A s compared to INR 2,092 crores in first quarter of financial year 2024, with a growth of 4%. Consolidated EBITDA for the first quarter of financial year 2025 is INR 969 crores, as compared to INR 436 crores in the first quarter of financial year 2024, with a growth of 122%. The EBITDA margin for the first quarter of financial year 2025 is 44.7%. Consolidated PAT for first quarter of financial year 2025 is INR 575 crores, as compared to INR 181 crore in first quarter of financial year 2024, with a growth of 218%. The PAT margin for the first quarter of financial year 2025 is 26.5%.
On the standalone balance sheet side, as on 30th June 2024, our net working capital cycle is 121 days. Our net worth on a standalone basis is INR 5,203 crore as on 30th June 2024. Whereas, total standalone debt is INR 389 crore. The total cash and bank balance as on thirtieth June 2024 is INR 486 crore. We have net surplus of INR 97 crore. This translates to net debt to equity of 0.07 times. On consolidated basis, our net worth is INR 5,761 crore, whereas total debt is INR 8,258 crore as on 30th June 2024. The total cash and bank balance, including current investment, is INR 1,501 crore. This translates to net debt to equity of 1.43 x. With this, we now open the floor for question answer. Thank you.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to please 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 Shravan Shah from Dolat Capital. Please go ahead.
Yeah. Thank you, sir. Sir, just a clarification, this entire arbitration and the bonus, the entire amount, directly goes to the EBITDA. There is no expense related to that before EBITDA?
Yeah, there is no expense on the arbitration and bonus, sir.
Okay. Now, sir, given that, if I remove this, in terms of the core revenue, which is kind of on the low, right, 29% kind of decline, 30%, and we were looking at 10% growth on that, this revenue in FY 2025. So the ask rate is significantly higher. So how do you now see the revenue and also the EBITDA margin? Are we maintaining the same 12%, 12.5% for FY 2025?
Yeah, this first quarter growth affected due to some unprecedented activities, unprecedented conditions. Some of them are expected like general election, but like this summer has been very severe, and the extreme heat also affected our progress, and also the early onset of monsoon. And more importantly, the projects which we secured during FY 2023, FY 2023 March, could not be commenced due to delay in declaration of Appointed Date on account of delay in land acquisition. So this is a multiplicity of factors: general elections, early onset of monsoon, and the excessive heat during the summer, then the delay in declaration of Appointed Dates.
Also particularly in case of water sector, there has been delay in the release of payments due to lack of budgetary allocations during the period of Vote on Account budget time. So there's all these things had a complex and a complexity, so it reduced our first quarter revenue. So still, we'll be trying to expedite it. But the second quarter also, because now again, the fact when monsoon has been very active and widespread, so we expect a similar kind of situation during the second quarter also. The situation is challenging. Given the conditions, and some of them unexpected things, so the guidance for the FY 2025 would not be what we expected earlier, would be maybe as a flat or maybe around 10% on a downgrade.
Sorry, sir, you said flat to -10%, you are saying?
Sir, -10%.
- 10%?
Yes. Guidance for FY 2025.
Okay. Okay. Okay. Got it. T he margins remains the same to 12%-12.5%?
Yes, yes. EBITDA margin will be around 12.5%.
Okay, now if given INR 10 crore, we are all INR 11 crore, we were looking at INR 15,000 crore of order inflow. So I hope numbers-
Your line is not very clear.
Is it better now?
Not really, sir.
Are you able to hear me?
This is much better, sir.
W e'll tell you, we already secured INR 5,000 crore worth of new orders during the current financial year, and we expect to secure another INR 8,000-INR 10,000 crore. So it will be around between INR 13,000-INR 15,000 crore new orders during the FY 2025.
Okay, got it. So now we look at, let's say this year, we, we are doing, - 10% on the top, FY 2026, how do we look at FY 2026?
FY 2026 guidance would be around 15%. See, we expect 15% because the projects which we are expecting quite a few projects appointed date during the current financial year, even during the second quarter. So the progress will be picked up. With the low base effect, we'll have around 15% + during the FY 2026.
