Ladies and gentlemen, good day and welcome to J. Kumar Infrapr ojects Limited Q2 and H1 FY 2024 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 touch-tone phone. Please note that this conference is being recorded. 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 result could materially differ from those in such forward-looking statements.
I now hand the conference over to Mr. Kamal Gupta, Managing Director, J. Kumar Infraprojects Limited. Thank you, and over to you, sir.
Hi. Good afternoon, everyone. I am Kamal Gupta. On behalf of J. Kumar Infraprojects, I welcome everyone to the Q2 and H1 FY 2024 earning conference call of the company. Joining me on this is Mr. Nalin Gupta, MD, Madan Biyani, CFO, and our IR 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. The company is at an inflection point in terms of its corporate personality, strengthening its capacity to sustain growth in terms of order book and overall performance. FY 2024 has been historic for us so far in terms of order awarding. We have been awarded projects worth INR 7,188 crores in the current fiscal, with five more months to go, and are currently L1 in projects worth INR 1,640 crores.
We continue to grow in operation and financial capacities backed on our powers in bidding and eligibility, have paved the way for securing these transformative projects, positioning us as a reliable partner in the industry. With the ability to execute larger projects, we have embarked on a venture that reshape our landscape and elevate urban experiences. Our in-house equipment bank stands as a testament to our self-reliance, ensuring the swift progression of projects and efficient resource allocation. Timely completion, an attribute we hold dear, speaks volumes of our commitment to delivering results, exceeding expectations, and honoring our promises.
Our proficiency in executing complex and challenging projects demonstrates our specialized capabilities and mark us as leaders in this intricate domain. Coming to the highlights, we have been awarded Goregaon Mulund Link Road project by BMC for a total project cost of INR 6,300 crores, wherein J. Kumar's share is INR 3,088 crores excluding GST.
The project is design, construction, and operation of twin tunnel from Film City Goregaon to Mulund, including box tunnel that is cut and cover at Film City. We have also been awarded Chennai Elevated Corridor by NHAI for a total project cost of INR 3,570 crores excluding GST. Project includes construction of double decker four-lane elevated corridor from Chennai Port to Maduravoyal in Tamil Nadu. Total four packages on EPC mode under Bharatmala Pariyojana scheme of NHAI. Coming to the performance highlights of Q2 FY 2024. The revenue from operations for Q2 FY 2024 has gone up by 9% to INR 1,104 crores as compared to INR 1,013 crores in Q2 of FY 2023. The operating margin for Q2 has gone up by 10% to INR 160 crores as compared to the previous year, and the margin stands at 14.5% as compared to 14.4% in the previous quarter.
The PAT for Q2 FY 2024 has gone up by 9% to INR 73 crores as compared to INR 68 crores in Q2 of FY 2023, and the PAT margin stands at 6.7%. Coming to the highlights of H1 FY 2024. The revenue from operation for H1 FY 2024 has gone up by 11% to INR 2,236 crores, and operating margin has gone up by 12% to INR 321 crores. PAT for H1 FY 2024 grew by 13% to INR 146 crores as compared to INR 129 crores in the preceding year. Our total order book as of 30th September 2023 stood at INR 16,447 crores. The order book includes metro projects, elevated underground contributing 32%, elevated corridors, flyovers contributing to around 31%, and road tunnel projects contributing around 27%, and others like buildings and all contributes around 10%.
Apart from this INR 16,447 crores, we got two orders amounting to INR 530 crores in Q3, and we also L1 in INR 1,640 crores as of now. We can now begin the 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 touch-tone phone. 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 Guneet Singh from CCIPL. Please go ahead.
Hi, sir. Thank you for this opportunity. Our order book is around 4x our annual revenues currently. Looking at the current size of our order book, what kind of top line and bottom line can we expect for the second half of FY 2024?
Well, for the H2, we expect the revenue guidance that we had made of around INR 4,800 crores with an EBITDA of around 14%-15%. As the new order book that we are discussing about will start generating revenue from FY 2025. There will be only a marginal contribution that would be coming up in Q4. For the current year, there won't be any major difference in the guidance that we had been expecting. But yes, from FY 2025, we are hopeful of having an improvement in the top line that we had guided for the financial year FY 2025.
Sir, can you please repeat that guidance again for FY 2025?
