interrupt you again, sir, but we weren't able to hear your answer. Okay.

36:49 We are moving Yes, sir. Yeah. This is quite Can you hear me now? Yes. Yes, sir. So, yeah, we have moved to... The... Our share of the government scheme has increased, but this also follows the the and renewal and the review of the rates which we get from the government. As to mention, in recent case, we have been able to get a super specialty rate in our Krishna unit, which is a one bigger unit for us, and such other initiatives are also underway, including where we are having installed bunkers, and that would be also falling into the new... Would be falling to give us the the upside onto the revenue on the bunkers treatment getting covered in the government scheme. And another into our Gurgaon unit also, we are already NABS and where we follow the CPHS, it would be on the better rate side. So the profitability, are protecting and constantly reviewing wherever possible, wherever required to protect our profitability also.

37:49 Onto the the cash conversion cycle, yes, you are right. This is a complex process. And for that matter, we had already deployed and revisited our process to to secure our cash conversion cycle, also including automated tools wherever required. We have been doing the... We have been using and installed kind of the platforms which we need to to follow-up on our recoveries and outstanding on prompt basis, ensuring our bill submission and the and the other kind of the requirements which have to be communicated with the government officials and and including active visits to their offices. Okay, sir. Sir, my next question is, like, ROCE... With the. Like, do you go to double your ROCE, which currently sits around 7% on consolidated basis.

38:42 Concurrently, you are planning to expansion in Mumbai via 200 beds of Ashakra are they possible development? Right? So could you give us a sense of expected cash traffic outlay for this mobile facility in 2000... At 2027? And how will you balance this heavy investment against your goal for... Of immediate ROC explanation? So once if it is finalized, it it is... We know that it's a greenfield project. While we have to invest through it, we have to not... We may have to have a different benchmark to compare our overall ROC. However, when that to be finalized, we would look at it differently.

39:29 And also importantly, what would happen by that time, we expect we do not expect further investment infusion of the debt into hospitals. Importantly, not on our med tech and hospital into. So overall, we see this could be... This would be assessed at that time for that point in time. How do we do it from the debt or internal approvals? Okay. Okay, sir. That's all from my side. Thank you. Thank you. A reminder to all participants, if you wish to ask any question, you may press star and 1. Anyone who has questions for the management may press star and 1 on the touch tone code. A reminder to all participants, if you wish to ask any question, you may press star and 1.

40:28 As there are no further questions from the participants, I would now like to hand the conference over to the management for closing comments. Thank you, everybody, for joining the call. We will connect again into the next quarter. Apart from that, if you have any questions, you can reach out to our investor email ID. Thank you, and have a good day. Thank you, sir. On behalf of Illara Securities, that concludes the conference. Thank you for joining us, and you may now disconnect your lines.