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Bharat Forge Ltd
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Ladies and gentlemen, good day, and welcome to the Bharat Forge Limited Q1 FY '24 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to Mr. Amit Kalyani, Joint Managing Director at Bharat Forge. Thank you, and over to you, sir.
Good afternoon, ladies and gentlemen, and thank you for, first of all, adjusting to our change in time at the last minute. Unfortunately, we had a lot of discussion in our Board meeting, which went a little longer than expected. It was a very good discussion. And therefore, we had to push out the call.
As is normal, I'm Amit Kalyani. I have with me our Finance, Investor Relations team, and we have our Head of our Components Business also on the line. I'll take you through quickly a few highlights, and then I'll be happy to answer your questions, which I and our team -- the whole team will respond to.
So in terms of our standalone business, we had a top line of about INR 2,127 crores. This was almost 21% Y-o-Y growth. Our EBITDA was up by about, again, almost 21% -- 20.3% to INR 553 crores. Margins have been maintained at 26%. PBT before exchange gain or loss of INR 421 crores, 26-odd percent growth over Q1 of '23. We have won over INR 200 crores of incremental new business for the components and automotive business.
In this quarter, our balance sheet continues to remain strong and net of long-term loans we have close to INR 700 crores of cash. Passenger vehicle story continues to grow for us. We have developed new customers, new products and we continue to see large opportunities for growth both in engine, powertrain and also EV-related components. There was one -- we saw passenger vehicle growth of about 43% Y-o-Y, despite a one-time destocking impact of about INR 80 crores in Q1 for the oil and gas sector, due to some product changes.
The hit on the industrial export business was limited due to continuing strong traction in aerospace, which is now contributing about 16% of our export business. This has grown at more than 50% over last year, and we expect to see a strong double-digit growth this year and next year as well. In terms of the real -- that's coming to the part that we're most proud of and, let's say, it's something that we will -- we've all, as shareholders, as management, as investors have been waiting for a long time has been the conversion of the defense business into a revenue-generating profit-generating business. We just started from this quarter, where we have started exports of both systems as well as components in a big way, and this will continue to grow. In fact, we are seeing tremendous traction from global markets and just in quarter 1, we won an additional almost INR 280 crores of new orders in defense, and we have many, many more orders in the pipeline.
So our combined order pipeline now is in excess of INR 2,200 crores to INR 2,300 crores, which is largely exports. This will be executed over the next 18 months, and this encompasses orders across vehicles, artillery systems, components, solutions for naval and unmanned systems.
This basically marked the entry of Bharat Forge into the systems space in a very -- let's say, technologically advanced and geographically -- let's say, opportune and diverse and globally in demand kind of sector, and this business will also very soon contribute to -- in fact, this year also should be close to 10% of our overall revenue and increasing as we keep going ahead.
Coming to our overseas business, we had a turnaround in European business, where our EBITDA went to INR 51 crores as against a loss of INR 14 crores. So a swing of INR 65 crores. U.S. operations were similar to previous year. But you have to remember, the U.S. operations were set up 2 years after our last European expansion. So the European expansion is now heading to 50% plus capacity utilization, whereas the U.S. is still ramping up and is going through its product development and establishment cycle which by Q4 should be done, and we should have a turnaround in Q4.
Our subsidiary, JS Auto has now completed its acquisition of Indo Shell Mould, SEZ unit for cash consideration of INR 55 crores, with the asset as is including the current environmental clearances we have, this can do a turnover of about INR 200 crores. And capacity-wise, it can almost double that with increase in our environmental clearance. So now between ISML and JS Auto, we have a capacity more than double of what we had when we bought JS Auto, in fact, very close to 2.5x, and we expect to see our growth in the casting space also be very high in the strong double-digit range because there is a lot of demand. There's a lot of demand coming from Europe and a lot of shift of manufacturing from Europe to India.
In fact, the big strategy that we are now going to push and put a lot of emphasis on is to increase our manufacturing in India and use India as a large export base for the world, both at a component level, system level, and at a subsystem level as well. Our India manufacturing platform, which is basically the components plus products, which encompasses today our Bharat Forge stand-alone business plus defense manufacturing in KSSL, is already at a run rate of INR 10,000 crores and INR 2,500-odd crores of revenue for the quarter. And we expect to see this grow very smartly and very sharply over the next 2 to 3 years.