FY 2025, we had given an upward rise of around 15% in terms of the top line, and now we expect it should be around in the range of 16%-17%.
All right. So basically, around 15% increment over INR 4,800 crore.
INR 4,800 crore.
All right. 15% improvement, mean growth over INR 4,800 crore, right?
Yes. You would appreciate that as the base keeps increasing, there would be the growth happening on the last year's top line. It increases substantially as compared to the lower top lines of the company which happens in the previous years.
Right. That is great. What is the execution period of our entire INR 1,600 crore order book?
It ranges from three to five years period. Some projects are three years, some are four years, some are five years. On an average, as we are an urban player, we can consider four to five years as an average time period for the entire order book.
All right. That is great. Looking at the current pipeline, what kind of order book would we close towards the end of FY 2024? What do you anticipate?
We had given an order book guidance of around INR 20,000 crore- INR 30,000 crore by the end of fiscal year FY 2024, which we would like to revise it to around INR 16,000 crore which is as we are already L1 in good value of order books that we have seen. There would be an upward guidance rise to the tune of around 1/3. That is 30% increase in the order book that we had anticipated.
All right.
We should be closing at FY 2025 close to around INR 16,000 crore is what we expect.
All right. That is great.
By FY 2024, yeah.
That is great. That's all from my side. Wish you all the best.
Thank you very much.
Thank you. The next question is from the line of Shravan Shah from Dolat Capital. Please go ahead.
Thank you, sir, and congratulations on strong order inflows. Sir, just to clarify, these two L1 order of INR 1,640 odd crore, can you help us, which are these two projects?
These are not two projects, they are four projects. One is of MMRDA, which is a flyover from Andheri West to JVLR, costing around INR 346 crore. The second project is at Delhi of NBCC, that is like a public transport corporation depot costing INR 270 crore. Another one again is of Hari Nagar Colony of DTC, NBCC costing [inaudible] . Hello?
Yes, sir.
The fourth project is of an elevated corridor from Grand Southern Trunk to Saidapet at Chennai. That is costing INR 500 crore. It is total is INR 1,640.
Sir, the third one, Hari Nagar building, you said INR 521 crore.
Yeah.
Okay, got it. Considering, if I look at INR 7,188 crore we have received, plus this INR 1,600 crore, so INR 8,800 odd crore inflow is already there. How much more are we now looking at to bag by end of March?
First of all, this INR 1,650 crore project has to be converted to orders. This will be done in coming time. We have bidded. We will be bidding for around INR 25,000 crore- INR 30,000 crore of projects in coming six to nine months. Let us hope what comes. We are expecting, as Nalin also told, by closing FY 2024, INR 16,000 crore of order inflow by the end of FY 2024.
INR 16,000 crore of order inflow.
Total. Order books. I am so sorry.
Again, just to clarify, in terms of time, I am particularly asking on the inflow front, so how much more? As you mentioned, INR 25,000crore- INR 30,000 crore we are planning to bid in six to nine months. Roughly, can we assume INR 4,000, INR 5,000 crore one can assume to be received by end of March?
Shravan, what we are trying to say is that we should be surely closing close to INR 16,000 crore by end of FY 2024, and the pipelines in the projects will be bidding on different dates. Again, the tender needs to be opened. If we are L1, again, the process. It is a long process. For FY 2024, we give a target now of a revised order book, which is on the upside by around 30%, which is INR 16,000 crore as against INR 12,000 crore, what we had anticipated and we had given a guidance for. These order books are subject to when the tenders are submitted, you should be L1. Committing right now on those numbers, we are not adding on to the order book guidance as of now.
So this is with the current order book that we have bagged and we are L1 into, where we anticipate to stand at an order book of ₹16,000 crore by end of FY 2024. I hope this is clear now.
Got it, sir. Broadly, this INR 25,000 crore, INR 30,000 crore that we are planning to bid, broadly, if you can break it up into segment of flyover building, metro, road, water, broader number would help.
It is basically around major order. This bidding would be in the process of the express highways, some metro projects that we have been bidding in Bhopal, in Kanpur, and some more tenders are there. Mumbai Metro is what we are expecting to bid in this coming six months time. Also some projects for building sectors.
Also roads and tunnels.
