Ladies and gentlemen, good day and welcome to the Q3 FY2025 earnings conference call of PNC Infratech, hosted by Batlivala & Karani Securities India Pvt. Ltd. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing the star, then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Kunal Sheth from Batlivala & Karani Securities. Thank you, and over to you, sir.
Thank you, Sheth. Good afternoon, ladies and gentlemen. On behalf of Batlivala & Karani Securities, I am pleased to welcome you all on PNC Infratech Ltd. Q3 FY2025 earnings conference call. We have with us the Managing Director of the company, Mr. Yogesh Jain, along with the senior management team. We will begin with an opening remark from the management, followed by an interactive Q&A session. Thank you, and over to you, sir, for the opening remarks.
Good afternoon, everyone. On behalf of PNC Infratech Ltd., I extend a warm welcome to everyone for joining us today on this call. Today, I have with me Mr. Rao, Director Infra; Mr. D. K. Agarwal, CFO; Mr. D. K. Maheshwari, Senior Vice President; and Strategic Growth Advisors, our Investor Relations Advisors. We have uploaded recently an investor presentation on the stock exchanges and company website for your reference. Initially, I would like to mention key updates of the industry, followed by the operational development of the company, and highlights of the financial performance during the quarter and nine months of financial year 2025, post which we will be happy to answer your questions. Like the last year, the first nine months of current financial year also witnessed subdued new project awarding activity by both MoRTH and NHAI.
It is understood that total hold on the Bharatmala program, the general elections held in June 2024, and delay in acquisition of minimum land required before bidding are the key reasons for very low project awarding activity. However, since the beginning of the fourth quarter of current financial year, awarding activity is getting expedited by both MoRTH and NHAI. As such, a sizable number of new projects on EPC, HAM, and DBFOT modes are expected to be awarded before 31st March 2025. Highway construction activity declined by nearly 6% in the first nine months of financial year 2025 to 5,283 kilometers from 6,216 kilometers in the same period of financial year 2024.
During the current financial year, execution of already awarded projects severely impacted due to intense and prolonged monsoons and low awarding activities over the past one and a half years, and persistent delay in the realization of appointed dates due to non-availability of land for commitment of construction. Providing pre-acquired minimum back-end ROW has become critically important for both timely commitment of awarded projects and uninterrupted construction. In the recently introduced budget, the government allocated 2.8 lakh crores to the Ministry of Road Transport and Highways for financial year 2025-26. Out of the total budgetary provisions, allocation to NHAI has been increased to ₹1.8 lakh crores for highway extension and modernization programs. To further optimize infrastructure development, MoRTH is implementing a corridor-based approach, prioritizing uniform standards, enhancing user convenience, and improved logistic efficiency.
This initiative aims to streamline transportation, reduce travel time, and lower logistic costs, foster better connectivity, and seamless mobility across the country. To leverage technological advancements, which are playing a pivotal role in infrastructure, MoRTH is exploring the adoption of artificial intelligence in infrastructure, particularly through automated and intelligent machine-aided construction that is called AIMC for initialized projects. Notably, our company is at the forefront of this initiative, having implemented automated and intelligent machine-aided construction for the first time in India at the Mumbai-Nagpur Expressway project. As part of this state-of-the-art technology, graders, rollers, and pavers fitted with GPS-based 3D machine guidance and control systems for precise grading, construction, and paving conforming to design parameters. This technology also ensures real-time monitoring and controlling of operations. This innovative approach is poised to bring revolutionary change in road construction in India. Now coming to the recent update on the company.
On the project development side, the company subsidiary Hathras Highways Pvt. Ltd. received provisional.
Hello? Ladies and gentlemen, we have lost the connection to the management. Please stay connected while we reconnect them back. Thank you. Ladies and gentlemen, the line for the management has been reconnected. Yes, sir, please go ahead.
