Ladies and gentlemen, good day and welcome to Q1 FY 2024 earnings conference call of Dilip Buildcon Limited, hosted by S-Ancial Technologies Pvt Ltd. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Jill Chandrani. Thank you, and over to you, ma'am.
Thank you, Mr. Aman. Good evening, everyone. Welcome to Dilip Buildcon Q1 FY 2024 earnings conference call. From the management, we have Mr. Devendra Jain, Managing Director and CEO; Mr. Rohan Suryavanshi, Head, Strategy and Planning; and Mr. Sanjay Kumar Bansal, CFO. Now I request the management to take us through the key opening remarks, and after that, we can open the floor for Q&A. Now I hand over the call to Mr. Rohan Suryavanshi for the opening remarks. Thank you, and over to you, sir.
Thank you, Jill. Good evening, ladies and gentlemen. A very warm welcome to all of you to the quarter one FY 2024 earnings call of Dilip Buildcon Limited. The results and presentation have been uploaded on the stock exchange, and I hope all of you have had a chance to look at it. Before I begin, let me mention our standard disclaimer. The presentation that we have uploaded on the stock exchange, including the interaction in this call, contains or may contain certain forward-looking statements concerning our business prospects and profitability, which are subject to some uncertainties, and the actual results could differ from those in such forward-looking statements. Let me now share insights on the macroeconomic environment, the sector, and give you some company updates as well. Following that, our CFO will present the financial update of the company, post which we will dive into a Q&A session.
Firstly, from a global perspective, growth momentum is pretty stagnant, especially in manufacturing and investment segments in the face of moderating headline inflation with a sudden core. Market expectations of future interest rates have gone up in response to a hawkish policy stance by central banks around the world. Equity prices have flattened, and bond yields have hardened. At the same time, the big picture in India is that the manufacturing and services activity continue to grow, with some sequential moderation in June in composite terms from a 13-year high in April and May. Coincident indicators for the construction sector have grown robustly, with cement production at a six-month high on the back of strong public spending on infrastructure and good private sector demand as well. The government's GST collection for the quarter was INR 462,793 crore.
The real GDP growth for 2022-2023 was placed at 7.2%, higher than the second advanced estimate of 7.0%. According to RBI, the real GDP is expected to grow by 6.5% during 2023-2024. According to World Bank and OECD, India is estimated to remain among the fastest-growing large economies in 2023, despite some sequential moderation in economic activity in June. Now let us look at some updates for the sector. For the quarter ended June 30, 2023, MoRTH has constructed 2,250 km and awarded 611 km. Four certificate land acquisition notifications were issued, and land acquisition compensation of approximately INR 1,178 crore were processed for the quarter. The government is amping up its highway building target for the current year as it aspires to fast-track infrastructure in a year of multiple state polls and ahead of the general elections next year.
The government has set its target of quarterly construction to about 30th kilometers and plans to construct approximately 14,000 km of national highways. The breakup of this is as follows. About 6,000 km will be built by MoRTH, about 6,000 km will be built by NHAI, and about 1,500 km- 2,000 km will be built by NHIDCL. The government also has plans to raise about INR 30,000 crore from TOT and INR 15,000 crore from Infrastructure Investment Trust on interest. The total capital expenditure of the Ministry of Road Transport and Highways for FY 2024 has been set at INR 2.58 trillion, which is an increase from the INR 2.06 trillion spent last year. According to a recent press release, MoRTH targets to achieve 91% of this CapEx outlay by December 2023, given the general election next year.
They will try to do that, and that is what they are saying. Now let me come to our company performance for the first quarter of FY 2024. Our order book was INR 24,051 crore at the end of June quarter, 37.1% of our order book comprised of roads and highways. Mining constitutes 18.1%, irrigation at 17%, water supply at 12.4%, tunnel projects at 7.3%, metro projects at 5.7%, and special projects at 2.4%. We are happy to inform you that we have a very diversified order book with orders in all these sectors are firing in every different state that we are working in. It is also great and my pleasure to inform you that the current orders floated by NHAI is about INR 1 lakh crore already, which we are expecting to build in the coming quarters. All of these will be coming finally.
