Q1 23/24

Aug 8, 2023

Good morning, ladies and gentlemen. I am Telshia, moderator for the conference call. Welcome to ITD Cementation Q1 FY24 earnings conference call. As a reminder, all participants will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need any assistance during the conference call, please signal an operator by pressing star and then zero on your touchtone telephone. Please note this conference is recorded. I would now like to hand over the floor to Mr. Bharat Jain from ICICI Securities Limited. Thank you, and over to you, sir. Thank you. Good morning, everyone. On behalf of ICICI Securities, I welcome you all to the Q1 FY24 earnings call of ITD Cementation India Limited. Today, we are pleased to host the senior management of the company, which is represented by Mr. Jayanta Basu, Managing Director, and Mr. Prasad Patwardhan, CFO of the company. I will now hand over the call to Mr. Patwardhan for his comments. Thank you, and over to you, sir. Thank you. Good morning, everyone, and thank you for joining us for this Q1 FY24 earnings call. Before I begin the discussion, I would like to mention that during this call, there could be some forward-looking statements which will be subject to a number of risks and uncertainties, and the actual results going forward could differ from these statements. So I would request you to bear that in mind. Let me touch upon our financial performance during this quarter ending June 2023. We have seen a very robust, healthy performance during the quarter on the back of a strong order backlog. We have reported the highest-ever quarterly income of INR 1,800 crores as against INR 1,098 crores a year ago, which represents a growth of about 67% on a Y-o-Y basis. EBITDA for the quarter stood at INR 174 crores as against INR 100 crores a year back, a growth of about 73%, and PAT for the quarter was about INR 52 crores as against INR 30 crores a year back. Our balance sheet is in good shape with net debt to equity of just around 0.5 times. These are my initial comments, and I will take your questions going forward. But before that, let me hand over to our MD, Mr. Basu, for his initial comments on the operations of the company. Thank you, Prasad, and good morning, all of you. Thank you for joining this con call. Mr. Jayanta Basu will explain our operational performance for the last quarter. As you have seen, our revenue has scaled up to INR 1,800 crores, which was around INR 1,000 crore a year back. It is a big jump, and we hope that we will be able to maintain the similar tempo going forward. The operations mostly contributed by few big jobs like Chennai Metro. Both the contract has done well last quarter. Bangalore Metro has also contributed significantly. The most contribution has come from Ganga Expressway we are executing at U.P. Most of the revenue has come from there. Otherwise, in Marine, IOCL at Ennore Port has done well. BMCT, JV contract at JNPT. Then Udangudi as usual has done well, and Vizhinjam breakwater. These are the main contributors for the last quarter revenue and the bottom line. About the visibility and the prospects, we have got around INR 18,500 crore work in hand. I also must add here that there are 2 big contracts where we are LOI and expected that the LOI will be at least by this month, and we will be able to receive the LOI, and put together will be around INR 5,500 crores, both the job together. There are a few more jobs under pipeline, under tender, and in various stages of prequalification or tender. That is all from my side, and we will be happy to answer your questions. Please go ahead. Thank you. Thank you, sir. Ladies and gentlemen, we will now begin the question and answer session. If you have a question, please press star and 1 on your telephone keypad and wait for your turn to ask the question. If you would like to withdraw your request, you may do so by pressing star and 1 again. I repeat, ladies and gentlemen, if you have any question, please press star and 1 on your telephone keypad. First question comes from Balshank Basna from Sunidhi Securities. Please go ahead. Congratulations for a good set of numbers. Sir, my first question pertains to if we see the last couple of quarters as per your guidance, the execution has been pretty strong, and that is expected to pick up even going forward. But in terms of margins, we are yet to see the 10% kind of margin that perhaps you are guiding us maybe should be possible in foreseeable future. Considering the execution pickup and the legacy orders are behind us, when do we expect that we go towards double-digit margins? Since now our hands are full with a lot of orders and we are getting more and more selective in terms of choosing orders, can we expect that the new orders that you are envisaging, where you are relevant, the margin profile is far better than what we are having in our hands currently. So some guidance on these margins for the existing orders and the forthcoming orders would be really great, sir, if you could guide us in that sense. Well, this is Jayanta Basu. I will tell you this long-term issue. For sure that the new tender, new bid will definitely be to the better margin than what it used to be before, considering our work in hand and considering the opportunities we have. So that effect will come not now, maybe after 1 and a half years. But immediately, as we have mentioned before, that from latter part of this year, maybe from third and fourth quarter, we will definitely see improvement in the margin as we have discussed, double-digit sort of things. And in