Interarch Building Solutions Limited (INTERARCH) Earnings Call Transcript

Ladies and gentlemen, good day, and welcome to the Interarch Building Solutions Q1 FY '27 Earnings Conference Call. [Operator Instructions]. Please note that this call is being recorded. I now hand the conference over to Mr. Arvind Nanda, Managing Director. Thank you, and over to you, sir.

Thanks for taking time out to join the call. So I think people are now fairly familiar with what Interarch does and what is the pre-engineer building, a combination of engineering, design, marketing, production, delivery at site and erection like a nut-and-bolt assembly of a plant of any size or any type. So over the years, Interarch has gone up itself and made itself capable of designing and engineering and executing very, very complex projects, very complex industry, paint lines, EVs your renewables, lithium batteries, data centers. And going forward, we are concentrating on making it capable of providing steel solutions for nearly every kind of building, which may come up in the future. So we are concentrating on heavy structure requirements, where buildings like high-rise buildings, data centers, large commercial buildings, large heavy buildings like power stations or set plants, fertilizer plants, port infrastructure. The basic idea is to convert Interarch into a complete building solution that whatever kind of building you have, we may be able to engineer it, definitely able to detail it produce it in-house, deliver it at site in a very proper sequence and pieces, ready-made, everything done and just September at site at [indiscernible] board assembly. More and more people in India are looking at this as a solution for their construction because it is very fast. As we all know, speed is nearly you say, at 60% time, plus all the work is off-site. And it's a lump-sum situation where one company takes responsibility for everything. So for the client, it's a very win-win situation. But as internal, as a pre-unit building company as a building steel solution company, we have to make self capable. That is the key to this business. If we are not capable of doing this kind of building or the customer doesn't perceive us to be arable, then there is no way that we can get orders. But I'm very proud to say that today, we are perceived as one of the top players and most of the challenging jobs, challenging clients, very complex clients do come to us or even the newer and newer requirements knowing that will be able to or can and if they do and they say yes, then they will be able to execute the challenge, whatever the new kind of buildings may be. So in preparation of that, we have now started our heavy structure plant in Andhra Pradesh on a trial production basis, the official production -- commercial production should be by end of this month, early next month. In the meanwhile, we have also started the Gujarat pre unit building plant, our first plant in Gujarat on ninth of July. The Phase II should be done by October. So that will be a full pleasure plant during the year, adding to our capacity and making it our fifth fully integrated plant. The second phase of the heavy structure at the same location, the civil work has already commenced. And we hope that the second phase will also be done by March and in continuation, the third phase by December of next year to make it a full plant catering to about 75,000, 80,000 square -- 8,000 tonnes of heavy structures. Because we see a lot of demand coming from data centers and high-rise buildings. At [indiscernible], we are also working on a lot of export markets. We have been exporting to Africa and neighboring countries, but U.S. and Canada are very much on our horizon. We have [ can ] good buyers over there. We have found a good partner in Canada a couple of them as well as in U.S. who have started buying building from us. And we feel that as they are delivered, the numbers and the quantity and volume of exports will keep going up. We are concentrating on building up that market. We are participating in more and more exhibitions and conferences to meet more builders and convince them that we can do the kind of buildings that they want and deliver to them on time. So that should give us a good new stream at least in '27, '28. For our projections, as we have mentioned, we will meet 2,150 to 2,200 in this year. We are well on target. We have had a 30% -- 25% increase in first quarter year-on-year already. We have a very good order book. We have increased our order book in the last 3 months to about INR 1,850 crores now. So keeping in view that we want to do at least INR 600 crores per quarter going forward for next 3 to 4 quarters on average, they could be up and down. we are started booking orders on that basis. There are a lot of inquiries, a lot of business available in the market. But like I always mentioned that we need to pay orders which we can deliver on time, because that is the most critical aspect of being a 3-minute building company with the heavy structure also starting and at least in the next year, giving us the full capacity of Phase 1 and partial Phase I we want to revise our projections for 2728 to INR 2,700 crores from INR 2,500 crores. EBITDA and PBT, et cetera, we are keeping at the same level. But we go forward, and I think our operational leverage and our internal control of expenses ticking in, we should increase our EBITDA. But currently, we are aiming for 9.5% to 10% in 2028 and 227 remaining as we had projected. So we are well on track for our projection. And I think now I will open the floor for questions so that a lot of points can come up during your questions and answers. Thank you. To Manish now.

