Ladies and gentlemen, good day and welcome to J. Kumar Infraprojects Limited Q2 and H1 FY 2024 earnings conference call. Just a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. If you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone 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 certain risks and uncertainties, and the actual results may materially differ from those in such forward-looking statements.
I now hand the conference over to Mr. Kamal Gupta, Managing Director of J. Kumar Infraprojects Limited. Thank you. 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 website. The company is at an inflection point in terms of corporate personality, financial 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 crore in the current fiscal, with some more months to go, and are currently L1 in projects worth INR 1,640 crore. We continue to grow in operational and financial capacities.
Our powers in bidding and eligibility have paved the way for securing these transformative projects, positioning us as reliable partners in the industry. With the ability to execute larger projects, we have embarked on ventures that reshape the landscape and elevate urban experiences. Our in-house equipment bank stands testament to our self-reliance, ensuring the swift progression of projects and efficient resource allocation. Early completion and attribute we hold dear speaks volumes of our commitment to delivering results, exceeding expectations, and honoring our commitments. Our proficiency in executing complex and challenging projects demonstrates our specialized capabilities and marks 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 crore, wherein J. Kumar's share is INR 3,088 crore excluding GST.
The project is design, construction, and operation of twin tunnels from Film City Goregaon to Mulund, including box tunnel at Film City. We have also been awarded Chennai Elevated Corridor NHAI for a total project cost of INR 3,570 crore 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 1,106 crore as compared to INR 1,013 crore in Q2 of FY 2023. The operating margin for Q2 has gone up by 10% to INR 160 crore 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 crore as compared to INR 68 crore in Q2 FY 2023, and the PAT margin stands at 6.7%. Coming to the highlights of H1 FY 2024, the revenue from operations for H1 FY 2024 has gone up by 11% to INR 2,236 crore, and operating margin has gone up by 12% to INR 321 crore. PAT for H1 FY 2024 grew by 13% to INR 146 crore as compared to INR 129 crore in the preceding year. Total order book as of September 2023 stood at INR 16,447 crore. The order book includes metro projects, elevated underground contributing 32%, elevated corridors, flyovers contributing around 31%, road tunnel projects contributing around 27%, and other buildings and all contributes around 10%.
Apart from this INR 16,447 crore, we got two orders amounting to INR 530 crore in Q3, and we also L1 in INR 1,640 crore as of now. We shall 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 touchtone 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. Question is from the line of Gunit 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 crore with an EBITDA of around 13%- 15%. The new order book that we are discussing about will start generating revenue from FY 2025, and 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 have been expecting. 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?
For FY 2025, we had given an upward rise of around 15% in terms of the top line. Now we expect it should be around in the range of 16%-1 7%.
All right. Basically, around 15% increment over INR 4,800 crore.
INR 4,800 crore.
All right. 15% improvement means 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. But on an average, as we are an urban player, you 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 will be closed towards the end of FY 2024? What do you anticipate?
We had given an order book guidance of around INR 12,000 crore-INR 13,000 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 are anticipating.
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.
At FY 2024, yeah.
That is great. That is all from my side. Wish you all the best.
Thanks.
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 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 W est to JVLR, costing around INR 346 crore. The second project is at Delhi of NBCC, that is like of Delhi Development Authority depot costing INR 270 crore, and another one again is of Hari Nagar Colony of DTC costing INR 521 crore. There's some disturbance. 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 four projects.
Sir, the third one, Hari Nagar building, you said INR 521 crore?
Yeah.
Okay. Got it. Now, 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, the INR 1,640 crore project has to be converted to orders. This will be done in coming time. We will be bidding for around INR 25,000-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, 16,000 crore of order inflow by the end of FY 2024.
16,000 crore of order inflow?
Total. Order book. I am so sorry.
Again, just to clarify. In terms of time, I am particularly asking on the inflow front. How much more, as you mentioned, INR 25,000-INR 30,000 crore are we planning to bid in six to nine months? Roughly, can we assume INR 4,000-INR 5,000 crore fees, 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 stage. Again, the tender needs to be opened. With L1 again, the process. It's 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, that's 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.
This is with the current order book that we have tagged and we are L1 into, where we anticipate to stand at a order book of INR 16,000 crore by end of FY 2024. I hope this is clear now.
Got it, sir. Broadly, this INR 25,000-INR 30,000 crore that we are planning to bid. Broadly, if you can break it up into segments of flyover, building, metro, road, water, broader number would help.
It's 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.
And also roads and tunnels.
