Please note that this conference is being recorded. I now hand the conference over to Ms. Sana Kapoor from Go India Advisors. Thank you, and over to you, ma'am.
Thank you, Sejal. Good morning, everybody, and welcome to H.G. Infra Engineering Limited earnings call to discuss the Q4 and FY 2024 results. We have on the call Mr. Harendra Singh, Chairman and Managing Director, and Mr. Rajeev Mishra, Chief Financial Officer. We must remind you that the discussion on today's call may include certain forward-looking statements and must be therefore viewed in conjunction with the risks that the company faces. We now request Mr. Harendra Singh to take us through the company's business outlook and performance, subsequent to which we will open the floor for Q&A. Thank you, and over to you, sir.
Thank you, Sana. So welcome, everyone, to Q4 and FY 2024 earnings conference call of H.G. Infra Engineering Limited. The financial results and the investor presentation have been made available on the exchange, and I trust you all had the opportunity to review it. Before I proceed with the presenting of the key financial and operational highlights for the previous financial year, I would like to offer a concise overview of the sector and the opportunities it presents for H.G. Infra. I am pleased to announce that H.G. has delivered exceptional performance in FY 2024 across all fronts. We have achieved substantial progress in diversifying our order book by securing four non-road projects and in this financial year. Additionally, this year marks a significant milestone, as we have reinforced our presence in the highway and road sector with two successful new projects win in Q4 FY 2023, sorry, FY 2024.
Not only we have expanded our order book, but we have also taken, taken meaningful steps towards diversification in solar power plant projects. Now, I would like to provide some update on the infrastructure sector. Talking for, of roads, India's infrastructure sector is booming, fueled by a significant funding boost of INR 278,000 crore for FY 2024-2025, with this INR 168,000 crore earmarked for NHAI. The focus is on developing national corridors. Building upon this momentum, the Vision 2047 aims to construct 30,000-35,000 kilometers of highways and 50,000 kilometers of high-speed corridors by 2047. This ambitious plan emphasizes of the government's commitment to fostering extensive connectivity and facilitating economic progress across the country, concurrently presenting abundant opportunities.
In recent decades, H.G. Infra has solidified its position as a formidable force in the infrastructure sector and has proven its mettle over the last many years in the EPC and HAM sector. H.G. sees abundant opportunities, and it's keen to participate in BOT mode with the association of other key players, such as Highway Concessions One , Cube Highways, and I have and other prominent players like Adani and IRB as EPC players, where we are already being associated with these companies. Railways and metro. As a part of our long-term strategies of diversifying our order book, we continue to gain considerable ground in the railways and metro segment. The budget has earmarked INR 2.55 lakh crore, focusing on multi-tracking corridors and station remodeling.
A significant portion of this budget is delegated to multi-tracking seven speed, high-speed density corridors, facilitating the expansion of rail networks by 10,959 kilometers over the next decade. Additionally, the Amrit Bharat Station Scheme further complements these efforts, aiming to remodel 1,309 stations by 2030, thus enhancing passenger experience and operational efficiency. The significant momentum observed across various sectors has created ample opportunities. In alignment with our strategic approach, we are prepared to grab these opportunities with six railway projects currently in the order book across five states, and HG is well positioned to capitalize on the government's initiative, and we are all equipped with the required CapEx, technology and skilled human resource for network expansion and station development, that is, modernization of existing infrastructure, civil work, and dedicated high-speed railway corridors.
Solar and renewable energy being talked nowadays, the renewable energy sector is gaining focus with ambitious target, aiming for 450 GW of installed capacity by 2030, where solar energy constitutes over 60%, and in the latest budget, INR 1,000 crore were allocated for SECI and INR 19,500 crore for a PLI scheme to enhance solar module manufacturing. H.G. Infra, recognizing this lucrative prospects, proactively pursued bids and successfully received solar power projects for development under Kusum C. That is for 543 MW DC, valued at INR 1,307 crore EPC value, that is exclusive of GST. The company is also exploring additional opportunities in solar power development, solar projects, including rooftop installation. These projects win is a testament to H.G. as a leading EPC company in the infrastructure space.
In water sector, the Jal Shakti Ministry budget has been increased to INR 98,418 crore for FY 2024-2025, up from INR 96,549 crore in the previous year. That highlighting ongoing investment in water infra, and in second phase of Namami Gange, Namami Gange program, government has approved INR 22,500 crore, out of which around INR 11,235 crore is allocated for new projects.
H.G. Infra is keen to participate in projects like Namami Gange to clean the embankment and rejuvenate the Ganga river, position abetments, infrastructure development near the river, projects related to water desalination, wastewater treatment plants, and other water supply projects in rural or urban areas like under JJM schemes. Rainwater harvesting storage under Jal Shakti Abhiyan will be our priority card to contribute with a revenue of around INR 50 crore for which we have targeted for this financial year. Furthermore, we are looking forward for partners with strong background, with credentials to cover the technical eligibility for strategic partnership for breakthrough for projects in water sector. Let me start the journey of this quarter and give you the glimpse of operational highlights first. As I mentioned earlier, our order book has not only grown but also diversified as of March 31, 2024.
It stands at INR 12,434 crore, that is EPC value constitute twenty- EPC constitute 28%, while HAM constitute 40%, railway segment contribute 22% and solar segment contribute 10%. Let me now update on the ongoing EPC projects. The Ganga Expressway project has reached a milestone of about approximately 54.3%, adhering to the contractual timelines of the contract. Delhi UER project stands at around 93.1% completion, and it is anticipated to be completed in this quarter only. The Nelamangala-Tumakuru project could not reach up to our expectation, and its execution status is around 28% because non-availability of the land, for which NHAI is pushing hard and for faster balance land acquisition and encroachment free. The progress of various HAM projects is also running as per the planned schedule.
The Karnal Ring Road project has achieved 23.9% completion by this quarter and is progressing well within the established timelines. Raipur-Visakhapatnam OD-5 project has progressed to 65.9% completion, and we look forward to complete this by quarter three of this year. Raipur-Visakhapatnam OD-6 project is currently at about 73.7%, and the same would be completed by quarter two. The Raipur-Visakhapatnam AP-1 package has achieved the completion status of 69.5%, and the same will be completed by quarter two. In the Khammam-Devarapalle project package one, where we have achieved 50% completion, while package two is at 53.7%, both the project would be completed by quarter three and quarter four respectively.
