Ladies and gentlemen, good day and welcome to the NCC Limited Q2 FY 2027 earnings conference call hosted by JM Financial Institutional Securities Limited. 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 call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Vaibhav Shah from JM Financial Institutional Securities Limited. Thank you, and over to you, sir.
Thank you, Rayo. On behalf of JM Financial, I welcome everybody to Q2 FY 2027 earnings conference call of NCC Limited. We have from the management today Shri R.S. Raju, Director of Projects, Shri Sanjay Pusarla, Executive Vice President, Finance and Accounts, and Shri Neerad Sharma, Head Strategy and Investor Relations. Now I hand over the call to the management for their opening remarks, post which we can begin Q&A session. Over to you, sir.
Thank you very much, Vaibhav. Good morning, everyone. This is Neerad. It gives me great pleasure to welcome you all to NCC's earning call for the second quarter and the first half of the current financial year. At the very outset, I would like to thank each of you for joining this interactive session and for your continued interest and trust in NCC. I have with me my colleagues, Mr. R.S. Raju, Director Projects, and our CFO, Mr. Sanjay Pusarla. Yesterday, we have announced our unaudited financial results for the second quarter and the first half of the for the half year ended 30th September 2026, which have been uploaded on our website and shared with the stock exchanges. We trust you have had the opportunity to review the financial statements and the investors presentation.
Before we begin, I would like to draw your attention to a brief disclaimer with a request to study a detailed version from our investors presentation. This presentation may contain forward-looking statements concerning NCC's future business prospects and profitability, which are subject to several risks and uncertainties. The actual results could materially differ from those indicated in such forward-looking statements. End of the disclaimer. This interaction is broadly divided into three parts. In the first part, I will present a brief overview of the business environment, operational highlights, and our progress against our FY 2027 guidance. In the second part, our CFO will cover the detailed financial performance for the second quarter and the first half of the current financial year. In the third and last part, we will take up your questions.
As you are aware, we have been continuously exploring new areas to expand our offerings to remain relevant to the emerging infrastructure opportunities, particularly in technology-enabled infrastructure and allied sector. We have already entered in new areas such as smart meters and tunneling using TBMs in the recent past. As part of our medium-term plan to pursue emerging business opportunities, our board has approved a few modifications in the Memorandum of Association to enlarge the scope of activities to be undertaken by the company. The second quarter is seasonally impacted by the monsoon, which generally slows down activity at project sites. Despite this, execution across our project portfolio remained steady, and we have recorded the highest ever second quarter revenue in NCC's history on a consol basis. Project progress across the sector continues to be influenced by fund allocation, client approvals, land availability, utility shifting, and billing milestones.
Our teams have remained focused on mitigating these through disciplined project execution and close engagement with our clients. Our underlying business fundamentals remain robust, supported by a diversified order book across seven business divisions and an established and proven project management framework. As of 30th September 2026, our order book stands at INR 80,167 crore, which is 11% higher than a year ago. During the quarter, we have booked new orders worth INR 4,838 crore, mainly from our buildings and water and railway divisions. Our order book is about 3.5 times trailing 12-month revenue, giving healthy multi-year revenue visibility. Including the orders of INR 2,381 crore received in the month of October, our total inflow for the year so far stands at INR 11,108 crore, which is about 50% of our lower band of the guidance that we have shared with the market.
In the second quarter of FY 2027, the company has reported a turnover of INR 6,042 crore on a consol basis as against INR 4,585 crore in the corresponding quarter of the previous year, registering a growth of 32%. On a standalone basis, the turnover stands at INR 4,957 crore, a growth of 31% over the corresponding quarter of the previous year. For the first half of FY 2027, the consol turnover stands at INR 11,884 crore as against INR 9,793 crore in the first half of the previous year, which is a growth of 21%. The EBITDA margin for the quarter stands at 8.8% on a consol basis as against 8.7% in the corresponding quarter of the previous year. For the first half, the EBITDA margin stands at 9.1% as against 8.7% in the first half of the previous year.