Yeah. Now coming to the recent update on the company. On the project development side, the company subsidiary Hathras Highways Pvt. Ltd. received PCOD for its HAM project on 31st October 2024, two months ahead of the due completion date for the Mathura 1C package. On the asset monetization front, during the quarter, the company received in principle approvals from NHAI for the development of the company's interest in eight target assets. For the remaining three assets, approvals are expected by the end of this month. The company has already received the NOC from 34 lenders for 11 projects. On the project awarding front, the company has received a letter of award of three EPC projects for an aggregate contract value of INR 6,670 crores in the state of Maharashtra.
During the quarter, we have received INR 108 crores from the government of Andhra Pradesh towards work done for the canal upgradation project. We are pleased to share that as per the MoRTH order dated 6th February 2025, the disqualification imposed on the company and its two subsidiaries has been reduced from 12 months to 4 months. Accordingly, we will resume participation in the bidding process of MoRTH, NHAI, and NHIDCL from 18th February 2025 onwards. Now moving on to operational and financial performance of the company, we have 28 fund-based projects. Out of these three are BOT toll projects, two are BOT-Annuity projects, and 23 are HAM projects. Out of three BOT toll projects, the completion period for one of the projects, Kanpur Corridor toll project, concluded on 20th January 2025, and accordingly, tolling operation has been handed over to NHAI.
Aggregate bid project cost of 23 HAM projects is over INR 30,000 crores, which is one of the largest highway HAM project portfolios in the country. Out of total 23 HAM projects, 12 projects achieved PCOD and COD, 7 projects are under construction, 3 projects achieved financial closure, and appointed dates are to be declared. For one project, the concession agreement was executed with the MPIDC on 7th March 2024, and the financial closure document has been executed and submitted to MPIDC. The total investment requirement for the HAM project is INR 3,092 crores. Till December 2024, the company already invested INR 2,283 crores, and the remaining equity of INR 809 crores is to be invested over the next two to three years. The internal efforts that would be generated over the next two to three years should be adequate to meet the above equity investment requirements.
Now moving on to our order book, as of 31st December 2024, the company's unexecuted order book extends over ₹18,900 crores, which includes three EPC contracts secured by the company in 2025 for aggregate contract value of ₹6,670 crores. Out of the unexecuted order book, highway, expressway contracts contribute around 75%, while water canal area development and railway projects contribute around 2025%. In terms of project proponents, out of total unexecuted order book of ₹18,900 crores, the value of MoRTH, including NHAI contracts, comes to 30%, and the value of contracts awarded by other authorities comes to 70%. Now moving on to the standalone quarterly results. Revenue for the third quarter of financial year 2025 is ₹1,205 crores. The EBITDA for the third quarter of financial year 2025 is ₹146 crores. The EBITDA margin for the third quarter of financial year 2025 is 12.1%.
The profit for the third quarter of financial year 2025 is INR 83 crores. The PAT margin for the third quarter of financial year 2025 is 6.9%. Now, standalone nine month results. Revenue for nine months of financial year 2025 is INR 4,099 crores. The EBITDA for nine months of financial year 2025 is INR 873 crores, which is higher by 23% as compared to INR 712 crores in nine months of financial year 2024. The EBITDA margin for nine months of financial year 2025 is 21.3%. The profit for nine months of financial year 2025 is INR 585 crores as compared to INR 447 crores in the nine months of financial year 2024. A growth of 31% on year-to-year basis. The PAT margin for nine months of financial year 2025 is 14.3%. Consolidated quarterly revenue for the third quarter of financial year 2025 is INR 1,470 crores.
The Consolidated EBITDA for the third quarter of financial year 2025 is INR 379 crores. The EBITDA margin for quarter three of financial year 2025 is 2025.8%. The Consolidated PAT for the third quarter of financial year 2025 is INR 81 crores. The PAT margin for the third quarter of financial year 2025 is 5.5%. Consolidated revenue for nine months of financial year 2025 is INR 5,065 crores. The Consolidated EBITDA for nine months is INR 1,704 crores as compared to INR 1,268 crores in the nine months of financial year 2024. A growth of 34%. The EBITDA margin for nine months of financial year 2025 is 33.6%. The Consolidated PAT for nine months of financial year 2025 is INR 740 crores as compared to INR 514 crores in nine months of financial year 2024. A growth of 44%. The PAT margin for the nine months of financial year 2025 is 14.6%.