In fact, we will undertake a large expansion now in various areas. I've talked about casting. This is all in India, and this is all in spaces that we are comfortable with, this is in forging, in machining, in EV-related forgings and components. And our defense plants are also coming online. So we'll probably do somewhere in the region of INR 1,000-odd crores in the next 2.5 years.
At the same time, we would also repay over INR 1,000 crores of debt in the next 2 years, and we will do all this through internal accruals. We will maintain a healthy debt equity profile, we'll maintain a healthy cash balance and have the ability to respond to any growth opportunities in India, India manufacturing or India-related manufacturing growth for global opportunities as well.
As we go forward, we expect to see our consolidated EBITDA to increase from 16% towards the high teens that we have always aimed at and increase our return ratios also quite substantially. In terms of this ISML acquisition, this part is within 2 kilometers of our existing JS Auto plant, so we don't need to hire a large management overhead. We only need operating people, and we will get a lot of synergies and, let's say, operating leverage coming in quite soon.
We also report -- I mean, we also are getting a lot of interest from our global customers for export demand for casting, and we see that as another big growth driver to improve our India manufacturing footprint and sales outside of India, and to further serve our customers more completely.
Talking of our customers, our Last Man Standing strategy is bearing results. We have increased our market share in the automotive space, both in India and outside. We expect to see the Class 8 market in Europe and U.S. to remain strong; one, driven by demand and a little bit of emission norms; the second, driven by emission norms upcoming plus old fleet and drivers being more accustomed to vehicles with more assistance and things like that to make driving easier and this is what we hear from our customers, and we expect this to remain stable to positive.
And we have also tied up long-term business with all our customers, and we continue to grow our engagement and footprint with our customers. And we expect these next few years to remain strong, and this growth momentum that you're seeing this quarter to continue gaining strength over the next 3 quarters for this year and also into next year, as we expand our footprint of products, geographies, sectors, segments and new fields as well.
So that's really all I had to say, and I'm happy to now take questions.
[Operator Instructions] The first question is from the line of Binay Singh from Morgan Stanley.
Congratulations on good set of numbers. The strategy that the company embarked on of diversifying revenues is beautifully at play in this quarter. My first question is on the defense side only. In the opening remarks, you said that you almost see 10% of consolidated revenue for the year, roughly implying that will KSSL will have a very sharp ramp-up in revenues in the coming 2, 3 quarters only. So how do you see that impacting margins? And also linked to that any update on defense order wins from India side, given that it's an election year, will that have an impact on wins from India side? So any comments on that? So that will be my last question.
So Binay, yes, you are absolutely right. It will imply strong growth, but we are already ramping up our defense business. And we continue to see tremendous demand coming from markets across the world. So not just -- we're not -- as you know, we're not just dependent on India, but we're already exporting and we see tremendous growth opportunities. And the capacities we are building will start getting ramped up. We're today producing in our existing facilities. We don't have a dedicated facility yet. But the point is, yes, maybe. I don't want to comment on election year and the impact of election year. But all I will say is that there's enough demand for us globally to produce and sell whatever that we need to in terms of creating growth.
And at what scale do you see the profitability of this business being like mid-teens margin or so?
Profitability. So it is accretive to our overall business. There is no dilutive impact of this. Also, you have to remember that while we are only looking at EBITDA, we also need to look at asset terms on asset -- return on asset basis, it will be substantially higher. Please also remember for the India order, their RFQ is already out. So at least some part of the India orders should happen before other things.
Right. Right. And also part of the profitability sits in stand alone. So we're just looking at KSSL may not even get the full picture for the company.
Yes. So you have to look at consolidated because KSSL is 100%n sub. And as you know, the components are made in Bharat Forge, so if you combine the 2, you'll get a full picture.
And the second point that you made which is very interesting on the Last Man Strategy, getting orders till 2035. Could you comment a little bit which components on geographies you are getting?
So I am not going to talk -- so we're not going to talk any more detail than this. It's a competitive market, and we don't want to share such sensitive information. All that we are saying is that the customers are banking on -- talking or partnering with suppliers who can supply not just components, but also their technology partner and a strong player for the long term.
Right, right. Then just any comment on the India PV business where we've seen sort of this. You said it's a one-time impact from some customer because of which we've seen the revenue dip.
Yes. So one of the customers that we used to supply to have stopped making the products that we use to supply into. So we are now supplying to other people. Actually, we don't supply into the pan car sector anymore. We supply into the industrial and SUV sector using the same assets.