On our last call, we have shared our guidance for FY 2027, which is order inflow in a band of INR 22,000 crore-INR 25,000 crore, revenue growth of 8%-10%, and EBITDA margin in the range of 8.5%-9%. We have decided to retain our guidance for FY 2027. At the end of second quarter, the broad components of our order book are as follows. The building division stands at INR 22,367 crore, which is about 28% of our total order book. The transportation division has an order book of INR 15,682 crore, which is about 20% of our order book. The electrical T&D division stands at INR 12,370 crore, which is about 15% of the order book. The mining division stands at INR 12,400 crore, representing about 15% of the order book. The water and railway divisions hold INR 12,126 crore, which is 15% of the order book.
The irrigation and other divisions has INR 5,220 crore, which is about 7% of the order book. Now I hand over to my colleague, Mr. Sanjay Pusarla, with a request to share with you a detailed financial performance of the quarter and the first half of the year.
Thank you, Neerad. Good morning, ladies and gentlemen. This is Sanjay Pusarla, CFO from NCC Limited. This time, we have given a detailed presentation, detailed information in the investors presentation. However, for the benefit of all the participant, I will be explaining it again. I am pleased to announce the unaudited financial results of Q2 of FY 2027 NCC Limited. My announcement will cover from order book, profitability, revenue, debt movement, and some other important balance sheet items. I will start with the revenue. Turnover reported in Q2 FY 2027 is INR 4,957 crore as against turnover of INR 3,775 crore in the corresponding quarter of the previous year. This shows an increase of 31%. At consolidated level, the turnover reported in Q2 is INR 6,042 crore as against INR 4,585 crore in the corresponding quarter of the previous year, showing an increase of 32%.
Coming to the profitability, we achieved EBITDA of 8.48%, that is INR 417.05 crore for Q2 FY 2027, as against 7.45%, which is INR 277.45 crore for the corresponding quarter of the previous year. PBT, we achieved 4.4%, which is INR 218.19 crore, and PAT of 3.29%, which is INR 163.17 crore in the current quarter, as against PBT of 3.12%, that is INR 117.94 crore, and PAT of 2.7%, which is INR 101.88 crore reported in the corresponding quarter of the previous year. At consolidated level, EBITDA we achieved 8.79%, which is INR 528.46 crore, and PBT of 4.47%, which is INR 269.85 crore, that is before exceptional items. PAT attributable to the shareholders is 3.05%, INR 184.29 crore in the current quarter. As against this, EBITDA of 8.66%, that is INR 393.31 crore, PBT of 4.55%, which is INR 208.62 crore, and PAT of 3.37%, which is INR 154.7 crore reported in the corresponding period of the last quarter.
I cover the order book also. Our order book stands at INR 80,167 crore as at the end of September 30th, 2026. You are aware the order book at the beginning of the quarter stood at INR 81,214 crore, and orders received during the quarter two is INR 4,838 crore. The order book of INR 80,167 crore is consisting of order book of INR 71,293 crore at standalone level and INR 8,874 crore of the subsidiaries.
Let us get into the debt movement. Debt at the standalone level. The debt at the beginning of the quarter is INR 2,410 crore. Net debt after cash and cash equivalent is INR 2,008 crore. At the end of Q2, it stood at INR 2,471 crore and net debt of INR 2,293 crore. At the end of Q2 FY 2026, the same is INR 2,115 crore and net debt of INR 1,890 crore. There is an increase of debt by INR 61 crore in Q2 FY 2027.
The debt-equity ratio stands at 0.32 at the end of Q2 FY 2027, as against 0.31 at the end of June 30th, 2026, and 0.29 at the end of September 30th, 2025, that is the corresponding period of the last year. Debt movement at the consol. The debt at beginning of the quarter stood at INR 4,020 crore, and net debt after cash and cash equivalent is INR 3,513 crore. At the end of Q2 FY 2027, it stood at INR 4,110 crore and net debt of INR 3,887 crore. At the end of Q2 FY 2026, that is the corresponding period of the last year, the same is INR 2,923 crore and net debt is INR 2,643 crore. in respect of working capital, excluding cash and margin money deposits, at the end of Q2 FY 2027, it stands at INR 5,532 crore, which is 28% of the turnover. In terms of days, it is 96 days. Trade receivables.
