Ladies and gentlemen, good day, and welcome to Ahluwalia Contracts Limited Q1 FY21 Earnings Conference Call, hosted by Asian Markets Securities Private Limited. As a reminder, all participant lines will be in 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 your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Amber Singhania from Asian Markets Securities. Thank you, and over to you, sir.
Thank you, Steve. Good evening, everyone. On behalf of Asian Markets Securities, I welcome you all for Q1 FY 2021 earnings conference call for Ahluwalia Contracts Limited. We have with us today Mr. Shobhit Uppal, Deputy Managing Director, Mr. Vikas Ahluwalia, Whole Time Director, Mr. Satbeer Singh, CFO, and Mr. Rohit Patni from Investor Relations, representing the company. I now request Mr. Uppal to take us through the quarterly results and overall business output, and then we can start with the question and answer session. Over to you, sir.
Good evening, everybody. Thank you, Amber. Ahluwalia Contracts (India) Limited has announced the financial results for Q1 FY 2021. During this quarter, FY 2021, the company has achieved a turnover of INR 249.85 crores and a PAT of INR 7.48 crores, in comparison to a turnover of INR 404.42 crores and a PAT of INR 24.12 crores in Q1 FY 2020. EPS of the company for Q1 FY 2021 is 1.12, as compared to INR 3.6 in Q1 of FY 2020. During Q1 FY 2021, the company's EBITDA margin is 7.42%, as compared to 11.78%, and a PAT margin of 2.99%, as compared to 5.97% in the corresponding period of the last year.
Company has secured new orders in this quarter to the tune of INR 290 crore. Net order book of the company as on 30th June was INR 7,262 crore, and as on date, it is INR 7,452 crore. We are open for questions now. 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 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 a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Mohit Kumar from IDFC Securities. Please go ahead.
Yes. Good evening, sir, and congratulations.
Good evening, Mohit.
Yeah. Congratulations on good set of revenue numbers. My first question is, given the COVID situation and given the, you know, flip-flop happening across the country in terms of lockdown to the lockdown and unlockdown, is there, what kind of, you know, run rate we are looking at the entire, in a sense, for us, for Q2 FY 2020? And how do you think it will pan out in the next six to nine months? And what is the kind of labor availability you are, you know, witnessing? Are you facing any difficulty in getting the getting the labor, and that's why that may hamper the execution?
Just to answer, I'll start with your last question first, because our productivity depends on labor. Yes, there are issues with labor, as all of us know. It has started going up. We had when we did the last call, I think we were at about 15%-20%. Now, we are up to about 40%. But yes, the continuous flip-flop and the way corona is raging in states like Bihar and Bengal, from where most of the labor comes, you know, makes the next quarter tough. What I foresee that the pain that we are facing in terms of getting adequate labor will continue over the next three to four months also.
Coming back to the guidance or projections, as I had maintained in my last con call, we are not in a position to give any projections. The situation is changing, continuously evolving, so we are not in a position to give any projections. All that I'd like to say is that, you know, we have done better than what we had felt in the first quarter. I think we've done better than most of our peers also. That is due to the fact that our team on the ground has been at the forefront, and they've done a very good job in terms of not letting COVID spread on our work sites. You know, the protocols that the company has established have been successful by and large. So, which is yielding results in terms of our total revenue generated.
This will continue to increase, but, you know, I'm not in a position to give any sort of guidance for the next quarter at least. Have I answered all your questions?
Yes, sir. Understood, sir. So one more question I may ask you, sir. Has there been collection of receivables in this quarter? Have you seen any payment, people making payment, government especially making payments?
Yeah, yeah, payments have been coming in, but obviously the effect has been there in terms of—you know, there has been a slowdown there also. But again, it's better than what we expected. But going forward in the next quarter, again, let me qualify that statement. You know, states like Bihar and Bengal, we are already seeing a constriction as far as fund flow is concerned, because the state governments there are cash strapped. But our hope is that as the situation has improved in Delhi and Maharashtra, maybe in a month or a couple of months, the situation there will also improve, but it all depends on how well the incidence of COVID is controlled there.
Understood. Thank you, sir, and all the best.
Thanks.
Thank you. The next question is from the line of Nitin Arora from Axis Mutual Fund. Please go ahead.
Hi, sir. Good evening.
Good evening, Nitin.
Sir, as you always guide us on a say rightly on to how to look at things on a macro side as well as on the ground level. So I understand you said, you know, things are getting volatile in terms of especially states like Bihar and, and West Bengal, but is it more to do with the—when you say the next quarter, you know, looks tough also with respect to execution? But if you look at directionally on a blended level, do you still see a chance where execution stops completely?