On the standalone balance sheet side, as of 31st December 2024, our net working capital cycle is 167 days. Our net worth on a standalone basis is INR 5,353 crores as of 31st December 2024, whereas total standalone debt is INR 397 crores. The total cash and bank balance as of 31st December 2024 is INR 743 crores. We have a net surplus of INR 345 crores, which translates to net debt to equity of 0.07 times. On consolidated basis, our net worth is INR 5,911 crores, whereas total debt is INR 9,332 crores as of 31st December 2024. The total cash and bank balance, including current investment, is INR 1,701 crores, which translates to net debt to equity of 1.58 times. With this, we now open the floor for questions and answers. Thank you very much.
Thank you. Before we start the Q&A session, I would like to read out that this conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as of the date of this call. These statements are not a guarantee of future performance and involve risks and uncertainties that are difficult to predict. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use hand signs 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. A couple of questions. So first, in terms of the inflow and the revenue front, so now the ban on NHAI and the MoRTH is ending, and we will be able to bid from the 18th of February onwards. So, how are we now looking at in terms of the order inflow by March end, and maybe if you can help us for next year also, and there also from NHAI and the MoRTH side particularly, how much are we looking at in terms of the order inflow by March and next year?
So far, this year, we received new orders worth INR 3,670 crores. We are expecting our new orders before the end of the current financial year. We missed the 6,270 of another 6,280 crores and 6,290 crores. So our order book at the end of the new orders at the end of the financial year for the current financial year will be around INR 13,000 crores, maximum INR 15,000 crores. So we don't want to now see 12 into the how much would be this from MoRTH or from the other clients, but it would be around INR 13,000-15,000 crores. And our new order for the financial year FY23 also will be in the same range, INR 13,000-15,000 crores.
Got it, sir. And now in terms of the revenue, so already if I exclude the arbitration and everything, so nine months we are already down by close to 32%. So in the fourth quarter, excluding the arbitration which was there in the last year, fourth quarter, INR 297 crores, so how we look at the core revenue front, how much are we looking at? And given that now the order inflow will pick up so far next year because the base itself is low, so how we are looking at the next year's revenue?
In the current year, overall, we are looking at a revenue which would be lesser by 2025% to 30% in comparison to FY2024. Subsequently, in the next year, we are expecting an increase in the revenue. The revenue would be less than 35% over FY2025.
Sir, when we are saying of 2025%-30% lower this year, so this excludes the arbitration. So this is a pure construction revenue we are talking about?
This is a pure construction revenue.
This includes arbitration also because last year also we had an arbitration of around 300 crores. So this 2025%-30% decline is inclusive of arbitration, what we have received during the first quarter of the current financial year.
Okay. Got it. And now, margin obviously we will be maintaining 12%, 12%-12.5%, next year 13%.
Yes. Yes. That's what we have.
Yeah. Now, if you can share a couple of balance sheet and the project-wise order book data point? So inventory, trade receivable, payable, retention money, unbilled revenue, mobilization advance?
Yeah. Retention money is INR 172 crores, and mobilization advance is INR 271 crores.
Sorry. 271?
Yeah. 671. Mobilization advance.
Okay. Inventory data, payables?
Inventory is INR 746 crores.
Okay.
Data is INR 1,668 crores. 166.
Okay. And creditors' payables?
INR 760 crores.
In that, how much is HAM and water datas?
EPC 64%, which is INR 107 crores, INR 1,070 crores, and 36% HAM, which is INR 598 crores.
Water data?
Water?
Water project, how much is outstanding?
792.
