Ladies and gentlemen, good day, and welcome to the Afcons Infrastructure Q4 FY 2026 earnings call hosted by Dam Capital Advisors. As a reminder, all participant lines are 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 this 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. Kishan Mundra from Dam Capital Advisors. Thank you and over to you, sir.
Hi. Hi. Thanks, Alaric. Good morning, everyone, and a warm welcome to the Q4 FY 2026 earnings call of Afcons Infrastructure. Today we have the management with us, which is represented by Mr. Srinivasan Paramasivan, who is the Managing Director, Mr. Ramesh Kumar Jha, the CFO, and Mr. Hitesh Singh, the Head of Corporate Strategy. Now at this point, I will hand over the floor to the management for their initial remarks, post which we will open the floor for the Q&A. With that, over to you, sir.
Thank you, Kishan. Good morning, ladies and gentlemen. I welcome all investors, analysts, and participants to the Q4 and for financial year 2026 earnings conference call of Afcons Infrastructure Limited. We appreciate your continued support and participation today. Our financial results and investor presentation for the quarter and year ended March 2026 have been uploaded on the stock exchanges, and I trust you had an opportunity to review them.
Joining me today are Mr. Ramesh Jha, our CFO, and Mr. Hitesh Singh, our head of corporate strategy. Financial year 2026 was a challenging year for the infrastructure sector, and the overall performance during the year remained far below our expectations. First of all, I apologize to all the investors that we have made a loss in a quarter for the first time since we started publishing quarterly numbers from 2010. We view this as an exception.
In fact, it'll not be out of place here to mention that I am personally deeply upset with the results. I am sure that this could be an aberration or a one-time exception and will change. For the year, revenue stood at INR 12,322 crores, reflecting a decline of 5.4% year-over-year. EBITDA was INR 1,439 crores. Despite the moderation in performance, we maintained a healthy EBITDA of 11.7%. This continues to be amongst the better margins in the industry. Profit after tax stood at INR 251 crores after providing INR 76 crore for a one-time impact arising from the implementation of the new labor code. If you exclude that, PAT will be INR 327 crores.
For the fourth quarter, revenues were INR 2,777 crores while EBITA stood at INR 170 crores. The quarter closed with a net loss of INR 89 crores impacted by certain project-specific developments, provisions, and one-time factors during the period. The year was characterized by slower than anticipated ordering activity across several segments, delays in project conversion, prolonged tender evaluation timelines, and execution-related disruptions in certain projects.
Our top line during the year was also impacted by continued liquidity constraints at the client level, which affected execution momentum in some projects longer than anticipated. In addition, certain overseas projects witnessed temporary disruptions during the fourth quarter due to geopolitical developments in the region. A few projects that were expected to ramp up during Q4 also experienced delays arising from the design and alignment-related changes.
Taken together, these factors had a meaningful impact on the revenue growth and profitability during the year. However, we continue to view this as largely timing related and external factors rather than structural issues in the business or our execution capabilities. Despite these challenges, we continue to make progress across several strategic and operational priorities. During the year, the HRRL crude oil terminal project at Mundra, part of one of India's largest integrated refinery and petrochemical complexes, was commissioned, reflecting our growing capabilities in industrial and energy infrastructure.
We also witnessed the operationalization and inauguration of several infrastructure projects completed by Afcons during 2026, including sections of the Bengaluru double-decker metro and flyover corridor as a part of ongoing elevated metro project. This section was executed within one of the world's and Bengaluru's busiest live traffic environments with minimal disruption to city traffic. Sorry. In addition, successful trial runs were conducted on our Agra and Kanpur metro project, while Delhi Meerut RRTS Corridor, where Afcons executed 2 packages, became fully operational.
Our execution capabilities and institutional strength also continued to receive recognition during the year. Engineering News-Record U.S.A. ranked Afcons 8th in marine category globally and 12th in international bridge contractors, reinforcing our position in technically complex infrastructure segments. We were also honored with the prestigious MIKE Award for the 8th consecutive year. Overall, the 10th year, if you take MAKE and MIKE together, reflecting the institutionalization of knowledge management and innovation practices across the organization.
Turning to our own internal business, I am pleased to share that we have received a proposal for the rehabilitation and construction of the railway line project in Russia, for which we were declared L1 last year. We expect the related formalities to conclude shortly. As disclosed recently to the stock exchanges, the two Russia road tenders, where we were declared L1, have been canceled by the client due to budgetary constraints. While this is disappointing, we continue to remain positive on the long-term opportunity in the region.
On the Mumbai-Ahmedabad High-Speed Rail Corridor Package C-2 project, the second consignment of the tunnel boring machine, which had remained held up for several months, has now been received at site. Assembly activities are progressing well, and the main drive has already been lowered into the shaft. We expect tunneling operations to commence before end of next quarter. Coming to order inflows during financial year, we secured new orders worth INR 4,125 crores, excluding approximately INR 3,800 crores of variation and change orders received on existing projects.
The order intake was below our earlier expectations, largely on account of deferment of several large project awards and delays in conversion of L1 positions into firm orders, particularly in the fourth quarter. You would have noticed that we have booked around INR 8,000 crores of orders and declared L1 in another around INR 7,000 crores of new orders so far in this financial year. We expect these L1 orders to get converted in this quarter. With this last year order booking guidance backlog will be completed in the first quarter of this financial year itself.
That said, we have seen encouraging progress on some of these opportunities, both in domestic and international markets in recent weeks. Our addressable pipeline remains robust across key segments, transportation, marine, underground, hydro, water, and industrial infrastructure. Having the certainty of about INR 15,000 crore order, including L1 in the current financial year, we expect to book another INR 15,000 crore of more orders, making a total order booking guidance of INR 30,000 crore for the current financial year.
At this stage, considering the continued uncertainty in the geopolitical environment, elongated award cycles, and ongoing project-related developments, we believe it would be prudent to wait for greater visibility before providing specific revenue growth or EBITDA margin guidance for FY 2027. To conclude, while FY 2026 was undoubtedly a difficult year operationally, we remain confident in the long-term fundamentals of the business.
Our diversified presence across sectors and geographies, strong execution capabilities, healthy opportunity pipeline, and disciplined approach to growth position us well to navigate the current environment and capitalize on opportunities as sector conditions improve. With that, I now invite our Chief Financial Officer, Mr. Ramesh Jha, to take you through the financial performance in greater detail. Thank you all.
Thank you, sir. Good morning, everyone. Before talking on the numbers, let me reiterate that our quarterly number varies. Company is into the business of construction. The margin in a quarter varies based on the nature, type, and quantum of work executed. Quarterly results may vary in different quarter and may not be indicative of the annual results or trend. Moving into the specific numbers. In Q4 FY 2026, we had a total income of INR 2,777 crores. This is 18% down as compared to Q4 FY 2025, wherein we had done INR 3,387 crores.
