Ladies and gentlemen, good day and welcome to the J. Kumar Infraprojects Limited Q3 and nine months FY 2025 earnings conference call. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Before we begin, a brief disclaimer.
The presentation which J. Kumar Infraprojects has uploaded on the stock exchange and their website, including the discussions during this call, contains or may contain certain forward-looking statements concerning J. Kumar Infraprojects business prospects and profitability, which are subject to several risks and uncertainties, and the actual results could materially differ from those in such forward-looking statements. I would now like to hand the conference over to Mr. Kamal Gupta, MD, J. Kumar Infraprojects Limited. Thank you, and over to you, Mr. Gupta.
Good afternoon, everyone. On behalf of J. Kumar Infraprojects, I welcome everyone to the Q3 and nine-month FY 2025 earnings conference call of the company. Joining me on this call is Mr. Vasant Savla, our CFO, and Marathon Capital, our IA team. I hope everyone had an opportunity to look at our results. The presentation and press release have been uploaded on the stock exchanges and our company's website. We are pleased to report another quarter of robust overall performance. The working capital cycle remains within our targeted range. Our robust order book and exceptional execution capabilities position us for continued success, and we anticipate setting new performance records in the years ahead. Our focus on delivering high-quality projects and expanding our portfolio is paying off. We are confident this will lead us to improve margin and return ratios.
As a prominent infrastructure construction company in India, we are well-positioned to capitalize on the sector's growth momentum with a potential and accelerated revenue growth and enhanced multi-year revenue visibility. Our success in a challenging industry is a testament to the enduring values that have guided our organization throughout this history.
The ability to deliver results in the face of adversity requires a combination of determination, flexibility, and tenacity. We believe that technically demanding projects present opportunities for the growth, learning, and differentiation in the marketplace. Our ability to technically qualify and win such projects include first-of-its-kind projects in the country speaks volumes about our engineering capabilities. We take pride as being a nation builder. Now, coming to the financial performance of the company. Consolidated performance highlights for Q3 FY 2025. Revenue from operations for Q3 FY 2025 grew by 22% to INR 1,487 crore, as compared to INR 1,290 crore in Q3 FY 2024.
EBITDA for Q3 FY 2025 grew by 22% to INR 219 crores as compared to INR 179 crores in the preceding year. The PAT for Q3 FY 2025 grew by 21% to INR 100 crores as compared to INR 83 crores in Q3 FY 2024. The EBITDA margins stood at 14.7%, and the PAT margins for Q3 FY 2025 stood at 6.7%. Coming to the consolidated performance highlights for nine months FY 2025.
Revenue from operations for nine months has gone up by 18% to INR 4,061 crores as compared to INR 3,454 crores in the preceding year. The EBITDA for nine months FY 2025 grew by 18% to INR 591 crores as compared to INR 501 crores in the preceding year, and the EBITDA margins stood at 14.6%. The PAT for nine-month FY 2025 grew by 21% to INR 276 crores as compared to INR 229 crores in previous year, and the PAT margins stood at 6.8%.
The total order book as on December 31, 2024, stood at INR 20,529 crores. The order book includes metro projects contributing around 20%, elevated corridor flyovers contributing around 46%, road tunnels contributing around 21%, and others contributing around 13%. We have so far booked orders worth INR 3,586 crores and are confident of achieving our targeted order book for the year FY 2025. We see further acceleration in order awarding in FY 2026. We can now begin the question and answer. Thank you.
Thank you very much, sir. We will now begin with the question and answer session. Anyone who wishes to ask questions may press star and one on their touchtone phone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use only 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 Alok Deora from Motilal Oswal. Please go ahead.
Hi, sir. Good afternoon. Just couple of questions. First is, what would be our debt right now at the end of December, gross debt?
Debt is INR 863 crore.
Gross debt.
Gross debt.
Okay. Got it. Where do we see the debt equity moving now? Since we will be requiring more working capital as the execution ramps up, debt equity should remain in the current range or it could increase further because it is higher than what it was at FY 2024 end?
Yeah. Right now our debt equity is at 0.3.
Right.
We hope to maintain this going forward also, Mr. Alokji.
Sure, sir. We have done pretty strong execution in Q3, despite some impact would have been there from the monsoon as well. For full year, what is the number we are looking at for revenues? Also, order book is pretty decent at INR 20,000 crore, and you mentioned briefly about the orders coming in Q4. What is the quantum of orders we are looking in Q4 and also full year revenue guidance?
We are already L1 in like-
INR 5,000 crores.
INR 5,000 crores of projects. We are hoping to get this in Q4. We have given a guidance of INR 6,000 crores- INR 8,000 crores of orders inflowing this fiscal year. We hope we will be able to maintain this.