Got it. And sir, now, couple of data points and the appointed date for all the Varanasi, Ranchi, Kolkata packages, and Bhopal Bypass, the Maharashtra EPC project. What are our status on appointed date and all the project-wise order book and the balance sheet numbers, if you can share?
See, first is the appointed date we'll share with you. Western Bhopal Bypass of MPRDC project, which is a HAM project, and Varanasi-Kolkata, Package Six, that is also HAM project. And there is one bridge project in Gwalior, which is MPPWD project. So appointed dates for all these three projects we expect in the first week of October, as the land is expected to be possessed before end of September. The required land is more than 80%. So these three projects we expect the appointed dates in the first week of October, and the revenue, maybe initial revenues, will be booked during the Q3 of the current financial year.
Okay, and Package 2 and 3, Varanasi, Kolkata?
Package 2 and 3, there are challenges in land acquisition and possession. So that may take some more time. So we'll update during the next our meeting and interaction. So as of now, the land acquisition has been slow. So I'm not able to tell now what will be the Appointed Date for these two packages.
Okay. Now the balance sheet numbers, inventory, trade payable, and then the debtors, also in terms of the breakup of debtors, HAM, water, and EPC debtors.
Trade payable is INR 700 crore, sir.
INR 700 crore. Inventory?
Inventory?
INR 750 crore.
And total debtors, please?
Total debtors is INR 2,212.
INR 2,212. And out of that, how much is HAM debtors and water debtors?
EPC contract, around INR 1,394, EPC.
Okay.
HAM, debtors is INR 818.
INR 818. And water would be how much, sir?
Sir, sorry to interrupt, but your line is not very clear. Your audio is not coming through clearly, sir. I request you to please establish a better connection and rejoin the queue, sir.
I can hear clearly. Sir, if you can hear me, what's the water debtors and mobilization and retention money?
Water debtors is INR 1,040 crore.
INR 1,040 crore. And mobilization and retention money?
Mobilization advance is INR 385 crore, and retention is INR 143 crore.
INR 143 crore. Got it. And if possible, project-wise order, if you can share. So Hardoi, Najibabad, package 1C is how much?
I request you to please rejoin the queue for these follow-up questions, sir. We request you also to please reestablish a better connection. Thank you. The next question is from the line of Jainam Jain from ICICI Securities. So before you ask your question, let me remind everyone to please press star and one if they wish to ask questions. Please go ahead, sir.
Yeah. Good afternoon, management. Congratulations on the great result. So I had a couple of questions. Firstly, starting with the EBITDA margins. So we have seen an amazing spike in the EBITDA margins to 34% in the standard and financial segment. So I would like to understand, like, what was the specific reason for such increase in EBITDA margins, and, what's the expected, and is this, increased, EBITDA margin expected to continue for the entire FY 2025?
Actually, the 34% is inclusive of INR 435 crore amount received on account of arbitration and bonus in this quarter. Otherwise, the EBITDA margin will be maintained around 12.5%.
Okay, sir. So what's the bid pipeline which the company has been expected in the, in this FY 2025?
The pipeline, as I mentioned, so we expect another INR 8,000 crore-INR 10,000 crore new orders during the FY 2025. Already we secured around INR 5,000 crore new orders. So total cumulative would be around INR 13,000-INR 15,000 crore new orders.
Sorry, I didn't get the actual amount. It's INR 8,000 to?
INR 8,000 crore-INR 10,000 crore.
Okay. Okay. Sir, I wanted to have an update on the asset monetization and divestment plan which the company has been planning.
With regard to the monetization, after execution of Security Purchase Agreement , there were the conditions precedent, mainly NOC from change in ownership from lenders and NHAI. The NOC from the majority of the lenders of first tranche of assets have already been received, and others are expected by end of second quarter, as regard the NOC from lender. As regard the NOC from NHAI, the financial consultants of NHAI reviewed the NOC application, and observations made by them have already been clarified, complied. The PD and RO have also recommended seven projects out of 10, and sent to HO for final approval. We are expecting that, in one or two months, it should be processed in the head office.
Okay, so all the asset monetization and divestment plan will be completed in coming one to two months. Is that correct? Is my understanding correct?