Another sector also has a nice order pipeline coming in all the sectors that we are currently working in. Our strategy of diversification has really helped us there. Let me also give a recap of some of the guidance that we had given on the earlier call. On the revenue front, we had guided that we will grow at about 8%-10%, so we are targeting that. Our EBITDA, we had guided about 13%. We had also guided for a debt reduction of INR 800 -INR 1,000 crore. We are confident, and we will start seeing that sequentially from next quarter onwards with the larger reduction happen in the final two quarters. Finally, we are targeting about INR 10,000 -INR 12,000 crore of new orders in this year, and this will be across all the sectors that we are working in. We are also targeting some moderation in working capital cycle days.
We're thinking that about 8 - 10 days of reduction will happen there. That's our aim. As for the CapEx, we had already mentioned earlier as well, that we are looking to now not do any large CapEx and only replacement CapEx. Even this year, we're only targeting about INR 50 crore -INR 75 crore. Our target is to focus on becoming a debt-free company in the next two to three years, and that's where we are kind of focused on. That's the biggest goal for the company, improving and strengthening balance sheet along with keeping and continuing to do the diverse sectors that we work in and sweating our assets more and more. Let me hand over our commentary to our CFO, who will give you insights and comments on the financials of the company.
Thank you, Rohan. Good evening, everyone. I welcome all stakeholders to our earning call. Let me present the results for quarter ended 30th June 2023. During the quarter and up to the date as we speak, we have completed two projects, same projects. Pathrapali-Kathghora Package II of Bilaspur-Kathghora section in the state of Chhattisgarh under Bharatmala Pariyojana of worth INR 487 crore. The second project, Dodaballapur Bypass to Hoskote section in the state of Karnataka under Bharatmala Pariyojana of project worth INR 1,278 crore on 21st July 2023. Further, during quarter one 2024, the company won an irrigation project worth INR 699 crore for construction of Malhargarh , construction of a project on turnkey basis in the state of Madhya Pradesh. Now, moving from business to the financial performance.
The revenue marginally decreased by about 1% in quarter one FY 2024 on YoY basis from INR 26,215 million in quarter one FY 2023 to INR 26,084 million in quarter one FY 2024. This is due to delay in execution of old highway projects. The EBITDA increased by 63% in quarter one FY 2024 on YoY basis from INR 2,054 million in quarter one FY 2023 to INR 3,348 million in quarter one FY 2024. The EBITDA margin increased on account of better execution of the projects and reduction in the commodity prices. Now, come to the profit after tax. The profit after tax increased by 321% in quarter one FY 2024 on YoY basis from INR 198 million to INR 834 million in quarter one FY 2024. The PAT margin mainly increased because of the better EBITDA margins in the quarter. Now let me take you through some important balance sheet items. The capital expenditure during the quarter was at INR 430 million.
The inventory decreased in quarter one FY 2024 by INR 675 million from quarter four FY 2023, which is mainly on account of reduction in WIP. The debtors increased to INR 18,633 million in quarter one FY 2024 from INR 16,664 million in quarter four FY 2023 on account of debtors booked at the quarter end. Let me tell you, these debtors were realized subsequently. The net debt to equity ratio marginally improved from 51 basis point in quarter one FY 2024 versus 52 basis point in quarter four 2023. The working capital days increased to 75 days as of 30th June 2023 versus 70 days as on 31st March 2023. This is mainly because of the increased debtor position as of 30th June 2023, and as I said, these debtors were realized subsequently. Now we can open the floor for the questions and answers.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Our participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. First question is from the line of Shravan Shah from Dolat Capital. Please go ahead.
