Ladies and gentlemen, good day and welcome to J. Kumar Infraprojects Limited Q1 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 any 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 the call, contain 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 now hand the conference over to Mr. Kamal Gupta, MD, J. Kumar Infraprojects Limited. Thank you, and over to you, sir.
Good afternoon, everyone. On behalf of J. Kumar Infraprojects, I welcome everyone to the Q1 FY 2025 earnings conference call of the company. Joining me on this call is Dr. Nalin J. Gupta, MD, Mr. Vasant Savla, our CFO, and Marathon Capital, our IR team. I hope everyone had an opportunity to look to our results. The presentation and press release have been updated on the stock exchanges and our company's website. We are pleased to report another quarter of healthy overall performance. The working capital cycle remains within our targeted range. On the back of record order book and our execution prowess, we are confident of setting up new performance benchmarks in the years to come. Our continued focus on adding and diversifying project portfolio that involves sound technical capabilities, we are optimistic that this will help improve our margins.
Over time, the company has emerged as one of India's prominent and respected infrastructure construction companies. We find ourselves at the cusp of an unprecedented growth phase for precisely the same reason as they were applied to our sector. We are positioned at a point from where our growth could accelerate, the annual addition in revenues could be larger than the retrospective average, and the order book increment could provide us with multi-layer revenue visibility. If we have got here in a sector marked by high mortality, then it has only been on account of a timeless value that we held dear across time. Accomplishing challenging jobs requires resilience, adaptability, and persistence. At J. Kumar, we believe in challenging ourselves by taking technically complex projects.
Though each project is unique in its own way, some of the recent projects undertaken highlight our engineering capabilities and demonstrate our commitment to excellence, innovation, and delivering high-quality solutions. From smallest diameters sewage tunnel to largest diameter TBM-driven road tunnel projects in India, GMLR, that is Goregaon-Mulund Link Road projects, we are creating many firsts for the country and ourselves. Over the past few years, we have diversified our order book, both in terms of sector as well as geography, and also the technology being used. Our ability to technically qualify and win such projects, including first-of-its-kind projects in country, speaks volume about our engineering capability. We take pride as being nation builders. Now, coming to the financial performances.
Coming to the highlights of Q1 FY 2025, the revenue from operations in Q1 FY 2025 grew by 13% to INR 1,281 crores as compared to INR 1,331 crores in Q1 FY24. The operating margin for Q1 FY 2025 grew by 14% to INR 184 crores, as compared to the preceding year. The EBITDA margin in Q1 stood at 14.44% as compared to 14.3% in previous year. The net profit for Q1 FY 2025 grew by 19% to INR 86 crores, and the PAT margin stood at 6.7% as compared to 6.4% in Q1 of FY24. The total order book as on June 30, 2024 stood at INR 19,820 crores. The order book includes metro projects contributing around 26%, elevated corridor flyovers contributing around 39%, road and tunnel projects contributing 24%, and others contributing around 11%. Thank you, and now we can begin the question and answers.
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 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. We have our first question from the line of Alok Deora from Motilal Oswal. Please go ahead.
Good afternoon, sir, and congratulations on pretty different numbers. Sir, just wanted to understand what is the order inflows we are looking for this year, considering that we already have nearly INR 20,000 crore of order book. So what is our internal target for order inflows for this financial year?
Alok, this year we have already bagged, we are already earning projects worth around INR 6,500 crore. We are looking at an order book close to INR 8,000 crore for this financial year. With the Q1's performance, maybe it may further go up, but INR 8,000 crore is something what we are looking at.
On the execution side, we have an order book of nearly INR 20,000 crore and by end of this year, we might be close to, say INR 22,000, INR 23,000. What is the execution run rate we could look at? Our growth on year-on-year basis has been around 12%, 13% in this quarter on a year-on-year basis. For the full year, what kind of execution are we looking at with such a large order book?
We are looking at a top line close to around INR 5,600 crore- INR 5,700 crore for this fiscal year, which will be a 15% growth on the year-on-year basis. The new orders will actually start contributing significantly from Q3 onwards. I think, Alok, we like to give a number and surpass it. I think this will be mainly from FY 2025, FY 2026, the major contribution and additional growth in terms of the revenue is what we should see.
