Ladies and gentlemen, good day and welcome to the Q4 and FY25 Earnings Conference Call of KNR Constructions Limited. Please note that this conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as of the date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. I now hand the conference over to Mr. K. Venkatram Rao, General Manager, Finance and Accounts, KNR Constructions Limited. Thank you, and over to you, sir.
Good morning. Thank you for joining us today on the call to discuss the financial results for Q4 FY25. Along with me, I have K. Jalandhar Reddy, Executive Director and Strategic Growth Advisors, our Investor Relations Advisor. We have uploaded results and the investor presentation on the stock exchanges as well as on our company website. I hope everyone got an opportunity to go through it. We would like to touch upon a few key company updates and industry events after which we will have a question and answer session. The road infrastructure sector witnessed a slowdown in the previous financial year, but the last quarter shown promising signs of the recovery with improved project awarding and execution activity.
The positive momentum has been supported by key policy reforms from the Ministry of Road Transport and Highways, the enforcement of the fixed timeline for land acquisition, and statutory clearance including forest and wildlife approval, which is a much-needed step to expedite project execution and minimize delays. Additionally, the revised policy to impose additional performance security on aggressive projects encourages more responsible and financial sound bidding practices. These measures are designed to streamline execution, reduce cost overrun, and ensure timely delivery, which also addresses long-standing bottlenecks in the project approval process. One of the most ambitious initiatives by MoRTH is the plan to upgrade 25,000-30,000 kilometers of the two-lane highway into the four-lane corridor with an investment outlay of INR 8-10 lakhs per road. The large-scale transformation will significantly boost highway capacity, road safety, and regional connectivity.
These are expected to bring greater transparency, enhance quality assurance, and reduce execution delays. FY26 is poised to maintain robust momentum, with MoRTH targeting the construction of over 10,000 kilometers of the highways, prioritizing the modernization of existing infrastructure and improved connectivity across the northeast region. Furthermore, the planned rollout of 5,800 kilometers of high-speed corridor network is expected to significantly enhance national connectivity and drive economic growth. Finally, the convergence of the policy reforms and greater capital investment painted a highly promising picture for the sector. Now coming to the key updates of the company, the percentage of physical progress as of March 31, 2025, for the HAM project is as follows: Ramanattukara to Valanchery approximately 95%, Valanchery to Kappirikkad approximately 93%, Chittoor to Thatchur approximately 91%, Magadi to Somwarpet approximately 89%, and Marripudi to Somavarappadu approximately 37%.
As of March 31, 2025, the company has already invested INR 651 crores out of INR 990 crores revised equity requirements for all the HAM projects. The additional equity requirement of INR 339 crores to be in future INR 210 crores in FY26 and around INR 130 crores in FY27. You can refer to the slide number 26 of the investor presentation for detail on each HAM project. As for the share purchase agreement in October 2024, KNR Shareholdings and Investments Private Limited, which is a wholly-owned subsidiary of the company, has successfully completed the transfer of its entire shareholding to KNR Muzaffarpur Holdings Limited for consideration of INR 1 lakh. And further, the company KNR Constructions Limited had transferred its entire shareholding of 0.65% in KNR Muzaffarpur Holdings Limited for a consideration of INR 45,900.
Moving ahead, in April, the company secured appointed rates for both the project Mysuru to Kushalnagar package 4 and 5. In May, the company received a provisional completion certificate for Chittoor to Thatchur package 3, making its completion 40 days ahead of the schedule. The early delivery has made the company eligible for a bonus of INR 3.26 crores. On May 21, 2025, KNR Constructions Limited, along with its wholly-owned subsidiary KNR Ramanattukara Infra Private Limited, has received a so-called notice from the NHAI for a partial damage of an under-construction VUP in Kerala. This was caused due to some indeterminate subsoil condition and high water table. One of the approach ramps with RE walls of the VUP has yielded and caused excessive settlement.
As a result, the service road is slightly distorted, and all efforts are exercised to restrain the service road facilities on either side of the main carriageway. Further, we are still evaluating the financial impact of the event. Now coming to the order book position, as of March 31, 2025, the company's total order book is stood at INR 5,052 crores. This is divided at 51% in the HAM, 37% irrigation, 28% pipeline project, 21%, and other road project of 13%. The current order book will execute over a period of around one and a half to two years. With the government emphasis on the infrastructure development, we anticipate new order awards in the coming quarters, and we are aiming for order inflow of approximately at least INR 8 to 10,000 crores by the end of 2026.
