EFC (I) Limited (EFCIL) Q1 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to EFC India Limited Q1 FY27 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on a touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Nidhi Vijayavadhyaya from MUFG InTime. Thank you. And over to you, ma'am.

Good morning, everyone. Welcome to the Q1 FY27 Earnings Conference Call of EFC India Limited. To discuss this quarter's performance, we have from the management, Mr. Umesh Sahai, Chairman and Managing Director, Mr. Nikhil Bhuta, Whole-Time Director, Mr. Uday Vohra, Chief Financial Officer, and Mr. Aman Gupta, Company Secretary. Before we proceed with this call, I would like to mention that some of the statements made in today's call may be forward-looking in nature and may involve risks and uncertainties. For more details, can we refer to the investor presentation and other filings that can be found on the company's website and stock exchanges? With that, I would like to hand over the call to Mr. Umish Sahai for his opening remarks. Thank you and over to you, sir.

Thank you. Thank you, ma'am. Good morning, ladies and gentlemen. Thank you for joining us for the Cuban Financial Year 27 Irving Conference Call of EFC India Limited. We are pleased to begin Finisher 27 on a strong note. Q1 reflects continued momentum across our platform, supported by disciplined execution, enterprise-led demand, and the growing relevance of our integrated real estate-as-a-service model. During the quarter, our consolidation revenue from operation stood at approximately $23 crores, representing a growth of around 29% year-on-year. Profit after tax stood at approximately 71 crore, growing by around 52% year-on-year. These numbers demonstrate the strength of our platform, the benefit of scale, and our continued focus on profitable execution. Over the last few years, we have continuously built EFC as a multi-engine workspace platform across three core verticals, leasing, design, and build, and furniture manufacturing. These businesses are distanced, but together they allow us to participate across the complete commercial workspace life cycle. From space identification and leasing to design, execution, fit-out, furniture, and ongoing workspace operation. Our leasing business continues to remain the foundation of the platform. It provides a recurring revenue base, deep enterprise relationship, and long-term customer engagement. Thank you. Across 25 cities during the quarter and serve more than 80 clients, our design and build vertical continue to strengthen the ecosystem by allowing us to deliver trunky commercial interior enterprise, GCC institutional client and multi-location mandate. The vertical enhance our relevance to client because we are not merely providing space, we are helping them create functional, scalable, and ready-to-use workspace infrastructure. Our furniture manufacturing business further strengthen our integrated model. It supports quality control, faster execution, better procurement, discipline, and supply chain reliability. As this vertical sales, it adds another important capability to our platform and improves our ability to serve both internal workspace requirements and external institution demand. As the industry has remained encouraging, India continues to see a strong demand for grade A commercial workspace, managed office solution, and enterprise-ready infrastructure. The shift toward GCC flexible workspace, enterprise-led office, and integrated workspace solution is closely aligned with ESP operating models. What is important is that Occupy today are not looking for the office space. They are looking for speed, flexibility, design, quality, execution, certainly, and a single accountable partner. This is where EFC integrated leasing design and build and furniture capability create a meaningful and competitive advantage. We remain focused on discipline growth, improving asset productivity, strengthening enterprise relationship, and create sustainable value for all stakeholders. Our approach is not just to expand, but to expand with operating discipline, customer quality, and return focus. I would like to thank our shareholders, customers, banking partners, our team members, and all shareholders' continued trust and support. With that, I would now like to invite Mr. Nikhil Bhuta, whole-time director, to discuss the operational performance and the company in greater detail.

