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Bls International Services Ltd
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Ladies and gentlemen good day, and welcome to BLS International Q3 FY '19 Earnings Conference Call hosted by Asian Market Securities Limited. [Operator Instructions]Please note that this conference is being recorded.I'll now hand the conference over to [ Mr. Ritesh Barjatya ]. Thank you, and over to you, sir.
Thank you, Neerav. Thank you, guys, for participating in the BLS International Services Limited 3Q 9-month FY '19 Earnings Con Call. Today, we have with us Mr. Nikhil Gupta, MD of the Company; Mr. Shikhar Aggarwal, Joint MD; Mr. Karan Aggarwal, ED; Mr. Ajay Milhotra, CFO of the Company; and Mr. S.K. Sharma, CFO of the Company.Now, I’ll hand over conference to Mr. Nikhil for giving the opening remarks regarding the industry growth and then discuss the quarterly performance. Post that, we will have the Q&A session. Over to you, Mr. Nikhil.
Thank you, [ Ritesh]. Good afternoon, everybody. Welcome to the third quarter earnings call of BLS International Services Limited. As you are all aware, BLS International is a leader in consular and Visa process outsourcing and is a preferred partner for embassies and governments across the world. The quarter has been satisfactory. Our results have been good, and we are focused on transforming our existing structure and preparing the organization for sustained and profitable growth, for which we started implementing the recommendations of the global consulting firm, Ernst & Young, to reengineer and fortify our business operations. Meanwhile, we are continuing to strengthen our leadership team to benefit from the experience of seasoned professionals, who have strong experience in their respective fields. We've also set up a high power advisory board to complement the fortified leadership team. The members of the advisory board includes senior and prominent professionals from civil services, recognized for their successful track record and leadership. Now I would like to give you a quick highlight of the third quarter ended 31st December 2018, and then open the session for the question and answers. The consolidated results saw a total income for the quarter ended 31st December, 2018, at INR 201.3 crores compared to INR 203.8 crores in the same period last year. The net profit for the quarter ended December 31 is INR 21.5 crores compared to INR 20.6 crores in the same period last year. Earnings before interest, tax and depreciation and amortization is INR 29.3 crores. As far as the cumulative results for 9 months are concerned, the total income for the period ended 31st December, 2018, is INR 594.8 crores as compared to INR 586.9 crores for the comparable period in the previous year. Net profit for the period is INR 88.5 crores as compared to INR 76.5 crores for the same period in the previous year. During the quarter, we made the initial investments necessary to start the U.K. operations, even as we scale down the Sewa Kendras model in Punjab. Both these will have long-term benefits for our business and I'm satisfied that we are moving in the right direction. The Spain global contract yielded strong results for another quarter in a row. Since the rollout of the project, the visa application center has regularly been fortified with wide range of value-added services for the applicants' convenience. The total application count is 6.7 million for the 9 months period compared to 8.1 million application processed during the same period in FY '18. The downsizing of the Punjab project has been the major factor for the reduced number of application count. The renewed Punjab project, which is on a user-pay model is operating on track, and we have achieved profitability in the month of January 2019. We expect the profitability to improve further as new services are added to the portfolio. Under the new project, we are operating 352 facilitation centers for providing 242 citizen services, up from initial 169 services, covering 16 districts of Punjab and working with 22 departments. BLS International's contract for Attestation and Apostille Services was renewed by the Ministry of External Affairs in India. The company expanded operations and added 11 more centers across the country to facilitate the process for Ministry of External Affairs and the customers. We also were awarded a contract for the advanced innovative delivery services under the TAW-SEEL using mobile vans in UAE. We expect to roll out the project in current quarter. The UKVI project that was announced in the first quarter was rolled out in Q3 FY '19. We launched the premium and mobile services to handle visa renewal applications for individuals who are already in the U.K. We are in contract with the Islamic Republic of Afghanistan in UAE, representing the Afghanistan mission in UAE, Qatar, Oman, Bahrain, Kuwait and Saudi Arabia. Under this partnership, the company is providing consular services through registration of Afghan citizens, et cetera. During the quarter, BLS was also conferred with 2 prestigious awards. First for the best visa facilitation center at the GCC Africa Leadership Excellence Awards and then for excellence in visa application outsourcing at the Stars of Industry Award by ET Now.In conclusion, I would like to restate that this is a very exciting phase for us as we begin our journey of transformation. We are focused on long-term profitable growth and are making all necessary investments that can enhance the efficiencies and generate growth. The industry is evolving rapidly and within this emerging scenario, we're already gearing up to provide innovative solutions to governments and citizens across the globe. We have engaged global consulting from EY to review our structure and processes and are now implementing their recommendations that will enable us to reengineer and transform the business. With this, ladies and gentlemen, thank you for your patience. And I now invite questions in respect to the results for the quarter ended 31st December 2018. Thank you.