Okay. And a couple of project-wise order book, if you can share, that would be very useful. So starting with the irrigation project, so how much is outstanding value as of December?
It is 9:24, sir.
Okay. Kanpur Package 1 and Package 2, Kanpur, Lucknow?
Package 1 is 238, and Package 2 is 292.
Mathura Bypass, Gullu?
Mathura Bypass 1B is INR 193 crores.
And Hardoi?
Hardoi is [Foreign language] Hardoi line [Foreign language] . Almost completed.
Okay. Similar would be the Gullu, Devinagar should also be complete.
Yes. Yes. Yes.
This both one, Unnao-Lalganj and Meerut-Najibabad should also be completed.
Yes. Completed. Yes.
And Challakere, Hiriyur also completed or something is left?
Challakere [Foreign language] . That is INR 54 crores.
54 crores. And Haryana Orbital Rail Corridor?
Haryana is INR 620 crores. 620.
620 crores. And the last one is Prayagraj, Kaushambi?
Prayagraj is 469.
Okay. Thank you, sir. I have more questions, we'll come back into. Thank you.
Thank you. Thank you.
The next question is from the line of Vignesh Iyer from Sequent Investments. Please go ahead.
Hello. Hello.
Yes.
Yes, sir, you're audible. Please go ahead.
Yeah. I'm audible. Okay. Thank you, sorry, sir. So I wanted to ask on the net working capital days side of the business. So on an average, what the 90-100 days that we used to maintain for the last few years, our net working capital days is on the higher side. I mean, how do you look at this to be going ahead probably for FY2026 and further? Can we see the normalized 100 days coming back for net working capital days?
Yes. We are expecting FY2025 within five to 110 days. Because there is a temporary increase in the net working capital because of the advances given to the suppliers. Because there are eight projects where we have not started the work. So we have mobilized the contractors, and we are giving the advances. That is why it is increased. And secondly, because of the mutual fund, around INR 440 crores of 31st December, there's against INR 3 crores in the March 2024. So because of these two reasons, it has increased to INR 167 crores. Otherwise, it is around 102 to 105 days.
Okay. Got it. And, sir.
It is a temporary advance.
It is a temporary thing.
Yeah, so as soon as the work will start in these projects, the bills will adjust against that advance.
So, okay. Got it. What is the kind of order inflow that we are seeing in quarter four? I mean, there were announcements. I mean, there is expected to be a lot of announcements post all the election things have done with, I mean, after the Lok Sabha Maharashtra election, etc. So, and also after the recent, is there any major inflow that we are seeing coming in quarter four?
In December, we have received the order of INR 6,670 crores, and we are expecting around INR 6,000-INR 8,000 by March. So total will be around INR 13,000-INR 15,000 during the FY2025.
Okay. And what are you seeing, and what would be the order inflow expected going ahead in FY2026?
FY2026 also, we are expecting around INR 15,000 crores contracts.
Okay, sir. Got it. Got it, sir. I'll get back in a few, sir. Thank you.
The next question is from the line of Jatin Jain from ICICI Securities. Please go ahead.
Thank you for the opportunity. So sir, my first question is, how are we seeing the order pipeline for FY2026?
Yeah. As our managing director has mentioned, for NHAI itself, so an INR 1.8 crore budget allocation was made by the Government of India. Apart from their internal accruals and the other establishment program they are doing, so we expect a very robust pipeline of projects both from NHAI and MoRTH apart from the other clients, either the railways and other sectors also. Funds have been allocated for the infrastructure whole, so we are looking forward to have a very robust pipeline of projects next financial year, so definitely, we will be able to leverage those opportunities to secure around INR 15,000 crores of new projects during the FY2026.
Okay, sir. And are there any major intervals for which we are expecting the tenders to be floated in the coming quarter or you can say in FY2026 and where we will be looking to participate?
Yes.
So you want to name a few major projects?
We'll be expecting pipeline for the next financial year also.
Okay, so any major intervals to be named for?
Yes.