Sure. Revenue guidance for this year? We have done, I think, around INR 4,000 crore or so in the nine months.
Yeah. We are looking to close this year by INR 5,600 crores- INR 5,700 crores of top line by end of FY 2025.
Okay. Sure, sir. I think that is all from my side. If I have more questions, I will come back in the queue. Thank you, sir, and all the best.
Thank you, Mr. Alok.
Thank you. The next question is from the line of Dhananjay Mishra from Sunidhi Securities. Please go ahead.
Yeah, hello sir. Congrats on good quarter. You said L1 position is close to INR 5,000 crore and which will be converted in the final order in this Q4. Apart from this, what is our bid size which already submitted, and in terms of bid pipeline, how do you see bid pipeline for FY 2026?
We have submitted a bid for around INR 4,200 crores. We are expecting to bid for around INR 40,000 crores of projects in coming six to nine months.
Okay. Are we seeing which area we are, incremental pipeline you are seeing? Some expressway projects are from Maharashtra side. Are you seeing some big project where we are qualified to bid?
We are already L1 in these two projects of Maharashtra Expressway, Virar Alibaug. One project of coastal road of CIDCO, Navi Mumbai, of INR 1,000 crore. We are bidding for elevated corridors also, some tunnel projects also, and some metro projects also, [inaudible] .
Okay. This Virar-Versova Sea Link project, which is also expected, which is very huge. Are we going to bid with some joint partner like NCC, like we have done before?
Yeah. We are very much interested in this project, and we are surely going to be part of this project, Mr. Dhananjay.
Okay. Lastly, on this balance sheet number, can you give the current receivable inventory and retention numbers?
Yeah. The inventory of raw material is INR 520 crores, and work in progress is INR 608 crores. The receivables are INR 1,393 crores, and creditors are INR 597 crores.
INR 500?
INR 597 crores.
What is your non-fund-based limit, and what is the utilization?
Non-funded limit is INR 4,000 crores, and funded limit is INR 1,000 crores. Utilization is 70%.
In both?
Yeah.
Okay. Thank you. That is all from my side. Over.
Thank you.
Thank you. We will take the next question from the line of Jainam Jain from ICICI Securities. Please go ahead.
Thank you for the opportunity. Sir, my first question is, sir, what is the order inflow guidance and revenue and EBITDA margins guidance for FY 2026?
FY 2026.
15%.
Yeah. We are looking for a 15% growth year on year. FY 2026 will be also around INR 6,300-INR 6,500.
Okay. EBITDA margins guidance?
EBITDA margin will be in the range of, we are doing 14.6%. We will maintain this. We are looking for an upward growth in that. We are targeting 15% plus EBITDA margin in the coming year.
Okay, sir. Sir, we are seeing a sudden spike in the short-term debt levels from INR 382 crores in FY 2024 to INR 646 crores in December 2024. What will be the reason for that?
The reason for the increase is that during the last year, we have been awarded contract of almost INR 11,800 crores. All these projects are now coming into execution and early stage of execution. For that, we have to take the funding that is required for initial setup of project and project startups.
Okay, sir.
We have not taken the mobilization like for Chennai, which was a INR 4,000 crore project. We have not taken mobilization advance from government. That is why the debt level looks to be on the higher side.
Sir, when do we expect the tender to be floated for Virar-Versova linking project?
The DPR is under process. They are planning whether to do five to six packages or eight to 10 packages. I think in another two quarters it should be out.
Okay. That answers my question. Thank you so much, and all the best.
Thank you, Mr. Jainam.
Thank you. The next question is from the line of Uttam Kumar Srimal from Axis Securities Limited. Please go ahead.
Yes, sir. Thanks for the opportunity and congratulations on the good set of numbers. Sir, with regard to the INR 40,000 crore bid pipeline that you mentioned. Sir, can you bifurcate for this INR 47 crore, how much is tunnel, how much is metro, and how much is elevated corridor?
Yeah. You are talking about the projects to be bidded?
Yeah. INR 47 crore bid pipeline that you have just mentioned.
Yeah. There will be some building projects, around INR 8,000 crores- INR 9,000 crores, what we are planning to bid. Some metros and railway projects, around INR 7,000 crores- INR 8,000 crores. And some elevated corridors and tunnels, which will be around INR 30,000 crores.
Okay, sir. Now, sir, with regard to the revenue growth that you have mentioned, 15%, now since most of the contracts that were awarded last year, that will be coming into execution this year. Do not you think, sir, our revenue growth will be more than 15%, around 20%-25%? Because we have got huge order backlog on our total order booking, around also INR 20,000 crores.