Is this what you're guiding, or you're guiding it that, look, there are cases, but still 50%, 60% of the executions will- we will be able to do it, because three, four months, we'll be able to gauge now how to really work it around on your sites and all. So just need your thoughts on that, and-
Yeah.
Okay, so-
Nitin, as I mentioned last time around, that the first six months of this financial year will be tough.
Right.
You know, that is what is happening. But the first quarter, I think, if I may say so, we've done better than our own expectations. Second quarter, the situation will improve further. That's what my feeling is.
Wow!
Work will not stop anywhere. Even now, Bihar, Bengal, you know, the state government has not stopped any construction activity. We are allowed to carry on work with labor, which is present at site. So, I don't foresee work stopping anywhere. But yes, the fund flow is getting constricted because these state governments are using whatever funds they have for COVID-related activities, right? Their first concern is that. We saw that in Delhi also. We saw that in Maharashtra also. So it's a cycle. You know, Delhi seems to have flattened the curve. My personal feeling is that Bihar and Bengal will also do that, but it will take a month to two months. So that is why, due to fund constriction, there may be...
There will be, not maybe, there will be an impact on our productivity in these two states. But I don't see work stopping anywhere.
Got it. That's very helpful, sir. Sir, with respect to the receivables, as you said, the funds are getting strapped and as rightly, you know, you stated the reason. But generally for us, how has been Q1 in terms of working capital? And also when we look at July and August, we are almost half of August now. Has there been slowdown in payments or largely the working capital has remained largely the same, with a plus, minus here and there?
No, we are seeing a slowdown now, especially in these two states.
Okay. But does that... So what's the working capital right now? I mean, as far as Q1 is concerned, in terms of number of days, or if you can highlight on the receivables and debt numbers, the gross debt and the net debt.
So there is, as, as things stand, I said, so there is an improvement, but August, as I said, overall, pan-India, it's, it's all right. There is an improvement. But we see—we are seeing, Bengal is affected badly.
Okay, got it. I'll take the numbers offline. Sir, lastly, on the new project, which was the Central Vista, and we saw three large players getting qualified to bid for it. Can you elaborate a little bit, what's really happening on the ground level there, when we do see bidding and all? Just your last take on that. Thank you very much.
So, we had stayed away from that project. At some stage, I'd mentioned to some of you that it's a, it's a project which is going to see a lot of political interference. So... And it would have taken a lot in terms of bidding for that job, also in terms of effort. So we took a conscious call not to bid for it, because we did not want to get embroiled in projects like, say, Shapoorji got embroiled in ITPO, so on and so forth, and NCC got affected by, the projects in Amravati. So it was a conscious call. That's why we have we've not really followed on what's happening on the ground on that project. I will not be able to comment.
I got your point. I got your point. Thank you very much, sir. Thank you.
Thank you. The next question is from the line of Varun Ginodia from Ambit Capital. Please go ahead.
Hello?
Yeah.
Yeah, good evening, sir, and congratulations on the set of results.
Mr. Varun-
Thank you, Varun.
Can you close the line, please?
Yeah. It's Varun Ginodia, sir. So my question is on the revenue side, okay? So as you had highlighted, the labor availability in 1Q was very low... But despite that, you managed to show good execution in this quarter. So is there any one-off in this or any revenue you booked from previous quarter, or this entire revenue is something which is work, work done in 1Q and booked in 1Q?
No one-off. It's all work done in Q1.
So despite labor availability constraint, which was only like about 20%-30%, you still managed-
Yeah.
-to show, you know, roughly about like 40%-50% execution.
Yes.
There is no one-off in this one. Okay. Second question is: Is there any impairment in this quarter as well as you've seen in previous four quarters, or this is a clean quarter without any impairments?
Yeah, if by impairment you mean write-offs, yes, there are write-offs, yes.
Can you tell me, tell us the amount, what is for this quarter?
The amount is about INR 5.5 crore.
Are we done with these, or do you still expect them to accrue in coming?
There, there will be. As I had mentioned last time around, the first two quarters of this year will see further cleaning up of the balance sheet.
Maybe another quarter, there will be-
Yes.
-a number.
Yes.
Just my last question, other income, that has seen a sharp jump in this quarter, any reason behind that? It has gone from like, INR 3 crore-INR 7 crore. So what is behind that?
That is around INR 3.5 crore. That has been written back of liability written back.
Liabilities written back. Okay.
We've finalized some bills with some clients. Our final billing has been done, and based on our final billing, we finalized liabilities of some of our vendors and subcontractors. So based on that, there is a write back of about INR 3 crore.
Okay. Okay, okay. Thank you so much, sir. Thank you so much.
Yeah.
Thank you. The next question is from the line of Shravan Shah from Dolat Capital. Please go ahead.
Yeah, thank you, and congrats on good set of numbers.
Thanks, Shravan. Thank you.