The Varanasi-Ranchi-Kolkata package 13 and 10 is currently in the initial stages of land acquisition and are anticipated to pick up momentum in second and third quarter respectively. Turning to the progress of the railway projects, DMRC metro project has reached completion of about 50%. Bhanupali-Bilaspur project railway project has progressed to 10.3% completion, though initially it was delayed due to heavy rain. Because of the backwater of the dam, it is now progressing well. Kanpur Central Railway Station project has recently commenced with a completion status of 4.12%. Let me now invite Mr. Rajeev Mishra, CFO of the company, to give an overview of the financial highlights of this quarter and overall FY 2024.
Thank you, sir. Last year, ICRA has upgraded our ratings from stable to positive for long-term, short-term facilities and entity on account of the financial growth and discipline. Our financial performance in the last quarter and the entire year has been satisfactory. At the standalone level, the total revenue of FY 2024 has reached INR 5,122 crore, reflecting an impressive 15.9% year-on-year increase from INR 4,419 crore in FY 2023. EBITDA amounted to INR 822 crore in the current fiscal year, resulting in an EBITDA margin of 16% compared to INR 710 crore and 16.1% margin in the corresponding FY 2023.
Tax for FY 2024 stood at INR 546 crore, with a profit margin of 10.7% compared to INR 421 crore and a margin of 9.5% in FY 2023. In Q4 FY 2024, standalone revenue reached INR 1,635 crore, representing a significant 11.2% year-on-year growth from INR 1,417 crore, Q4 FY 2023. Standalone EBITDA for Q4 FY 2024 was INR 265 crore, reflecting a year-on-year growth of 11.3%. PAT and PAT margin for Q4 FY 2024 stood at INR 160 crore and 9.8% respectively, compared to INR 148 crore and 10% in the same period of the previous fiscal year.
Regarding the company's debt position on a standalone basis, the gross debt amounts to INR 451 crore, including working capital debt of INR 69 crore, term loans current maturity and the trade limits totaling to INR 334 crore and NCD of INR 48 crore. Moving on to the consolidated numbers. For FY 2024, revenue reached to INR 5,378 crore, growing at 16.4% year-on-year increase from INR 4,622 crore in FY 2023. EBITDA reached INR 1,062 crore, with an EBITDA margin of 19.7% compared to INR 895 crore and 19.4% margin, percent margin in FY 2023.
Tax for FY 2024 stood at INR 539 crore, with a profit margin of 10% compared to 493 crore and 10.7% margin in FY 2023. In Q4 FY 2024, the consolidated revenue reached to INR 1,708 crore, making significant 11.3% year-on-year increase from INR 1,335 crore in FY 2023. Consolidated EBITDA for Q4 FY 2024 stood at INR 333 crore, reflecting a year-on-year growth of 12%. Tax and PAT margin for Q4 FY 2024 amounted to INR 190 crore and 11.1% respectively, compared to 131 crore and 11.1% in the corresponding period of the previous financial year. In the context of the company's debt position with the control level, the gross debt amounted to INR 1,500 crore approximately.
The total equity requirement of 10 HAM projects is of around INR 1,461 crore, out of which we have infused INR 694 crore in this financial year, and INR 505 crore is estimated to be infused in the FY 2025. Let me give a glimpse of the status of the monetization of four HAM projects. First tranche of the three projects which are sold in the last year. Additional three SPVs, Gurgaon Sohna, Rewari Ateli, and Ateli Narnaul . They have been completed on 21st of March, 21st November 2023, with 100% SPV shares transferred from H.G. Infra to Highways Infrastructure Trust. We have received INR 315 crore as of now, and rupees 60 crore will be released on the receipt of approval from NHAI for GST change in law claim .
It is expected to be received by June 2024. The second tranche, as far as the updates on the monetization of the fourth project, Rewari Bypass, is concerned, we have received NOC from NHAI and lenders for the change in the shareholding in March 2024. Compliance on the conditions precedent, as per the SPA, is in the process and expected to be completed by May 2024, and the transaction is expected to be completed by June 2024. Around INR 130 crore is expected to be received from Rewari Bypass SPV. For other significant updates for FY 2024, I would now request MD sir to take over and share the developments with the forum. Thank you, sir.
Thank you, Rajeev. Let me now share other significant updates for FY 2024. Initially, we have projected to get around INR 8,000 crore of new projects during FY 2023-2024. However, due to all-time low awarding by NHAI, we ended this year order addition at INR 4,350 crore, that is exclusive of GST. In Q4 FY 2024, the company effectively secured three new orders in the railway sector in EPC mode, that is Dhule to Nardana railway project in the state of Maharashtra. That is from Central Railway, worth INR 716.11 crore. Aurangabad-Karanjgaon Railway Station project in Maharashtra, that is inclusive of electrification and signaling work from South Central Railway, valued at INR 447.11 crore.
Gaya-Son Nagar railway station project, that is a EPC project in the state of Bihar, awarded by East Central Railway for construction of double lane track, including earth work, blanketing, and other electrification works, that is valued at INR 709.11 crore. These all projects are inclusive of GST. Two more new projects of highway were awarded, Chennai-Tirupati, Package Two in the state of Andhra Pradesh, for construction of access control highway of four lane on HAM projects, that is having the EPC value, INR 760 crore. The Kalimandir-Dimna Chowk of EPC mode in the state of Jharkhand, Siena to Jamshedpur, that is INR 610.11 crore.
Universe of solar and renewable energy, we are happy to share for forum, the company has entered in the solar segment and has been recently awarded solar power project development work at the KUSUM-C for 543 MW DC of INR 1,307 crore EPC value, which is excluding of GST. The company has secured contracts from Jodhpur Vidhyut Vitran Nigam Limited on the KUSUM-C Yojana , collaborating with Stockwell Solar Services Private Limited in JV consortium. Together, we will work on the solar power plants, togethering, totaling 528 MW DC, that is worth INR 2,300 crore. The work involves procurement, erection, installation, and commissioning of the plant over, within a period of 12 months from the date of EPA, and then maintaining them for 25 years.
These projects will be executed through project SPVs. In addition to that, H.G. Infra has also won two small solar projects of 12 MW worth INR 62 crore. The total equity requirement in the solar projects is estimated to be INR 540 crore, out of which we would infuse INR 270 crore in FY 2024, 2025, and balance in 2025, 2026. Let me touch base on the future guidance before I conclude this speech. This year is very vital for us in terms of our physical progress in our running projects, as we are heading for the completion or nearing completion for many of our solar projects like UER, Khammam Devarapalle Package One and Two, Raipur-Visakhapatnam Package Odisha Five and Six, and AP-1 , and even Ganga project.