fact, in this quarter also, margin is close to 9.4%, 9.5%. So there is a little bit of improvement in that as well. That is what I can say at this point. So you have to wait for another one quarter or two quarters to get the desired margin numbers. Okay. And sir, my second question pertains to the visibility, because earlier in the last calls you guided that we will be doing close to INR 6,000 crore kind of revenue. But considering the superb execution in this quarter, can we expect now the earlier guidance of INR 6,000 crore sort of revenue in FY 2024 can be revised a little bit upwards? I know that the second quarter, the second monsoons are pretty havoc in different parts of the country. So how are work order impacted in Q2, if in any sense that you are seeing right now? And any guidance on this division of the INR 6,000 crore kind of execution that you guided us earlier in the last quarter. So that will be helpful. Thank you, sir. Well, INR 6,000 crore definitely is achievable, and if not more than that, close to INR 7,000 crore or even that will be possible, because we do not have any job which is being any issue. We should go ahead, except coming two, three months of monsoon. So you can expect the numbers we have projected before, and even slightly more than that. Okay, great, sir. Thank you. I will come back in the queue, sir. Thank you. Thank you. Next question comes from Rajesh Kumaratti from Right Shopping Private Limited. Please go ahead. Yeah, thanks for the opportunity. My question again is on the margin front. What I noticed is that we are doing NP, net profit margin of less than 3%, whereas the competitors or same people in the field, though there is no direct linkage. Like NCC has guided for 5% net profit margin. HG Infra, they are doing the same Ganga Expressway, they have 9% plus net profit margin. We have this quarter at least done substantially the Ganga Expressway, which is, I think, I would presume should be around 30%-35% of the turnover, but still the margin is 9.5%. Where are we going wrong? I would like to understand more on this. Okay. You have referred about HG Infra and NCC, and I agree that their margin HG Infra is way above than anybody else. NCC also 4% plus 5%. I also like to mention that there are other companies of our nature, like if you can mention their margin, I would have happy to know the margin, what they are doing. 3% margin, what we have seen today, that is based on some of our legacy projects, some of our old jobs, and some of the jobs which we have not able to recognize the margin. As I say, it will improve gradually. Definitely, we are monitoring the margins of other companies, as you have mentioned. We are not going wrong anywhere. Ganga Expressway has contributed whatever contribution has to come from there. I don't see that much of issue on that. We have to wait a bit for another one or two quarters to get better margin. Just to add further to what Mr. Basu said. Some of the companies that you mentioned just now, other than ITD Cementation, they are having projects which are slightly different nature, like a BOT or a HAM project. There, accordingly, margin profile will also be different. We are in the pure EPC space. Strictly our numbers and the EBITDA margins, et cetera, may not be comparable with some of the other companies that you mentioned. No, of course, it is not directly comparable. Especially given that HG Infra has done substantially the Ganga Express project and we are doing the same, that is why it's a bit of a concern. I just hope management will look deeply into that so that the profile improves. Because we are almost at the peak of the infra cycle, around that at least. At this time, if we don't improve our margins, I am worried about what happens after two, three years. Well, one was that. Second was the tax percentage. Again, this time it's high at 33.5% around. Last time we discussed that, and I had a question on that, and I think the management guided that it should be around 25%, 26%. What is missing here? No, nothing is missing. Firstly, your point regarding the margins is noted, and we have taken action to see an improvement in the margins. As Mr. Basu mentioned, we hope to see an improvement in the margins in the later part of this year. Coming to your question on the tax provisioning, we are doing one elevated metro project in Bangalore where we have taken a provision of about INR 29 crores in this quarter. That does not impact our tax provision. So the tax provision is on the PBT plus the loss that we have taken on Bangalore Metro. That works out to about 25%. Optically, the tax provisioning seems to be higher, but that is because of this one-time loss that we have taken on the Bangalore Metro project. So again, in this quarter, you have taken that provision, right? That Bangalore Metro loss provision, you have done in this quarter again? That is correct. Because last quarter, similar thing, I think. That is correct. Okay. Have we done away with that Bangalore loss thing, or will it recur again in next quarter onwards? No. I can say that most of the provisions have been done. In fact, this provision of 27 or 28 crore also, we have a very prudent approach. We are more or less sure that it will come, but we have kept a provision for that, and we do not expect any further provision or loss to be made in this contract. Yeah, that could be important because for the last two quarters we have been listening to this. Of course, yeah, everything is not in your hand, but okay. My third question, the last question is about the