Thank you to all investors, analysts, and stakeholders, and a warm welcome to the Q1 FY27 earning conference call of VFCI Limited. Q1 FY27 has been a strong operational quarter for the company. The performance reflects the progress we've made in building a scalable, integrated, and enterprise-focused workspace platform. Our three core businesses, leasing, design and build, and furniture manufacturing, continue to perform in a coordinated manner. Together, these businesses allow EFC to offer complete workday solutions to clients while creating operating synergies, cross-selling opportunities, and deeper customer relationships. Starting with the leasing business, this vertical continues to be the cornerstone of our platform. During the quarter, leasing revenue stood at approximately Rs. 154 crore, growing around 26% year-on-year. Segment results from the leasing business stood at approximately 64 crore of profitability. This reflects the stability of the annuity model, the strength of our enterprise relationships, and the benefits of scalable across our managed workspace portfolio. Our managed workspace platform now spans 25 cities with total seat capacity of more than 84,000 seats, Bill sits of more than 68,000 seats. We have also additional inventory and capacities under development, which supports future revenue visibility without making any revenue commitment. The scale of these platforms gives us operating leverage, deeper customer access, and stronger enterprise engagement. Enterprise demand continues to remain healthy. We are seeing traction from GCCs, multinational companies, BFSI institutions, technology companies, consulting firms, enterprise outsourcing businesses, and other institutional clients. This client increasingly prefers flexible, scalable, high-quality, and professionally managed workspaces. Our ability to provide consistent delivery across multiple cities is becoming an important differentiator. A key strength of our leasing portfolio is the quality of customer relationships. Enterprise clients contribute meaningfully to our revenues, and the average enterprise client tenure remains very healthy. This supports revenue stability and helps us build long-term visibility in the business. Moving to the design and build work still, the business continued to contribute strongly during the quarter. The revenue from this segment stood at approximately 100 crore, growing year on year. Segment results stood at approximately $34 crore of profitability. The business continues to benefit from turnkey mandates, repeat relationships, multiple locational projects, and demand from enterprise clients. Our current design and build order book stood at approximately more than 228 crores. This gives us healthy executional visibility. The strength of this business comes from our ability to combine design, project management, execution, The design and build vertical also plays a strategic role within the group. It supports our leasing business by accelerating fit-out completion and helping us monetize spaces faster. It also opens a opportunity with the clients who may not initially come to us for leasing, but require turnkey workspace execution. Coming to the furniture manufacturing business, Ake Design continues to scale as an important part of the integrated platform. During the quarter, furniture revenue stood at approximately 29 crore rupees, growing more than 120% year on year. This is Vertical Strength and EFC's backward integration strategy. It improves our control over quality, delivery timeline, and cost availability. The business currently has more than 2,200 SKUs and has delivered more than 75,000 units across categories. The order book for the furniture business is approximately 53 crore plus, which reflects growing institutional acceptance of the platform. The furniture business is still in a scale-up phase. As volume increases, the focus remains on improving capacity utilization, product mix, executional efficiency, and institutional customer relationships. We are building this business for long-term strategic value, not just as a standalone manufacturing vertical, but as an important enabler of the broader EFC ecosystem. One of the biggest advantages of our model is that we participate across multiple stages of workplace value chain. A client may engage with us for managed offices, or design and build furniture, or a combination of all of these solutions. This increases wallet share, improves client stickiness, and strengthens our position as a single, accountable partner. Overall, Q1FI27 has demonstrated that our platform is scaling well. The leasing business remains stable and recurring. The design and build business has a healthy order book. And the furniture business is gaining operating scale. The business pipeline across our verticals remains encouraging, and the market opportunity continues to support integrated workplace solution providers like EFC. We remain focused on execution quality, discipline expansion, customer retention, asset productivity, and sustainable value creation. I would like to thank all our investors, stakeholders. With that, I would now like to hand over the call to Mr. Udaywara, our Chief Financial Officer, who will take you through the financial performance of the company. Thank you so much, and over to you, Uday.