[Operator Instructions] The first question is from the line of Vikas Jain individual investor.
Congratulations on the set of numbers that you released yesterday. Though perhaps from an individual investor's expectation, the numbers are quite flat. So probably, we'll get some more insight about why they were flat and we haven't seen any of the growth in this quarter. My question is related to the outsetting that you have had with the Punjab government, which if I remember your guidance correctly from the last con call which we had for Q2, you were to request significant amount of the outstanding by now. So any insight on that would be quite helpful.
Yes. Okay. So the last quarter end in September, we reported an outstanding of approximately INR 127 crores on the government of Punjab. During the quarter, we've received approximately INR 25 crores from them. At the same time, we have been handing over the assets based on the old contract to the government and invoicing them for those assets. So we've invoiced them approximately INR 22 crores during the quarter. So the net outstanding has actually come down from INR 127 crores to INR 123 crores, even though we received approximately INR 25 crores from the government during the quarter. Now keep in mind that the peak receivable from the government was over INR 300 crores. So it's now down to approximately INR 123 crores. So we have had substantial reduction in the receivables and we continue to maintain that these will come down gradually, but by June, everything should be received.
Great. My another question is the UKVI center that we started operating in Q3 -- in the mid-Q3, has it started contributing to our top line by now? Or do we expect that to start contributing in Q4?
I think for the UKVI, as the rollout was quite standard as we had to roll out more than 60 offices across the country. So I think real revenues should come in this Q4 quarter and also the next quarter -- in the next financial -- Q1.
Great. Any guideline on the top line addition because of this new rollout?
I think our guideline is -- for the next year, you're talking about, correct?
Q4 and the next year, yes. So I guess the next year, if I remember the slide correctly that is somewhere around INR 200 crores. But for Q4, it will be really helpful.
I think since we changed the Punjab model also this quarter, so the revenue for the UKIV, I think, we should see a growth in the numbers definitely. But I don't know exactly like where it is, I think, end of the quarter to exactly see how much numbers come in.
And also the rollout is still happening. So rollout has happened, but we're still getting along and starting all the operations there.
The full exact numbers, we'll not be able to judge as of now.
Fair enough. My next question about the Star acquisition that we made sometime in earlier this year. Has that started contributing to our net revenue inflows?
Yes. So Starfin is consolidated and has started contributing and is doing, in fact, much better than what we had anticipated when we acquired the company.
And what are the EBITDA margins that Star is contributing?
Ajay, would you recall and find what...
So based on month-to-month, on an average, it will be about 24%.
24% of the EBITDA margin?
Margins, yes, 24%.
Okay. And the remaining ceiling that we were to meet to SBI for the Star acquisition? Are we done with that or that is yet to come in Q4?
We've acquired -- as we reported last night, we've acquired 74% of the company, and we paid INR 90 crores. The balance of 26% is yet to come.
The next question is from the line of Saumik Doshi from Greshma Shares & Stocks Limited.
