Ladies and gentlemen, good morning and welcome to the Q3 and nine months FY 2025 earnings conference call of Dilip Buildcon Limited, hosted by S-Ancial Technologies Private Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Jill Chandrani from S-Ancial Technologies. Thank you, and over to you, ma'am.
Thank you, Alex. Good morning, everyone. Welcome to Dilip Buildcon Q3 and nine months FY 2025 earnings conference call. From the management we have with us today Mr. Devendra Jain, Managing Director and CEO, Mr. Rohan Suryavanshi, Head Strategy and Planning, and Mr. Sanjay Kumar Bansal, Chief Financial Officer. Before we proceed with the call, let me mention the standard disclaimer. The presentation that we have uploaded on the stock exchange, including the interaction in this call, may contain certain forward-looking statements concerning our business prospects and profitability, which are subject to certain uncertainties. The actual results could differ from those. Now, I request the management to take us through the key remarks, after which we can open the floor for question and answer session. Now I'll hand over the call to Mr. Rohan Suryavanshi for his opening remarks. Thank you, and over to you, sir.
Thank you, Jill. The results and presentation have been uploaded on the stock exchange, and I hope all of you had a chance to look at it. On behalf of the whole DBL family, I'd like to welcome all our partners for the quarter third and nine-month FY 2025 earnings conference call. To begin with, let me share some updates on the budget and sector. The current government has consistently focused on infrastructure development of the country and has played a pivotal role in positioning the country as one of the world's leading economies in the near future. This commitment has also created opportunities for millions of people across the nation. In this budget, the capital expenditure allocation stands at INR 1,72,266 crore for NHAI and INR 1,16,292 crore for MoRTH.
Other major allocations include INR 1.5 lakh crore in interest-free 50-year loans to states for infrastructure projects for capital expenditure and reforms. Indian Railways has been allocated INR 45,530 crore. Ministry of Coal has been allocated INR 750 crore. Additionally, an urban challenge fund of INR 1 lakh crore will be established to transform cities into growth hubs while improving sanitation and water infrastructure. To initiate this, the government has allocated INR 10,000 crore for FY 2025, 2026. A significant emphasis has been placed on developing new greenfield airports across the country. All these different initiatives will not just help the sector to grow, but will also help in developing the country's infrastructure and boost the economy. In FY 2025, the government plans to construct 10,400 km of national highways, with National Highways Authority of India targeting 5,000 km.
The government aims to award 12,900 km of highway projects in FY 2025, which is a 50% increase over FY 2024, bolstered by the National Infrastructure Pipeline and the enhanced Union budget capital expenditure. The current government has plans to introduce a new mega-highways construction program that aligns with the 2047 vision of our PM Narendra Modi Ji. The proposed program will establish clear criteria for identifying roads of national importance and also bring changes to the Model Concession Agreement to expedite infrastructure development and minimize contract disputes and litigation. All these activities reflect the government's focus on the sector and on developing the country's infrastructure. During the quarter under review, ordering activity has remained weak across all sectors, which has been the same case for this whole year. Going forward, we're expecting clearing a lot of the order backlog across infrastructure verticals as these orders have been sorted.
To discuss about our financial performance of the last quarter, our CFO will delve deeper in the following remarks, but I would like to provide some contextual perspective. Just like for the industry, for DBL as well, order inflows have remained muted in the past 12 to 15 months, resulting to a decline of 16% in top line on a year-over-year basis and 12% on a nine-month basis as compared to the previous year. Although we are expecting strong order inflows in the next few months, the execution will take time to accelerate to convert in numbers. Hence, we are expecting similar or better revenue run rate for the next years as well. As any EPC company, we have also been impacted due to low economies of scale, resulting in margin contractions. As and when our scale of operations will improve, our margin profile will also improve accordingly.
Now shifting gears and talking a little bit about our investment portfolio of HAM assets. As informed and discussed in the last quarter, we have fully concluded the Shrem InvIT deal. As for the deal, we have received the entire consideration in terms of cash and InvIT units. We continue to receive cash distributions of INR 60 crore to INR 80 crore per annum from the InvIT for our stake. In addition, we will also continue to do the O&M of their assets for the life duration of those assets. As I mentioned earlier as well, this provides us with long-term assured revenue stream. This O&M revenue stream will keep on increasing as our own InvIT asset pool is also getting larger in size. On our own InvIT in partnership with Alpha, we are progressing as per the plan.
Till now, we have transferred 26% stake in seven assets out of a total deal of 18 assets. In these seven assets, we have received COD and annuity has started. In the eighth asset, construction is completed and we have divested 25% stake and will receive PCOD very soon. This will conclude the first tranche of the Alpha deal. Balance ten assets are under construction as per the schedule and will be divested post receiving COD. Our InvIT formation process is also progressing well. We have received SEBI approval for forming the public listed InvIT, and we are hopeful of concluding that in the first quarter of this coming year. Now, coming to our coal business. Our coal MDO business is on an accelerated execution path.