For the full financial year, we have done INR 12,322 crores, which again is 5.4% down from the previous year 2025, wherein we had done INR 13,023 crores. Now, specifically in Q4, we have seen that the payments were not coming from the customers. Payments were not very smooth from majority of the customers. Working capital funding to the projects continued in Q4 as well. Under the circumstances, we decided to balance between funding projects and maintaining liquidity.
We funded projects up to a limit, but we had not gone beyond the point to avoid overexposure to any customer. This limited our turnover in some projects. In Q4, there were after the war, there was POL and gas-related issues in projects, consumables and logistics related challenges. Especially, this was in the overseas market, which kind of marred the planned progress.
Usually, we have seen that in Q4, we do at least 15%-20% turnover more than Q2, Q3. That is backed by smooth payment from the customers. That gives us the benefit of economies of scale and improves profitability significantly in Q4 and then impacting overall year performance. However, this year was a contrary effect. It was one of the factors which has impacted the bottom line also during the year. For the full year, we achieved a turnover of INR 12,372 crore, which is a drop from previous year top line.
This year, we could not achieve the planned turnover from various projects across domestic as well as overseas. On an overall basis, if I have to put it in a nutshell, there were payment issues. L1 orders were not converted. Some of the fast-track projects not picked up. Sudden geopolitical issue were the main reason impacting the revenue growth. Moving on to the EBITDA. During Q4, we had done absolute number INR 170 crore of EBITDA, which was quite significantly lower than the previous year's INR 415 crore. In terms of percentage, in Q1 it was 6.1%.
For the overall year, the absolute number of EBITDA was INR 1,439 crore, which is 11.7%, as compared to last year's INR 1,662 crore, 12.8%. On a year-on-year basis, it was down by around 13.4%. In our EBITDA calculation, we consider the Bank Guarantee commission as part of our operating expenditure. EBITDA, what we are talking about is after removal of BG commission as the operating expenditure. This year, because of, you know, overall reduction in our interest rate, the finance cost even though has gone up, gone up, which I'll talk about when I talk about the finance cost.
Our EBITDA calculation includes other income as part of revenue. We have explained earlier also that our other income is very much part of business. Arbitration interest, foreign currency exchange gain, miscellaneous incomes are recurring, and those are very integral to our business, and this needs to be considered as other operating income. For the year ended, a sizable amount of INR 374 crores, which is part of other income, needs to be considered as other operating income.
Now moving on to profit before tax. For the full year, we have done INR 387 crores of profit before tax, which works out to be 3.1% of the top line. This has come down as compared to FY 2025, wherein we had done INR 710 crores, which was 5.5% in the previous year. In profit after tax for the Q4, we had done there is a loss of INR 89 crores. However, for the full year, the profit after tax is INR 251 crores, which works out to be 2% of the top line. Wherein, in FY 2025, we had done INR 487 crore, which was 3.7% of the top line.
Profits for the quarter got severely impacted because of sizable provisioning in one of the projects. In another project, we incurred substantial extra cost on marine operations. Both these are, you know, kind of one-off event. In addition to this, in some projects where we were expecting to cross the margin recognition threshold, usually in all the projects, once we receive a threshold of turnover which is around 10%, then only we start recognizing profit. In few, you know, recent projects, we could not cross the margin recognition threshold which we were expecting in Q4.
We fell short marginally to reach that threshold, so margin could not be recognized. In addition to this, under-recovery of fixed cost because of lower turnover, higher finance cost because of working capital lockup, were the components contributing to loss in the quarter. For the full year, in addition to the above factors impacting Q4 profitability, labor code-related one-off exceptional item was another big impact.
Specific to finance cost increase, during the year, we have continued to see payment-related challenge. We have improved our average borrowing cost in FY 2026 as compared to FY 2025 because of our because of the interest rate going down and of course, because of improvement in our credit rating as well. During the year, the average borrowing has gone up as compared to previous year. Because of that, the overall interest cost has gone up. This has a manifestation of working capital blockages.
Despite improving the average cost, interest on bank borrowing has gone up. Also, the interest-bearing advances for the full year FY 2026, which is around 40% of the overall advances from the customer, which even though in March 2025 was also around, say, 38%-39%. The interest on customer advances were not for the full year that 40%, because it gradually moved from, say, around 20%, which in September 2024, it moved to around 38%-39% by March 2025. For the interest bearing advance in last year, there was not full year impact, whereas this year almost 40% of the overall advances were interest bearing.
That has got a bearing and the interest from the customer advances has increased in this financial year. Because of this, interest on customer advances has increased, making the overall interest cost go up. We expect the situation to improve on realization of locked up assets, which we are in a very advanced stage at this point in time in many projects, and also on receipt of interest-free advances, mainly in international order. On the depreciation front, we continue to account for accelerated depreciation on our TBMs.
Of the total INR 454 crores, the normal depreciation was around INR 289 crores, which is 2.33%. Rest of it is on account of accelerated depreciation. On tax, the tax rate on Afcons' profit is around 35%. This is on account, you know, this is higher than, you know, usually one would expect. This is on account of some of the JVs where we paid tax in the range of 35%-36%. Also, in some overseas locations like Bangladesh, Gabon, tax is charged on turnover. In such situation, if you don't make profit above the threshold.
Your tax is, the extra tax is, it needs to be charged off, which was the case in places like Gabon and Bangladesh. Beyond this, we had to make provision in one of the JV entity, which has brought the consolidated profit down, making the effective tax rate higher. Specifically on ROC, we have talked about that higher provision in one project due to arbitration development, extra cost on a marine operation in one of the project, and non-recognition of margin in few projects due to non-achievement of turnover threshold, and also under-recovery of fixed costs due to lower top line.
This all has severely impacted the profitability, in turn, impacting the ROC and ROE. In FY26, we have done around 12% ROE, and ROE is around 5%, which is quite low. In terms of debt, gross debt has remained in the similar range that of September and December, and that stands at INR 3,538 crore, and net debt is INR 2,653 crore on the net basis. On net basis, the debt to equity is around 0.49 times of the net worth. This is all the numbers. On behalf of Afcons, I thank everyone for attending this call. I request the moderator to open the floor for Q&A.
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from Shravan Shah with Dolat Capital. Please go ahead.
Hi, sir. Thank you. Sir, you have tried to explain various reasons of why the overall performance was one of the worst quarter in the overall history. Still, trying to get some more clarity there. When we had a call in the third quarter, post the result in February, we were kind of confident, we will be able to do at least 5% revenue growth for the entire full year.
That means we would be doing a kind of 19%-20% kind of a growth on the fourth quarter versus now we have seen a 19% degrowth in the fourth quarter and for full year also 5% kind of a degrowth. Just trying to understand that even at the middle of the quarter we were so confident and what has gone so wrong in terms of, and that's why we missed significantly on the execution front.