The outstanding at the end of Q2 has decreased from INR 3,055 crore- INR 2,697 crore, and the number of days also decreased from 68 days- 53 days in the current quarter. It is 78 days for the corresponding quarter of the previous year. In respect of retention money, it stands at INR 2,547 crore in Q2 FY 2027, as against INR 2,396 at the end of June 26th, and INR 2,250 crore as at the end of March 26th. Unbilled revenue decreased from INR 7,414 crore, which is 38% of the revenue, to INR 7,174 crore, which is 37% in Q2 FY 2027. Corresponding period of the previous year, it is INR 6,663 crore, and it is 41%. Coming to the mobilization advances. Mobilization advances stood at INR 2,925 crore as on September 30th, 2026, as against INR 3,163 crore as on June 30th, and INR 3,386 crore as on March 31st, 2026.
Of these mobilization advances, 53% are interest-bearing, and the average interest rate works out to 9.07%. Interest-bearing advances decreased from 60%- 53% during quarter two, financial year 2026. Cash and cash equivalents. It is INR 178 crore as of September 30th, 2026, INR 404 crore at the end of June 26, and INR 584 crore at the end of March 26. Margin money deposits and others. It is INR 740 crore as of September 30th.
Sorry to interrupt. This is the operator. Sir, there's some disturbance on the line.
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Participants, please stay connected while we reconnect the management. Ladies and gentlemen, please stay connected. We will just reconnect the management line. Participants, thank you for patiently holding your lines. We have the management reconnected. Over to you, sir.
Thank you. Thank you for your patience. I will start again with the mobilized advances. I think at that point of time only, there was some disturbance on the line. Mobilization advances stood at INR 2,925 crore as on 30th September 2026, as against INR 3,163 crore as at the end of June 2026, and INR 3,386 crore at the end of March 2026. Out of these mobilized advances, 53% are interest-bearing, and the average interest rate comes to 9.07%. In this quarter, the interest-bearing advances decreased from 60%- 53%. Cash and cash equivalents. It is INR 178 crore as at the end of September 2026, and INR 404 crore as at the end of June, and INR 584 crore as at the end of March 2026. Margin money deposits and others.
It is INR 740 crore as at the end of September 2026, INR 633 crore as at the end of June 2026, and INR 631 crore end of March 2026. Coming to the capex. We have incurred a capex of INR 83 crore in Q2 and INR 253 crore in the first six months, as against the budgeted capex of INR 500 crore.
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Participants, please stay connected while we reconnect the management. Participants, please hold your lines. We will just reconnect the management line. Participants, thank you for patiently holding your lines. We have the management on the line. Over to you, sir.
Yeah, thank you. So I will start from the capex. I think at that point of time, the disturbance came again. We have incurred a capex of INR 83 crore in the Q2 FY 2027 and INR 253 crore in the first six months, as against the budget of INR 500 crore for the financial year 2027. The EPS stands at INR 2.60 at the end of Q2, as against INR 1.62 of the relevant quarter of the previous year. Inventory stands at INR 1,742 crore as at the end of September, INR 1,815 crore end of June, and INR 1,787 crore at the end of March 2026. Coming to the investments, there is no change in the investment. The number is INR 867 crore end of September, and the same is the case end of March 2026 also.
Loans to group companies, INR 306 crore at the end of September, and INR 290 crore at the end of June, and INR 295 crore at the end of March 2026. Coming to the Vizag receivable status, at the end of September 2026, it is INR 270 crore. At the end of June, it is almost at INR 270 crore. At the end of March, it was INR 291 crore. With this, I will be ending my presentation on the financial statement. Now it is open 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 questions may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking questions. Ladies and gentlemen, we will wait for a moment while the question queue assembles. To ask questions, please press star and one. The first question is from Shravan Shah from Dolat Capital. Please go ahead.
Hi, sir. Thank you for the opportunity. Congratulations on good set of numbers. Sir, just wanted to understand, despite the strong execution for first half, 21% plus growth, where we are saying 8%-10% of our guidance we are maintaining. If I translate into the numbers, that means that we are looking at 6%-9.5% kind of a de-growth for the second half. Is there any specific project or a segment or the normal payment clearance-related delays are there, and that is why we are not confident to kind of increase the guidance? And same way, till now, October and 6th November, are we seeing the momentum in terms of the growth or whatever the number is there, and that is why we believe that 8%-10% is doable, and which translates to kind of a 6%-10% kind of a de-growth in the second half?
Mr. Shah, very good morning.
Good morning, sir.
