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Nava Limited
Earnings Call Analysis
Q3-2024 Analysis
Nava Limited
Investors will be encouraged by the robust financial performance this quarter, underscored by substantial debt repayment. The management showcased their confidence in the company's liquidity by repaying INR 100 crores, significantly lowering the total debt to a manageable INR 250 crores. With a focus on continued debt reduction, the company signals strong fiscal responsibility and an improving balance sheet.
The company is adept at navigating the cyclical nature of the Ferro Alloys market, considering long-term strategies rather than short-term fluctuations. With a defeat in recent downturns, plans for expansion in Ivory Coast are being pursued, leveraging local advantages such as access to raw materials and prospects for lower power generation costs through biomass, thereby enhancing competitiveness and long-term profitability.
Amidst market pressures, Nava Limited has maintained a cautiously optimistic outlook. The company successfully received $18 million, which alleviates immediate financial pressures and shows progress towards settling outstanding receivables. With a clear strategic focus on growth and operational efficiency, Nava Limited is positioning itself to capitalize on future market recoveries.
In an innovative move, the company is exploring mining in Ivory Coast coupled with the potential establishment of a silico manganese plant. A captive power plant in the region would support this endeavor, driven by the need for cost-effective energy solutions. This strategic plan advances the company's entry into new markets and ensures that it remains a step ahead in the manufacturing sector.
Nava Limited values transparency and has committed to improving information sharing with investors. Although there was a delay in the uploading of result presentations, the company has taken feedback on board and aims to better align its practice with investor expectations. This responsive attitude enhances trust and reinforces the company's commitment to good corporate governance.
The closing statement from the management reflects a resilient and appreciative company culture. Acknowledging stakeholder support, the company reiterated its dedication to excellence and future growth. Investors can expect a management team committed to driving value and willing to engage openly on any further questions or clarifications, enhancing the company's reputation as a reliable investment choice.
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Good evening, ladies and gentlemen. I'm Pelcia, moderator for the conference call. Welcome to Nava Limited Q3 FY '24 Earnings Conference Call. [Operator Instructions] Please note this conference is recorded.
I would now like to hand over the floor to Mr. Mohit Kumar from ICICI Securities Limited. Thank you, and over to you, sir.
Thank you, Pelcia. On behalf of ICICI Securities, we welcome you all to the Q3 FY '24 Earnings Call of Nava Limited. To discuss the results and queries of investors, we have with us Mr. Ashwin Devineni, Chief Executive Officer; Mr. GRK Prasad, Executive Director; Mr. Nikhil Devineni, Senior Vice President; Mr. Sultan Baig, Chief Financial Officer; Mr. VSN Raju, Company Secretary.
I'll hand over the call to the management for a brief opening remarks, which will be followed by Q&A. Thank you, and over to you sirs.
Good evening, ladies and gentlemen. This is Ashwin. I am pleased to welcome you all to the Nava Limited conference call discussing our financial results for the third quarter and the 9-month period of fiscal year 2024.
It is with great satisfaction that we share the highlights of our achievements across various segments, demonstrating our commitment to financial stability, operational excellence and sustainable growth. Firstly, I'm delighted to announce that Nava Limited has achieved its highest ever quarterly profit of INR 465 crores during the third quarter, making a record profit of INR 1,001 crores for the 9-month period ending 31st December 2023.
One of our significant accomplishments is the substantial reduction in our consolidated debt, which has decreased by 93% compared to December 2022. Our Zambian subsidiary, Maamba Collieries Limited, has made substantial progress in repaying its long-term debt, and we are on track to achieve a debt-free status by the end of this fiscal year. These exceptional results and our operational performance across other divisions, such as the agribusiness in Zambia and mining exploration in Cote D'Ivoire underscore our commitment to creating long-term value for our shareholders, and we remain optimistic about the future as we continue to focus on achieving our goal of becoming long-term debt-free at the group level.
Thank you very much for joining us today, and I look forward to an engaging discussion on our financial performance. Thank you. We can take questions now.
[Operator Instructions] First question comes from AM Lodha from Sanmati Consultants.
Yes, Ashwin, congratulations for a good set of numbers as well as very good operational performance of merchant power plant in India, along with the 300-megawatt in MCL also. I have a few questions regarding your results. Number one, what is the status of arbitration award money, which our company is supposed to be received by December '23?