I am very happy to report that we have achieved production of 17.45 million metric tons in the nine months of the year, as compared to our target of 22 million metric tons for the full year. Bear in mind, even the 22 million was a higher target that we had set. As announced in the last conf call, we are on track to even beat that target by at least 10% to 15%, meaning we will end up doing this year with almost about 25 million metric tons of coal production. Finally, coming on our vision of DBL 2.0. I am happy to report that both our long-term revenue-based businesses, that is coal MDO and HAM portfolios, are progressing at a fast pace, which is going to provide us with predictable cash flows and improve return ratios with limited risks and downside.
As I have indicated earlier as well, going forward, when you look at DBL, you will have to look at the consolidated numbers to get a better perspective. The temporary challenges around the standalone business, which has been an industry-wide challenge because of low order book by the government in the last two years. We expect that to also improve going forward, with the government focusing very significantly on infrastructure and continuing to press that pedal even further. You will see improvement happening that side as well, and all the other numbers that we had talked about. Now with this update, I would like to hand over the call to our CFO for the financial overview. Thank you.
Thank you, Rohan. Good morning, everyone. I welcome all our stakeholders to our earning call. Let me present the standalone and console results of Dilip Buildcon Limited for the quarter ended and nine months ended December 31st, 2024. Firstly, the standalone performance. Year-over-year, quarter three FY 2025 versus quarter three FY 2024, the revenue decreased by 16% in quarter three FY 2025 to INR 2,155 crore from INR 2,571 crore in quarter three, FY 2024. EBITDA decreased by around 34%, in quarter three FY 2025 to INR 210 crore from INR 318 crore in quarter three, FY 2024. This is mainly due to lower revenue in quarter three, FY 2025.
Profit after tax also decreased by 7.37% in quarter three FY 2025 to INR 88 crore, from INR 95 crore in quarter three, FY 2024. On console nine months basis, nine months FY 2025 versus nine months FY 2024, the revenue of the company decreased by 5% in nine months FY 2025 to INR 8,221 crore from INR 8,646 crore in nine months FY 2024. The EBITDA increased by 37% in nine months FY 2025 to INR 1,490 crore from INR 1,091 crore in nine months FY 2024. Profit after tax increased by almost 185% in nine months FY 2025 to INR 563 crore from INR 198 crore in nine months FY 2024.
The increase in EBITDA and increase in profit after tax is mainly due to better performance of our MDO business and completed MDOs and exceptional gains from the divestment. Thank you, all. Now we can open the floor for the questions and answers. Thank you.
Thank you so much, sir. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets when asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Shravan Shah from Dolat Capital. Please go ahead.
Hi, sir. Thank you for the opportunity. Sir, first, just wanted to understand in terms of the awarding part, and then for us also. Two, three aspects to understand. One is how many value of projects that we have already bid and yet to be open? Second, how much are we planning to bid by March 2025? Ultimately, if I look at, we have received two projects, INR 2,100 odd crore till date, and we were looking at INR 15,000 to INR 16,000 odd crore in FY 2025. Now, how much are we looking at? If it is on the lower side, for FY 2026, how one can look at in terms of the order inflow for us?
Sir, till now, we have the order that we’ve already sort of bid for is about INR 20,000 crore that we are waiting to open up. In terms of the order pipeline, INR 130,000 crore that we are kind of looking at. That's one part of it. Secondly.
Shravan, as you said, total order book INR 15,000 crore-INR 16,000 crore. Though the last 12 to 15 months, the order inflow is lesser. Based on the already order bidded and the new opening, we think, the target is getting INR 15,000 crore-INR 16,000 crore order from now till next financial year end.
Okay. From now to by end of March 2026, we will be getting additional INR 15,000 crore to INR 16,000 crore net addition.
Right, sir.
Okay. Next 13 to 14 months, we will be getting that. But sir, don't we think that this is much lower? Even if we, let's say, this year, earlier when we were looking at INR 15,000 crore to INR 16,000 crore, obviously the kind of a similar number should be there for FY 2026 also. Net kind of a INR 25,000 crore-INR 30,000 crore versus now we are saying just INR 15,000 crore-INR 16,000 crore by March 2026.
Shravan, we are saying that on a very conservative guidance because the orders have not floated till now by the government. The idea is obviously to be getting a lot more orders than this. But bare minimum our still target will be to do this much. This is a conservative estimate only as you have seen and you track the sector so deeply, you are aware that the ordering has been very muted. We are conscious of some of the external challenges in the sector. Based on that, we are saying. Our endeavor is definitely to do this much higher than that.
Okay. Because, sir, the other question is obviously on the revenue front, so already which is 12% on the standalone business is lower in nine months. Now if we are looking only INR 15,000 crore, INR 16,000 crore, so net even if, let us say, up to INR 16,600 crore already we have, plus we have a INR 16,000 crore addition, so kind of a INR 32,000 odd crore. Out of that, for fourth quarter and in next year, how much then we can look at to do the execution?
Sir, just to sort of reiterate, create a number. See, right now we are sitting in February and the government orders have not opened up. I do not know how much will open up in this year. That has obviously had an impact. Next year, when we have said this, there will be more addition to that. That will definitely kind of happen to that order inflow. Revenue guidance next year also we were saying it will be at least when we started the year, that it will be better or like somewhere in that number because we were expecting a large order book.