Great. Great. And just the U.S. breakeven, are we on track for third quarter that you were guiding earlier?
Fourth quarter. Third and fourth quarter.
The next question is from the lack of Kapil Singh from Nomura.
Just continuing on the question of KSSL. Could you tell us what is the fixed asset base at KSSL and how much CapEx will be required?
The fixed asset base in KSSL is not large right now because please remember, it is an integration business. Right now, we're spending about INR 120 crores in building a large facility of about 4-odd lakh square feet, which will be to do vehicles, armored vehicles, roll-away chassis and guns and mounted gun systems. And that will have a very large capacity. It will be one of the largest such capacities in the world.
Okay. So for this revenue ramp up, no significant CapEx is required. That's how I should understand.
Yes. Correct.
Okay. And second, there was also a mention of investment of INR 150 crores. I think in Kalyani Powertrain, could you just talk us to that as well, that what is the strategy...
We have a long-term strategy, which we created 3 years ago, and we are implementing that strategy. We have a plan for large supplies into the electric vehicle business, and we have to place orders for certain equipment to set up a new plant to manufacture these components and systems. And this is over a 2-year period.
Okay. So this is setting up capacity in that entity.
Yes.
Okay. And sir, at what level of revenues does this business become EBITDA positive?
Which one?
Kalyani Powertrain?
See, you have to look at it separately. You have to look at that investment in Tork separately and the rest of it separately. Tork, we did to learn about this sector, to understand the technologies and to learn manufacturing of these things, which we have done.
The rest of it is all product-specific as we ramp up to, let's say, some amount of steady production. Today, what we're doing is we are making a lot of prototypes for a lot of different people, and getting them tested, getting them approved, going through a learning curve. So just like in defense, we took a long time because we are developing the technology on our own. But then in the longer term, it gives you a lot of benefit. Same thing is what we are doing here. Obviously, we're not expecting it to take so long, but I would say at least 2 to 3 years for it to be meaningfully profitable.
Understood. And lastly, can I check on the overseas operations as well? We have seen an improvement in EBITDA margins over there. Are we -- by when do you see the company touching double-digit margins over there?
So for the full year, we will be profitable at a PBT level globally. Okay. Europe will be PBT positive, and U.S. will be definitely EBITDA positive, for the quarter 4. But Europe will be PBT positive for the full year in a healthy manner.
Okay. Would that entire margin close to double digit or by the exit quarter.
I would say high single digits.
The next question is from the line of Amyn Pirani from JPMorgan.
Congratulations on the good set of numbers. Just going back to the Last Man Standing comment that you made. I know you didn't want to share too much details. I just wanted to clarify one thing. Since you have now assurances from your customers till 2035, and given that at least the global customers are planning to move to a kind of a net zero kind of a number by 2035, would it be fair to assume that you are going to be a partner for a lot of these new age and EV vehicles also and you'll be coming up with a lot of products there?
Yes, that would be fair.
Okay. Okay. And secondly, on the defense business, the order for ATAGS that you had won for the export market, that was supposed to start ramping up from 2Q or some of the ramp-up in this quarter also includes that.
Just very small initial -- probably the first of supply.
Okay. So obviously, so this number should sequentially improve quite substantially over the next few quarters on the KSSL side as well as on your own defense.
Please understand the order value you guys know. It was spread out over 18 months. From the time it ramps up, it is spread out over 18 months. Okay? One year from the order, it's starts and it becomes 18-month order -- 18 to 20. There are 2 different orders. One is one product, second is second product. The 2 orders were received at a different time frame and both they are -- because please understand, I'm not going to a supermarket and selling my product. The customer also has some schedule by which it wants the product to be inducted.
And the INR 280 crores of new orders, what is -- can you help us understand what components or products is that for?
So that's also both capital items and revenue items.
The next question is from the line of Gunjan Prithyani from Bank of America.
I just had, again, a follow-up on the defense business. The INR 2,200 crore order book that you talk about includes only the export order that you have and the other component order. It does not include ATAGS at all, right?
No, it does not include any India orders.
It does not include any India order. Okay. And if -- would it be possible for you to share what was the overall defense revenue in this quarter. I can see KSSL, but there is also some revenue that gets captured in industrial part of the stand-alone, right?
It's about INR 250 crores for the quarter.
And this KSSL -- sorry, just trying to understand how the accounting is getting done, the stand-alone self components to KSSL and then KSSL books out to the customer. So...