That is correct. See, usually what we have said, this was based on, say last 15, 20 years experience. What happens that, in Q4, we have seen that the customers, they release all the payments up to date. This is what our experience has been for quite some time. This year was an exception wherein we have seen that there was a slowdown in terms of payment, and payments were not forthcoming. That has impacted. We had to decide a choice between growth or to preserve the liquidity. We had not taken that aggressive call to pursue the top line growth. In the midst of that, the war started, that severely impacted the supply chain management.
You are aware that, you know, even this year we have done close to 30% from our overseas projects, even though the order book is lower in terms of order book composition, domestic versus overseas. In terms of turnover, we continue to do around 30% from the overseas market. Some of the countries where we are operating are, you know, not that bigger economies where they have got higher amount of oil reserves. The operations got severely impacted in the month of March. Fuel related stuff and logistics related stuff. We couldn't send material to project site, and this severely impacted. In domestic market also, you are aware that many of our projects are at remote locations. Availability of gas was a real problem.
Okay. Got it, sir. Now again, we are at the middle of this quarter. First, obviously, I think, correct me if I'm wrong. For full year FY 2027, we are not providing any revenue guidance. If that is the case, then this quarter, Q1 till now and looking at whatever the constraint, payment related issues, everything, can we see a growth in the Q1 FY 2027 this quarter?
See, this is where what we have conveyed is that at this point in time, because of the geopolitical situation, because the condition continues to be the same. Even in domestic market, we are getting very contradicting signals. We are hearing that the energy prices are going to significantly go up. We have not seen the payment situation improving significantly. Even though some of the stuck payments we are, as I said, earlier, that we are in a very advanced stage to get those payments, but at the same time, those supply chain related issues continue. It would not be prudent on our part to, you know, give you any guidance as such for the, for the full year or even for the, for the Q1.
Okay. Got it. So, same for even for margin also, the normal long-term guidance that we have 18%, that will also, we will right now not be kind of giving any kind of guidance on that front.
We are not giving any guidance on the margin front also because we need to see how it actually pans out. Many overseas places we have seen that the petrol, diesel prices have significantly gone up during the war period. In the month of March, April, the prices have gone up. Some of the places like Bangladesh, they were having elections, till the elections were there, the prices remained stable, after the results, the prices had gone up.
We are looking at that kind of situation. You are aware that in many overseas locations, our prices are fixed price contract. We need to see how we are able to recover from the customer this escalated cost. We have in past also explained that generally in overseas market we try to keep risk and contingencies. At the same time, we are not very sure to what extent, you know, those risk and contingencies will be able to take care of the of the escalated cost.
Lastly, sir, on the inflow front, just to get a number correct. After the 31st March, how much value of inflow that we have received the LOA. Obviously we also know, if you can also specify in terms of the L1. One, what I know is, Croatia, which would be a INR 7,800 odd crore and the Vadhvan one, which is a INR 5,300 odd crore. Kind of a INR 13,000 odd crore kind of, if you can specify the number would be better. We are saying by June we would be getting a INR 15,000 crore LOA. That is one. Second, additionally, we will be getting a INR 15,000 crore more inflow. Total would be a INR 30,000 crore for the entire FY 2027.
Yes. You are right. We have already informed to the exchanges that this Croatia order is already, you know, we have been selected as the contractor for the project. Besides that, you are aware there are news in the social media that couple of projects we have been declared L1. Since we are not, you know, disclosing that to the exchanges, we'll not be able to give you the exact details, but you are aware. You know, there are projects where we have been emerged as L1.
There is also an underground metro of DMRC of INR 373 crores which we have bagged already.
Okay.
In the year number what we are talking about, you know, almost 50% is having a clear visibility, in place.
Okay. Okay. Okay. Got it. The CapEx for full year now, given the FY 2026, I think the TBM cost now will be shifting in the FY 2027. How one can look at the FY 2027 CapEx?
FY 2027 we are looking at a CapEx of around INR 725 crores.
Okay. Okay. That's it from my side. Thank you.
Thank you.
The next question comes from the line of Ankita Shah from Elara Capital. Please go ahead.
Yeah. Hi. Sir, I'm referring to your last con call that you mentioned that nearly one-third of your Q4 target is already achieved in the first 40 days. Most approval on the, on, you know, related to project delays have been resolved. Execution pace to normalize from 4Q and 11% margin looks sustainable. Amid all this commentary that you gave, what is it that you did not see coming through which impacted the balance 50 days of project execution and margins? What are the, you know, key projects that actually impacted this and you did not see it coming through?
See one, you know, we will, you know, let's appreciate that Q4 always remains to be a sizable portion in any year. In the month of March we had seen a sizable drop, because of, as explained earlier, because of supply chain disruption and energy related, you know, challenges. Many places the vendors were asking for advanced payment and then only they were committing. They were, despite giving advanced payment, many places it was not available.
That became a major constraint. As I explained that we have got almost 1/3 which comes from overseas market and from the countries that are not having, you know, those kind of energy reserve. That severely impacted. Some of the projects even in domestic market got big impacted in the month of March. This is something which we were not expecting. Also some of the projects where, you know, the fast track projects we were expecting because, you know, the kind of discussion we had with Because these were all private customers also. We were expecting things to ramp up, it didn't pick up.
Do you mean to say or can we read it this way that large part of this impact has been on account of your international projects, which is 30%?
Large part is because of international projects. As I explained earlier also that payment has to be something which makes things flow. This got stuck. This has severely constrained us to, you know, put beyond the point money by ourselves.
Okay. How much % of impact is on account of domestic projects and, you know, export? I'm assuming everything got impacted.
Yeah. No, export also we've been impacted. Maybe in domestic market, if you have to put a number around, say, 25% or so of the projects got impacted.
Okay. What give you know, I mean, given that the situation still remains the same, do you think this issue will continue going forward as well, at least this quarter or next 6 months clarity you might be having, given the kind of experience you've had over the years? What is your read-through for, you know, in the near term on this?
This, this challenge continues to be so, and we have not seen a very sizable improvement in overseas market in terms of e-energy availability. What we hear, you know, you might have also seen media, very prominent leaders, world leaders, they have talked about that, you know, we are looking at big disruption coming up. We are also not very sure how to, you know, give talk anything futuristic at this point in time. The situation has not drastically changed.
Okay.
That is the reason we are holding on to the guidance because, you know, once we see some clarity, we'll be giving the guidance.
Okay. Sir, can you give me more clarity on your international projects? Where all do you have the projects and what is the nature of the work that you're doing there?
In Bangladesh, we are doing a couple of road projects, and we have got a railway project. In Maldives, we are doing one bridge connecting project.
Okay.
Besides that, we are doing a couple of water-related projects in Tanzania. We are doing a project, water-related project in Benin, in Ivory Coast, and then there are various country in Africa.