Yes. So thank you for the comments, Mr. Lodha. In terms of the arbitration amount, give me a second. So outlook for -- in the last year, we received the -- to date, we've received $264 million. And $254 million is pending, which we expect to receive by this year-end -- calendar year-end.
No, no, no. The money was to be received in 2 tranches. Some money was to be received by the December '23 and USD 180 million was to be received by December '24. So just I'm not discussing about USD 180 million companies supposed to receive by December '24. I am just asking about the money, which are supposed to be received by the company by December '23. How much is pending? And when do you expect to realize it?
No, in terms of '23, what was supposed to be received, there is about $75 million still pending. But we have been in discussions with the utility because it's a very large amount, and also there's -- in terms of the -- there's some -- we're getting it in U.S. dollars, so there are some currency issues. But things are going as per plan. Discussions are going well. And based on the new plan that we keep agreeing with ZESCO, they are performing. So as of date, they still have to pay us $254 million before this calendar year.
Current -- okay, sir. Sorry to interpret you. Current billing -- monthly billing is being received by the company and got on time?
Yes. We've been getting that on time. There's no issue.
Okay, sir. My second question, is the company is likely to pay entire external loan by December -- March 2024? What will be the allocation plan of the company when the arbitration money or the cash approval -- surplus arise out of the normal operation of the company? And can we expect the money due to a holding company of MCL in Singapore from -- which is due around approximately [ $700 million ] plus interest. Can we expect that money to be bring back in Singapore subsidiary and ultimately in Nava?
Yes. So I think one of the reasons we are paying off -- accelerating paying off this debt and repaying a lot of this debt, one is because interest rates are extremely high. And number 2 is also to allow us to access the cash that MCL generates in the form of [ NPL ] declaring dividends of being off the loan from this holding company Nava Bharat Singapore. So like you rightly said, our intentions and plans once we pay off the debt are, yes, to kind of pay off the shareholder loan and the interest and then also further declare dividends post that, which will come back up to the parent company Nava.
Okay, sir. My last question, regarding power. Power is a core business of the company, whether company is likely to expand this business in India as well as in MCL where plenty of coal is available.
Yes. So I'll -- I mean, in terms of -- let me start off with MCL, which is the -- probably the easier question. We do have intentions to double the capacity at MCL. In fact, a lot of the technical work is being carried out. We have, in fact, spoken to the government and we've indicated that they need to help provide funding, given that not a lot of banks come forward towards coal funding now. So the government also is working on that. So we have [ stepping ] up capacity in Zambia to 600 megawatts.
In India, Mr. Lodha, the issue is with coal. Fortunately, right now, we do see a positive swing with regards to the past market. But in terms of setting up a new plant, there are a lot of uncertainties and especially given the fact that coal prices have gone to a level where you only make money if the power tariffs are high, does not validate possibly setting up a new power plant at this stage in India -- coal-fired power plant at this stage in India. So currently we are not...
Thanks a lot, sir, for clarification. And congratulations again for the good set of numbers, sir.
Next question comes from Bharat Sheth from Quest Investments Advisors Private Limited.
Congratulations on a good set of numbers. I have -- now on power side, you have already replied everything. I want to get some sense on the -- our Ferro Alloy business. So where do we see currently still we are incurring losses, but in your fair opinion when we can really see that turnaround of business?
Yes. Mr. Bharat, thank you for the question. Unfortunately, in Q3, we did not see much of an increase in ferro alloys prices. It was more or less similar to that of Q2's. But going forward, we have witnessed about 10% to 15% increase, particularly in the export market. So going forward, we see that there would be improvements in the Ferro Alloys vertical. Having said that, we have also taken certain corporate actions to derisk ourselves from a single product line because currently, we're only producing silico manganese, which is a bulk alloys. In January, we had diversified one of our furnaces to produce even ferrosilicon. Now with ferrosilicon, we are fortunately witnessing margin as opposed to silico manganese and the delta being of about INR 15,000 to INR 20,000 between the 2. So if this does sustain the train of thought is to convert one more furnace for ferrosilicon production so that the realizations of the Ferro Alloys vertical would improve.
Sir, I mean, if you can -- I mean, of course, I do understand. So what kind of a demand scenario is there between the say, silico manganese and ferrosilicon? And cost of production, is there any delta between these two?