Good morning, everyone, and welcome to the quarter 1 FY27 earnings conference call of EFC India Ltd. I will now take you through the consolidated financial performance of the company for the quarter ended June 30, 2026. We have started FY27 on a strong note with a healthy growth in revenue and profitability on a year-on-year basis. The performance during the quarter was supported by continued demand across our core verticals, Revenue from operations for Q1 FY27 stood at 282.88 crores, as compared to 219.62 crores in Q1 FY26, representing a year-on-year growth of approximately 29%. EBITDA for the quarter stood at approximately 122.96 crores. As compared to 102.16 crore in Q1 F526, representing growth of around 20% year-on-year, EBITDA margin for the quarter stood at approximately 43.5%. Profit before tax stood at 101.34 crore as compared to 66.06 crore in Q1 F526, reflecting a growth of approximately 53% year-on-year. While profit after tax stood at 70.85 crore as compared to 46.67 crores in Q1 F526, representing growth of approximately 52% year-on-year. Profit after tax margin improved to approximately 25.1% in Q1 F527 as compared to approximately 21.3% in Q1 F526. This reflects operating discipline, scale benefits, and strength of the business mix. The leasing business remained the largest contributor to revenue. Leasing revenue stood at 153.91 crore during Q1 F527 as compared to 122.18 crore in Q1 F526, growing approximately 26% year-on-year. Segment result from leasing stood at 64.33 crore. The design and build business reported a revenue of $100.39 crore during the quarter as compared to $84.69 crore in Q1 F526. The segment results stood at $33.84 crores. The business continues to be supported by execution of turnkey and enterprise-led projects. The furniture business reported revenue of $28.57 crores during Q1 F527 as compared to $12.75 crores in Q1 F526. Strong year-on-year growth of approximately 124%. Segment results stood at 2.10 crore. This vertical continues to scale and remains strategically important to our backward integration and execution control model. Other income for the quarter stood at 11.42 crore. Finance cost for the quarter stood at 10.35 crore. Lower than the previous quarter and broadly controlled relative to the scale of the business. Depreciation and amortization stood at 22.69 crores. On the balance sheet side, the company continues to support growth across leasing, design and build, and furniture while maintaining focus on financial discipline. Our operating model involves both recurring revenue assets and execution-led businesses, and we continue to evaluate capital allocation with a focus on return, asset productivity, and long-term value creation. While the overall financial performance for Q1 FY27 has been strong, we remain focused on improving operating efficiency, working capital discipline, client collections, execution cycles, and asset utilization across the platform. To summarize, Q1 FY27 reflects a strong start to the year. Revenue grew 29% year-on-year, EBITDA grew 20% year-on-year, and PAD grew 52% year-on-year. The leasing platform continues to provide stable recurring base, the design and build businesses has healthy execution visibility, and the furniture business is scaling as an important strategic vertical within the ecosystem. We believe the company is well positioned to benefit from the continuing shift towards enterprise managed workspaces, turnkey execution, integrated workspace solution, and institutional demand. We will continue to focus on discipline growth, efficient execution, Stronger customer relationship, and sustainable value creation. With this, I conclude my remarks. I would like to thank all our shareholders, lenders, partners, and stakeholders for their continued trust and support. I now request the moderator to open the floor for the question and answer session. Thank you.

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handshake while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Akash from Fedge Limited. Please proceed.

Um, Umesh sir, Nikhil sir, Uday sir, many, many congratulations on excellent results this time again. I have two questions. I'll break it down in two parts. Firstly, the DNB order book is at 228 crores and furniture order book is at 53 crores. How much of this is going to be for third party and how much of this is going to be for internal capacity?

So, thank you so much, Akash, and yes, we have delivered a strong performance. Thank you very much. It is done by the landlords only. This entire order book that we are, you know, talking about is largely more than about 85% is from the external business relationships only, Akash.

So, my second question is, sir, the interior D&D division revenue has declined from the previous quarter. It was, I think, earlier about 120-odd crores, which has come down to about 100 crores now. Is this a business which is seasonal, or are we expecting some order delays, or what is it?