Thank you, and congratulations on the significant improvement in the EBITDA margin. The first question is on the same. Definitely we have highlighted all the guidance numbers, but just trying to reconfirm or trying to re-understand further, this EBITDA margin, 12.8%, and now we are saying that 13% for this year. From here on, we will be seeing a steady state of improvement or maybe the same run rate of EBITDA margin. That's the first question I wanted to understand.
Yes, Shravan. The EBITDA margins will remain in the same, and whatever guidance we had given. We had given 13%-14% EBITDA margin, and the numbers will basically progress in that manner.
Okay. Secondly, on the debt reduction front and the asset monetization. Last time we have talk about the MoRTH HAM projects we want to monetize, where we have a INR 900 odd crore kind of equity investment, and we are expecting the entire cash to be received this year. What is the update? If there is any delay in receiving the cash of this INR 900 crore equity invested, will data debt reduction will get postponed maybe in 1 Q or 2 Q of FY 2025?
Shravan, that process is underway right now. That whole mandate is currently running. We are in negotiation with a whole bunch of investors. What we had stated earlier as well, that we are only expecting about whatever money, only about half of it to come in this year or whatever the whole deal is. We are only expecting about half of it to come, because all these projects, as they're getting completed, we'll only be able to transfer in a whole bunch of projects only 49%, and the rest 51% we'll be able to transfer the next year. So that money will also come accordingly with that. So we have accounted those calculations when we have given you the guidance of INR 800-1,000 crore. We are, right now, as things stand, we expect everything is running as per the time schedule that we had anticipated.
Let me add, Shravan. On the equity investment side, FY 2023-2024, the total equity requirement was INR 825 crore. Out of that, INR 268 crore is already invested in quarter one. We have balanced INR 544 crore equity, which is to be invested into quarter two to quarter four. These equity investment will be basically mainly in the HAM projects, which is INR 503 crore and INR 41 crore in the coal project.
Yeah. I will come to that also. We'll want to understand further that. So it's good that we are on track and hopefully we will be completing the monetization. Second, just to understand in terms of the pipeline. So till now, though, we have just received INR 700 odd crore order inflow. We are looking at INR 10,000-12,000 crore. Definitely, we have said that the NHAI pipeline is INR 1 lakh odd crore. But are we kind of confident that before the quarter of maybe October and November, we will be able to get this much orders?
Shravan, as you are well aware, and you've been tracking the sector for a very long time, there were a lot of orders in our sector happen in the second half of the year. Historically, for every year, that has been true. So we are expecting the ordering to continue in such a manner that will happen. Now depending on how much quickness the government does in different areas, we are looking. But the good part is there are healthy orders which have already been floated, and then there are a lot others that the government is in the process of floating in the different sectors that I mentioned earlier that we work in. So our confidence comes from that. Also important to note, again like I mentioned, that about almost INR 1 lakh crore of NHAI orders are already floated.
There is a huge pipeline of orders that is there, that is available, so it should come. We are expecting the kind of bid targets that we have kept. We are expecting to get decent amount of orders, and we are giving a very conservative guidance anyways of INR 10,000 crore -INR 12,000 crore that we have been winning every year anyways.
Okay. Just further to understanding in terms of the two, one is on the appointed date for HAM, we have already mentioned in the presentation. One more mining project is a big one INR 2,274 crore Amadand OCP. When are we going to receive the appointed date for the same?
Currently, basically, that project is delayed. Basically it is in delay, we can say.
Okay. But no clear idea in maybe next six months, are we going to get? Just trying to understand in the sense that these four HAM projects, around INR 3,500 crore EPC value in order book and this INR 2,200 crore. So what we are looking at 8% - 10% kind of a revenue growth for this year. This quarter, we have not done anything. So 13.7% or 14% as credit is there for nine months. So that is what I am just trying to understand. Are we able to do that? And apart from this, is there any project delays in any of the other projects where there is a still risk that this 8% - 10% that we are looking at can finally turn into a 5% kind of a number by the year-end?
