Ladies and gentlemen, good day and welcome to H.G. Infra Engineering Limited Q2 FY 2027 earnings conference call hosted by Go India Advisors. As a reminder, all participants' lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand over the conference to Ms. Saloni from Go India Advisors. Thank you, and over to you, ma'am.
Good afternoon, everybody, and welcome to H.G. Infra Engineering Limited earnings call to discuss the quarter two and first half of FY 2027 operational and financial performance hosted by Go India Advisors. We have on call Mr. Harendra Singh, Chairman and Managing Director, Mr. Vikas Jain, CFO. We must remind you that the discussion on today's call may include certain forward-looking statements and must be therefore moved 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 the Q&A. Thank you, and over to you, sir.
Thank you, Saloni. Good evening to everyone. Let me begin by wishing you and your families a very happy Diwali and a prosperous New Year ahead. May the coming Samvat bring happiness, success, and prosperity to you all. India is progressing towards its vision of becoming a $7 trillion economy by 2030 and $30 trillion economy by 2047, and the infrastructure development will play a very critical role in achieving these ambitious target. With sustained government focus on increasing investment by both public and private sectors, the country is witnessing significant opportunities across roads, rails, power, and urban infrastructure. At H.G. Infra, we believe infrastructure development is not just about building physical assets. It is about connecting people, enabling businesses, and creating opportunities for economic growth.
With our presence across 14 states and capabilities spanning roads, rails, metro, renewables, and emerging infrastructure segments, we continue to strengthen our position as a diversified infrastructure company. Let me briefly touch upon the key sector developments and opportunities. The roads and highways remain to be our core business segment, supported by government's sustained focus on highway expansion, improved connectivity, and infrastructure development under National Highway Vision 2047. We expect this segment to continue offering meaningful bidding and ordering flow opportunities. The government continues to work on the rail modernization, capacity expansion, and metro connectivity is creating significant opportunities for us. We are strategically strengthening our presence in this segment through our ongoing rail and metro projects and looking into many opportunities as a pipeline. Regarding renewables and green energy, with India's green energy transition, this is opening new avenues beyond solar generation, particularly in transmission infrastructure and energy storage.
We see significant long-term opportunities in transmission and distribution as well as BESS, which are expected to play an important role in strengthening the country's power infrastructure. Overall, we remain confident about the long-term infrastructure growth story and the opportunities emerging across our focus segments. Our strategy is to leverage our execution capabilities, diversify our business portfolio, and pursue quality projects while maintaining financial discipline and operational efficiency. Let me give you the glimpse of our operational highlights. As of September 26, the company's order book stood at INR 13,685 crore, comprising INR 8,792 crore from roads and highways, INR 2,883 crore from rails and metro, INR 610 crore from renewable projects, including BESS, and INR 1,400 crore from transmission and distribution. The segment-wise road highway contributes 64%, and railways 21%, remaining 15% is from renewables and transmission projects.
The update on the EPC project, as of now, the Adani Ganga Expressway and the UER-II has been completed, and the completion certificate on UER-II, with effect from February 28, 2025, being received on September 23rd, 2026. Very recently, we have received the completion certificate for Adani Ganga Expressway as well. The Jamshedpur Elevated Road project is progressing well with 70.82% of the progress. The Nelamangala-Tumkur project has achieved 73.64% completion and is progressing towards the timely completion and likely to be finished by March 2027. The BESS project is in an early stage with 6% completion only because the land-related constraints. The progress is expected to improve in the coming months.
The Pune-Shirur projects awarded by Welspun at a cost of INR 3,931 crore is currently in a mobilization stage, with work is expected to pick from quarter three 2027 onwards once we are getting the appointed date, which is likely to be there within a month. Regarding the HAM projects, the Karnal Ring Road project has achieved 99% completion, and the company has already applied the provisional completion certificate, which is expected to be there anytime, and the COD is targeted in quarter four 2027. As informed in the previous quarter, the provisional completion certificate for Raipur-Visakhapatnam Corridor OD-6 and AP-1 has been received, and also Khammam-Devarapalli packages one and two, already we have received last year. The COD of this project is expected in quarter three and quarter four of FY 2027.