It should be by yes. In case we receive the NOC from NHAI.
Okay. Okay. Thank you.
Thank you. The next question is from the line of Parikshit Kandpal from HDFC Securities. Please go ahead.
Hello. So can you hear me?
Yes, yes, Parikshitji.
Sir, my first question is on the issue which we faced recently in June. So, what is the status now on the bidding? So, are we allowed to bid now? Is there any punitive action taken by in terms of restricting us for bidding for some time or debarring us for some time? So, any update on that issue?
No punitive action has been taken by NHAI. We don't foresee anything in near future. So we are able to bid, and we are hopeful that we'll continue to able to bid projects.
Okay. So but has any of our bids been opened till now? Have we submitted any bids? Are those bids being opened or any update, if you can give us?
Bids are being opened. Last week also, three of our bids got opened. And also some of the bids we submitted, around 18 bids are there that will be opened.
Okay. So the second question is on, I think Maheshwari-ji earlier highlighted that seven out of the seven projects have been, I think, advised for NOC by NHAI consultants. So does it in any way impact our Jhansi projects where this issue has happened? So do you think, those projects may right now be on hold in terms of monetization, or do you think that you can still get NOC and projects will proceed normally towards the execution of monetization?
No, we don't expect anything to be issue.
Okay.
Also, see, for the other litigations also we want to share, the matter being sub judice, we don't want to share further details in the matter. The whatever the update status is there in the matter, we already intimated to the exchanges. Our intimations dated 9th of August and 19th of August, 9th of June, 19th of June, and 9th of August. These intimations are available in the public domain, so don't want to share further details in the matter as of now.
Okay. Just the last questions around this diversification. Now, I mean, we are facing growth challenges because last year has not been a good year for ordering for the sector as a whole, and also for the company. So this year we have a big, big, order intake guidance of INR 13,000-INR 14,000, and we have also achieved something. So first, whether on MSRDC project, any update you have heard? Because there were media news of the Pune award being reevaluated for award. So any update? I mean, when do you expect the appointed date to come in? And also on diversification, if you can help understand beyond water, on water, we are not seeing new orders coming in. So how do you think that this pipeline will grow from non-road segments? So which segments are you looking to diversify in?
First thing is, in case of MSRDC projects that we recently secured, we expect the Letters of Award will be issued before end of this month.
Okay.
Before end of month. The second thing with regard to diversification, another sector, what core sector we are focusing upon is the railways. Because again, just a few days before, Union Cabinet has approved INR 25,000 crore of new railway projects. Already we are there. We are working on one railway project, HORC, Haryana Orbital Rail Corporation's project in Gurugram. We are looking that, that is one of the sectors where, we'll be focusing upon, to diversify and to foray into new areas.
Okay, sir. Sure. Thank you, and wish you the best.
Thank you.
Thank you. Participants who wish to ask questions may please press star and one. The next question comes from the line of Vaibhav Shah from JM Financial. Please go ahead.
S o what kind of revenue are we targeting from the JJM project for FY 2025, given the weaker execution in first quarter?
See, as I mentioned, the progress was not substantially affected during the Q1, and the trend would continue to be during Q2 also, because many of our scheme locations are inundated due to heavy rainfall. Nevertheless, we are expecting around INR 1,500 crore during the FY 2025 with the revenue from the water sector.
And payments have improved in the second quarter for the water segment?
Yes, yes. See, now the full year budget is approved. So the funds, we expect the funds coming from the Government of India , 50% of the project cost, and the remaining 50% matching grant also is expected timely from the state government. So we expect that whatever our outstanding payments are there, it would be cleared before end of the second quarter, and thereafter, the funds flow and the payments would be normal.
Okay. And so remainder would be done in FY 2026, will be completed, water?
Yes. FY 2026, they will complete the water sector projects what we take over.
Okay. Sir, in your remarks, you mentioned that the execution should be weak in second quarter as well. So that is the case for the entire portfolio or only for water? So the revenue will be somewhere around INR 3,100 crore only on a total basis.