In FY 2026, we could see even a larger jump in execution, maybe like a 20%+?
Well, I think after a couple of quarters pass, I think it could be more realistic to talk somewhere around in Q4, to give a realistic number in terms of the growth that we will foresee in FY 2026.
Sure. Last question. This debt has gone up in this quarter. Even debt equity ratio is slightly higher than our historical last four years average. Any color on that?
It is basically because of our Chennai project. We are taking working capital simply because we have not gone for mobilization advance there, since the rate of interest in mob advance was much higher, and we are getting at much cheaper rate from the bank. The incremental value is mainly for that and there are some other projects also had some additional working capital requirement.
Sure. We are not looking at any—
The gross debt is just 0.27x, and at net level we are almost debt free with a 0.03x debt equity ratio.
Right. Got it. That's all from my side. Thank you, and all the best.
Thank you.
Thank you. A reminder to all participants, you may press star and one to ask questions. 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 you didn't take any mobilization advance for this Chennai project. So what is the kind of working capital we have already deployed in this project till now?
We have taken around INR 65 crores, I think, as on June 30th.
INR 65 crore you have already deployed?
Yeah, Chennai.
At company level, what is the mobilization advances and unbilled revenue as on June?
INR 407 crores outstanding mobilization advance.
Sorry?
INR 407 crores.
Okay.
It is our mobilization advance as on June 30.
And unbilled revenue, has it gone up from March level?
Unbilled revenue has rather gone down from
INR 553 to—
INR 553 crores- INR 546 crores.
Okay. When do you expect this L1 position to, I mean, when do you expect to get LOA for this L1 position?
It should be later this month or early next month.
Okay. Can these projects will start in this financial year, in Q4?
Yeah, of course, the projects will be started after monsoon. The revenue will be starting coming from next fiscal year.
Yes. Okay, sir. What is the cash position lastly, as of now?
The cash position is, Vasantji will throw a light on that.
It is around INR 550 crore.
INR 650 crore?
Yeah.
INR 650 is the precise number, yeah.
It has gone up from March level. March level it was what, INR 500 crore, right?
March was INR 650. It has gone up by INR 10 crore roughly.
Okay, sir. Thank you. All the best.
Thank you. Before we take on next question, a reminder to all participants, you may press star and one to ask questions. The next question is from the line of Vaibhav Shah from JM Financial. Please go ahead.
Yeah. Have you started the execution for GMLR project?
We have already started the preliminary work, and the TBM has also been ordered, and the pack test for the set machine is going to be in the month of January for first TBM and in the month of March for the second TBM. As well as all the drawings has been submitted, the preliminary designs, the GAD, the segment design submission, soil investigation is completed, site office is constructed. So work is in advanced stage, and all the approvals has been more or less in place. We expect that after the offset of monsoon, we should be able to start the work full-fledged.
Okay. Sir, do we take this in our standalone books, or it comes in console, the revenue from GMLR going ahead?
GMLR will be a separate SPV that has been formed for executing this project, a private limited company. We will be getting the 50% revenue of our share that will be added into the books with consolidation.
It won't come in the standalone EPC revenue?
I'm sorry.
We won't be booking the revenue on the standalone books?
It will be booked in standalone books.
Okay. Sir, secondly, what would be the CapEx for FY 2025?
Usually we do a CapEx of INR 100 crore- INR 150 crore on a maintenance CapEx, repair, maintenance, and miscellaneous CapEx. But in the coming two years, we are expecting a CapEx of INR 450 crore- INR 500 crore, mainly coming in from Chennai and GMLR two projects.
Combined INR 500 crore you are saying, right?
Yeah.
For two years?
Yes.
Okay. Secondly, you mentioned that mobilization advance were at a higher rate in Chennai project. So what was the rate? For our current mob advance of INR 400 crore, what is the blended rate of interest?