The Chennai-Tirupati project has achieved 71.8% completion and is progressing well with the target to complete by March 31st, 2027. Varanasi-Kolkata Package 13 has achieved 47% financial progress, and Package 10 has reached 18.6% completion. The Kosi Parikrama Package 6, Ayodhya has achieved 42.4% completion and is progressing as planned. The Narol-Sarkhej project has achieved 54.8% completion and remains on track for timely completion. For the Govindpur-Tangi Capital Ring Road projects of Odisha, that is Package 3, the company has signed the contract agreement on April 24, 2026. The land acquisition is at an advanced stage, and the appointed date is expected anytime within a month. Turning into the progress of railway projects, the DMRC Metro projects has been 100% completed, and just handover process is going on. The Bilaspur, Himachal Pradesh Railway project has achieved 98.3% completion. It is targeted for completion in quarter three FY 2027.
The Kanpur Railway Station project has achieved 58.85% completion, though there has been certain delays because of the blocks not available. The company has applied for extension of time, which has been approved in principle for up to December 2027. The Dhule-Nardana Railway project has achieved 57.6% completion, and the company has applied for the extension of time in this project also, because almost 11 km land is not available as of now. The Gaya–Son Nagar project and Karanjgaon project have achieved 56.2% and 67.2% completion, and there is non-availability of work fronts also in these projects. The company has requested extension on both these projects. The New Delhi Railway Station project initially faced delay due to land clearances. Now, it has gradually picked up, with completion reaching 18.36%. For Thane Metro project, the appointed date has been declared as January 11, 2026.
However, this project is facing challenges related to land availability and local social issues also, socioeconomic issues. The authority is working aggressively to resolve these issues. Anuppur and Mirzapur solar projects are currently in the mobilization phase, with 2.43% and 1% completion respectively. Update on solar project has been as of September 30, 2026, the company's solar project reached approximately 96% completion, while heavy monsoon, transmission line, land acquisition, local disruption has caused execution delays. But these hurdles are now being actively resolved, and the company is deploying necessary resources to meet revised contractual timelines to be completed in next few months only. Financially, 89% of the required project debt is sanctioned, and remaining INR 215+ crore of balance is slated for release in quarter three and quarter four FY 2027, following the plant commissioning.
Operationally, the company invoiced DISCOMs around INR 80 crore in this financial year from 141 active plants and is targeting INR 250+ crore annual turnover once all the plants are commissioned. Regarding the BESS project, the company has already executed a binding agreement with GUVNL and NVVN for three BESS projects. This is around 1,470 MWh. Procurement of long lead items in place, including BESS and PCS, with the delivery expected by January 2027. Civil works at Banaskantha and Dholera are approximately 80% and 60% completed, respectively, with the major material already received. For Charanka, land-related formalities and design activities are progressing, and an in-principle bank sanction has been received. These three projects are expected to generate annual revenue of approximately INR 225 crore upon commissioning. We are expecting that these two projects would be commissioned by March and followed by Charanka somewhere in June 2027.
Regarding the power transmission projects, the company is advancing its power transmission portfolio across Odisha, Uttar Pradesh, and Jharkhand, where the progress across regulatory approval, engineering procurement, and on-ground execution has started. TSAs has been executed for all three projects at Angul, Odisha. Part of the RITOL already has been received, and the foundation work is progressing, and the tower erection is going on very smoothly. At Jamshedpur, Jharkhand, route alignment has been completed, and with the land acquisition underway also in Mirzapur, Uttar Pradesh, land has been identified. The lease agreement with the concerned authority is under execution. The engineering and procurement activities are progressing across all these projects. For Angul, we have received the financial closure, and for other two projects, financial closure is targeted to be executed in coming quarter. This is the update regarding five new HAM assets which has been monetized.
During quarter two, company has successfully transferred 51% of its shareholding in OD-5, receiving partial consideration of INR 103 crore. The remaining holdback amount are expected to be received during quarter three and quarter four of FY 2027, subject to achievement of respective commercial COD and completion of certain punch list items. In quarter two FY 2027, the company has also received an amount of INR 92.3 crore against partial release of holdback in all four earlier assets. Cumulatively, the company has received in total amount of INR 857.46 crore till September 26. Out of the total consideration, the balance consideration is expected to be received in quarter three and quarter four, and subject to final COD and completion of relevant conditions.
