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Navkar Corporation Ltd
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Ladies and gentlemen, good day, and welcome to the Navkar Corporation Limited Q4 and FY '23 Earnings Conference Call hosted by PhillipCapital (India) Private Limited.
This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict.
[Operator Instructions] Please note this conference call is being recorded.
I now hand the conference over to Mr. Vikram Suryavanshi from PhillipCapital (India) Private Limited. Thank you, and over to you, sir.
Thank you, Vikram. Good afternoon, and very warm welcome to everyone. Thank you for being on the call of Navkar Corporation Limited. From the management, we are happy to have with us here today Mr. Anish Maheshwari, Chief Financial Officer; and Ms. Deepa Gehani, Company Secretary and Compliance Officer.
Before we start with the question-and-answer session, we'll have opening comments from the management.
Now I hand over call to Mr. Anish Maheshwari, CFO of Navkar Corporation. Over to you, sir.
Thank you so much, Vikram. Good afternoon, and very warm welcome to everyone present on the call. I'd like to give the insights on results of the current quarter after the change involved in the financials of the company.
Here, I'm highlighting the detail as well as the continuous operations of the company after discontinued operations of Vapi.
Coming to the total revenue figure of this quarter, the same is INR 106.41 crores for this quarter as compared to INR 102.74 crores last quarter. On these revenue figures, the profit after tax of company in this quarter stands at INR 6.65 crores in comparison to INR 23.26 crores in last one. Out of that INR 23.26 crores -- are INR 19 crores was from the sale of assets. Normal profit is around INR 2 crores. Compared to that this is INR 6.65 crores.
Then coming to the profit tax the same of INR 9.96 crores as compared to INR 2.55 crores in the previous quarter.
Then let's discuss the elements of revenue of the company during the quarter are as follows. In case of CFS Mumbai volume of exports container handle stands at 28,159 TEUs from 25,639 TEUs on Q-o-Q basis, which has raised by 10%. And from 29,084 TEUs on Y-o-Y basis is the same, is now down by 3%.
And the volume of import containers handles raised by 2% from 29,869 TEUs to 30,470 TEUs on Q-o-Q basis and from 30,430 TEUs on Y-o-Y basis increased slightly values by 0.13%.
Coming to the EXIM turnover of CFS, PFT is the same as down by 2% from INR 65.45 crores to INR 64.20 crores and as per the domestic turnover for this quarter is INR 22.76 crores.
In case of CFS, PFT, the number of trains handled is 233 in this quarter comparing to 193 last one.
In case of CFS, PFT, the discontinued operations, we have only domestic turnover from this quarter onwards, as the business was not transferred in the slump sale. The domestic turnover of ICD/PFT in this quarter stands at INR 12.34 crores compared to INR 13.1 crores in last quarter with a marginal decline.
In case of ICD Manaba, volume of export container handle stands at 251 TEUs whereas import container handle stands at 16 TEUs. Coming to the EXIM turnover of ICD Manaba is INR 0.45 crores whereas domestic turnover is INR 2.2 crores multiple.
Now coming on the profit figures of quarter 4. Operating profit of the company continuous business for the quarter stands at INR 36.49 crores as compared to INR 34.36 crores. When we compare the same with turnover, the operating margins for current quarter is 35.24% in comparison of 34.58% in last quarter. And the operating profits are slightly increased.
The profit before tax from containing operation spend is INR 90 -- INR 9.96 crores as compared to INR 2.55 crores on a Q-o-Q basis. It's impact on profit is due to following factors. The employee cost of business is reduced by INR 2.38 crores due to the discontinued operation of Tumb unit. The finance costs have declined by INR 2.2 crores in this quarter in comparison to last quarter INR 5.86 crores to INR 3.66 crores. This INR 3.66 crores FD is because of the notional impact of India and unsecured loans and [indiscernible] share .
And lastly, with the prepayment [ currently ] to the loans which was added by the company.
EBITDA margins has increased by INR 17.62 crores from INR 12.44 crores. The same will also increase revenue and decline in employee costs and the administrative expenses.
Now I would like to open the floor for Q&A session.
[Operator Instructions] Take our first question from the line of Kaustav from BMSPL Capital.