Okay. what has been the issue here in these places? I mean, if you can give more clarity. Is it supply chain related or local level disruption that you saw?
No, no. No.
I'm unable to understand there, that clear.
Usually what happens that in most of these projects, the material goes from domestic market, India, and from Middle East. Dubai works as a hub for us. Movement of material became a problem for these these places. Usually for our project execution, we require a lot of diesel, we require a lot of gas. Availability of this was not there. Many places we had to give advance, and then only they were committing delivery.
Okay. This led to increase in the cost and has the work stopped on the site, or you've continued the work but you've not got the payment from the clients?
Of course, you know, the cost impact was not that severe. Because of this, the operations could not move in a manner we were expecting.
Okay. Okay. Fine. Okay. Okay, sir, I'll get back in the queue.
Okay.
I have more questions here. Thanks.
Hi.
Thank you. The next question comes from the line of Janam Jain from DAM Capital. Please go ahead.
Thank you for the opportunity. Sir, we have highlighted the delay in the payment from the customer end. Are there any concerns on any specific customer side, or are we facing issue from the government or the private clients?
See, as such, we are not saying that there is concern, but what we have seen is, in some of the state there was election. Because of that, there was no decision. The payments were certified by the customer. It was sent to the treasury, and the payments were not coming. Some of the customers, we heard that, you know, they were not deciding. Payments were certified. It was sent to their centralized finance team and then, you know, we just heard that the payments will be released. It was not released. It was released actually subsequently in the month of April.
Okay
As such, we are not saying that we are seeing any concern. I think, you know, in past we have talked about Jal Jeevan Mission, which continues to be in UP. They have taken a stand that wherever every, you know, people are completing 100%, then only they'll release the payment. This contractual condition, this is how it has been taken up.
Okay. Basically there was some spillover of receivables from March to this quarter, and we have seen a relief of the payments in this quarter, right?
Yes. It's not only limited to quarter. Actually, what we are trying to say is that the payments are getting elongated. It's not that, you know, the payments are stuck, the running bills payments are stuck, but then the manner we, it used to come or, you know, we were expecting, it is not coming in that manner.
Okay. Okay. Sir, my second question is, like, is there any plan to bid internationally on the ME side, given that Abu Dhabi has unveiled its $55 billion worth of project pipeline?
He's saying that Abu Dhabi is coming up with some 55 billion dollar-.
No, no, we are definitely at it, and sooner than later we'll start bagging projects in the Middle East.
Okay. Currently, would you give any bid pipeline number for now, for this year?
Yeah, sure. Our bid pipeline remains healthy for the next 2 years, which we track. It's close to INR 4 lakh crores, which we are tracking, across segments. Out of that, 70% is domestic and 30% is from the overseas market. As Ambisa just mentioned, the Middle East also looks like a big opportunity once the war gets settled. That area also we are looking. There are many large-value projects in our pipeline, which we are expecting to convert soon. Basis that, it gives us a confidence that this year we have given a guidance of INR 30,000 crores for the order booking.
Okay. Do we have any bifurcation for this bid pipeline of INR 4 trillion?
Yeah, I have the bifurcation as well. Out of that, INR 4 lakh crore, around INR 96,000 crore is from the hydro and underground business, which includes our water business as well. Around INR 90,000 crore is from the marine and industrial. It will be like 50/50 distribution. Our rail and road business will be around INR 85,000 crore, and remainder around INR 1.3 lakh crore is from the urban infrastructure business, which includes metro, underground, elevated, and elevated corridor projects as well. That's how the distribution looks like.
Okay. That answers my question. Thank you so much, and all the best.
Thank you. The next question comes from Parvez Qazi with Nuvama Group. Please go ahead.
Hi. Good afternoon. Thanks for taking my question. You mentioned that in Q4 we had a sizable provision in 1 project. Would it be possible to get a quantum of the total provision that you made in Q4 across all projects?
In Q4, across all projects, we have done a provision close to INR 160 odd crores.
What would have been this number for FY 2026?
FY 2025. FY 2026.
Twenty-six.
2026, the number is close to INR 325 crores. See, I Parvez, I'll just explain you.
Yeah.
What we have done is, you know, this year we have, in Q4, what we have done is we have made a ECL provisioning matrix. Earlier, what we used to do is as per accounting standard, we used to look at, you know, some previous periods, what is the write off and basis those averages we used to make provision. In some specific projects where we used to think that, you know, there could be some challenge, we used to make those specific provision.
This time around, rather than, you know, sticking with that individual assessment or, you know, individual basis that, you know, we used to make provision, this time we have made a matrix wherein we have moved from earlier basis, you know, some management judgment provision, we have moved to a matrix wherein basis aging and basis category, we have made a provision matrix. It will be automatically provision will be made. you know, all the receivables and There was some extra provisioning required because of, you know, we had to shift to this new matrix system. There was some extra provisioning required, which we have done.
Also, we have done in one of the projects where we had an arbitration award, where we could be taking a call as to contest or not. We thought it is prudent to provide for it. We had provided for that. That is also a significant amount. Plus another of the projects where there is a cost increase in terms of our marine spreads and other things, which we thought it is, while it could get compensated in due course of time, we thought it's upfront, we'll book the cost, and later on as compensation comes, it could be a plus side that time. That is how we had, as per our usual conservative accounting policies, that's something we have done upfront.
To summarize, I mean, if one adds all these, which is, extra provision due to a new policy or a cost incurred in a marine project or some provision for a potential claim where we have to decide a strategy, I mean, what will be the quantum of these one-time costs in Q4 across all these categories put together?
I think all this put together, the quantum could be around, say, INR 260 crores-INR 265 crores.
Sure. Second question is, what is the CapEx that we incurred in Q4 and FY 2026?
In FY 2026, we have incurred a CapEx of INR 1,069. This number was in December, this number was around INR 370 odd crores. In Q4, we have done close to INR 700 crores.
Got it. I think that's it from my side. Thanks and all the best.
Thank you.
The next question comes from Bhavik Shah with Invexa Capital LLP. Please go ahead.
Yeah. Hello, sir. My first question is regarding the current order book. Can you help me with the split of, say, the fixed price order book in it and the variable cost order books in it? Also in the fixed cost, how much of it is going to be impacted, say, in the margins which may not be at our normal margins now?
In terms of our existing order book, nearly about 10%-11% only is currently in the overseas segment.
Thirteen.
13% is the overseas segment. Others are domestic segment. As you know, domestic segment, we have a pass-through mechanism, international segments, we don't have a pass-through segment. Therefore, our impact, and most of these projects which we are talking about, is on the closing stages. Other than the fresh order which is received in the current quarter.
All others are in the final stages of closure, and therefore we do expect a limited impact in terms of the existing cost escalation or other things. In the new project in Croatia, beyond a particular level, it has a pass-through mechanism in that contract. Up to 10% additional cost we need to absorb. Beyond that, it is a pass-through. That's something which is there in the new contract.