With respect to fifth HAM asset, Raipur-Visakhapatnam AP-1, the company has already received NOC from NHAI and lenders and expect to complete the equity transfer of AP-1 project in quarter two FY 2027. Regarding equity requirements of all projects, the total equity requirements for all HAM, transmission, BESS, and solar is around INR 3,050 crore. As of September 26, INR 1,846 crore has been infused in these projects. The remaining equity will be infused in later half of this year and FY 2028 and FY 2027. Moving on to the financial highlights of quarter two and first half of this year. At standalone, revenue has reached to INR 883 crore with an EBITDA of INR 105 crore and an EBITDA margin of 9.9%, with the PAT of quarter two at INR 32 crore at the margin of 3.6%, compared to INR 67 crore and at a margin of 5.8% in quarter two FY 2026.
Revenue for first half FY 2027 reached INR 1,790 crore with an EBITDA of INR 182 crore and EBITDA margin of 10.2%. PAT for the first half FY 2027 stood at INR 60 crore with a PAT margin of 3.4% compared to INR 193 crore and a margin of 6.7% in first half FY 2026. On a standalone basis, our gross debt stands at INR 1,595 crore, which comprises INR 714 crore of working capital debt, INR 400 crore of NCD, and INR 482 crore of term loans and current maturities, along with trade limits and other means of debt. With our expected collection from receivable monetization proceeds, we are targeting to close our standalone debt at INR 900 crore by end of this year. Now, regarding the consolidation financials, revenue of quarter two FY 2027, which reached to INR 974 crore with an EBITDA of INR 250 crore and EBITDA margin of 25.6%.
PAT for quarter two FY 2027 stood at INR 80 crore with a PAT margin of 8.2% compared to INR 52 crore with a margin of 5.7% in quarter two FY 2026. Revenue for first half FY 2027 reached INR 2,074 crore with an EBITDA of INR 553 crore at an EBITDA margin of 26.7%. PAT for first half FY 2027 stood at INR 35 crore with a PAT margin of 1.7% as compared to INR 151 crore at a margin of 6.3% in first half FY 2026. As we are targeting an order inflow of INR 10,000 crore-INR 11,000 crore FY 2027 with approximately INR 5,500 crore secured up to quarter two FY 2027, our growth prospects remain strong across roads, rails, metro, and power transmission, supported by upcoming infrastructure investment and the government's initiatives. We will continue to focus on high-quality projects, disciplined bidding, and timely execution while expanding our presence in emerging infrastructure segments.
With a diversified project pipeline and prudent financial management, we are well-positioned to drive sustainable growth and deliver long-term value to our stakeholders. I will now hand over our call to our IR advisor and request them to open the floor for Q&A session. 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 a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Vaibhav Shah from JM Financial. Please proceed with your question.
On asset monetization, so we have already monetized 100% stake in four assets. So initially, we had mentioned that INR 1,384 crore is the equity value. So roughly, the gain would be something around INR 530 crore because the investment is around INR 850-odd crore. So what would be the tax impact on it, and when will we receive that amount in the P&L? Because we are not seeing any major accruals on the P&L side in standalone accounts till now.
Basically, as we have accounted in last two quarters, we have seen that these are the four projects which we already have monetized. So there is not a gain into equity because the net worth of all those four assets, so at least in OD-5 and OD-6 , that we have incurred significant loss in that net worth. So the collection is almost INR 550 crore of collection is yet to happen out of the four projects and one project which is yet to be monetized, like AP-1. So this is INR 550 crore of collection is yet to be there, which is we are expecting in quarter three and quarter four.
Once that collection happens, then what would be the gain which will be booking in the standalone accounts?
The standalone would be around INR 70-odd crore , which is likely to be there in quarter three or rather in quarter four.
Only INR 70 crore of gain?
Correct. Because the consolidation, the gain in consolidation, which as per the net worth number. If you see, the net worth is actually was having that different number and the collection or the amount of consideration. I can refer you to in detail with our finance team, so they will tell you the entire details.
Okay. Secondly, in terms of the revenue guidance, what would be the revenue guidance and margin guidance for FY 2027? Can you throw some light on how the execution is going on in Pune-Shirur, and what are our revenue targets for the same in this and next year?
As of now, as of year, these are the two big-sized projects. One is Pune-Shirur and Odisha, the CRR project, and one of the transmission as well as Mirzapur project. These are all INR 6,000 crore of projects where the project date is likely to be there within a month max, by mid of December. We are expecting in quarter four, all the projects would be there with that revenue, and the mobilization already has been done in all these projects. We are expecting to be roughly around INR 6,000 crore by end of this year, if you see. As well as margin front, there is a significant, now there is a considerable significance where we are about 11% because of the few projects incurred huge losses.