Shravan Ji, when we have given the guidance, we have accounted all what you have mentioned in there. We have accounted the delays in the Amadand mines also. Amadand mines, there is a delay on account of the land issues. We are expecting that will be resolved soon. But right now it is very difficult to say anything about that. But whatever you have mentioned, we have accounted and we are confident that whatever guidance we have given for the revenue, we will achieve that.
Okay. Lastly, on the HAM part, just trying to in terms of the equity, the first is on this [RAM]. Whatever the deal we have done, INR 2,349 odd crore that we are going to receive and we have already mentioned that INR 676 crore we have received in cash. Further, how much more cash that we are going to receive? Just trying to break this INR 2,349 crore into cash and the InvITs. Timeline definitely we have mentioned. Just broadly, what would be the cash and the InvITs number?
Basically, Shravan Ji, as you know, till today we have received INR 868 crore worth InvITs units. From even last quarter, we are receiving only cash consideration. In future, there will be no further units plan to be issued. Whatever asset we will divest from now, everything will receive in cash. As on today, out of the 10 projects, nine projects are divested. Out of nine, seven projects 100% divested, two projects 49%. The balance, one project 100% and two projects 51% will be done within this quarter, means August and September, and one asset 51% in December first half. Basically with that, the entire 10 asset deal will complete.
Yeah, that I understand. Till now we have received INR 869 crore InvITs and now onwards we are not going to receive any InvITs. Whatever will come, will come as a cash.
Right, sir.
Okay. Second, just part to understand the equity that we want to invest in 18 HAM projects. That definitely from the last presentation, we have excluded this INR 987 odd crore. So INR 978 million equity invested as on June, the number what we have mentioned in the presentation. What would be the like-to-like number as on March 2023? Just three months before, what was the number? Just trying to understand how much equity we have invested for 18 projects in one quarter.
Shravan Ji, once again. The five HAM project which is completed is removed from the requirement and actual equity invested. I am saying the five projects, the required equity was invested. There is no reason to keep this equity requirement on the completed projects. So we removed from the requirement and invested equity. So INR 986.5 crore reduced from the requirement and the similar amount reduced from the actual invested because those projects already completed. You can add up the same numbers what we gave in the last quarter presentation will match.
Okay. Broadly, just the DBL infra, that INR 750 odd crore, that number remains the same, the date number remains the same?
Yeah, that number is the same. We have in fact paid down a little bit there in DBL infra.
Okay.
Yeah.
Okay. Thank you, and all the best, sir.
Thank you, Shravan Ji.
Thank you. A reminder to our participants, please press star and one to ask a question. The next question is from the line of Narendra from Robo Capital. Please go ahead.
Thanks for the opportunity and congratulations on a good set of numbers. My first question would be regarding the debt and equity that you are planning to raise. What is the reason for that, and regarding the equity raise, what would be the method of the raise? If you could throw some light on it.
Narendra, first of all, we are not planning to raise any further equity from now. If you are referring to our equity, that is from the monetization. We are not trying to raise any secondary or primary equity from the equity market.
Okay. In the document that you have submitted, I mean, the results, you have said that consider the issuance of further shares. What is that? If I could understand that.
Sir, that is a permission that we have got every year from the time we have come listed, that every year as a prudent policy, a lot of companies do that, whether it is for equity raise, whether it is for NCDs, for all those bunch of different things that you see. It has been there for many last many years. That is not an indication of us looking to raise any equity or raise any other funds. It is just an enabling clause. That is all that it is.
Okay. Got it. Can we on the top-line plan. We have seen excessive rains across India in this quarter. Is that—
Sorry, Narendra, your voice is not very clear.
Yeah. Is it okay now?
Yeah, better now.
Yeah. I was saying regarding the top line, we have faced excessive rains across India in the second quarter. Has it affected our execution rate, and what could be the effect of it on our top line? Any indications that you have got?
Sorry, sir, I didn't understand what you said. Your voice again wasn't very clear. What on what top line?
Sorry. The rains that we have is across India in the Q2.