For Chennai, it is like we are getting it from SBI at 9%, and the other rate as we are going with this NHAI, considering the bank guarantee charges and all, it could have gone to around 11%, 11.5%. That is why we have gone in Chennai for CC limit. Our mobilization advance, out of INR 400 crore, majority are interest free and I think around INR 60 crore-INR 70 crore out of it will be interest bearing, will be at a cost of around 10%.
Given that difference of 100-150 basis points, you are not taking the mob advance for Chennai?
Yeah, Chennai, 9%-1 1.5%, so 2.5%, 3% difference for there.
Okay. Thank you, sir. Those were my questions.
Thank you. The next question is from the line of Jiten Rushi from Axis Capital. Please go ahead.
Good afternoon, sir. Thank you for taking our question. My first question is on the NHAI project which we have gone in Q1. So what is the status as of now? Because we are hearing negotiations going on and there could be some delay or we can see some cancellation. In terms of the land acquisition status also, if you can throw some light.
Yeah. Today they are having this board meeting. In board meeting, it will be taken forward and accordingly, they are in the process of finalizing the contract. So by this month end, we are expecting the LOI to come.
Okay. So by August and early September, we can get the LOI. The work can start immediately, or it will start in post-election?
Work will start post-monsoon. Nothing connected to the elections. Yeah.
Because this is something which others of your peer sets are highlighting, that the award will start in September post-election, LOI can come in September. Hence the question.
Even elections will be done by end of October.
Okay.
The elections will be by end of October. Yeah, and there are some path land acquisition issues which also they are sorting out. Post-monsoon, we should be able to start our work.
Sir, can you highlight on the current outstanding bid pipeline which are yet to open in terms of segment-wise and value terms?
It is around INR 2,000 crores of projects what we have bided. Mainly it is the Bhopal Metro, and there are some other small projects. Aggregating to around INR 1,200 crores is the Bhopal Metro and some other two, three projects of smaller size, aggregating INR 2,000 crores.
And sir, just on the guidance part, sir, what are guidance for FY 2026 in terms of revenue and probably CapEx, if you can throw some light there?
Sorry, come back.
Sir, if you can give us a guidance, just if you can give guidance for FY 2026 in terms of revenue growth and EBITDA margin and the CapEx components.
As we have previously also told, we expect a growth of 15% year-on-year, and we want to be a billion-dollar revenue company by FY 2027 with an order book of around INR 25,000 crore. With similar margins of 14%-15% what we are getting last four, five years, we expect going forward in coming six to eight quarters, our margins will improve from 14%-15%, to 15%-16%. One percentage more.
This will be largely because of operating leverage or any other reason that we are bidding for projects with better margins?
Yeah, it is mainly because of operational efficiency and operational leverage.
Okay, sir. That is it from my side. Thank you and all the best, sir.
Thank you. The next question is from the line of Uttam Kumar Srimal from Axis Securities. Please go ahead.
Hello.
Yeah. Please go ahead, sir.
Yeah. Thanks for the opportunity, and congratulations on good set of numbers. Sir, what is our current bidding pipeline? Last time when Paul was here, it was around INR 20,000 crore. So that has increased or it remains the same?
We are expecting additional orders to be booked in the range of, means additional orders to be bidded in the coming nine months to the range of around INR 20,000 crore- INR 30,000 crore. We look forward for the right opportunity of work because, you would appreciate that, J. Kumar Infraprojects, we have already bagged orders to the tune of, we are already executing projects worth around INR 6,500 crore. So, we are looking at INR 2,000 crore- INR 5,000 crore projects which we are getting at good margins at the 14%-15% EBITDA is what we look at. So if we are getting, we will bid at our prices and to bag such an order should not be a big issue. So around INR 20,000 crore -INR 30,000 crore worth of projects in various segments is what we will be bidding in the coming nine months' time.
Okay. Sir, can you quantify how much in metro, how much in elevated corridor and road tunnels in this INR 20,000 crore, INR 30,000 crore bidding pipeline?