No. So Gunjan, we only made components in Bharat Forge. The entire system and assembly is made in KSSL and then sold.
Okay. So part of the revenue...
That is the way it is going to work. Okay? KSSL is our company for doing defense systems. Now some of the early orders have come before KSSL was fully set up. So some of the early orders were in BFL, but all of the execution is going to happen through KSSL going forward.
Okay. Got it. And the second one I had was on the aerospace because you did talk about destocking, which impacted the revenue stream on international exports. But again aerospace, you quantified. So how -- defense is very clear now, but aerospace in terms of revenue ramp up, how should we think about that? And anything you can share for the margin also for that.
Margins are also very good. Please remember that we are using our existing holding capacities to make parts for aerospace. We have dedicated machine capacity, which we have set up for this. And we are making extremely high-end high-tech products. I would encourage you to come and take a look. We parts like landing gears. For commercial aircraft, we make fan blades in titanium and entire balance rotating assembly for jet engines. These are all get engines in the 15 to 1,000 pound thrust and above category.
And revenue ramp-up, any guidance around it or...
No. This year, we will see a revenue growth of over 30% over last year.
Okay. Just lastly, if you can talk about the outlook, both on CVs in India as well as the U.S. Class 8. You briefly touched upon it, but if you can just give us some color as to the significance and cyclicality in these both categories.
So -- Gunjan, I have my colleague, Subodh, who's the Head of our component Business. He's better positioned -- he is the right guy to answer this. Subodh, can you please?
So Gunjan to your question, at this point, we see a strong commercial vehicle segment, both in U.S. and Europe, and this is driven by the order book and the backlog. The expectation is this should continue into next year as well. That is what most OEMs are -- even publicly stating. As far as India goes, India is already seen a strong traction, including Q1, as we've seen. And then from a -- if you look at everything that's happening in the country, infrastructure-wise and others, the expectation is it will continue to be stable. It may not grow significantly in India, but it would definitely continue to be stable is the expectation.
So what is this emission related that you mentioned in Class 8, is there some bunching up of advancement of demand that you all are expecting?
No. It is -- I think the emission was mentioned in light of the advancement of the product...
Some of the new product standards coming up in the U.S. and the Euro 7 coming up in Europe.
Yes, that is in 2026, '27.
Yes, [indiscernible].
The next question is from Pramod Kumar from UBS.
Amit, my first question is on the railways side. We had this collaboration with Talgo. You can just help us understand how are we doing there? How is that business looking? Because that can, again, be a pretty significant part of your domestic industrial rollout.
Right now we're looking at components on the railway side, we're not looking at entire systems. So it's again a very complicated business. So I think we need to get our arm grounded before we bid for something that is a 30-year project. And I think that there are going to be a lot of opportunities in the future as well. So I would wait and watch. I don't know whether that is going to -- let's see where it goes.
We're in it, but we're not. It's all getting postponed and things like that from the user end. So it takes a lot of time and effort to be in these businesses. We want to be in businesses where the time and effort delivers the kind of value, return, profitability that is, let's say, phase off for the kind of effort that you put in. Plus I don't want to limit it to a geography. I would prefer to be in a business which is more globally accessible to us.
Good enough, Amit, I think I can well understand that. And Amit, the second part is on the KPTL business. Because looking at the various components, what you do, there's quite a lot, right? You're doing your advanced lead acid battery, then power electronics includes [ MCU ] everything, but which part of this which part of the component chain that you strongly feel that you're going to be building a sustainable edge which will attract lot of the OEMs towards you because what we're seeing is a lot of the OEMs are wanting to or already doing a lot of these components in-house. So in that...
No, no, no. See, actually, a lot of what you're asking is our strategy. We -- if you look at us globally, we are a niche global player. We don't play in commodity spaces. We play in high-technology niches, and we will adapt the same to the EV sector. At a component level, we will supply to all the OEMs and the Tier 1s and the new emerging customers. But we will select a few niches in that where we will go deeper and wider.
And so is my understanding right that you will be focused more on the international side rather than looking at the Indian value chain or -- am I...
We look at both. But please remember, a large part of this manufacturing is going to happen in India.
Fair enough. And Amit, generally, any color on the industrial side, nondefense vertical for the growth outlook because given how the CapEx story is evolving in India, anything which you can share on how is that progressing, sir?