So I'm fairly new to the company, so just forgive me if I'm repeating some stuff from past calls. But basically, I wanted to understand, you all recently sold ICD and got money and paid off debt with that. And a new ICD is becoming operational soon. Is that -- or it has already commenced. Is that the correct understanding?
Yes, yes. You're having a correct understanding.
Okay. So let's -- could you speak a little bit about why -- about this new ICD, which has commenced, what type of numbers can we see from this ICD given the current base that we are at already? And basically, how -- hence, how do we see FY '24 numbers shaping up in terms of growth and profitability from here on?
So I'll just give the perspective. Earlier, we have ICD at Tumb in total company was having INR 1000 crores plus turnover and last year we just discontinued due to -- till September I think so, half year of the operations were there in the ICD Tumb and which we sold out to the Adani at the price of INR 835 crores, out of which we got almost INR 785 crores from the Adani and we reduced our debt and company is having almost INR 8 crores to INR 10 crores FD right now with the company.
With that surplus money which we got last year from that deal, we just infused further money to the Morbi operations we just wanted to be commenced. And Morbi as we told Morbi started in March end and in this quarter, we had already crossed almost around 250 containers volume. From here onwards, there are process. There are 2 different processes which will have to be continued over there with any of the ICD. One is EXIM operation, second is domestic.
In EXIM, we had already -- we started all the operations towards exports. And for imports, we'll have to take the code with all the shipping lines. And almost around 70%, 75% shipping line generated their code for ICD -- new ICD, Morbi. Once that code will be generated to them, all across globe, then they'll start doing business with us because they need some kind of ICD codes for booking from their own destination. So that has already been done around 70%, 75% shipping line rule -- that all code generation thing.
So we are expecting from this quarter onwards, import will gradually improve, which was only 6 containers, which we handled in last quarter. So from here onwards, I think so around 20% to 25% growth quarter-on-quarter on Morbi side. So we are targeting from first year around revenue of INR 15 crores to INR 20 crores from Morbi, which was already told in our past quarters also.
Secondly, we are more focused towards the domestic operations on Morbi because Morbi is a tile hub and from there across India and exports of tile merely going from the Morbi. So we are now exploring some more options for domestic market as we are getting steel from Mumbai from Vapi, Gujarat. And at the same time, we think we just wanted to be looking at that Morbi also.
Second commodity, which we are focusing is tiles. Third commodity, which we are focusing is cement. So from that, we are continuously trying to make some special containers for cement which was told in last quarter call also. And slightly, I can say that we got success in converting that operations into the cement bulk cargo volumes as well as the steel. Same time Morbi, we are more focusing towards the tiles for exports. Now we are coming up with new imports once the port will be started using by the shipping lines.
So from here onwards, I can say Mumbai operations will be having improvement around 5% to 10% in domestic as well as EXIM. Morbi, this year, we are targeting INR 15 crores to INR 20 crores revenue.
And year-on-year, second year, third year, we are targeting more than 25% to 30% growth. So new growth, if you ask me frankly will be coming from the Morbi operations as well as domestic operations.
Okay. One more point, I mean, what led to this debt buildup over the last few years? And given that this has happened, how do we look at debt over the next 2, 3 years? Do we expect this to build up again? Or how do you look at that whole debt component?
So basically, right now, we are not having such plan for making more debt in the company. And the idea behind that was just to reduce the interest cost. If you see last quarter onwards, and from this quarter onwards there is a new interest cost probably. And the objective behind that was because we have the facility over there in Mumbai and the debt was around INR 750 crores all across secured and unsecured loan on the book of company, which we reduced.
And that entire debt was taken for the expansion over rail in Mumbai. And secondly, for Vapi. In the past few years, if you see the CFS, ICD industry was getting hit due to the DPD volumes. Direct port delivery was the concern for all across industry. And when we made all our business houses were in Mumbai, we expand vertically with the IPO money.
And we started over there -- ICD at Vapi. And our main core focus was the cross-selling from Mumbai as well as Vapi. And at the same time, we just wanted to cater the domestic market. Due to DPD year-on-year, our volume towards Mumbai was getting gradually down. So we just take that decision why don't we come up with new idea -- with new facility or with new geography. And in that case, Morbi, we look at, where it will be catering Mumbra, Pipavav, and Mumbai all the three ports. So that was the main idea.