Yes, I mean, there's a little slight reduction compared to the last quarter, which is Q4. Typically, you know, you would appreciate that, you know, our business under design and build is a project-based business. There's no seasonality which is kind of affecting this business. But what really matters in this kind of division or vertical is basically the projects that are under execution. Now, typically, you know, you start getting your projects in the third and the fourth quarter of financial years, and, you know, they get in their executions, and obviously, you see a great amount of upside during these two quarters, which is quarter three, quarter four, and you would have probably observed in our financials in the last financial year as well. But so, hence, the best way to probably look at it, this is, if you look at it Q&Q, YOY, then obviously there is a significant, you know, growth Q&Q, YOY, and it will continue similarly Q&Q every YOY, every quarter on YOY basis. And we are very confident that keeping in mind the order book that we already have, which is about more than 228 crore, you know, and our executional capability that the timeline within which we execute, we are very confident of, you know, we are absolutely on track of achieving the growth target that we have of more than around 50% under the B&B segment on a YOY basis. So, absolutely, there is no seasonality involved. Yes, obviously, the market conditions overall, there has been, as you know, that overall disruptions in the supply chain, overall disruptions in the material pricing, etc., etc. But despite all that, we have kind of continued growing on a YOY basis, and we believe that we will continue growing this vertical at the kind of targeted growth rate that we have set for ourselves for the current financial years.

Thank you. Thank you so much. This answers my query. Thank you.

Thank you.

Thank you. The next question is from the line of Bharat from Comtec Capital. Please proceed.

Yeah. Thank you, Yaxateen, and congratulations for this wonderful result. So, sir, I have two questions. First question, I'll just like to put, I understand your model considers leased centers owned asset and asset monetization. So, how do you look this, you know, product mix over next three years, and how investors should value these three models differently?

Absolutely. Thank you so much, Bharat. I mean, I think it's a very interesting question, and it is very necessary for all our investors to understand that how we are really contributing in creating better returns and overall capital efficiency through this model. So, number one, what we are doing is that we are not... You know, of getting our leasing business affected anyway. What we're doing through the asset monetization model is we are basically acquiring certain good assets. So, we are doing a value acquisitions where the assets which are probably, let's say, you know, 10-year-old, which are vacant, we acquire them, we refurbish them, we create value in them. And then we lease it out through our own managed office vertical, which is anyway, you know, that's our kind of legacy business, right? And we understand this thoroughly. So, what we are able to do is we are able to monetize such assets, create value in those assets, and create a greater amount of IRR revenue through this additional kind of revenue stream, in a sense, if I may say so, where, you know, my leasing business, for my leasing business, I myself is the landlord, which otherwise, what would I do? I would have got into a leasehold contract with a landlord, take the property on lease, and then I would have operated as a manager's office. Here, what I'm doing is I'm acquiring an asset. And I am developing them and offering them for a managed office solution and also getting appreciation in the property value because of the great improvements and because of the making yield asset, the yield generating, the rental yield generating asset, and hence create that appreciation. So, this is a fabulous opportunity that our management has... We are also able to capture this asset monetization opportunity and which kind of improves our overall profitability, our overall margins, our overall offering to the investors at large. So, I hope I've answered this broadly, but, you know, I mean, we don't differentiate as an asset class here, like I said. This is just, we are, you know, kind of, in a sense, some of the assets that we are acquiring on our own book to create this appreciation opportunities.

Understood. This is helpful, sir. Sir, my another question is, I understand, you know, we take 18 to 20 months for payback for, you know, per seat fit-out cost, which is 50K. Could you please give some idea whether it's a 50K, it's a standard cost, or it's for some selected, you know, centers, or it is, you know, from selected category, or what is the, you know, worst payback period if, you know, the cost changes per seat for fit-outs?

No, I mean, it is fairly standard. I mean, and we have been doing this business for quite some time now. So obviously, it's fairly established for us. And as you also know that, you know, the fit out cost is in our case is usually funded by the landlord. So I mean, it is you know, we are we rather say that this is a payback for landlord in that kind of a period. So absolutely, I mean, there is there is not specific to any centers or anything like that. This is a kind of a standard. Payback period that one can achieve for the fit-out that is done for our businesses, and we also can achieve for fit-outs where we do for our own properties. Within this period only, we are able to kind of achieve the payback, and this remains fairly constant standard across. Uh, across the centers, across cities, across pan-India VCS.