Now let me make sure the Q4 and FY25 standalone financial performance first, followed by the consolidated financial highlights. I will start with quarterly highlights first. The revenue for the quarter stood at INR 851 crores. EBITDA for Q4 FY25 stood at INR 118 crores as compared to INR 214 crores in Q4 FY24. EBITDA margin in Q4 FY25 is at 13.8%. Net profit for the quarter was INR 25 crores as against INR 198 crores in Q4 FY24. Now coming to FY25 highlights. Revenue for FY25 stood at INR 3,359 crores. EBITDA for FY25 stood at INR 625 crores as compared to INR 701 crores in FY24. EBITDA margin in FY25 stood at 18.6%. Net profit for FY25 grown by 47% year-on-year to INR 726 crores as compared to INR 494 crores in FY24.
Now coming to consolidated financial performance, I will start with the quarterly highlights first. The company recorded a total revenue of INR 925 crores as compared to INR 1,414 crores. EBITDA came in INR 221 crores in Q4 FY25 to INR 375 crores in Q4 FY24. EBITDA margin in the current quarter is stood at 22.7%. The profit after tax is stood at INR 8 crores in Q4 FY25 due to consolidation adjustment on account of sale of shutdown subsidy companies. Moving on to FY25 highlights, the revenue for FY25 grew by 7% year-on-year to INR 4,753 crores. EBITDA for FY25 was INR 1,625 crores as compared to INR 1,048 crores in FY24, registering 65% growth. EBITDA margin for FY25 is stood at 34.2%. Net profit grew by 33% year-on-year to INR 1,002 crores. Now we will move to standalone balance sheet.
The company continues to maintain a strong balance sheet. The working capital rate is stood at 93 days compared to 89 days as of March 2024. The consolidated debt as of March 31, 2025, is INR 1,865 crores as compared to INR 1,258 crores as of March 31, 2024. The net debt to the equity on consolidated basis as of March 31, 2024, stands at 0.441 times as compared to 0.34 times as of March 2024. With this, we can open the floor for questions and answers.
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 touch-tone 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'll wait for a moment while the question queue assembles. The first question is from the line of Shravan Shah from Dolat Capital. Please go ahead.
No work, sir. Yeah. Thank you, sir. Sir, my couple of questions were entirely the questions pertaining to the order inflow and the revenue front. So I will try to break it as simple as possible. First, sir, in terms of unbilled revenue as of March, how much, sir?
As of March, it's 900 and.
Oh, okay.
It is INR 968 crores.
Yeah. So now if we remove this 968 from our order book, 5,052 crores, so roughly 4,085 crores order book comes. So first, out of this, how much we can execute in FY26? Then we'll come back.
Sir, that's why you will out of our what you said is correct. Out of INR 5,000, we remove around INR 4,000 chain order book is there. So definitely, with this order book, we can execute in this year between INR 2,500-INR 3,000 with the existing order book only. If we are receiving good projects in the maybe by end of third quarter or fourth quarter, if we receive right now, the execution may start end of third and fourth quarter, then we can look into. Otherwise, definitely, as already told our previous slide also, this 26 also will be the based on the. When we are receiving that revenue, based on that only, we can really predict. But based on existing order book, we can go up to INR 2,500-INR 3,000 crores.
Okay. So now coming to in terms of the order inflow and the bid pipeline, so if you can help us that what we are looking at INR 8,000-10,000 crores. So previously also we have mentioned in terms of MSRDC project where Patel Infra, we are looking at our subcontracting there. So if you can specify from NHAI, from state level, from this MSRDC, what kind of projects are we looking at and when can we expect to receive this INR 8,000-10,000 crores? And likely, in terms of the execution from this new order inflow, how much one can look at in the FY26?
Yeah. The money, actually, so that MSRDC one we speak about is that actually that cabinet approval is due for that. I think it is being recommended by all the other authorities, and finally, it is due for that. I think within a month, we should get the cabinet approval. After that, I think within a month, I think a couple of months, we shall get that LOA for that. That's what we are expecting, sir. So soon after we get that, that work may come into revenue after two and a half months from that issuance of that LOA because it's an EPC BOT project. It can be started as soon as possible from that.
And here the value would be INR 2,500 crores MSRDC?
Yes, sir, actually 2,400. Maybe some savvy margins and all, we should take out and consider it 2,200 kind of levels.
Okay. Okay. Go ahead, sir.
And apart from that, sir, we are also pursuing seriously in mining and the mining areas and all of that, sir. We have placed within NTPC, we have placed now we are planning in Singareni, we are planning in Western Coalfields, all. We have placed certain bids also there. The results are due and we shall get back with the details whenever we get all right. And the state government tenders also, we are focusing in a couple of months, certain tenders are likely to float down. I think in two or three months down the line, we shall have the considerable bids we are having in the hand, actually.
Okay. So sir, if you can specify the value in terms of this mining state level and NHAI, the total value that we are looking to bid in the next couple of months. And maybe even previously, we were looking at water also. So if you can MP Rajasthan, we were looking at.
So, sir, I was just going to say that overall total we are looking at almost INR 30,000-40,000 crores to NHAI bids. And state highways also were around INR 20,000-15,000 crores likely to come up in the coming two to three months time. And apart from that, mining, INR 2,000 crores, INR 5,000 crores in a tenor of, say, four years, three years, two years, five years also, there are tenors are different in that.