And Vapi, we just got the opportunity from Adani and they were looking for the ICD over there in that region. And we got the fair value from them. That's why we just took that decision.
[Operator Instructions] We take our next question from the line of [ Ganesh Shetty ] an investor.
Am I audible? Hello?
Yes, you are sir. You are.
Sir, in last con call I had a long discussion with you regarding dividend distribution to the investor. And you have promised that this quarter or this year end, we may have some dividend payout for the investor.
I just wanted to be correct here. I never gave promise to anyone and we are not giving any kind of false promise to anyone for the dividend. We are promising on our business side, that's definitely will be there.
Secondly, as our Morbi business is -- gradually going on upward side, where we just wanted to -- make sure that if today I'll be able to give any kind of dividend or any kind of things to the -- just to sake of giving you happiness and tomorrow I'll take again loan for my new facility, that will again impact the benefit of the company itself. So we are into the discussion till last quarter also. We are now also in a discussion for giving any kind of -- making quality business from the company side. Management also looking for the same. If you see last quarter management did some clipping also. They just take -- it's adding their holding in the company. So they have their own interest towards the company and they know this is not the fair value of company. That's why they are also promising towards the market.
And secondly, dividend, as I told you in last quarter also, before when we did the deal of Adani, at that time also, we were having the same thought with the things, we welcome. Morbi operations gradually increased and we got the understanding towards no further loan required to the company, no further expansion we need, then also we'll definitely come to the market and we are still hoping that the management also thinking on the same, how they can -- we make sure that -- to add value for shareholders.
Yes. Sir, after the sale of the facilities to Adani and after having so much of business reorganization, and pain we have taken, still the market is not actually realizing our efforts and there is no investor wealth creation on behalf of the company. So any further step like meeting investors, long-term investors or institutional investors or any other efforts you're taking to increase the shareholder value so that at least for the long-term shareholders who are in the company since IPO will not be affected and they will get fair value for their investment.
And in other words, as promoter holding is nearing to 70% in this company, so they will also have that reward indirectly. So any thought on this sir, because...
We did IPO in 2015, and then we're just having a second one in 2017. We are not -- we see the business and industry of CFS and ICD was having a pain continuously since last 5 or 6 years. Meanwhile, if you see the numbers of Navkar, last quarter comparative to this quarter, the cost reduction has already been there. Now onwards, if the interest cost from next quarter onwards will be getting very minimal then the profit it will be getting improved, correct? If you see comparison between last quarter to this quarter on an operating level, there is a 1.5% improvement. And if you see, the EBITDA level is around 5% improvement, correct.
So promoter also would like to see the growth gradual numbers from the Morbi. From here onwards, there is no further costs for the company. From here onwards, there is reduction of cost and profitability will be getting improved.
Secondly, as you told that going to the market and talk to the big investors and all, so we definitely -- last year, we were not going to the market due to the COVID situation the industry was not doing good. And if we'll go to the market and tell again the same story nobody will buy my story, correct. So we just wanted to be more focused towards the profitability, improving profitability. Once the profitability will -- getting improved, then everybody would like to see the company.
Now -- from since last quarter onwards, when we did the deal of Adani, there is interest from some good investors but we are just -- don't want to give any kind of a number to them and they just wanted to be there -- take footstep back. Because in part, what happens, some things which are not in our hand like DPD, there were COVID situations. So in the last 5, 6 years, there was a very bad scenario for the entire segment of this industry.
So we now, just more focusing on our profitability improvement. Once the profitability will be improving in the next one, couple of quarters, then definitely go to meet -- going to meet with some further investor and going to meet with some HNI to explore further thoughts to create value -- value creation for our shareholders. As promoters himself is having a 70% share in the company, they will also be having the same interest.
Okay, sir. And I hope that company will have better communication with the investors.
I can just tell you one more thing and I would like to hear gradually from here onwards, there is no further losing space for the company. If you see last quarter number, this quarter numbers stand alone without the Vapi operations, Morbi will -- value add for the company.