As the year kept on progressing and we saw the government orders being muted, we kept on revising that even this year's revenue guideline because it is like the orders that were getting finished were not getting sort of supported by new orders that we would be winning. We revised that. Now the revision this year, we should be doing our revenue of about INR 9,000 crore. Now with INR 9,000 crore, how do I see next year going? Next year, we are expecting similar kind of revenue that we are at least very confident the current order book-
Give the guidance after two quarters.
As the year progresses, we will modify the guidance as we see the government activity on a surer footing. So right now all these are estimations. We are looking into the future. If a year ago you had asked me, "Will this lack of ordering that happened in the year of the election, will that continue in the year after as well?" I would have definitely not assumed by any stretch of imagination. But here we are standing, and still the orders have not happened. What seems to be the delays, I am not the right person to be able to answer that. I think only the government can tell you that. But when it comes to our revenue, I can tell you, okay, there is at least a INR 9,000 crore visibility that we have of our own revenue, given the orders that we have.
Now, going forward, as the orders will come in more, we will do that. What this lack of ordering has done has also impacted our debt reduction program. Now, by the end of this year, we were expecting we would have reduced from last year's number, we would have reduced INR 400 or INR 500 crore more. But now what it seems like, that we will, a combination of less order inflow, a combination of lower revenue and a combination of receivables getting stuck. So these three things from JJM have resulted in our debt not reducing in the manner that we did. So right now we feel that our debt will reduce, will come back to the same number as last financial year. This will be because we are expecting now JJM money from central government is being released.
So that money that will get released, we are expecting some arbitration payments also to come in. So that will also happen. So all those different factors will bring it back to that. The idea of debt reduction that we had started with, that gets delayed by a year. Instead of what we were thinking that we will finish it in this year and the next financial year, instead of that now, the next financial year and after that, we will be completely doing that. This, like I said, our best laid plans have unfortunately not gone in the way that we expected because our external environment was not supporting us in the way that we had planned other things.
Rohan, just to get more clarity. Currently we are, in terms of the net debt, having INR 1,277 crore at standalone. By March, we will be having the similar number of the December number or are we saying it will be similar to the March 2024 number?
Shravan, March 2024 number was INR 1,515 crore.
Yeah.
As on today, December 31, 2024, the net debt number is INR 2,177. We are saying the March 2025, we will close at the number where we were there in FY 2024. So INR 1,500 crore around we will be having the net debt.
Okay. The net debt free that we were looking at that by FY 2027, that remains intact.
Yes. In FY 2025-2026, we are expecting further INR 500 crore reduction. Basically, the debt reduction plan pushed by nine months to 12 months. What we used to do last year, we will do next financial year. By 31st March 2026, the debt will be around INR 1,000 crore or lesser than INR 1,000 crore.
In FY 2027, that will also be a kind of a, we will be a net cash kind of a company.
Yes.
Okay. Just to get more clarity here. From currently close to INR 600 crore-INR 700 crore kind of a reduction in this quarter itself. That is led by what, sir?
That is led by the collection of JJM receivable. As Rohan said, there are some arbitration payments in pipeline. With this cash flow, we will basically achieve the targeted net debt number.
Okay. Lastly, sir, two things in terms of the margin front. Currently 10.5% for standalone EBITDA margin. Versus we were looking at some 11% or 12%. Is there a possibility of further improvement in the first quarter and even for next year? Can we able to do this or 10%-11%, that's the way one can look at?
Shravan, from where we started, the EBITDA has come lower because like I mentioned, there is lower utilization of our fixed assets. The revenue that we had thought we will do, that number is not happening. Because our company model is always been more on our own assets. Whenever there is a decline or dip in revenue, there will always be a consequential decline in EBITDA. That is what has led in that. We are prepared to do much larger revenue than what we are ending up doing. As the revenue improves, the EBITDA will automatically improve. You would have seen that in the past as well, and that's the same trajectory it will follow. Now, waiting for how the revenue stream or the EBITDA will look.
That is, like I said right now, it's as the order book builds up, we will see that and we'll give you better sort of guidance on that. As of now, that guidance of, I think, 10.5% that is happening is a safe sort of haven to kind of go forward with. Given, like I said, the headwinds around where our current order book is and how much we will be able to execute.
Okay. Got it, sir. Sir, I have more questions. Will come back in queue. Thank you and all the best, sir.
Why don't you ask earlier?
Okay. No issues, sir. Sir, the CapEx that we have done was on the higher side. So any specific project where we have done 188 odd crore CapEx versus we were looking at 150. So any specific project which has led this increase and how one can look at in terms of the fourth quarter and maybe even if we are doing let's say INR 9,000 crore kind of a revenue next year, so how one can look at from the CapEx perspective?
Shravan Ji, whenever we speak on CapEx, we speak net CapEx. We said INR 100, INR 120 crore at the start. There are old sale also. Basically net basis, the guidance for next year is also similar, INR 100, INR 120 crore. This year also, the guidance basis is net number. We have basically purchased new equipments for the business.