See, what happens, when compared to highway, the water, the in case of monsoon continues to be active and widespread, the water gets more affected, water projects, because of these projects are in isolated locations, spread and also then pipelining and other things gets affected when compared to highway sector. So water would be more affected, but, highway also the effect will be, you know, certain effect will be there on the highway sector also in terms of progress.
Do we expect a quarter-on-quarter increase in terms of revenue for second quarter? Overall revenue.
Yes. Yes, yes.
Okay, sir, lastly, what was the CapEx in first quarter, and for the year, what are you guiding?
CapEx, last year it was INR 46 crore, but this year we are expecting around INR 80 crore-INR 100 crore.
What was done in first quarter?
Only INR 3 crore.
Okay. Thank you, sir. Those are my questions.
Thank you. We have the next question from the line of Anupam Gupta from IIFL Securities. Please go ahead.
One question. So you said a 15% growth in FY 2026 after a 10% decline in FY 2025. Although you have a reasonably large order book at this point of time, and you're expecting another INR 13,000 crore, another INR 8,000 crore of order inflows in this year. So ideally, FY 2026 should be higher unless there is something, some slowdown, which you're expecting. So any clarity on that?
See, this 15% what we said is the minimum, because the projects what we start during the FY 2025, initial stages will be low value, works will be there, so it will be ramping up during the FY 2025. But hopefully, with the minimum number what we are expecting, but it could go up to 20% upside during the FY 2025.
Okay.
FY 2026.
Okay. And, can you just give a breakup of the equity investment, which is balanced for FY 2025, 2026, 2027?
Actually, out of the INR 3,092 crore equity required for 23 projects, we have already infused INR 2,079 crore till June, and remaining INR 1,013 crore is required in FY 2025, around INR 500 crore, INR 587 crore. FY 2026 is INR 290 crore, and FY 2027, INR 140 crore.
Okay. Okay, that's all from my side. 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. So first, would be great if you could give us the toll collection number for the various projects.
Toll collection, MP Highways, INR 6.5 crore. Kanpur Highways, INR 24.8 crore. Narela, INR 26.6 crore. Bareilly-Almora, 16.5 crore, and Ghaziabad-Aligarh, 32.16 crore.
Sure. The second question is, I mean, you expected that we expect the NOC from NHAI and lender, et cetera, in the next one to month. So by when do we expect the entire asset monetization process to get completed and to receive the funds from the buyer?
Actually, there are two phases in this entire transaction. We are expecting first phase will be completed by December, and by end of the financial year 2025, funds should come. Our first tranche.
Okay, and for the second tranche?
After that, around, say, September 25.
The funds should come by September 25.
Of second tranche.
Sure. Great. Last question, what is the status of the Andhra Canal project? I'm assuming currently it is monsoon, so maybe work could have been stopped. But, for the year as a whole, what is the kind of execution that we expect there, especially after the change in the government?
See, canal project, as you said, now work stop because water is flowing in both main canal as well as branch canal. So as we've seen and witnessed last two to three years, so work could be commenced either in the month of December or January. So the current financial year would be able to do around INR 60 crores-INR 75 crores work, if we start in the month of December. And also since this particularly this project is very vital for the Rajasthan, you know, for Rayalaseema drought relief, we don't expect that the new government will have a different stance, so they will continue with the project, so we'll able to execute further.
Here, we want to share this, the whatever amount is outstanding from the towards the work done, so we received INR 60 crore last week. We expect to receive further funds from the new governments. And then as we receive the funds, then we'll cover, we'll continue with the work.
Sure. Thanks, and all the best.
Thank you. Participants, to press to ask a question, you may please press star and one. The next question is from the line of Shravan Shah from Dolat Capital. Please go ahead.
Yeah, thank you, sir. Sir, I hope my voice is clear now.
Yeah. Yes, very much clear.
So the outstanding order book of this irrigation project is remains the same, INR 932 crore?
Yes.
Okay. What is the outstanding order book of Hardoi and Gajraula ?
Hardoi, INR 137 crore.
Gajraula , Devinagar , Package 1C.
1 C is INR 100 crore.
INR 100 crore. And Haryana Orbital Rail?
INR 720 crore.
INR 720. Okay. And, the small one, now Lalganj and Meerut, Najibabad, has it completed or still some order book is there?