Yes. So thank you, sir, and good evening, everyone, and thank you for joining us today. As Mr. Nanda said, we commenced FY '27 on a positive note and the broad environment and the capacity expansion has already been briefed by Mr. Nanda already. So I would like to just give you an update on the order book and immediately followed by the financial highlights, and then we have the questions and answers. So once pipeline continues to remain healthy. reflecting sustained customer confidence in improving investment activity across the industry. We operate virtually in all industries, including the sunrise industry like the semiconductor, we the data centers and all of those kinds. And as of 31st July '26, our order book stood at INR 1,864 crores, significantly better than where it was 3 months ago. when we addressed the last investor meet. It also includes a major order for a major energy company in Barodra, which is INR 165 crores. And we continue to remain disciplined in our order selection, quality of the orders, focusing on projects that align with our execution capability, strategic priorities and profitability objectives. And our diversified customer base and integrated business model position us well to capitalize on the opportunities emerging across India, industrial landscape. Looking ahead, we remain focused on the execution, strengthening the customer relationship and expanding our manufacturing and engineering capabilities, which are our core of the business. Our integrated business model backed by our strong in-house engineering does help us in achieving our objectives quarter-over-quarter, year-over-year. While the first half of the financial year is expected to remain relatively measured due to the seasonal factors in our business, we expect execution momentum to improve progressively as we get out of the monsoon and over the coming quarters. And with a robust balance sheet, expanding manufacturing footprint, disciplined capital allocation and continued investments in future-ready capability. We remain well positioned to capitalize on India's evolving industrial lines infrastructure investment cycle. Coming to the financial highlights for the quarter. One of FY '27, revenue for the quarter stood at INR 460 crores. registering a year-on-year growth of 20.7% compared to INR 381 crores in the same quarter last year. EBITDA for the quarter stood at INR 39 crores as against INR 32 crores in the last year same quarter, reflecting a growth of 24.6%. -- which is more than the revenue growth, so the pricing is better. EBITDA margin for Q1 FY '27 remained stable at 8.6%. And Profit after tax for the quarter remained flat at INR 28 crores as a function of the other incomes, which I will explain later. And the total order book, as I explained, is in upwards of 1864 crore. So thank you very much, and we can open the floor for the questions and answers.

[Operator Instructions] . The first question is from the line of Sudeep from AMBIT Capital.

Thank you for the opportunity. My question was on the revenue run rate for Q1. So you mentioned that for 9 months, the revenue run rate for FY '27 would be around per quarter. So this time, it was around INR 460 crores, lower than Q3 of last year and Q4 of last year. So what was the reason, like what was the reason behind lower kind of revenue number for this quarter?

See, our normally because of the seasonal conditions, of clearances at site and what's happening at site, you will notice that nearly every year, the pickup is the first quarter is lower than second quarter, and then third and fourth, that is how it picks up in any case. So there is nothing unusual about it. And so order book is in place, capacity is in place. It's just that during these 2 quarters, the first 2 quarters, sometimes the clearances and site conditions don't allow us to dispatch these customized materials. So that's why I said, we are aiming for 600 a quarter. We have to actually do about INR 1,700 crores in the next 9 months to meet our target. So we will -- it will vary a little bit in each quarter. It's not going to be flat. So it could move up to, say, 550 and then 600 and then 620 is like that. But that is the standard sort of trend we have seen in the past as well. So nothing unusual.

Okay. Sir, it was actually lower than Q2 of last year, and we had a commissioning of capacity, 40,000 coming up in September, October 25. So that was the reason why I asked, like why was it even lower than Q2 of 2026.

Like I said, a lot depends on our clearances that we get. Q1, Q2 can be different, depending where our work is going on. Sometimes in the first quarter, there is rains or there is no at certain sites because we are doing work there and the sites are flooded or what cannot be done. And the second quarter becomes better and sometimes it is wiser versa. So there's nothing to worry about it. And what we got into production last September was the second phase of the Andhra plant. The first phase was already there. The second phase, which is about 20,000 tonnes came into play in September last year. and is being utilized now. So there is no reason to worry because our business is not always the same every quarter. First 2 quarters can vary. So nothing to worry about in that.

Sure. Got it, sir. So the next question was on the announcement of QIP. So that is like INR 250-odd crores. So what would be the kind of envisage utilization of proceeds.

