Ladies and gentlemen, good day and welcome to Enviro Infra Engineers Limited Q4 and FY 2025 earnings conference call hosted by Adfactors PR. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectation of the company as on date of this call. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing the star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sanjay Jain, Chairman and Whole-time Director, Enviro Infra Engineers Limited.
Thank you, and over to you, sir.
Thank you. Good morning, everyone. I would like to extend a very warm welcome to all of you for Enviro Infra Engineers Limited earnings conference call for the fourth quarter and year ended 31st March 2025. I would like to begin by expressing my gratitude to all of you for taking the time to join us today. We have on call with us Mr. Manish Jain, Managing Director, and Adfactors PR, our investor relation team. We have shared our result presentation. I hope you all must have gone through it. Since this is our third earnings conference call, I would like take you through our recent development before we get into the business and financial performance for this period. Enviro Infra Engineers Limited is one of the India leading infrastructure and environmental engineering companies, specializing in water and wastewater solutions.
With a strong focus on sustainable infrastructure, we bring decades of expertise in designing, building, and operating complex environmental projects across the country. Our work supports some of India's most ambitious national mission, including the Jal Jeevan Mission, the Atal Mission for Rejuvenation and Urban Transformation, AMRUT, and the National Mission for Clean Ganga, NMCG. These are not just infrastructure programs. They represent our collective responsibility to build cleaner, healthier, and more sustainable communities for future generation. During the year, we have continued to build momentum with bids submitted for projects in excess of INR 5,000 crore. This robust pipeline is a testament to the trust that stakeholders and government agencies place in us. As of 31st March 2025, our order book remains strong and healthy, standing at around INR 1,185 crore, comprising 22 diverse projects across multiple states.
Our operation and maintenance order book adds another INR 806 crore, providing clear visibility into our future revenues and growth pipelines. Further, in financial year 2026, we have secured additional new orders worth INR 200 crore, indicating a strong start to the year and continued confidence from our clients. In recognition of our commitment to excellence, Enviro Infra Engineers Limited has also been awarded ISO certifications for environmental management system, occupational health and safety management, and quality management system, further underlining our focus on safety, sustainability, and performance excellence. At Enviro, we play an active role in driving India's water sustainability and urban transformation. One of the defining features of our approach is our commitment to timely and high-quality project execution.
Now, I would like to hand over the floor to our Managing Director, Mr. Manish Jain, who will provide deeper insight into the company financials and operational performance. Over to you, Manish.
Thank you, Sanjay, sir. Good morning, everyone. I shall take you through our quarterly and full-year financial performance. Starting with Q4, our revenue from operations grew 31% year-on-year to INR 393 crore, driven by the robust execution of a strong order book. EBITDA for the quarter was nearly INR 100 crore as against INR 86 crore in Q4 FY 2024, registering a 16% growth on year-on-year basis. The EBITDA margin for Q4 FY 2025 was 25%, while the PAT grew by 30% to INR 74 crore with the margin at 18%.
Now coming to full-year numbers, the consolidated revenue from operations was INR 1,066 crore, up from INR 729 crore in FY 2024, making a robust growth of 46%.
Our EBITDA grew by an impressive 61% year-on-year to INR 268 crore compared to INR 166 crore in the previous year. The EBITDA margin improved to 25%, underscoring our focus on operational efficiency. The profit after tax rose sharply to INR 177 crore from INR 106 crore in FY 2024, an increase of 66%. The PAT margin for the year stood at 16%, reflecting improved profitability and financial discipline. Now coming to our balance sheet highlights. Our debt-to-equity ratio remains conservative at 0.24, highlighting our strong balance sheet. Return on equity stood at 18% and return on capital employed at nearly 23%. Both are healthy indicators in terms of value creation. In terms of cash flow, I am happy to share that we have achieved a significant turnaround.