Yes. The delta in terms of cost of production is about INR 25,000 between ferrosilicon being on the higher side owing to higher power consumption. With respect to demand, there is sufficient demand for the silico manganese in the silico manganese market. In fact, as we speak, today, we have essentially a complete order book even for Q4 with respect to silico manganese. But the issue is one of pricing, given that there is a lot of surplus production available there is heavy pricing pressure in the silico manganese market. Whereas ferrosilicon, given the entry barriers, we find that the number of suppliers are less. And as a result of that, the prices are much higher.
And both are for the export purposes? Is that a fair understanding?
Both for domestic and export, there is a good market for ferrosilicon.
And how is the scenario for the ferro manganese?
Ferro manganese, too, is very similar to that of silico manganese. Essentially, it's the same raw materials with the same power consumption and so on. So the -- there is demand, but there is again a lot of pricing pressures, to which point that most producers are unable to recover their full costs given the current pricing.
[Operator Instructions] Next question comes from Jatin Damania from [ Sawan ] Investments.
Congrats to entire team for delivering the [ financials ]. Sir, just wanted to -- you said that in July '24 in the last commentary, you said that we will be receiving $180 million, which was the left over. So $75 million now which has been carried forward to July '24, do we expect that to receive in the current quarter or probably it should also get delayed by -- delayed to second half of this calendar year?
Sorry, I could not -- we can barely hear you, sir. And I think the question you have asked is with regards to when we will be receiving the $75 million. This $75 million is a large amount. We've been in discussions with ZESCO, and they've been very positive with this discussions. They look like they have a very, very definitive plan. I don't want to commit in terms of when exactly we'll get it because those discussions are still going on. But we are positive that we'll get it sooner rather than later.
But, I mean, I agree that because of the currency issues and everything, which has got delayed, but it was supposed to come into December. So is it that data -- financing situation at the ZESCO is in problem, and there we will see a further receivables pile-up for calendar year '24?
No, it's nothing to do with their financial situation. You've got to understand that the areas amount is a large amount. And the fact is, in order to meet the areas, we need to also take on certain loans and so on. So some of the reasons for the delay of the $75 million have been caused because of that because through the -- because of certain external financials as opposed to ZESCO's health. In fact, the ZESCO's health is only improving. And that's the fact that we get our monthly payments on time, and they've paid $264 million to date clearly shows that the financial situation is greatly improved.
With regards to the $75 million, let me be also clear that it's not come as a complete surprise. We've been in discussions with them. Every time they are facing certain difficulties or we've been in discussions, and we agreed to new plan. So the plan now is that they will be paying us $254 million before this calendar year.
And sir, what is the monthly payment? I mean if you can help us, what is the monthly payment that we are getting it from the ZESCO?
It depends on the amount of power we sell to them. And our current tariff is around $0.103.
So that amount is near about $15 million to $20 million, right, anywhere between that?
Yes, around that, yes.
So sir, once now you will be debt free by end of this calendar -- by the end of this financial year, post that are we supposed to go back to lenders to take an approval for the -- any corporate action and the CapEx that we'll be doing it? Or we are free to announce that on -- by the Board itself without taking a lender approval?
No, the whole point of paying off our debt is so that we don't have the lenders anymore. And there are no restrictions on the lenders because today, although we may have caps sitting at the Maamba level, we can't pay dividends to pay off the shareholder loan because of the restrictions by the lenders. So our intention is once we settle everything with the lenders, I mean, we will be able to take corporate actions based on both decisions at the Maamba.
So mostly by next quarter, we could hear some announcement in terms of the benefit of the shareholders?
Well, let's hope so.
And sir, last 2 updates, now since you've already highlighted about the capital allocation that you will be doubling up the CapEx in MCLs from 300 to 600 megawatts. So can you show what is the CapEx that you will be spending it? And secondly, update on your Ivory Coast and your agriculture business?
Yes. So in terms of the money we're getting, it's not just for the expansion at Maamba. There, I think we envisage the project cost of about $400 million to $450 million. That's a project cost. That's not the equity portion. But we would also be utilizing it for the Ivory Coast project and also the avocado project that we -- is progressing with that. So I'll give you an update, or I'll get Mr. Nikhil to give you an update on the Ivory Coast project, yes.