Narendra, are you using a handset? May I request you to come on a handset, please?
Yeah. Actually, okay, no problem. I'll rejoin the queue.
Okay. Thank you.
Narendra, if you are referring to the rains, heavy rains on various parts of India, let me tell you, whatever guidance we had given, the company will achieve those numbers. We are very confident.
Okay. Yeah. That's what I was asking. Thank you.
Thank you. Any participants who wish to ask a question at this time, they may please press star and one. The next question is from the line of Janmejay Gandhi from IVG Trust. Please go ahead.
Hello. I wanted to understand, sir, about the Siarmal project coal mine that you have got. What is the projection for this year and next year, and what is the margin are you expecting on this front?
Basically, the project has achieved appointed date on 2nd January, 2023. The project is in production. This year, the first year of our operation, we will do 7 million tons of coal excavation, and the revenue is around INR 550 per ton. Basically, there will be INR 1,000 crore revenue, and the margins would be in the range of 20%-25%, and this project is in subsidiary.
Sir, it will be consolidated with the balance sheet, right?
Sorry, sir?
Sir, the financials of the performance of this company would be consolidated with the balance sheet.
Yes.
The profitability also would be visible in the numbers in the consolidated performance.
Right. On full year basis it will.
So, for this projection for this year, have you included this profitability?
We have given the projection for the standalone numbers, not for the consolidated.
Sir, and what is the growth are you expecting for the next two years in this coal mine?
Let me tell you, this coal mine has a fixed production plan. First year it was 5 million ton, then 10 million ton, then 16 million ton, then 25 million ton, then 35 million ton, and sixth year it will achieve the optimum capacity, which is 50 million ton, and that will run for another 19 years. So in 25 years, we will excavate 1,091 million ton in total.
At a price of INR 550 per ton.
No. The current price is INR 550, but the price is linked to the inflation numbers, the CPI, WPI.
Okay. Sir, I understand this year it will be 1,000, next year around 2,000, and henceforth according to the plan.
[Non-English content] If we do 525 multiply by 7, then around INR 350 crore revenue comes this year. Next year we will do the 10 million, so then that will be 500 million, and then next year 16 million, then 25 million, and incrementally [Non-English content] . This is the revenue guidance for that project.
Okay, sir. Thank you very much, sir.
Thank you. A reminder to participants, please press star and one to ask a question. The next question is from the line of Prem Khurana from Anand Rathi Shares. Please go ahead.
Yeah. Thank you for taking my question, sir.
Prem, your voice is not very loud and clear. Please—
Give me a second.
—speak up a bit or use the handset. Thank you.
Is it better?
Yes.
Thank you for taking my question, sir. Sir, just bookkeeping sort of question. Just want to understand, did we receive any payments or cash consideration from Shrem during the quarter, and how much was infused by us in the HAM projects? Because when I look at the cash flow statement, it seems that we have infused INR 190 odd crore, but if I try and reconcile it with our presentations, the presentations suggest, we have received some payments because the cash received number, which was around INR 454 crore last quarter, has gone up to INR 675. So this INR 190 crore is adjusted for the money that we've received, or how does that work, or is it that these were part of the loans and advances, so not exactly comparable?
If you are referring to the slide of the presentation, it is up to that. We have not received any money from the Shrem InvIT during the Q1. The money has been received during the Q2.
Okay. How much did we infuse during Q1 in our hybrid annuities?
Total investment was INR 268 crore. Mainly it is in HAM only, INR 268 crore.
Okay. How do I reconcile it with the INR 190 crore that you show in your cash flow statement? Purchase of investment is INR 190 crore. When I look at our balance sheet numbers, I can see that increase in investments, INR 190 crore, but at the same time, loans and advances have come down by INR 70 crore-INR 80 odd crore. How do I reconcile INR 268 crore, and where does it lie in the balance sheet?
Prem, there are the two types of investment we made in the HAM project, one through the quasi-equity, that is the unsecured loan, and one through the equity.