With that, certainly, we will have to add new projects for which we have to work on the order inflow to the tune of INR 11,000 crore, or in crores, in road, railway, solar, and water, to sustain and scale our business to create value for the shareholders and ensure healthy order book. So we are geared for the next growth phase of the company, and we believe that we will achieve 15%-20% growth in the top line in this coming year, and maintain steady margin in the range of 15%-16%. We have all the ingredients to achieve the milestone with all senior leadership in place, skilled manpower, strategies to move on, digital transformation with automation CapEx, think tank team to explore diversifying, diversity in business.
These strategies, strategic moves are poised to contribute significant value to our financial indicators, fostering a seamless and transparent real-time working environment, and will truly help us to augmenting our operational efficiency and cost optimization factor will positively impact on our bottom line. We can assure to our all our internal and external stakeholders that we are committed to solidify our success footprints in the financial year.... With that, I conclude the update of FY 2024, and, and open the floor for question and answers. Thank you.
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 touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking questions. Ladies and gentlemen, we will wait for a moment while the question queue is set.
There are more than 20 parties in the conference.
Ladies and gentlemen, you may press star and one to ask questions. The first question is from the line of Dipen Shah, who is an individual investor. Please go ahead.
Yeah, good morning, and thank you for this opportunity. Congratulations to the management on a good set of numbers. Sir, I had a couple of questions on the new areas of operations which we are entering. Firstly, on the solar segment, we have got three contracts-
There are more than 20 parties in the conference.
Worth about INR 1,300 crore. So just wanted to understand, like, in terms of our capabilities-
There are more than 20 parties in the conference.
Sir, am I audible?
Yeah, you are. Please continue.
Yeah. So just wanted to understand in terms of capabilities, how are these projects different as compared to what we have been doing? And how have we built up the capacities for installation of these projects? The second thing is that since this is a private party, but it is under the Kusum scheme, so, you know, how confident or how comfortable are we about the receivables from this project? So this is the first set, and I have another set for the new business, which is Namami Gange. Thank you.
Your question remains that this is not a private party contract, this is a Rajasthan district, this is a Jodhpur district they have awarded. The consortium has received the project, which we have split it into two parts, that they would be doing-
Mm-hmm.
Stockwell would be doing 35% of the total project value, and the other-
Okay.
35% of INR 1,300 crore would be done by H.G. So this is one confusion into it. The second part is-
Okay.
In EPC, these projects do have 85% procurement. That is all related to module and structures and, the, say, works, where the poles and transmission lines being laid.
Mm-hmm.
So the 15% of the work which remains civil is the area grading level works and the even fencing. So this is being already done during 2012, 2013, 2024 for [Nymco] earlier.
Mm-hmm. Mm.
It's not that difficult, it's a very normal kind of a project, so it's only procurement part. So we do have already counted out our initial stage EPC team within the company. So that already is in process, and we will be doing within the company itself.
Okay. Sir, since about 85% of the project is procurement, would margins be similar to what we have currently in EPC contracts, or would they be lower than the existing margins, sir?
No, no. So we have, we have kept both the provisions. So since the projects are having, let's say, the tariff, which we, is average 3.27. INR 3.27 is the average tariff we would be getting. So we have-
Mm.
maintained the EPC margin guidance at about 15+ in these, as far as EPC cost is concerned, as well as equity ROI around about 14.5-15%.
Okay, sir, and the project of INR 1,300 crore includes the maintenance also, or this is only the EPC part, sir?
The only EPC. The only EPC part.
Okay, it's purely EPC. Okay. And sir, on the Namami Gange front, there have been talks in the market, you know, previously about the projects not getting, you know, completed on time and there have been receivable problems. Any take on that, sir? Are things smoothed out quite a bit now, and we do not see those-
No, no. It's an initial, it's only initial discussion which we are doing with one of the army, where they are already have involved into already. So they have completed two out of two other projects. So we are looking into this sector, where probably JJM or water sector projects are all there, water desalination plants and water treatment plants. So only an initial point which I have discussed during the speech.
Okay. Sir, lastly, just one question. You have given a guidance of about 15%-20% growth, which should be about around INR 6,000 crore-INR 6,500 crore. Of which, how much visibility have we have in terms of existing projects which are continuing, and how much are we dependent on new projects starting during the year, sir?
Depending on the new project for this current fiscal year, that we only have considered INR 700 crore to be added for the new, for the new projects, that is from highways and railways. Otherwise, all the projects which we are already having, since we are, they are all under execution, they would be contributing significantly in this particular number.
Okay, that's great to hear, sir. Thank you very much, and all the very best to you, sir.
Thank you.
Thank you. Ladies and gentlemen, you may press star and one to ask questions. The next question is from the line of Shravan Shah from Dolat Capital. Please go ahead.
Yeah, thank you, sir. Just, I mean, trying to understand both on ordering flow and the revenue parts. When we have a whole part of INR 10,000-12,000 crore kind of order inflow, versus last time we have said INR 8,000-10,000 crore. First, in terms of the breakup of from which only particularly have EPC, solar, water, railway, how much we are looking at out of this INR 11,000-12,000 crore? Also, given the kind of competition will be there, particularly in the, so will it not be coming at a lower margin?
Before the guidance for the coming year, which is around INR 11,000 crore, which we believe that because of the last year ordering, which is all-time low for NHAI, so this time they would be definitely, post the elections, they would be awarding. They are having strong bidding pipeline. So that I believe, from high end approach, as I have high opportunity or EPP opportunity in highway. Even the MSRTC project, which could not be awarded during the last year, they are all having around INR 90,000 crore plus of orders they are going to award on the... Sorry, INR 50,000 crore plus orders. So this is likely one of the opportunity which we would be looking at.
Another, apart from this, we are already having a discussion because NHAI is looking at the BOT around INR 200,000 crore of orders to be awarded in BOT front. So in this particular, already being contacted by some prominent, as we have discussed during my opening remarks, that we are already in the close connections with these companies, that we would be doing it, their EPC part. And this how, for highway authority, we are looking around INR 8,000 crore of orders to be added and around INR 3,000 crore are balanced from water, where we already have been discussing that we would are looking into this sector as a prominent sector in the, say, just a small part of the solar, as well as definitely INR 2,000 crore plus from railways.