Nikhil, I wanted to ask a question. The amount receivable from Punjab government is INR 123 crores. On the balance sheet, we've written the receivables as INR 150 crores. Can you give a split of the INR 27 crore receivable?
Ajay, I'll hand it over to you.
So out of that INR 150 crores, like we said, INR 123 crores is Punjab and the balance pertains to visa and consular services.
Okay. Okay. And in the -- we see -- in the balance sheet, we see an amount for goodwill as INR 8 crores that has come up. Can you please explain that?
Okay. You see we acquired Starfin, and that was valued by an external valuer. And so goodwill is arrived at when you see a future in the business, but the book value of existing business is not what the value you pay, so the difference is accounted for as goodwill.
Okay. Understandable. And so there's one more footnote that you've mentioned. It says that the other income on profit on sale of fixed assets at INR 21.4 crores.
Right.
Is that a 9-month? Or is that an entire year amount?
That's a 9-month figure. And on that point, all we want to say is that in that 9 months, so of the INR 21 crores, INR 15 crores was booked in this quarter, INR 6 crores was in the previous quarter and you will see that we've also highlighted that the business that has contributed the largest in terms of operating profit has been the visa and consular services, which contributed INR 16.5 crores.
Okay. So in this, you've mentioned INR 17.3 crores as bad, which is there in the statement. So the other INR 4 crores would be?
Other INR 2 crores.
So other INR 2 crores are -- about INR 1 crore for miscellaneous income and 1 crore for interest. If you permit me, I will tell you -- so as you trickle down the P&L, you can see that our direct expenses defer at the gross margin level, vis-à-vis the last quarter have gone up roughly by 10%. And the reason if you permit, we can attribute, and the reasons largely are; one, we have some small increase in direct cost in the operations; two, we have the closure of the Punjab contract, the value of which we'll put in the footnote, that's substantial; three, last year, we had a full year of and every quarter had a full quarter of Punjab. And therefore, in that business, the proportion of tariff cost to revenue was lower. And therefore, we give higher gross margin and higher EBITDA margins. So that, of course, is also reflected. And the fourth point is that of UKVI as we ramp up the business initial days, you will understand, necessarily have higher direct costs. All of these put together has given us that a higher direct cost and a lower gross margin.
Okay. So and in the U.K. business, so is the revenue -- the revenue is yet to be booked, right?
No. We've commenced operations, i.e. the ramp up has to happen, but we commenced operation in November, and [indiscernible] also had effects.
And the current quarter includes the expenses that have been incurred so far?
That, in fact.
Yes, expenses that have been incurred.
Okay. Okay. And I also see a mention of BLS International in Turkey. Could you tell us more about that.
Specifically in Turkey, correct?
Yes.
Yes, in Turkey, right?
Yes. Yes.
We have plans to start this work across different countries in the world. So I think that is why we have just launched the company in that effect. But I think officially we have not released anything as of now. In fact, we will do that in due course of time, but regarding the new project, that will commence shortly.
Okay. So you've already received a contract with regards to that?
We have not officially announced anything, I think, so we will just launch the company, if I do.
Okay. Okay. And also in the stand-alone books, I see that there's a loan that has been increased by INR 16 crores. Is there a way we can get a composition of like this loan?
So you see there is some increase by INR 16 crores. Sorry, versus was it the last quarter?
Yes.
Okay. So that largely is pertaining to our working capital requirements within the company.
Okay. And the other financial liability is also increasing by INR 10 crores will be the same?
That is right. Is it only consolidated or the stand-alone?
Stand-alone. Stand-alone.
That is right.
The next question is from the line of Chirag Vekaria from Budhrani Finance Limited.
Okay. So can you give the breakup of visa business and Punjab business for this quarter and same quarter last year?
Breakup as in -- in terms of revenue?
Yes, yes.
The constant flow of revenue is INR 184 crores from this year, and vis-à-vis last year, it was around INR 48 crores.
So you're talking total cumulative for 9-month period?