Sir, in the projects you mentioned in Bangladesh, Maldives, Tanzania, and Benin you executed this quarter, what will be the quantum of these? You're saying a large impact came from these projects. What is the quantum of these projects?
Like, can you come again?
You quoted the Bangladesh road, rail projects, the Maldives projects, the Tanzania water projects, the Benin project. All of these were slow-moving during the quarter. Can you help us with the quantum of these projects?
Maybe. In the overall order book, the quantum, at this point in time, the overseas component is around, say, 13%. What I have explained earlier also, that even though it is around 13% in the overall order book, during the year turnover, almost 30% is coming from the overseas market.
Okay. Okay. Sir, we are saying we have INR 32,500 crore of order book. We are saying we have INR 15,000 crore of assured inflows and INR 15,000 crore of inflow we are going to bag more. That will take me to around INR 60,000 crore of order book. Even after having a INR 60,000 crore of order book, we are not able to give a revenue guidance for the year. Isn't that a little misleading?
No.
No.
It's not misleading at all because the infrastructure industry needs some bit of an understanding, where the initial few months it goes towards installation, design and other phases. The revenue starts accumulating in the heavy civil infrastructure project by and large from the second year onwards only. Some of the projects what we have currently in our INR 30,000 crore, INR 31,000 crore of order book, has slightly long gestation projects.
Like if you talk about there are 4 dams which are about 5-year duration. There is a high-speed railway project, which is about 62 months, which is now because of the tunnel boring machine getting extended to another 12-15 months. Therefore, these are long gestation project. Therefore, it's based on the expected order, based on the current order, giving a guidance, especially the till uncertainty remains in the geopolitical situation, will be inappropriate.
While on the one side there have been talks about this thing, our own increase in petrol, diesel is minuscule to start with. In stages it could get increased. All these will have to be factored in properly. Even now we find that some places there are non-availability of fuel in some of the overseas markets, some of the domestic markets in remote places, all these. Those, based on all these, giving a guidance, may not be very appropriate. That's the reason we felt it's not appropriate to give a guidance.
See, we are not saying that we are not giving guidance. What we are saying, at this point in time, we are just holding on. We just want to see the visibility, how things are panning out. See, what I'm saying is, cost may go up. If there is a confirmed order, you know, you may incur some extra costs. The continuity continues because of the payment flow. That is where we are seeing that there are certain uncertainties. That's where we want to see some visibility that, you know, how things are, things are moving.
Also, Bhavin.
so if a customer Yeah.
Yeah. Bhavin, even though we are giving a guidance of INR 30,000 crores, we have to see at what point of time the project comes. We are also seeing that the project cycle, award cycle is getting elongated. If the project comes in Q2, Q3, accordingly it will impact the revenue. That is also one of the reasons.
Right. Understood. In case of, say, the customers are elongating our payments, not giving us on time, do we have any rights to maybe get those payments earlier? How are we negotiating with them currently? Because it will impact our margins for sure.
No, you see, that is correct. Usually what happens in construction contract, we are not with the, at least with the government customer, we are not negotiating per se, you know, individually the contract condition. Once the tenders are out, the contract conditions are set in that contract, in that project. Basis that everybody bids and then once whoever gets, he has to follow the same contract condition. Many a times what happens that if your payment is getting delayed, then you will have a provision of charging interest to the customer. All that is there in the contract.
In practice, what happens that the customers, if they are not seeing the visibility of releasing payments when they don't have funds, they'll not certify the bills. Being government entity, you know, you don't want to get into a confrontation kind of a mode with the customer because, you know, that is also not advisable.
Till now, the way we have operated is we have tried to deliver project, we have tried to, then, you know, in advance, we have tried to solve customers' problem. This is that goodwill that because of those, you know, performance aspects, we were getting our things done. At this point in time, we are foreseeing that there are some challenges related to liquidity, and that is kind of, you know, creating this kind of situation. Otherwise, we are not having any, you know, bad experience with these customers because our customer selection is quite, you know, we are quite focused on our customer selection.
Understood, sir. Understood. I wish you all the very best for the year. Thank you so much.
Thank you. Participants, in the interest of time and fairness to others, please restrict yourselves to 2 questions. For any more questions, you may rejoin the queue. The next question comes from the line of Shrinarayan Mishra with Baroda BNP Paribas Mutual Fund. Please go ahead.
Thanks for the opportunity. You highlighted that you are delaying execution of few projects because of uncertainty on collections. If you can highlight, you know, what is the order book which is facing this issue of collection, so as to gauge, you know, how much impact we are facing. Related to that also, projects with less than 10% completion, what is the receivable on these projects?
See, I think, you know, specifically if we have to talk about project, I think, other than UP Jal Jeevan Mission project, and maybe, you know, project in Gabon, we don't have any specific names to be given. What we are saying is, in any project, what we try to do, we have our own internal threshold that, you know, this many months of turnover, if it is not realized, then we'll beyond this, we are not going to fund. And we try to manage the project from the project cash flow. If the payments are elongated, because many a times it happens that, they will try to bunch up, 2, 3 months' bill will be holed up. After that, you know, we try to go slow.
We don't fund from our own pocket. Payment comes, we try to manage the project. This is how things are going. This has got a overall impact, what we are trying to say. Specific project, if we have to talk about, we have already talked about UP, Jal Jeevan Mission project, we have tried to explain that there, contrary to the contract condition, the customer has taken a stand that whoever is completing the final connection. It means that, you know, one needs to complete 100%, you know, those connections, then only they'll be getting paid. Wherever we have completed, say, 60%, 70%, 80%, the contract condition says that progressively the payment needs to be made.
Now they have taken the stand that final connection, 100% completion, then only they'll release the payment. In normal course, maybe, you know, we could have done maybe say anywhere around INR 60 crore-INR 70 crore monthly turnover. Now, given the kind of situation, we'll be completing those, you know, wherever we have reached, say, 90%, those kind of. We'll try to complete that 100%, and we'll get that money. From then, that money we'll try to complete the, you know, remaining, maybe then we maybe look at say wherever we have done 80%. Likewise, we'll go.
What I understand is then the collection problem is widespread. It's not limited to certain projects, right?
Absolutely.
Okay. Okay. Also less than 10% completion projects, what are the receivables there, outstanding amount?
I think so receivable is not that significant there. There are receivables, maybe say it will be around two months receivable will be there in such projects.
Okay. Okay. Sir, just last question. On the this interest-bearing advances that we are getting, that proportion is increasing. On the order book level, what % of order book will have, you know, interest-bearing advances? I want to have a sense of forward looking that where this number is going to be finally. On one side, we are paying interest on advances to customer, other side, customers are delaying our payment. We are in a kind of a deadlock situation. I don't I mean, how will you manage this? It's a big problem.