orders, because the last five, six months, we hardly have any orders that we have received. That Bangladesh order, L1 position for three, four months, we have not received the orders yet. What is the position on the ground? Are we seeing less ordering, or it is to do with our higher quotation or higher bids? Both of them. As I have mentioned, that Bangladesh order, the Prime Minister has already signed the MOU last week, and we are expecting order. Even it can come today. Okay. Furthermore, big marine job in the East Coast of India, close to INR 4,000 crore order also expected any time. Had it been in last quarter, you can imagine that our order book by this time would have been INR 5,000 crore plus. I see. That is the- What is the state of this Chennai Metro, the bids that we had submitted? Chennai Metro, I think altogether, five bids we have submitted. Yeah. Two bids, we are very close to L1. There is hardly any difference, but still we are not L1. Other three bids, we are not so keen, so our price is little high. As far as we are concerned, we have lost all the five bids in Chennai Metro. Oh, that's bad news. Okay. Thank you. Not that, let me clarify that Chennai Metro already were executing INR 4,000 crores of job. Right. Two jobs, what we expected, it was close to our existing job, but other jobs we don't regret because it is better not to put all the eggs in one basket. We have lost a lesser bid than others. Yeah. That is true. Okay. Thank you. Thank you for the opportunity once again. Thank you. I request the participants to stick with two questions in the initial round and join back the queue for more questions. Next question comes from Pratik Kothari from Unique PMS. Please go ahead. Hi. Good morning, sir, and thank you. Sir, one question on the competition. We did speak about one given update is full year base choosing in terms of acquiring new projects. We do hear this commentary across multiple infra players. Are you seeing a change in terms of the discipline or in terms of pricing when it comes to bidding for a new project? I couldn't get your question. If you can repeat it, please. Sure. My question is on the competition part. Are we seeing a change in terms of the pricing discipline amongst our peers when it comes to bidding for a project, the number of players who participate in each tender? Well, it is very dynamic, because once upon a time, you had only 5 to 10 bidders for road project, now it is 5 to 25 bidders. In elevated metro, it was only 3, 4, now it is 15. Underground also now it has. It will continue like that. But today, one thing which I must mention, that the jobs are quite big in terms of the value. INR 2,000, INR 3,000, INR 4,000 crore, in that range. So there lies the opportunity for the players like us who get qualified. So that gives us some advantages. As because the opportunities are more, definitely the contractors must be quoting at a better margin than what it used to be before. Correct. So just to tie that up, if the number of bidders for each tender is significantly higher, we did mention that now we are bidding at something which gives us higher margins, and we will see those changes say one, two years out. How does that work out then? Well, see, today, for the last few years, we have not participated in any NHAI tenders. Last one or two years, we have hardly participated in elevated metro. But at the same time, our revenue is going up, our work in hand is going up. That means every time we have to find the ways and means how to strategize our bidding, go abroad, getting overseas job, getting big-ticket job, which used to be not our cup of tea because we are not qualified. It is a dynamic situation, as I say, that will remain, and we have to think about that. But I do not see any issue because there are opportunities elsewhere where the competition is less. We are confident that there should not be much problem with the competition. Where would that be? Where the competition is less and where we would bring in some technical capability of our own? There are a few areas, like first of all, marine. Correct. Those jobs like breakwater, dredging, and reclamations. You do not get many of the competitor to get qualified. I think we are there very much placed. Second is project export by the government of India, like many countries, like Maldives, Mauritius, Bangladesh, Sri Lanka, some of the African country, funded by government of India, where only Indian vendors are allowed. So there lies a big opportunity for us, and some big-ticket metro jobs underground where many people cannot get qualified. So these are the opportunity we have now. Correct. Sir, what would be our big pipeline currently? Big pipeline, L1, I mentioned around INR 5,500 crore, which is we are waiting for the order. In addition to that, maybe we are pursuing around INR 15,000, INR 17,000 crore of job altogether. Some are in tender stage, some are in the prequalification. So around that. Correct. Of this INR 5,500 crore L1, you said INR 4,000 crore is some port project in East of India. Yes, you are right. Correct. Okay. Sure. Thank you, sir, and all the best. Thank you. Thank you. Next question comes from Siddharth Shah from MK Ventures. Please go ahead. Yeah, sir. Congratulations on great set of numbers, and especially very impressed with the execution ramp-up last few quarters. Sir, most of my questions have been answered. Just to check again on this Bangalore Metro. Sir, the number which you provided is INR 28 crores, right? Yes, that's correct. Okay. Sir, can you just explain a bit on in terms