We had earlier got approval for INR 100 crores in the Board meeting 6 months ago and got the shareholders' approval, then we figured that there's a lot of change happening in the Indian landscape of industry, and we need to speed up our expansion plans. So the basic fund utilization is that the Phase II and Phase III heavy structure, which I mentioned earlier, and [indiscernible] itself will be about INR 150 crores. We already speeded it up earlier, it was going to be a little slower on phase a year. Now we are doing in 1.5 years, all 3 phases. Then another plant in Gujarat to meet our green unit building requirements -- we will need another plant in Gujarat, but which we already bought the land. So that's another INR 50 crores to INR 60 crores and INR 50 crores to INR 60 crores will be required for our what we have signed our MOU with the Canadian company to set up a 100% export unit for steel structure, which is called Open Web Joyce custom to be exported 100% to them. So that is overall sort of broad figures, about INR 140 crores, INR 50 crores in heavy structure INR 50 crores to INR 60 crores in [indiscernible] 2, not Phase 2 of this at plant 2 and the open web joint system, 100% export unit. And to just give you an idea, the last time we respond was in the IPO of about INR 180 crores. Until today, we have already spent about INR 240 crores in CapEx in the last 2 years, 2 years, say, from first April 24 to now. So the idea is to speeding up the expansion and not wait for internal resources because right now, the market is picking up and we feel that we should be a major participant in the market.

The next question is from the line of Anuj Shah from Phillip Capital.

Congratulations on a steady set of numbers. Coming on to the JV that we see with [indiscernible]. Could you just elaborate on the rationale behind this partnership and synergies that Intersect to derive say, technology or product capabilities, customer acquisition? And what sort of revenue potential do you envisage from this lent over the next couple of years, 2 to 3 years time frame?

See, we have met this company a year, 1.5 years ago for basically exports to a pre-unit buildings to Canada and North America. So while we were talking to them, and they visited our factories and met us. And they felt that we had the capabilities because North American market requires very high quality and very precise deliveries. They are very conscious of that while they are able to pay the price for it. So they felt that there is a system called Open Web joint system in U.S., which is very commonly used, but only in the North American market. Very few other countries in the world and India, of course, doesn't use at all. So they felt that there is a huge market in North America. And if we collaborate, mean we concentrate on the marketing, on the manufacturing and the factory part of it, and they concentrate on the sales and the engineering and getting the customer that we can build up a good market for it. They have been buying in the past from other players in U.S. And it's -- there are not that many players because this is an item which requires a lot of manpower and manufacturing in U.S. and Canada don't seem to be very competitive in -- so the idea was that net set up a joint venture. We concentrate on the manufacturing part, make the item they sell, they send us the orders, we manufacture and we supply to them and the Canadian and U.S. partners look after by them, whether it is sales, whether it is collection, whether it is installation, everything is looked after by there. So we are very keen overall to build up an export market. So we feel that exports should be an important vertical going forward. And right time to build up is now when there's a lot of demand from North American market also in other countries as well. And we are in a good position to sort of give our expertise that we have developed over the last 20, 25 years in manufacturing, in design in quality standard to other people and leverage on that. Exports will be more profitable. Prices there are higher. We will make more profit. The expense on sales marketing is 0. Expense on project management is 0. So therefore, we feel that exports is very important, and this is a part of that overall strategy. Over a period of time, this plant is being set up for about 15,000 tonnes. So I feel that over a period of time, if we take an average price currently, we can take about $1.50. So it will be about $20 million to $23 million full capacity. But of course, it is in 2, 3 years because it's not going to be overnight that we'll get this figure. In our first phase, we are planning about 4,000 to 5,000 tonnes which will give us a sale of about $7.5 million. And so about, say, INR 70 crores, INR 75 crores, with a good -- I would say maybe EBITDA margin on that. And capacity is, of course, 3x of that. So in the next 2 to 3 years, I think we should dwell up into the production time in 1 year, we should be in production by July and July next year. And then it will take us about 2 to 3 years to build up this capacity. That is our idea. Maybe it will be faster. But of course, we will be ready to expand into another phase of this, if the demand picks up, that is how we are planning it. So overall, this plant will give us about $22 million, $23 million of sales from India and a profitability is what we are aiming for.

Okay. Understood, sir. My second question is, sir, what is the current capacity utilization that you've done in Q1, sir? So we have a current capacity of approximately with the Gujarat plant also coming up of about 200,000 220,000 tonnes. And if I'm not mistaken, I think we have done about 190,000 tonnes last year. That 162,000 tonnes and we had a capacity of 200 at that time, sir, it was about -- so you can answer that question and fold to them.