Okay. Okay. Got it. And lastly, sir, in terms of the margin, EBITDA margin, so this quarter, obviously, it has come down slightly. So normally, we used to target close to 15%-16% kind of a number. So now how one can look at the EBITDA margin?
I think actually around INR 13,000-14,000 crores too possible होना ही चाहिए, sir. इसमें maybe a little bit of lesser minus 1% we are expecting because that overhead will be higher and that turnover is lesser. So that may count a little bit problematic to us. That's why we are a little bit downgrading the expectations also. Because of disturbances coming to the back.
Is it fine, sir, now?
Yeah.
Yeah. Sir, lastly, sir, irrigation, when can we have received any money? When can we expect the money because this INR 1,200-INR 1,300 crores is pending? So how are we confident that we will be getting this money?
Irrigation, sir. Irrigation, we have even spoken to Minister last week, sir. They said a couple of months we shall solve this. That's what they are saying. We are hoping to solve that in this, sir. We are only pursuing. And in both cases, also, we would like to move, but the department said wait for one more month and then move it like that as it is likely to get to set down in one month time. So we have given it to the lawyer and they are ready to file it also. It's on the edge. The day we say yes, we will go on.
Okay, sir. Got it. Thank you and all the best.
Thank you very much. Thank you.
Thank you. The next question is from the line of Vaibhav Shah from JM Financial. Please go ahead.
Yeah. Sir, for irrigation water backlog, what would be the unbilled portion?
The unbilled will be around almost INR 500 crores, actually.
Sir, the last time also it was around INR 500 crores. So it is similar number?
Similar number, actually, because this quarter certification has happened in package three and some certificate in package four. So number is the same in.
Okay. So basically, out of INR 400 crores of order book of irrigation, we can expect an incremental revenue of INR 920 crores?
Yeah.
Around INR 900 crores?
Around 900, yeah.
Okay. So secondly, what would be our revenue guidance for FY26? So we mentioned that from current backlog, we can do INR 2,500-INR 3,000 crores. So what more can we do from maybe if we get this MSRDC order started and some few more orders as well?
Sir, MSRDC could start in coming three to four months time. Actually, two months will take for LOA only. After that, two months for our mobilization and then start on it. So it may take four months from now the revenues will start because most of it is on the SWARP side. So expecting maybe structures also will be going on parallelly. So I think around 400-500, 300-400, we can book on this year. Because it is coming the last quarter kind of time. So maybe now I think one quarter is almost over this year.
So entirely, what would be our guidance on an overall basis for FY26 in terms of revenue? Can it be flattish or some growth or we may see some decline?
Sir, guidance is definitely right now, which not what we told as existing order book, definitely we can do between 2,500-3,000, and based on when we are expecting this project, if I go on new orders based on this MSRDC or other projects, so based on only that, we can tell, so that's why once we receive the LOA of that project, after that, we can really give the correct guidelines to you.
Okay. So secondly, on the water pipeline order, so how do you see the execution moving in FY26? Can we do somewhere around 35%-40% in that project?
Yeah. We can expect. Yeah. Around 300-400 crores definitely we can target.
Okay. And sir, lastly, I wanted some order backlog numbers for a couple of projects. So what would be the backlog for Valanchery to Kappirikkad?
Valanchery to Kappirikkad is almost 90. It is 108 crores.
And for Ramanathapuram to Thoothukudi, Valanchery?
It is 98.
And for Chittoor Thatchur?
Chittoor-Thatchur is 122.
And lastly, for we have not done nothing in the new irrigation project, right? It is year two start. Two new ones we want.
So, two new ones we have appointed it only last month. And that one is Marripudi to Somvarappadu project. There is INR 385 crores backlog.
Sorry, sir. That we have given in the presentation. Yeah.
Yeah.
So what would be the rate for these two newly won projects, irrigation ones? And have you bid for any other projects you are expecting on the irrigation side in FY26?
Irrigation, we are bidding actually. There are some bids from Karnataka, very few bids are there. But Ahmedabad, there are few bids coming up. So maybe GENCO projects are also coming up. Then Bihar, there are projects in irrigation. And Madhya Pradesh also, there are projects in irrigation. So we are pursuing all these very closely. Rajasthan HAM irrigation is also there. There also we are pursuing. I think working in Rajasthan.
Sir, on the Amaravati development, so over there, are you seeing any opportunity? Have you bid for any projects?
Actually, sir, that I think upcoming bids we are now placing. We placed, but we didn't get it. But upcoming, we are now placing. I think there is a likely big bunch is likely to come up now.
Okay. Sir, lastly, on the show cause notice you received, so are we all both the subsidiary and the parent company both banned from bidding, right, for a month?