Now we would be in a range of 13%-14% of EBITDA for quarter three and quarter four and subsequent to this.
Because first half has been only INR 1,800 crore of revenue. In second half, we require INR 4,200, which is 50% higher than the last year second half. We are very confident on that front.
Basically, all these projects where they are appointed is immediately being expected. So we, in any of the scenario, would be doing some INR 3,000 or INR 4,500 crore-INR 3,000 crore in Q4. So this is giving that, this is the There is an immense, whether it's confidently, we are confident enough that we would be able to do that part because the mobilization has been done in all such projects.
Okay. Thank you, sir. Those were my questions.
Thank you. Participants who wish to ask a question may press star and one at this time. The next question is from the line of Shravan Shah from Dolat Capital. Please proceed with your question.
Hi, sir. Thank you. Couple of questions. Before that, just a one clarification. This order book of INR 13,700- odd crore, INR 685- odd crore, so does the unbilled revenue, have we removed from this? So I just wanted to say, when this will be executed, we will be booking this entire as a revenue or this minus unbilled revenue?
No, I think the contract asset is the execution or the part of execution. The contract asset or the unbilled revenue is already being executed, so as far as physical progress is concerned. The financial is okay, there is only collection which is going to be there. It would be again, once you bill them, once we invoice them, then the collection would be there. It is already been executed. So this is a net of INR 13,800- odd crore , net of total projects which are yet to be executed as a balance part.
Okay. This does not include the unbilled revenue. To put it in a simple word, whenever we will be executing, let us assume we will be executing this entirely next two years, so this number will translate into the revenue, the exact number.
Correct.
Okay. Got it. Sir, now coming back to what Vaibhav has asked, so further to dwell down on that. If you can specify the segment-wise, because the number that we are looking at, INR 4,200 crore kind of a revenue, and correct me if I heard wrong, we are looking at INR 3,000 crore-INR 3,500 crore revenue in the fourth quarter. And if that is the case, then in the third quarter, we are looking at kind of a similar INR 800, INR 900 crore kind of a revenue. So just to dwell further, how each segment-wise, if you can specify in the second half, how much revenue we are looking at in the HAM, road EPC, and there obviously the Pune-Shirur is the major one. Then railway, solar, BESS, transmission, each segment-wise, if you can specify, would give a much more confidence that we can achieve this kind of revenue.
So of course, I think as far as the battery is concerned, these two projects, they are likely to be commissioned. So with that, we are assuming that INR 350 crore of this would be there in second half of this year, INR 350 crore. And around INR 300 crore of transmission revenue, which is likely to be there. So this is around INR 340+, INR 300 crore of transmission. And as far as rail metro is concerned, we are expecting that we will be touching roughly around INR 1,400- odd crore of top line in this half of this year. That includes New Delhi, RVNL balance portion, which is yet to be billed, as well as Gaya project, Aurangabad, Dhule, Thane Metro, even just started, where small portion has been just picked up. So these, and even Kanpur railway station. So these are almost INR 1,400. So put together, it is around INR 2,000 crore.
Balance would is going to be from all six HAM. Five HAMs are aggressively, say, pushing. We are at a very advanced stage, like Jharkhand package 10 and 13. Major contribution would be coming from these two projects. This would roughly around INR 700- odd crore to be executed in these two projects, Jharkhand package 10 and 13. There is a U.S. metro which would be executed in that. Even other projects like Narol and Ayodhya and Tirupati. These are the three projects of HAM, which again would be contributing around INR 600- odd crore in this particular phase of two quarters. Pune, we are expecting to be there around INR 600- odd crore , which is likely to be there, which we are going to see that already mobilization being done, utility shifting is at advanced stage.
This project is going to contribute at least INR 600 crore for this half of this year. Put together, along with certain projects like Tumkur is there and Jamshedpur there, the EPC projects, and some small portion which is balance of HAM project which are being monetized. Even in Karnal, small portion is balanced. There are INR 200 crore . There is likely that we would be around, say, doing around INR 4,200 crore of projects likely.
Got it. Then, as you said that in the second half, we will be looking at 13%-14% kind of a margin, and going forward also, 2028, we will be seeing the similar 13%-14% kind of a margin.
True.