Yeah. Yeah, first, so just wanted a clarification. Actually, last time we said we are expecting EBITDA loss, and, we are positive. I, I, we are happy that, we, we posted a good results, but just wanted to understand at the same time, even the previous, question was also last time we mentioned that our, our execution is linked to the, labor availability, and we were having 20%-25%. But in terms of the execution, we are at 60%. Now we are saying labor is 40%, and still we are saying, there is a, issue at the execution of Bihar, West Bengal, whatever.
So I'm not able to understand in terms of what as a management we are trying to say, because whatever we are trying to guide either on the positive or negative, it is, it is, it is significantly differing. So just trying to understand the where we are as a investor we are looking.
Shravan, you know us. As management, we are always conservative in our guidance, right? That is what we are being now. Secondly, the management, when COVID hit, the management took certain cost-cutting measures. As a result of those cost-cutting measures, you know, we could ensure that the company remained in profit in this quarter, in spite of so many headwinds, primarily on account of labor and less productivity on site. Even to increase the productivity on site, the management took certain measures. Some works were done off-site also, primarily on projects such as the precursor to the Central Vista that we're doing in Delhi. A lot of work is being done in factories, which we have taken at four locations off-site, where structural steel is being manufactured.
So a number of these steps, which I would not like to elaborate at this point in time, we took, and the result is that, or what we are seeing is that our results are better than what we had expected. There is no conflict in what we are saying for the future also. I'm being very plain. There is. I'm calling it as I see it. There is problem on the ground in Bihar and Bengal. All of us read about it in the newspapers or see it on television. So COVID, COVID is raging there. Now, whether it... You know, we saw it in Delhi and Maharashtra, that it took about a month, month and a half, two months to flatten the curve. I'm expecting that is the same that will happen in these states also.
That is why I'm saying after about two months, situation will get better. But these two months, we will see a bit of pain, especially in terms of cash flow in these states, which is bound to affect our productivity. That is all that I am saying. If there is still further clarification which is required, please ask.
Yeah. And, sir, in terms of the, just for more clarification, that Central Vista, when we say we stay away, does that mean that, going forward also we will not bid for the any of the properties?
No, it doesn't mean that. We will evaluate the situation at that point in time. We stayed away today because the situation, overall situation is not good, right? It's a large project which is prone to political interference. As we have seen in ITPO, if the project does not move along smoothly, payments get held up, you know, a couple of months, the payment doesn't come in, it can upset the apple cart of our company.... right? More so when there is cash flow constriction on other projects also. That's why. When the second project comes, we will evaluate the situation on the ground. I'm not saying we will not win.
Do you expect a kind of relaxation in terms of the conditions? Because the criteria was INR 30 crore+ monthly execution in any project, and that may be the constraint for us. Many of the companies are not eligible to bid for the financial level. So do you think that going forward in the coming packages, there will be a relaxation on that front?
I can't comment on that. All that I can say is we are not very hungry at this point in time to be desperate to either get the criteria to follow up with the department to change the criteria or... So we will take it as it comes.
Okay. Sir, lastly, on balance sheet, some numbers are inventory, debtors, gross debt, and also at the same time, order book breakup.
Sure. This is, inventory is around INR 206 crores.
Yeah, go ahead, sir.
And unbilled revenue, WIP, we have INR 158 crores. And debtor in, in absolute term, non-current assets and current assets, INR 696 crores. And borrowing is INR 43.89 crores.
Creditors, sir?
Creditors. Sorry, sir, INR 500 crore.
INR 500 crore. And, mobilization advance and retention money?
Retention money is INR 165 crores, and mobilization is INR 226 crores.
And cash?
Cash is INR 175 crore.
Order book break-up, sir?
Right. Hello?
Hi, sir.
This is order booking, that's commercial, 7%, hospital, 48%, infrastructure, 5.76%, institutional, 25%, and residential, 13%.
Okay. Thank you, sir.
Thank you.
The next question is from the line of Vibhor Singhal from Phillip Capital. Please go ahead.
Good evening, sir. Thanks for taking my question, and congrats on great execution on this quarter.
Thanks, Vibhor.
Sure, sir. Just two questions from my side. As we stand at this point of time, sir, in the middle of August, would you be able to give us a broad number as to what level of our execution capacity are we working on? Like, are we working at 60%, 70%, or 80%? And also, at this point of time, what would be the overall company-wide labor availability for us? I know it's going to vary from site to site, state to state, as you mentioned, but overall, at the company level, would you be able to give us a number on the execution level going on and the labor availability?
About 45%. We are operating at about 45%.
Okay.
If you want the labor availability in terms of number, it should be-
40%
Sorry, come again. Number?
Percentage would be good.
Yeah, percentage is also similar. It's about 40%-45%.