Okay. Got it. Second, sir, when you said that 15% revenue growth from this year and next year, we are just doing a 16%-17% kind of revenue growth for FY 2025. Even one can assume, because last time we have talked about 18%-20% kind of a growth for 2025 and 2026 also. How one can look at, is it the much lower number that conservatively we are looking at 16%-20%? One can practically, if everything goes well, we can see a closer to 20% kind of revenue growth for even for 2025/ 2026?
Shravan, we are already maintaining what we are saying, and we believe in surpassing what we give to guidance. This year , again, from INR 4,200 crore- INR 4,500 crore, we are in INR 4,200 crore-INR 4,800 crore we will be doing by FY 2024. As Nalin told, instead of 15%, we are targeting 16%-17% of growth in FY 2025. Let's see as the thing goes. The couple of quarters, we will see what is the ramp-up in execution and hope for the best.
On the margin front then, we are seeing what they said, definitely 14%- 15%. One is already 14.4%. Last time also we said we will be likely to see a 150 basis points improvement in EBITDA margin in over two years. 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. 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 actually has reduced INR 200- odd crore, and that's why the working capital increase 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 debt front we were looking at INR 550 crore-INR 600 crore. Currently it's INR 653 crore debt?
Yes, Madan, can you reply this?
Yeah, Shravan, on working capital, quarter-on-quarter, there will be a little bit up and down or so. Shravan , 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 crore. We have been able to reduce INR 125 crore through 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 crore 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 papers, some book is there. Working capital, our larger target is to get down to 120 days.
Okay. On the debt front, sir?
Sorry?
On the debt, INR 643 crore gross debt that we have currently. At the same time, GMLR, the tunnel CapEx, INR 300 crore- INR 350 crore we will have to spend. How one can look at the debt level by end of this year and FY 2025 and 2026, broadly?
GMLR will not come in this year, first of all. The machine will take a long time manufactured and delivered and all. It will come somewhere around, not even in FY 2025, maybe end of FY 2025 or so. But seeing our debt-equity ratio currently even at 0.27, we were at 0.22 at June quarter, and even after having this diesel exposure and which Mr. Kamal 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. We are comfortable on that.
We are not expecting a reduction at least by March. This number is fine.
Yeah. By March 2024, we are looking for a debt of around INR 650 crore only.
Okay, got it. Just three numbers on mobilization, advance, retention money and unbilled revenue as on September.
Mobilization advance stands at INR 435 crore as of Q2, and we are happy to inform you that it reduced from INR 532 crore to INR 435 crore. We have been able to set some of our liability against the revenue bills and deposit receivable is at INR 234 crore. Deposit payable is at INR 234 crore. Anything else you have?
Sorry, sir, retention money you said INR 254 crore?
Retention money, INR 274 crore.
INR 274 crore.
INR 274 crore 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.
Hi, sir. Thank you for taking my question and congratulations on strong orders you had during the year. Just want to understand, given the has been really strong for some in terms of new order additions, and we are talking when I think our around INR 16,000- odd crore by this year. Would that need you to go and seek a more funded or non-fund based limits because you would have to extend guarantees this year? I think, you would have to invest it for GMLR as well. Would you need to go and seek more limits from your consortium lenders?
Well, we'll be surely needing more limits to be sanctioned for bank guarantees, LCs, working capital, et c., 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 will be surely needing that and as and when the project is proceeding, we'll be taking 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 needing, the machine would be coming somewhere by after 15 months- 16 months from now.
The CapEx and term loans that is required for GMLR 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 that you're saying tunneling machines would be required 15 months- 16 months hence. Fair to assume a large part of revenue recognition would start once maybe we have tunnels in place and you would have to make sure that you do your groundwork and then have shafts in place, and then once TBMs are lower, which is when you get to have a significant ramp up in the revenue contribution from this project.
Yeah. You rightly mentioned that, in this entire project of GMLR, which is around 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. This revenue recognition will only start about 70% of the component after like 20 months- 21 months from now.
Sure. Okay.
That is why we are not giving a guidance of 20%-25% growth. That is the reason, because even if this is increasing and these works will start contributing after like 20 months- 21 months from now, in a sizable manner. Though we would be booking some revenues say at the end of the year or in FY 2025, I would say.
Sure. And how about Chennai, the four NHAI EPC package? When do we expect to start booking numbers from those four packages? Because when I look at the order book, it is flat on a sequential basis, which means we have still not started booking numbers from that. So when do we expect, you know, these four projects to start contributing?
Yeah. So we are expecting the appointed date by mid of November coming. Somewhere in the middle it starts and like you know, Q4 will see some revenue because it is in the mobilization stage as of now. And we will be incurring some CapEx towards that as well. So major revenue will start by FY 2024. Work will be started from next month only, in terms of mobilizing, not the actual work. Because survey and soil investigation work is already on. Q4 will see a little contribution from Chennai project.