One good thing for company is that if today I have a loan for Morbi entity, I'll have to pay almost INR 15 crores to INR 20 crores interest for next year. That is also better for company, right. So that will be value add for the company as there is only the administrative cost, they may be operating cost for some time because the business increment will gradually take time. Otherwise, there is no further cost for the company because this industry itself is having around 60% -- 60% as operating or the variable cost. So maximum 35% to 40% is fixed cost, which will be getting by the company by the current operations.
In spite of the fact there is no revenue since last quarter at Morbi till company is in a profitability. If there is a cost of interest, we were having a losses or there under the company's book. So this is very positive side for the company. From now onwards, there may be a gradually incremental profit will be generated by the company. There is no further losing from the company. So next couple of quarters maybe take 4, 5 quarters more. But after that, we will see the real value of the company, where we get the profitability higher than today's margin quarter-on-quarter.
[Operator Instructions] We take the next question from the line of [ Aman Vishwakarma ] from RoboCapital.
Yes. So my question is with regards to your CapEx. So what sort of CapEx are we looking at for the next 2 years?
So basically, the CapEx side, we are looking further cash flow which will be allowed by the company, then we'll also -- we'll be thinking on the CapEx. Right now, whatever CapEx we need, we have already been done. Morbi is already done. There may be some OpEx kind of a CapEx for the operating situation of the yard. It might be 1% of our entire CapEx done in past on a block. So there is no further CapEx we are looking at.
Is there anything required which we will be using from the cash flow itself. There is no debt component will be there on further CapEx.
Okay. And what sort of tax rates are we looking for in '24?
So we're in the max around 20%.
Okay, 20. Okay. And just one last one would be what sort of depreciation and interest are we looking for the next year?
So interest, I can say that interest costs will be very minimal. Yearly, it was earlier around -- if you see actual number since 2021, interest cost was around INR 20 crores, INR 25 crores per year which is now -- till last quarter it was around INR 12 crores for entire year. From this quarter onward, it might be below INR 1 crore.
Okay. Fair. And what about depreciation?
Depreciation will remain same because our assets which we sold to the Adani, major component of the landing and [indiscernible]. There was no depreciation. Depreciation will remain same for because Morbi's commence.
Okay. Fair. And just one last one. So what are the revenues that we are looking at from Morbi itself? Because let's say, if you were to operate at an optimal capacity and then proper this thing, full-fledged operations, what sort of revenues are we looking at?
So in past, if you see my experience, first year of operations at Vapi was around [ INR 70 crores, INR 80 crores ] revenue. Second year, it was -- jumped to INR 100 crores. Third, fourth year, it was almost in the range of INR 300 crores, INR 400 crores. So what happens once your all code generation done, once all operations done, your local ability to moving cargo, your local ability to moving the service providing assessment, then once all everything will be getting done, it will take around 4 to 6 quarters time.
Once everything done, things will be on [indiscernible] side, then the operations will be [indiscernible]. Just like that if tomorrow, Reliance would like to do business with me, he will not be giving entire operations to me, he might be giving me 10%. Once he will be satisfied with that 10%, then gradually it will be converted to 30%, 40%, 50%. This is the case for all across the industry. There are 2,000 customers which we have made in the past 2 years before we are commencing operations over there.
At the same time, when we started Vapi also, we were having assessment around 2,000 customers in a period of 1.5 years. Gradually, we added 350 customers in our first year. Second year, we almost crossed around 700 -- 800 customers. And repetition of the business is almost around 50%, 60% business houses were giving the business. [Foreign Language] when we brought 100% business from the certain companies. Like -- I'll just give the good example, in Vapi, we were having 100% business from Classic Marble. We were having 100% from Hindustan. So there were so many companies we were -- initially we were giving only 10% business, then we -- before giving that entity to the Adani, they were having 100% business in the last 3 years.
So this is the path which we'll have to follow for Morbi also. First year might be having a revenue of INR 15 crores to INR 20 crores. Second year, it will be -- I'm on the call, I can say that it might be having a 25%, 30% growth, but it will be more than that.
Okay. But still, like what is the highest potential revenue that you can make from Morbi?
So Morbi, it may be having the same potential like Vapi. Vapi was having around INR 500 crores volume -- INR 500 crores value component in it on revenue side last year. So Morbi is having the same capability and Morbi is a tile hub. Vapi was having a very saturated market where there may -- so many industries, which were on a seasonal basis, but Morbi is having a 100% yearly business of tiles.