No, I think, see, we don't look at project selection in that manner that, you know, if there is an We'll keep maybe say 50% only interest-bearing advances because this is not how we look at. What we look at is in any project, what is the threshold of margin we are looking at. Generally, you know, these projects, we are talking about we are paying interest, is for sure, but then in these projects we have better margin. Unfortunately, we are at a time wherein, we have not crossed the threshold, wherein, we recognize the margin in the project and on the contrary, we are paying the interest. That, you know, it is getting reflected. I think once the top line kind of, you know, elevates, we will not have this kind of a situation.
Where this number will go?
I'm sorry to interrupt, Shrinarayan. I would request you to rejoin the queue.
Sorry, it's a follow-up question on the same question. I've not asked even a new question.
Yeah, Go ahead.
I understand that you don't look at this while bidding for orders, but your ROCEs and ROEs will get impacted, right? If you have higher interest-bearing advances as a percentage of your order book. How confident are you know, on achieving the guided ROCE and ROEs if, you know, the project
That will certainly impact the ROE. You know, you are getting the money, so from the customer, so your capital employed is not there. ROCE, I think, you know, the interest expenditures comes below that, so that will not impact the ROCE.
Okay. Anyway, I'll ask a follow-up question.
I think, you know, just to add, you know, further to that, we have said that generally our order book from overseas market has always been, say, around 30% or one-third of the order book, which is down at the moment. I think hopefully we'll reach that stage and, you know, we'll have. Overseas is interest-free and that can significantly improve the situation.
Okay. I would still appreciate if you can give in terms of segment or order book, what is this number that will give a forward-looking information. Thanks.
Thank you. The next question comes from the line of Shriram Kapoor with Jefferies Group. Please go ahead.
Hi, sir. Thanks for the opportunity. Just had a question on your, you know, your order flow visibility, the INR 30,000 crore that you are guiding for this year. What gives you that confidence on, you know, that balance INR 15,000 crore that you mentioned? You said visibility is in place for about 50% of this. The balance, you know, 50%, what gives you visibility on this? Is it gonna be more on the international side or domestic side? You know, which areas are these projects coming up in? You know, is the bidding already opened or is this more sort of, you know If you could give some more color on that balance 50%.
Balance 50% consists of both domestic and international. In terms of certain international projects, we are already in the stages of negotiation and closure. We do expect things to happen quicker. In domestic projects also, we have number of bids already submitted, and there are few more bids in the pipeline. We would say there is a definitive visibility in terms of balance, INR 15,000 crore order book as well. You will not be surprised some more of this will come in the current quarter itself, which we are keeping our fingers crossed.
Shriram, it is across segments. We have good visibility in marine, in urban infrastructure, in hydro, and certain projects in surface transport as well. Visibility is also across the various segments we operate in.
Un-understood, sir. Just secondly, on your working capital, right? Of course we've, you know, had a lot of discussion on the payments getting delayed, and we've seen, you know, consequently a rise in your receivable days this year. Are you seeing, you know, any, you know, how are you seeing this panning out in FY 2027 in terms of your receivable days? It's gone up, you know, more than 300. You know, maybe in the next 1, 2 months there's that you don't, you cannot give any guidance. Overall, you know, a sense of target number that you're looking for for FY 2027 in terms of your receivable and overall working capital days.
See, in terms of receivable days, I have just now, you know, during the call I have said that, on quite a few, you know, big chunk money which is stuck and, on this we are working with, you know, various customers. We are at a very advanced stage. Before June, we are looking at a sizable amount getting unlocked. That will give us, you know, some improvement in terms of the number we are looking at. At the moment this net working capital number of around 143 days, and in last call we had talked about that we are looking at somewhere around, say, 120 odd days.
With this, you know, and to be very honest with you know, these monies we were looking at getting monetized before March. That's what we were discussing, but it didn't happen. Hopefully before June this is going to happen because now we are on the verge of, you know, closing many of this. We know that some of the payments has already gone and they are releasing the payments. Still, you know, I'm just taking another, say, 40 days or so, it will definitely going to happen.
With that happening, we'll go back to around 120 days. Then from there on, there are number of stuck payment and we are not going, as we, you know, as I have told that, in projects we are not overexposing ourselves. I think, you know, bare minimum we can look at 120 days. From there on, we need to see improvement, but I don't want to commit at this point in time because we are hearing, you know, very contrary, you know, news about payments and all. We need to see how it actually works out.
Got it, sir. If you could just comment on the Maharashtra L1 tenders. Is there any update on that? You know, they're going out for rebidding. Any comment on those Maharashtra tenders which were L1 in earlier? Any update on that?
Yeah, yeah. Earlier L1, both the Pune Ring Road and Nagpur-Gondia, both are going for rebid, which we had communicated in the earlier quarter itself, it is likely to go for rebid. Now they have informally advised us and also asked us to collect the EMD guarantees and all back. Both of these are going for rebid. Therefore, we have removed it from the L1 status also, those jobs.
Okay. No visibility on when the timelines of the rebidding process, right? You know, when it might come up and what are your, you know, how is the competitive intensity in those projects going ahead?
We expect Pune Ring Road could come for bidding in the current quarter itself, towards the June or so. Pune Ring Road, the land acquisition is almost completed. With respect to Nagpur-Gondia, I think visibility will come once they do the land acquisition fully. Pune Ring Road could come up for bidding shortly.
Got it, sir. Thank you so much. All the best.
Thank you.
The next question comes from the line of Mudit Bhandari with IIFL Capital. Please go ahead.
Hi, sir. I just wanted to get a more sense upon when we say we have 79% of our order book from government. Majorly of our current issues are coming from this side. I know you don't provide any specific bifurcation, but any range where you can give how much it is from central government or any specific states, like you mentioned one of them is UP or any PSUs where it is a MSME.
It's of our pending order book. Close to 50% is from state government. I mean, around 80% is from government side, and out of that, 50% is state government and 50% is from the central government. That is how the breakup is. Out of state governments, we have projects in Maharashtra, Uttarakhand, Madhya Pradesh, Rajasthan, UP, Bihar. Across multiple states we have exposure in our pending order book. With regards to stuck payment, the main, as our CFO already explained, it's from the Jal Jeevan. Rest everywhere there are certain liquidity concerns, but not anything specific to be highlighted or pointed out.
Okay. Understood, sir. Thank you so much.
Thank you. The next question comes from the line of Balasubramanian A with Arihant Capital. Please go ahead.
Good afternoon, sir. Thank you so much for the opportunity. Sir, under Chennai Metro or TTA JV, that, INR 659 crore in variation due to unforeseen geological conditions. Could you please explain what it is exactly and whether the geological conditions were indeed foreseen based on the initial final investigation? I'm just trying to understand how do you look at whether it will come as a provision or is there any possibility to sort out this?