Mr. Shah, the guidance that we had shared with you has been for the whole year, that is FY 2027. We are pleased to share with you the fact that things have worked very well for us in the H1. The mining division, several other projects have given us the revenues, the numbers that we really needed for the growth, and we have shared very good set of numbers that we have already called out. But still we have two quarters to go, and whenever we share a number with investors, we do a thorough working for various projects, and then depending on that estimation only, we have shared the guidance for you, that is 8%-10% growth for FY 2027, and we have decided to retain that guidance.
Yeah, no, I understand, sir. But given, let's say, to put it a simple way, this quarter and standalone, we have done INR 4,970 odd crore. Do we see a lower revenue in the third quarter given whatever we have done? Then only the 8%-10% is, one can say, justifiable. Otherwise, this number has to be on the upper side.
Mr. Shah, the third quarter is still on. We have not concluded the third quarter. Still, we have a lot of time to go for the third quarter. I mean, it is premature really to talk about the third quarter performance. But I mean, to cut a long story short, we have decided to retain the guidance that we have shared with you, that is 8%-10% growth.
Okay.
Thank you.
Yeah. Sir, just in terms of one more aspect, I was just looking at in terms of the retention money for us. For last three quarters, this number has the 2,500-odd crore currently, which is there, 13.3% of the revenue is there, which used to be a kind of 8.5% one and a half year before. If I have to translate in terms of the numbers, it is kind of INR 950,000 crore of a revenue. If we release this kind of a money and on a 9% interest, it translates to INR 85, 90-odd crore, which is a 10% of the PAT. Just trying to understand, are we making any effort or attempt to kind of reduce this retention money as a percentage of revenue? Because it is significant, INR 1,000-odd crore we can easily kind of release.
Yeah. This is Sanjay here. The retention money you are talking 1.5 year back, at that point of time, we have got contracts of about INR 20,000 crore where there is no retention money at all. In the present context, what is happening, almost all the contracts have a retention money, 5% of retention money, and some of the contracts in electrical division where we have lost, the retention money is as high as 20%. Some of the contracts which we received in Mumbai for the CC roads, the retention money is also very high. That is the reason the retention money, when you compare to the previous period, it appears to be high. But this is the retention money which we are having it. If you see on quarter-on-quarter, there is about INR 150 crore, there is an increase in the retention money.
Going forward, maybe if you get a contract where you can replace retention money with the bank guarantees, definitely there will be reduction in that. Otherwise, whatever contract that will be completing the DLP period, you will be getting back your retention money. Some of the contracts have a clause where the contract completion, you can replace the retention money with a bank guarantee for 50%. It depends on the contract, it depends on the composition mix of the contracts and the present situations. This retention money will be there. It will continue to be there.
Okay. Lastly, sir, on working capital and debt front, can we expect further kind of improvement in working capital and debt, which is, if you look at from the March level, kind of a INR 200 crore plus kind of increase. So we will come back to the March level of FY 2026 at the end of FY 2027.
Hopefully, we will be coming back to that level.
Okay. Thank you, sir. All the best and happy Diwali.
Thank you so much and happy Diwali.
Thank you. The next question is from Parvez Qazi from Nuvama Group. Please go ahead.
Hi. Good afternoon and thanks for taking my question. Two questions from my side. First, we have seen a pretty decent improvement in our payment cycle, especially over the last six-odd months. Will this be largely due to the UP JJM projects or, I mean, in general, we have seen improvement in payment cycle across them?
In general, we have seen the payment cycle is improving. As you said, even the payment from the Jal Jeevan Mission is also improving. They are coming in a regular manner.
What would be the outstanding in UP JJM projects now?
As on date, INR 2,246 crore, including all the JJM projects handled by us across various states.
I think, if I remember correctly, it was about INR 2,700-INR 800 last quarter. So there has been a substantial reduction in this quarter.
If you ask me to give you only the trade receivables, it has come down to INR 344 crore. In the case of unbilled revenue, it was INR 2,009 crore.
Sure. There has been a decent reduction there. The second question is on the capex. You mentioned, I think, H1 capex at about INR 153-odd crore. Now, I am assuming this is only at the standalone level. Overall capex, including TBM, is INR 388 crore. Is that number correct?
Yes. It is not 153. It is 253 crore in the first six months. TBM, whatever we have invested, it was invested in the last year itself. It was there as a capital work in progress in the last year. This year, it has been capitalized. It is excluding that.