40%-45%. Given that, we are still seeing migration of labor coming back and not 100% of labor coming back, by your assessment, by when do you think we could reach 100% execution level, given that monsoon is also there?
As I said, this quarter is, the quarter that we are in now, we continue to struggle. We may, in this quarter, by the end of, end of this quarter, we may have achieved about 60%. Beyond that, you know, as I said, it really depends on how we are in Bengal pan out.
Sure, sir, I think that's still quite volatile, so completely understandable. Also, sir, on the margin front, I think we had a very solid performance in this quarter, despite the revenue decline.
Yeah.
So would you be able to elaborate a little bit on as to what were the, what were some of the cost-saving measures that we did, and how will... and what amount of them is actually permanent in nature? So, I mean, there would be some practices which probably we will be able to carry forward also in coming quarters, even when we get back to full execution. So some of the practices that might have helped you save the margin?
So broadly, you know, we were extremely nimble-footed in terms of cutting our staff costs. So, you know, our staff also cooperated. We reduced salaries. We also sent a few people on leave. Now, as the work is picking up, we're getting all those people back. We have given back a certain portion of the salaries that we cut, in the sense that if there was an X percentage, half of that we've reinstated or re- not reimbursed, but reinstated. So I'm not saying that whatever cuts we made were permanent in nature. Obviously, our goal is that before we end the year, you know, our salaries are back to normal and our staffing is back to normal.
But as I said, there are certain measures we've taken to do some work off-site, get certain members which are used in construction in lockdown conditions to the site. So some of these practices that we've started, we aim to continue with them. That would lead to a greater efficiency as it has been shown in this quarter.
Sure, sir. That's really reassuring. Thank you so much for taking my questions, and I wish you all the best.
Thank you.
Thank you. The next question is from the line of Ashish Shah from Centrum Broking. Please go ahead.
Yeah, thank you. Sir, I just wanted to, you know, basically, just had one question. Just wanted to touch upon the status of some of our major projects. You did mention that West Bengal and, you know, Bihar continue to be a problem, and that's where some of our, larger projects also are. So, can we, can we just talk about, you know, briefly in terms of our AIIMS project, for example, the hospital projects in Bihar, the two hospital projects, and, you know, the auditorium project in West Bengal, the Gardanibagh, Mohammedpur.
So as I mentioned, all these projects, work is happening on the ground. You specifically asked about, say, AIIMS in Kalyani. So today, we have about 1,000 people on the ground there working, right? So that project is fine. In fact, it's centrally funded, so even funding there doesn't seem to be a problem. As far as the auditorium project is concerned, you know, between a month and a half ago or two months ago, we had 50 people on site. Today, we have 600 people on site. So work has ramped up, has been ramped up considerably. Gardanibagh, also, we have broken ground on the site. Work has started. You know, next to that, there is a Parivahan Parisar. There, in fact, we are nearly out of the foundations there.
So, labor in these two states is not that much of a problem because labor is local there. What is a problem, especially in Bengal, and will be a problem for the next couple of months, is the cash flows, especially in projects funded by the state.
auditorium project is funded by the state?
By the state, yeah.
That's-
So what we are doing?
Just, just to throw light for all of you, is on such projects, what we are doing is it's like a tightrope walk. We are trying to keep our expenses low. We are trying to spend low or less, sorry, on further procurement. We are trying to make sure that inventories are utilized fully, or we do just-in-time procurement. The supply chains are all right in these two states. We don't see a problem on the supply chains. So, we're just trying to maximize or get maximum returns on every penny that we spend.
Right. And some of the other projects, like, you know, Jammu, I know it's a relatively newer project, but where are we in terms of starting that project? The Central Vista also, where are we in terms of the project? And as well as the two, you know, projects in Pune, the private sector projects. So again, how they have shaped up over the last quarter, and what do you think about them in the quarters to come? That's all. Thank you.
In the order that you asked about the project, Jammu, you know, through the lockdown, the designing was happening for that project. We have, we are now in a position... We've set up our site infrastructure. We are ready to go there. But again, Jammu also lately, there have been incidents, of corona, some corona cases. So, you know, entry into the state is restricted. While we have some labor on the ground, but, you know, that, this is a bit of an impediment, which we feel, should now, ease out over the next 10 to 15 days. So, in a nut-- you know, we are, we are ready to break ground there, which we should do by the end of this month.
As far as the Central Vista project is concerned, again, through the lockdown, we were designing. We got our secretary approval, and we broke ground, in end of June. We have already executed, work worth about, as on date, work worth about INR 45 crore there. So that project is well underway. As regards the - Which were the other two projects that you talked about? Sorry.
Private sector, the commercial-
Private sector, Pune, yes.
Yeah.