Correct. Yeah, Mr. Uttam. We always believe in giving conservative figures and surpassing our targeted figures, Mr. Uttam. That is why we talk very conservatively while giving the guidance.
Okay. Sir, interest cost has increased quite sharply this quarter. In the next quarter and coming FY 2026 also, can we expect same kind of trend, isn't it?
Some types of, you are talking about debt? Interest-
Interest cost. Because it has increased by INR 10 crore on quarter-on-quarter basis, if you see.
Interest cost increase is, as I said, basically because of the increased debt level that is there compared to FY 2024. For this new project that we have got last year, we have to give BG commissions and margins and things like that. It will be around this level or a little bit less. We will try to reduce it to a certain extent.
Okay.
Not at the-
Okay, sir. That is all from my side, and wish you all the best.
Thank you, Mr. Uttam.
Thank you. The next question is from the line of Vaibhav Shah from JM Financial Limited. Please go ahead.
Sir, you mentioned that we have not taken the mob advance for Chennai project. Are you planning to take it? What is the reason why we have not taken it?
Yeah. Chennai, we had four projects costing 900,000. So total around INR 3,700 crores for all the four projects, INR 3,750 crores. We have not taken initially mobilization advance because we were getting a good interest rate from State Bank of India. Okay? That was the purpose of not taking it. Probably, going forward, we may take it for a couple of projects, part of the mobilization advance.
So it is 10% mob advance?
Yeah. It is usually 10% plus 5%, 15% we are eligible to take.
But we have not taken anything for equipment and for mobilizing both. We have not taken anything as of now.
What is the interest rate on that?
On the mobilization advance?
Yes.
It is around 9.5%.
Sir, what is our average cost of debt?
What we have got in from SBI is 9% also. But when you take from them, you have to give BG, and that is also like another 1% additional, my dear.
Okay. Sir, at company level, our cost is 9%, interest cost?
Yeah. Company level is 9%-10%.
Okay.
When you take a mobilization advance, Mr. Vaibhav, you have to give the BG of 110% of the mobilization advance cost. That is an additional cost of the BG. So that adds up on 1%-1.5% on that.
Okay.
The overall cost goes to around 10%, 10.5%.
Okay. And sir, secondly, you mentioned that we are L1-ing INR 5,000 crores worth of projects. It would include two Virar Alibaug projects, eight and 10, right?
Correct.
And third project is which?
Virar Alibaug, and one coastal road project of CIDCO, which is INR 1,020 crore.
Okay. Sir, what about this project called Development of Mula River in Wakad bypass
Yeah
and Development of Hari Nagar Colony. So what about those two projects?
That is already taken in the order. We already received the orders, LOIs for that, and work orders. Already in place.
We have INR 3,570 crores of inflows already with us.
Yeah.
We are L1-ing INR 5,000. So total around INR 8,500 we have L1 plus vitality exhaust.
Exactly. You are right, Mr. Vaibhav.
Okay. And sir, lastly, any update on MMRC packages? When do we expect to get LOA or any status of land?
Yeah. Exactly. You told the right thing because they are in the process of acquisition because they have to pay some money for the land acquisition.
They are just tying up with some agencies for doing that. The acquisition is at an advanced stage. They have prepared orders and all. Now they just have to pay and take the land. After taking the land only they can give the LOI. Unless until 80% land is available with them, they cannot give the LOI.
LOI can come in Q4 or it may spill over to Q1 next year?
We are expecting it to come into Q4 only, but maybe it's 10% chances that it can go in Q1.
Okay. Sir, on the debt part, we saw a sharp increase in Q3. By the year-end, we foresee it to be at similar levels of INR 860 crores, or it may even go higher further?
No, we are looking for INR 900 crores by the year-end, Mr. Vaibhav. That's the gross debt level to be.
Okay.
Yeah.
Thank you, sir. Those were my questions. I'll come back in the queue.
Sure. Thank you, Mr. Vaibhav.
Thank you. We'll take the next question from the line of Hemant Soni, an individual investor. Please go ahead.
Sir, thank you for providing me the opportunity, and congratulations on a steady set of numbers. Sir, the thing which I wanted to ask is, the INR 40,000 crores of order pipeline will be bid by the company. What is the quantum of orders which we have already bid?
INR 4,100 crores.
I just wanted to exclude the L1 part of INR 35,000.
I am talking excluding the L1 part, Mr. Hemant.
Can you repeat the number, sir?
We are L1-ing INR 5,000+ crores of projects, and we have bidded for around INR 4,170 crores of projects.