It is a mixed order book that I would say because there are metro projects as well, there are road tunnels, there are elevated corridors that is coming up in Maharashtra and across the country. There are various projects. Also, irrigation projects are something which we are looking at. It is a blended type of thing. What type of order we can bag at our margin is, going forward, we will be able to, looking at the opportunities, we can tell you that. But into metro as well as into flyovers and road tunnels, there are a lot of opportunities in these seven states itself where we are operating in a good way.
Okay. Sir, that is all from my side and all the best.
Thank you.
Thank you. The next question is from the line of Shravan Shah from Dolat Capital. Please go ahead.
Yeah, thank you, sir. Sir, couple of balancing numbers. Sir, what was the retention money?
Retention money was deducted from the client?
Yeah. So which is on the asset side, which was INR 300 crore as of March.
INR 304 crore.
Sorry, INR 304 crore?
Yes.
Inventory, debtors, and payable as on June?
Inventory was INR 1,000 crore, debtors were INR 1,309 crore, and payable at INR 538 crore.
Payable INR 538 crore?
Yes.
Inventory you said INR 1,000 crores. Which was INR 481 crore has gone up by INR 500 crore odd?
No. The inventory includes the contract WIP also.
Okay. Including the unbilled revenue, you are saying?
Yes. Pure inventory from INR 481, it has gone down to INR 453 crores.
INR 453 crores. Okay. Got it. Secondly, sir, in terms of the debt level, as you mentioned that we are not taking a mob advance for Chennai project. Going forward, how we look at in terms of the debt level? This strategy will be, we will continue with our own working capital against the mob advance. How we look at the debt levels by end of FY 2025, and maybe going forward, for FY 2026 also, how we look at? Will this keep on inching up?
In FY 2025, we are looking at a debt level of INR 700 crores-I NR 750 crores. Going forward in FY 2026, it will totally depend upon the cash flow of the project. We feel that we should be able to maintain the debt level to INR 700 crores -INR 750 crores for FY 2026 as well.
Okay. Second, sir, in terms of the CapEx, when we are saying INR 450 crores - INR 500 crores odd in next two years. First in this Q1, how much we have done the CapEx? Last time, I think, we have mentioned because this GMLR tunnel CapEx, the TBM, combined Chennai and GMLR, sorry, we were looking at INR 400 crore kind of incremental CapEx and normal INR 100 crore kind of a maintenance. If I add together, it would be a INR 600 crore- plus, but now we are saying only INR 450 crores -INR 500 crores odd for two years.
What we are talking of as on today when we speak on 30th of June, the CapEx incurred for Q1 is around INR 28 crores. The TBM that would be coming would be in Q4. It will be booked in Q4 or Q1 FY 2025, 2026. That's why we are looking at INR 450 crores- INR 500 crores for two years put together. One TBM is only going to be purchased by J. Kumar, and one is being purchased by the JV partner. It is one EBM cost and the other ancillary costs of CapEx, including the maintenance CapEx, is what we are expecting INR 400 crores - INR 500 crores in coming next two years.
Okay. Got it. And sir, in terms of the order inflow, already we have INR 6,500 crore plus L1. As you mentioned, it would be converted into the orders by end of this month. Then we are seeing only just additional INR 1,500 crore. So total for this year, we are looking at only INR 8,000. Why such a low number? Why not we are looking at even close to INR 10,000 crore odd?
Shravan , we have already mentioned that we haven't locked our vision that we will not be going in for new orders. But we have mentioned that around when we had mentioned it before it was INR 6,000-INR 8,000 crore. Now we are pretty sure that it will be crossing INR 8,000 crore, and it all depends upon the opportunities where we get the work at the prices where we intend to take it. There are a lot of opportunities in the market, and we are already trading at 4x. So we want to go for opportunities which give us good margins. It is not that we will not go to INR 10,000. If we get work at our price of our complex nature of the specialized work that we look for, we will cross INR 10,000 crore also maybe.
So we always believe in surpassing the numbers that we give. It is a— G ood, I think, a blessing that we could back. We are already L1 in projects worth INR 6,500 crore. So it does not stop us from taking opportunities or bagging further orders. If you say INR 8,000 crore, I would say is the minimum number that we will bag in this fiscal year.