On the private sector, again, Pune, the epidemic is raging. But what we've set up, you know, quarantine facilities there, and we've set up, testing facilities there with the help of the client. And we have managed in the last month to ramp up the labor from virtually zero to about 300. So the work is happening there, and we think it will further improve. Our target is that we'll get in another 100 people there in the next 15-20 days.
Right. And the payment is okay in this? There is no problem in the payment there.
So, so far, yes, it's better than most. Let me put it that way. We don't really... You know, Brookfield has funded this project, so we don't foresee a problem in this project.
Okay. Sure. Thank you. Thank you very much.
...Thank you. The next question is from the line of Prem Khurana from Anand Rathi. Please go ahead.
Yeah, good evening. Thanks for taking my question. So two questions. So one was that, eventually, I mean, when I look at our numbers for this quarter, things are, net debt have gone up by almost around INR 65 crore. I mean, I, I'm assuming this would be eventually because you would have supported some of your clients in this quarter on the payments, and you would have continued with the construction activity, but the payments are yet to come to you. And you also spoke about this in your opening remarks, where you're seeing some delays.
But, do we have any number in mind in terms of, I mean, beyond which you would not want to extend the limit and receive in days, with due care and high ground, you go in slow, you don't, don't get to have your numbers in place, any, any, any thoughts on that, sir?
Yeah, Prem, I did mention that, you know, it's like a tightrope walk. So yes, we are trying to see, especially on some projects where the payment, especially in states like Bengal, where the payments we see are slowing down. So we are also slowing down, or not really going all out to invest in future procurement, and trying to maximize our productivity on the ground with the existing materials that we have. So yes, it's a situation which we are monitoring very, very carefully, and we are changing almost on a weekly basis our strategy. Because a lot of it also depends on what we are seeing or hearing from the client.
Okay. Okay. Any number in mind, essentially, in terms of what could be the debt at the end of the year from current number? And then eventually, when I look at the number, you gave us a number around INR 44 crore of gross, given cash was around INR 75.
At the moment, I don't think it would be prudent for me to comment. All that I'd like to say is that we are monitoring it very carefully, and we—I think I'm reasonably confident that we'll be able to keep it in check. More so because, you know, if you see 48% of our projects are healthcare projects, and those projects seem to be moving all right. So, the kind of order book that we have, we feel that we'll be able to keep our debt in check.
Sir, just one more from my side. So one word, so I mean, we will need to understand the government, wherever it is a government project, you've been given an extension around three to six odd months. Also, sir, I mean, the labor situation is still probably, if you're not going to get the labor in place, and I get to get by, I mean, in some time, but still it's a tricky situation where they are saying as to whether you will get to have that number in place or not. Given this, I mean, do you have any backup plan in place? I mean, so that, I mean, if it is 40%, 50% have labor, and it's only three to six months kind of extension, I seriously doubt it will be possible for you to then deliver these projects in time.
So any further extension, do you think it's bound to happen, no?
Three to six months, it's not that, you know, the government has come out with an advisory. Now, every project or every department or nodal agency will actually evaluate the impact which is there on the ground. And this EOT keeps quarter-on-quarter, the EOT, a fresh EOT is submitted. It's not that they've capped the delay that is to be given or sanctioned at six months.
All right. Okay. Okay. Sure.
Yeah.
Thank you.
Thank you.
Thank you. The next question is from the line of Parvez Akhtar from Edelweiss. Please go ahead.
Hi, good evening.
Hi, Parvez.
Congratulations for a good set of numbers. I mean, especially on the cost front, I think you've done really well this quarter.
Thanks, Parvez. Thank you.
Couple of questions from my side. One, what are your thoughts about bid pipeline in the future? I mean, we keep hearing about central government increasing its trust, especially on the healthcare side. So what are our thoughts towards that?
So Parvez, bid pipeline, the way the tenders are coming out, it's... I don't think COVID has impacted negatively tenders or the tendering activity as far as the industry is concerned, you know. But, having said that, this is a very tricky situation. While works projects are being announced by states as well as the center, I think one has to be very careful and not bid indiscriminately, because in the short term, cash flow will be an issue. So one has to pick up projects very diligently after doing one's due diligence. Am I clear?
Sure, sure, sir. And sir, just a couple of data-specific questions. Sir, if you could get the geography-wise and the client-wise breakup of order book.
Yes. The geographically, northern region is 51%, eastern region, 35%, west region is 12%, and south is 0.69%. And, government is 79.57%, and private is 20.43%.
Now, what was the CapEx that we did this quarter? I mean, did we do any-
INR 3 crores.
... Sure, sir. Thanks. That's it from my turn, and all the best.
Thanks.
Thank you.
Thank you.