Sir, would you be able to share the land status for these four packages, and 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? Sir, when we get to the AD once we have 80% ROW in terms of right of way as of today?
You are talking about the Chennai project, there are four packages.
Yes.
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 date for that as well.
Sir, these 90 and 80, these are 3D or 3G or 3H?
What do you mean by that? Sorry.
3G is essentially wherein a notification is given, the land is yet to be acquired. 3D is when MOI 3H is when payment is made.
Okay. I won't be able to give you the exact update on that, now. The land for this, out of three or two packages are having 100% of the land.
Okay.
One is having 95, 90 something. Another one is 86. Land-wise, there is no issue in Chennai.
Yeah.
It should not be a problem.
How much will be our net debt number? I think I'm not sure I'm seeing that number again. 97. How about unbilled? Also if you could help me, how much would be the unbilled as of Q2 end?
Q2 is INR 555 crore.
Any change in CapEx guidance? I think we were looking, so we spent around INR 33 crore in the first quarter. How much have we spent 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. Some CapEx will come for Chennai project.
INR 150 would include Chennai, so we will not be worried about it.
It can be like, INR 150 to another INR 30-INR 40 crore plus for this year, a lot 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. Congratulations on strong order inflows. A few of my questions have been answered. On the basis of the order that they have received, what would be the current fund-based, 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, which is around 45% fund-based that 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. Nikhil, it would be around 71% and total utilization is 67% on an average basis.
Okay. As on date, sir, the order book that you have mentioned, what would be the percentage of the order book which is under execution?
Which is under?
Execution. Like all the projects are, whether all the projects are mobilized, whether we are seeing some execution on the grounds or some quantities are pending for those projects.
Yeah. So it would be around INR 9,000 crore is under execution, which excludes the INR 7,000- odd crore order that we have extracted this fiscal year.
Plus on the other projects also, the mobilization is on. So this INR 3,600 crore of mobilization has already started taking place. Yeah.
Okay. Thank you, sir. These were my questions and best of luck for future. Definitely, if I have more questions, I will raise them again.
Sure. Thank you, Nikhil.
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 you have maybe about INR 150 crore- INR 180 crore of CapEx this year. What kind of CapEx can we foresee for FY 2025 considering the TBMs, et c., which will probably come then?
Yeah. For 2025, as we told, the TBM partly should be delivered. So in 2025 we'll see a CapEx amount-wise of around INR 350 crore- INR 400 crore.
Sure. 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 c. While we know the order book figure, but in general, how is the execution progressing there ?
Metro Line 3 is 90% completed, and the department is planning to open the first phase by Jan-Feb coming year. Metro Line 9 is almost 50% completed. Metro Line 2B is 40% completed. Metro Line 6 from Andheri West to Powai is 50% completed. Navi Mumbai Metro is 100% completed. It should be inaugurated very soon by the honorable PM. Pune Metro is almost 70% completed, and Delhi Metro also work has been continuing, and we have done 60% of the project. Surat Metro, 41% is completed. Santacruz-Chembur Link Road is 19%+ completed. Sewri-Worli, which is a connector from Coastal Road to MT HL, is 60% completed. Dwarka Package One and Two of Delhi is around 77% completed. These are some of the major projects what I have highlighted.
Sure, sir. Thanks and all the best for future.
Thank you, Parvez.
Thank you so much. The next question is on the line of Shravan Shah from Dolat Capital. Please go ahead.
Yeah, thank you. Sir, these INR 1,640 crore L1 projects, so broadly, when can we expect the LOI?
So LOI should come in another. We expect the LOI to be there in next month only, by November.
Okay. By November, it is due. Okay. Second, sir, on this number, just to again verifying the number, unbilled revenue, I think when I asked, you said 454, and then you said 555. So three numbers, can you again verify mobilization advance, retention money, and unbilled revenue?
Shravan, first of all, you had not asked unbilled revenue. So unbilled revenue is INR 555 crore. Okay?
Okay. Mobilization advance is?
Retention money retrieval is INR 274 crore.
And mobs?
Mobilization advance is INR 445 crore.
INR 445. Okay.
Yeah.
Okay. Got it. Yeah. Mostly done. Yeah. 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 on 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, sir, PS L 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 crore for this project. This is a small gestation period wherein we see upside of around 40%-50% in this. 12 months- 18 months, the project will be done. We have available facility of INR 90 crore of funding separately for this. This requirement will be done through the sale proceeds of assets. This is without impacting the liquidity of the company. This is just one of the projects for us. It will add 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 build in the near future?