Okay. Got it. Sir, in terms of now, two, three aspects. One is the InvIT that by 1Q we will be going for a public InvIT. Will it get listed by June 2025 itself?
Yes.
Okay. Got it. For Shrem units, this quarter we have sold some units. Is there any plan to sell furthermore for Shrem?
You are not quite audible. Can you please go to an area where the network is good? Thanks.
Is it better now?
Yes.
Yeah. I was saying that the Shrem unit in this quarter, we have sold some units. Are we planning to sell more units or the balance we will be keeping?
Shravan Ji, basically as of now, we have no plan, but this is the cash flows management keeps on basically assets, but as of now, there is no plan.
Okay. Got it. And sir, in terms of the MDO where we are doing very good. Is there a way as a management we are thinking, so two, three aspects of whether to go ahead for a listing of that entity, subsidiary or JV? Or is there a way where we will be kind of giving the full financial numbers and which can help us to capture that value?
Both your questions. Number one, do we have a plan to list this in future separately? All those decisions will be made at the board level, whether we feel what is in the best interest of our shareholders. If a situation arises where we feel there is a significant value unlocking that will happen with putting it into a separate company, that's a different thing. At this position, there is no such plan, and I'm definitely not in a position to be able to answer that. But at this position, I can tell you that there is no such plan. What we are doing in the DBL holistically is going well. But like I said, these things are always dynamic, and as the situation demands in future, we will take a call on that at a later point of time.
The second part you asked about, is there a plan to also give numbers separately? No. Right now, the way that the company has been giving the numbers in terms of consolidated versus, that is the only plan. If there is any change in how we present the numbers to our investors, again, it will be a decision which the management along with the board will take. If there is any change, we will let you know accordingly.
Okay. And the remaining 10 HAM that we will be divesting to the Alpha Alternatives, when this would be in terms of the completed, in terms of the execution front, by FY 2026 will be entirely completed?
Seven assets will be completed by 31st March 2026, and three in next financial year after that.
Okay. Got it. And sir, do we have any tax related kind of. So on what we report on a standalone PNL level. So this nine months or so, the tax number is on the lower side. So normal is around 25%, but we have a 20.7%. Is there any benefit or it is just a mathematically way it is coming? Normally, one can look at only the 25% kind of a tax rate.
Shravan Ji, you can see the significant part in the quarter is basically from the exceptional gains, and it attracts only capital gain tax. So blended basis it is 20%.
Okay. But now in the fourth quarter, we will not be having any transfer because already just 1% is left in the last eight assets. Whatever will be, it will be in FY 2026 that we will be transferring the assets, seven assets.
Shravanji, you rightly said this quarter will not have any further exceptional gains.
Okay. Thank you, sir. All the best.
Thank you, Shravanji.
A reminder to all participants, please press star and one to ask a question. The next question comes from the line of Saket Kapoor from Kapoor Company. Please go ahead.
[Non-English content], sir. Hello.
Good morning. Yes, sir. Please go ahead, sir.
Whenever there is this opportunity today. Sir, firstly, if we look at the nature of our finance cost, I think so there will be a lot of elements that are clubbed under it. So if you could just give the breakup of, on a console level, INR 320 crore finance cost split between the DBL, long-term borrowing and working capital requirement and our cost of fund, sir. Blended cost of fund.
Our blended cost of funds is around 10%, but basically Infra Company has non-fund based utilizations, also letter of credit and bank guarantees. Basically, the total cost in nine months is around INR 367 crores. We expected this is to be lesser in this financial year, but because of the utilization of additional working capital due to the delays in receivables, the interest cost is not reduced. It is INR 367 crore including everything.
Sir, I was looking at the console numbers. Therein for this quarter it was a INR 320 crore number, and nine months number are INR 940 crore.
Okay. In console, basically there is build on debt cost, and then we have some debt in one core subsidiary and balance debt in 11 under-construction HAM asset. It is addition of these items.
Okay. Sir, what was the closing date for DBL Infra? Last quarter, I think it was INR 350 crore, if I'm not wrong. How has the debt moved there?
INR 81 crore installment we paid in November.
Hello.
Now it is INR 565.
INR 565.
Yeah.
And, sir, closing balance expects for March 2025?
Sorry, I could not get. Can you repeat?
What should we anticipate in terms of the further reduction for the fourth quarter?
Another INR 80 crore. INR 485 crore.
Okay. Rohan, you have alluded to DBL 2.0, and I think so the net cash company program was postponed by one year in your last call. So if you would just give some more understanding in your journey for DBL 2.0, what are the current headwinds that we are facing in terms of, I think so, the order intake part, and the pending process being slower from the government is well understood now by the market. So what is the thought process, sir, currently? Is it the only elections being the only aspect on the premise of which this state of affair for infrastructure as a whole for the country has happened? Or is there any shift in terms of the government focus going there? Just to allude to the fact, DBL is not the only concern which is having this problem.