A reminder to the participants, anyone who wishes to ask a question, may press star and one at this time. The next question is from the line of Varun Ginodia from Ambit Capital. Please go ahead.
Thank you so much, sir, for taking my question again.
Mr. Varun, can you speak closer to the handset, please?
Is it, is it better now?
Yes, sir.
Okay. Okay. So, sir, my question is, a few of your competitors, booked one-time expenses, related to getting labor back on site and few cost overruns that happened due to lockdown. Do your costs consist of any such one-off cost items in month view? Do you- did you see any such one-off costs?
It's not a one-off cost. This is, this is continuing. To get labor back, yes, we, every construction entity is incurring expense. You know, in some cases, we've even had to, we book plane tickets to get our labor on some sites. So this is a cost, and I think this will continue, well into the next quarter also, Q2, maybe Q3 also.
Any cost overruns that you booked, because of COVID-19? Any cost overruns into the expenses?
I don't understand, cost overruns. What I'm trying to say-
Because of that, whatever expenses are being incurred, we are recognizing that, and we are also simultaneously claiming with the client whatever that we are feeling that we are claimable.
No, no, no.
Okay.
No, no. Let me, let me clarify this. That's why I asked, what do you mean by cost overruns?
Absolutely.
COVID obviously has led to certain costs which were not envisaged earlier.
Yes.
The situation, we are keeping the client intimated as far as those costs are concerned.
Okay.
Clients have told us, no client has yet agreed to pay them. But the clients have said, "Let the situation normalize, we will sit down with you." Most of the clients are saying this at the moment. So that is-
Okay.
If that is what you mean by cost overruns.
Whether they will reverse or not in future quarters, the certainty is still to come because you have still not sat down with the client.
Yes. It's not certain, yes.
Yeah. They are there in this quarter and maybe there in next quarter as well, and as and when the claims get finalized, they might rise in future quarters.
Yes. But today, they are in our costs. We are, we are recognizing those costs, as of this time.
Is it possible to quantify that number? And it's okay-
Not immediately, no.
Okay.
We can maybe share it with you offline.
Okay, fine. Okay, thank you so much, sir.
Thank you.
Thank you. The next question is from the line of Avinash Chenna from Spark Capital. Please go ahead.
Thank you for taking my question, sir. First one is on... Sir, can you give us a statewise order book just to understand how much of exposure we have towards West Bengal, Bihar, as well as Delhi and other regions? So statewise order book, can you provide?
Satbeer, would you have that?
Sir, we have for the, that is, INR 2,587 crores, but we have to segregate that for Bihar and Kolkata.
I think Rohit has-
Rohit would have.
Rohit will give it. Yeah, Rohit, give it.
Yeah.
Be loudly, please.
Delhi is 21%, Haryana is 8%, Jammu is 17%, Jharkhand 1%, Maharashtra is 12%, West Bengal is 14%, UP is 3%, and Uttarakhand is 3%.
Okay. Sir, also just wanted... Sir, just to understand on the order inflow. Hello?
Yeah, yeah, I can hear you.
Yeah, yeah. So just, understanding from the order inflow, what is the total value pending under that Central Vista scheme? Or, what are the plans on this, 70-odd hospitals that were announced by Government of India across various states or the private sector bidding? Just what is the sense that we are, we can, look at for the next two quarters on the ordering?
I do not think there will be any new Central Vista project in the next two quarters.
That's my sense. I may be wrong. I think they will be busy getting the Parliament building off the ground.
Okay.
As far as the hospitals are concerned, over the next two quarters, the way I see it, big, small projects between center and state, it should be anywhere between INR 7,000 crore-INR 8,000 crore.
Okay. Okay, okay. Yeah, do we have any geographic constraints or we are okay to bid across this, like we are open for?
We have self-imposed constraints. We will only bid in the areas that we are present in. No new geographical locations to be opened.
Understood. Understood. Sir, what is the total CapEx requirement that we are looking at for FY 2021?
Pardon me, sir?
CapEx, CapEx, FY 2021.
CapEx? INR 3 crore.
No, no, no, no, no. INR 3 crores is the CapEx in this quarter. It will continue to remain muted. I don't think we will cross this number. So it will be, for the rest of the three quarters, it will be between INR 10 crores-INR 14 crores.
... That's it. Oh, okay. Okay, okay. Yeah. Sir, one last thing, for this first quarter of the revenue, can we understand, like, project-wise, like, which project was, like, contributed to this specific growth of top line? Broadly, if you can give, like, two, three projects.
We'll share those numbers with you offline. Rohit will come back to you. Yeah.
We will share the number of project-wise we can share.
Thank you. All good.
Thank you.
Thank you.
A reminder to the participants, anyone who wishes to ask a question, may press star and one at this time. The next question is from the line of Shravan Shah from Dolat Capital. Please go ahead.