INR 4,000?
INR 4,100 we have bidded, plus we are L1-ing INR 5,000 crores of project.
INR 40,000 crores of order pipeline is there.
We will be bidding in this coming year.
In this coming year.
Yeah.
Sir, one more thing which I wanted a clarification from your side is, we have the order book of INR 20,500, right? And around L1, we are in INR 5,000, which is expected in Q4. This takes our order book to INR 25,500, and we will be executing around INR 1,600-INR 1,700 out of it. So it will be close to INR 24,000 of order book by end of FY 2025. We had given a guidance earlier of INR 25,000 crores of order book by FY 2027. So are we sort of upping the guidance because we will already be closing FY 2025 with INR 24,000 crores of order?
Yeah. If this order of Line three MMRC also comes in this Q4, which we are expecting, our order book will be around INR 23,000 crores-INR 24,000 crores by the year-end.
Correct.
And we have given a target of around INR 25,000 crores for FY 2027. That is also right Mr. Hemant. As I told you, we always give conservative figures, and we expect to surpass our guidance only.
Right now, are we some sort of upping the guidance for FY 2027 or no?
FY 2027, yeah. GP around INR 30,000 crores as of now what it looks like. We will go up and do an order book of around INR 30,000 crores for sure.
Okay, sir. Thanks a lot.
Yes. Thank you so much, Hemant.
Thank you. Participants, you may please press star and 1 to ask questions. We will take the next question from the line of Deepesh Agarwal from UTI AMC. Please go ahead.
Yeah, good afternoon, team. Sir, my first question is, there is some property tax related request from the BMC of, I think, INR 550 crores. What is our potential liability from this, or is it a pass-through from MMRDA?
Yeah. Hi, Mr. Deepesh. So you know the government, whether it is MMRDA or MMRC, so they are supposed to give us the land for pre-casting yards. So our contract already says that it is to be given by them. If any liability of property tax has to be dealt by the awarding agencies. So this property tax liability to us does not stand. So either like government to government, they will talk and they will settle it, that there is no liability should not be done. If at all it has to be paid, it has to be paid by the awarding agency.
Okay.
Yeah. These are all temporary lands to us. These are not permanent lands. And part which we have already handed over and part after completing of the projects, we will hand it over back to them.
Sure. Sir, secondly, the execution for the two projects, Goregaon-Mulund Link Road and Goregaon Coastal Road has not started because I believe that was supposed to happen through a JV route. If it is console minus standalone, there is not much difference.
No, both the projects, our execution has started, Mr. Deepesh. In fact, our TBM will be coming in first quarter of FY 2026. I am sorry. The shaft preparation have started and mobilization, of course, has been done. All the works are going on well in both of.
Revenue booking for these projects is happening in standalone or at a JV level?
No, this is at a JV level.
Sorry, this is happening at SPV level.
Yeah, SPV level. Exactly. JV level. But the revenue we take in our individual consolidated partners.
Okay. Basically, for us in the standalone, the revenue is reflected, right?
Whatever revenue is reflected in our books are part of JV portion of ours. Whatever is the entity portion, they take in their books.
Okay. And sir, lastly, what is the cash balance as on December? Also you can touch upon what has been the CapEx in nine months, expected CapEx in Q4 and for next year.
Q4 CapEx guidance, I think we have given for INR 500 crores in the coming two years.
In the matters of maintenance CapEx. This year in Q3, it was INR 28 crores, and in the nine months it is INR 106 crores.
Sorry, can you repeat, nine months?
In nine months it is INR 106 crores.
Okay.
In Q3 we had around INR 30 crores of CapEx.
Okay. Possibly next year we will have almost INR 350 crores of CapEx and maybe INR 450 crores in 4Q.
Yeah. It will be more because TBM will be coming in the next year. So there will be TBM, plus there will be some CapEx for this Chennai project. We have given a guidance of around INR 250 crores, INR 300 crores for CapEx for Chennai also. Even that will add up in next year. This year also there will be something, and next year there will be something.
Okay. What is the cash balance as on December?
Cash and bank balance put together is INR 890 crore.
Okay. At a net level, you do not have much debt right now.
Net level, we are cash positive.
Okay. Understood. Thank you.
Thank you. We will take the next question from the line of Ankit Babel from Subhkam Ventures. Please go ahead.
Good afternoon, sir. A couple of questions. The first question is on the macro side. Now, especially from the Maharashtra side, what we have been witnessing is the distribution of so many freebies by the state government. In that case, sir, do you foresee any challenges on the funding side, both on the existing projects which are under construction or even the new one? Or can it impact the future inflows from the Maharashtra government side?