With respect to the Ivory Coast cost, we are making headway into the last phase of the exploration. We have completed 2 phases right now. The last phase pertains to the drilling of the key [indiscernible] sites, where manganese ore deposits have been identified. So we feel that within about 4 to 5 months, we should have a clear-cut idea in terms of both quality and quantity available at this particular mine. In parallel, we are also getting the ground ready for setting up 22.5% [ MVA ] furnace to produce silico manganese in Cote D'Ivoire. So the land acquisition process for this particular project is underway as we speak.
Broadly, sir, can you highlight what is the amount that you will be spending just for the Ivory Coast and the 24.5 MVA furnace, how's that?
Well, it's -- right now it's tentative, but we are looking at about $150 million.
$150 million. Okay, sir. That's all from my side. Congrats once again, and all the best.
Next question comes from Viraj Mahadeva from MoneyGrow.
Congratulations to the management team for such a fantastic job on turning around the balance sheet. And I saw in your press release, you have a debt reduction of INR 2,962 crores, of which the arbitration, as you mentioned, Ashwin, is approximately INR 2,000 crores. So does that mean we can understand that INR 1,000 crores was generated as free cash flow from operations over the period?
Yes, yes.
Okay. Great. Secondly, you mentioned that the equity -- the overall project of the 300 megawatts additional in Zambia is about $450 million, what will be the equity contribution towards that, roughly $100 million?
No, I think it's too early to say right now because like I mentioned earlier, we're currently looking at a very unique financing structure where we're talking with the government. So in terms of -- it won't be the general debt equity structure that we kind of follow with the current project. So we can't really comment on what it would be at this stage.
Understood. And in the Ivory project, I just heard the previous caller, it's $150 million project. So again, what would be the equity contribution there?
About 30%.
30%. Right. Okay. And in the 300 megawatts of Zambia, the Phase 2, at full ramp, would you generate about INR 500 -- close to INR 500 crores of EBITDA?
It's all a function of the tariffs. So we could also keep in mind that one of the reasons the government wants Phase 2 is so that the average tariff for cost comes down. So it also be a function of what tariff we agree for Phase 2 and what the average tariff of Phase 1 or Phase 2 would be.
Understood. And how far would this plant be from completion if you start, say, 6 months from now?
So post financial -- I mean, if we start from some groundbreaking day 1, we estimate about 2 years.
2 years, okay. So it doesn't start really contributing until FY '26, maybe '27. Okay.
It all depends on the start date. So I think we've learned a lot from Phase 1 in terms of what to do and what not to do and how to structure the deal so that the risk is minimal for us as the parent company. So unless the terms are the way we want it, I don't think we will go forward. But I think the government understands, and they're working on the situation. So when they're ready, I think we'll be able to start.
Great. My last point is on a buyback by the company. Given that you just mentioned free cash flow of upwards of INR 1,000 crores annually with $250 million yet to come in arbitration this year, you should have sufficient money for equity contributions, both for 300-megawatt Zambia as well as Ivory. I'm hoping the management would consider a buyback while prices continue to remain attractive for the company over the next 12 months.
Yes. I think we're always looking at positive corporate actions that benefit the shareholders. But let's take it step-by-step. I think once we get the cash in, definitely, we would like to look at certain corporate actions that make sense.
[Operator Instructions] Next question comes from Vignesh Iyer from Sequent Investments.
Congratulations on a good set of numbers. My first question would be, I just want to know how much money have you spent on the exploration in Ivory Coast? And how much money have been -- have we spent on avocado project till now?
So for the Ivory Coast, up until now, we spent about $2 million. And for the avocado project...
So far, we have spent $12 million on development of full plantation for 275 hectors and land development for another 275 hectors.
Sorry, for avocado, you have spent around $12 million, right?
$12 million. Yes.
Okay. And sir, coming to the -- so if -- when I was going through your balance sheet posted for the half year, ended FY '24, right? So there was some trade receivable amounting to roughly INR 530 crores, that for standing under noncurrent assets. Could you help me understand what that number would be as of now?
It's the receivables in MCL from arbitration proceeds.
Yes, I know. I want the nature of the amount that is received, but what has been the changes? Has there been certain changes that has happened from noncurrent to current? That is...
We are currently [ speaking ] the current receivables, except the $180 million, which we anticipate to receive in the next calendar year.
Okay. So that amount is in nature of the amount that we have to receive later, right?