In terms of the order inflow particularly, how much we have bidded, and there also just wanted a clarity in terms of particularly on the road side, obviously, we would be looking at that. Recently, the U.P., many projects got canceled, the tender which were there as part of tenders. Just wanted to understand. How many projects across the different segments that we have bidded, that bid is yet to open, and how much more we are likely to bid so that we can get an idea that whatever we are looking at INR 5,000 crore-INR 6,000 crore more inflow in this second half?
There are other projects also. If you are saying that apart from NHAI, HAM, or the EPC projects, there are not many projects. It is around 700- odd crore of project which we already have bidded, and the results are yet awaited. Railway around 5,000 crore of projects. If we are seeing that how we are confident that we would be at least looking at 5,000 to 6,000 crore of new orders to be awarded for the five months. Looking into state, like MSRDC has already again invited those projects which were canceled, so the invitation is there, and ITO has already been floated. Again, the state government, Rajasthan government is again, RSRDC is going to bid for their two expressways in the next four, five months.
NHAI is having this pipeline which is giving us the confidence that even the rail metro, like in metro, we have already bidded two projects, big size, INR 1,300 crore in Jaipur Metro and one in Delhi Metro. Ahmedabad Metro is having few big size projects, like INR 7,000 crore of projects, four, five projects are there. This looks a mix of opportunity where we are hopefully, and transmission also, that we are quite hopeful that we would be able to just add this number.
Okay, so similar kind of a 8,000, 10,000 crore plus kind of a inflow, even let us say if we maybe a one or two month delay, if it would be there by March, maybe April, May. Similar broadly inflow in the FY 2028 also, one can look at, so that what previously we are looking at in terms of the INR 7,000 crore kind of a revenue in FY 2028, can be achieved.
It is quite possible.
Okay. Got it, sir. I will come back into. Thank you and all the best.
Thank you.
Thank you. Ladies and gentlemen, to ask a question, please press star and one now. Thank you. The next question is from the line of Harshal Sharma from AS Advisors. Please proceed with your question.
Hello. Hi, sir. Sir, can you throw some light on what would be the guidance for the fiscal and FY 2028?
As we were discussing that we are targeting that at least with this last one year and this year, we are not having that much of revenue because of slow awarding, appointed date delay. But quite hopeful that we would be doing around INR 7,000 crore in 2028.
Sir, when can we see an uptick in the order inflow?
The orders are already there, so only a matter of time which has been there. The land acquisition and the DPR, and these are all at NHAI and ministry level. We are seeing that the traction is there, but we are quite hopeful in this year around 600- odd km, likely they are just targeting to be awarded. Another project like MSRDC, UPEIDA, and even in Rajasthan state, these are the state expressways for roads. For rails, I think some big size projects already the tenders are there. These are the INR 1,000 crore-INR 5,000 crore of projects for trains and new lines like metro also. The pipeline is mix of, in all the, this sector, it's a mixed pipeline, which we are quite hopeful that we would be able to get.
All right, sir. Thank you. That's it from my side.
Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question. The next question is from the line of Deepak from Svan Investment. Please proceed with your question.
Yeah. Thank you for the opportunity, sir. I just wanted to take it out on this sharp increase in the commodity prices. If you can throw some light on our energy vertical, one on the BESS, and secondly, a project which you have got from the month of April onwards, especially last day. How should we see the margin profile in the new project? And in the battery, are these change in these product prices or lithium prices, is this a completely pass-through? Does it have a completely pass-through mechanism, or how should we look into all these assets?
As far as highway is concerned, definitely, as we have seen the commodity, but been protected by the real-time price escalation for bitumen and crude POL. For rail projects, there has been a hit, and we have taken that hit is going to be there, which we have seen that not a big number is going to be there because we are not having many rail projects which are having OHE and S&T kind of a change. Because in civil work, it is not that impacted. Steel and cement and aggregate is not that big impact is there. For bitumen, it is there. For transmission, BESS has been impacted, but then again, we have taken that the earlier margins in BESS was quite high. Now it has been around 12%, which has been now.
Earlier, it was supposed to be 20%+ , because of this dollar and this currency, as well as the battery prices. But that has been covered and taken into consideration as of now. The transmission with aluminum and copper is playing where the commodity prices have gone a bit 30%-40%+ at the number which we have bidded. But then we have taken into our bid consideration the price escalation which is already being covered in our budget. So we are not likely to be hit severely into these commodity increase.
Okay. Thank you and wish you all the best, sir. Wish you happy Diwali.
Thank you.