First of all, Mr. Abhijit, the TBM is not getting free now, rather we are utilizing it in existing projects. Like whether it's Surat, Delhi, or Line 9. All the three locations, we are utilizing the new TBM. This will take like another two years, 1.5 years, for TBMs to get through. Of course, we are also bidding for new projects, underground metros also, wherein this TBM can further be reutilized. You see, some of the TBMs are used on third or fourth project, exactly. We have really turned the asset. Yeah.
Yeah. If you can tell me what are the prospective underground metro projects that you might build 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. In MMR, there are three projects coming from Thane, Bhiwandi. There is one underground there. One again is from GPO to Line 11 underground, and one more will be from Domestic to International, New Mumbai. These are projects in MMR. Plus, we have already bidded for Bhopal project, which is underground. There are some more coming up in other states. We will be bidding for this underground as well, where the TBMs will be utilized.
Okay. And final question, sir, is regarding this Versova-Andheri 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 maximum, we should be seeing the common set of deviations. The pre-bid price been uploaded by the corporation. In this month, for sure, I am very hopeful that we will be bidding for this Versova-Dahisar project.
The bidding should happen by November, right?
End of November.
November. You would be bidding for, I think there are INR 16,000 crore-INR 20,000 crore worth of projects. So how many
Sorry?
The total project size, I think six packages are there?
Yeah.
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. Thanks, sir. Thank you. Thank you.
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 order size of INR 6,301 include EPC and maintenance both, or it is only EPC?
Well, 6,301 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. There are some other items also. But as of now, you can just take this as DB cost. O&M is separate for it.
It is on top of it?
Yes.
Fine. Second question to you. Given the guidance for the order book of around INR 16,000-odd crore, if we do the revised working like reverse, the inflow comes out to roughly INR 9,000-odd crore in this year.
Sorry. Can you be a little louder, Mr. Vishal? We missed your question.
Is this better?
Yes.
Yeah. What I was saying is, we have given the order book guidance of around INR 16,000-odd crore, which we revised upward. If you do a reverse working in this order book, inflow comes to around INR 9,000-odd crore in FY 2024. Based on year-to-date inflow in L1, we are almost touching like INR 9,000-odd crore in this year. I think we are bidding for several projects, and pipeline is also healthy. Isn't our guidance a 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. If this process, maybe because of election, some of the new coming tenders may go a month here and there. It is better when inflow is in. So INR 16,000 itself is a good number which is about rise of 30% from INR 12,000 what we have initially guided.
We will 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. 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 then one to ask a question. The next question is from the line of Arpan Rathod from ThinkInvest . Please go ahead.
Good afternoon, sir. My question is regarding the bank limits. What would be the average cost of fund base debt and non-fund based debt?
It is almost 10% for the fund base,
9%- 10%.
9%- 10% for the fund base, and for non-fund base, it is around 1% for BG com mission.
Does it hold good for the new functions which you mentioned some time back?
Sorry.
For the new functions. Whether it be better or-
Yeah, absolutely.
That would also be in the same range, right?
Correct. Yeah.
Okay.
Our 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 create impacts on those numbers.
Okay. My second question is particularly on ROCE considering that a huge amount of CapEx is involved that 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 some 15.5% or so ROCE because obviously once your debt increases and all. But overall, considering our EBIT numbers and all going forward, FY 2027 when we reach our INR 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 route project. Is this project or it still will keep continuing?
You are talking of the one which is under execution.
Yes, the coastal road project what you are saying is the MoEF clearance from Delhi has been received last week only. Luckily, all the clearances are there. I think another two weeks, they just need to get confirmation from the port, and the project will be started. I think another one month by December, the project will start.
Okay. That's great. All the best for the future. Thanks.
Thank you.
Thank you. The next question is from the line of Nikhil Kanodia from HDFC Securities. Please go ahead.
Sir, I had one clarification. On the order 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 info that you have given in your presentation of INR 7,200 crore, that is FY 2024, right? So that would include the INR 530 crore that we have won in Q3 as well.
Yeah, exactly. You are right.
And sir, what would be J. Kumar's share in that?
What is our share?
Yeah.
Our share of amount only FY 2024 . The INR 7,200 is all our share, J. Kumar share.
Okay, that is your share.
Yeah.
Okay. Thank you.
Right. Thank you.
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, it has an O&M component also, which to be executed over 60 months and raised in 30 months. Just broadly, if you can help us, what would be the O&M value?
I think O&M value is around INR 16 crore. I am not very sure, but it is a very minor.
Okay. That is the only It is very small, not the larger 20%-3 0% of the value. That is 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. If I look at from now onwards to FY 2025, there also one can look at INR 8,000 crore-INR 9,000 crore kind of order inflow. That is the way one can look at.
Let us 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. 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 query. 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, I conclude this conference. Thank you for joining us, and you may now disconnect your lines.