Even I have seen the paper that there are some agencies of Maharashtra who are facing problems in funding, whether it is PWD, and other departments, but we are working with BMC, MMRDA, CIDCO. We have not seen much or any issues with our payments with these departments. Going forward also, I think they are already tying up with different agencies for this funding, so projects are already tied up before. Like for our this, we have got this project of [inaudible] , okay. Which is a INR 2,000 crore project. Already the finance has been tied up for that project. Projects are first being financed and then being done. I don't think it should be a problem going forward.
Okay. Is there any order in your order book which is directly funded by state government?
Order books. State government, even this project, as I told you, [inaudible] INR 2,000 crores, it is an MMRDA project, but they have taken finance on that project already. That and the Thane coastal road, all put together, they have already taken a project financing for the whole corridor.
Okay. You are getting all your payments on time?
Yeah. We are receiving our payments on time.
Okay. My second question is, [inaudible], if I see your company's performance for last many years, your growth has been consistent, your margins have been good, your balance sheet has been good. But somehow your ROEs are very low at around 13%, 14%. So any effort which the management is taking to improve it, maybe at some 18%, 20%, or you feel that the potential is only up to this 13%, 14%?
Yeah. So ROE, if you see, there's this slight or steady increase for coming three, four years. We are of course hoping and targeting to take it further up, ROE and then ROCE both. So it's not that it will be steady at this number. As the top line keeps going up, the ROE and ROCE will further improve.
No. Just by growing top line, it won't. Either your margins have to improve or your asset turnovers have to improve. So what efforts you are taking and what are your ROE targets, say, in the next two years? If you can let us know.
We are targeting ROE of around 15% in coming two years. As I told, we were doing around 14.5% of EBITDA margin. We are targeting our EBITDA margin also in the range of 15%-16% in coming two years. This will of course improve the ROE as well.
This 14%-16%, the new projects which you are bidding, are they coming at those margins? Because what we have been hearing is that there is a lot of competition also which has increased. Are you able to bid at those margins for the new projects? At the same time, the order book which you have currently, is that order book at those margins?
Yeah. We dominate our numbers whether we get the project or not, because we believe in a profitable growth and not only top-line growth. All our projects which are bidded are with secured margins what we are making. Of course, there will be also operational efficiency as we are growing in the size. The overhead cost goes down also and operational efficiency will add up to the bottom line.
Okay, fine. We will wait for that 15% ROE. Thank you so much.
You will surely see that, my dear. Very soon.
Okay. Thank you, sir. Thank you so much, sir.
Thanks.
Thank you. The next question is from the line of Parikshit Kandpal from HDFC Securities. Please go ahead.
Hello. Hi, sir. Congratulations on a good quarter. Kamalji, my question is on the new Konkan Expressway where the Maharashtra government has applied for the environment clearance. Any update on that? When do you expect that to come in, and have you included that in your bid pipeline of INR 45,000 crores- INR 50,000 crores for next six months?
I think even that thing is right now in the DPR stage. That will again take two to three quarters for the tenders to float, Parikshit. Of course, when it comes, we will be part of that. We will try to bid for that as well, which are more structural-orientated project packages. I am not very sure when the tenders will be floated as of now.
Okay. Beyond that, last year, MSRDC was one which helped us get good order inflows, despite last year being weak in terms of overall ordering. I am talking about FY 2025. Do you think in FY 2026 enough opportunities coming in which could help us grow 15%-20% on the order inflows, because MSRDC was a large bid out. Beyond that, are you seeing anything on the Maharashtra side which contributes lion share to our order book? Even the BMC budget is now out, whereas there has been an increase. Do you think any large project beyond the Konkan Expressway which may or may not happen, coming in from Maharashtra from the states then?
Yeah. As I told you, and somebody asked also, this project one morning is the BMC which has floated Versova to Dahisar. From Dahisar to Virar and Palghar also, they are planning this link, which is INR 80,000 crores of the project. That will surely come in two quarters. Apart from that, they are also targeting to increase this metro network in Maharashtra. Whether it is in Thane, whether it is the underground metro from Colaba to Post Office, and of course, this airport to airport is coming, but which will be on BOT.
There are some projects in Mumbai CIDCO, two lines they are getting in on EPC. Pune, there are metro lines coming up. Metro in Maharashtra also, there are huge possibility. This INR 80,000 crores of Dahisar to Virar and Palghar will be there. Apart from that, of course, some elevated corridors, flyovers, are also in pipeline in Maharashtra.
Do you think there will be a good ordering even next year, which is expected? Coming to the civil part, it is 8% of our order book, which could be much higher and bigger, especially in the government building side. So how are you thinking there, and do you think that segment you are inclined to grow substantially from here on?