Okay. So INR 2,000 crore plus from the railway and solar and water would be less than INR 1,000 crore combined put together that we are looking at this year?
Correct. Correct.
Okay. And second, in terms of the coming back to on the revenue again, so 30% will go INR 6,000 crore plus kind of a number for this year. So similar run rate, are we looking at for FY 2026 also?
Yeah, of course, because the order, which is around 12,500, if we usually are looking at what we did last year, around 16% year-on-year. So we again would, looking at this number, they would have been, even better if the quantity of Jharkhand package 10 and 13 would have been declared. But definitely it has been delayed because of various reasons. But now we are very clear that, we would be touching around, say, around 17%-18% year-on-year for this year, and it would continue for the subsequent years as well.
Okay, okay. Great to hear that. And then this, what was the INR 10,000 crore plus is there. From that, we are looking at the major revenue and only INR 7,000 crore revenue we are looking at in FY 2025?
Just to clarify, INR 700 crore from the new railway projects, that is where the land is available, and INR 700 crore, INR 500 crore we have considered for from solar for this year. The projects of Jharkhand Package 10 and 13, where the opportunity would be declared in this year only. We are talking of the Jamshedpur and Tirupati projects, where it's only a matter of only financial closure in one of the projects, because the land is almost 90% plus available in both of these projects. This gives us the immense confidence that we will be touching around INR 6,000 crore this year.
Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your question to two per participant. Should you have a follow-up question, we would request you to rejoin the queue. The next question is from the line of Parikshit Kanpal from HDFC. Please go ahead.
Yeah, hi. Hi, Harendra Ji, congratulations on a good quarter. So, my first question is on the solar EPC. So can you help us understand a little bit more on how the supply chain tied up for this? What are the price escalation clauses? Are the prices passed through for the modules? And you are investing almost INR 520 crore, so high equity, so high at 40%, so and how do you exit?
See, first part is, looking into the supply chain issue, as we have already, we have understood that around 50% of the project EPC is a module, which we already have booked, with two prominent suppliers. That is around at a rock bottom price, which is around, as of now, it has never been booked, around INR 13 per megawatt. This is the one move which we already have taken. The second part is the other electrical as installer, transformer, inverters and other things. There are regular patterns. We do not expect any price escalation because we have taken the provision of price escalation, just a three-year trend, five-year trend, which we have seen. Apart from the solar modules, these are all the products which are all stable.
Say, the one part and the second part, which is very important, the equity and the monetization. So we are looking into this part where the equity definitely is around INR 500+ crore, which is, we can—we may be able to monetize the project if the equity IRR is this much. And we already have seen that few projects have been monetized once they have been completed. But even if we retain the project for another two-three years, once we put the cluster of the portfolio where we could even monetize the later stage, we will do that.
But sir, what is the timeline for execution and completion of this project? And also out of the INR 1,307 crore, what is your share of order book in this, and what the part you will be completing?
Order book, it does... this is 55-35 ratio. So 35%, they already stock well has been, this has been taken out on the total order value. So INR 30 million is the order which we would be doing in this particular financial year as well as next financial year. Those are 18-month contract projects, the LOI which we received in the month of March. So right from first May, where the, already they have given the clearance for the land and every other thing. So it has been started. 18 months from now, it will be roughly around, say, time, sometime December 2025, likely they will be completed.
Okay. In presentation on the railways, so now you have added new orders in the railway segment when all the, and some of the peers are exiting railways have cut down their exposure, given the milestone-based payment issues and working capital issues, right-of-way issues. So how do you read this while taking these orders? Do you think these will be profitable and they'll not pull down the overall blended margins for the company?
In railway projects, earlier, whatever railway projects were being offered, they were very small projects, and I think within just the last three years, the jump on EPC projects has been started in the railway projects. Now, they are also working on the same model as NHAI has worked almost 10, 15 years back. Now they are figuring it out very clearly that the decision has to be given, and the land, if it is available. There are two major factors. One is the decision, and I have seen that there's a significant change in even the schedule of milestone, where the payments shall be made. Even it is better than NHAI. NHAI are also looking into, say, change in their payment schedule, where they already have given last two, three years in Atmanirbhar.
Now we are following the same model, that cash flow is very important. So it was last many years that, this definite railway struggle was there, but we have seen a significant change, and I think for INR 200,000 crore of projects there are to be, say, executed plus, and it's not only railway electrification or signaling and transmission. They are all civil and, it's a DFCC or even the high-density corridor, where the construction of viaducts are there, even station. They all require the key change, which I believe they already have initiated.
But what is the difference in the net working capital days here versus the road segment? So I think we are at about 30, 31 or 35 days of NWCD three, and there that will be a deterioration in the next revenue from this go on.
No, I think, as we have experience in metro, definitely the working capital cycle has definitely skewed very high, and no doubt. But in railway, we have seen that we are working in the railway projects for Bilaspur, we are getting very timely payments. Every month we are getting, in Kanpur also, whatever we bill, we usually are getting the payments. So not much of a contract or unbilled is being created over there, but definitely some portion is there. But again, as we have seen, as we there's not much of the stuff is to be built up in these kinds of projects, whereas highway it is very much required. So there are, a mix, of it. But in any case, we are getting monthly payments where almost Schedule G and Schedule H are very exhaustive.
Okay. This is the last question on the BOT opportunity. So you will play through subcontractor, or you'll also, directly also bid for some of the BOT toll projects?
As of now, we are not at all interested in BOT tolls. We are already, with Adani we are working. This is the second project we are working. I believe we worked for four projects, and this NHAI, they approached us, and we worked too. So we look forward to this opportunity working as a EPC contract, supplier, say, say, support to these, parties.
Okay. Okay, sir. Thank you, Mr. Mishra. Those were my questions.
Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants, please limit your questions to two per participant. The next question is from the line of Jiten Joshi from Axis Capital. Please go ahead.
Yeah. Good morning, sir. Thank you for taking my questions on both sets of numbers. So first request is, if you can send the HAM projects breakdown between equity and debt and the grant received, because this is not-
Your voice is not very much audible.
Sir, you can hear me now? Hello.
Fine. Fine. Yeah.
Yeah. Sir, the first request, if you can share the HAM projects break-up, which you usually share in the presentation in terms of equity, debt, grant, and, you know, which will be really helpful. I think this is not part of our presentation this time.
You are talking about the equity side?