No, sir. Actually, that order would be very clear that it is concessionary part from bidding from NHAI.
So we as a parent company can bid for the projects?
Sir?
We as a parent company can bid for the NHAI projects now?
That's what our interpretation. And we are even telling the department like that.
Okay. Thank you, sir, for making the point.
They are not mentioned about parent company at all. In the show cause notice, they have asked why we should not take action against you like that.
Okay. Okay. Got it. Okay. Thank you, sir.
Thank you. Participants who wish to ask questions may press star and one. I repeat, to ask a question, you may press star and one. The next question is from the line of Nitin Dharmawat from Aurum Capital. Please go ahead.
Yeah. Thank you for the opportunity. Am I audible?
Yeah. Yeah. Correct. Okay, sir.
Yeah, sir. So sir, last quarter, our order book was 3,800 crores. And this quarter, the order book has gone to 5,000 crores. So it's an addition of around 1,100 crores. Can you please elaborate what projects got added over here and what is the visibility for these projects?
Actually, because what has happened, these two projects, we got the appointed date, actually, that package four and package five. That is almost INR 1,200 crores project, actually. And we got around INR 400 crores of the irrigation project. So that has also added in our order book. So with this, and in some other projects, we got HBCOS. So all put together, around INR 2,000 crores has been added, actually, in this year. So that's why it has come to last year 3,800. Now it has come to 5,200 crores.
Got it. And any more appointment dates which are pending now?
No, no, no, no. We have got all appointed dates for our existing projects.
Got it, sir. If I have any additional question, I will come back. Thank you.
Yeah. Thank you, sir.
Thank you. The next question is from the line of Saket Kapoor, from Kapoor & Company. Please go ahead.
Namaskar, sir. And thank you for the opportunity. Sir, when you have mentioned about the top line in the vicinity of 2,500-3,000, we are talking on a standalone basis or on the consolidated basis?
That is on a standalone basis.
Okay. So what would be the likely number on a consolidated basis?
Consolidated basis, maybe because now maybe you can say 400-500 extra will come that far.
Okay. So at the best case scenario, yes, sir, please. Hello?
Yes, sir. Carry on, sir.
Yeah, yeah. So at best case scenario, we will fall flat in the top line part as on last year's numbers when we compare it with the last year's numbers. So it was 3,359 last year. We are really closer to that at best, depending upon how the intake pipeline looks like going there. That should be the understanding.
Sir, that's why we told them based on our existing order book, we can extend to that extent between 2,500 to 30,000. But based on when we are expecting these projects, these projects will come actually, and they will start contributing from end of Q3 or Q4. So then we can target a little bit more. But that visibility we can get when we receive the LOA. So far, we have not received the LOA. That's why we could not really predict if there was some LOA and it's still overdue till next year. Then definitely this year we cannot receive. We will end between 2,500 to 3,000.
Okay. So secondly, on the irrigation part, I think so the Ken-Betwa project DPR is also there and some order has pending has happened. So have we participated in this out of the order book? Do we have any portion for execution for the Ken-Betwa project also?
Sir, we have not looked. But definitely, we want to participate. So far, we have not looked that interlinking of projects are coming. That is coming in southern part also. So we are definitely really looking forward to participate in the project which is backed by central government like that, like interlinking project. So we are looking actually that project.
Okay. And secondly, about the pipeline project.
Sorry to interrupt you, sir, but we request you to rejoin the queue for follow-up questions.
Just to confirm, ma'am, if you allow?
Yeah, yeah. Okay, okay, sir. Please, sir.
Sir, only point was that in the pipeline project, do we have exposure through the JJM scheme wherein our receivables or the execution phase has slowed down, if you could comment? And also last point was on the dividend payout ratio, sir. Being an investor, I would like to understand how do we conclude with a dividend payout of 0.25% per share on a consistent basis for the last four years? So these are the two of my concluding questions. I'll join them.
Sir, in respect of this pipeline project, definitely, this is backed by actually AMRUT scheme of the central government. And yes, central government will fund 25% and 75% with the state government. So we are not seeing there any delay also. So we have put the bill and we have received the money also. So there is no, as of now, we are not seeing any funding concern. So as far as dividend payout is there, definitely, because this is our and what is our practice is that actually whatever the accumulated results are there, definitely we want to inject our cash for our future expansion. Like that, we are getting some mining projects. And we are also looking for some BOT toll assets also, if we can participate.
So definitely, whatever the money, actually, we want to keep in the system, actually, to enhance our capability and do the diversification in the other sectors. So that's why we maintain the same dividend as of now. But future, definitely, based on company performance and future cash flow, we definitely look to consider that. Your point, sir.
Thank you, sir. I'll join the queue for my follow-up.
Yeah, yeah. Thank you.
Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants in the conference, please limit your questions to two per participant. The next question is from the line of Jainam Shah from ICICI Securities. Please go ahead.