Okay.
You will have to reconcile separately. It will not directly reconcile with the cash flow statement.
Okay. No, because, generally, the money that you invest in the form of quasi-equity forms a part of your loans, right? Loans seem to have come down during the quarter. No worries, I will get in touch with you, and I will take it offline.
Yes. Because there is some repayment also of the unsecured loan. That will not simply reconcile with the cash flow statement.
Sure. Rohan, just small, if you could help us understand a little better the pipeline that you spoke about INR 100 crore of NHAI prospects that you talk about. How much do we intend to bid for out of this INR 1 lakh crore, and how would the split be between EPC and HAM if you could share these things, please?
Sir, the split is as we've done in the past as well, 60% target of about HAM and 40% EPC. All these things are obviously very dynamic based on how the bidding is happening at that point of time, how do we see competition, and a whole bunch of other factors, and a whole bunch of what projects we won in that area. So it is very difficult to just state a number of the cuff, but that's it. The pipeline is looking healthy and those numbers have been quoted. Even if you look at the year in the last few weeks, even last year, we bid for more than the overall projects that we bid for other companies was over INR 1 lakh crore that we had bid for.
Okay.
Our bidding team is geared and capable enough to handle and bid for that kind of orders in a year. So yeah, we are fairly confident that given this is the year before election, the government will try and put out as many projects as possible.
Sure. Just one last, when I look at the history, generally, whenever you get to have general election, the preceding year generally tends to be somewhat curtailed in terms of awarding activity, because you get to have code of conduct, which is where generally you get to see some sort of slowdown once the code of conduct comes into play. Would you believe we'll get to a somewhat similar situation of which is where most of these projects would have to come out either in Q2 or Q3 because Q4 again, most of these government authorities would be busy with the election preparation?
Yeah, sir, I think it's fair to assume that Q2 and Q3 should be heavier activity than Q4, as you rightly said. The end of Q4, we come to about model code of conduct. Somewhere in the time of March or in that range it starts kicking in. Hence, we also expect more to happen there and whatever can happen before that, you are okay. Given the high budget that the government had announced for infrastructure, the government probably when they announced because the capital expenditure for infrastructure went up from INR 7 lakh crore last year to INR 10 lakh crore this year.
Sure.
It was a 40% increase in CapEx for infrastructure. The government obviously had a clear intention on increasing the outlay and wanting to push out projects. Even all the commentary that you will see from the different departments has been in line with that. So we are hopeful that they should do it, otherwise they would have not announced such a large budget and also compound it everywhere.
Sure. Any update on Bharatmala Phase II? Because, in Bharatmala Phase I, there's hardly anything left. It's only for a couple of years that you would get to have something come from NHAI. Any update on Bharatmala Phase II in terms of whether they are working with DPR?
I would not be the best person to be able to give you update on that, because government schemes are run with the government having their own thought process. I think the government would be a better place to answer that, sir.
Sure. Thank you. Thanks a lot for that.
Thank you.
All the very best for future.
Thank you, sir.
Thank you. The next question is on the line of Shravan Shah from Dolat Capital. Please go ahead.
Sir, just continuing the previous question. Till now, how many projects that we would have bid and where the bids have yet not opened?
Currently, there are about 10 projects that we bid for, where the bids have not opened up till now.
What would be the broader value?
I think roughly about INR 10,000 crore in all sectors. This is in all the different sectors that we do well.
Sorry, sir, INR 7,000 crore, you say?
INR 10,000 crore.
INR 10,000 crore. Okay. Just though you mentioned in the previous reply that you are not the right person in terms of the Bharatmala Phase II, just a broader perspective of whatever your understanding in terms of, is there in terms of the broader when the Bharatmala Pariyojana Phase-I started, it started with INR 5.75 lakh crore and only INR 2 lakh crore finally. This phase two, do you think that this size could be just similar, INR 5 lakh crore, INR 6 lakh crore, INR 8 lakh crore? Or now most of the road phase is kind of done and the remaining small patches are there, so the value could be much low.