See, in, it would be project specific, you know, we would not like to discuss here. You know, since you have raised this point, in the, I'm not talking about specific about that project, but generally what happens that, in any contract, if there is a contract clause which allows variation accounting and we have incurred any variation as per the instruction of the customer, then we account for those variations. In normal course, what happens that the customers many a times, they will settle the amount for those variations across.
In some cases, it so happens that we are not reaching any agreement with the customer on the settlement amount. In such cases, what we do, irrespective of, you know, whatever, we may claim, in our books, we account for, revenue only to the extent of cost we are incurring. That is, you know, mere reimbursement we are looking at, and that is the amount which is getting reflected, you know, the specific project you have talked about.
Okay, sir. Thank you.
The next question comes from the line of Bhavin Modi with Anand Rathi Group. Please go ahead.
Yeah, thank you for the opportunity. My first question is, as I understand that, you know, we are now doing the work, you know, in proportion to the payment that we are receiving. Can we see, you know, debt levels, you know, to go down from here on, you know? We are already, you know, at the pre-IPO level debt of, you know, INR 35 billion. How should we look at the debt movement going forward?
See, what happens that, generally we have seen that in Q1, Q2, the debts go up. I mean, even though we have said this, you know, that from the project only we'll be funding, but not all the time, you know, all the expenditure will be, you know, funded through the project collection. Main operations, yes. Many a times we need to pay salaries, we need to pay rent and those kind of stuffs, you know, we are not hell-bent. There could be some marginal debt number going up and down, that is for sure. One thing for sure we can tell you that, for this financial year, FY 2027, we'll see a sizable drop in the debt number.
That's what, you know, we have stated earlier also that debt, we have always tried to maintain it at a level which is comfortable to us and comfortable to our stakeholders. This time it is not that, you know, this is a alarming number. On a gross debt basis also, our debt to equity is around 0.65. On net debt basis is below 0.5, which is, you know, according to me, it's quite a comfortable situation. Having said that, we'll bring it down to, you know, a level what we were there, say, in FY 2025 or so.
Okay. The second question, sir, you know, again relating to this, like obviously, you know, our net debt to equity is at comfortable 0.5x. Last 2 years, you know, sir, our cash flow from operations were negative, and we were actually, you know, paying the interest cost, you know, by taking the more debt, which is a vicious cycle. You know, what gives us the confidence, you know, that the net debt level or the debt levels, you know, will go down like?
You know, see, it's a call. It's a calibrated call. Maybe, you know, those kind of concern can arise when your debts are at an alarming level. We, you know, in past, we have operated at a debt equity of, you know, more than, say, around 1.3, 1.4. At the moment, even on a gross debt basis, we are at around 0.65. It's not that, you know, it's that alarming level, and we are at a very comfortable situation. We have got a sizable cash and bank balances.
We have got sizable undrawn bank limits available with us, and we have got very sizable advances which we can draw at any point in time. I don't think, you know, we are at that kind of a situation. In terms of finance cost and all, you know, what we had planned for the year, we are maybe, you know, marginally we are higher, but it's not that, you know, it is out of blue. You know, we are incurring some more cost and, on account of, borrowing.
Okay. Got it, sir. Thank you.
Thank you. Ladies and gentlemen, we will take that as the last question for today. I would now like to hand the conference over to the management for the closing remarks.
No, we can take more questions.
Okay.
Only three more are there.
We'll continue.
We'll continue and close it.
Okay. Sure, sir. The next question comes from the line of Avnish Tiwari from Vaikarya Fund. Please go ahead.
Hi. Can you explain this cost inflation pass-through in the domestic projects and the delayed payment we're experiencing? Do you think there could be a risk to the passing inflation through in these domestic projects?
All our domestic projects has an escalation formula. The formula could vary from customer to customer, but it has got an escalation formula consisting of steel, cement, labor, fuel, other factors and all that. Based on that, whatever is the increases on, in, some cases it is fully covered, some cases it is 90% covered, some cases it's more than 100% covered.
That's formula. Therefore, generally, any kind of increase in the domestic contracts, there have been no issues in terms of cost increases, except in some times when there's an abnormal increase, like happened in 2004, 2005, there was a suddenly an abnormal increase in the price of steel. From that of INR 17,000, it went up to INR 65,000 over a period of one year.
Unless that such kind of situation, normally it is manageable within the escalation formula. Internationally, most of the contracts are fixed price contracts, barring some exceptions here and there. For international price, we have a well-developed escalation formula. Normal price increases gets absorbed over through that formula, which we put internally in the pricing itself, we do that. In Croatia, which is our biggest contract to date, is something where up to 10% of cost increase we need to absorb. Beyond that, it has a pass-through. Therefore everywhere we have properly provided for, we will see comparatively limited impact.
Does that answer your question, Avnish?
The second question I had was on this, labor, minimum wage increases we are seeing and some protests we are seeing in northern states. Are you experiencing the cost increase as well as some degree of shortage or protest in any of your sites in India?
We are not seeing that kind of a situation. We have, you know, whatever minimum wages and labor code related increases, we have already factored all that. We are going, you know, as per the revised code.
Avnish, labor issues are across the board, so that availability we are trying to manage how it can be managed. Yeah, there is an availability issue of the labor part, but not protest, nothing like that.
Okay, great. Thank you.
Thank you. The next question comes from Shravan Shah with Dolat Capital. Please go ahead.
Hi, sir. Thank you for the opportunity. Sir, you said that we have bidded for a couple of projects where bid is yet to open. If you can specify what's the number and also, how much is in India and is outside India.
It will not be appropriate for me to mention the bidding values, amounts and other thing. More or less, we would say that we are reasonably confident of achieving this INR 30,000 crore order book guidance. In terms of domestic-international spread, it could be roughly about 40, 60 or so. Domestically, we're around 60. For international, it'll be around 40. Depending on which order we get, it could get shifted also in terms of percentage.
Got it, sir. Sir, now, just to clarify the CapEx number that we have said, INR 1,069 crore, but in the cash flow that number is much lower. Obviously the cash outflow would be happening or may would have happened in the Q1 FY 2027. Given that the depreciation over the capital WW, I hope mostly it would be related to the TBM. How one can look at this INR 100 crore quarterly depreciation that we have seen in Q4? A broader sense, how one can look at how it can inch up for FY 2027?
Yeah, FY 2027 it will be the similar number. Maybe, you know, marginally it will be up from, because, you know, you yourself have said that, you know, these CapEx, whatever, TBM we have added INR 1,000 crore, so that is going to get added in the gross block. Accordingly, you know, there will be some incremental depreciation, but it will be in line with FY 2026 and plus some increase towards all these additions.
Okay. Sir, is it possible to break it down the other income for FY 2026, INR 374 odd crore, the way we give in the annual report? Two heads that I'm trying to look at. One is obviously the interest income. That is one is obviously the arbitration one, and the other one is the other interest. What would be the balance? Balance I can minus it, but these two numbers if you have for FY 2026, what would be the interest on arbitration awards, and what's the other interest in other income?