Yes. So the last year capacity, sir, was 200,000 tonnes. And with the inauguration of the KA plant Phase 1, it has gone up to 221 to be precise. And last year, our sales was 162,000 metric tons. So that's a capacity utilization of 80%. But in our business, the utilizable capacity is about 85% to 90% of the installed capacity. So if I look at the utilizable capacity, we were at about 88% of the utilize test.

And in Q1, how much utilization was ramp-up?

Yes. So Q1, our sale is about 38,000 -- sorry, yes, 38,499 tonns. So 38,500 tonnes is the total volume that we have done in the quarter.

Okay. Out of the [indiscernible].

That is correct, yes. So that's about 80% again because the quarterly capacity is 50,000 tonnes. So at that [indiscernible].

Okay. Understood. Understood. As far as the outlook is concerned. So full year, we are aiming for a INR 200 crore to INR 2,300-odd crores revenue. But are we also confident of maintaining our margins and because this time, we've done around close to 8.5%, 8.6% kind of a margin, are we confident of do you reopen that and I mean shifting over to 9%, 9.5% to 10%, 10% kind of a margin land that we've done in the previous years. So sort of margin trajectory are we in this year and probably next year as well.

Well, we are aiming for a sales start of 2,150 right now. So we are trying to increase our margin. I think as we get into more complex job and more complex clients, I think our margins should go up. And also, again, we are concentrating a lot on our internal economy, better purchasing less wastage, better recoveries, other costs reductions that we can get as a bigger company to increase our margins internally as well. So we are working on both. And I think margins will gradually go up with addition of exports with the addition of heavy structures. We are also trying to leverage our present expenses to increase our turnover in these lines. So I think it will show results, but I'm not very sure that it's immediate result this year because we have to also, whenever we open new plants and new areas like we have done, Gujarat and [indiscernible], a lot of expense goes into that in advance of actually the sale happening. But I think on '27, '28, we are quite hopeful that we should increase our margins substantially.

Thank you. [Operator Instructions]. The next question is from the line of [indiscernible] from ICICI Security.

Firstly, sir, on the treasury income part. So does this quarter have lower rate income because of lower treasury the working capital ratio, especially on the payment side, which you were getting a factor last quarter? Is it still persisting? Or has it normalized?

No, no, we are in a much better condition. Last quarter, we had explained that A lot of the large projects were in the stage where the billing had been done, money has not been recovered. And we had also soft a little bit extra because of the prices going up or steel. And on the other side, to get proper supplies, which a lot of people were not able to get, we were paying the suppliers sort of literally advanced payments to buy the steel. So all these 3 questions, 3 things: together had that negative effect. We are back to positive now. And I think the other treasury is because we are spending money on CapEx. Like I mentioned earlier, also out of INR 180 crores that we raised during the we've already spent INR 2340 crores. So the money has -- earlier, the treasury funds were coming in and interest coming in because we had that money with us. Now it is getting spent. So in a way, it is a good thing. And depreciation is also going up. So other income is basically the money that we were holding while we had to spend it. So instead of holding it, we have now built up the capacity. But we will -- that would give us more operational profit going forward, of course.

Okay. Great, sir. Secondly, on -- just a clarification that if there is a large order, then it comes out for tendering then, does that order has already got the design and those things done and there's cut off already. So you now have to build. So instead of you designing everything I was a little bit confused that if a company, say, mid- to larger size company, if they come out for some plant expansion or anything of that sort. So they should have done estimation of the CapEx, what they are going to do through a consultant or through a designer already rather than PE players again doing the designing and going for the bid.

Okay. Manish, can you answer the question?

Yes. So I'll answer this Sir, in our case, any customer who is building a new factory or a data center or any kind of building there when we use the word designed for them, it is basically the layout, means how the building flow will be there, where which machine will fit. We do not get the final structural design from either the consultant or the customer they only do based on the -- they only do the budgeting based on their past experience. For every bid, we only get what we call a design basis and the architectural drawings basis, which we carry out the entire structural design, not the building layer design, calculate the bill of quantity, how much of which steel is going to get used and then bid. So far as each building has to be first estimated, then ported and then the order will come to us, and then we will do the final detailing. There is no design that comes to us from the consultant -- that is what our business is.

The next question is from the line of Shankar Gupta from Equity Capital.