Yes.
Okay. Sir, my next question would be on lines of the income tax that the company is paying. So there has been quite a change when it comes to the tax percentage. This quarter, we didn't actually pay any tax, obviously, in nature of adjustment. If you could help me understand what the nature of adjustment was? And what would be our usual tax rate for the quarter?
So I'll speak in between India and overseas operations. India, we are at a tax rate of 25% for the Indian operations, Indian subsidiaries. When it comes to Maamba Collieries, our division has a tax holiday for 10 years and mining division with a regular tax rate of 35%. But what is peculiar in the current quarter is adjustment because of the deferred tax benefit. Basically, deferred tax benefit is arising out of the fact that they'll pay a significant depreciation in the Zambian currency against the dollar, which depreciated over 20% in the current quarter. Though we have our financials and the revenues in US dollar terms, but the local taxation is in local currency. That's what giving us a deferred tax benefit. So it's not that we have not paid any tax, it's the deferred tax benefit that's not reflected in the books. The liability is reduced because of the cost of depreciation against dollar.
Okay. Okay. Liability got registered to the foreign exchange, right, if I get it right?
Yes.
Okay, yes. So the tax holiday -- on account of tax holiday, what would be the revised rate of tax that you will be paying? And what is the tax that you're paying as of now? And when does the tax holiday end?
Tax holiday is probably for another 4 years. And India operations are 25% still. So post that [indiscernible] 35% in Zambia.
Okay. Okay. So sir, my next question would be, sir, on the avocado side of the project, what is the total expected cost that we might incur? I guess, if I'm not wrong, you envisage that by '26, you should start earning some money out of it. So what would be the total money that we are going to incur? And does the project entirely belongs us or it is in agreement with the government?
It's entirely equity funded from our own generation. The overall project outlay over the next 3 to 4 years is additional, other than what we have already invested, close to $30 million. So overall, our anticipation is that it will cost about $30 million.
Sir, $12 million as of now and another $30 million, right, if I'm getting it right?
$28 million to $30 million, overall about $30 million around.
Okay. So [indiscernible] initial question and answer, if I'm not wrong, I mean you wouldn't say that the Ivory plan is [indiscernible] MCL, right? Is that the financing agreement yet to be finalized?
Sorry, we can barely hear you. I guess your line is -- maybe you can get back in the queue with a clearer line.
[Operator Instructions] We have a follow-up question from AM Lodha from Sanmati Consultants.
Sir, hello? My voice is coming?
Yes, sir.
But management is not responding.
Dear participants, kindly stay connected. Participants, stay connected while we connect the management team back on the call.
I welcome back the Chairperson. Please go ahead, sir.
Sir, I have a few follow-up questions. Number one, what is the present power tariff at MCL in Zambia, the 300-megawatt?
It's about $0.103 per kilowatt hour.
How much, sir? How much?
$0.103.
$0.103.
$0.103. When the next revision is due, sir?
September of this year.
September of next -- this year?
Yes, '24, every September.
Okay. What is the merchant's power sales capacity in India, whether they are operating in full capacity?
All our plants, yes, they're operating at close to full capacity, and we have commitments all the way till the end of May.
Okay, sir. The last question. The coal sale by MCL, is there any restriction on limit of quantity of sale?
No, there is no restriction.
[Operator Instructions] Next question comes from Govindlal Gilada, an individual investor.
First, congratulations for a good set of numbers and making substantial debt repayment of INR 100 crores plus in January 1 month. So it is now meager INR 250 crores. And certainly, I hope we'll do it in February and March. So I've got 2, 3 questions. Sir, one is, if I remember correct, till December, we are supposed to receive $93 million. And now we are telling that it is $75 million. So $18 million, have you received in January, sir?
Yes, we received the $18 million.
So $93 million, you have to receive. $18 million, we have received. Yes, that is very positive, sir. Something we have received and balance, we hope to receive in the near future. That is my understanding is correct, sir?
Yes, yes.
Yes, yes. That is great, sir. So one more -- in case of this result PowerPoint presentation, generally, we upload on BSE after 2, 3 days. It will be convenient if you upload before results, so in that any queries or doubt, all that we can also clarify. So why it is so, sir? Generally all the companies, they upload before result only -- call only.