Okay. Sure, sir. Thanks. I will come back in the queue for further questions. Thank you, and happy Diwali to the entire team.
Thank you, and wish you the same.
Thank you. Before we take the next question, a reminder to participants that you may press star and one to join the question queue. The next question is from Vaibhav Shah from JM Financial. Please go ahead.
Sir, on the capex, we maintain our INR 500 crore guidance for 2027?
Yes, cash we will maintain.
For FY 2028, it should be a similar number, or we can see an uptick?
Generally, it will be a similar number, because we are handling the mining project, the requirement may come up. You know that we have bagged the mining project in Jharkhand, Amrapali project. So, it is a capital-intensive project. It may require some kind of capex in the next year also. But we will come back with the FY 2028 number.
Okay, got it. Secondly, what would be our JJM order backlog overall, including O&M as of September?
Excluding O&M.
This is excluding O&M. Generally, O&M we consider when we started, but excluding O&M, the order backlog is , one minute. INR 5,412 crore.
And we plan to execute this by next year end?
It is like this. In this INR 5,142 crore, there are some new projects which have come from Jal Jeevan, in other states. The major Jal Jeevan order backlog, which is there in U.P., will get substantially completed by March 2027 itself.
And sir, we are open to take new projects in JJM?
Yes, definitely. If we get an opportunity, then we will take it.
Despite the payments being an issue for quite some time in last couple of years, we are still open?
Yeah, we do not expect the same kind of problems or same kind of tightness will be there in release of payments by the government. Because now the governments are coming up, like in AP, they are coming up, and some other places also they are coming up with the JJM scheme.
Okay, got it. Secondly, on the Vizag land sale, you mentioned that INR 270 crore is outstanding. So by when do we expect to recover it?
We expect by end of the quarter four, we will be able to complete this.
The entire amount?
Entire amount.
Okay. Lastly on the smart meter thing, what is the outstanding order backlog right now for smart meter?
Yeah, it is almost like 51% we have completed installation, and 49% is outstanding.
Okay. Thank you, sir. Those are my questions.
Thank you.
Thank you. Participants who wish to ask questions may press star and one. The next question is from Vishal Periwal from PL Capital. Please go ahead.
Yes, sir. Thanks, sir, for the opportunity. Sorry, sir, I am audible, right?
Yeah, you are audible. You are audible. Good morning.
Yeah, sure. Yeah, morning, sir. Sir, sorry, harping on that guidance part again. I mean, like, you know, historically, we have been saying to the market that either the clearances are not coming, then probably we delay execution. Or second, if clearances have come and then payment release is not happening, then we delay the execution. But if you look at last two quarters, the execution has been there, which means clearances are coming and as well as your balance sheet what you have reported, the cash flows are also coming. So, I mean, given both the part are going in line with what our thought process has been, what could be the reason of probably saying things will be little on the weaker side in the second half based on the guidance?
Yeah, two questions. Firstly, Mr. Periwal, our commentary is contingent on what is prevailing at our sites. You talked about our commentary in the past. So, in the calls, we try to communicate what we get to see at the sites. As the numbers in the last two quarters speak for themselves, the things have been improving. And some of the sites, I think my CFO has already called out, for the Jal Jeevan Mission, we have received payment. We are making progress on the sites. The commentary that we had shared with you in the past was a reflection on what we got to see at this point of time. Things seem to be improving, but we never share any guidance for six months.
The guidance that we have shared for the street is for the whole year, that is FY 2027, and we have decided to retain that guidance. And hopefully, surpass that number.
Oh, that's good to hear, sir. And then maybe one bookkeeping. I think unbilled revenue, it has come down on a quarter basis this quarter, but last two, three years we have seen an increase. So I think broadly you mentioned INR 2,000 is coming from JJM. Is it possible to get what exactly is this stickiness or probably anything color that can be provided regarding unbilled revenue, sir?
No, I think we need to little explain on this. The unbilled revenue is coming down, and the type of contracts now we are executing are on the EPC basis, not like in earlier days where you will be billing on the execution and the quantities. Now, on the EPC basis, when you do that, the billing will happen on the milestone achievement. So when you see the unbilled revenue, the health of the unbilled revenue is very much improving, and it is all related to the BharatNet project, where we are executing, and also the projects where we are executing in AP Capital City. The huge amount of work is going on there, and also at the BharatNet, we are also doing the huge amounts of work. So these are the things contributing for the unbilled revenue. But no doubt, the unbilled revenue is improving in its health.