Yeah. Parikshit, wherever the opportunity is there, if we got this opportunity of building, like NBCC, we took this project of INR 1,000 crores now in Noida last month. So when we get an opportunity, we strike for it. So that proportion of 7%-8% can go to 15% or can be at 7%-8% also. So it's all on the right opportunity and getting it at our numbers. Because as I told you before also, we don't want to go very aggressive and take projects at any number. We want to maintain margins, the property margin of 14%-15% minimum, then only quote for the project. So we are bidding all the projects with these numbers. So if we get, whether it's in building, whether it's in tunnels or flyover projects, elevated metro, we are in for that.
Okay. Just the last question on the Tamil Nadu side. So how has been the progress on the metro projects there? How is the pipeline looking in Tamil Nadu for us to expand or get new orders? What are the opportunities which are available for us to get the orders?
Yeah. So our project of NHAI, which is INR 6,700 crores in Tamil Nadu, is going very well now. It's picked up very good pace. We've done already around 750 or 800 piles in that. A lot of piers are done. The segment casting is started. So that project is online. And we have also taken one project from the state government costing around INR 600 crores. Even that is going in full swing. So there are other projects also coming in Tamil Nadu, some elevated structures by NHAI also, and state governments are in pipeline. We're looking forward, and there's some expansion of metro network also in Tamil Nadu they're planning. So we'll be looking for the right opportunity and bidding for that as well. Since we are very-
Metro, we are not doing that. I was wondering that in metro, especially in metro-
Right now, we do not have a metro project. We are bidding for the metro project, but we could not get there in Chennai.
Okay. But you are interested in doing metro there in Chennai.
Yeah. Why not? Of course. We have full set up for the metros.
Okay, sir. Sure. Thank you, sir. Those are my questions.
Thank you, Parikshit.
Thank you. Participants, to ask a question, please press star and one on your touchtone phone. We will take the next question from the line of Shravan Shah from Dolat Capital. Please go ahead.
Hi, sir. Thank you, and congratulations on good set of numbers. Sir, couple of data points on the balance sheet, sir. What is the mobilization advance, retention money, unbilled revenue?
Shravan, mobilization advance is INR 557 crores.
Okay.
And unbilled revenue is INR 608 crores.
INR 608 crores. And retention money is?
Retention is INR 338 crores.
INR 338 crore. Sir, just a couple of questions. Sir, regarding this INR 550 crores BMC property tax notice, obviously you said that the responsibility is on the government, whoever be the authority to pay. Just trying to understand, right now in terms of the timeline or in terms of the worst-case scenario, do you see any kind of financial liability can come to us?
Absolutely not, Mr. Shravan.
Okay. Got it. Second, sir, this year already L1 plus already what we have received INR 8,506 crores, INR 8,600 crores order. So in the fourth quarter, how much more do we expect to get the orders? For next year, FY 2026, broadly, how much we are looking at in terms of the order inflow?
This year, as we told, we are having L1 in around INR 5,200 crores of projects. So we are expecting some orders out of this only. The complete orders or maybe something may still in Q1. Apart from that, whatever we have bid, if it gets opened early, it does take, after opening also, the process around one and a half, two months. So maybe we may, if something is there, I’m not sure, out of this INR 4,000 crores of your bid, if something comes in this quarter. Secondly, for FY 2026, again, we are looking for around INR 6,000 crores- INR 10,000 crores of order inflow.
Okay. And sir, this INR 4,170 crores that we have bid, if you can help us, how many projects, or maybe if you can specify the value of the two, three, four projects, whatever we have bid.
Sure. So we have bid for this project. So one is this railway line at Indore. So like of RVNL costing around INR 1,200 crores. Okay? So this is a tunnel which is there in Indore, and the other big one is this twin tunnel of a metro line by [inaudible]. Again, in Indore.
Okay.
INR 2,500 crores, the other one is INR 1,200 crores. And there are some other small projects of INR 3,350 crores and so on.
Okay. Got it. Second, sir, just wanted to understand. So currently, I think, correct me if I am wrong, we have seven TBMs and the eighth one for the GMLR will come. So these seven TBMs right now, are we already using projects? Because broadly, if I am now looking at the metro segment as a pie is just at 20%, and in that also, the underground metro is just 9%. So just trying to see, is there a possibility that if we are not using or maybe if we are not seeing that it can be used in next one year, is there a possibility to sell it off or?