On the industrial front, also, we see a lot of opportunity. In fact, we have targeted 2, 3 new sectors. Again, I don't want to go into those very quickly, because we are still playing those out. But Subodh, maybe you can generically touch upon this.
Yes, yes. Sure Amit. So we -- as Amit mentioned, we are addressing a lot of new areas in addition to the areas that [indiscernible] [Technical Difficulty].
I'm not able to hear you.
Yes, Amit. It's a problem for me. Okay.
Go ahead, Subodh. Go ahead. If you can, go ahead. Otherwise, I'll try and fill in wherever possible.
Are you able to hear me now?
Yes.
Okay. So I was saying we are in a wide range of industrial segments, which is right from heavy engines and products for construction and mining industry and so on. There are a lot of different things happening where we are adding new products, where we are adding new customers, we are adding new services and at this point, the outlook is positive for India, of course, with everything that's going on. But there's also positive for the world. And any industrial business has its ups and downs. But overall, we see the outlook as reasonably positive.
Next question is from the line of Pramod Amthe from Incred Capital.
So I wanted to -- with regard to this KSSL again. So if you have to look at the related party transaction, what proportion might be coming from Bharat Forge stand alone, as a part of sales?
KSSL is part of Bharat Forge man, it's 100% subsidiary.
I'm saying sourcing of components, if you have to look at may be 70%.
All the critical components which is ordinance and other things which are critical that nobody else can make are obviously going to come from Bharat Forge. So I would say in terms of value terms maybe 30%, 40% will come from Bharat Forge, may be 30%.
Okay. So remaining 70% will be others and then the value-add for KSSL.
Yes. Absolutely.
And if I had to look at the Kalyani Powertrain, the ramp-up is slower than expected? Or what is the status of your new plants? And what is holding you back?
Well, one thing is FAME. This whole FAME getting diluted has had an impact on everyone. But please remember that even during those times, we have not misclaimed or wrongly claimed any FAME benefits. We're one of the few companies which has not done this. So there are a lot of people who are going to have to payback the money that they have taken from the government.
And the last one is with regard to the JS Auto. Post this acquisition, any internal targets in terms -- because you are openly talking about growth outlook of -- of course 25%, 30%, has it changed now for a much aggressive because capacity is doubling up, and you are getting more client confirmation?
Yes. So like I said, this ISML acquisition has just been complete, may be in Q3, when we do our analyst meet, we will give you a much better picture on JS Auto and the overall picture, okay?
The next question is from the line of Raghunandhan from Nuvama Institutional Equities.
Firstly, on stand-alone raw material cost to revenue, despite higher industrial revenues, there is increase in this [ RM2 ] revenue Q-o-Q and Y-o-Y. Any reason for the increase? And how do you see this in coming quarters?
No, basically the product mix. It will normalize over the next 2 quarters.
Got it, sir. On oil and gas segment, there was a one-off impact as you indicated. What would be the revenue for the quarter -- or what Is your expectation on the full year growth?
Subodh, do you want to take that?
Yes. Yes. I will. So the overall growth for the oil and gas sector will be, I would say flat as compared to last year, because the oil and gas sector is strong, but there is a lot of discipline in terms of investments that is happening. One good thing that is expected by the end of this year, maybe of November, December time frame, is the demand of oil is expected to outstrip production. And at that point, we may see some amount of positive change but otherwise, we are assuming that it is going to be flat as compared to last year.
Got it, sir. And Subodh sir, on the North America Class 8, over the past 6 months Class 8 order backlog has reduced as new orders are lower than the production numbers, and some of the industry expert like America's Commercial Transportation are talking about 15% to 20% decline in CY '24. Do you expect any weakness next year?
Yes, as I mentioned earlier, despite a lot of the order intake is lower because OEMs are not opening their order book currently. I mean you've seen public statements from [indiscernible] to that effect. I think Volvo has made similar statements as well. So there is an expectation that these order books will be opened in the near future. I think all the OEMs are talking of a similar year as compared to '23, in '24 as well. So we have to wait and watch, but that's all I can tell you.
Got it sir. And just my last question. In terms of investments, they are likely to increase. So what would be the CapEx expectation in stand-alone consol for 2025?
So right now, as I mentioned, for '23-'24, '24-'25 and probably another 6 months our CapEx will be in the region of about INR 1,000 crores plus/minus 10%n combined and this is the overall CapEx.
And stand-alone will be sir?
Bulk of that will be stand-alone. Stand-alone meaning India, which includes defense, which includes everything we do in India.