There is no sticky unbilled revenue. The unbilled revenue is progressively realizing. But we expect that we maintain maybe a similar type of unbilled revenue in the days to come.
Okay. And maybe if I can just ask one last question. What is the outstanding in BharatNet for us in terms of order book, and probably what kind of execution we have done quarterly this quarter for BharatNet?
We have done almost like 11% of the total contract we have executed in both MP and Uttarakhand. We have almost spent about INR 1,000 crore on its work, and we have started billing now. The unbilled revenue, as I said, that is also there. Especially in the BharatNet projects, the lead time for conversion from billing, from execution to billing and realization is little longer.
Okay. And segment-wise, sir, where is BharatNet housed? I mean-
Electricals and T&D.
Okay. Fine, sir. Sure, sir. I will come back in the queue. Thank you very much, sir.
Thank you.
Thank you. Please press star one to join the question queue. The next question is from Nishali Shah from Old Bridge Mutual Fund. Please go ahead. Nishali Shah from Old Bridge, please go ahead with the question.
He is not audible.
Hello. Am I audible now?
Yeah, it is clear now.
Yeah. Thank you for the opportunity. I wanted to ask more on smart meter end. I would want to understand what kind of payment cycle are we seeing there? Is there any working capital challenges we are facing on that side?
No, we do not see any working capital challenges in the smart meters execution. Smart meters, when we are executing, the payment will be in two phases. One is earlier, first on installation of the smart meters, we get some amount of payment, and the balance amount we will get over 83 months after the installation.
93.
Sorry, 93 months. After 93 months of the installation on a monthly basis. And we have not seen any challenges, and the payments are coming on a regular basis.
Okay. Second question is on AP Capital City. What kind of receivables is outstanding right now, and what order book are we looking at on that front?
But as far as the receivables are concerned, we are not facing any challenge. Whatever work we are executing, we are getting realization. Between 30- 40 days, we are getting realization. So that is not a problem. When it comes to the order book, I just give you what is the amount of order book. INR 14,500 crore is the order book for the AP.
Okay. Thank you. Thanks, sir. Thank you so much, and a very happy Diwali.
Thank you. The next question is from Parth Thakkar from JM Financial. Please go ahead.
Thank you for the opportunity. My first question would be regarding the bid pipeline. Can you provide us with the segmental breakup as well?
Bid pipeline. I think in the last call in May, I have already shared the prospective pipeline of projects that we get to see, which at this point of time, at that point of time was about INR 2.5 lakh crore. Our business is primarily construction, so we do not really give segment-wise breakup.
It would be intact at INR 25 lakh crore?
Yeah . Do you have any other question?
Yes, sir. What would be our JJM payment in the first half?
In the first half, we received about INR 1,720 crore.
Okay. My last question, do we see any impact of higher raw material prices on our margins?
81% of our contracts have got the escalation clauses. Any increase in the prices will majorly offset from the price variation clauses that are available.
Okay, sir. Those were my questions. Thank you.
Thank you.
Thank you. The next question is from Shravan Jain from Dolat Capital. Please go ahead.
Thanks for the opportunity. My question is that since 60% of your clients are PSUs, could you explain your billing process, the average collection period, and whether any retention amount is withheld from the payments?
As per the contract, retention monies are from 5%-10%, and each of the running bill, when they are processed, they will hold the retention money, and that money will be released only after completion of the contract partially, and balance they will release it after completion of the DLP period. Generally, in the government clients, the payment cycles ranges between 50-60 days from the date of certification.
Okay, thank you. That was my question.
Thank you. The next question is from Pankaj Kumar . Please go ahead.
Yeah, thanks for taking my question, and congrats on good set of numbers. Sir, on the JJM project, what is the total outstanding order book as of now?
INR 5,413 crore.
Earlier, we indicated that we will try to complete large part of this order backlog in the current financial year. Are we on track, or is there any change?
We are on track.
Okay. Since we have already received around INR 11,000 crore of orders, and we have guided for INR 22,000 crore-INR 25,000 crore of inflows, can we assume, because normally H2 we get the larger part of the orders, are we on track to exceed our guidance or may achieve upper end of the guidance? If you can comment on the new order inflows guidance.