All right, sir. That answers my questions. Thank you so much.
Thank you.
The next question is from the line of Sarvesh Gupta from Maximal Capital. Please go ahead.
Good afternoon, sir. Sir, so what is the standalone net debt as of now, sir?
Net debt to net debt.
One more? Net to zero.
Net to zero.
Which one?
Net debt.
Oh, net debt.
Which one?
Net debt.
Net debt is INR 397 crores, sir.
Hello?
Hello?
Yeah.
Net of cash, sir?
Net minus cash.
Net of cash is INR 345 crores, sir.
Okay. So.
Hello?
Hello?
Hello?
Yes.
Yeah. So INR 345 crore net cash.
Net cash, yeah. Net cash.
Net cash. Okay. Okay. And sir, so what we are seeing is in the next one and a half months, so till this 40 days, how much of order inflow has happened in this quarter, sir?
What we are expecting, around INR 9,000 crores.
No. Already.
Last quarter, we are expecting INR 6,000-8,000 crores, sir. And already, we have received till December INR 6,700 crores.
No. So 6,700 is underscored. That is for the first nine months. Now, in these 40 days till now, in this quarter, how much have you received till now?
No. As of now, for this quarter, till date, we haven't received any new orders. But going forward, during the next 40 days, we expect to receive INR 6,000-8,000 crores new orders.
6 to 8,000 you expect, sir? And what is the pipeline of bidding on this? I mean, what kind of win ratios are we looking at? Because this 6 to 8,000 looks very steep to happen in just 50 days only.
Yes, sir. Because see, the non-MoRTH itself, there are projects worth more than INR 20,000-2025,000 crores out there which have already been floated. And both MoRTH and NHAI floated projects worth INR 127,000 crores, which are to be bid out in the next five to six weeks' time, covering both EPC, HAM, as well as the TOT projects. So the pipeline is very huge, the bidding pipeline. So because, as you see in past history, during the month of February and March, a large number of projects are bid out, received and awarded before the end of March. So out of INR 150,000 crores, what we are expecting is around 4% only. So that much projects we are confident of getting before the end of March.
Okay. Understood. And sir, now in terms of your revenues, so even if I adjust for INR 300 crores of FY2024, I get to INR 7,400 crores last year, and that has had a standalone EBITDA margin of around 13.2%. So what would be the sort of EBITDA margin guidance for FY2026? Because what you are saying is FY2026 revenues should be similar to FY2024, right? So are we looking for a slightly lower EBITDA margin given the change in the mix? Is the NHAI projects being only 30% of our book, giving us lesser margins? So can you explain that? How do you look at the margins?
See, for FY2026, as you have mentioned, we are looking at an EBITDA margin of 13%, which will be akin to the FY2024 margin. See, the NHAI projects are there, and there are projects from other banks also. As we mentioned, the ratio is, as of now, 13 to 17. So overall, we are looking at a 13% EBITDA margin for FY2026.
Okay. And are the margins similar, sir? Because you are getting a lot of projects from non-NHAI MoRTH. So how are the margins? Same or different?
Margins are more or less same from MoRTH and non-MoRTH projects. So margins are more or less same. So overall margin stays at roughly around 13% in FY2026. We don't foresee any decline in the EBITDA margin in FY2026. So 13% is what we are reasonably expecting.
This INR 6,700 crores that you have received, this is all Maharashtra, I understand. I think there are some concerns on this MSRDC project, and I think there have been some delays, etc. When do we expect the execution to begin on these projects, and what is the current status of it?
MSRDC, we received two projects: Jalna-Nanded project, which is the expressway project, and another project is the Pune Ring Road. In Jalna-Nanded, we have already commenced the project. We already commenced the construction. So there, in Pune also, we are expected to commence the construction during the current quarter. So because the government, after the state assembly election, they expedited the process of land acquisition, possession, and giving the land. So we don't foresee any major issue there. So definitely, these projects will be executed as per the schedule. We will be able to complete within the scheduled time.