Thank you for the opportunity. So the first question is, why did we have such lower margin in this quarter compared to previous quarter? And what kind of margins are we looking going forward?
Sir, the reduction I will detail is explained because basically now whatever our there is some disturbance.
Hello? No audible right now?
Mr. Jainam, there is a disturbance, background disturbance from your line. So we request you to self-mute if possible after your question.
Hello. Am I audible right now? Sir, I hope you got my question. Or should I repeat?
No, no, no. We understand there is some background disturbance out there that we are getting. If you kindly mute your line, then we can explain better. Yeah, it is okay. In respect of this reduction in that, that already we explained that the reason is being that now whatever our existing order book is there, so almost all projects, except for the new one, all projects is almost stagnant. Almost we have completed almost 90%-95% of that project. So if we are executing actually in that project, because projects will be in the last phase, then we could not be able to generate that much of revenue. Accordingly, expenditure will be a little higher. So that's why because due to this stagnation of the project, we could not be able to get the whatever the evidence we are adjusting.
But definitely, as always, we are telling that between 13%-14%, what is our guideline. Definitely we are there and we will achieve that. As far as future margin is concerned, so existing order book will give the same between 13%-14%. And when we are adding the new projects, actually, like in MSRDC or mining or other sectors, so definitely, and if we are getting some good irrigation projects, because irrigation projects have very better margin, so definitely in that case, it will be improved actually in the future.
Okay, sir. And sir, my second question is, what is the kind of bid pipeline which we are seeing for FY26? And what are the total order inflow which we are looking to add in our order book?
This year, we are targeting somewhere between INR 8,000-INR 10,000 crores we are targeting to add in our order book actually, and as the pipeline is there, already sir has explained actually for NHAI project, INR 30,000-INR 40,000 crores NHAI projects are there that we want to bid actually, and state government projects also there between INR 10,000-INR 15,000 crores are there, so there is plenty of orders are there definitely, but we have to bid and we have to get it because due to this aggressiveness, we are really seeing that how we can get these orders.
Okay, sir. And sir, given the fact that we have a small hello.
Sorry to interrupt you, but we request you to rejoin the queue for follow-up questions. Thank you.
Okay.
Thank you. The next question is from the line of Bhavin Modi from Anand Rathi Financial Services. Please go ahead.
Yeah. Hi, sir. Thanks for giving the opportunity. So first thing, I wanted to know the breakup of the revenue contribution. So how much is the road hybrid irrigation, EPC? So can you just help me with the percentage for the Q4?
Sir, Q4 actually that HAM is around 46%.
Okay.
Irrigation 19%.
Okay.
Road EPC 30%.
30.
Our backlog 30. Back-to-back is around 4%.
Yeah. So second thing, yeah, sir, since there has been like a negotiation and doing finalization going right for the monetization of the upcoming assets. So now I think the management must be clear with the tentative consideration that will be reserved in the timeline. So can you just help us with what is the consideration that we are looking for?
Sir, that's on the consideration aspect. We are just that the final discussion is going on. So right now, this isn't sure; we cannot help. So definitely, it is in the very advanced stage, actually. And almost all discussion has happened. And final one, two sittings is only required, actually, to do the final negotiation. So we expect that maybe by mid of July, actually, we should be able to conclude the transaction and sign the SPA.
Sir, third thing, as mentioned, now we are looking for the diversification of the order book. So, are you looking for any partnership or something like that for projects like example railways or airports or river interlinking projects? So, there are many opportunities coming there, and even in case of suppose if our focus is on road projects, so are we looking for some complex projects where there's a tunneling or elevator structures are involved? So, can you just help how the management is now looking to ramp up or diversify the order book?
Yes, sir. We are pursuing all the opportunities, sir. Actually, we have started JV with NCC for some set of projects, and there are some mining projects we have started with Sushee, and there's Harsha. Wherever we are not qualifying, sir, we have tunneling. Patel Engineering is ready with us to go with the joint ventures, so wherever the new sectors that we would like to, we have open floor for all that, because now the road sector is a bit heated up, so we would like to go with other sectors and recoup our order book, and then once the road sector becomes okay, then we would probably even go in the roads also. Kind of that which we are planning, so for which we are tunneling, we are open. We are open in the metros. We are open in the water projects in various cities.
We are open in irrigation projects. We are open in pump houses, powerhouse projects. All that we are pursuing, sir. Then recently, mining also, we are seriously pursuing the tenders. So hopefully, I think down the line, two, three months down the line, we shall have the orders in their hands. That's what we are expecting.
My end. So it's pleasing to hear that we.
Sorry to interrupt you, sir, but we request you to rejoin the queue for follow-up questions. Thank you. The next question is from the line of Mohit Bhandari from IIFL Capital. Please go ahead.