Whether they are engineering companies in infrastructure or core spacing or even a big giant like Larsen & Toubro, everybody is sounding the same tune. On the other hand, we hear from the government that they are pumping money and creating world-class infrastructure for its citizens. The tax buoyancy on one hand also reflects the fact that there is a lot of traction in the economy, whether it is GST collection, whether it is direct tax collection. Where is this dilemma, sir, that companies who have put the infrastructure and created the workforce for creating the infrastructure are today not being able to get the awards, forget the execution. [Non-English content].
You've asked me a very tough question in terms of the government because honestly, I can tell you what historical data tells and based on which we make our best assessments of how the future should or would look like. Historically, for the last 25 years, this was always the trend that the election year, the orders dry up. The government doesn't focus on giving out new orders, and the focus is on completing, ribbon-cutting, and et cetera.
There is and that's a trend that has been very fairly established since the Vajpayee's era, because that's when infrastructure building really took off in India. Before that, because it was not such a big thing, you could not really find very significant numbers. But since that time to now, we've seen that trend repeat over and over again. Whether that happens at the state level or the central level, it's the same kind of trend that keeps on repeating. When we step into last year and the election year, we realized that there would be those challenges. However, we did not expect that those challenges will continue even post nine months of the new government sort of also forming in. That has because when we hit March or even right now, we are almost there at nine months and this has happened.
Now, why that has happened and what the government is thinking, I'm actually not in a position to say. When combination of factors or whether it's whatever their challenges are or whatever their focus is on, there have been different changes at the top in NHAI, MoRTH. While we were lucky to have the same minister continue, there are obviously different teams below have kept on changing and moving. But whatever is the thought in North Block, I'm actually not best placed to answer that. But I can tell you what our vision was when we started, when we spoke about DBL 2.0, which was born out of, I guess, the despair of COVID, when things were looking very bleak across economies, across the country, across the sector. We had people stuck across the country.
When we started analyzing the issues and the challenges that plague the sector, we made a list of things that we as a company need to be mindful of. The situations can change slowly, and they can also change suddenly. COVID was a sudden change. Slowly, things that will happen is competition will catch up, there will be no orders in flows. There are so many different things that will kind of happen. As we looked at the sector, we saw what are the things that we as a company need to focus on, which will give us, and I mean the shareholders, the best return, and which will also create a company that will be as shockproof from most of these things.
You cannot always mitigate all the challenges and risks that you will receive as a company, but you try and do the best possible job so that there is less volatility. That is how it happened. The things that we looked at was the volatility that was causing the standalone level, debt levels. We realized that while we had had a very CapEx-heavy model, going forward, we did not want to do that at the standalone level. We wanted to improve on the credit rating of the company. We wanted to improve on the credibility. We wanted to make sure that we are spending less and less money in paying interest, and putting more money at the parent level, and putting more money, creating more and more free cash. That was the idea. Number one, reducing debt. Number two, focusing on building long-term revenue streams.
That was a very important bit of it. For that, we realized just a purely EPC business will not do that because our orders will only have a visibility of two to four years of any kind of EPC order. That will never give you that long-term sort of predictability of cash flows that you want. That is where both the coal business and the InvIT business and looking to partner with Alpha sort of came to our mind that we will want to continue this and continue to have cash flows. The long-term goal is to keep building our long-term cash flows and eventually come to a place and position where long-term cash flows and profitability is more than 50%, more than 60%, more than 70%, and keep on increasing that pie.
While we continue to do our EPC business with our current asset base, and with small sort of improvement CapEx happening every year. Like we mentioned, the CapEx earlier, DBL used to do INR 400 crore-INR 500 crore plus of CapEx every year. Now we only do INR 100 crore and around that number. Our focus is to only do replacement CapEx for the next few years, keep doing the max that we can juice out from our assets, keep reducing the debt, keep building the free cash flow, keep building the consolidated business at the site, and keep improving the return ratios. Our ROE, ROC, those are the things that we are kind of focusing on as a company.
And that you will keep seeing initially, like I said, you will keep seeing that improvement first happening in our consolidated P&L because a lot of, like the coal is an SPV, separate SPV, profit gets captured there. Some gets captured at DBL level. Similarly, when you do the InvIT thing and some of the assets that are housed outside, so they will be getting captured. All of these different things, the money that will keep getting thrown into the company will be getting captured on a consolidated basis. The only thing right now that we have as a company struggled with, like you mentioned, everyone in the sector has struggled with is order inflow. Because order inflows have been weak, the standalone numbers have not been to our expectations.
But as and when this wrong gets righted upon, we are very sure that we will accelerate on that path that we spoke about.
Sir, since we are already two-third into, or half into the quarter, I think 45 days into it, to be precise. Is the same line of thought in terms of pending and all continued for us? There is still lack of order inflow for the 45 days. How is the execution cycle shaping up for this quarter, sir? If you could give some understanding on the standalone part, how will this quarter shape up?
Sir, when it comes to ordering inflow, it is anyone's guess how much more the government will sort of release by the end of this financial year. We are hopeful that more and more orders open up. But we can't say for sure when will they finally sort of open those tenders. Like I mentioned earlier as well, we have already bid for about 20,000+ orders that were awaiting opening. Let's see when those open. There are others that we're also bidding for. Again, not in a position to tell you that.