Understood. Uh, I think this is helpful, sir. Thank you so much. And again, once again, congratulations for wonderful results.

Thank you. Thank you so much.

Thank you. The next question is from the line of Mohan Sharma from Vinayak Capital. Please proceed.

Congratulations, Team EFC. Thank you so much, operator. Your furniture revenue has increased 36% quarter on quarter, but your segment profit fell around from 75% to around 7%. Margin dropped 40% to 7%. What was wrong in the furniture segment?

There is nothing wrong in the furniture segment, and in fact, you see how we look at this segment right now is this segment is growing continuously. It is kind of stabilizing itself continuously, and if you see year-on-year and quarter-on-quarter, it is improving in terms of the top line, and hence, it is improving its capacity utilization. And you would appreciate that the moment we kind of come to an optimal capacity level, we will be able to kind of demonstrate, you know, the margins which are more stabilized, margins which are more, you know, measurable. And I think that is the only situation that we are obviously witnessing in this Q&A results that, yes, if you compare it with some of the earlier quarters where if the volumes are low, where maybe the services were, you know, for a specific type of projects, the margins were different. And these services are for very different type of projects. The margins could be different. But, you know, when we operate at an optimal level, and which is what we are progressing towards, I think by end of this year, we should be kind of, you know, kind of progressing to an optimal capacity utilization. And at that time, we would be able to kind of, you know, come to position to compare our margins more appropriately. So at this point of time, comparing margins... So, at a quarter-on-quarter level would not be appropriate because, like I said, it is still at not a full optimized capacity level, and we are in progress to achieve it sooner within this financial year. And I hope this answers your questions.

Yeah, thank you so much, sir. But I have a follow-up question. So, is the furniture segment structurally low margin or was quarter 4 of 26? Margins were unusually high, which quarter reflects the real run rate.

Like I said, we will be able to kind of give you the real run rate once we are at an optimized level, which is, like I said, more than 60-70% capacity utilization. So, the real run rate would only be established once we are at that level, and that is the time where we will be able to establish the correct profitability standards. And as we have always mentioned, that this business is one of those businesses which is in value-accredited business for us and where our margins are going to be really well because, you know, we have a lot of visibility on the businesses, a lot of different kind of business model strategies that we have adopted, starting from doing OEM business, doing export business, doing institutional business, doing customized, providing customized solutions. Now, all of this is kind of helping us to kind of, you know, expand our margin beautifully well. We expect achieving an EBITDA of more than 25% easily under this vertical, and that is a stabilized margin that one can really look at, and this is what we are looking at achieving once we are at an optimized capacity utilization level, sir.

Thank you so much. Thank you so much for the clarification.

Welcome, please. Thank you. The next question is from the line of Fenil Bhambhat from Choice Institutional Equities. Please proceed.

Yeah, hello. So, first of all, congratulations on a good set of numbers to the teams ESP. So, I have couple of questions. So, what was the average occupancy rate and retention rate for the quarter?

Hi, Fennell. Yes, the average occupancy rate has been 90% plus, as you can see probably in our presentation also. The operational billing capacities and, you know, the inventory, that is roughly around 90% occupancy that has been worked out if you look at the numbers that is presented in the presentation also.

Okay, and the retention rate, was it?

So, basically, yeah, retention rate is roughly around 95% plus. I mean, we just have a churn of about 4% to 5%. So, I mean, as you know, and that is also mentioned in the presentation, that our average tenure for our enterprise client has increased to 51 months. Which is even better than what we have achieved for our earlier quarter. So, I mean, that itself shows that there is a great amount of retention. And hence, there is a very, very insignificant portion of churn that is happening at our organization level on the leasing vertical. So, we are really in a strongly position in terms of our stability of revenue stream under the leasing business.