Shravan Ji, Bharatmala Phase I is over. There are enough and plenty roads to be made in India, and there is a lot of upgradation to happen from, like you mentioned, two-lane roads getting to four-lane, and four-lane to six-lane, and onwards. All of that is happening, and all states are also focused on building expressways and all. There is a lot of work that is happening. For me to be able to comment on how exactly will the government schemes pan out, I would not be the best-placed person. But we know the intent of the government. They have come out with a very detailed paper on the National Infrastructure Pipeline. They have mentioned in a lot of detail what they want to do. I think referring to that, and then looking at and having conversations with the government would be a better place.
But even they will not be able to give you such a long plan. They can say, "Yeah, this is all that we are intending to do." How and when, and how much will happen, and what pace will happen is also a function of the government that comes to power, and what is their intent and the minister and all. A lot of things that will affect that. But I think directionally, there seems to be a healthy pipeline of orders across infrastructure sector. One thing I would definitely like to highlight, right now, if you look at our order book, less than 40% is in the road sector. It is not like we are dependent only on the road sector. And there are a lot of orders coming in all the different sectors.
Our idea of diversification that we started, the journey that we started in 2015- 2016, has come handy given how much competition we are seeing in this sector as well. I think for us, we are more focused on winning good quality orders across all the sectors that we are working in, sweating our assets, not making any large CapEx commitments, and that is that for us.
Okay. Sir, again, in terms of just coming on the number on the HAM part. Once these three HAM projects, which is still to be transferred to Shrem, once that will be transferred, in terms of on standalone books, whatever the equity till now we are showing part of this INR 998 crore, how much will be removed from that?
You mean like the equity that is on the presentation right now? Once you transfer these assets, how much will get reduced from here?
Yes.
Basically, the completed project, whatever project begins to be divested to Shrem Capital, like Shrem InvIT, that is already removed. There will be no further removal from the equity requirement. All the projects are already removed from the equity requirement because completed.
No, sir, I am not saying equity requirement. I am saying whatever we have invested and which is part of INR 998 crore, what we are saying we have already invested. This is only in 18 HAM projects and the 10 Shrem projects is already out of standalone balance sheet. That is what we are trying to say?
Yes.
Okay. Got it. Just trying to understand, the Shrem InvIT is in the DBL infra books and not in the standalone books?
Sorry, we could not get your question.
Shrem InvIT, whatever we have received, it is shown in the DBL infra books and not DBL standalone books.
Shravan Ji, whatever we have removed, the equity capital is still there in the book. But for the sake of clarification, whatever acting project is there, that is also in the book. And whatever we have not divested to the same in which like that is standing in the Dilip Buildcon standalone book also.
That's what I'm trying to understand, sir, on the number part. Two things, just whatever you said. Broadly, roughly, how much equity still will be there in the three projects that we still have to transfer to the same. From the standalone books, how much equity we are still showing?
Shravan Ji, can you take it separately? Because the equity, it is standing in the books of DBL standalone also, and it is standing in the DBL infra also. What will be transferred when the entire sale project will get completed. We can take it separately, and we can give you the number.
Okay. And in general, Sir, DBL infra, sorry, units, whatever we are receiving is shown in the part of DBL infra and DBL standalone.
Basically, we have received units in DBL infra assets and DBL both. Out of the total INR 868 crore worth units, the total units in DBL infra assets is INR 324 crore, and in DBL it is INR 513 crore. Both the levels, the units are there.
Okay. Thanks, sir.
Thank you. The next question is from the line of Jiteen Rushe from Axis Capital. Please go ahead.
Good evening, sir. Congratulations on good set of numbers. Sir, my question is on the orders inflow target, which we are talking about around INR 10,000-INR 12,000 crore. Sir, what would be the non-road portion and kind of work we are targeting this year?