Okay, got it. Lastly, sir, fund base and non-fund base limits. What is the now limit? Because previously we were looking at maybe to increase that and how much have been utilized.
We have utilized on an average, you can say fund and non-fund base put together, around 75% of the limits has been utilized. We have also applied for new limits depending upon the size of projects that we have bagged, and it is in advanced stage of closure. We do not see any issues as such into the requirement of fund or non-fund based limits.
What was the number last time we have talked about, so close to INR 1,000 crore of fund base and INR 3,900 crore non-fund. That limit right now remains the same? In terms of the further, how much more extra are we looking at to increase the limit?
Currently, as I have said that we have utilized 75% of the overall limits and the fund-based limit utilization is close to around 60%, and non-fund based used to be minimum around 75%-80%. We have applied for new project limits for which are project specific, and they are into advanced stage as I have mentioned. As per the requirement of the project CC limits, fund-based and non-fund-based limits are applied and already it is into consideration. We have also made application in the lead consortium also.
Okay. Last on the working capital. It has slightly increased quarter-on-quarter, not a big increase. In terms of maintaining, we will going to maintain or can we expect some more reduction in terms of the working capital days?
We intend to maintain a net working capital cycle close to around 125 days. Currently in this quarter it is 126, but if you look at FY 2024, it was on an annual basis, it was 123. So 120-1 25 days is what we expect the working capital cycle to be.
Okay. Thank you, sir, and all the best.
Thank you very much.
Thank you. The next question is from the line of Parvez Qazi from Nuvama. Please go ahead.
Hi, good afternoon, and thanks for taking my question. My first question would be great if you could provide the update about some of our major projects like the Chennai NHAI projects and also the metro rail projects that we are doing in Mumbai and Pune.
Yeah. Hi, Parvez. Chennai, the projects are in full swing. We have already done more than 100 piles there. Whether it's the casting yard development or actual physical execution of the site, it's taken up in full swing. That project is on track. Metro projects, if you see even they are going very well. We are intending to start with Line 3 of Colaba to Sewri phase one that MMRC intends to start by September, where we have completed almost physically 95% of the works. By September, we should be through for that. All other lines also are going very well, whether it's the Mumbai Metro or the Pune, Delhi, Surat, all are in track.
Thanks. Apart from Bhopal Metro, are there other metro projects that we may look to target, let's say, going ahead over the next year or so?
Metro Line 9 is something that we are looking to open up for the—
New projects.
Oh, new projects. I am sorry. There are new projects that are coming up in Patna, in Bhubaneswar, in Indore, in Bhopal. Nagpur is coming up with new line. Pune is coming up with an additional line. Mumbai Metro has Metro Line 10, which is going to come up. I think metro opportunities all across, there is a good opportunity, and also underground metro works currently are also open for Indore and Bhopal, which are sizable projects of around INR 1,500 crore -INR 2,000 crore odd sort of projects. I think there are a lot of visibility and with the current TBMs that we have purchased, that we have only seven machines has been deployed on metro projects. We would also be more than happy if in the coming period we pick up some jobs where our machines can be utilized.
Sure, sir. Lastly, what is the total cash and cash equivalent level?
We just said it is INR 640 crores.
Sure. Thanks and all the best.
Thank you. We have our next question from the line of Prati, an individual investor. Please go ahead.
Good afternoon, sir. Just saw one of your announcements with regard to the board passing the resolution fundraise. Wanted to check with you in terms of any particular timelines which you are looking at, or is it just an enabling resolution? And where exactly you are looking to deployment of funds for that particular fundraise, if you can elaborate on that.
As it was told by you, this is an enabling resolution for raising fund in form of QIP.
Okay.
We are seeing lot of work inflow or order inflows coming in. We are preparing ourselves for the right moment, and we don't want to over-dependent on the banks as well. It is just an enabling resolution. We'll take the decision on the right time, whether to go for this or not.
Okay. As of now, means work has not been initiated on it or anything like that where we can consider a particular timeline for the dilution or anything like that?