Okay. Got it. Second, sir, when you said that 15% revenue growth for this year and next year, we are just saying a 16%-17% kind of revenue growth for FY 2025. So one can assume, because last time we have talked about 18%-20% kind of a growth for 2025 and 2026 also. So how one can look at, is it the much lower number that conservatively we are looking at 16%, 17%? But one can practically, if everything goes well, we can see closer to 20% kind of a revenue growth for even 2025, 2026.
So that, Shravan, we are already maintaining what we are saying, and we believe in surpassing what we say or what we give the guidance. This year, again, from INR 4,200 crores- INR 4,500 crores, INR 4,200 crores- INR 4,800 crores we will be doing by FY 2024. As well into, instead of 15%, we are targeting 16%- 17% of growth in FY 2025. So let's see as the time goes, another couple of quarters, we will see what is the ramp-up in execution and hope for the best.
On the margin front, when we are saying what we said, definitely 14%, 15%. So one is already 14.4%. But last time also we said we will be likely to see a 150 basis points improvement in EBITDA margin in over two years. So can we start seeing that improvement in FY 2025 itself, maybe a 50 basis points, 70 basis points improvement in EBITDA margin FY 2025?
Yeah. So right now what we are doing is 14.4%- 14.5%. As rightly told, we are also targeting a 1% increase in coming eight quarters. Seven to eight quarters, and we should see some impact in the coming year. Yeah.
Okay. Second, broadly on the debt front and working capital. This quarter we have seen the working capital has increased, particularly the payables has reduced INR 200 odd crore, and that's why the working capital increased and the debt has also increased close to INR 127 crore. How one can look at, what's the revised guidance on these numbers? Because on the date front, we were looking at INR 550, INR 600 crore. Currently INR 643 crore debt.
Mr. Madan, we are in—
Yeah. Shravan, working capital, see, quarter on quarter, there will be little bit, eight, nine number of days up and down or so. But trade payable, as you see, in Q1, these were a little higher that time. But Q2 last year, if you see, it was only INR 550 crore. Vis-à-vis that, we are at INR 425 crores. We have been able to reduce INR 125 crores by some innovative methods of bill discounting, payables and all, and helping our suppliers and vendors to complete project faster and all. Trade receivables also, we have been able to reduce by INR 80 crores from June 2024.
Then inventory we have been able to reduce by INR 30 odd crore. These are like, see, we are playing with such a large order book and some projects, some numbers, some papers, some invoices both in there. Working capital, our larger target is to bring it down to 120 days.
Okay. On the date front, sir?
Sorry.
On the date, INR 643 crore gross debt that we have currently. At the same time, GMLR, the tunnel CapEx of INR 300 crore- INR 350 crore we will have to spend. How we look at this date level by end of this year and FY 2025 and 2026, broadly, how one can look at the date level?
GMLR will not come in this year, first of all. The machine will take a long time to get manufactured and delivered and all. It will come somewhere around, not even in FY 2025, maybe end of FY 2025 or so. Seeing our debt equity ratio currently, even at 0.27, we were at 0.22 at June quarter. Even after having this PSL exposure, which Kamal Gupta will come back to on that. We are quite comfortable, 0.27 debt equity ratio in an EPC company is very healthy and business grow, debt will grow, so we are comfortable on that.
We are not expecting a deduction at least by March. This number is fine.
Yeah. So by March 2024, we are looking for a debt of around INR 650 crores only.
Okay. Got it. And just three numbers on mobilization, advance, retention money and unbilled revenue as on September.
Mobilization advance stands at INR 445 crores as of Q2 and we are happy to inform you that reduced from INR 532 crore- INR 445 crore. We have been able to set the sum of our liability against the revenue bills and security deposit receivable is at INR 254 crore, security deposit payable is at INR 234 crore. Anything else beyond?
Sorry, sir, retention money, you said INR 254 crore.
[inaudible] Same name, retention money, INR 274 crore.
INR 274.
INR 274 crore.
INR 274.
INR 234 crores is payable.
It is retention.
Okay. Got it, sir. All the best. Thank you.
Thank you so much. The next question is from the line of Prem Khurana from Anand Rathi Shares. Please go ahead.