No. See, right now all the TBMs are in use, whether it is Mumbai, Delhi, and Surat. The TBMs right now are in use in all these three projects. Correct? There is Surat Metro, Delhi Metro, and Mumbai Metro. We are already bidding for some projects of underground. As I told you, this is Bhopal Metro, this Indore Metro, and you are using Delhi Metro. Of course, when the metro comes, it takes a couple of years for the TBMs to be in use, and that much time is also required for the refurbishment and logistically transporting it. Okay? I think it is more or less, till now, we have been doing it the last 10, 12 years, this TBM work. All the TBMs are put in use, and probably six to eight months or 10, one year, some TBMs may be idle. That is the thing.
Okay. Got it. Vasant, sir, can you clarify in terms of the CapEx for next year? Sir has mentioned INR 250 crore-INR 300 crore odd for Chennai and plus this GMLR TBM, which would be close to INR 300 crore odd plus maintenance. In fourth quarter, how much more we will be doing CapEx and in FY 2026 itself, how much CapEx we will be doing?
Shravan, in the quarter four, around INR 150 crore addition of the CapEx will be there. GMLR TBM is coming in the next year. That will get capitalized within FY 2026.
Okay. FY 2026, in terms of from the cash flow perspective, how much CapEx we will be doing in FY 2026?
FY 2026 will be CapEx-wise around INR 400 crores.
Okay. Got it. Second, in terms of the depreciation, which is currently at, for nine months also, we have seen just a 2.2% decline, despite the top line is growing 17%, 18% odd. For fourth quarter and for FY 2026, once this TBM will come, how one can look at the depreciation?
As far as FY 2025 is concerned, because of the additions that we are going to make in Q4, there will be little uptick in the depreciation charge. Next year, when the TBM will come again, the other assets will get depreciated, TBM will compensate for that. So more or less should remain at the same level.
Okay. Got it. In terms of the overall working capital levels of whatever currently we have, we do not see any kind of further increase, or do we see any scope of further decrease in the working capital?
Compared to the last quarter, if you see last quarter was 135 days working capital. We have already reduced it to 118 days.
Okay.
I think it should be around the level of-
130 days.
120- 130 days.
Okay. Got it, sir. Thank you, and all the best.
Thank you, sir.
Thank you. We'll take the next question from the line of Jainam Jain from ICICI Securities. Please go ahead.
Sir, thank you for the opportunity. Sir, as you said that we will be bidding for INR 40,000 crore- INR 50,000 crore of projects in upcoming financial year. Can you just provide a brief segmental breakup of that?
Yeah, I think I have already told, but again, I will tell you. For building projects, we will be putting around INR 8,000 crore- INR 9,000 crore what we have planned, and for metros and railways, around INR 7,000 crore- INR 8,000 crore, and elevated corridors and tunnels for around INR 30,000 crore of projects.
Okay, sir. And sir, is there any upcoming major tender in the short term, as in Q4 FY 2025, in which we will be bidding for?
Sorry?
Is there any upcoming major tenders which is to be floated in Q4 FY 2025 in which we will be bidding?
Right now, we are bidding for some of these projects, and this is a bidding project in Delhi. There are five projects of INR 1,000 crores each. INR 800, INR 900, and INR 1,000.
Okay, sir. Any details about that? I mean, what type of projects are those?
These are building projects by NBCC.
Okay, sir. All five are building projects, right?
Correct.
Okay, well, that answers my question. Thank you so much.
Thanks.
Thank you. You may please press star and one to ask questions. We will take the next question from the line of Purav Singhania, a retail investor. Please go ahead.
Thank you for giving me this opportunity, and congratulations on a good set of numbers. Could you please share the segment-wise operating margins for your order book?
I am sorry, Purav. Can you come back? You are not audible properly.
Am I audible now?
Mr. Singhania, I would request you to use your handset, please.
Hello, am I audible now?
Yeah.
Could you please share the segment-wise operating profit margins for your order book?
Segment-wise profit margins? No, we do not as such segment-wise profit margins, Mr. Purav.
Okay. Another question. Considering that a major geographic concentration of our projects is in Maharashtra, and given the elections, the appointed dates for these projects were quite delayed. Could you please bifurcate your order book in terms of the project for which LOA has been received and for which appointed date has been granted?
All the projects, whether the LOI has been received, the appointed date has been granted. There are none of the projects where LOI has been received and work is not started or the appointed date is not being declared. It is all wherever LOI is there, Purav, we have received the work order and the appointed date as well.
Okay. Thank you. That answers my question.
Yeah. Thank you.
Thank you. The next question is from Hemant Soni, an individual investor. Please go ahead.
Sir, thank you for providing this opportunity again. I just wanted to know one thing.
Yes, sir.