We cannot upload before the results, Mr. Gilada. This will be done simultaneously, but within 1 or 2 days. So Monday, we will upload the latest presentation.
No, no. That's what it is happening. Generally, all the companies they upload before call. So after going PPT also, if you have got some many queries, we can clarify in call if you upload before...
We will definitely try to do that.
Next question comes from Samrat from Arjuna Research.
I want to ask what is the current rate of power offtake with the MCL that the company has entered into PPE?
Sorry, the current what?
What is the rate at which power is supplied to the state DISCOM by the MCL?
Yes. So it's about USD 0.103 per kilowatt hour.
USD 0.103?
Yes. U.S. cents.
U.S. cents. Okay. And in Ivory Coast, are we planning to set up a power plant or we are just exploring the mining business?
I think -- see, mine is one thing that we are exploring currently, for which the results will come shortly. But in addition to that, given the fact that the raw material is available at source, and the geographical location being very close to major steel markets like Europe and U.S., it makes sense for us to set up an industry there as well, like silico manganese plant. So as you may be aware, the silico manganese process is a very power-intensive one. And unfortunately, in Ivory Coast, the grid tariffs are extremely high. So the only way that it becomes viable for us to have our own our captive power plant. So we're looking at the option of setting up the silico manganese plant associated with the captive power plant.
And it will be captive or it will be also available for selling to the local grid?
It's going to be purely captive.
Purely captive. Am I right?
That's right.
Okay. And once again I want to ask you, there were 2 power plants in India, which were basically closed or not operating due to some legal reason, basically, like market not being available for direct exchange. In Karnataka or Andhra Pradesh, there is one plant. So is it operational now?
No, I think what you may be referring to is a plant -- see, that is a 20-megawatt cogeneration plant. That's still [indiscernible], but not because of any legal reasons, not a legal reason, it's a more commercial reason because of the cost of generation being very high. We are not producing any power from that. That's in Andhra Pradesh, that's in Andhra Pradesh.
Okay. And I have one more question. The Ferro Alloys business of the company is not yet profitable. So what is the market prospects for the business? Because you said that you are going to set up one another plant in Ivory Coast. Secondly, from next month, you would be making available one furnace for ferrosilicon alloy. So how do you look at the market? And what's your perspective regarding that?
See the alloys market is one of that is cyclical in nature. So I wouldn't look at it from a very narrow lens. Today, yes, you are right that we are going through a downturn. But if you look at the last years, particularly the last 2 to 3 years, the Ferro Alloys market was doing extremely well. So I think when you are considering an expansion in this particular field, it needs to be one that is based on a long-term view rather than a short-term view.
Now as I mentioned earlier, Ivory Coast does have a lot of competitive advantages relative to India, given the fact that the raw material, which accounts for almost 40% of the cost is available right there and then. And similarly, given that we're going to have a captive power plant through biomass, we foresee that the generation cost of power, which again accounts for about 30% is going to be hopefully, at a lower tariff than what we are looking at in India. So putting all these things together, it makes both commercial and economic sense to expand in Ivory Coast.
Okay. There is one more question. The other businesses in India, which are into alloys, have reported a very good set of margin as well as the revenue jump. The revenue jump was also visible in the Nava's result of the [ Ferro Alloy ] business, but there was a dip when it came to margin. What was the possible reason for it? Can you let us know?
I think you're referring to a couple of companies involved in ferro alloys, who are producing ferrochrome, which is a completely different story from what we produce. So we may have done a little better. But if you look at silico manganese and most silico manganese producers in India, you would find that the results are more or less in line with us.
That was the last question for the day. Now I hand over the floor to management for closing comments.
In closing, I would like to express my gratitude to all the stakeholders for their continued support and trust in Nava Limited. Our achievements in this quarter reflects the collaborative work of the entire Nava team and our commitment to provide [ impetus ] for growth to all our stakeholders. As we move forward, we will continue to strive for excellence in our endeavors creating value for our shareholders, employees, customers and the communities we serve. Thank you very much for participating in this discussion. I hope we've addressed all queries adequately. If there are any questions or clarifications that remain unanswered, please get back to us, and we'd be happy to provide answers on a wider investor platform. Thank you, everyone.
Thank you, sir. Ladies and gentlemen, this concludes your conference for today. Thank you for your participation and for using Door Sabha's conference call service. You may disconnect your lines now. Thank you, and have a good day.