Lalganj is hardly INR 20 crore is remaining.
Meerut.
INR 28 crore, Meerut-Najibabad.
Okay. And Challakere-Hiriyur?
It is INR INR 90 crore.
Sorry, INR 90 crore?
INR 90 crore, yes.
Okay, INR 90 crore. Okay, got it. Sir, in terms of the working capital, just the primarily debtors which has increased, so do we see by end of this year in terms of the working capital days?
Working capital days should be around 100 days, because at this time it has increased from 102 to 121 because of the increase in the debtors.
Yeah.
Which we have subsequently realized, irrespective whether of water or the HAM projects.
Okay, got it. And, is there anything further in terms of arbitration claim or bonus that are likely to be there in the remaining three quarters?
So don't expect any arbitration realization of any arbitration award during the next three quarters. In terms of bonus, we completed AKP -5 and now Lalganj a few months ahead of the schedule, so we'll be receiving bonus during the current financial year, these two HAM projects. But since HAM projects bonus is not as large as EPC projects, there'll be a minimal. As of now, readily, we don't have figures, but there will be minimal bonus we'll be receiving from Unnao, Lalganj and AKP-5 .
Okay. And, sir, till now, how many value of projects that we have bidded and where bid has not yet opened?
We have bidded 18 projects for a total value of estimated value of INR 17,700 crore. Financial price bids of which are yet to be opened.
Oh, and this largely will be in the road and highway HAM?
Yeah, yeah. Say, 50% HAM and 50% EPC.
Okay. And for BOT toll, are we looking to bid any of the BOT toll projects?
See, we are evaluating the opportunities, BOT toll projects. We'll take a call and, I mean, this thing, we'll take a call and accordingly, we'll see whether we need or not.
Okay. Okay. Okay. Thank you, sir. All the best.
Thank you.
Thank you. Ladies and gentlemen, you may press Star and one if you wish to ask questions. The next question is from the line of Vishal Periwal from Antique Stock Broking. Please go ahead.
Yes, so thanks for the opportunity. One is on our revenue guidance that we have changed. So this is primarily coming from roads or from the water side?
See, revenue guidance for it will be a combined thing, you know, whatever, see, revenue will be coming, that should be coming from the both the things, and the majority from the highways, because, as we said, the order book, if you see the order book, more than 80% is from highway and, less than 20%, from the water sector. So the revenue also increase the same ratio.
Okay, okay, okay. So no, I know, actually, the quarter one was showing a little bit of weakness in water, but that is expected to pick up, and then that, that's what basically you are saying?
Yes, yes. That's expected to pick up during the second half of the current financial year, and the ratio will be maintained.
Okay, got it. And then second, just, the increase in the CapEx vis-a-vis FY 2024 or INR 40 crore to INR 80 crore-INR 100 crore in this year. So any particular line item where exactly we are seeing this opportunity or the CapEx is getting infused? Any broad that you would like to share?
Actually, after this award of the MSRDC, Maharashtra Road Development, the projects are of INR 5,000 crore. So there we require some CapEx. And additionally, Varanasi to Kolkata, that project we require some new CapEx. So that is why we have considered around INR 80 crore-INR 100 crores, maybe lower than this.
Okay, okay. Got it. Got it. And then, I think, I think I missed on that MSRDC project that you mentioned. So, when is the outcome expected on this? I think you did briefly mention. I just missed, if you just clarify.
Yes, as you said, no, the Letters of Award are expected before end of this current month.
We are expecting turnover in third quarter.
From third quarter onwards.
Okay. And maybe one last two things from my side, and then I'll come back in the queue. For this asset monetization, I think just correct me, I mean, like, you know, earlier we were expecting everything to get concluded by 2025, FY 2025. So any thing that you'd like to share for the slight delay that we are seeing, or this a procedural thing that we are seeing for this asset monetization for us, the conclusion of it?
That is only procedural situation, NOC from NHAI and NOC from lender. Major condition precedent there.
Okay, okay. Got it, sir. Okay. And I come back in the queue, sir, for more. Thank you.
Thank you. The next question is from the line of Vaibhav Shah from JM Financial. Please go ahead.