Cash flow from operations before tax improved from a negative INR 78 crore in FY 2024 to a positive INR 26 crore in FY 2025, demonstrating the strong cash generating ability of our business and soundness of our financial strategy. Looking ahead, we aim to sustain our growth trajectory with an expected annual growth rate of 35%-40%, while maintaining healthy EBITDA margins in the range of 22%-24%. At the same time, sustainability is central to our strategy. We are in the process of setting up a new subsidiary focused on clean energy, that is solar, hydropower, green hydrogen, and 24 by 7 renewable solutions, while also exploring opportunities in solar assets and EPC projects. At the same time, we are also expanding in our water infra through reuse, ultrafiltration, RO and ZLD plants. We are expanding our presence across India, strengthening our national footprint.
We also plan to bid for more HAM projects as well as strengthen our presence in the WWTP and WSSP space. Notably, we aim to increase the scale of our projects from 50 to 200 MLD for Sewage Treatment Plants and from 20 to 50 MLD for Common Effluent Treatment Plants. This step reaffirms Enviro's commitment to building a greener and more resilient India. That is all from our side. We can now open the floor for questions.
Thank you very much, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Dheeraj Ram from Ashika Institutional Equities. Please go ahead.
Hi, sir. Thank you for taking my question and congratulations for the good set of results. I have a couple of questions. The first question is on the order book. The order book has seen a slight decline from last quarter to this quarter, from close to INR 1,700 crore to INR 1,185 crore. In the last quarter, you have told that you have bid for INR 2,200 crore projects and you are expected to bid for INR 2,000 crore more projects. How do you see the order inflow for FY 2026 and what is the status of L1?
Thank you, Dheeraj. Basically, in the last financial year, at the start of 1st of January 2025, our order book was at INR 1,687 crore. The amount of execution, the revenues for the last quarter has been to the tune of INR 393 crore. Our order book presently stands at around INR 1,185 crore. In the last financial year, not much projects were available for bidding. Bidding started in the month of January. Three projects from the execution side have come up. The order book is around INR 200 crore. Further, we have submitted our bids for somewhere around INR 5,000 crore projects and we are expecting the results to be out very soon. We are L1 in certain of the projects, but we are not interested in announcing the L1. Rather, we will be more interesting as and when we get the LOIs from the respective clients.
Definitely we will announce that result and then that can get added to the order book. However, having said so, since we have submitted our bids for around INR 5,000 crore projects, our success ratio in the past has been quite good. It was in the range of around 40%-60%. Even if we go by a conservative number of somewhere around 20%-25%, even at that level, we can expect that an orders inflow of INR 1,000 crore- INR 1,250 crore, that should accrue to the company from the bids that we have already submitted.
Okay, sir. Got it. Just two more questions then. What is the amount of unbilled revenue that we have as on closing FY 2025?
The total amount of unbilled revenue is to the tune of around INR 265 crore in our books.
Okay. Last question, sir. Sir, we have acquired two companies. One is EIE Renewables and the other is Sunaxis, for INR 10 lakh and INR 1 lakh each. These are related party transactions. I know that we are trying to enter into solar, hydro and green hydrogen. What is the need of creating a separate entity and then acquiring it? What is the thought process behind this?
Both these companies were formed just recently with both Sanjay Jain and myself being the directors in the company. We have stated quite clearly that these companies will remain to be 100% subsidiaries of Enviro Infra only. Basically, the purpose of acquisition was the shareholding. We were having that 10 lakh shares of EIE Renewables. Basically, that shares were transferred to Enviro Infra. So we remain as directors in the company and it becomes 100% subsidiary of Enviro Infra. Basically, we want to have a clear demarcation in the business lines. The water and wastewater business, that will directly be in the parent company only, and the renewable business that we are trying to develop, that entire business, that will be taken up in EIE Renewables. Sunaxis Renewables, the directorship was with Sanjay Jain and myself, so it will be acting as a step-down subsidiary of EIE Renewables.
If there is any solar asset or renewable asset which is taken up in the EIE Renewables, that particular company was required, so that will act as a subsidiary of EIE Renewables, sir.
Got it, sir. Thank you. Thank you for answering the questions.
Thank you. The next question is from the line of Peter from LIC Mutual Funds. Please go ahead.