Basically, if you can see our order book breakup, road is generally close to 40%. Yes, this year also, we are targeting road close to 40%.
It is safe to assume around INR 4,000 crore - INR 5,000 crore should be from roads.
Right.
And sir, on what kind of margin do we expect from the non-road segment? Because now, as you said, steady state margin going forward will be 13%- 14%. But can we see any better margin coming from the non-road segment which can pick us our margin?
Jiteen Ji, the margin guidance that we've given is a blended margin, and to give it from different segments would be unfair again. Like I mentioned, every time when you bid for a project, it's based on multiple factors when we bid, and the margins that we get. So hence, to pick out and give each, this thing would be difficult. Also, as part of our bidding strategy, it would be wrong to hand out different margin profiles of each sectors and give it to all our competitors as well.
No, I understand. There are corporates who give, but that's okay. My point was, sir, from the non-road, as you said, INR 6,000 crore - INR 7,000 crore. But can you just give us a breakdown, like what you are looking from the non-road? Because we have been present in many segments. So any particular segment or niche we are targeting this time aggressively from non-roads, or we are going to focus on-
Sir, all those segments that we work in, those are the segments that you should see orders coming in. There is no specific breakup that we, at this point of time, have to offer.
As you said, NHAI has a strong pipeline. We understand that. Any pipeline you have identified, like from metro or water supply, irrigation. We will be bidding, the way it will come. That is what I understand. Right, sir?
Yes. All the segments have healthy orders coming, and we are looking at all of them.
Sir, in terms of competitive intensity, what is your view now? We have seen competition in the past. This year, what is your view? Do you see this intensity to remain or it will come down, or how has been the experience so far this year?
Sir, competitive intensity is dependent on multiple factors on the size of the project. Smaller size projects will see more competitive intensity. It also depends on the type of the project. Let's say EPC versus HAM is more competitive intensity. HAM has reduced competitive intensity.
Yes.
Different segments have different competitive intensity. Different states have different competitive intensity. It is not like a one-size-fits-all. It all depends on where exactly are we working, what segment are we working, how big is the project, all of those different things. Who is the payment agency? Like which agency, whether it is a municipal corp project, whether it is a state government project, whether it is a multilateral funded project, whether it is a national government funded project. All these things change. We see different things happening based on multiple of these factors. It would be very difficult. Yes, competition intensity in between has become much higher because of the government reducing the requirements for bidding, which we again brought it up. Some sanity did, but they are just still very competitive in the lower range of projects, in the lower portfolio EPC projects. Yes.
But sir, just last thing. You mean to say that we will focus on central government and multilateral agency funded projects. That is something which we are focusing on, so that the payments should be on time. That is the idea or thought process.
We focus on multilateral and national government projects and also state government projects where the funding has been tied up or we know that there is a very good visibility.
Okay. Just last thing. Sir, you said INR 10,000 crore is the outstanding bid pipeline as of now, right? Where you are awaiting the results.
Yeah, INR 10,000 crore of projects where we have bid, but the results have not opened yet.
Is this any segment you can highlight, break up between the segments?
Different segments that we bid in, sir.
Okay. Okay, sir. That's all my side. Thanks a lot and all the best.
Thank you, sir.
Thank you. A reminder to our participants, please press star and one to ask a question. Ladies and gentlemen, as enough for the questions, I would now like to hand the conference over to Mr. Rohan Suryavanshi for closing comments. Thank you, and over to you, sir.
As always, I'd like to thank all the participants for attending our conference call, and all our partners for patiently asking all the questions that they had. In case we've not been able to answer some of the questions or you still have doubts, please feel very free to reach out to our investor relations at S-Ancial. or our own team internally, and we'd be happy to help you with any doubts that you may have. Again, we appreciate all of you coming on the call, and I look forward to seeing all of you guys in my next quarter call. Have a good, happy monsoon. Cheers.
Thank you very much.
And DBL.
Thank you. Ladies and gentlemen, on behalf of Dilip Buildcon Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.