No. For the...
Q3. Okay. So in the INR 201 crores that you see -- sorry? Okay. So we have INR 184 crores of operating, INR 17 crores of other income, right? In that INR 17 crores, the asset sale which is INR 15 crores, of course, pertains to Punjab. Full income from e-Governance, we would say, excluding only the visa business would be about INR 182 crores. Sorry, so we said INR 184 crores as a total revenue, operational revenue. Right? And we said nonoperational revenue was INR 17 crores. Okay? So of which about INR 170 crores is visa, about INR 12 crores is e-Governance.
Okay. And what was that similar number in Q3 '18?
Q3 '18? Q3 '18...
That will be INR 48 crores, Ajay.
About -- we did about INR 16 crores a month, which is INR 48 crores a quarter.
For Punjab. Rest of it is e-Governance.
Okay. So what I'm trying to understand is, has the visa business impacted -- got impacted?
It's increased. It's actually grown. So despite the -- that is the reason that total revenue has grown from INR 91 crores to INR 200 crores.
Okay. Okay. And similarly on the cost side, you have explained that the costs have gone up. I wanted to understand when Punjab business, for quarter 3 we have -- hadn't the Punjab business, so why yet has the cost gone up?
Well, they were leftover costs, no? Go on [indiscernible]
Yes, so if you can see in our notes, we've explained there were some crucial costs in the contract, which was about INR 13.5 crores. In addition, there were some direct costs in our existing businesses of visa. There was also that we started a new contract in November, so they were direct cost related to UKVI. And finally, we also mentioned earlier that the proportion of direct cost to revenue was certainly low in the case of the erstwhile Punjab contract, and that contributed higher gross margin and higher EBITDA margin, which is not the case for this quarter.
Okay. Okay. So incrementally, what we will see is, next quarter onward, that the cost should go down and the U.K. business should come in?
That's right.
That is right.
Okay. And is there further effect on for left to Punjab government the way we have done it in Q3?
Yes. There is a little bit of assets yet to be transferred. Total gross value will be about INR 20 crores.
INR 20 crores. And this should happen over the next few quarters?
Yes. So next quarter it will happen.
Okay. INR 20 crores. And what would the effective tax rate for '19 and '20?
We should be between 7%, 14%?
Sorry, come again?
Between 7%, 14%.
Next question is from the line of Rahul [ Koti ] from International Organization for Migration.
So my question, yes, so my question is regarding the Punjab government. So as you mentioned earlier, like you have turned profitable from January. So I wanted to know what is the revenue expected from the Punjab government project for the next year, like what is the predictive revenue for the whole year from Punjab?
That will be over INR 50 crores. We are looking at between INR 4 crores to INR 5 crores of advising every month.
Okay. And follow-up to that would be what would be the expected EBITDA margin of the next year for the Punjab project since we have made all the investments. So what would be -- the margin should be higher, right, compared to this year?
Yes, we are talking about 15% to 20% margin in the Punjab contract in the next year, which is the targeted margin for the entire business also -- company.
The next question is from the line of [ Nirinjin Shufi ], individual investor.
I would like to start off by saying that you are doing a fantastic job in the U.K. according to very good feedbacks from my friends who renewed their Visas recently. So congratulations on that. My first question would be -- can you hear me fine?
Yes. Yes, thank you. [indiscernible]
Yes. Yes, definitely. First question is what is the total debt on books and total cash position? And the follow-up to that is, a couple of quarters ago, I had asked a similar question, and you had mentioned the payments that we received from Punjab government that is going to be good enough for us to clear the debt off the books?
Yes. Right. So the cash on the books as of now, cash and cash equivalents is about INR 167 crores as of 31st December 2018. All right. And the borrowing costs -- or the borrowing from the banks is about INR 31 crores.
Which has gone down.
Which has gone down, of course, from March which was at INR 54 crores then.
And we still maintain that those Punjab receivables will more than covered the borrowings of -- the retail borrowings.