No, we have not initiated as such.
Okay. That is about it, sir. This is predominantly growth capital which you are looking, not for retiring of debt or anything like that.
Mainly growth opportunities with CapEx and all.
Okay.
That is the main fundamental to this one.
Noted, sir. Thank you so much.
Thank you. The next question is from the line of Rajesh Sharma from Anand Rathi. Please go ahead.
Good afternoon. Am I audible?
Yeah, very much.
I had a question that there has been increase in debt levels this time. So what will be the sustainable debt position going forward?
If you look at the debt equity ratio, I would say it is at just 0.27x at gross level, which is I think a quite reasonable number, I would say. With points at net level almost, debt to 0.03x debt equity ratio. I think with the size of company growing and with the type of large ticket size projects that we are bagging, I think INR 700 crore-INR 750 crore should be a sustainable number and I think quite comfortable ratio as well, I would say.
Okay. What will be the margin guidance regarding next year?
The margin guidance, as we have mentioned, that we are only at 14%-15%. We are usually around 14.5% or so. 14%-15%, we intend to take it to 15%-16% in coming six to eight quarters.
Okay, sir. That's all from my side. Thank you.
Thank you very much, Rajesh.
Thank you. Before we move on to the next question, a reminder to all participants, you may press star and one to ask questions. The next question is from the line of Arpan Rathore from Insight Advisory. Please go ahead.
Good afternoon, sir. Congratulations on good set of numbers. I had couple of questions, more on the competition side of it. Firstly, haven't seen too much of order booking in Metro segment. Is that segment slowing down? That was question number one. And question number two was, we see lot of new entrants bidding for projects and all. How much is the competitive intensity? Yeah.
Arpan, as you are aware, J. Kumar works in a very niche area. Okay? Of course, there are new entrants coming up for various Metro, other projects also. But I think the cake is so huge now. These people coming in won't affect J. Kumar at all. First, our order intake capability, order requirement is much, much less as the overall take. Competition of course is there in some sectors, but we are bidding at our numbers. We are getting through our operational efficiency, our design efficiency, our capability of working since so many years. That's why we are able to maintain this healthy margins year-on-year.
Sure. Yeah, that was it from my side. I will join the queue.
Thank you, Arpan.
Thank you. We have a follow-up question from the line of Shravan Shah from Dolat Capital. Please go ahead.
Yes, sir. Just to clarify, in terms of the cash and cash equivalent, when we mentioned INR 640 crore odd and sir has also mentioned that INR 10 crore increase. So in March, in terms of the balance sheet, what we default, it was a INR 504 crore odd. So a comparable number as in June is the INR 640 crore.
Yeah.
Okay. The increase is close to INR 135 crore and not the INR 10 crore.
No, if you see, as of March 2024 balance sheet is INR 131 crore and balance in escrow account is INR 16 crore, which totals to INR 630 crore.
Okay. Got it. Thank you.
Thank you. We have our next question from the line of Vishal Periwal from Antique Stock B roking. Please go ahead.
Yeah, sir. Thanks for the opportunity. One broad question. In terms of the segment that we are present, I know inflows and pipelines remain pretty healthy and strong. Is there any other segment that we are trying to build up a team or where we are seeing an opportunity for us going ahead, maybe one year or two years?
Vishal, I would say that already, at J. Kumar Infraprojects, we are into the transportation sector, which is the maximum focused area by the government in terms of CapEx expenditure and also in terms of the expertise and requirement going forward. I would say that transportation sector itself, where we talk of asphalt roads, concrete roads, elevated flyovers, elevated metros, underground metros, stations, road tunnels, everything is covered. I would say that already this area, which is the most required and most spent area by the government, we are already into it, and we have already started works of riverfront development job, road tunnels, by TBM, by driven blast, submerged tunnels. We have taken up riverfront development jobs. Already I think we are into various other verticals that we are focusing. Yes, going forward, we shall also be trying to focus into some irrigation projects.