Yeah, HAM total breakup of equity, debt, and, you know, -
I'll continue. In the INR 4,061 crore, which is the total requirement, equity requirement, INR 694 crore already has been infused. Balance equity in road is INR 767 crore, out of which we are assuming that, you know, in the year 2025, we would be doing that INR 505 crore, 2026, INR 131 crore, and followed INR 131 crore in 2027. So this is for-
So you said, sir, you said INR 504 crore in 25?
25. 25 is 505.
505. 26, how much, sir?
It is 1:31, and balance 131 is 27.
In 2024, we have infused INR 694 crore.
In 2024, we have already done 694.
Okay, 694. But if you can give the breakup in Excel, because we are used to giving presentation. So that is fine.
Long list of all of 10 projects, we definitely would be providing that.
Sir, coming back to the question on solar, I'm just harping on it. If I understand correctly, this is a 65/35 JV. And sir, the project is for 543 MW, which also will be done in 65/35 JV. Right, sir?
Yes.
Sir, on the tariff, you said 3.72. Sir, what will be the total project cost? I'm not talking about the EPC cost. What will be the total project cost on which you are calculating equity IRR of 14%?
It's not 13%, it's the equity where the GST is also being considered. It's around INR 123 crore.
So actually, when you are doing, calculating the IRR, you are including the GST, right, sir?
Yes, of course.
So this 2,300-
Okay, so this INR 2,300 crore is your share or it's a total project?
The total project, INR 2,300 crore, which we have considered INR 5 crore.
Sorry, sir, can you please repeat? I couldn't get you, sir.
The total project value is for INR 2,340 crore, and-
Okay.
They are talking of the total project value, so put together. For us-
This is including GST? Hello?
Yeah.
So, this your share will be 65%, and you will be investing INR 540 crore including, which will be including GST, right, sir?
Yes.
Okay. Okay, okay. Sir, what will be the PLF? It is mentioned 19%, so you are targeting anything higher or you will maintain the same PLF?
Sir, PLI, there is a-
PLF, PLF, PLF.
It's not PLI. So basically, we are getting average around INR 27 lakh per megawatt in this project as a stint. So there's a subsidy being provided to us, while we are commissioning this project, during the commissioning.
This subsidy will come to the parent, sir?
Yeah, of course. Of course. So as a developer-
Yeah.
We are doing two arrangements. One is the tariff, which we will be getting from the DISCOM on a monthly basis. And the second is, Why we are doing this project, and during commission, we will be getting this particular, this is roughly, this varies from project to project, but it is roughly around INR 27 lakh per megawatt.
Thank you. The next question is from the line of Anupam Gupta from IIFL Securities. Please go ahead.
Yeah, so just continuing on the solar project. So here you said you have tied up the procurement, but what is the, what are the clauses? Is the escalation, whatever happens, is it to your account, or are you able to pass it on to the-
No, no, not at all. Say, in these projects, so the escalation is to our account only. We have earlier considered, but definitely, fortunately, we are getting this project below estimate from whatever estimate which we have done, and the procurement prices are much lower. It's an all-time low.
Okay. Okay, understand. And in terms of, so you said there is an O&M of 15 years. So once constructed, you will basically maintain the-
It's 25 years.
Okay. Okay, so, and the overall project life is also 25 years, so the 3.27 per unit, which you said you'll get it for 25 years?
Correct.
Okay, the subsidy, sir, which you mentioned, INR 27 lakh per megawatt, is it coming to the SPV or is it coming to H.G. Infra during construction?
No, it is coming to SPV, but definitely we have considered certain portion to be passed on to EPC.
Okay. Okay, understand. Okay, and the second question is on the, on the margins front. So you have obviously diversified into railways, solar, and you're talking about going into water also. So far, the contribution has been very small in terms of revenues, but incrementally, as you go to FY 2025, 2026, obviously the share will go up. So what sort of margin trajectory should one expect? Should you go down, let's say, slightly to close at about 15%-14%, or you'll be able to maintain these levels?
As of now, which we have seen, as far as past experience with the project, which we already have, having had, and furthermore, which would likely get the for the year and on, it doesn't seem much of a dip from this. Say the 3% is the lower side, which we have considered.
Okay. Okay. Understand. And you said, in terms of monetization, just coming back to solar again, just in terms of monetization, you plan to monetize this, or what is the, how do you look at it once the project is completed?
No. See, there are many other projects which they already have been done, because the solar do not have a long story, which we have seen, that there are number of projects available in the market, they have been monetized. But definitely, yes, now onwards, there are not many paths, the paths to these projects being commissioned. So the, and as per total interest of the funds, where the equity IRR are being maintained, and this is a very less O&M cost. Say, just we have seen the INR 4-INR 5 lakh per annum, per megawatt is the O&M cost. It's not like, totally not like roads, when roads or any other projects which we have done, O&M is a big risk. Here, it's not a risk.
Hmm.
We would be able to do that.
Okay. Understand, sir. No, that's all from my side. Thank you.
Thank you. The next question is from the line of Mohit Kumar from ICICI Securities. Please go ahead.
Yeah, good afternoon, sir, and congratulations on a very good set of numbers. So my first question again on the solar, sir. In this particular sector you are taking, we are taking a discom risk. Isn't this unrelated sector? Are you thinking of scaling this business up, or this is a one-off?
No, definitely, the entry into this sector is just, so not only that, it's a strategic kind of a decision being taken. We are looking into the HAM, shrinkage of HAM projects in NHAI, where the margins are not that big now. And even the NHAI is coming into, many projects which are on a BOT mode. So with that, we have taken that, and, we would be looking into this diversity, where, it's not only for restricting the solar power, rooftop solution, industrial. But definitely, the margins at both the level, EPC as well as equity IRR, this should be maintained. That we already have guided, that initially also. So we're looking into the back end, into the any, module manufacturing also cannot be ruled out in this case.
This is looking at a larger play in the solar. Is that right understanding?
Yes.
Understood, sir. My second question is on the pipeline for the NHAI. How confident you are that this year, the NHAI will bid out more HAM and more BOT assets? You did mention INR 200,000 crore, but I think of the pipeline which stands today, it's around INR 30,000 crore, which is still not getting finalized.
Yeah, sure, that initially, I think they are talking for BOT pipeline around INR 200,000 crore. Initially, I believe that they are prepared with only INR 50,000 crore of project on BOT. For sure, there are many HAM projects in the bidding pipeline. EPC definitely are not a big number in now project. As the cabinet approves this Bharatmala, which has been now scrapped, almost. There's a new document which is going to be approved, where entire 2047 and 2035. I think there are two milestones which they are, 20,000 km on the green, the greenfield projects also to be developed. I think it's not that they are all dried up, but it may take some more months, a few more months this year.