So at what point are we completely expected to clear all the debt? Do we have a position in mind? 1, 2 quarters? Or?
There's two quarters, this one and next quarter.
Right. Okay. All right. Cool. Second one is with -- you said we have about INR 167 crores of cash and also I think last time you mentioned you are building sort of war chest to bid for new project. What steps management is taking specifically to enhance equity shareholders' value?
Increase shareholders what you're saying? Well, you see we -- and we come out with a presentation soon, we have a capital allocation policy in place. The value of shareholders does certainly not come through as we see -- since it's a growth company not come to dividends or buybacks, but it's going to come through growth, which is new contracts, it's going to come from the M&As that we have, that we were working on. And before the refunds, kind of, were deployed for that. And so this year, it would be existing businesses, that is to say, and M&A. And we'll -- going forward, I don't think we'll be looking at other than to say that we adhere to our dividend policy about 2 15% dividends each year of the consolidated profits. But we don't foresee ourselves in a buyback situation, largely because we are a growth company.
Right. Okay. All right. Understood. Also, I mean, one other was while I appreciate you cannot disclose any specifics, I would like to know what is the opportunity size in terms of the visa contracts that are out for 2019? And how many are we expecting to win out of that? Because since you mentioned you are focused completely on growth, I assume you've got the big picture.
Sure. So the [indiscernible] union has around 4 million applications that are out for bidding. That is the start of tendering cycle will start soon. So as you know, it was the holiday season, and we are shut around that time. So now, everyone is back, and all the tenders have come out within this year. And so we have a tender out, that is expected to come out by year end, so it's by the U.K. government, and that's in the U.K. Visa, as you know, across the globe since we are delivering the services well for the [indiscernible]. Currently, we expect 2 or 3 strong competition for that tender. Also, there is a tender out by the government of USA, in which we will also thinking about how we can roll out.
I think the value for '19, '20, the value of contracts that we are looking at is probably close to $3 billion to $4 billion.
Did I hear $3 billion to $4 billion?
Yes.
All right. Okay. That's fantastic. And what sort of -- I mean, I know, it's going to be only when we know the results, but what's sort of a comfort level that we have out of that big pie, what's the share that we can garner from the capability that we have and, you know?
Hopefully, 15% is what our market share presently is.
Okay. All right. Cool.
Then based on market share or the business opportunity includes the 5-year revenues. So when you look at the opportunity or when we grab the opportunity, it includes revenues for 5 years. So divided out will be realized in 1 year only.
Understood. Understood. Last one is -- or similar on the opportunity side on the citizen services that you provide. Is there a figure on that as well that we're targeting?
It should be 20%, 25% of the entire consulate of businesses.
[Operator Instructions] The next question is from the line of [ Vikash Shane ], individual investor.
This is not a question, but a request or a suggestion. So this is in relation to the con call notification that gets posted to the exchanges website. I believe, for this particular instance, it was posted pretty late, so as an investor, I think the investor community would appreciate if it gets notified a day or two in advance as to when the con calls are happening. That's one. Second, today's notification did not include the con call coordinates, within which one can join. So perhaps that could be looked into.
Thank you for your inputs and your thoughts. We'll certainly keep that in mind for next time.
[Operator Instructions] And the next question is from the line of Prabhat Chandra from Greenfield Advisory.
So I have one question regarding the intangible assets. I see that it has gone up from INR 9 crores to INR 23 crores. So I think you explained the goodwill part. If you could also please explain what caused this threefold rise in intangible assets.
Yes. So I think, as we mentioned to an earlier question that we've commenced the U.K. operations, and we have -- the new system has to be deployed. So we've deployed a new system. And therefore, we've acquired new systems, new software and that is being capitalized, and therefore, that result is the intangibles.
Right. So if it excludes system software, why it has not been expensed out? Any possible reason for that?