Yeah, thank you for taking my question once again. Sir, because of the IND AS, we have restated last quarter, that is, 1Q FY 2020, revenue and EBITDA, and all the line items numbers, particularly revenue by INR 87 crore. So just trying to understand, so for 1Q FY 2020, it has increased, so but for the full year, it remains the same. So in the next remaining three quarters of FY 2020, how it has been reduced, is it possible to once again restate or release the 2Q, 3Q, and 4Q of FY 2020 P&L numbers?
That is basically, I think so whatever the increase and decrease in the unbilled revenue, that are being recognized. Increase in WIP, that are being recognized in the revenue. If there would be increase, that definitely it would increase revenue in absolute terms. So there would be decrease, then it would be reduction in the absolute revenue.
So, sir, I'm putting it differently. Next three quarters of FY 2020 last year, the revenue, whatever we have released last time, will it be the same or will it going to change?
This in last entire year, you have seen that around INR 42 crore impact would be there. Which means in the first quarter, we have booked INR 87 crore, which means decrease in last nine quarters, approximately INR 46 crore.
Sorry, sir, I still did not get.
I am telling you that last year, full year, you will see that INR 41 crore, impact of increase in WIP. Okay, INR 1,884 crores include INR 42 crore increase in WIP. And this quarter you have seen, you are telling that INR 404 crore, this includes around INR 80, INR 60, INR 70 crores approximately increase in WIP. Which means there would be nine -- last nine months, there would be decrease in WIP. Because entire year, INR 41 crore increase and INR 86 crore increase in this quarter, that it would mean nine months, last nine months, there is decrease of INR 46 crore, INR 45 crore.
Yeah.
The, the-
Uh, uh.
The financial year full revenue is INR 188 crore.
Yeah.
Last quarter, last year is INR 404 crore.
Yeah.
That means next nine months, total revenue is INR 1,480.
True. So in which quarter the revenue will be reduced compared to the whatever we have already published last time? So there will be a decline in revenue for the three quarters compared to whatever we have already published.
Next three quarters, you can't say right now. That depends upon the execution of the work. If there would be increase in WIP, then definitely it would contribute to-
Sir, I am asking for FY 2020 only, not FY 2021. FY 2020, INR 45 crore reduction.
That means total decrease in the next nine months is INR 20 crore decline.
Yes.
Because already total full year, the change in the WIP is INR 115 crore. Already adjustment, INR 80 crore here, and INR 25 crore in next nine months, so INR 25 crore revenue increase, then I, I have already shown the numbers.
Okay, okay. And, sir, on the staff cost of the first quarter number, definitely we have declined significantly. Just trying to understand from the when... As you say, by year-end, we will be reinstating all the salaries to the normal levels, but for next two quarters, can we assume the same run rate of INR 26 crore-INR 28 crore, salary cost, staff cost?
You know, this will increase a bit as the revenue also, turnover also increases. As I said, I see even in this quarter, the turnover will increase further.
Okay, okay, okay. Thank you, sir.
Thank you.
Thank you. The next question is from the line of Ashish Shah from Centrum Broking. Please go ahead.
Yeah. So we said that there is a INR 5.5 crore provision or a write-off impact in Q1. So on which project was this? And what is the quantum of such a possible provision which is remaining, which could come in the second quarter or so, which you said that it could be possible?
This is across quite a few projects where the bills have been paid. It's not one or two projects. This is seven or eight projects. Vijay is, I think, in the con call. Vijay, you want to take this question? Hey, I don't think he's there. So this is seven or eight projects where we felt that the monies were not likely to come in, so it's more, as of this thing, we're cleaning up our balance sheet. So we can share the list of those projects offline with you.
Right. So more importantly, you know, what, what I was asking also is that, what is the identified amount which you think is at risk, which could come maybe in Q2 or Q3, which we said, indicated that we could see one or two more quarters of such write-offs?
So, yeah-
What is the amount that we have in mind?
I think it should be about INR 12 crores-INR 15 crores over the next two quarters.
Okay. And that should be about it?
Yes.
Okay, okay. That's it from me. Thank you.
Thank you. A reminder to the participants, anyone who wishes to ask a question, may press star and one at this time. The next question is from the line of Amber Singhania from Asian Markets Securities. Please go ahead.
Hi, sir. Just a couple of questions from my side. One, as we have seen that, this quarter, due to various disruptions and labor issues have cropped in. On this light, couple of other players in the space are also looking towards a structural concrete maker or the structural steel maker as such, facilities outside the actual site. So are we also looking into similar kind of facilities or factories wherein we can make the structure outside and just bring in and fix it on the site? Because that is the way it looks like, the future of the industry in the longer term. So I just wanted to get your thoughts on that, from our perspective.