Out of INR 44,000 crores of order, I mean, INR 4,000 crores we have already bid and INR 40,000 is in the pipeline. Out of this INR 44,000 crores of order, what is generally the conversion ratio?
Conversion ratio?
Yeah.
Yeah. This will be around 15%, 20%.
Okay. And, sir, it will be finalized in FY 2026 only?
Yeah. It should be finalized in that because some projects will be coming in Q1, Q2, Q3. Accordingly, it takes a couple of months for them to finalize the order after the bid. It should be done in FY 2026 only.
Sir, one more question from my side. Sir, the budget we had already seen, it is more of a consumption-oriented budget and not a CapEx or infra-related budget. Going forward, are we sort of seeing some slowdown in the pace of orders?
Mr. Hemant, I absolutely don't see any slowdown in the pace of orders.
Okay.
Because we see whether it's all departments or all geography, there is sufficient traction in the order.
Okay. Okay, sir. Thank you. Thanks a lot, sir.
Thank you, Mr. Hemant.
Thank you. The next question is from the line of Shravan Shah from Dolat Capital. Please go ahead.
Hi, sir. Thank you for the opportunity again. Sir, this Virar Alibaug, INR 5,000 crore loan. Is there a possibility that the scope or the value can be reduced? Is there any negotiation, or this number is the final one?
No, already the negotiations were done by them. Like before only, it was like two, three months back. So that is done. I don't think there will be any further negotiations going forward.
Okay. So the original value what we have declared, L1, that remains the same?
I have to check. I think it is the original or the negotiated value. I will check and come back to you on this, Shravan.
Okay. Second, sir, are we looking to increase our non-fund base limit? 70%, sir, as you already mentioned, that is utilized. Are we looking to further increase? Related is that, are we now again, in terms of the equity raising, are we looking to do equity fundraising?
First of all, for the limit fund base and non-fund base, depends on the project. Like if any new projects are there, we demand for it, of course, we have to raise the non-fund base limit, and we'll be first utilizing our unutilized, and then after go for the other one. For the fundraising, as you know, we have already taken the resolution. We'll look for the right opportunity and do it.
Okay. Got it. Anything major in terms of the projects which are already about to complete, if you can spell, particularly the Mumbai Metro one, if you can name when likely to be completed.
All the Mumbai Metro projects are going at very good pace, Shravan. As you know, we have already put into operational this Metro Line three. The major portion was ours only, I think BKC, last October. MMRC is planning to put into operational from BKC to Worli also by April 2025, by free line. Hoping for the best.
Other metro lines are also going very well, whether it's the Line 2B, Line six. Line six, they have some issues, which was sorted out by MMRDA . Even Line nine, the work is going well, [inaudible] . Of course, because ours is a civil portion, and then the rolling stock and the electrification contractors also rope in. Even their work will be there. Another three, four months, underground metro will be put into operational till Worli, and I think by another 12 months, these elevated metros also, one by one, will be started.
Okay. Thank you, sir, and all the best.
Yes, Shravan. Thank you.
Thank you. The next question is from the line of Manu Singhal from Crayon. Please go ahead.
Sir, I was thankful for watching the first one. I would like to know that
Sorry to interrupt you. Your audio is not clear. It is freezing.
Is it better now?
Yes, much better.
Yeah, thank you. Thank you, sir, for the opportunity. I would like to know that whom do you consider your strongest and the closest competitor in similar market CapEx and sales figure annually? What is the plus point that you have over that competitor?
So, Mr. Manu, I cannot name a particular person like this, which is very close, because in our bidding what it happens, there are two criterias. One is your technical qualification, other is your financial. Okay? So there are different sectors, like metros are one, elevators are one, flyovers and these tunnels are one, and roads are there, a building. So there are different people in different sectors. Okay? So of course, L&T is one person who is mostly everywhere bidding with us. Okay? So L&T is there, HCC is there, NCC is there, ITD is there, then Tata is there. These are the people who usually always bidding where we are bidding. Afcons will be there. Hello?
Yeah, got it. Thank you, sir.
Yeah.
Yeah, got it. Okay, thank you.
Thank you. Ladies and gentlemen, as there are no further questions from the participants, I now hand the conference back to Mr. Kamal Gupta for closing comments. Over to you, sir.
I would like to thank once again to all of you for joining us on this call today. We hope we have been able to answer your queries. Please feel free to reach out to our IR team for any other clarification or feedback. Thank you all. Thank you so much.
Thank you, members of the management. On behalf of J. Kumar Infraprojects Limited, that concludes this conference. We thank you for joining us, and you may now disconnect your lines. Thank you.