Yeah. Hi, sir. Thank you for taking my question, and congratulations strong orders during the year. Sir, just want to understand, given the fact that it's been fairly strong for some in terms of new order additions, and we are targeting on a take our order backlog to almost around INR 16,000 odd crore rupees by this year end, would that need you to go and seek more fund-based or non-fund-based limits? Because you would have to extend guarantees plus next year, I think you would have to incur CapEx for GMLR as well. Would you need to go and seek more limits from your consortium lenders?
Well, Dev, we'll be surely needing more limits to be sanctioned for bank guarantees, LCs, working capital, et cetera, as well as term loans. For the Chennai project, elevated corridor, already we have closed the bank closure with SBI, and SBI was very keen on closing the entire limit on a standalone basis, which has been done. For GMLR, again, we have received sanction of already 50% of the requirement that we need for the project. We'll be surely needing that, and as and when the project is proceeding, we'll be taking the limits. But for GMLR, the CapEx requirement or working capital requirement to the bigger extent would not be coming up in this fiscal year. As Mr. Madan has already informed that we'll be need, the machine would be coming somewhere by after 15- 16 months from now.
The CapEx and term loan that's required for TBM would be happening only after that. The limits, it will be increased and we are very comfortable in managing the same. With the current debt equity ratio of just 0.27, where the company stands, I think we get a good financial deal from most of the bankers as we have never let them down.
Sure. Sir, on the GMLR, given the fact you're saying tunneling machines would be required 15, 16 months hence. So fairly, a large part of revenue recognition would start once maybe we have tunnels in place. Till then, you would have made sure that you do your groundwork and then have shafts in place, and then once the TBMs are lower, which is when we get to have a significant ramp-up in the revenue contribution from this project?
Yeah. So you rightly mentioned that in this entire project of GMLR, which is around INR 6,300 crore, around 70%, close to like 65%-70% comes in from the tunnel. Because out of the entire length of around 7 km, close to around 5 km is the tunneling work. So this revenue recognition will only start for the 70% of the component after like 20-21 months from now.
Sure. Okay.
That's why we are not giving a guidance of 20%-25% growth. That's the reason, because even the base is increasing and these works will start contributing after like 20-21 months from now in a sizable manner. Though we would be booking some revenues by the end of the year or in FY 2025, I would say.
Sure. How about Chennai, the four NHAI EPC packages? When do we expect to start booking numbers from those four packages? Because when I look at the order background, it's flat on a sequential basis. We see they've still not started booking numbers from that. So when do we expect to kind of see these four projects start contributing?
Yeah. We are expecting the appointed date by mid-November. The meters start and Q4 will see some revenue, though because it's in the mobilization stage as of now, and we'll be investing some CapEx towards that as well.
Major revenue will start by FY 2024- 2025. Work will be started from next month only, in terms of mobilizing, not the actual work, because survey and final investigation work is already on. Q4 will see a little contribution from Chennai project.
Sure. Sir, would you be able to share the land status with these four packages? Where are we in terms of how much ROW is already made available to you, and how much more is required to be able to go and seek AD? Generally, you get to have AD once we have 80% ROW in place. So where are we today in terms of right of way as of today?
You are talking about the Chennai project. There are four packages.
Yes.
And like you know.
Yeah.
Three packages already have more than 90% of the land. That is why we are taking the appointed date mid of November. One package is having 86% of the land. By another couple of months, I think by December, we should get appointed dates for that as well.
Sir, this 90% and 80%, these are 3D or 3G or 3H?
What do you mean by that? Sorry.
No. 3D is essentially wherein a notification is given, the land is yet to be acquired. 3D is when OE send the letters, and 3H is when the payment is made.
Okay. I won't be able to give you the exact update on that, my dear, now.
Sure.
But the land for this, out of three, two packages are having 100% of the land.
Okay, sure.
Yeah. So one is having 95%, 90% something. The other one is 86%. Land-wise, there is no issue in Chennai.
Sure.
It should not be a problem at all.
I think I am not sure that you gave that number earlier in the call.
INR 97 crore.
INR 97 crore . How about unbilled, also if you could help me, unbilled revenue as of Q2 end?
Q2 is INR 555 crores.
INR 555 crore. Any change in CapEx guidance? I think we were looking, we had spent around INR 33 crore in first quarter. How much did we spend in Q2 and how much are we expecting for the balance of the year?