Thank you. To ask a question, please press star and one now. The next question is from the line of Rahul Bhutra from Anand Rathi. Please proceed with your question.
Yeah. Hi, sir. I just wanted to understand, I am seeing interest income is coming up on account of contract modification. Can you just give me the color, like what was it about?
Interest income is basically there are few projects of Maharashtra where we receive INR 18- odd crore, that has been booked into other income.
Sir, is there any revenue apart from the interest income, which flows into our top line?
No, no.
Or due to this contract modification?
No, no, not there.
Okay. Second, sir, I see in this stuff, we have invested around INR 350 crore in contract assets. It has been seen over the period of time, our contract asset is bulking up. What is the reason for that, sir? Is there any slowness in terms of billing of our getting the approval for our billings? Which segment is causing for the contract assets to bulking up?
Basically, we have seen that wherever the debtors are there, we have seen a significant reduction. The debtors at March and now number, where the collection is quite now at a significant pace. The contract asset significant amount is being struck in railways because the milestones and the commissioning, because in those particular projects, there are certain conditions that around 10% of the total amount would be only paid once you commission the entire project and hand over those projects. Now this is a significant amount, is around INR 580+ crore into railways. Others do have mix of it, but the HAM project is again having a significant number, where these projects which we already have monetized and Karnal, including Karnal even.
They are the projects where the certain COS variation items and even in Adani project, Ganga Expressways is a variation item, which is around INR 180 crore odd from UPEIDA already COS sanction has been there, but there is certain amount of variation which is yet to be approved from Adani. There are mix of these six HAM projects. There is around INR 700 crore odd which we are likely to be collected in quarter three and quarter four. This contract asset which has now been increased, significantly it has gone high to INR 2,100 crore, would be roughly in the range of about say INR 1,500 crore or rather INR 1,200 crore-INR 1,500 crore by March end. INR 800 crore odd of collection is likely to happen.
Okay. Yeah, got it. Thanks. That's from my side.
Thank you. Participants who wish to ask a question may press star and one at this time. The next question is from the line of Shravan Shah from Dolat Capital. Please proceed with your question.
Hi, sir. Sir, first a couple of balance sheet data points. This unbilled revenue would be the entire contract asset of INR 2,165 crore would be the unbilled revenue as on September?
Yes, yes.
Okay. Mobilization, retention money and for HAM, solar, Ganga, railway, BESS status if you can specify.
The mobilization is around INR 515 crore.
Retention
Debtors, including retention. INR 840 crore is the debtor amount and INR 203 crore is retention for all the asset part. Stock is around INR 495 crore. I think the advances to supplier has gone very high because we have booked all this material. There is a GST with balance with authority, this is INR 288 crore. Cash bank balance is around INR 163 crore.
Yeah.
The drawings already we have concerned. The trade payables is significantly dropped from INR 1,633 crore, now it is INR 1,188 crore.
Yeah. Sir, what would be the HAM data, solar data, railway data, BESS data?
Sir, roughly as I explained about the HAM, the contract asset portfolio, now in HAM again, SPV solar is around INR 236 crore. Transmission is around INR 70 crore, and BESS and transmission. HAM is again, it is a significant INR 500 crore around in HAM. Rail is very small portion.
Okay.
And the certain amount is received from Adani, even INR 113 crore.
Okay. Okay, got it. This quarter, the other income you highlighted that it is for Maharashtra that we have got INR 18 crore. From Q3 onwards, the other income will come back to the normal run rate of INR 3, INR 4- odd crore?
No, sir, we are having certain conciliation claims where we likely, we might, we may get these, but not a very significant amount would be there.
Okay. In terms of the CapEx of INR 66 crore we have done in 1H, in second half, how much more and for next year, how one can look at the CapEx?
This is the CapEx, this major CapEx is all Pune projects where we are doing these launchers and other, not very big into investment into equipment, but these are the shutters of etcetera, which are roughly would be INR 50- odd crore, which by the balance part of the year.
Next year would be the similar INR 100 crore-INR 120 crore kind of a CapEx?
Yes.
Okay. And sir, this Karnal Ring Road also in terms of monetization, this would also will be done by this March, and how much broadly one can look at in terms of the value, the similar kind of a 1.5 times price to book, that way one can look at?