of, I think last time you had said that most of the packages have been handed over. So what is the situation right now, and any possibility of any further provisioning at that last moment when you close the accounts with them for this project? As far as provisioning is concerned, you can expect there is nothing pending. All are done. We do not expect any further provisioning in this contract. That is number one. Number two, as I mentioned last time, three contract, now all the four contract work has been completed and handed over. What we are waiting for now, two things. One is our pre-final and final bill to get certified, which is a little bit lengthy process, because these jobs are there for last five years, six years. Lot many reconciliations and things like that. Then winding up of the site and selling of some of the excess resources, assets. Those things are going on. The provisioning part, I can confirm there is no further. Okay, sir. That is very encouraging to hear. The second question is on overall revenue and margin guidance. If you can just reiterate that again, because I think last quarter itself, you had said something like INR 7,000 crore is possible. Post that, these L1 positions, if they translate, are you in a position to also give a revised guidance for this year, next year or something like that? I have mentioned that it will be of course INR 6,000 crore plus. It may cross INR 7,000 as well in terms of top line. Okay. In terms of margins, sir, because if we adjust for this one-time provisioning, which is the last provision, we are already at double-digit margin. Can we expect, going forward, double-digit margins? Margin first two quarter, Q1 and Q2, will remain below double digit, because next quarter also monsoon, it will affect there. But last two quarter, we hope to improve close to double digit or even double digit. So it is like that, touch and go, finally. Okay, understood, sir. With this, I think most of my questions have been answered. Thank you, and all the best, sir. Thank you. Thank you. Next question comes from Dhananjay Mishra from Sunidhi Securities. Please go ahead. Hello. Hello. You said this Bangalore elevated had a negative impact of INR 29 crore on EBITDA. What was the revenue contribution in this quarter? This pre-final bill and pre-final bill certification evaluating, what will be that amount in terms of revenue? In terms of revenue contribution, there was hardly any contribution this quarter because, as Mr. Basu mentioned earlier, three projects have been handed over, and the fourth project also has been recently handed over. There was no contribution or negligible contribution to the top line. What was the other question you asked? The pre-final and final bill, what will be that amount? That is on the certification. We have to jot down all the four projects together. I think in terms of certification part, it will be around INR 50 crore, INR 60 crore put together. Around that number. It will not be much. There will be no negative impact on EBITDA? No. Okay. If you also give what is the overall CapEx plan for this year, and how much we have already invested till first quarter. In Q1, we have invested about INR 90 crores in acquiring construction plant and equipment. For the whole year, we expect it to be somewhere in between INR 150 and INR 200 crores. INR 150, INR 200 crore. That's correct. Okay. What is gross debt level as of now? Gross debt is about INR 790 crores. INR 790. Okay. Secondly, in terms of pipeline, even after losing this Chennai job, we are saying that we are having 150 to 170 billion prospects, right? Yes. In bid pipeline. Okay. Yeah, that's it from my side. Thank you. Thank you. Thank you. Next question comes from A.M. Lodha from Sanmati Consultants. Please go ahead. Good morning, sir. Am I audible, sir? Yes, please. Sir, congratulations for very good set of numbers and very good execution by the company even in the first quarter. My best wishes to the company and its team for the bright future ahead. Sir, I am sorry, I joined just now, a bit late, and my question may be a repetitive nature. I have got only two questions, sir. One is order intake, because this quarter they have got something INR 250 crore order. This is a very negligible order. Therefore, our credit order book has come down to INR 18,000 crore plus. Can you repeat please, sir, the bids and the company likely to get the order by the end of the FY 2024? This order, what we have secured in first quarter is very less, but at the same time, there are two jobs. We are L1, and we are expecting orders anytime. When I say anytime, means even today also. Put together, it will be around INR 5,500 crore. Okay, sir. Thank you. If you add that Yes, sir. Carry on, sir. Carry on, sir. Hello? Full year, as I mentioned, around 17,000-18,000 crore jobs are in pipeline. If you go by simple statistics, if your success rate is 20%, then another 3,000-4,000 crore job you may secure, just by going by the statistics. End of the year all together, it should be around 8,000-9,000 crore plus this year. Okay, sir. My second and last question, sir, regarding dividend payout, sir. We have paid this year at 0.75% dividend, and because earlier we were not having that much of the working, so we have not asked anything for the good dividend. Now this year, company again has given very considerably dividend, 0.75% dividend. You see, you are paying the royalty to the promoter on the sales turnover of the company. Suppose company is getting INR 8,000 crore turnover in current year, then INR 40 crore you