They are very, and we are also very much hopeful that we are to be awarded around 6,000 odd kilometers during the year and beyond whichever mode.
This includes NHAI and BOT, right? 6,000, 6,000 kilometers.
Yeah.
Is that right?
Kilometers. Yeah, so roughly it comes to be INR 150,000 crore.
Okay. And how do you think about this? Is this the Maharashtra tender? Do you think this will get finalized the next couple of months, or it will take its own sweet time?
No, I think it got delayed because of the election only, and now very much clearer. This already RFQ down, RFP has been received, one tranche they have already have received. Second tranche also they have been received. With that, I think I believe within a month or so, it would be all open and the opportunity for all, it is all available, I think.
Thank you. The next question is from the line of Ketan Jain from Avendus Capital. Please go ahead.
Yeah. Hi, good morning, sir. I have just two questions. The first question is on the interest level. Sir, what interest rates are you seeing at a project level for a HAM project and for a solar project?
It's almost similar for solar, HAM or highway HAM. So we are having around 8.6%. This is the recent that we have.
8.7%.
8.7%, which we recently have to look at [Jaiprakash 713].
Okay. So my next question is on solar EPC margins. Like, what kind of EBITDA margins are you looking at solar EPC? Because peers like Tata Power and SW report only around 5%-7% of EBITDA margins.
We have already calculated. There are two things. One is that we have discussed is some financial assistance being passed on a per megawatt, but that is around 5%-6%. This loan is around 5%-6%. A INR 4 crore per megawatt is the development cost, EPC cost, which we are assuming. Out of that, about INR 20 lakh is around 5%. This is one part. About the 5%, we are also expecting around 8%-10% in the execution, wherever the supply chain and everything, procurement, with the margin, which we have seen that this is a decent one, which we would do that.
Okay. And also, are you going to take turnkey, like, with modules, contracts or without modules?
This all begins with module only. These are the contracts which is to be done as a turnkey basis. The entire commissioning being done, and I think we need to sell the power to this call. So this is the ultimate aim for development of these. This is a captive project.
Thank you. The next question is from the line of Prem Khurana from Anand Rathi. Please go ahead.
Yeah, hi. Thank you for taking my question, and congratulations on good set of numbers. So my first question was with respect to our intent to get into water segment. I mean, I think you spoke about getting into desal and water treatment as well. So how do we intend to take care of the qualification requirements? I mean, would you have somewhat similar sort of arrangement that you have on, let's say, solar, wherein you went with a local player? Or the idea would be to kind of, let's say, build your own capabilities there, which could take you a little time to be able to have everything in place, and then-
We are working on both the options. One is, I think, one small company which does have the PQ available, where they are doing this business for the last few years. There is one part which we already are discussing at an advanced stage. This is one, and second is strategic partnership through consortium and looking into this opportunity. Because we have seen in last year within the Rajasthan state itself, INR 50,000 crore of order to be awarded, so because of the model code of conduct of Rajasthan state, later on now, central elections are there. I believe that it may be state JDN plus other opportunity, even then add opportunities, there's water desalination plant, water treatment plant, sewage water treatment plants.
Because water is a big sector, is going to be a big sector in coming years.
In terms of solar, if, I mean, on the face of it, it looks as, I mean, the return profile is somewhat inferior to hybrids, right? Because when I look at what you bid for, INR 2,300 crore, we are supposed to introduce only INR 540-odd crore, which is 20% sort of number. And then when I, let's say, compare it with, hybrids, generally you tend to invest 15% of the total project bid cost, right? And the margins are somewhat similar. You're saying 15, 16%, what you'd be able to have. Even in terms of project equity, IRR, again, is somewhat similar. So here, the equity requirement appears to be on the higher side.
Does it mean, I mean, on an overall basis, I mean, it is somewhat inferior, or you believe in the numbers?
What is the total model about? This is the entire portfolio of 100, let's say 528 megawatts. In that equity commitment, which is the per se, what we have discussed with our consortium partner, that we are entering into this where the PQ and everything is available with them, that the entire equity is being done, where the return on equity is around 15% is rest assured, as while arriving at the EPC cost. So this is one part, and EPC of 35% would be done by the partner, Stockwell, and 55% by H.G. Infra. So this is the association which then we want. We definitely will be building our team, because we already are into this particular sector.
So what is important is that we are looking into, not into equity, there are up at, say, 528 megawatts to be developed, that is available, and this again, our own portion of EPC.
Thank you. The next question is from the line of Shubham Sheila, from IDBI Bank, IDBI Capital. Please go ahead.
Yes, sir, thanks for the opportunity. One is like, you know, in terms of equity investment, INR 405 crore in FY 2025, does this include the solar or it's only HAM?
Yes, 505 is road HAM projects.
Okay. So including solar, I mean, any number that you can share?
INR 775 crore, which is expected to be, say, in June, during FY 2025.
Okay, and the similar number for 26 could be how much, sir?
No, no, no. 26 is with these projects in hand, it's only just INR 400 crore, including solar, INR 270 crore and INR 131 crore from roads.
Okay. And, this INR 1,300 crore EPC for the solar, does this also include the O&M for the 25 years, or it's only EPC, purely EPC?
No, no, it's a purely EPC cost to be booked within next one and a half years. That's the maximum. As we're talking about O&M costs, these are not a very big cost that SPV, they would be doing, and SPV is going to get the revenue from the power being sold to, being sold out to this DISCOM.
Right. One last question. I think one of the subsidiary for this solar work that we have made, it is named as a Green Hydrogen Power. So, anything more to be read, like, you know, we are-
We are looking, we are looking into some hybrid, because nowadays, going further, it is a wind hybrid as well as the other hybrid model to be where the green hydrogen is also a hybrid model, where if you are producing power from solar in one area and the, let's say, definitely swapping it out with the hydrogen being produced elsewhere.
Okay. Maybe like going ahead, there could be certain plans, which is parallel to moving into green hydrogen.
Only registered with the government of Rajasthan alone. So this is one part of it, because you need to get registered.
Okay, thank you. That's all from my side.
Thank you. The next question is from the line of Harsh Molchandani from KRIIS PMS. Please go ahead.
Thank you for the opportunity. Wanted to understand that we, we've even incorporated a subsidiary for hydrogen. So one... what exactly in the space of hydrogen we would be looking at? If you could just help us understand.