Hi, sir. Thank you. If you look at standalone balance sheets or receivables as well as other current assets or other financial assets have significantly expanded. So if there has been any reclassification or any reason why other current assets, other financial assets have expanded?
So basically, other financials, as the unbilled revenue was there, last year it was around INR 400. Last year, it was around INR 497 crores. And this year, it becomes to INR 968 crores. So basically, this is the reason that's why these other financial assets have gone up.
This is majority of irrigation.
Yeah, basically due to irrigation, and trade receivables have actually gone down from INR 1,364 crores to now it is INR 1,244 crores.
Okay. Okay, got it. And secondly, in terms of the projects which you are highlighting from NTPC, either Singareni or Western Coalfields or either the mining area, so whether we are looking in a sort whether we will be doing only EPC work, right, or any other arrangement basis?
These are the EPC work and MDO, like mine developer and operator. So these are.
EPC, kind of the operation projects and MDOs, both we are pursuing, sir, because wherever the margins are important, so we will focus to have margins only.
Okay. Okay. Got it, sir. Thank you.
Thank you. Participants, it is requested to restrict your questions to two per participant. The next question is from the line of Vasudev from Nuvama Wealth. Please go ahead.
Yeah. Thank you for the opportunity. So, sir, just circling back again on the Kerala project issue. So how long do you think this BAN can extend? Because there are a few media articles which say that the BAN is for one year. And even on our intimation to the stock exchanges, we have mentioned that it is one month or the conclusion of investigation whichever is later. So what is the exact extent we expect this BAN to be? And do you think this can extend to the parent company as well?
Actually, sir, the notice clearly says that 15 days notice is given for us to show cause, telling why we should not debar you for one year and then some small penalties there, 0.5% value. Okay? Then this actually, we have given confidence, we are very confident that we have not any mistake there. It's a complete waterlogged area where technically, because of the waterloggedness in somewhere in between beneath the foundation, that particular area has been softened, it has been settled. So because of that under construction, it is not operated or we have not given that road for any operation also. Because see, everybody says that in that show cause, they have used the word, "You have compromised the safety of the public." We said it is not operated. It is not even open for the traffic actually. That's what we have said.
And we have confidently replied with our designs, whatever the designs which we were advertised before DPR or before execution. I think all the approvals, whatever we have taken from the concerned authorities and concerned IE, independent engineers, all that we have kept forward. So with all that, I think this issue should be settled with NHAI so that we will not have any further course of this thing. But however, we can even have an option to go legally to protect ourselves from all this.
Okay. Sure. So that is helpful. And the second question, just a few bookkeeping questions or capex numbers, execution that you've done in FY25 in the pipeline and the irrigation projects and outstanding receivables from the Telangana government.
Pardon, sir? Pardon, sir?
The EPC numbers, execution that you did in FY25 in pipeline and the irrigation project and are outstanding from the Telangana government. Just this bookkeeping number.
The capex we have done for the year is INR 22 crores. And the execution for the irrigation is for the quarter is INR 152 crores. It is 19%.
Okay. And, sir, in the pipeline projects and the Telangana outstanding?
Pipeline projects. Pipeline projects we have done INR 30 crores of turnover. And one more, what do you ask?
Outstanding from the Telangana government.
Including unbilled revenue, it is INR 1,200 crores.
Okay. Sure. So that's it from my side. Thank you.
Thank you.
Thank you. The next question is from the line of Dheeraj from Avendus Spark. Please go ahead.
Yeah. Hi. Am I audible?
Yes, yes. You are audible.
Hello. Yeah. So sir, just one question. Can I get the adjusted revenue guidance for the full year FY25 adjusting the arbitration claim and the other things?
For the full year?
Yeah. For the full year and the current quarter if possible.
Current quarter, there are none of the items. But for the full year, it is 15.94%.
A bit about. And the revenue, sir?
Revenue, it is 3,234.
Okay. And okay, sir. Thank you. And sir, PAT?
Sorry?
PAT number for full year adjusted?
PAT number, adjusted number, it is 339 crores.
And sir, what do you say for the EBITDA for the MSPAC account? Adjusted EBITDA?
EBITDA per? EBITDA per?
Adjusted EBITDA for the same thing.
You can say 15.94%.
Okay. Okay. Thank you, sir. Thank you.
Okay.
Thank you. The next question is from the line of Bala Subramanian from Anand Rathi Financial Services. Please go ahead. Mr. Bala Subramanian, your line is unmuted. You can go ahead with your question. Sir, we cannot hear you.
Hello. I'm audible now?
Yes, sir.
Yeah. Now, now.
Actually, I'm Bala from Arihant Capital, and sir, my first question is regarding what percentage of the current receivables is over 180 days and how we are mitigating the counterparty risk, especially from the state government projects. I think INR 921 crores is the receivable side.