No, it's not likely to be by March because once we receive the PCC, then six months the cooling period, and we'll be applying for this monetization permission from NHAI and bank. It's going to be at least 8-10 months from now. Though we have received the quotation, this offer from two of the investors, but the number likely would be not that big, because of the price indexing. But again, quite that within the two months we are going to close, we would be able to close this.
Okay. So deal would be done in next two months, but in terms of the cash receipt, you said it would take 8-10 months to-
Probably quarter two, probably quarter two next year.
Okay. The five total that we have monetized, so out of INR 1,384 crore, we have received, yet to be received is INR 550- odd crore that we will be receiving third and fourth quarter, and plus the AP-1, so that amount will also be included in the five-
Include AP-1.
Including everyone, INR 550 crore. Okay, including the AP-1. Okay. Got it. Sir, just about the net debt that from INR 1,600- odd crore, we are looking at INR 900- crore by this March. So in terms of the finance cost, so now INR 50, INR 51 crore this quarter, so how one can look at the finance cost for fourth quarter onwards?
No doubt, I think the finance cost because of the very surge in this debt. By dropping it to that number in quarter three and quarter four, roughly we are expecting that INR 80- odd crore of finance cost would be there, and next year the finance cost likely will be stabilized at INR 110-INR 120.
Okay. Got it, sir. Thank you and all the best.
Thank you.
Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question. The next question is from the line of Rahul from Anand Rathi. Please proceed with your question.
Yeah. Thanks, sir, for giving opportunity again. So this contract liability, you know, which we see is increased by INR 273 crore. So can we say that this is the mobilization advance that we received for the Pune-Shirur project? Is it the right to understand that?
Yes, that is INR 170+ crore for Pune-Shirur, one of the project where we have received some amount.
Okay, got it. Second, sir, again coming to the contract assets, sir. Can we say this is the peak level and from here on, it will reduce as we execute further projects? Because what we are seeing is, even after getting all the monetization proceeds, maybe even partially, our debt levels are not coming out. It is getting blocked in the working capital. How should we see? This is like a peak working capital that we are looking at, and now from here on, it should start coming down?
The plateau has been reached in last quarter only. Now significant drop is likely to be there, be it, say, if you see the debt part, if you see the contract asset part, where the balance sheet is showing this number, and then the realization by end of this year is going to be significantly reducing the debt, because contract asset is likely to be reduced by almost INR 700 crore-INR 800 crore by year end. Debt would be in the similar range as we are now, and creditors would be in a similar range as of now.
Okay, got it. And sir, just last question on the technical part, sir. I believe we participated in all the packages of the Link Expressway of the UPEIDA, but somehow, technically we got disqualified. What was that reason for the technical disqualification?
There were almost five to seven odd contractors who were disqualified on the, I think, for a small technical reason, which probably all missed.
Okay, got it. Sir, are there any such technical challenges will be there in this MSRDC projects, or now that they are being floated?
MSRDC project which are invited now, we have the same qualification criteria from three years back when we are qualified for that. That is the same criteria. The bid is only RFP, not RFQ.
Got it. Yeah, that's it from my side.
Thank you. The next question is from the line of Vaibhav Shah from JM Financial. Please proceed with your question.
Sir, when do we expect to receive appointed date for the Capital Region Ring Road Package-III ?
November end or first week of December. So both for Pune-Shirur and this project.
Okay. The revenue which we are seeing in Pune-Shirur, it is roughly around INR 130 crore in the first half. It is mainly because of utility shifting and initial work?
It was utility shifting and certain pre-operative expenses, global expenses which were also there while it is a BOT project basically. We have splitted that to enable getting the cash flows and billing. That was a small amount which was also there.
You are targeting roughly INR 700 crore revenue for FY 2027 from Pune-Shirur.
Quite right.
Yeah. Okay. Thank you.
Thank you.
Thank you. Participants who wish to ask a question may press star and one at this time. The next question is from the line of Arpan Gandhi from AJ Capital. Please proceed with your question.
Hi, thanks for the opportunity. I wanted to ask when can we see improvement in margins and when can we see the margins level go to around 15% and above like it was in previous fiscals?
Probably at the current scenario, it does not look like because of the geopolitical commodity prices as well as the competition all across entire infrastructure. We are not very much confident that the coming one to two years is going to be better.
Okay. That's it from my side. Thanks.
Thank you. Ladies and gentlemen, to ask a question, you may press star and one now. Ladies and gentlemen, that was the last question from the participants. I would now like to hand over the conference to management for their closing comments. Thank you, and over to you, sir.
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