The next question is from the line of Arjun Khanna from Kotak Mahindra Asset Management.
Congratulations on the great set of numbers. The first question, sir, is on the ATAGS piece. So earlier we had the DAC approval. And then last quarter you talked of the UN accepted the necessity coming through. So the next stage would be an RFQ, -- s that the right understanding? And has the RFQ come till now?
RFQ is already out.
Sure. So if one looks at time lines before an order comes through, how would we understand that?
In a realistic world now it should be less than 6 months.
Sure. Sure. And depending on time line, the delivery of the same?
We can deliver. We have the ability to deliver quite fast.
Sure, very helpful, sir. The second query was regarding the PV side of it in India, you did indicate that there is a phase out of a model. So the second quarter revenues of around INR 62.5 crores, is that the run rate we should look forward, going for in terms of the trough or potentially there were some...
Subodh what he is asking, Mr. Khanna, is that our passenger vehicle India business was at roughly about INR 60 crores to INR 63 crores. And what do we expect for the quarter and going forward?
I think we've lost Subodh. Maybe I can have him circle back to you or somebody can get back to you.
I think we should get back because I do know that we have won quite a lot of new business, so we should get back to the previous numbers of closer to INR 80 crores.
Please remember one thing, Mr. Khanna, that we will use the same fungible capacity to make parts for India or exports. If the India business is reducing, we will go harder on exports. Increase our imports of pass car are -- it's almost 5x the size of our domestic market.
Right. We did almost INR 280 crores this quarter. Well noted, sir.
Amit, I lost for a moment. I'll just add one comment to what you said. We have also Mr. Khanna got ourselves on a couple of new programs within India as well. And we are also making a very [ defensive ] choice in terms of which segments to play in India as well. So there are a lot of those factors coming in as well because we want to protect our value creation and [indiscernible] but overall, we see a reasonable growth pattern for us in the PV segment, both in India and globally as well.
[Operator Instructions] The next question is from Lakshminarayanan from Tunga Investments.
Couple of questions. First, in terms of the India CV business, right? What has been -- have we maintained or increased our market share?
We have grown our market share.
And what is the approximate tonnage? Do you give the data in terms of automotives, CVs or...
No, no, no. We only talk about overall tonnage, which was 67.5 -- 67,000-odd tons.
Okay. Okay. And a couple of quarters back you mentioned that you would like to get into things like transmission driveline components in addition to front axle beam and crankshaft.
We already made those and we are in fact expanding our capacity in those areas. We make over 1 million components that go into those products already per year.
Got it. Got it. Sir and in terms of the outlook for both Europe and U.S. in terms of the Class 8 products, right? You say that it's -- you have capacity visibility -- sorry, the demand visibility for the next -- till FY '24 or FY '25?
Subodh?
So at this point, we have visibility till end of this year and probably 2 quarters or 1.5 to 2 quarters of next year, based on the order books of OEMs.
Basically 12 months on the order book.
Yes, roughly -- yes, that would be easier.
[Operator Instructions] The next question is from Rakesh Roy from Omkara Capital.
Sir, can you light on the business recently, we get license from home ministry for small arms business, where we stand and scope of business, sir?
Yes, with the license, and we will bid for business based on this license.
Okay. We have currently facility for this, sir?
We have a facility for making prototypes. If we get a order, we will set up the facility.
Okay. And sir, we are looking only for domestic market or exports also for this small one, small arm?
First, domestic.
Thank you very much. We'll have to take that as the last question. I would now like to hand the conference back to Mr. Amit Kalyani for closing comments.
Ladies and gentlemen, thank you, as always, for your participation, encouragement, support and deep sight -- lot of insight and planning with which you ask us questions. It keep us on our toes, and I hope that we're able to answer your questions adequately. We always appreciate your support, and we look forward to continuing our engagement with you, and we will meet soon in the next quarter, if not before that.
In the meanwhile, if you all have any specific questions or would like to visit any of our facilities, you're most welcome to reach out to our team. One point that I forgot to mention was that we won a ESG Award from the Financial Times and Statista of being one of the earth's champions. And this goes a long way in our customers recognizing the pioneering work that we are doing on the environment front. And I think that is another factor which will help us in being able to move a lot of business to places like India.
Thank you very much. Have a nice day.
Thank you very much. On behalf of Bharat Forge Limited, that concludes this conference. Thank you for joining us, ladies and gentlemen. You may now disconnect your lines.