Hello, sir. Thank you for the opportunity. I just wanted some color to follow up on the previous participant's question. On the subsidiary front, you are saying that you have kept a separate subsidiary for renewable. What is the difference between this subsidiary and the step-down subsidiary?
Let me explain it first, also from Enviro. Basically, Enviro, when it is a parent company, it is doing all the EPC business. Whenever we are taking any of the HAM projects, we are required to form an SPV so that the financials of that particular SPV, that can be separated and that can be clearly visible. Now, I will take it to the renewables. Basically, we have formed EIE Renewables for taking the entire renewable business, which we intend to grow. If we are having any of the assets or if there is any PPA line for this, we require that further step-down subsidiary company of EIE Renewables, for which that Sunaxis Renewables has been created.
Okay. Because in the first question, just to give some color, I was just telling is that you had said the renewable energy will be in solar renewable power generation itself, or is it supporting the EPC projects that you are doing? Are they two separate line of businesses, or that is just to support your EPC business?
There is one EPC business wherein we were installing some of the solar power plants. That earlier we were doing in our parent EPC company only. In future, if there is any such requirement or any of the renewable plant will be required, that definitely will be transferred to the renewable side. This renewable company has been formed specifically to take direct projects in the renewable sector, for which the company will be bidding in taking the EPC or some of the assets for executions.
Okay. Just to be clear. So, sir, because we have seen your presentation that you have shown the measures also where you have done some EPC Wastewater Treatment Plant that you do. In that, you have also provided solar installations in few of your projects before, sir. So this particular subsidiary will support this kind of activities wherein you are saying the EPC project what you are doing for wastewater treatment. If a client also says, "I want a solar installation along with this project," the subsidiary will take care of the solar installation part.
That is true.
Okay.
That is what I am saying. It is both ways. It is the installation of renewables in our existing water projects or wastewater projects wherein we are required to install or we are planning to install, as well as the individual installations as well, for which we will directly bid for these type of projects.
Okay.
Renewable projects, I will say.
Thank you. Thank you for the color, sir. That is helpful. Since we follow the last call also, we are a little bit aware of how the EPC part of yours works with water treatment, right? Because that has a separate set of drivers, then there are government schemes associated with it, and you support municipal. When you say you are going to do separate solar installation projects as such, can you please give us some color in terms of what is the market size, what kind of clients do you target, and what size of projects you do, what is the ticket size, and what is the order book and what can be the revenue visibility on that front for that?
Let me clarify that we are quite new to this sector. Right now, giving the revenue visibility as far as the size of the sector is concerned, we understand there is huge potential and huge opportunity which is available. Now for us, how we can grow and how we can bring more color to our company in this particular renewable sector. Basically, we are moving forward, we are going slow, we are studying, we are taking those projects wherein we can draw some strength. Based on that, we will go ahead. We will not forecast any earnings right now for this renewable, but definitely we will look forward to very good margins, which will be available when we are bidding for any of such projects. So we will be quite careful while bidding. We do not want to go very big on this right now.
We will have our footprints first available, then we will look into the sector and how we will grow. So maybe for a year or two, we will have our foothold in the sector and then we can go for a revenue visibility, particularly in the sector.
Yes. In that sense, sir, you had done 22% margins last year, 25% this year. So you expect the margin profile to be higher or same or lower for this particular business you're entering, sir?
First of all, I will separate out the two businesses. One is our water and wastewater business. The visibility, that growth in terms of revenue, that 35%, 40% growth what we are expecting, that will continue to be there from the water and wastewater sector itself. So there is no slackness in that. That robust growth, that will continue in that particular sector. We foresee the margins will always be there, that EBITDA margin of 22%-24%. We expect we will continue to drive those type of margins from our water and wastewater treatment sector.
Okay.
I will again emphasize that in this renewable sector, because it is one of the main, very interesting sectors and it is a huge opportunity which is available in India. Right now, we are definitely studying into it and how we can build up some good company, and we can go for some good projects. We are visualizing some of the projects. We have definitely submitted some bids wherein we have put those strengths. 22%-24% of EBITDA margins in the renewable sector, to my understanding, might not be possible, but yes, to an extent of around 18%, 20% is the margin what we are looking for. We will not go down beyond that.