Basically, most of the receivables are from the irrigation only, the pending receivables, which is almost 500 crores. And the rest of the money from our SPVs only, HAM SPVs, that we can draw money at any time. And on the irrigation receivables, it is already intimated that we are following up with the authority and we may receive in the near future.
Sir, any specific reason for delayed progress in newer HAM projects, especially in KNR Sriranganatha and KNR Kaveri Infra?
There are no delay in the execution. We have received the appointed date at a later point of time because of the ROW issues. Because the authority took their own time to issue the take the ROW and issued the appointed date at a later point. There are no delays because we have received in the previous month only. We have started our execution.
Okay. Sir, what kind of impact from FY25 union budget on EPC tendering volumes in irrigation and highway sectors?
EBITDA margin from the?
No, sir. I'm asking this Union Budget on EPC tendering volumes in irrigation and highway sectors.
Sir, this is definitely, sir, this infrastructure sector has to be grown actually. So there is a lot of opportunities that are there and government is definitely pushing that. But due to now NHAI has made the policy that until the end of clearance, they are not going to bid the project. That's why the bid is getting postponed. But we expect that definitely there is a lot of opportunity there in this sector. And but there were some delays actually due to this election and the decision-making. But now we expect that next this year onwards, it will definitely pick up actually. And as we told that government, we are now planning from two lane to four lane actually for almost 30,000 km that outlay of around INR 8-10 lakh crores. So that's why there is a lot of opportunities are there.
But we have to just wait actually when it is coming and we have to take it.
Okay, sir. Thank you.
Thank you. Participants, it is requested to restrict your questions to two per participant. The next question is from the line of Parth Thakkar from JM Financial. Please go ahead.
Hi. Thank you for the opportunity. Just wanted to know, what is the current outstanding irrigation revenue?
What is the outstanding irrigation revenue?
Irrigation revenue.
Receivables, it is around INR 7.70 crores will go.
Okay. And are we trying to monetize any of our HAM assets? And if we do, what would be the multiple we would expect on it?
Sir, your voice is not clear, sir.
Hello? I wanted to know that are we targeting to monetize any of our HAM assets? And if we do, what is the multiple we would expect on it?
Yeah. Definitely, our four assets, we are in the process of finalizing the share purchase agreement. And as we told that by mid of June actually, we will try to close it. So and that negotiation is going on actually. But at this stage, we cannot disclose it. But definitely, we want to monetize these other four assets.
Okay. Okay. Thank you, sir. Those are my questions.
Thank you. Before we take the next question, participants, it is requested to restrict your questions to two per participant. The next question is from the line of Jainam Shah from ICICI Securities. Please go ahead.
Thank you for the opportunity again. Sir, what is your mobilization advance as of now, as of March 25?
Mobilization advance is around INR 200,000,000.
20 crores?
20 crores, yeah.
Okay, and what about retention money?
Retention money is INR 846 crores, sir.
Okay. Yeah. And sir, my second question is, what is the total executable order book as of now in a book out of total order book of INR 4,000 crores? And is there any slow-moving orders going on?
Sir, INR 4,000 crores is now net executable order book is there, sir.
Okay. And is there any slow-moving orders as of now?
No, it is all in order, sir. All are good order books.
Good progressions. Okay. And sir, what sort of arbitration claim are we looking going forward in FY26 and FY27?
We have received awards from some of the projects, but that counterparty has gone to the court, so definitely this year actually, we may not know actually how much this is going to come because it will take at least four to five years actually to close that. So now, basically, this Odisha, one of the Arunachal Pradesh, we got the award actually around INR 319 crores of the project. But that actually has gone to the court actually, so it will take actually four years.
Okay, sir. That answers my question. Thank you so much.
Thank you.
Thank you. The next question is from the line of Parikshit from HDFC Securities. Please go ahead.
Yes, sir. Hi. Sir, in this case, where the show cause notice has come, so we have to correct the bridge, whatever is the damage. So I want to understand what could be the impact and whether it is covered under insurance.
Yes, sir. Actually, it may not get covered in insurance, sir. May not or will be. We have intimated and that they are examining the case. And the main cause of failure is because of the subsoil, poor subsoil below the foundation. But actually, we can't say that because while working, the foundation was very good. But somewhere between the layers of the earth below the foundation, much below the foundation, there could be some poor or some tap the what do you call, slushy kind of soil in between layers. So that has caused this thing. It is nowhere intentional because the proper approvals were taken and the total examination of the foundations were done during the thing because subsoil investigations are also done. But not in this location, but a little bit away from that.
But in that, I think in some particular areas, we couldn't tap anything of that kind of sound that it is having some weaker foundation kind of results. We haven't get. Accordingly, the designs and all were made. Strata Geosystems, one of the best civil agencies, has done the work for this actually. They have designed, and the design was also verified, approved by the concerned authorities. Then after that, only the execution was taken place. As such, we didn't see anything. It's kind of accident only. We also treat this as an accident only. However, getting through insurance and all, maybe that will be after their examination and their concerns, only we will be able to know. As far as NHI is concerned, now because of that situation, there is a local demand for making a viaduct.