Again, building works are regularly going on in our organization. I think there are lot varied types of work that we have already covered and wherein there are a lot of good opportunities to bag orders. Like even last year, we bagged orders close to INR 12,000 crore, and this year only we have bagged INR 6,500 with L1 itself.
Okay. Got it, sir. I think, thanks for this explanation. One, I think, though the fundraise is just enabling for us, but as a company policy, is there any threshold that we look that even for future projections for internally, like, this is what the debt equity is something that is comfortable and then beyond that will come to the market. Anything, metrics that we work on this or how exactly it works?
As told previously also, this is basically for the new opportunities for the growth of the organization. It's not a threshold issue, it's basically for the upcoming opportunities what we foresee in the market.
Right. I can understand balance sheet point of view, debt equity is pretty comfortable for us. I think it is not required, but just thought to check with you. That's all from my side.
Vishal, everything cannot be planned and executed as we plan. Financial markets are such where things have to be done at the right time. I think when you need the money, you don't get it. When you don't want, you get it. It is a thing that you have to see a balancing of the requirements, and 0.27x, I think we want to be staying surely below 0.5x. We don't want to go above that. If 0.5x debt equity is something as a threshold internally, we can say that we will, though we don't have a very clear-cut thing that we have as such decided, but we want to be below 0.5x going forward also is what we would intend.
Sure, sir. Sure. That is a helpful explanation. Thank you, sir.
Thank you.
Thank you. Before we move on to the next question, a reminder to all participants, you may press star and one to ask questions. The next question is from the line of Vipul Kumar from Sumangal Investments. Please go ahead.
Hi, sir. Thanks for the opportunity. My question is, we are bidding and winning some projects on a JV basis. Is it mainly due to technical capabilities or is it mainly due to sharing of financial risks? What is the thinking on this part, sir?
It depends on project to project, Mr. Vipul. If you see, like GMLR, it was a strategic call because the size of the project was also pretty big and it was highly capital-oriented as well. And various locations we have to do because of the conditions which are laid down, the prequalification conditions, because it is not only capability to execute, but also in terms of your numbers, in terms of your experience certificate of similar large value projects. It is depending, and again, there are very typical qualifications which are laid down. Like you should have executed cable anchorage, a particular span length that you should have executed. There are various reasons for which on a project base, we have to take such calls.
Okay, sir. Thank you and all the best.
Thank you very much, Vipul.
Thank you. A reminder to all participants, you may press star and one to ask questions. We have our next question from the line of Vaibhav Shah from JM Financial. Please go ahead.
Thanks for the follow-up. Sir, for the bigger projects in our book, like Chennai, GMLR and MSRDC, what kind of revenue are you billing in for FY 2025 and 2026 from these three projects?
We have not specifically worked out these numbers for the year. But of course, these projects, like MSRDC project is yet to kick off. As we have told you, it will be started after monsoon. Of course, the revenue will come in next year only. Revenue we collect in this year. Chennai, of course, the revenue will start generating, the work has started in full swing. GMLR also, the revenue will come in this year.
MSRDC, we don't foresee any revenue booking for FY 2025.
Not much, because initially the Q4, like by November and December, we will be starting the work, so initial work of establishment takes a couple of months. Then, we may get some revenue in Q4, but not this year. For MSRDC, there is also, once the land acquisition is completed, then only the NTP will be given. It is on the contractor to take the NTP or not. So we will be taking it once a substantial portion of land acquisition is completed. So that's why it's too early to comment on revenue coming in from MSRDC job at this stage.
Okay. And sir secondly, what is the status of CIDCO Coastal Road Package 1 and Package 2?
CIDCO Coastal Road is started in full swing. We have already got revenue of around INR 40 crores from CIDCO Package 1, and Package 2 revenue will be coming in this coming quarter. The projects are very much in line, it is going in full swing, both the projects.
When do we intend to complete them? Maybe by 2026?
The timelines are 30 months, so we will complete well within the time.
Okay. Thank you, sir. Those were my questions.
Thank you. Ladies and gentlemen, that will be the last question for today, and I would now like to hand the conference over 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 clarifications or feedback. Thank you, all.
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.