Okay. Got it. So you are saying the next two years that you said you are going to study the market, right? So can we say that we can expect you to generate revenues from FY 2027 or 2028 onwards for this particular new business you're entering?
We do expect to generate revenues from this company in FY 2026 as well, but comparatively we expect it to be a bit smaller right now.
But sir, the independent renewable projects. So when you are doing an EPC project for water where there is solar involved, that you are doing. But standalone solar projects also from this year onwards also you will start executing, sir? Just to clarify.
Yeah, definitely. This is what we are intending to do along with solar. We start very definitely with solar, and we will definitely try to enter into that hybrid sector or means 24 by 7, which is available in this particular renewal. Because there is a lot of gap or the grid imbalance which is there. So that brought a lot of interest.
Okay. And sir, additionally, because you are going to enter into this business and it may need some additional CapEx, any color on the CapEx requirement overall and separately because of this, how much we can expect to increase? Also will you incur additional debt in order to fund this growth? Any color on that you can provide, sir?
Right now from our GCP, from the IPO funds, we have proposed an investment of INR 50 crore in EIE Renewables. To our discussions, we have kept that overall investment from Enviro Infra to EIE Renewables at a maximum of INR 75 crore. Basically, it will depend upon the type of project that we will get, and if there is any PPA project which is of significant value and which can add strength to the company and can give good returns, then definitely like HAM projects, we will be adding that debt. But we are quite careful if we go for a debt-to-equity ratio. We are quite comfortable right now. We are sitting at a level of around 0.24. We understand we will never go heavy, and we will never try to cross that line of around one, not more than that.
If we are having the HAM projects or just any PPA projects and that debt level is going high, then definitely we have that bouquet available, and we can look forward to selling those projects.
Okay. And kindly sir, you have said that almost 11-
Sorry to interrupt. Mr. Peter, I would request, should you please come back in the queue?
Yes. Okay.
Thank you.
The next question is from the line of Nikhil Rungta from LIC Mutual Fund. Please go ahead.
Yeah. Hi, sir. Thank you for the opportunity and congratulations on a great set of numbers. Sir, most of my questions were asked by Peter already. Just two clarifications from my side.
Firstly, right now, correct?
Right, sir. Right.
Okay. And standalone solar EPC projects bid.
That's true. This is our inclination. This is what we intend to do.
Perfect. The last question. press release, when we had set up this subsidiary objects, the target company is incorporated for the purpose of undertaking the business of power generation through renewable sources, confusion. Are we also entering into renewable and power generation, or it is primarily the EPC?
Sir, it can be both ways. It can be either IPP projects or PPA projects or say EPC. We always intend to go asset light. We will always have a right mix of EPC and PPA projects. The same way we are having that mix of HAM and EPC in our parent company.
Correct.
On the debt side, we will never like to go heavy on this. We will be quite careful while choosing any assets. Any of the assets which we can build up in that particular sector. Our debt to equity, we will always maintain the debt to equity ratio to be in a very comfortable range.
Perfect. Basically, solar EPC projects, plus independent and if it any time go into generation, careful and probably that will start after a couple of years.
True, sir. We never want to go heavy, or we want to study the sector so that if there are great opportunities available, then we can go big on this. But for that, we definitely need to understand and need to understand the intricacies of the sector.
Okay. Got it, sir. This is quite helpful, and thanks for the clarification.
Thanks a lot. The next question is from the line of Rahul Aggarwal from Aventus Capital. Please go ahead.
Yeah. Hello.
Yes, please.
Yeah. I hope I'm audible.
Yeah, you are audible. Please go ahead.
Yeah. So thank you for the opportunity, sir, and congratulations on the good set of numbers. So, sir, I wanted to actually start with a question on this CBG gas product that you have mentioned. That seems to be something that is a bit unique to Enviro. I do not see a lot of players working in that space. Could you just tell me a bit about that and how it could translate into revenues?