INR 62 crore we have spent in H1.
Okay.
We think that will be around INR 150 crore total for the year, including our incremental CapEx, and some CapEx will come for Chennai project.
But this INR 150 crore would include Chennai or Chennai would be over and above this?
It can be INR 150 crore to another INR 30 crore-INR 40 crores plus for this year. Not more.
Sure. Thank you and all the very best for future. Thanks a lot.
Thank you very much. The next question is from the line of Nikhil Kanodia from HDFC Securities. Please go ahead.
Good afternoon, sir, and congratulations on strong first. Sir, few of my questions have been answered. On the basis of the orders that we have received, what would be the current fund-based and non-fund-based limits that we have with us and the utilization for those limits?
Well, we have a fund-based limit of around sanction limit of INR 967 crore and utilized is INR 436 crore. That is around 45% fund-based has been utilized. For non-fund-based, we have a limit of around INR 3,600 crore, where around INR 2,500 crore has been utilized. So Nikhil, it would be around 71%. Total utilization is 67% on an average basis.
Okay. As on date of the total order book that you have mentioned, what would be the percentage of the order book which is under execution?
Which is under?
Execution. Whether all the projects are mobilized, whether we are seeing some execution on the ground, or is it some how many days of pending for those projects?
Yeah.
It could be around INR 9,000 crore is under execution, which excludes the INR 7,000 odd crore order that we have bagged in this fiscal year.
Plus on the other projects also, the mobilization is on. So this INR 3,600 crores of mobilization has already started taking place.
Okay. Thank you, sir. Those were my questions and best of luck for future. Just in case if I have few questions, I will raise during the meeting.
Sure. Thank you, Nikhil.
Thank you. Okay. Thank you.
Thank you. The next question is from the line of Parvez Qazi from Nuvama Group. Please go ahead.
Hi. Good afternoon and thanks for taking my question. My first question is regarding CapEx. You said we'll have maybe about INR 150 crore- INR 180 crore of CapEx this year. What kind of CapEx can we foresee for FY 2025 concerning the TBMs, et cetera, will still probably come then?
Yeah. For 2025, as we told, the TBM partly should be delivered. I think 2025 will see a CapEx amount-wise of around INR 350 crore- INR 400 crore.
Sure. It would be great if you could give us status of some of our major projects like the metro lines that we are doing in Mumbai, Surat, et cetera. While we know the order book figure, but in general, how is the execution, et cetera, progressing there?
The Metro Line 3 is 90% completed, and the department is planning to open the first phase by January 5 coming year. Metro Line 9 is almost 50% completed. Metro Line 2B is 40% completed. Metro Line 6 from Andheri West to Powai is 70% completed. Navi Mumbai Metro is 100% completed. It should be inaugurated now very soon by honorable PM. Pune Metro is almost 95% completed, and Delhi Metro also, work is in full swing, and we have done 16% of the project. Surat Metro, 31% is completed. Santacruz-Chembur Link Road is 90% plus completed. Sewri-Worli, which is a connector from Coastal Road to MTHL, is 60% completed. Dwarka, package one and two of Delhi is around 77% complete. These are some of the major projects what I have handed it.
Sure, sir. Thanks and all the best for future.
Thank you, Parvez.
Thank you so much. The next question is from the line of Shravan Shah from Dolat Capital. Please go ahead.
Yeah, thank you. Sir, these INR 1,640 crore L1 projects, broadly, when can we expect the LOI?
LOI should come in another. We expect the LOI to be there in next month only, by November.
Okay. By November it is done. Okay, got it. Second, sir, on this number, just to again verifying the number, unbilled revenue, I think when I asked, you said INR 454 crore, and then you said INR 555 crore. Three numbers, can you again verify mobilization advance, retention money, and unbilled revenue?
Shravan, first of all, you had not asked unbilled revenue.
Okay, got it.
Unbilled revenue is INR 555 crore.
Okay. Mobilization advance is?
Retention money receivable is INR 274 crore.
Mobilization advance?
Mobilization advance is INR 445 crore.
INR 445 crore, okay.
Yeah.
Okay, got it. Mostly done. Thank you, and all the best.
All right.
Thank you. Participants who wish to ask questions may please press star and one at this time. The next question is from the line of Abhijit Periwal, who is an individual investor. Please go ahead.