I just wanted to add one more thing. We are looking for the domestic operation over there at Morbi as well as Bombay as they are continuous business which will be having a cross-selling kind of a commodity like steel, fly ash, cement, tile. Because for tile, you need fly ash and this -- salt rock and all. So if there is availability of cargo for raw material of tiles, that also we are looking for.
[Operator Instructions] Take our next question from the line of Vikram Suryavanshi from PhillipCapital.
Sir, can you repeat what was import container volume at JNPT?
JNPT -- CFS, you're asking about?
Right, sir.
So JNPT, we did imports 30,470 containers, which was last quarter, 29,869. 30,470.
30,470.
Yes.
Okay. Okay. Because in the presentation, the last digits are not visible so that's why. And because see if you look at on Q-o-Q basis, we have seen improvement at JNPT EXIM volume. But on revenue side, we have not seen improvement. So are we seeing pressure on CFS in terms of realization as well as EBITDA at JNPT, or how is the outlook there?
So Vikram, once the Morbi is fully in operations, then definitely cross sales business for Mumbai CFS will be gradually increased. If we see in past also when the Vapi was started and the Mumbai operations was -- once the DPD came, people were having a thought that Mumbai operations, CFS operations will be getting very less and discontinued. When it was discontinued level of around 70%. But once the Vapi commenced, and it will gradually again come to the same number. It was almost 50% to 60%.
The same side, we are looking at CFS also, as CFS was -- always be a core revenue generation center for the Navkar. It was mother basically, correct. So if you see, we were having a high hope over there at CFS. Whenever we do any new business in any other location, first center will be Mumbai only, CFS only because the other stations for the good [ seen ], we were having in Mumbai.
So from here onwards, we go to the south, east, or north. Everybody can go. So this is the situation we were looking at the CFS also. And one more thing which we added in call in commentary also, we were looking at cement as well as steel commodity for our further expansion. For that we are already taken approval of special containers, which was taken place last quarter itself. So gradually, that business also will be -- add value for the CFS also.
More focus towards the railway operations. So last quarter also if you see, we handled almost 233 trains, before last quarter was 193. So this is almost 25% improvement -- 20% improvement.
So this cement movement will be with [indiscernible], which is put inside the container and all that, bulk cement movement basically.
Yes. Yes. So we have a specialized container for the cement movement and trial has already been taken place, which was successfully done for the company. I won't disclose now the company's name because we're on a trial basis. Once all trials will be getting completed then we'll be getting 100% volumes from them. Because what happens when the cement on a loose basis will take -- there maybe 200 tons or 200 kgs losses on everyone movement, correct? That was already been discussed on past calls, correct. Once with the specialized containers, that -- I can say that preference is very less.
Got it. And Morbi cargo, will it be split with Adani because Mundra port is also close by. So how that -- basically will that cargo come to JNPT or will prefer to go to Adani or safety power?
So I can say that it is -- all depends on the operational side, how you are giving the price and we are very competitive compared to others. I'm not giving the name of any of the industry or any of the port, but there are cargo movement because what happens in that entire reason, there is no ICD in 100 kilometers, correct. So whoever is having a cargo movement earlier also, they will have to take empty container from the port, they'll have to take that to the factory and then they'll have to be moved towards that. So gradually, once I'll be having an EXIM balance, then they will get the benefit of actual cost.
This was earlier case of Vapi also, at the same time CFS also. Why we were having top end CFS centers in Mumbai because our EXIM volume was 50-50 as always. It will always be a core target for us also. So once everything will be -- if somebody is having export, correct. And he gets the cargo or he gets container from the near location, that cost will be benefit to him. That's why we are getting volume very fast in Vapi, very fast in Mumbai at the same time Morbi also will be the same thing.
Because today what happens if somebody would like to move their cargo from any kind of a domestic reason from the board, they'll have to take containers from their own destination, either the port or from the empty yard, correct. If the empty container is available at my place, they'll have to take their cargo to my place. They'll have to be -- cargo will be put into the container and then we'll do export from our device itself. From the Morbi or from the JNPT anywhere. For me, there is no such difference for the rail operations.