That is, interest on arbitration interest is INR 19 crore, and other interest is INR 61 crore.
Okay. put together, only INR 80 crore is the interest part is there out of INR 374 odd crore?
Yes.
Okay. Okay. Okay. Yeah, just one more thing in terms of when we mentioned in previous answer that INR 260-265 crore is kind of a one-off provision that was there in the core cube. Till now in Q1, any broad sense that how much? This, the way we consider arbitration as a normal part of our business, this provision one should be considering as a normal part of business and not kind of a one-off. Depends how one can look at, but just trying to see. Till now, have we kind of done any kind of provision in Q1 till now or likely to be there?
No, no. No.
Okay. Okay. Okay. Got it, sir. Thank you.
Thank you.
The next question comes from the line of Shrinarayan Mishra with Baroda BNP Paribas Mutual Fund. Please go ahead.
Thanks for the follow-up. Sir, I wanted to know on the Croatia order, that road projects got canceled, due to budget constraints. For the railway projects, do you feel there might be collection issues going forward, or, I mean, how do you see that?
ECB has already approved the entire amount-
Okay.
The funds are already there with them. Therefore, we don't find any issues. Even with respect to road projects also, there is an ECB approval for the funding up to a value because there were a series of tenders, not these two tenders alone. There were other tenders as well. All were higher between 20% to 40%-45%, they decided they will cancel the tender and revise the estimate, get the approval from ECB, and then go for fresh bid. That is the reason it got canceled.
Okay.
This one has already been approved with ECB and all the others.
Okay. Got it. Got it. Sir, in terms of L1 orders, do you feel any other orders are also at risk of cancellation?
No.
Mm-hmm. Okay. Okay. Thanks.
Thank you. The next question comes from the line of Ankita Shah with Elara Capital. Please go ahead.
sir, just a follow-up on inflow side. Given the pipeline of projects that you have, and the L1 position pending as of date, what is the visibility on inflows for 2027?
Order, you mean order inflow?
New orders inflow, yes.
New order inflow, we have indicated INR 30,000 crores.
Yes.
Out of which we have already received, INR 8,000 crore. Another about INR 7,000 crore, we are L1. Further INR 15,000 crore. Total INR 30,000 crore is the guidance for the year.
Okay.
Order book.
Okay. Okay. Largely these will be orders in India, or are you looking at other geographies also for the same?
It will be a mix of both.
Equal split?
roughly about 60% domestic, 40% international for the balance of the orders.
Got it. International will be similar geographies where you're present currently or you're exploring new areas?
No, mostly it will be similar geographies.
Okay. Okay. In this, Middle East, rebuilding or reconstruction activity that could be there, in your assessment, how big could be that opportunity?
Already Abu Dhabi has expressed $55 billion. Similarly, other opportunities could come up. Bahrain is quite deeply impacted. At this point it is too premature because even in terms of timeline of reconstruction also, we need to see. From the second half only it could start. Therefore today we have not factored in the reconstruction part of it in our assessment.
Okay. Okay, sir. Yeah, sure. That's it from my side. Thank you, and all the best.
Thank you.
The next question comes from the line of Shriram Kapoor with Jefferies Group. Please go ahead.
Hi, sir. Thanks for the follow-up opportunity. That, just to clarify the INR 8,000 crore orders that you mentioned, these are already confirmed orders that would be, you know, a part of your order book? If you could, you know, give some color on which orders these are. Yeah, just if you could-
Yeah, sure. Out of those INR 8,000 crores confirmed, INR 373 crores is already part of our order book. Croatia, we have not taken in our order book yet.
Okay.
INR 373 crore of DMRC and INR 7,544 of Croatia are the orders in that INR 8,000.
Yeah, but in our pending order book, we have not taken the pending order book of thirty-.
No, 31st March we have taken. These are first quarter.
Yeah.
Right, sir. This would be your INR 8,000. And, you know, you mentioned that you have clear visibility in place of 50% of the 30,000 crore order book.
Another 2 orders we are already L1, where Vadhvan is the public knowledge, it's around INR 5,300 odd crores. There's 1 more job where we are L1, which is the rest of the amount.
That'll be the balance that makes up, that'll be about INR 1,700 crore to make up the total.
Yes.
INR 15,000 that you're talking about.
Yes. Yes, sir.
Okay. Okay. Understood. Thank you.
The next question comes from the line of Abhinav with ICICI Securities. Please go ahead.
Yeah, sir. Thanks for the opportunity. Just one question. You mentioned about the Pune Ring Road coming up in Q1. What could be the opportunity size over there?
Most likely it could be, there it's awaiting the cabinet approval. It could be around a similar size. Whatever they have made earlier. What they are trying to do this time is instead of going a basic number and then go for above the estimate and all, they've updated the estimates and calling for the bid.
Understood. Thank you, sir.
Thank you.
The next question comes from the line of Siddharth Surin with FirstRand India. Please go ahead.
Thanks for the opportunity. Two questions. One is on there is this invocation of Lombard guarantee, which you had mentioned as one of the note items. Just wanted to understand if there is any impact on the earnings for the quarter on account of that. That is one. Second is on the buildup of contract assets.
You know, the company has been, you had earlier guided that there would be a liquidation which we can see on buildup of these contract assets as the billing would be certified and so on. Basis the commentary we understand that that is taking some time. Can you still give us some guidance as to when we can see the liquidation of the short-term contract assets in the future?
On your first question, Gabon, you know, we have already paid that the bank guarantee invocation. In that contract, anyways we were not recognizing any margin, and whatever was to be provided, we have already provided for, you know, for the expenses. As we have communicated earlier, we have close to 92% or so we had completed the project. Since the contract at the moment, you know, we are not recognizing anything as such thereafter.
Now coming to your second question of liquidation of, you know, some of the contract assets, as I explained that some of the receivables we were in the March itself, we were looking at liquidation, and it could not go through. We are looking at those liquidation maybe, say, by June, we should see a sizable liquidation in the range of, say, INR 1,000 odd crores. With that, you know, we'll see, you know, that getting realized and also, we can look at, you know, reduction in number of working capital days, which we are looking at a elevated number of 140-300.
Thank you very much.
Thank you.
The next question comes from the line of Avnish Tiwari with Vaikarya Fund. Please go ahead.
Hi. Just quick follow-up. These delayed payments you experienced in government projects, did you also experience the same in private side in India?
Private side, we have not seen that.
The government side is mostly state versus center, it's all across the board?
It is, I think, it is across the board.
Okay. Thank you very much.
Thank you.
Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to the management for the closing remarks.
Thank you very much, all the analysts, investors and our friends from the industry, and we look forward to an exciting period ahead. Stay invested. Thank you.
Thank you, sir. Ladies and gentlemen, on behalf of Dam Capital Advisors, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.
Thank you.