So there we see we will gradually expense them out for acquisition through amortization, because this will -- since it is a -- so it's a contract that runs -- the current contracts on C+ 1 [indiscernible] years, and therefore, this will be amortized over 36 months.
The next question is from the line of [ Gomin Golli ] from [ KR Choksi ]
When I'm looking at your cash position, on the balance sheet, I can see that you bifurcated in 2 line items. So I think I need some little more color on that.
Right. So you will see the pure cash and cash equivalents, that is lying in current account. And then you will see the other amount, which is a larger component of about INR 115 crores, which is the net piece.
Okay.
Right? [indiscernible] I got to INR 167 crores.
All right. So to compound on this, is the whole cash available to the Indian subsidiary or is there some cash which is at the subsidiary level in Spain or Dubai? Secondly [indiscernible]
This is cash that is consolidated as 100% subsidiary BLS entity.
Okay. So in future, if you want to make any acquisitions from the Indian subsidiary or repay the loan which is taken for the Punjab government contracts, there will not be any issue of repatriation of the same cash?
No, we -- there will be dividends coming in so there will absolutely be no problem.
Then we will get the money from the Punjab government, which will pay the bill to the banks. So there's no issue there.
Okay. I understand that. What I wanted to understand was from this INR 167 crores consolidated cash position, what is the cash level I can use as on today, without -- if there is a dividend which is coming through, what is the net amount of total cash from which the dividends will come from? And what is the effective tax rate on that cash?
Yes. So suffice it to say that INR 167 crores is available for the company to use, the dividend distribution tax that is levied is about 20%, which when is declared get a credit of.
Okay. All right. And I missed your explanation about the intangible assets. So the INR 23 crores, the increase -- the increase was around INR 12 crores, that is from? Can you explain that again?
All right. So we said we commenced our U.K. operations in November. Now this is a big contract for us, and so we have to have the system, the processes, the software, the technology in place. And this is the cost we've incurred for the revenue that we will get over the 36-month period. 36 plus 12 plus 12-month period. And therefore, this cost will be amortized over the 36-month period.
All right, understood. That's consistent with our existing policy.
The existing policy. It's also consistent with the accounting concepts of matching revenues for matching costs. And that is why each month that we incur -- that we accrue revenue, we'll match the cost against it.
All right. Thank you for that and my last question is on the U.K. business. What kind of impact do you see from the impending Brexit? I mean, what is the concern that you are looking forward to? And how can you overcome those?
It is possible, we have to seek an agreement with the government, so we cannot comment on any matters related to Brexit or anything. But as we have commented, the minimum revenue that we have mentioned in the contract that we already accepted and made on this contract. So whatever policy changes, that will not impact our revenue.
All right. So as an industry on the whole, in an event like this, would this be -- would this increase your opportunities set or would it impend on your existing business. That is what I wanted to understand, actually.
I think globally, I don't know exactly how it will happen. But I think definitely, I see that our business will definitely increase.
[Operator Instructions] The next question is from the line of Saumik Doshi from Greshma Shares & Stocks Limited.
Sir, can you give a split of the borrowing in the -- so you have particularly borrowing left. Can you give us little bit of that?
Yes. So in that INR 30 crores, INR 31 crores, first pertains to Punjab.
How much?
INR 24 crores.
INR 34 crores to Punjab?
INR 24 crores. Out of the INR 31 crores or INR 30 crores, INR 24 crores to Punjab, and the balance, INR 6 crores, INR 6.5 crores to the holding company, BLS International.
Okay. And sir, again, to come back on your dividend policy that you just mentioned sometime back. You said that you will be giving 15% as dividend of the -- or like 15% of the profit of the dividend. But in the earlier con call, you had mentioned that you wouldn't require more than GBP 1 million, like INR 10 crores for your U.K. contracts and the contracts beyond. So why hold on to so much cash? Why not reward shareholders with the dividend?