For party, there may be a cost-effective model, which was earlier case in Vapi also. So the same thing we will be going to repeat over there.
Okay. Got it. And in this presentation, we have seen that revenue from Udhna for EXIM and domestic, so what are the actually these operational expenses, can you just explain a bit because I wasn't aware of Morbi...
Udhna is basically domestic operation. Vapi, it was domestic operation which is all with us. It was not being shifted to the Adani and it was earlier discussed also. So slump sales, we're just only giving earlier operations of the Vapi unit. Domestic, which was earlier with also with us and now also, we are doing the domestic operations from...
Okay. But that, I think, was around INR 13 crores in last quarter, but which has come down to anything around INR 12 crores. Okay. So that's probably on a quarterly basis?
It will remain same for next quarter also, in the same range.
Okay. But is it attractive in terms of margin profile and profitability?
Again see that on a pure basis for the operations it is always giving a 20%, 22% revenue.
[Operator Instructions] We'll take our next question from the line of [ Ravi Kumar Bucha ], an investor.
Mr. Maheshwari, I am an investor in your company. I would like to ask the whole purpose of selling the ICD Tumb was to get you debt free. But as of 31st March 2023 on one side we're seeing cash at bank of INR 93 crores, and we have unsecured loan of INR 41 crores, so what is the whole logic of keeping this unsecured loan? And I would also like to ask you what is the interest rate you're paying on this unsecured loan? And what is the interest that you're getting from the bank deposit?
Sir, your voice is not audible actually. It's broken actually.
Sir, one second.
Sir, please use the handset.
Hello, can you hear me now?
Yes.
Yes.
Okay. Sir, my question is the whole logic of selling the Tumb ICD was to get yourself debt-free, right?
Yes, sir.
And -- but as on 31st March 2023, we are seeing unsecured loan of about INR 40 crores. And at the same time, you are having cash at bank at INR 90 crores or INR 93 crores.
So basically, what happened sir, there is a limitation of repayment of promoter loans and unsecured loan was taken by the promoter himself. So there may be a regional of 10% of total revenue. So in first year, there was a loan of -- total loan from promoter was almost in a range of around INR 120 crores. And out of that, we paid INR 80 crores in first year.
But at the same time, the loan which is bearing INR 40 crores will be much higher than what you are keeping it at the bank. So does it make sense?
So practically, we can't do that payment, sir. There is a restriction. There is restrictions from the guidelines.
Also, can you give me the run rate for Morbi for the month of April.
[indiscernible] 10% in a year.
Okay. Okay. [Foreign Language] Morbi sales revenue for the month of April and May because we are heading on 30th May, can you just enlighten on what revenues have you done approximately in the month of April and May? Because till March, it has been very disappointing. It's only INR 3 crores of turnover, what you have increased since quarter-on-quarter.
Sir commencement of operations was stated in January. First quarter was that, correct, in which we won't get that license also. We got all the PFA license and everything else in place in March itself, correct. I can say that first month, if you see was very nice with the limitation. Quarter -- this quarter, we reached around INR 2.5 crores revenue, correct? And quarter-on-quarter, gradually it is getting improved.
There is a process involved sir. Once you'll get the notification from customs, then you'll have to take the code from customs and which was already been generated, correct? Then we'll have to go to the shipping line. That has -- that entire exercise we did in past also. And we were already being told to -- all the shipping lines we are coming with the new ICD.
But till the time, if you are not having generated code from the customs you can't give them and go and tell them without code you can start business with us. So there is a process. It's like that, [Foreign Language] So, it'll be fault from railway, so point number one.
Point number two, [Foreign Language]. My destination code will be this and my ICD will be this, correct. It's not like that [Foreign Language]. It's a unique code. [Foreign Language]
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[Foreign Language] Customs, operations for your export movement for domestic that was already been placed. Second, [Foreign Language]. Third, custom notification. [Foreign Language]. Once, it is already been -- took place in all the shipping lines, then we will put that code in their system. [Foreign Language].
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[Foreign Language] It might be 600 containers next month.