I did mention that, as an answer to an earlier question, that on the Central Vista project, we are already doing it across four locations. You know, we have identified factories where we've sent material and our skeleton for the buildings that we're doing for this Central Vista project is being manufactured across four locations. And if you would recollect, Amber, we had already invested in precast technology in our tie-up a few years ago with the Russian company. So pre-engineered and precast, this is this technology we are well versed with, and we aim to utilize this in the projects to come, especially, you know, more so now post-COVID, when the focus, as you rightly said, is going to be on off-site works. We are geared up for that.
Yeah, I remember, sir, because we were the early entrants in this tech kind of technology long back. I just wanted to understand how much more focused or more strengthening we are doing in this space. That's why I asked this question on that account.
In fact, pre-engineered, if you recollect, the Patna Convention Centre, it is that using 22,000 tons of structural steel. Couple of stadiums that we did during Commonwealth Games had extensive structural steel work. So we have the technology with us. We have the technical skills with us in terms of our staff. And precasting also, the projects like, say, for instance, Jammu, in our design work, we are using that technology. We're designing such a system that we use precast work or precast or pre-engineered components in that project.
Mm-hmm. Okay. Okay, sir. But sir, secondly, on the bid pipeline, as you mentioned, that Central Vista, as well as hospital project of INR 78,000 crore, can you also give some color about any other stream where we are seeing a good pipeline coming in, which looks attractive from our perspective? Because I believe there might be a lot of pipeline, but that it might not be very good in terms of payment structure and all. But from our perspective, any other area or projects you would like to highlight on the pipeline side, sir?
At this point, no. All I'd like to say is that, you know, this is a very tricky time for the construction industry. So we are extremely wary, and we are lucky that we have a healthy order book. So as I said earlier, we are not very hungry, and we are actually every bid that comes our way, we are, you know, both me, Vikas, we are we have a stringent due diligence process. In fact, we are letting go of some works, large works also, as a part after the due diligence is being done.
Okay. One more thing, sir, on the, on the execution side, you mentioned that around 45% is the average utilization or operating level we are having currently, whereas Bihar and West Bengal is having a severely impact on that part. So would it be fair to assume that Bihar and West Bengal projects would be operating roughly around 10%-20% of the total operation capacity?
Bihar, you know, has operated at the same level up till now.
Mm-hmm.
Bengal has been a little slow. Going forward, Bengal is something which concerns us. Bihar, I feel will continue to operate at this level. To put a number, what I'm saying is this 45% in rest of the country will go up. It will go up to about 60%. Bihar will continue to operate at the same level. Bengal would be slow.
Okay. Okay. And any reason?
That is because Bihar, you know, the center, the government at the center and Bihar, is the same, in the sense BJP is a coalition partner there.
Mm-hmm.
Bengal, the way we see it, I don't see center supporting them with funds. So that is why I see that over the next two months, Bengal would be sluggish.
... Okay, and given this situation, sir, do we see any increase in cost in these projects because of the delay which might happen, or it will be getting compensated by the respective client as such?
It's, it's too early to say. In the short term, yes, there will be an increase in cost.
Fine. And, and lastly, sir, just wanted your thoughts on Kota project. As, as a company and a management, what are we planning to do with this project? How are we seeing the medium to long-term outlook on this site?
So in Kota, we are invested, and we are doing very well. And I don't want to comment on the given the current pandemic and you know, because it's a social place. So we are going forward, and even now, even we've just opened, we are signing two new stores there in Kota. Things will take a while until the you know, situation gets better because Kota Mall is a commercial property and a social gathering place and whatever, so people are a little wary. But like last month, we have got a revenue of about close to a crore. Total ... Sorry, not revenue. The total sales in the mall has been close to INR 1 crore, which is not so bad, given the footfall has reduced tremendously.
But then that is also because most of the stores, they're also going online. They are operating the store, but they're selling online. So, going forward, we are going to... I mean, we are hoping things will get better.
Any plans to monetize the project in the near future, sir?
I can't comment on that one.
Okay. Thank you.
We are open to strategic alliances, but I can't say more.
Thank you. Thank you, and that's all from my side.
Thank you. As there are no further questions, I now hand the conference over to Mr. Amber Singhania for closing comments.
Thank you, Steven. On behalf of Asian Markets Securities, I would like to thank all the participants and the management for this call. A special thanks to the management for giving us the opportunity to host this call and share their views about the company and the outlook on the industry and the company. Thank you very much, everyone. Sir, would you like to add any closing remarks from your side?
No, that's fine. Just thank you so much, everybody, and God bless. Stay safe.
Thank you.
Thank you so much.
Ladies and gentlemen, on behalf of Asian Markets Securities, that concludes this conference. Thank you all for joining us, and you may now disconnect your lines.