Though I can definitely tell you the coming quarter, the numbers that we have done in this quarter, those are the kind of similar numbers we will be doing in quarter four as well. We kind of expecting that on it, because that is the kind of order book that we have in hand right now. So that I can tell you that will be in that kind of range.
Okay. The console will look slightly better since the execution for the MDO contribution would be higher for this quarter or at similar levels?
It will be at similar levels, sir, because that pace of MDO has already taken up, yeah.
Okay. Right. Sir, secondly, sir, Rohan Suryavanshi and all are related to the promoters, or they are only professionals for the organization? Rohan Ji is
part of the promoter group.
Part of the promoter group. Karan Suryavanshi, he is also belonging to the promoter side?
He is also part of the promoter, yes sir.
Karan Ji is on the call today?
No, he is not on the call, sir.
Okay, because as per his profile, he is for the planning and the liaising with the government part, so I thought if sir was listening to us, he would have given more color on what the similar.
Sir, I think that is a different forum to discuss that. Is there any other question?
Last point here. Specific question is there, sir. When we look at building the organization and other part, what other efficiencies can be built in that we can also declare our results earlier than at the fag end?
Sorry to interrupt, Saket. If you have any further questions, please reach out to-
Yes.
So the management can address.
Allow me to complete. Hello?
Yes, Saket.
I can complete?
Okay, please have this as your last question, and then you can reach out.
Yes, last question only, sir. We, as investors, would like to understand, since the organization is large, we are putting into this the right steps to build a new organization 2.0. Why are the results always at the fag end? Why at 14th, 13th of the ensuing quarter we get to know about the numbers? Why not, as the size of the business is good, we have the systems in place, why are not the reporting happening within 25, 30 days of the ensuing quarter? Why at the fag end, sir?
Sir, the results are always taken and presented once the board members and a lot of other factors that come in. Also, bear in mind that ours is not a tech company. When you see all the sector wide, the numbers, how they are reported, we will also be reporting in a similar kind of timeline. There may be some, there may be sometime we may be earlier, sometimes someone else may be later. But if you look at the general trend, we are at the same level as everyone in the sector. I can't compare with any other sector. When we're comparing apples, we have to compare with apples, not with oranges. So it will be in a similar line as we are, even though we have all the SAP and all the systems there.
Thank you, sir.
Thank you. The next question comes from the line of Shravan Shah from Dolat Capital. Please go ahead.
Sir, just to clarify, sir, you mentioned that the DBL Infra debt is reduced by INR 81 crore and is around INR 565 crore.
Yes.
Okay. Then further INR 80 odd crore kind of a reduction in the first quarter.
Yes.
Okay. Got it. Second, sir, in terms of the current INR 16,600 crore order book, how much of the value where we have still not received the appointed date?
So total, there are two projects. One is Thoppur Ghat. Thoppur Ghat, the same project, and another is Zuari Observatory Tower. There are two projects where appointed date is awaited.
Okay, got it. And sir, in terms of the inventory level, obviously, that's the main thing we are also trying to reduce. But it is still not happening to the way it should be. Though our revenue is on the lower side of absolute or maybe in the days terms also, it looks similar. Is there a thing that we are planning to maybe not have some part of the inventory, which maybe because now we are not having a kind of a growth that needs such inventory even for next year also when we are seeing the similar kind of a number, then why not to release some working capital from the inventory?
Shravan, it is our endeavor, like we mentioned earlier as well, to value focusing on all different areas of the company to keep reducing this as well as our model keeps shifting. But given that we still have all our equipment, which is doing all the job in-house, and there is a significant life there, the model will not change overnight. But there are changes that we are making, and those changes will show gradually the thing that will happen. In terms of working capital days, where we are at was very similar to where the industry is at. This model that we had done was not only done for growth when it came to sort of doing things in-house, it was also a factor of taking complete ownership of a project, completing it within timelines, and building strength in-house rather than relying on someone else.
This model had not been born out of a hunger or thirst for growth that we were doing that. In that case, actually, we would have relied on partners. It was actually based on necessity where at that time the ecosystem was not supportive enough to be able to provide all that we needed to do. Which is why we had to take these matters within our own hands. But rest assured, it is one of the key things that we as a company are also looking at. As we look at improving our return ratios, this is a part of how we will do that. And it's a journey, so bear with us on that. But it's a journey and it will take that time, and you will see improvements happening on it along the way.
Okay. And sir, this InvIT plan we will be listing, so it will have all the Alpha Alternatives 18 odd assets or whatever initially will be where we have achieved the COD that will get listed. As and when the other assets achieve the COD, it will be a part of that InvIT. That is the way or entirely the 18 together will be part of the InvIT and get listed?
Shravan, you are right. First, the completed asset where we have already transferred 26% will go in InvIT. Second part, on progressive basis, the other assets will also basically go into InvIT. But at the same time, in previous calls also, this InvIT is set up for our DBL assets, and the InvIT will basically eye the assets from market also. So from market also, there will be a few assets in the InvIT.
Okay. Got it, sir. Thank you, sir. All the best.
Thank you, Shravan.