will be paying the royalty to the promoter. Besides, in addition to that, promoter's holding, promoter will be getting the dividend. Then why this is the raw deal with the minority shareholder, sir? Your question is- Why company is not giving the good dividend to the other shareholder also? Yes, your question is well noted, and we will definitely take it up. Yes, sir. Convey our grievances to the board. Yes. We were the shareholders when the company was not earning. Company was in the writing of the bread days in earlier years. Company was not having the good order book position, not having the good order book, the execution. Now company everything, good orders, good execution, quality of order, margins order. Still the company is making a raw deal with the minority shareholder. It is not good, sir. You convey our grievances to the board, sir. Thank you very much, sir. Thank you. Next question comes from Venkat Subramaniam, from Organic Capital. Please go ahead. Hi. Thanks for taking my question. Congratulations on excellent execution. I had a couple of observations. In spite of substantially improved execution, why is not there flow through below the line? We still have 3% kind of PAT margins at about INR 1,800 crore kind of execution, while we had something similar even at something like about INR 1,050 to INR 1,100 kind of execution, which is a little surprising. Are there some limiting factors here? Are they one-offs? Well, PAT margin 3% in Indian scenario, I will say it is not so bad. Because if you see historically also, the company, those who are working in our type of business, I can name them, like Tata Projects or Afcons. You can see the number- Mr. Basu, for every name you give at lower margins, there are at least a couple of names where margins are more than about 5%-6%. Yes, yes. My question is a little- Let me finish. Please, sir. There are a few other companies, those who are doing better margin as well, we know that. At this point, we have addressed in a few minutes back. You have to be a little bit of patience because we are just coming out of few legacy jobs, as you may be knowing. Things are improving, and we can promise that it will improve further going forward. Certainly, Mr. Basu, my question was a little more. It is just actually mathematical in terms of a question. Yeah. You cannot possibly have the same 3% PAT margin when you have INR 1,800 crore execution, as you have at INR 1,100 crore execution. There has to be a much better absorption of your fixed cost, right? It is quite surprising. Yeah, I agree with you. But this time we have kept some provision for Bangalore Metro as well, which is around INR 28 crore. So that has dulled the margin little bit. Right. One and a half percent. Okay. The second question is actually on that. We have heard quite a few times that a lot of provisions that we are making for Bangalore Metro are conservative in nature, which probably then means that you are expecting to recover. If you recall a few past calls, I think one can think of almost about INR 75 crore to INR 100 crore. So is that recoverable? Do you have realistic chances of recovering? Well, let me be very clear on this. Today, whatever provision we should do, we have already done that. We have done more than that. Because we are more or less confident whatever provision we have done in this month also was not required. That is one part. That means there will be no further negative in this job going forward. There are huge amount of extra items we are pursuing with the client, and some of them are really genuine, some of them are little bit here and there. But those things take time, and so we have to wait until the arbitration process is over. But definitely- I understand. Something will come out from there. Yeah. Wonderful, sir. All the best. Thanks. I am done. Thanks. Thank you. Next question comes from Nirvana Lahab from Nirav Capital. Please go ahead. Hi, sir. Thanks for the opportunity. These provisions that you do in every quarter, is it included in other expenses in the financial report? Yeah, that is correct. It is included in other expenses in the standalone financials. Right. Sir, can we request you to call this out separately, if that is possible? Because it gives us a lot of clarity because a lot of infra companies do not do this kind of provisioning. We appreciate the fact that you are actually taking these calls, but we would also like to have some clarity on this. If you can add a line item just to show it separately. No, I am sorry, we will not be able to do that because this is a format which had been communicated to all the listed companies, and we need to strictly go by that format for reporting our quarterly results. But you would appreciate that we have been transparent in our communication with all investors, and we have been sharing the facts with the investors on our con calls regularly. Right. If possible, sir, please add it in the presentation. I leave it to you. My next question is on, from the annual report, I saw that there was a INR 38 crore increase in credit-impaired receivables. Yeah. This has to do with which projects, and are we provisioned against these? No, this is not against any particular project. This is largely, it is an expected credit loss provision that we need to do based on Okay our past historical track record. It is not specific to any particular project. Okay. I think we have written off some receivables in FY 2023. Can you tell us the quantum? I do not have that with me right now. Maybe we can share that number with you