See, you are absolutely right that we have shared the order inflow guidance, a band, INR 22,000 crore-INR 25,000 crore. If we take into account the projects that we have bagged in the month of October, the total inflow is about INR 11,108 crore, which is about 50% of the lower band. This itself gives us the confidence that we are on our way to achieve the band of the order inflow guidance that we have shared with the street. We retain that guidance, and hopefully, we will achieve that number.
Okay. And sir, lastly, what is the update on Ken-Betwa project? How is that progressing?
Which project, sir?
Ken-Betwa project. I mean, there were some issues earlier regarding land acquisition from there. Any update on river linking project?
No, we are making reasonable progress on the Ken-Betwa sites. The land acquisition issue or demonstration that you are alluding to was at a place that was at a distance of 30, 40 km away from our project site. We are happy to share with you that we are making reasonable progress on this project.
Okay, sir. Okay, sir. Thank you. Thanks for answering the question, and happy Diwali.
Thank you very much. Happy Diwali. Thank you.
Thank you. Before we take the next question, a request to participants to please limit your questions to two per participant so that the management is able to address questions from all participants of the conference. The next question is from Shravan Shah from Dolat Capital. Please go ahead.
Hi, sir. Thanks for the opportunity again. Sir, can you break it down the difference of the standalone and consol order, which is INR 8,874 crore in terms segment-wise? I understand it is transport, electrical, and mining. These are the three segments. If you can break it down, this would be helpful.
All are standalone. Standalone, it is INR 80,000. Sorry, total it is INR 80,167. Of that, INR 71,293 is the standalone. INR 8,874 is the subsidiary companies. Of INR 8,874, mining we have INR 5,923. Transportation we have INR 2,431. Smart meters we have INR 520 crore.
Okay, got it. Sir, in terms of the finance cost and the depreciation, finance cost is roughly INR 166 odd crore quarterly for last two quarters. This run rate will continue for second half also.
Yes.
In terms of the depreciation, how it will inch up from this quarter INR 73 odd crore, as it inched up by 3-4 crore on QoQ business. So, will it keep on inching up, or will it be a sizable increase in third and fourth quarter?
It is like this. The TBM machine was capitalized and put to use in the month of September. From September, that means second quarter of this year. Definitely, the depreciation is going to go up in the third quarter and fourth quarter. Besides the TBM, we also have got the mining project where we are executing, where it is a capital intensive. There also the depreciation will come into play. Hence, the depreciation is going to inch up in the subsequent quarters.
Hello. The point here to be noted is, in absolute terms, the depreciation cost increases quarter-to-quarter, basing on the new orders, basing on the new capex already taken place, and also the capex take place in the rest of the quarters. However, in terms of percentage, the same reading is maintainable. 1.48% is given. That is maintainable.
Okay. But this TBM and mining one, will that depreciation be a part of standalone or will it be a part of the consol?
No, here mining is inclusive of this 1.48. The mining project is in a standalone project.
Even TBM also is a standalone. Both will come under the standalone only.
Okay. Got it, sir. Thank you.
Thank you.
Thank you. The next question is from Saket Kapoor from Kapoor & Company. Please go ahead.
Yeah. Namaskar, sir. Hope I'm audible to the team.
You are audible.
Saket Kapoor, good morning.
Yeah, good. Yeah, sir. Good afternoon, sir. Thank you firstly, sir, for updating the investor presentation, especially the smart meter part of the story. We have been given more information, just to add to it, sir, if going ahead, even for the Jal Jeevan part, which has been a sticky issue, I think so now resolution on the way, if you could further give us the understanding pertaining to the questions that are being asked, that will also suffice lot of questions in terms of the legacy part, the execution, receivables, the new addition, then the execution of the same. That would give us some more understanding how we are moving ahead, firstly. So sir, firstly, do you have the breakup, sir, currently for the Jal Jeevan?
What is the legacy portion that is left to be executed and the new orders intake that we have done?
Yeah. I think it's very good to hear from you that we have improved our presentation on smart meters. Jal Jeevan is like a standalone project. Once the projects are getting executed, it will be over. The legacy issue is what the Jal Jeevan we were facing, I think they are coming to an end. If you ask me, the legacy part of the Jal Jeevan, if you see that, it is INR 3,200 crore is the balance which is there available in the legacy Jal Jeevan projects, which we are expecting to substantially complete by March 2027. The current projects is about INR 2,128 crore, where we are making good progress and the payments are also progressively coming now.