So thanks for the follow-up. Sir, you indicated that the phase I should get completed by December and money should come by March. So the phase one, earlier we, we had mentioned that it includes six HAMs and one BOT, and valuation for that is around INR 1,789 crores. So that remains the same, the mix of phase I assets?
Yeah, yeah.
Okay, okay. Okay, and sir, what kind of... So you mentioned that we'll be starting the execution for MSRDC projects in third quarter, but what kind of revenue can we factor for the, for FY 2025 from the two packages?
See, these two projects are being a greenfield project, initially the items involved will be as so there won't be any high-value work to be executed in initial this one. So we expect some minimum of around INR 200 crores-INR 400 crores kind of a turnover, revenue, from these two projects in the current financial year. It could be more also, depending upon the situation.
But in FY 2026, roughly 45%-50% you will be executing, right?
Yes, yes. May not be 50%, but it'll be around 40%.
Oh, okay. Thank you, sir.
Thank you. Ladies and gentlemen, one last reminder for all those participants who wish to ask questions, you may press star and one. As there are no further questions, I would now like to hand the conference over to Mr. Yogesh Jain from PNC Infratech for closing comments. Over to you, sir.
Thank you. Thank you everyone for your participation in our earnings call. In case of further queries, you may get in touch with the Strategic Growth Advisors , our investor relations advisors, or feel free to get in touch with us.
Sir, sorry to interrupt, but we do have one last-minute entry into the question queue. Would you like to take that, sir?
Yeah, yeah.
We have the question from the line of Jiten Rushi from Axis Capital. Please go ahead.
Thanks for taking my question. So my question would be on upcoming bid pipeline. So obviously, you have got 18 projects which you have bid for, but what kind of bid pipeline you see in railways and highways, which you look to participate in next six to eight months?
The NHAI has floated tenders and NITs for more than 100 projects, around 30 projects on EPC and more than 70 projects on a HAM basis. The total value of these projects will be more than INR 1.20 lakh crore, INR 1.23 lakh crore. So we expect we are evaluating all these opportunities, so we'll be bidding these projects next maybe say five to eight months.
So this will include BOT toll also?
BOT toll, this is excluding BOT toll. BOT toll, also there are some around 10 projects are there. There also we are evaluating the viability and other aspects. So there will be judiciously taking a call, so to pursue these projects.
Railways, sir, any thought process on railways?
Railways also we are looking. Mainly, we are looking at the sector, because recently, as I mentioned, 25 projects are announced by the cabinet.
We are bidding railways?
We are bidding railway projects.
Continuing-
The one bid is already. We submitted our bid, which is under evaluation, and the price which is yet to be opened.
And sir, on the water segment, obviously, we were supposed to participate in other states, which you were talking the last quarter. So this quarter, I think, we are not speaking on the water segment. So, this would... Is it, is it safe to understand that, we will not be taking any more water projects going forward?
No, no. Certainly, we'll be bidding water projects. As of now, new water projects floated by any of the states, now. I think now they, everybody is waiting for the budgetary allocations and other things. Now, since general elections are over . So we expect new projects will come up in other states, and certainly, we look forward to bid for these projects if they find...
So in the mix of next inflow of what you said, INR 8,000-INR 10,000, what kind of inflow are you expecting in terms of non-roads, any, or it will be purely roads?
We'll see that thing, so now, whatever it be, it will be a hypothetical kind of a thing.
Okay.
So we'll see going forward what kind of opportunities are coming in the other sectors other than road, then that will be as of, say, something-
Sir, one last, sir, one last question on the Q2 number. As you said, the revenue would still remain subdued, or it would decline year-on-year in Q2 also because of heavy monsoon. Is my understanding correct?
Yes. As in the revenue will be subdued, continue to be subdued in Q2 also, because of the intense monsoon.
Okay, sir. That's all on my side, and thank you, and all the best, sir.
Thank you.
Thank you. Sir, there are no further questions at this time.
Okay, thank you.
Thank you.
Thank you very much.
Thank you. On behalf of Antique Stock Broking, that concludes this conference. Thank you all for joining us. You may now disconnect your lines.