offline. Should I write to your investor relation? Yes, you can do that. Okay. On contingent liabilities, our contingent liabilities have gone up from INR 150 crore last year to around INR 300 crore this year, which is around 25% of net worth, and all of these are to do with taxes. While the annual report says that you do not expect cash outflows, the number is so big that it forces me to ask this question. What is your view here? Are we expecting nothing to go out from here, and how is it? We are tackling this matter with our tax consultants, and the opinion is, we do not expect any liability to arise from these tax litigations. It is a matter of process. There will be filing an appeal and taking it through the process of adjudication. Once the matter is resolved, we expect the outcome to be in our favor. Right. Because I think you have not provisioned anything against it, and going by your conservatism that you usually show, the expectation is that you do not need to provide for anything, right? The fact that we have not provided is based on our view that we do not expect any liability to arise out of these tax litigations. Okay. One final question on the ITD-ITD Cem JV losses. There was a 65 crore loss last year booked under this JV. Can you please tell us which projects are causing these major losses in this JV? This is the same project, elevated Bangalore Metro project. Bangalore Metro. Okay. Would it be possible, sir, in your presentation, you have several JVs. It would be really nice for investors to understand which JV is undertaking which project. If you can call that out in the presentation, that would help us much more in correlating the subsidiary numbers with what you comment on projects, because otherwise it is a black box for us. I think it is already there in our presentation, but let me check. If I am not mistaken, it is already there in one of the slides of our presentation. JV-wise, which projects are being executed, you mean? Yes, that's right. Maybe you can look to the presentation again. Okay, sir. I will check. I couldn't find it, but maybe I am mistaken. Okay, sir. Thank you. I'll return to the queue. And congrats on a great quarter. I hope the operating leverage starts playing out from quarter 3. Thank you. Thank you. Thank you. Next question comes from Vishal Periwal from IDBI Capital. Please go ahead. Yes, sir. Thanks a lot, sir, for the opportunity. One clarification. In our order book, the international exposure is only towards Sri Lanka, which is roughly 4% in the order book. Is that fair understanding? That's right. Presently it is only for Sri Lanka. Yeah. We are L1 on one project, which is in Bangladesh. So whenever we get that order, maybe this month, it will increase our international exposure to two countries now, Bangladesh and Sri Lanka. Okay. That is the Bangladesh order that is currently in the part of L1, which you mentioned, 5,000 order. That is correct. Okay. And sir, I think a fair, decent pipeline and again, L1 that will be our in couple of orders. In terms of client-wise, can you just give a perspective, the new bids that is coming and where the L1, if you can just share. Is it coming from government or PSU or private? Just to get a sense on which side the CapEx is happening. Are you asking about the L1 project? Maybe for bid pipeline, where exactly the bid pipeline is coming from. Basically, is it coming from the government or PSU or private in this bid pipeline? These L1 two projects, both are government. One is for the Indian Navy and another is for the Bangladesh government. The bid pipeline is a mix of that. Marine, it is mostly from the multinationals like PSA International or DP World, A.P. Moller - Maersk. That. For metro, of course, it is government. So you can say around 50% government, 30% from the PSU, and 20% from the multinationals. Okay. Sir, I think probably in the last, I will say six months, maybe 12 months, are you getting a sense that after this government CapEx pickup, which has been there for quite some time, any positivity that you are seeing even on the private side, anything that you can share? Private sector. Public and- See- Yes, sir. The business what we are in, underground metro, airport, and marine. These are the three areas. Marine, of course, is a mix of private sector, and there are, as I mentioned, the Port of Singapore's and DP World, they are there. Otherwise, metro and airport, this is mostly from the government. Even some port also from the government. So this investment from the Adani Group is coming down a little bit, which used to be very high once upon a time. So we have to really see how it is going. But international, the investment, what is happening, that is from the Government of India. That is surging now. That is a good part of our story. Okay. Even in terms of sector-wise, we are in multiple sectors. Is it fair to say, probably the bid pipeline that is there is similar to what our order book is or any particular tilt is happening and sector-wise, you are getting more? Are you seeing more opportunity? I mean, the actual bid can be a bit different, whether you get or not. But at least the tilt is happening towards one particular sector vis-à-vis others. Can you highlight anything on that front, sir? There are three particular sectors where we are focusing on. We have got the bids on pipeline. One is your, of course, marine. There are three or four jobs we are pursuing now, even more than that. Underground metro and few mining jobs. Mining means hydel projects, where it involves some tunneling and rock excavation, but