Okay. For the Ken-Betwa part, sir, what is our pie of the order?
Can you just repeat the question, please?
Yes, sir. It is pertaining to the Ken-Betwa River Linking Project. What is our pie in the total share of the project?
Share of the project pie.
No, I don't know what is the pie of our project, the whole value of the Ken-Betwa project.
Yes, it's a big project, I think, some few billion dollars. How much are we?
It is not readily available. We'll come back to you.
Mr. Kapoor, I think Ken-Betwa, we are the first ones to bag the first ever project that was awarded for the Ken-Betwa part.
Okay.
You know?
What is the value? Anyway, we can take it offline also. Now, sir, for the financial question, firstly, sir, investment property under construction, this value of INR 108 crore, what does it signify? Going ahead, how will this number shape up? Secondly, sir, if you could explain to us, what is the nature of unbilled revenue and how it impacts our finances? The numbers which we report, I think so in the presentation also about March, then June, and then September. Its significance and how is this going to trend? These two questions, sir.
This INR 107 crore investment relates to a project in Hyderabad. We have invested in that project, and the project is in midway. It was stopped, and the developer is in a little problem. There was an issue with the RERA also. RERA has canceled the project or kept the project on hold. We are also taking up with RERA along with other people who are there in the project. We expect that this problem will get resolved over a period of time. We are not very sure that how much time it will take, because it is a judicial matter before the NCLT. That is the reason we are not sure that how much time it will take. Definitely, the amount of investment is completely secured. There is no problem in recoverability of this investment.
Second one is on the Ken-Betwa. You were asking what is the value of the contract. It was INR 3,389 crore, which is the value per the NCC to be executed. You are asking unbilled revenue. Unbilled revenue as per the standard Ind AS 115, what we need to do is that whatever money we have spent and we have completed our obligation and not billed because of the certification, that amount whatever is there need to be recognized in unbilled revenue. That is the reason unbilled revenue will come into the place and it will be added as a contract revenue for us.
Okay. Lastly, sir, what is this other financial liability of INR 8,163 crore, which goes into the consolidated accounts under the current liability?
That is the financial asset of the smart meters. Because smart meters is a HAM project, it has to be accounted under the financial liability. Whatever that money is there, that is accounted under the other financial liabilities. Financial liability. Yeah.
Entire part of 8,000 is attributable to the same?
No.
Can you give a number to it?
Yes.
Lastly to the CWIP also, sir. I joined the queue after this that our current work in progress closing balance is INR 92 crore. What do we attribute this amount to? For the second half, what is the capex that we have outlined?
Second half capex is overall capex is INR 500 crore and INR 253 crore we have already spent in the first half. Probably the balance INR 250 crore we will be spending in the second half.
Right, sir. On this 8,000 breakup, sir, can you provide how much is attributable to the smart meter?
One second. We are just getting back. Can we give you offline?
I will take it offline. Sir, for this quarter, our subcontractor work bills have gone up, if we take the number on June. How are these numbers comparable? Also on the finance cost, that is also moving inching up on an every quarter basis. So what should we look at this number as a run rate or a percentage of sales, sir, going ahead?
The percentage will be around 9.21 finance cost.
Thank you. Mr. Kapoor, we request you to rejoin the queue.
Yeah, we will keep this in ready and when you come back, we will come tell you.
The next question is from Parvez Qazi from Nuvama Group. Please go ahead.
Hi, sir. Thanks for taking my follow-up question. You mentioned we received 17, 20 crore payment. Was that only for JJM projects or does that relate to the overall payment that you received?
That is JJM. That is JJM projects only.
This was the amount for Q2 or H1?
H1 .
H1. Sure, sir. Thanks and all the best.
Thank you.
Thank you very much. We will have to take that as the last question. I would now like to hand the conference over to the management team for closing comments.
Thank you very much for a very enthusiastic participation and your continued interest in the company. Thank you very much and happy Diwali. Thank you.
Thank you so much and wish you happy Diwali. Thank you.
Thank you very much. With that, we conclude today's conference. Thank you for joining us, ladies and gentlemen. You may now disconnect the lines.