It's a very initial stage, because we need to get ourselves registered in this hydrogen space. Say, in every state do have their obligation, where we need to register ourselves first. So this is one part of it, we need get getting registered. Post that, any, any opportunity likely to come from state or central schemes, that is the way we are keeping ourselves open for that.
Okay, got it. In case of solar, we would—after this project, say, we have enough competence, we would be bidding for new projects individually, or we would again look for JV mode itself for even future projects?
So till the time we execute this project, let's say within a year down the line, we may have the PQ, in-house PQ, we may do not require such arrangement where the partnership would be done. But by that time, if we require any project where the design, margin, everything is available, we will definitely would be doing in partnership.
Fair enough. Thank you.
Thank you. The next question is from the line of Yash Deshai from Maximal Capital. Please go ahead.
Hello, thanks for the opportunity, and congratulations on the good set of numbers. Sir, I just wanted to know, firstly, about the solar EPC. So solar EPC, our share is INR 1,300 crore, right?
Yes.
That came from project value of INR 23 crore. What is our share from INR 23 crore? Because if 65% is our share, then it would be around INR 1,500 crore.
See, that's INR 2,340 crore including our GST. This INR 1,300 is 55%, excluding GST.
55%. Okay, it's not 65%, it's 55%. That's what I was-
It's 55%, 55.
Fifty-five.
Including GST.
Okay. Okay. And, sir, our margin guidance is 16% for the coming year, for this FY 2025. This is EBITDA margin guidance, right?
It's EBITDA, yeah, 15-16 range.
Our current EBITDA for, say, FY 2024 was around 19%.
No, no, EBITDA remains at 16%, 16.2% for the year.
I think so.
At the consolidated level, you are talking of the consolidated level?
Yeah, yeah, yeah, yeah.
We are talking about standalone.
The consolidated margin would be around?
It's not, say, it's roughly around 2% plus over the margin, which we usually make in EPC.
It would be around 18% then?
... Yes, sir.
Okay, okay. I just wanted to know about the recent project events which we had. The amount of contract for which we bought, which we bid for, and the estimated cost from the authorities were not matching. I mean, the estimated cost was higher than our bid cost.
They all are inclusive. In railway projects, they are all inclusive of GST, so we have taken out GST out of that, because the order value is coming, excluding GST. This is one part where the correction has been done. The one project of highway, which was on hand, so this is around 85% or 86%, which is the EPC value to HG Infra has been considered while calculating this total order received.
Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants, please limit your question to one per participant. The next question is from the line of Prateek Bhandari from AART Ventures. Please go ahead.
Hello? Hello.
Yes, sir, you're audible.
Yeah, thanks for the opportunity. I wanted to understand about the, order inflow of this particular quarter, that is Q4. What was the quantum of it?
Mostly the order which we received is on Q4 only.
Okay. So what was the quantum of it?
It's around INR 2,240 crore, which we received in Q4, 30 railway, 2 highway, and solar projects. Just a small INR 100 crore, which we added in Q3, that was the NTPC transportation, where we are already engaged in doing some projects of NHAI, where the transportation is being done by us from NTPC for our projects.
During the year, we received the order inflow amounting to INR 4,350 crore, right?
Yes, yes.
Okay. Also wanted to, you know, get a sense of your CapEx plans for the coming, you know, FY 25.
That is not a big number. It's around INR 100 crore, and we are also looking at, sort of, phasing out some of the equipment. Around INR 25 crore will be sold out.
Okay. And, what would be the execution timelines for the-
Thank you, sir. May I request you to please rejoin the queue for your follow-up question?
Yes.
Thank you. The next question is from the line of Dhiraj Patel from Centaurus Capital. Please go ahead.
Hello, am I audible?
Yes, sir, you're audible.
Yeah. So, Sugat, I wanted to understand, we have a very well-diversified order book as of now, and, so we have completed most of them. We are near to completion for some of them as well. So I want to understand the process of payment. So at what stage do we see these projects contributing to our, top line or bottom line or so on?
Sorry, I couldn't get your question.
So I wanted to understand the process of payment for these order books. As and when these orders are completed, how do we see the money flowing?
In all the projects we are getting monthly payments.
Okay.
Milestone achievement.
All right. Another question which I had was, so we've seen some slight, you know, drop in EBITDA margins. So should that be a point of concern, or are we expecting these margins to stabilize from here on?
I think there is no dip in the margin as of now. It's almost, 15.7%-16% range during the last four quarters or even more than that.
Thank you. The next question is from the line of Kawal from Samar Wealth. Please go ahead, please go ahead. Mr. Kawal, can you please unmute your line from your end? Due to no response from the current participant, we will move on to the next participant. The next question is from the line of Uttam Kumar Shrimal from Axis Securities Limited. Please go ahead.
Yeah. Good afternoon, sir, thanks for the opportunity. Sir, just wanted to know, the entire equity requirement, for HAM as well as for the solar project, this will be made out of internal accruals or what?
Entire equity requirement over a period of three years is all manageable for the internal approval. Definitely, just to add to it, around INR 200 crore, which we will be receiving during the year, this quarter representatively, is also going to help us in keeping the further equity requirement where the monetization or the auditing concluded.
Okay. And sir, debt level will remain the same, same level, or there will be some increase in debt, during the year to execute these projects and all?
Sorry?
Debt level.
Debt level. No, no, debt level definitely is a mix of all equity and, debt. But the debt-
No, I am asking, sir, the current debt, this will increase further or this will remain at the same level?
No, debt stand alone remains, remains almost similar level. This is around INR 450 crore. It is not likely to increase much. In any case, it would be around INR 400-INR 450 crore range. But at the SPV level, in the at the consolidated level, whenever we are doing any projects where the capital, say, that's being done, so these are all the capital projects where assets being built, which definitely the debt would increase.
Okay, sir. Okay, sir. That's all from my side and onwards.
Thank you. The next question is from the line of Tushar Ghatate from Kamakhya Wealth Management Private Limited. Please go ahead.
Yeah, good afternoon, sir, and thank you for the opportunity. So happy to see the diversification in the company. Just wanted to understand for the next two to three years, how do you see the order book panning out, like for the railway, for the water EPC? How do you see that, your answer?
... See, last two years, we were already discussing about that at around 25% of the order book should be beyond roads. Now, this year around, we are having about mix of solar and railway and road, where it's a very low contribution of road as of now. But definitely, as we move ahead in last two, three years, next two, three years, we expect that we would be in a range of about 50% from roads and 40% from this other than roads. It can be water, it can be railway or even solar.