The next question comes from the line of Pranav Furia from Antique Stock Broking. Please go ahead.
Yeah. Thank you for the opportunity, sir. I just wanted to understand, sir, is there any vertical specifically that you can target so that the timelines between an L1 and the actual execution is lower and can help you with FY 2026 revenues itself?
Sir, as such, there is no new vertical that we're particularly looking for chasing that will kind of do that. There are already eight, nine verticals that the company is operating in. Each vertical has its own pros and cons. The idea for the company, whenever we've gone into a vertical has been that we try and utilize our equipment bank in all those areas, where our manpower skills, our equipment bank, our experience of working in the state, and with the agencies also comes to help and support that. So that is how we kind of go into it. There is no specific agenda and plan that where from the beginning to execution pace kind of will be the deciding factor for us to choose a sector. Because those things are out of our control totally. In large infrastructure projects, there are a lot of government agencies involved.
There are land acquisition challenges. There are multiple sort of things that you look at. So that is never the decision-making criteria for us as a company.
Got it, sir. Could you just highlight one or two sectors from the current order book which have the lowest time gap between L1 and execution historically?
Sir, it all depends on project to project. Like I said, there can be times where you could have started even a road project where there was great clearance. I can give you the quickest that a company has done a road project has been six months. It was a two-year project which was completed in six months, and we won a lot of early completion bonus in that. Now imagine from the date of appointment to finishing a project in the next six months, it was done in one-fourth of the time because everything was clear, given, and you could do that kind of execution. It all depends on multiple factors. It would be misleading to give you, here this is what would be the best.
Got it, sir. That's it from my side. Thank you.
Thank you.
Thank you, sir.
The next question comes from the line of Sanjay Parekh from Sohum Asset Managers Private Limited. Please go ahead.
Yeah. Thank you. One is, in our coal subsidiary, we have done very well. Is there scope for further contracts? I mean, we are at 25 million run rate, which is commendable, and our target is to go to 50 million. The question I have is, can we get more contracts on this? Secondly, are we on a run rate of 50 million plan that we have?
Sanjay, we are very actively looking at this sector. It is a sector that we have been there in for the last seven, eight years, and we have expanded and significantly ramped up our presence in it. We are constantly looking for coal projects, both domestically and internationally, to keep supporting. It is a sector that we now understood pretty well and we want to do that. In terms of run rate, the plans for both the MDOs ramping up, see, one, there is Pachhwara MDO and then there is Siarmal MDO. Pachhwara, we are already doing at peak capacity. In Siarmal, every year we have to keep increasing the capacity over the next three years. That is happening, that is happening at an accelerated pace. We will continue to increase the coal output every year.
Sanjay, to add it's [Devendra]. In Siarmal, already the peak requirement is 50 million tons. This year we are ending at 18 million tons, next year 25, and so on. In FY 2028, the peak project capacity of 50 million tons will be achieved. With these two MDOs, we are already at 57, and we are looking for new projects as well.
Sure. Secondly, our target of final InvIT value of our share of INR 4,000 crore in two and a half years. Are we on track on that?
Sir, the number is given in the previous call, is there. However, the final valuation is underway once the InvIT document is filed. But we are having the similar kind of numbers.
Yeah, so it could be INR 200 crore-INR 300 crore here or there. But broadly, the price to book multiples that we've agreed upon, broadly we should take us through a final equity value of INR 3,700 crore to INR 4,000 crore.
Sanjay, the multiple will not change. The change is only due to some de-scope on the BPC value. So around still same. If anywhere, while the project is ending, there is a de-scoping of 50, 60 crore all together, so BPC will change, and accordingly, BCC will be changed. So the valuation of INR 50, INR 100 crore goes up and down. The multiple is the same.
Sure. And one basic thing, so 26% you transfer in this other assets, and 74%, when it becomes a public InvIT, also you transfer in that? Is that the way? I am just not clear on that. The balance 74%.
No. Basically, the deal with Alpha is, basically we will sell 26% in two buckets, eight assets first and then 10 assets. Alpha will transfer their 26%, and we will transfer our 24%.
In InvIT.
in the InvIT.
Okay, got it. Perfect. The last one, you did discuss on order inflows not happening. A bit of it is government-related. Because ours is a high fixed cost of our own equipment, our own manpower, which works in a cycle which is really roaring because your efficiency and margins can get better. But if you were to go asset-light and people-light over a period, because we are cyclical in order inflows, the industry is in a cyclical way. Can we do it or it is difficult to change over a period of time? Not one year, but three to five years. Is it possible or no?
Already, Sanjay, if you look at the company in the last three, four years, to de-risk, we have adopted diversification and asset-light model. Everywhere, if you look at revenue versus equipment, in Jal Jeevan Mission, a different set of equipment is required. In dam it is different, in road it is different. So in this way, asset-light versus company asset, we have worked on a combination of a hybrid model. The best way to de-risk it is that you should diversify. So in five, six years, we have diversified in about nine sectors in the similar nature of the work. Similar, like if we have a concrete batching plant, it is used in the dam as well as in the Jal Jeevan Mission. So in this way, by combining asset-light and company asset, we are already working on a hybrid.