You are talking about the renewable sector itself, I think?
No, sir, just specifically the CBG gas product that was mentioned, I think recently.
Oh.
I wanted some visibility on that, if that's possible, sir.
Right. This sustainability and waste to energy, this has remained our key focus. Presently, in three of our existing wastewater treatment projects, which are predominantly Sewage Treatment Plants, we are putting up this gas generation and CBG plants. One of my plant is going at Jaipur. It is an 80 MLD plant, 80 MLD STP. Then there are two plants at Jodhpur for which we are doing the upgradation and modification. These two are 50 MLD plants, and one of the upcoming plants will be 135 MLD at Saharanpur. Basically, when we are doing this, we are putting these CBG plants in our projects. We intend to see the performance of these plants, and then based on the revenue generation model and the success ratio, definitely we will try and we intend to enter into CBG, maybe for the agricultural waste or for MSW projects as well.
We are again on the lookout. Basically, first of all, we are installing the plants in our existing projects. We will see the performances, and then definitely we'll look forward to these opportunities which are immensely available in India.
Okay, sir. Sure. Sir, the other thing I wanted to ask was, in recent times, our success ratio has been around 35%-40% or so, I think. Which seems to be much higher than other peers we have in the industry. Can you comment on why that would be the case? Is there anything specific that we do much better that allows us to get such good ratios?
Rahul, that gets transpired from the design and execution capabilities which are in-house. We have control on the costings. That control on the costing as well as giving the economical and viable solutions. We always remain a bit competitive in comparison to our competitors, and that translates into better success ratio in comparison to our peers.
Okay, sir. Sure. The guidance that you gave for a conservative number of 20%-25% of success ratio, should we consider that to be the case, or can we be a bit more optimistic?
There are certain guidelines when we say 20% to 25% is the success ratio, which we can definitely foresee. But there can always be a chance for better one. But at least if we go by that number as well, and projects are further coming up. Every quarter, if we can have that number of somewhere around maybe INR 750 crore, INR 1,000 crore odd of order book available to us, and if we can build up that order book of around INR 2,500 crore- INR 3,000 crore in this current financial year. Maybe, that depends. If our success ratio is higher comparatively, we will slow down our bidding in future. If our success ratio is in the range of 20%-25%, might be our bidding may be a bit higher at that point of time.
Okay, sir. Sure. Thank you so much, sir. That is all from my end.
Thank you.
The next question is from the line of Ritan Rawat from Aventus Capital. Please go ahead.
Yeah. Am I audible?
Yes, sir, you are.
My questions are answered. I just wanted to ask, what is the average project execution cycle of your current orders and the future orders also?
The time period in general is in the range of 18-24 months, apart from some water supply schemes which we are having, wherein the order of this timeline is around 28 months. In general, a timeline of around 24 months can be taken to be an average timeline for the execution of the projects.
Okay. Got it. Do you plan to scale up your O&M portfolio? You have a big O&M portfolio on your side. Is there a way that you will increase your scale-up of O&M portfolio or you will continue to do EPC?
Can you please repeat your question? I could not hear you clearly.
Will you continue to do EPC or are you more looking forward to do more O&M projects so you can get future visibility?
HAM projects drive better margins in comparison to EPC projects, but we cannot go very heavy on HAM. We will always be having a right mix between EPC and HAM. We understand that a mix of around 75 to 25 for EPC to HAM. I think that will be the right mix and right ratio going forward as well. We will try to maintain that level.
Okay. Thank you so much.
Thank you. The next question is from the line of Bala Subramaniam from Arihant Capital. Please go ahead.
Good evening, sir. My question regarding, I think, our 48% of revenues comes from Madhya Pradesh side. What are the steps we have taken for mitigating regional risk?
Pardon? Couldn't get you, sir. Can you repeat, please?
Sir, around 50% of revenue comes from MP side only. What are the steps are we taking on mitigating regional risk as well?