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Basically in whole year, INR 15 crores to INR 20 crores revenue we are targeting first year. [Foreign Language]
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[Foreign Language]. We were expecting a very good revenue for this quarter especially because having Morbi started, but we have been very disappointed with the results. And also no case of dividend mentioned also, and I don't think you are planning in the near future also because every time I ask you, I always you say, we'll first stabilize Morbi and then see what you can give for the retail shareholders. So I don't think any dividend or anything is on the cards also as of now.
This is always on the cards. Management was having a past thoughts also. Morbi gradually...
But now I don't think you have funds. You have only INR 40 crores, INR 50 crores in your bank.
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[Foreign Language] I have been a very patient investor. I hold more than 2 lakh shares of Navkar, but I have been very disappointed this time. That's why I wanted to...
You are trusting on us, and I really apologize, you are disappointed also. [Foreign Language]. So this is the core strength of the company. We are also -- I can only say that we are really hopeful for the Morbi as well as Mumbai. Business will be on a positive side. Numbers are in improvement side. Profitability [Foreign Language]. How we've to create value for shareholders?
[Foreign Language] And I want to ask one more thing. [Foreign Language] Adani Logistics [Foreign Language] INR 50 crores, INR 60 crores pending within 1 year. So that is expected in the month of August?
[Foreign Language]. We're expecting in September, October. [Foreign Language] next year September, October [Foreign Language].
One more thing -- we have proposed for subsidy for Morbi, which is almost in range of INR 30 crores. [Foreign Language]. So they were having a provision for subsidy, Government of India. [Foreign Language]. I am not giving you false hopes to you all. We're trying our best [Foreign Language].
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Yes sir. Yes sir. [Foreign Language].
Sir, quarter last time, December quarter would be the worst and now everything is going to be the best.
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Last quarter was really disappointing in terms of revenue, hardly INR 3 crores of sales.
[Foreign Language] So that INR 17 crores itself will be around INR 22 crores. You'll have to go with the absolute numbers. [Foreign Language]
December was onetime cost. A lot of finance costs were from discontinued operations, you had some employee cost, you had onetime finance cost, you had loan prepayment cost. So all those were onetime costs which went in December quarter.
[Foreign Language]. March -- interest cost is INR 3.66 crores.
Yes. INR 3.66 crores I agree [Foreign Language]. But I hope in next quarter, we are not having any cost from discontinued operations. Am I clear on that or will there be some costs?
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Total revenue from operations [ INR 4 crores 30 lakhs ] [Foreign Language] quarter ended March 31st.
[Foreign Language]. So that INR 4.3 crores, which is adjusted in this profit. So the actual number [Foreign Language] operating level, which is more higher than this number.
I understood. This is an extraordinary item. [Foreign Language] I hope from this quarter -- from next quarter, we should see a neat and clean balance sheet. Just revenue from operations and...
It might take a couple of quarters because [Foreign Language]
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[Foreign Language] So I'm not sure today. [Foreign Language]
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[Foreign Language] compared to last year, last quarter it will be pure and clean balance sheet, Morbi and Bombay. [Foreign Language]
We take the next question from the line of [ Mandeep Thakkar ] an investor.
Hello.
Sir please go ahead and ask your question. Please use the handset, Mr. Thakkar.
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Just a moment sir. [Foreign Language]
[Foreign Language] you may have seen that number INR 9.96 crores, correct. [Foreign Language]. Total profit INR 6.64 crores. [Foreign Language]. So this is actual profit.
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Basically, there is no buyback plan here. [Foreign Language]. Once you'll be coming up with your real numbers and actual growth then automatically gives the value. [Foreign Language].
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[Foreign Language] INR 8 crores FD.
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INR 8 crores. INR 8 crores.
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Last quarter INR 140 crores, INR 150 crores [Foreign Language].
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Yes, sir. [Foreign Language]
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Thank you. Ladies and gentlemen, we have reached the end of the question-and-answer session. And I'll now hand the conference over to the management for closing comments. Over to you, sir.
So thank you so much to [ chorus ] call and entire investor community. And we are into the positive side and company's doing -- performance side, we are going to positive again for Morbi as well as for Bombay. Is there anything for buyback side, dividend side, we'll let you know to the market as and when company will decided. Thank you so much.
Thank you very much, sir. Ladies and gentlemen, on behalf of PhillipCapital India Private Limited, that concludes this conference call. Thank you for joining with us. You may now disconnect your lines.