I think for the U.K., we had informed in the last call, also in the shareholder letter that since the project was getting staggered. There's staggered rollout, we are rolling out across 62 locations across the U.K. So the investment, our total investment for the project will come to about GBP 3 million to GBP 3.5 million total investment as and when the complete rollout all of the operations and all our services are live and revenue generating. So I think that is on the U.K.
Yes. And we also, we've explained on the CapEx, on the dividend, the policy that is out there in the public domain and on our site is that we've declared up to 15% of the consolidated profits after taxes. So the word to be highlighted is up to.
And we also see the whole opportunity in terms of tender and we anticipate the opportunity side -- the opportunity side that is coming up now in terms of bidding and tendering. So we feel that once that opportunity set is within grasp, sort of market share effort, then definitely we will need some investment in terms of...
How much would you want to keep it, like, I'm saying like you have INR 157 crores cash on books. So like, why not -- like usually, negative working capital companies give a higher dividend like up 50% of the profit. But like why would you want to hold up to like this amount? Like even GBP 3 million to GBP 3.5 million would be INR 35 crores, INR 40 crores. Like why would you want to keep INR 157 crores of cash on books?
I agree with you. But as we see that we are a growing company right now and we think that we can definitely add more revenue to the company and the investor by investing these money in the projects that we are going to invest in the near future. And that definitely will require money. As the size of the projects become bigger right now, we are like totally we're dealing with opportunities wherein we have to check our operations for the U.K. government across the world, obviously we have some contracts with U.K. government and there is the opportunity with the U.S. government. So that will definitely lead to more investments and more return on our investments. So that is the reason that we want to hold on to the money right now.
[Operator Instructions] The next question is from the line of Chirag Vekaria from Budhrani Finance Limited.
So just want to understand that part on the line item of other income. You have given asset worth INR 22 crores to the Punjab government, and you have both gain on transfer of assets. So is this how we should look at it? That INR 22 crores has been transferred and INR 17 crores is the gain?
No. Okay. So INR 21 crores is the total cumulative net gain from sale of assets to Punjab government, which INR 15 crores of which happened in this quarter, INR 6 crores of which happened in the last quarter. Okay. So this is a gain -- the book on the asset transfer to the government. It is net of the costs.
Because it was already depreciation -- depreciated in our books because of the 60% depreciation rate [which provided] IT [80%] but the real value as of today was what at which we are transferring it to them.
You have to recognize that we took INR 75-odd crores in the government of Punjab contract and now they were closed gradually it was to all the site improvements. And those assets have been transferred after 2.5 years at a loss of INR 21 crores, INR 22 crores. So we'll just [indiscernible]
So sir you have transferred the asset at INR 21 crores, INR 22 crores, right?
No, no. Let's repeat it. The 9-month period reflects a profit on sale of assets of INR 21 crores. So far, so good?
Yes. Yes.
Okay. So this is net profit on sale of asset. Therefore, there would have been a sale price and there would have been a cost. When you subtract the 2, the sale price minus the cost gives us the profit of INR 21 crores. And that has been booked in the 9-month period, INR 15 crores of which in this quarter, INR 6 crores of which is in the previous quarter.
Okay. Okay. So when you say there is INR 20 crores yet worth of asset to be transferred, will we be looking at gain there as well?
Yes. Yes.
[Operator Instructions] As there are no further questions from the participants, I now hand the conference over to Mr. Nikhil Gupta.
Yes. Well, thank you very much, everybody, who participated in this investor call. We look forward to your continued participation in the future. Thank you.
Okay. Go ahead, sir.
Yes. On behalf of Asian Market, we would like to think all the participants for participating in the call. Also, special thanks to Mr. Nikhil Gupta, MD, and his entire team for giving the detailed industry scenario and quarterly performance of the BLS International. Sir, any closing remark you would want to make? On behalf of AMSEC, we will conclude the call.
Thank you.
Thank you very much.
Thank you.
Thank you very much. On behalf Asian Market Securities, I conclude this conference. Thank you for joining us. You may now disconnect your lines.