big jobs. These are the three areas we are pursuing now, based on the pipeline. Okay. From complexity of the work, is it like the bid that we are getting, it is towards that? It is not a plain vanilla road construction or standard building. So the complexity is there in terms of new build. Can we fairly say that? Yes. All these jobs having technical challenges, it requires expertise. It is a marine, it is underground metro and hydel projects. Otherwise, there are plenty of road job opportunity which we do not pursue. Even elevated metro also we do not pursue where there are many players nowadays. Okay, sure, sir. And maybe last thing from my side, I think our executions are pretty healthy and that is getting reflected in numbers. But, sir, on cash flow front also, can you just touch upon, maybe a working capital to say, or will it be fair to say that maybe on a similar trajectory or anything, any color that you can provide that will help us? Well, the working capital has been pretty stable in terms of number of days as well. We have not seen any significant rise in the working capital number of days. It continues to be under 100 days. The net working capital today is under 100 days. I think that is how it has been for quite some time now. In spite of the growth in our order book, we have not seen significant increase in the working capital days. Okay. That is all from my side, and thank you very much, sir. Thank you. Thank you. Next question comes from Poonjun Shah from Congruence Advisors. Please go ahead. Yeah. Hi, sir. My first question would be, if you look at the marine specific, so we were at a trajectory of INR 4,000, INR 4,500. Now currently we are looking at the trajectory view. Are the order book, we are specifically looking for the profitable, like highly profitable order to bid or like we are looking like the marine has been going slow in comparison to other projects. Marine, actually, what happened, marine, the jobs, the completion times are quite fast. The moment you get job, within 2 years' time, you are able to complete the job. There are various factors behind that, because you get the front immediately, you can start the work. Yeah. The work in hand, whatever you see in marine, that gets depleted very fast. Okay. And the Sri Lankan port, which we got the order, have we started the executing the project, and is it started flowing revenue? Is it contributing to revenue in Q1? Yes. Very much started. If you know that the pile foundation, we have started in 2 out of 4 fronts, 2 fronts already started. So work is on schedule, and we have started the job very much. Okay. My last question would be on the specific. As we have stated, are we eyeing the order book size of around INR 25,000, right? With the order prospect and order pipeline, including all the things, winning order and visibility what we have currently. Would the order book be around INR 25,000? Yes. Not talking about the executing it. It is like the including of all the things. Sorry, can you please repeat the question? Yeah. As we have stated that we have that INR 5,500 crores of order book- Yes. Plus the INR 5,500 is the prospect order book, which we have been planning to get, plus INR 16,000-INR 17,000, which is in the order pipeline. We add that one and considering that 20% of the winning order. That would be around INR 3,000 odd stuff. If we consider that, it would be around INR 8,000. Currently we have visibility, like we have the order book pipeline of INR 18,000. Would it be fair to say that it could be around INR 25,000 order book at the year-end? Well, it will depend on the execution of the orders. Yeah and the timing when we get the new orders in. We expect new order wins in this year to be in the range of INR 8,000-9,000 crore. You can work out the order book. It should be in the range of- Yeah yeah, somewhere in that range. Okay. Got it. Thank you so much, sir. Thank you. Thank you. Next question comes from Vignesh Iyer from Sequent Investments. Please go ahead. Congratulations, sir, on amazing execution that you have done in Quarter 1. My question is on the Ganga Expressway project. Just want to understand what percentage of the total project has been already executed, and what is the total value of the project that still is part of the order book. Total value of the job is INR 4,850 crore. Out of that, till last quarter, that is June. Sorry, July. I must say July. There around INR 700 crore order work has been already done till now. What is the timeline for executing this project, specific project, Ganga Expressway? Another 2 years from now. So 2025, April, May, we have to complete. Okay. Another 2 years. Right. Sir, also, the L1 project that we have. We are sitting in L1 for the project in Bangladesh. What is the margin profile for these international orders? I mean, compared to, say, your Indian domestic orders, I mean. Is it any different? Actually, it's a bit of mix of margin and the risk. Normally when we go international, we analyze the risk factor of that country. So margin may remain same, but we have provided more provision in the risk. If those risk doesn't happen, or if it is less, then that will add to the margin. It is like that. Sorry, I didn't get it. Sorry. If you could just- Well, there are two components on top of the cost. One is your margin, another is the provision for the risk. When we go internationally, there are certain unknown factors. Normally you provide more cost towards the risk. If it happens that the risk is less, then that converted to the margin. That is to be