Okay. On this, we have mentioned 2280 million of current order book. So can we have a handy the last quarter's order book or by end of last quarter, by end of FY26, what was this number? So that will give the sense like it's increase or decrease or what? So, can we have that number with you?

Yeah, yeah. You can, obviously, you can refer to our Q4 presentation where we have already mentioned that our order book at the end of the quarter four was at 135 crore worth of orders on hand, out of which, as we have mentioned, they had already executed 100 crore plus of orders, which are in balance under execution. And this quarter, we have order book of more than 228 crore. Which is also already under execution. So...

And the next question on the guidance side, so what we can expect from the DNB and furniture segment like the average or any CAGR growth or margin from this segment and for leasing segment, the sweet addition of 18,000 to 20,000. So we are confident on that.

So, 100% confident on, you know, kind of adding about 18 to 20,000 billable seats on the leasing business. You know, 100% certain about, you know, the kind of growth that is happening under the design and build segment, which is, like I said, roughly around 50% IOI. And we are also equally confident of achieving similar kind of growth for our furniture vertical also, which will bring us to a very optimal capacity utilization level. So we are absolutely confident on achieving the targets that we have set for ourselves for this financial year in terms of the growth targets. In terms of the margins, margin remains stabilized because one of our organization motto is very clear that independent of the growth that we're trying to achieve, we have to ensure that our margin remains stable and rather improves going forward with more capacity utilization, with more economy of scales being achieved through the integrated business model that we're working on, and with more monetization models or strategies being added to the overall business model. Thank you. Absolutely, we are on target on those lines, Fenel.

Okay, okay, noted. And last question for you, sir, like, could you share some more color on the, that de-merger of ESA and ESA India, like, when we can expect this and the impact of this de-merger on our financials as well as overall business, so that will give more sense.

Yeah, so this is more of a restructuring, more and more of a consolidation process, you know, where, you know, we are trying to kind of consolidate our corporate holding structure rather than, you know, doing anything on the financial restructuring. So this is more from that point of view, and that is going to help ease, understand the overall corporate structure much better. Now, you know, at the end of this entire process being executed, what you will see is a company which is a consolidated company at EFCI level where you have your design and build vertical and the leasing vertical. What will be left out under a separate subsidiary, Holyon, obviously, subsidiary is an asset holding companies because, you know, what happens is when we are acquiring assets on our book and when we try to monetize it is from a tax efficiency point of view, we try to keep them separately so that whenever we monetize them, there is a good tax efficiency that we can achieve. But doing this demerger, the objective is that we are consolidating all our different verticals, different subsidiaries into one and everything gets consolidated at DFCI level and hence simplifying the corporate holding structure. Sometimes people feel that there are multiple subsidiaries, etc. So that entire situation is kind of getting, you know, sorted out. Now it is simplified. By doing this restructuring, we are able to kind of consolidate everything under EFCI Limited. There will be only EFCI Limited. There will be asset holding company, and there will be furniture manufacturing because that is our partnership company with our technical partners. So otherwise, everything will be consolidated under EFCI Limited, which is already there. But I'm saying structurally also, all these holding-on subsidiaries are getting aligned at EFCI Limited.

Okay, okay. So, sir, whatever renew or whatever income we'll get from this unnormalizing the asset, that will going to have an impact on like the overall financial, right? So where we are going to show that in which category or which line item or particular line item or like how we can going to consolidate that particular amount we are going to get from the normalizing the asset.