Hi. Congratulations on a very strong order flow. I wanted to understand, if you could elaborate on the PSL exposure first.
Yeah, sure, Mr. Abhijit. PSL is, we have bidded for this NCLT project of PSL. This is like, we have bidded for INR 106 crores for this project. And this is a small gestation period wherein we see upside of around 40%- 50% in this, and 12- 18 months, the project will be done. So we have available facility of INR 90 crores of funding separately for this, and this repayment will be done through the sale proceeds of the assets. This is without impacting the liquidity of the company. This is just one other project for us which will add up to the bottom line.
Okay, great. And sir, I understand that for some time now, the TBMs will get free. Any prospective underground projects that you are looking at to bid in the near future?
First of all, Mr. Abhijit, the TBM is not getting free now. Rather, we are utilizing the TBMs in this new project, like whether it's Surat, Delhi or Line 9, all the three locations, we are utilizing the new TBM. This will take another two years, one and a half years for TBMs to get through. And of course, we are also bidding for new projects of underground metros also, wherein this TBM can further be reutilized. As you say, some of the TBMs are used on third or fourth project, exactly. We have really churned the assets. Yeah.
Yeah. If you can tell me what are the prospective underground metro projects that you might bid in the near future, I think maybe that would help.
Yeah. There are a lot of projects coming in MMR also and outside MMR also. MMR, there are three, four projects coming from. So there is one underground there. So one again is from GPO to Line 11 underground, and one more will be from Domestic to International, Navi Mumbai. So there are a couple of projects in MMR. Plus, we have already bidded for Bhopal project, that is underground, and there are some more coming up in other states. We'll be bidding for this underground as well, where the TBMs will be utilized.
Okay. Final question, sir, is regarding this Versova-Dahisar, the whole project which is there. When are the bids expected to be done?
Already the pre-bid has happened, and we expect by the end of this week or next week's maximum, we should be seeing the common set of deviations. The pre-bid reply has been uploaded by the corporation. In this month, for sure, I'm very hopeful that we'll be bidding for this Versova-Dahisar.
The bidding should happen by November, right?
End of November.
November. You would be bidding for I think there is INR 16,000 crore-INR 20,000 crore worth of projects. So how many?
Sorry?
The total project size is I think INR 16,000 crore. Six packages are there.
Yeah, 16 packages.
How many are you looking to bid?
Yeah. It is around INR 18,000 crore is the value of these packages.
Yeah.
We will be bidding for this for sure. We are hopeful of bagging some order book from this area as well. We are very hopeful on this.
Okay. Fine, sir. Thank you. That will be all from my side.
Thank you, Mr. Abhijit.
Thank you. The next question is from the line of Vishal Periwal from IDBI Capital. Please go ahead.
Yes, sir. Thanks for the opportunity. One clarification. GMLR, the order size of INR 6,301 crore, it includes EPC and maintenance both, or it is only EPC?
Well, INR 6,301 crore is the DB cost, that is design and build, and operation and maintenance, which is for the period of 10 years, we will be getting paid another INR 350 crore for it. And there are some other items also, but as of now, you can just take this as DB cost maybe, or O&M is separate for it.
It is on top of it?
Yeah.
Okay. Fine. Second thing for you, given a guidance for the order book of around INR 16,000 crore. If we do the reverse working, inflow comes out roughly INR 9,000 crore kind of inflow in this year.
I am sorry, can you be a little louder, Mr. Vishal, because we missed your question.
Yeah. Is this better?
Yes.
Yeah. What I was saying is, we have given the order book guidance of around INR 16,000 crore, which you revised upward. If you do a reverse working in this order book, inflow comes to around INR 9,000 crore in FY 2024. Based on year-till-date inflow in L1, we are almost touching INR 9,000 crore in this year. I think we are bidding for a couple of projects and pipeline is also heavy. Isn't it that our guidance is little bit on the conservative side on this front?
Yeah, it is on conservative side, but we are believing, when the project comes, it is better to say that. Because right now the L1 projects will be converted to orders, and then we are bidding for this. In this process, maybe because of elections, some of the new coming tenders may go a month here and there. So it is better when the inflow is in today. So INR 16,000 crore itself is a good number, which is upwards rise of 30% from INR 12,000 crore what we have initially Q1 we have guided.