Viaduct is almost costing about, say, 30 crores nearby. If the length is increased a little bit, it may go up. But otherwise, 25-30 crores is a rough estimate what we have made. I think as I said, I'm saying around 30 crores.
Okay.
So that INR 30 crore, in fact, will be there. And it is a change. Actually, the proposals, when the DPR consultant who made the DPR, he has proposed the viaduct on the service road side where we have observed some waterloggedness on the service road side, and we have done retaining wall instead of viaduct. Viaduct cannot be done also. But main carriage side, we have seen every clarity was there during that time. So that time, we have done the viaduct only. So maybe that somewhere in the subsoil, there is a weakness, what I told you earlier. That is the cause of issues. But we do not know any sort of again, for further investigation and again, designs are going on.
So I think viaduct will be a proper solution so that in the future also, we should not have any doubts because we have to maintain this road for another 15 years. And if we have any certain doubts and it stands by, some things will not work. So what we are also proposing with NHAI is that to go for a viaduct and solve this problem once for all so that in the future, we shouldn't see anything kind of that.
Okay. Just the BAN period is around INR 25-30 crores.
Proper estimate.
Got it. And the second question is about the BAN period. So, sorry, I missed it earlier. So you were saying it will be one month or the period of investigation, and it will not be for one year, which was reported by media, right?
Yes, sir. Yes, sir. Actually, we have to immediately close. Actually, we have closed ourselves. Our designs are at work now to prepare that viaduct proposals. And NHI, we are writing a letter for NHI with our proposal. NHI has asked, "You come up with your proposal also." So since they are asked for our proposal, then we have to bring up all these matters. And since this is a original contract, says to go for arbitration, and now we are going for a viaduct. It's a complete contract, and it is a complete change from the existing scope. Okay, I may not take money for whatever I have done. But the thing which I'm going to do, it's a new proposal, and it could be under change of scope. But however, we will deal that with NHI.
If they don't pay, we may have an option to go for arbitration also. But anyway, we are stating that the problem should be solved, and we probably should be over with the problem.
Okay. And just on the revenue guidance, last thing, sir. So what kind of guidance for FY25 and FY26, what kind of revenue or growth you're looking at or the growth you're looking at?
Actually, as I already explained, because right now, based on our existing order book of INR 5,000 crores, we can execute between 2,500 to 3,000 in our existing order book, and further, based on when we are doing this RSO, RSR, DCR, other things, based on that, so that's why once we receive the LOA or we receive some definitive LOA like that, then only really we can comment on order book, but based on our existing order book, we can execute between 2,500 to 3,000 crores.
Got it. Okay. Thank you, Anish.
Thank you.
Thank you. We'll take our last question from the line of Shravan Shah from Dolat Capital. Please go ahead.
Yeah. Just two things. CapEx for FY26 will be, given that if we receive this INR 8,000-INR 10,000 crore and maybe in the new segment, what kind of a CapEx? Maybe not this year, maybe in FY27, do we have to incur a decent CapEx?
Definitely, sir. Definitely based on because our existing CapEx can take care of our existing, and maybe we can use 50% of this CapEx in our new projects. But when we're receiving new projects like MSR DC, some mining, or some other things, so definitely CapEx requirement will be there. Maybe not 26% in 27.
Sorry, sir. 20%? I missed the last line.
Maybe not in 2026. Might be in 2027 actually. We have to incur CapEx for these other new projects.
Okay. So '26 would be the similar kind of a 20-30 odd crore, but FY27 can see maybe a 100-200 crore kind of a CapEx. Okay. And lastly, sir, in terms of the bonus, I think you mentioned some 3-4 crore kind of. So total put together in FY26, how much bonus are we likely to book?
That INR 3 crores are presumed with our Chittoor Thatchur, that money will come. Other than this, we have not.
Other than nothing is there for bonus.
As we received from.
Authorities, we cannot book it.
But I think it is true actually that Chittoor Thatchur project, it is true actually. Approvals have come in time, and we have bonuses.
Okay. So this 3 crore will be booked in.
I comment now how they behave, how they do that thing.
Sir, this 3 crore bonus will be booked in the first quarter of FY26, this quarter, or it will be in the 2Q?
It should receive from the first.
Notice.
That is due in the first quarter only.
Okay. Got it. And all the best for order inflow. Thank you.
Thank you very much.
Thank you. Ladies and gentlemen, in the interest of time, we'll take this as our last question. I now hand the conference over to the management for closing comments.
Thank you all for joining us on this call. Please reach out to our investor relations, consultants, strategic growth advisors, or us directly should you have any further clarification. We can now close the call. Thank you.
Thank you. On behalf of KNR Constructions Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.