So, I didn't understand what you're saying about normalizing the assets, but basically what I'm trying to say is that through this restructuring, we are doing all our leasing business, design and build vertical under EFCI Limited, and then there will be furniture manufacturing business, and then there is asset holding company where our SPVs, which will hold the assets that we will monetize over a period of time. So it will be EFCI Limited and then there will be EFCI Limited which is already there as a holding on subsidiary will getting kind of merged into the EFCI Limited. Hence, there will be only two company below EFCI Limited. One, the asset holding companies and the second, Egg Design Industries Limited. So, the income will get consolidated at EFCI Limited, number one, on a standalone basis, and that will obviously offer a tax efficiency and also offer a simplified corporate structure. So, and all income streams would be recorded accordingly, whether it is, let's say, revenue from leasing, design and build, or furniture on a segment basis, and also if there is an asset monetization happening, that asset monetization, if there is a capital gain, then capital gain would be reported accordingly, or if there is revenue from leasing activity, it will get clubbed under the leasing business. So, that's how things will get reported or organized through this restructuring that we are doing.

Okay, got it, got it. That's all from my class. Thank you so much, and all the best.

Thank you.

Thank you. The next question is from the line of Ali from EN Capital. Please proceed.

Hi, good morning, all at EFC. Firstly, congratulations to the team at EFC on the performance. We look forward to seeing this growth trajectory maintained on a quarter-to-quarter basis. Sir, I have a few questions. I hope I can ask them.

Please go ahead, please.

Yeah. So, sir, firstly, the revenue is down by 3% quarter-on-quarter, and the EBITDA is also down 14% quarter-on-quarter. But if you see the profit after tax, that has gone up. So, can you please explain what has driven this PAT increase despite the weaker operating performance?

I think there is, first of all, there is absolutely no weaker operating performance at all. You know, the EBITDA reduction is primarily because of the, you know, way the India's accounting works. You know, there is absolutely, what we have always maintained is the best way to look at our company is to look at it at a PAT level. And if you see the PAT level, the company has improved its rather profitability. And hence, the reason behind this improvement is obviously, you know, the outcome of our integrated business model. We are able to bring so much of efficiency, so much of cost control, so much of, you know, you know, economy of scales that we are able to kind of achieve these things. And specifically, if you talk about, you know, the leasing vertical has performed very well. If you look at the segmental result also, in fact, the design and build vertical, despite there is a little reduction in the turnover Compared to the last previous quarter, which is, as I've explained in my earlier question, it is largely because of, you know, that the Q1 is generally the slow starter relatively. And if you look at my Q1 for the previous years, you will also witness that. But, you know, right now the order book already in hand shows a strong visibility going forward and hence, you know, kind of establishes whatever target that we have set could be achieved in terms of growth on a YOY basis. For this financial aid also. So what I'm trying to explain is that if you look at it, all these situations and also the incremental businesses under the furniture business also, all of this coming together and our... The core business model is enabling us to offer a better profitability, enabling us to kind of improve our margins. If you also look at that, we have kind of rationalized our borrowing costs significantly, and hence that is also contributing to the bottom line significantly below. So if you look at, you know, from a bad point of view, that is why, you know, there is a significant improvement in the bottom line because there is a, you know, the rationalization of borrowing costs as well. The borrowing costs, again, as you already may know, that it is largely towards the assets that we have acquired, that is, you know, towards the LAP or the LRD facilities that we generally avail. So what I am saying is, overall, the performance. The positivity on the path is contributed through, obviously, the better capital deployment strategies, obviously, better operating performance because of the integrated business model, and also the kind of scales that we are operating, hence, brings the efficiencies.

Understood, sir. Understood. Sir, as you said, that the leasing business did well, and obviously the recommended results showed that, but the competition from all these competitors, AWFIS, SmartWorks, WeWork India, IndyCube, and last, Landauld, seems really increasing. So what is EFC's key definition, which is keeping EFC on the edge beyond the price? What is that which is beyond price and speed of execution, and how do you look forward for the entire year?