First question is that I think [indiscernible] mentioned that there were a lot of changes happening in the industrial landscape is a -- if you can guide us a bit on that. I think we lost a little bit of signal.

Can you just repeat the question, please?

So I'm saying that you initially mentioned that the QIP of [indiscernible] was approved by the Board, right? Because of the changes happening in the industrial landscape, and we [indiscernible].

Mr. Shankar your line is not clear.

Is it audible?

Yes, but we lose you at some point.

Yes. Sorry, okay. So what I'm asking is, as you mentioned in the beginning of the call that we were planning to 100 earlier, but on 150, right? Because of industrial landscape changes, which we've got observing route. So just wanted to understand what those changes are and what's happening on the ground. That's one.

Yes. See, what we are seeing is that two things are happening. One is, of course, a lot of the large projects are coming into India because India is trying to encourage through PLI schemes and other semiconductor plants, renewable plants, lithium battery plants, EVs. And now again, the car industry has started moving again automobile industry which was not building for many years because -- so there's a lot of industrial movement because of these very large plants. Most of these industries require very large plants. So therefore, the size has increased dramatically a lot of the FMCG and pain, they're also coming back. But also another thing which is happening in our landscape is that the steel use, the usage of steel as a building material is also changing. [indiscernible], data centers, high-rise buildings, these are also moving a lot towards steel. So both these things happening together is straining everybody's capacity. So either we bid and take the order, but then we need to have the capacity both orders are very large most of the large orders today, whether it is EV, whether they're all divided between 2 to 3 companies, but there's no one company which can do it even now. So that is a big change in landscape. One is the size of the projects with the government of India at least is trying to attract into India? And what is happening? And second is the usage of steel and a lot of projects which were not using steel earlier.

Got it. So sir, second question was actually on several only. So you mentioned that we have been entering the newer segments, data centers, right, Renewables probably. So just wanted to understand like what part of our -- like the Q1 revenue came from these newer segments that you could help us a little bit on what these newer segments are according to you? And then what percentage of the order book of INR 1 crore is from these newer segments [indiscernible] the newer segments on -- are there also margin acetone for us?

See, what we are calling newer sector is that these renewables EVs lithium battery, data centers, semiconductors, the chips. There are a lot of these, which we are calling the new age industries. So that is coming in a big way in India because Indian government is also trying to attract phones phone assembly as we have seen the numbers have gone up. So I think this is what we are calling the new age industry. And we have positioned ourselves pretty well to cater to that kind of industry in India. So margin accretive depends on the competition. Yes, of course, as they become larger, you become 1 of the few companies which can do it. But you are not the only company. So it's not that I can demand whatever I want. But yes, they know that only 2 or 3 of the companies can do this kind of project. So you got to compete with everybody else who can get very low. But here the emphasis of the client also is that the doability will these guys be able to engineer design my project in time produce it in time, deliver it in time, erect it in time and in a proper sequence. So those things are in this mine. It is not only a production item because it starts from design engineering and the whole thing has to be delivered in a sequence because these projects are so large that I can't deliver everything and then start direction. I have to deliver in very tight proper sequence. Every nut and bolt for a certain area has to go together with all the columns and beams, then only when it gets installed. So that is how the customer mindset works. So naturally, we earn a little better margin also because the moment the size of the project increases our productivity level also goes up. INR 10 crore project, INR 10 crore, INR 10 crore projects will be costlier for methane INR 100 crore project. sometime I might have to go lower in price for INR 100 crore project as a margin, but might end up making more. And as I increase my turnover, then actually my overhead gets divided over a larger turnover. So there are a lot of play in this business. Sometimes I will take a very large order at a low margin, some get good margin. But our idea is to build up a clientele which will give us some good margin, appreciate us, give us a good margin, give us a good value. We deliver a great job and the total CapEx involved in our building even in the lithium battery or that is very low compared to their total CapEx. But it's a very critical item of CapEx for them. If the building is not done on time, there's nothing that they can do. So therefore, [indiscernible] so our focus is that only that go with the large companies, go with a company which appreciate partnership, a company like us with deliver, which are professional and working, which are very knowledgeable in design, engineering, very good in sale. So make yourself a good partner to the world's best companies in India. And then I think it will come. So we can only do the effort. The results sometimes are not really in your control. But our effort is to reach a point where we do make much better profit than we make today. We don't think we are making very good profit. We should do much, much better. But then [indiscernible].