Till you submit the tenders, because there is a lot of process that happens before the submission and post submission. There is evaluation, bid opening. That is the reason why we are not really counting any major chunk of order coming in from the new pipeline bids that we will be submitting. So it is a safe and conservative figure that we have given to you.
Okay. Sure. That is all from my side. Thank you very much.
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 Arpan Rathod from Think Invest. Please go ahead.
Good afternoon, sir. My question is regarding the bank limits. What would be the average cost of fund-based debt and non-fund-based debt?
It is almost 10% for the fund-based.
9%-10%.
9%-10% for the fund-based, and for non-fund-based, it is around 1% for BG commission.
And does it hold good for the new sanctions which you mentioned sometime back?
Sorry?
For the new sanction, whether it will be better?
Yeah, absolutely.
So that would also be in the same range, right?
Yes, correct.
Yeah.
Okay.
The banking team is trying their best to even negotiate on these values.
Yeah, because that would be a huge impact on the finance cost if we can better those terms.
Yeah, we are applying for an upgrade also. Let's see. If we get that will be a good impact on those numbers.
Okay. My second question is particularly on ROCE, considering that a huge amount of CapEx is involved, which will entail higher debt levels. What is the ROCE level which we can expect going forward?
FY 2023, we were at 17.6%. Now we are down to 16.5% or so ROCE, because obviously once your debt increases and all. Overall, considering our EBIT numbers and all going forward, by FY 2027, when we reach our $1 billion revenue or so, we should be around in the range of 20%-21% or so.
Okay, that's good. My another question is on the coastal road project. Is that project started or it still will take some time?
You're talking of the one which is under execution.
The coastal road CIDCO project what you are saying is the MoEF clearance from Delhi has been received last week only. All the clearances are there. I think another two weeks, they just need to take a confirmation from the port and the project will be started. I think another one month by December, the project should start.
Okay, that is great. All the best for the future. Thanks. That is it from my side.
Thank you.
Thank you. The next question is from the line of Nikhil Kanodia from HDFC Securities. Please go ahead.
Thank you for the follow-up opportunity. Sir, I had one clarification. The order input that you have given in your presentation says FY 2024, correct? Which would mean that it includes the INR 530 crore order that you have won in Q3.
Sorry, Mr. Nikhil. Can you just repeat it, please?
Yeah. The order input that you have given in your presentation of INR 7,200 crores, that is FY 2020, right? That would include the INR 530 crore that we have won in Q3 as well.
Yeah, exactly. You are right.
Okay. And sir, what would be J. Kumar's share in that?
What is our share?
Yeah.
Our share of amount only, INR 530 crore. So the INR [ 17,200] crore is all our share, J. Kumar's share.
Okay, that's your share.
Yeah.
Okay. Thank you.
Thanks.
Thank you. The next question is from the line of Shravan Shah from Dolat Capital. Please go ahead.
Yeah. Thank you. Sir, this INR 431 crore military hospital that we received in Lucknow, so it has an O&M component also, which to be executed over 60 months and the rest is 30 months. So just broadly, if you can help us, what could be the O&M value?
I think O&M value is around INR 15 crores. I am not very sure, but it is a very minor, it is not a big amount.
Okay. That's the only It is very small, not the larger 20%, 30% of the value. That's the only thing I wanted to clarify. Second, sir, considering though, we are not saying that or rather we are not counting any major order inflow this year till March. But if I look at from now onwards to FY 2025, so there also one can look at INR 8,000 crore, INR 9,000 crore kind of order inflow. That's the way one can look at.
Mm-hmm. Let's hope for the best, Shravan. This is what I will say.
Okay. Thank you, sir.
Thank you so much. Participants who wish to ask questions, you may please press star and one at this time. Well, as there are no further questions, I would now like to hand the conference over to Mr. Kamal Gupta for closing comments.
Yes. I would like to extend thanks to each and all for joining us on this call today. We sincerely hope that we have been able to address your queries. If you have any further questions, need clarifications or wish to share feedback, please don't hesitate to reach out to our CFO or our dedicated investor relations team. Thank you once again for your time and participation. Thank you so much.
Thank you. On behalf of J. Kumar Infraprojects Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.