seen. Right. Okay. But for a project like this in Bangladesh, say the commodity prices goes up, is it a pass-on completely, or it is more like we have to take it on our books? No, this is in our account. Mostly it is only one item that is still. We have already spoken to the vendors internationally. We have fixed our contract with them. But yes, if the prices go up, that is in our account, to our account. Okay. Got it. And sir, just one final question. Just to understand for Quarter 2, is there any major impact due to heavy rains in certain part of the countries to our project in any way? Or would we see a similar run rate or a bit less than what we saw in Quarter 1? Quarter 2 normally, it will be little slow because even in Mumbai also, we are executing at least three jobs, but the progress will be less. Kerala and some of the north of India, in West Bengal and Sikkim. It is normal affair in every monsoon time. We will find little bit of less of progress in this quarter, Quarter 2. Okay, sir. That is all from my side. All the best, sir. Thank you. Thank you. Next question comes from Deepak Poddar, from Safal Capital. Please go ahead. Hello. Hello. Yes, Deepak, go ahead. Yeah. Thank you very much, sir, for the opportunity. First up, I just wanted to understand now this Bangalore Metro provision was around INR 29 crores, right, which you did, this quarter? Yes. So ideally, you said that most of it has been done, and it will not reoccur, right? So that effectively means that 1.5%-2% on EBITDA margin, that can have a positive impact. That's correct. That's correct. And when you're saying that we are looking for a margins of double digit, so that includes your associates and other income, right? Yes, that's correct. Okay. But ideally, when this one-and-a-half to 2% comes, so ideally, we are already at 9.5% including your other income and associates. So ideally, when this provision is not there, your EBITDA margin can be much higher than double digits, right? Maybe what, 11%, 11.5%. In fact, that is what we have said, that we would hope to see an improvement in our margins from Q3 or Q4 onwards, because this Q2 will also be impacted to some extent by the monsoons. So we expect to see an improvement in the margins from Q3 or Q4. Understood. And in terms of execution, any comments that you can make on FY 2025? I mean, next year, what sort of execution we might be looking at? I don't think we would like to comment on FY 2025 at this stage. Maybe when we are closer to ending FY 2024, then we'll have more clarity and be able to comment on the performance in FY 2025. Okay. Understood. In general, INR 18,500 crores of order book that we have as of now, what would be the execution timeline of that particular order? It would be ideally around close to three years. Three years. Okay. Understood. Yes, that's it from my side, sir. All the very best. Thank you so much. Thank you. Next question comes from Mehul Mehta, from Nuvama Wealth. Please go ahead. Good morning, team. Am I audible? Yes, please, go ahead. Good morning. Yeah. This is with reference to INR 29 crore of loss provision for Bangalore Metro project, which you have mentioned. During Quarter 1 FY 2023, there were any provisioning in case of any other project? No, I don't think there was any provision in Q1 FY 2022. If I look at operating profit without including JV profits and other income, it's amounting to INR 162 crores, and that is flat profit margin. If we take out this INR 129 crores loss, 8.8%. Is that correct? Yes. Okay. I don't have the exact worksheet in front of me, but we'll go by what you are saying. No, I work based on that. Yeah. Thanks for your reply. Thank you. I'm done. Thank you. The last question for the day comes from Nikhil Abhyankar from ICICI Securities. Please go ahead. Thank you, sir. Thanks for the opportunity, and congrats on a very good set of numbers. My question, you have mentioned earlier that we will be looking at NHAI orders going forward as well after a bit of a hiatus. What is the pipeline does NHAI have for, say, next year? How much order inflow are we targeting from NHAI? I do not think we have mentioned that we will be targeting NHAI, and it is not in our radar at all. We do not have any idea. We can, of course, we can go through the detail, but at this moment, we do not have any idea about NHAI prospect next year. We are not even looking at NHAI tenders? No. At this moment, no. Sir, if I may understand the rationale. Because we are taking up EPC projects for Ganga Expressway, then why not NHAI EPC or say HAM, whatever? Yeah, but the nature of work technically is same. Both are road construction, but the conditions are totally different. Ganga Expressway, we have got 150 kilometer of industry site where we can just hit the ground and run. But in NHAI, based on our past experience, very difficult to get site on time, and there are lot many other issues. We want to go slow on that part. Okay, sir. Understood. Thank you a lot. That's all from my side, and all the best. Thank you. Thank you. Thank you. Now I hand over the floor to management for closing comments. Thank you very much, everybody, for joining us on this Q1 FY24 earning call. We really appreciate your questions and the opportunity to explain our position to everyone. Look forward to interacting with you again next quarter. Thank you. Thank you, sir. Ladies and gentlemen, this concludes the conference for today. Thank you for your participation and for using Chorus Call Conference Call Service. You may disconnect your lines now. Thank you, and have a good day.