No, fair. So I mean, my question on this were from Q1, like the segment which you just mentioned, what percentage of will be. So I don't have the [indiscernible]

I don't have it. [indiscernible] breakup. Manish, do you have the exact breakup or we can send it to them later?

We can send it to them later. But I can tell you that part of the next part of your question that how much of our order book is through this new age industry and new segment, that's about 35%.

35%. Okay. Got it.

Of the remaining order book. With the new age industries as well as the new sector, which is the multistory buildings and data centers and hotels and all of that.

The next question is from the line of [indiscernible].

So my question is on basically the business. So based on the recent conversation in the call and from last 2 years, you are doing CapEx. So is it like this investor looks like quite capital intensive. So would you agree that the sustainability in a growth in business is difficult without regular investment that like industry require CapEx in manufacturing capacity how should investors think about this? Yes, that's it. That's my first question.

Say how much you want to spend capacity? That is the key in this I mean you don't have to expand on actually to do to increase your business. But we feel that we are in a very good position in this industry. The country is in a very good state where it's expanding fast. People need to build faster, [indiscernible]. They are shifting to steel as a bridging material very easily. They want to deal with 1 company as a lung tam, one-stop shop kind of a thing. So we are in a very good space. In we are building CapEx at a speed where we feel that we can cater to the market. And is it like I always mentioned that for us, it is a net annual -- so just by putting money in the factory, which is what is most visible, it doesn't make a creatinine company. I have to make sure that my sales marketing, design, engineering people, project management, certified builders drug driving as trade good. Everything is in place before I can get an order and executed. Most visible in expenditures is, of course, the factory. But it's entirely up to us -- we feel that our clients are growing. They want to give us more business. Many times I have to refuse and not being able to take it. So that is, I think, a company choice. It's not a business. Otherwise, I don't think we are a very high CapEx kind of a company business as well. it's our choice. We want to grow fast. We want to take advantage of the changing situation. And we have made our mind that we have to be in the top 2 companies in India come what may. And naturally, we cannot be in the top 2 companies if we don't have the capacity. There's no question. So that is our decision.

Okay. Got you. My second question is like how much is the current contribution from export. And what is your medium-term target for the export mix? Like you are doing the JV with Canadian company. [indiscernible] the margin profile in export, it is better than domestic business?

No, Manish, can you answer that? No, no. Right now, it's most a very low part for [indiscernible] give you a detail [indiscernible].

Yes. So sir, if we talk of particularly quarter 1, our export contribution is very little. So out of, let us say, about INR 460 crores, it will be in the range of INR 10 crores to INR 12 crores. So that's answer number one. Answer number 2 is that, yes, whether it is export of our transgene steel building to any country, be it North America or Africa, for which we have order books. Are the new business that we are talking about, the open [indiscernible], which [indiscernible] clarified that there the EBITDA could be in the north. So the answer is that for preengineered steel building business, exports do give us a little better margin than the domestic. And this special open web steel Joyce joint venture with Canadian company should give us an EBITDA in excess of about 20%.

And how is the target, your medium-term target for export mix?

Yes. So as we said, that openness steel joist will come up somewhere sort of in the quarter end of quarter 2 next year, whereas in short to medium term, we want to do about 10% of our total turnover through exports. That's in the short to medium term, 1 to 2 years.

The next question is from the line of Aasim from DAM Capital.

Just two questions. So this time in your revenue breakup for Q1, you have talked about 10% coming from buildings, which early is to be 2% or even 0% earlier. So just can you talk about what kind of buildings we were -- was it heavy structure line? Or is something else part of that you have to the capacity only coming up now?

Okay. So in a segment, sir, we specify the 3 segments. One is industrial, which is purely manufacturing units for people. Number two is warehousing and logistics and number 3 is what we specified as buildings. Buildings are basically institutions. So it is -- it could be a flight kitchen it could be a commercial building. It could be an office building, it could be a multistory building for somebody or a process building. So yes, that particular segment, which was not using steel as much as it is using now is converting very fast from the RCC framed buildings into steel can buildings. And this particular segment, which is the Building segment, which is like what is not industry and warehouse is what comes here is growing significantly. Even now, our order book has orders for multi-story buildings within Delhi, outside Delhi, Abbey Airport, the hotel, [indiscernible]. So yes, this quarter, it did include a data center as within the 10% that we made [indiscernible]. So that segment is growing.