The investment that we have not made in equipment in the last five, six years is because of that.
Sure. The last one, while, of course, all of us are disappointed with the government coming back on order book. Do you think January onwards, because we do see now numbers coming up, because they also have to spend as per the budget, and for them to revive also, they have to give orders. But you are on the ground, so at state and center, do you think six months ahead things will be really good, or you think it will be still a little slow and steady? Because that is important, Devendra, if you can guide us there.
Sanjay, the worry is only when the project is not floated. If you look at everyone's call, all the companies in our infra space, companies like ours, everyone has said that NHAI has already floated bids of about INR 1.3 lakh crores due to different reasons. Somewhere land is less, somewhere their clearances are pending. So 100%, by the time we reach Q1, this activity has to pick up fast. The only concern is when there are no bids anywhere.
We are not much worried about the state government projects. If we look at the central government's bid process, there are many bids in the pipeline. Already the government has not declined in the budget, even a little more budget has been given for FY 2026. So I see this activity being quite fast till Q1 on ground, if I go by my experience.
Okay. Last month, in the states, like all these Ladli Behna Yojana and all the populist schemes that have happened, because of them, their ability has decreased. Is that how you feel state-wise? Because other than roads, NHAI and MoRTH, our other verticals, in those states where we are working, do you think things got stuck there and will take time, or you think there also you are seeing state-wise things getting better?
In the state, it depends on which ruling party the state is under. State government-based, the limited projects we have, in Jal Jeevan Mission projects, already 75% is the Government of India's participation. That is fine now. Otherwise, in Gujarat and other states, in state-related projects, no such funding problem is visible yet. The schemes you are mentioning, Ladli Behna and others, will definitely have an impact somewhere in the future. DBL's strength is that we usually target central government and central government funding-based projects more.
Got it. Thank you. Thank you very much and best wishes.
Thank you.
The next question comes from the line of Bhavin from Anand Rathi. Please go ahead.
Yeah, sir. Just wanted to understand, sir, what is the money we received for divesting 25% stake?
Sir, I wasn't able to hear you. Your voice was not clear, sir.
Can you hear me now?
Yes, sir.
Yeah, sir. Just wanted to understand what is the process we received by divesting 25% stake in one of our HAM projects.
Hello, can you repeat your question, please?
Yeah. Am I audible?
Yeah, you are audible.
Sir, just wanted to understand what is the proceed that we received on divesting 25% stake in one of our HAM projects.
From Alpha, against eight assets, we received a total of INR 457 crore money.
Okay, sir. Got it. And sir, just wanted to understand, sir, I understand you briefly mentioned, but just wanted to understand how are we going to transfer the asset to the InvIT? Are we going to transfer the entire 74% or we will retain some part of the SPVs even after the InvIT is formed?
No, 100% will be transferred to InvIT, 26% Alpha will transfer, 74% we will transfer. There will be no case Alpha or DBL will have some equity out of those assets.
Okay. Sir, and just one more point from the balance sheet perspective. Once these assets are transferred, this 74% stake is transferred, then will this be accounted as a subsidiary or will it be accounted as a fair value investment to P&L? How will you-
Fair value of the investment units.
Okay, sir. Got it. Thank you, sir. That's one point.
Thank you so much.
Thank you. Ladies and gentlemen, the next question comes from Vignesh Iyer from Sequent Investments. Please go ahead.
Thank you for the opportunity, sir. My first question is on the coal part of the business. I was checking our H1 numbers. It was around 10 million tonnes, which has now increased to 17.5 million tonnes, which is a huge increase, if I have to see. I understand that there is seasonality in the business. Can I understand what part of our sales and EBITDA for quarter three FY 2025 accounts from coal?
Sir, we don't give out vertical-wise EBITDAs. We give a mixed blended number only.
Okay, sir. Sir, also coming to the interest part of it, I heard you earlier when you said that there was some increase in working capital primarily due to receivables. Sir, I was going through the last year's annual report, and I see under the aging schedule, there are certain receivables which are more than three years, which accounts to around INR 1,950 crore. Since then, from quarter one, quarter two, we have consistently seen an increase in our interest outlay at a consolidated level. Can I understand how the aging schedule has panned out in the last nine months and what kind of numbers can we look forward to in an FY 2025 annual report?
Vignesh, on a one-to-one basis, we will discuss these numbers. However, if there are old debtors and not receivable, we have made sufficient provisions as per the provision metrics.
Okay, sir. Got it, sir. That's all from my side and all the best, sir.
Thank you.
Thank you. Ladies and gentlemen, that brings us to the end of the question and answer session. I would now like to hand the conference over to Mr. Rohan Suryavanshi for the closing comments.
On behalf of the whole DBL team, I would like to thank all the participants who came today and asked questions. In case we were not able to answer all your questions, please feel free to reach out to our team at S-Ancial or our internal team at DBL, and we will be very happy to answer any more questions that you guys have. Thank you, and I wish you guys a great year ahead.
Thank you, sir. Ladies and gentlemen, on behalf of Dilip Buildcon Limited, that concludes this conference. You may now disconnect your lines.