So, yes, certainly, I mean, you know, keeping out price and speed of execution out of the equation is very difficult, and that is one of the key differentiators, obviously, which we drive and which has been our kind of one of the, you know, kind of business models that always has been. Listen, competition is always there in every business, and without competition, you also do not thrive to grow further. We really thrive with the competition around, and fortunately, if you see all our competitors have adopted a very unique business model, and we have our own model, which is an integrated business model, which is a real estate as a service business model. You know, we have kind of, you know, as, you know, Mr. Udaywara would have explained in his speech, you know, that we are able to make us more accountable and, you know, kind of offer us as a complete solution or a complete package to our customers where we are giving them a complete turnkey solutions for any leasing requirement that our customers are looking at, where, you know, they don't have to really look at whether, okay, if I have to take an asset and get it leased or whether I have to get it designed and built or whether I have to source my furniture. Everything is happening at one place. So I think what is our moat in this entire business, if you see, one is this integrated business model, which kind of brings that economy of scale, that brings that economy of efficiencies, bring, you know, the kind of, you know, the abilities where we are able to improve our margins overall. And, you know, what we are also able to do is that, you know, our presence across these multiple cities and, you know, kind of able to kind of make the model harder to replicate for others. Because, you know, we are just not just doing only a pure leasing or co-working platform, but we are into enterprise-led revenue businesses where we have design and build, furniture manufacturing, and leasing revenue all coming together and kind of making an integrated, you know, three multiple revenue streams that is enabling us to kind of grow going forward. So what I'm trying to say is that the moat comes, if you look at it in terms of the revenue streams that we have developed, which is three different revenue streams, not a single revenue stream with cost centers, but three different revenue streams with trees. Businesses that vertical that we have developed, number one. And hence, the economy of skills. And number three is obviously the price and the execution capability. And number four is certainly the design capabilities. And number five is certainly the... The fit-out cost optimization that we've been to kind of achieve over the years. So these are the key differentiators for us in the market, and we believe that this will – and further, lastly, sorry to miss out, but lastly to add, which we have kind of mentioned this time in our presentation also, that our ability to do the asset monetization and hence achieve the capital appreciation as an additional source of revenue for our investors, and hence that adds further to our overall moat. that we bring as an organization.

Absolutely, sir. Interesting. So, last one, sir, if you allow me. Please go ahead. Yeah. So, sir, can you just explain what the safety concentration as of today and where do we look forward to build more?

Yeah, so, I mean, the city concentration is obviously there in the presentation. If you see, there is a, you know, we have kind of done a regional bifurcation of how our presence is kind of across India. Yes, right now we are heavy on the western India because, you know, that's been our, you know, kind of that's where we started our journey from. But we are very strongly going forward. We are kind of expanding our presence across India on an equal footing level. If you look at now, we are more than 15% in North India. We are more than 15% in Southern India. And we are also continuously growing in the East in India. So I think with this expansion and our focus will also remain in those three city quarters of north and south. Let's say in north you have Gurgaon, Noida, Delhi, and on south you have Hyderabad, Bangalore, Chennai, because those are those three cities who are very focused. The West India, you know, I mean, from business-wise, it's always been the, you know, strong locations where we have locations like Bombay, Pune, Ahmedabad, Indore, you know, to some extent, I would consider even Rajasthan, so the Jaipur, all of these locations are those business cities, and they are obviously thriving, and hence our presence would also increase on those cities. Right now, we are focused on the 10 major cities, which is three in the north, three in south, and about three in west, which is Mumbai, Pune, Ahmedabad, and a couple of them in the eastern side, which is obviously Kolkata going forward. So, that's where our presence is right now, and that's where we are also looking at expanding ourselves.

Yes, sir. Congratulations, sir, and we look forward.

Thank you so much.

Thank you. Ladies and gentlemen, we will take that as our last question for today. I now hand the conference over to Ms. Nidhi from MUSG in time for closing comments. Over to you, ma'am.

Thank you, Uda. I would like to thank the management for taking the time out for the conference call today, and also to all the participants for joining this call. If you have any queries, feel free to contact us. We are MUFG Intent Investor Relations Advisors to EFC India Limited. Thank you so much.

Thank you.

Thank you. On behalf of EFC India Limited, that concludes this conference. Thank you for joining us, and you may now be listening. Thank you.