Sir, as per in the water treatment, we are targeting the full or the industrial water treatment?
It's not an industrial water treatment. It's a very basic water treatment or sewage treatment plant, where the government is offering such plants. So they are being offered, or nowadays there are many state governments which are now coming with on a HAM mode even, and with the central government also assistance. JJM already are the projects which are on EPC mode. It's not on a HAM mode. They are where the water distribution schemes are being, there are yet many schemes which are in the state of Andhra and MP and other states, even in the micro grid irrigation, not many projects which likely would be awarded.
Thank you. The next question is from the line of Shravan Shah from Dolat Capital. Please go ahead.
Hi. Sir, I need a couple of data points, retention money, unbilled revenue, and mobilization advance, as on March.
So as on March, mobilization advance, which has been decreased by INR 34 crore, if you compare it to the last year number. You can take,
Yes, sir, but what's the absolute number, all this retention, unbilled, mobilization advance?
You just load it out. The mobilization advance is INR 285 crore.
Okay.
The data, total data including retention. Total data including retention is INR 917 crore.
Nine hundred... Nine hundred and seventeen. So, sorry, sir, so what's the retention money? So it was INR 115 crore as on December.
No, that has been, there has been significant drop in that particular, because we have already have submitted the bank guarantee in to [Vadali] project that wherever the retention was, was recovered. So that has been released. So retention are now this LD and MD is very low. Earlier it was very high, and now it is INR 38 crore. Out of 917, 38 is this one.
Okay, and unbilled revenue?
Thirty-eight. Sorry?
INR 38 crore is the retention money, and unbilled revenue is how much?
To be very clear, it's not 38, it's 70, say, 88 crore rupees, sorry, it's INR 88 crore. Out of INR 917 crore, 88 is retention, and this other hold, and balance is better with me.
Unbilled revenue, sir?
Unbilled is around, say, 900 plus. Because, say, in the recent past, unbilled in SPV, we didn't, unbilled in these projects. I think it's unbilled is around INR 300 crore plus.
Okay. Mm-hmm. Mm.
Some variable variation being approved. So this would be, I think, decreased in this particular quarter as well as the second quarter.
Thank you. The next question is from the line of Jiten Rushi from Axis Capital. Please go ahead.
Yeah, thanks once again for taking my question. Sir, I want to understand when can we get the Appointed Date for package 10 and 13, and the Chennai-Tirupati and elevated corridor, Kali Mandir, sir?
The EPC of this Junction project, which is INR 610 crore, tentatively by end of June, maximum by end of June, we'll be getting the appointed date. So the 90% plus land is available there. And this Tirupati, again, so more than 90% land is available, but as we would be enjoying the taking the benefit of the financial closure timeline, that we deliberately tentatively would be around September, and we would likely to take the appointed date for that project. And by September end only, we are expecting the package, the starter package 13, the, where the land, as of now, is around 62%. So in package-
Sixty-two.
So the last one, which is by November or December, we would be taking the appointed date of that package.
In 13, you have got 62% land, and in 10, how much % land is available?
It's around 30-something, because there's a forest clearance, which is yet available.
The forest clearance is pending. Okay. And, and sir, one more question on the, state sale. So, you said that you have received INR 360 crore, INR 315 crore, INR 315 crores, and, INR 60 crore is pending that from the NHAI for approval. And sir, there was INR 117 crores also, which was, which was an unsecured loan, which we had given to the SP during the, in, in, in the interim to... for this transaction. We will receive this back also, right, sir, INR 16.7 crores?
Sir, already in three of the packages, it's all clean. Wherever unsecured loan was meantime been, say, added, but we have already, so got it in, during the annuity payment in all three packages. And, I think Rewari Bypass is hardly any big amount. It's around INR 135 crore, which would be Rewari Bypass. And GST payment also, there are INR 60 crore, plus INR 10 crore, where certain GST, say, percentage, where the certain approval is yet to wait for NHAI. So altogether, it will be under INR 200 crore.
Basically, Rewari Bypass was INR 140 crore, but it is now INR 135 crore, and there is a GST of INR 10 crore and NHAI payment of INR 60 crore, which is pending. Almost like broadly INR 200 crore, INR 205 crore. That is what I understand.
Remain the same.
Sorry?... Okay, sir, and that is the, and sir, you also said that in the water segment, you will, you are looking for some acquisition. So if at all you go for a acquisition in organic route, what kind of, you know, capital investment you are targeting in such companies?
The pre-qualification is available. If the discussion is very clearly staged, we are not looking at the big investment to acquire any company.
Okay. And sir, last question. In solar project, you are investing 35% as equity and 65% is debt, because your share is INR 1,500 crore net of GST in terms of the at SPV level, and you are investing almost INR 540 crore. So basically, you are getting this grant, which is supporting your higher equity portion. Right, sir?
The project do have, the project do have both the portions. One is the grant, which we are getting, which is a significant number of 5%-6% of the total, say, EPC cost on 4 MW, INR 4 crore per megawatt, and that is one part of it, and second is the tariff, which we are getting. A normal trend of tariff is around, say, 2.5, across, we have seen in solar. But now, here, the tariff is around 3.27, average tariff is 3.27.
3.27. Okay, sir. That's it from my side. Thank you, and all the best, sir.
Thank you. The next question is from the line of Raj Katay, who is an individual investor. Please go ahead.
Hello, yeah. Sir, now, last five years, we have grown at a phenomenal rate of 35%. So what is your vision for the next five years, in terms of revenue, profit, and any new line of areas of business that we plan to get into?
So what we have already all discussed, we are now working in three sectors, say, road in any case, that would be the prime focus. But going further, we would be maintaining, to just sustain and scale upon the platform which we have created. That is how the company is looking at next five years, to grow at around 15 odd % year-over-year, and, maintaining the decent margin, say, not, not be less than, very much, very much less, and, that is the margin guidance.
Okay. Thank you.
Thank you. Ladies and gentlemen, we will take that as the last question. I would now like to hand the conference over to the management for closing comments.
So thanks, all. We appreciate everyone joining us today on the call and hope that we have addressed all your questions. If you have any further queries, please do not hesitate to reach out to us or our IR advisors, Go India Advisors. Thank you again for your participation. Good day.
On behalf of Go India Advisors, that concludes this conference. Thank you for joining us, and you may now disconnect your line.