If you will see our investor presentation, our total WSSP book now remains at around INR 170 crore. Those MP projects, there were five MP projects. The total order book size was INR 1,250 crore. So now the balance portion is around INR 170 odd crore. The component of wastewater treatment projects and that too EPC and HAMs, that will be much higher in current financial year. This entire WTP order book, that is spread across the states. That concentration which we were having in MP, I think that will slightly go down this year, and we will have some better revenues from other states, I'll say.
Okay, sir. Sir, most of the infra and EPC players have talked about delays in payments for water-related projects. Are we facing the same? Is there any potential delays in fund allocation for AMRUT 2.0? Is there any impact on our growth side?
We didn't face any problem in any of the AMRUT or Namami Gange projects which we were executing during the last financial year. However, there was a delay in release of payments from JJM projects. For the entire last financial year, the payment cycle that got elongated in JJM, there was a delay of, I'll say, almost nil payments which were released from the center. It is just because of the timelines of the project which it was intended to complete in FY 2024. The timelines could be increased by the central government only during this budget. This timeline has been increased till 2028. The last year was definitely crucial for all the players who were in the JJM segment. We also face some challenges, but after December, the cash flows have significantly improved even from the JJM.
If you see our cash flow cycle, we have definitely improved a lot. If you see our cash flow pre-tax, these have gone positive from a negative number. That says that cash flow and operational efficiency in the system, that way, we could manage the cash flows.
Got it, sir. Sir, on the margin front, basically our competitors are below 15% kind of margins. I think we are above 20%. I just want to understand how we are maintaining those margins, whether it is because of input cost, competitive pricing or project mix shift. How we are selecting these kind of projects.
Basically, if you see, it depends upon company to company, how they take up the projects. The way the project is taken up, that way the margins are derived. Some of the companies are having even better EBITDA margins than us, then some are having lower EBITDA margins or maintaining somewhere around 15%. That is transpired from the way the project is taken up. If there is a subcontracting or there is no control on the execution front, then definitely the project may go for a delay or there can be cost overruns. We are basically trying to have our 100% control on the execution front, and that is driving the growth as well as the margin in the company.
Okay, sir. Thanks.
Thank you. Participants, you are requested to limit your questions to two per participant. The next question is from the line of Aniket Jain from Yes Securities. Please go ahead.
Good morning, sir. Hope you can hear me.
Good morning. Yeah, audible.
Actually, I wanted to ask one question on trade receivable days. So I see that those have increased from 57 days in FY 2024 to almost 74 days currently. Is there any reason for that, and what should be the normalized receivable days? Do you expect to reduce these receivable days in the near future? That's question one.
Yeah.
Question two would be, if you are planning to probably go into international markets, say, Middle East or Southeast Asia, because those markets also have some significant opportunities. That is question two.S
Yeah. Basically, the trade receivable days, you are 100% right. These have increased to somewhere around 70 days. The challenge this time was basically the receivables from the JJM projects itself. During the entire financial year, there was a slowdown in the receivables from JJM projects. Situation has got improved a lot. The number of days seems to be 70. However, if you just work out the payments which we received on 3rd or 4th of April. So it was somewhere around INR 70 crore which we received from the JJM project itself. So if we just take it into the account, then the receivable date goes back to around 45 days. 45 days is what exactly means the right timeline for receivables. The total receivable cycle, if I divide the inventory days should be. This is what actually an optimally should be. It is inventory days should be 15.
Unbilled revenue days should be somewhere around 90. Then the receivable days should be 45. So if we add these all, it should be 150 days, and trade payable days should be around 60. So if we say the net working capital cycle come out to be 90 days. In our case, this net working capital cycle comes out to be 105 days. Now, that slight means the fund which we received on 4th and 5th of April, definitely that cannot be taken as the fund that debtor cycle for FY 2026. Because it was just the fund which was to be released, so it got released two to three days later, after this 31st March. So if we just look into it or we account for this particular one, then that days, that will go down to somewhere around 25 further, so around 80 days.
We are fairly comfortable on that base.
Definitely. Makes sense, sir.
Regarding this question on the international. Same ways, we are having some inquiries now from the international market as well. It will be that prudent exercise that we study that market carefully and then we enter. We will take our own time with the study. But one thing that is for sure is, we will definitely be inclined to enter into the international market as and when the opportunity is available.
Sure, sir. Sir, just a follow-up on this. If you plan to go into international markets, would you be doing end-to-end work there? That is the EP as well as C portion, or would you try to get some local contractors to do the construction portion and you just take up the EP portion?
Basically, this is what we have to study, and we have to infer whether it will be prudent for us to go there and do the civil construction work from our side itself, or should we hire the local contractor and give that civil construction work to the local contractor, and then we look on further equipment supplies and then performance guarantees. This is what we have to study, and only after our comfort zone we will enter into that market.
Sure, sir. Thank you for the opportunity.
Thank you.
The next question is on the line of Shatrughna Chawla from Nivesh India. Please go ahead.
Hello, sir. Am I audible?
Yeah, please.
My question to you is on the lines of, again, the trade receivables and the cash flow mainly. Last conference call, I believe you had mentioned that there would be complete release of funds from JJM side. I just want to know the status and update on that. Also, if this cash flow issue will be consistent. Will this be an issue for every quarter because there will be a backlog from the previous quarter, or is there a resolve to the issue? Also, the aging of the trade receivables. That is also just a point of concern. I just want to understand this from you once.
If you see, our cash flow have turned positive, and our cash flows pre-tax are now INR 25 crore positive in comparison to around INR 75 crore, which were negative in the last financial year, pre-tax. That means our cash flows have improved significantly despite the problems that all the players have faced by not release of the timely payments in JJM projects. This is one problem which anybody has faced in the last 10 years. To our understanding, the worst is over, and the funds are there on the verge of being released in JJM. Apart from JJM, I have not faced any of the challenges in either AMRUT 2.0 projects or Namami Gange projects. The flow of funds there has been quite smooth, which definitely have helped us in our execution of the JJM projects as well.
We could maintain a mix of our cash flows from various projects which were coming to us. This problem was a once-in-a-lifetime kind of thing. Though the central government were having the budgetary allocations, the timeline issue, that created a problem. Other way around from AMRUT or Namami Gange, the funds were being released. We do not foresee that such cash flow problems, that will exist in future. We are quite hopeful that funds will be available in the project. Regarding aging, I will say my entire receivables is INR 205 crore. If you see my entire quarter, my entire quarter is INR 393 crore. If you see the aging-wise also, that does not look to be more than that 45 days itself. If you just compare the last quarter only. That way, things are quite comfortable.
We are closely monitoring all the cash flows and we are having a stringent watch on it, and we are definitely following up. Everything is quite comfortable. Our cash flows have improved significantly. This is what I can say. In one of the troubled years itself, our cash flows have improved significantly.
Sir, can we expect a positive cash flow after tax next year?
We definitely look forward to positive cash flows after tax also.
Okay. Thank you, sir.
We are on it, and we definitely look for it. One more thing which I would like to highlight. Basically, if that transpires from the order book, present order book. The present order book says WSSP lines are only to the tune of INR 175 crore. Rest all are our WWTP projects, EPC or HAM. That way, the cash flows are quite comfortable in all those projects. It has remained to be comfortable in the last financial year as well. We can expect a positive cash flow.
Thank you, sir. Just one last question on the unbilled revenue side. Sir, would the INR 256 crore, I believe is the amount, would that be included in the top line for this financial year? The unbilled revenue is included in INR 1,066?
Unbilled revenue is a sales recognition in INR 1,066 crore. In the current financial year, it will not be the part of the revenue. It has already been the part of revenue of FY 2025. The figure is INR 265 crore, not INR 256. It is INR 265.
Okay, sir.
If we see it in number of days, it comes out to 91 days. So in 90 days, this unbilled revenue cycle seems to be okay.
Okay. Just to confirm, it is included in the INR 1,066 figure for FY 2025 year.
Yeah.
Thank you, sir. Good luck.
Thank you.
The next question is on the line of Aditya from Synergy. Please go ahead.
Yeah. Good morning, sir. Am I audible?
Yeah, you are audible, sir.
Yes, sir. I just wanted to have some future guidance on the revenue and the margins. Will we see any improvement for the next year?
If you see the order book, that order book primarily constitutes WWTP projects. These are EPC and HAM projects. If you see this profitability guidance, definitely these projects have higher margins in comparison to water supply schemes. We definitely expect that the margins can improve, but as a guidance, we will never give any guidance for EBITDA margin going above 22%-24%. We will have that operational efficiencies in the system, and we will definitely look forward to having the better margins while we are executing.
Okay. All right. That is it, sir. That was my only question. Thank you.
Thank you.
Thank you. The next question is on the line of Ankur Kumar from Alpha Capital. Please go ahead.
Hello, sir. Thank you for taking my question. Sir, I wanted to understand regarding our 35%-40% growth guidance this year. We will need more orders. You said that 5,000 crore bid book is there. When can we expect some wins from there? If we get it, how early if we get it, we will start executing it, sir?
First of all, the moment we bid any of the projects, there is a timeline of around four to six months within which the bids are evaluated and the orders are released. If we have started bidding for these projects in the month of January, then definitely we can have a good amount of visibility to my understanding by June end or maybe in the month of July. The moment we get any of the projects, for three to four months, these are mainly used in the designing of that particular project. That says that the entire monsoon season will be available for the designs. This year, Diwali is also in the month of October, so five clear months will be available for construction. We can understand that the new order book which will be coming into the company.
November onwards, it will add on substantially to the revenues of the company. Till that time, the order book which the company already has in hand. We have a good amount of order book available to execute at least for the next six to seven months. That way we can foresee that 35%-40% revenue visibility, that is quite possible.
Got it, sir. On JJM side, there were reductions. Can you comment how are the things now and how are we expected things in FY 2026?
Right now under JJM, the projects which we were having and which we were executing, we are in the final stages of the execution of those projects. Since we were not having our comfort zone going further for the JJM projects, so we backed out and we didn't bid any of our bids which have been submitted out of this 5,000 odd crore. None of the project is from JJM. Right now we are more interested in completing our projects and then taking out all the funds which are means locked or which are withheld in the JJM. The guidance will be clear. The funds are being made available by central government as well as the state governments. The funds are definitely going to flow maybe in the next 15, 20 days time.
There's a normal timeline after the completion of any financial year, the funds generally get available either by May end or in the month of June. That is a normal position. So we do expect that the funds should be there. I cannot guarantee because the funds have to come from the government only. But we foresee that the funds are going to be made available in the month of June and the books means there will be quite comfort soon in the cash flow side further.
Got it, sir. Last question will be on the O&M side. The order book is INR 806 crore and roughly we are doing around INR 30 crore of execution per year. So what kind of can we improve at this improvement or how should we look at this O&M part of the business? Is it like how much margin we make in on this O&M business?
O&M revenues and the profitability from O&M profitability is definitely higher and it is significantly higher. However, we foresee the O&M revenues to be always in the range of 3%-5%. in the last financial year because all the projects were in the execution stages, there were not much of the projects which had entered into O&M. In the past projects were continuing in the O&M phase. If the O&M revenues have almost got stagnated for FY 2024 and 2025, we expect that in the current financial year there should be an increase in that O&M revenue to the tune of maybe another INR 10 crore-INR 15 crore. On year-on-year basis as the projects get completed, the O&M revenues will go on increasing.
If I talk two years down the line, we foresee that O&M revenue can shoot up to an extent of somewhere around INR 70 crore-INR 75 crore.
Sure sir. Thank you and all the best.
Thank you. Ladies and gentlemen, this was the last question for today's conference call. I now hand the conference over to Mr. Sanjay Jain for closing comments.
Thank you. I thank the entire team of Enviro Infra Engineers Limited for their untiring efforts, hard work, and dedication, which drive the company forward through various market conditions. Also, I appreciate all of you for participating in our conference call. Please do get in touch with our investor relationship team for any further questions. Thank you. Thank you, everyone.
Thank you. On behalf of Enviro Infra Engineers Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.
Thank you all.