The CIDCO project, sir?
CIDCO project also, all pre-construction activities, we have commenced, and we mobilized the resources.
We have received advance also.
We received the mobilization advance also first time. So CIDCO project also, we are going to commence the construction during the current quarter.
So out of this INR 19,000 crores of order books, sir, how much are you currently working on, and how much is somewhat away from execution phase?
See, Maharashtra projects, sir, having INR 6,600 crore, but then for NHAI projects, we need to get an appointed date for another INR 3,000 crore projects. So we are working around, let's say, Maharashtra, I'm guessing INR 9,000-INR 10,000 crore worth of projects we are working on.
So okay. So with this INR 9,000-10,000, sir, do you feel confident that next year itself we can do INR 7,500 crores? Because all the newer projects may not start immediately, and it will take up to the second half of next year to start many of the newer projects which we will win. So from this INR 9,000 crores order book which is under execution, can we get INR 7,500 crores for next year?
9,000 crores are the which are actively we are constructing, which are the ongoing projects. We are given 7,400. Certainly, we will get some revenues from these new projects which we talked about, more than INR 10,000 crores projects, and also, then we may be getting some projects before the end of the current financial year, again, which will give again some revenue from the Q3 onwards, FY2026 Q3, so overall, the 7,400 what we are getting as part of the FY2024 are otherwise 35% more and above the current financial year. We should be able to achieve the revenue.
Okay. Sir, on slide numbers.
Yeah. Mr. Sarvesh, please fall back in the question queue for further questions. Thank you. The next question is from the line of Ashish Shah from HDFC AMC. Please go ahead.
Yeah. Good afternoon, sir. Sir, a few questions. In the water segment, can you update the status of on-ground execution, whether there has been any improvement in the recoveries of receivables in 4Q? Because you did mention that there's some INR 800 crores which was outstanding as of December. So how is the Q4 looking, and what is the outlook for this segment as you go ahead?
See, because there is a scarcity of funds from the Government of India. But however, now in the new budget, they allocated more than INR 60,000 crores for the Jal Jeevan Mission for FY2026. So we expect the fund inflow from the Government of India and also matching funds from the state government from the new financial year. Nevertheless, state government, we are expecting some funds from the state government in the current financial year itself before 31st March, from which we should be able to realize our payments which have been outstanding for the past few months. And from the first quarter of FY2026, there should not be any issue of receiving the money.
Okay. Also, in terms of the projects where you are waiting appointed date, I think that's about INR 4,100 crores which you mentioned. When do you expect the appointed dates for these projects, sir?
We are expecting the declaration of appointed dates before the end of the current financial year, that is before 31st March 2020.
What is the land acquisition status? If you can just spell out by projects, where are you in terms of the current land acquisition in these projects?
Land acquisition has been improved over the last three months. Now, the exact figures are not readily available. We will share with you.
Sir, are we confident that we'll get some execution cycle before monsoon in these projects, or do you think this can all spill over to post-monsoon also?
No, no. We are expecting some kind of execution and the contract revenues during the past quarter of FY2026 before the onset of the monsoon.
Okay. Maharashtra projects, you did say that there are some initial mobilization and construction activities have started. But if you can just dwell a little bit deeper on what's the kind of on-ground status in terms of land available and what kind of execution you would expect from these projects within Q4, and how does next year look? So if you can just sort of spell out how Q4 looks for these projects and what kind of execution you will expect in next year? Because these are very sizable projects, so it's important to sort of monitor how these projects will shape up.
See, as we have mentioned, out of three projects, one project we have already commenced the construction. We expect some certain revenue in Q4 itself from this project, more particularly Jalna-Nanded. Other two projects also, the construction will be commenced during this quarter itself. But the contract receipts may not be sizable during the current financial year. But nevertheless, from Q1 onward, Q1 of FY2026 onwards, all these projects will start giving sustainable revenues going forward, and all these projects will be commenced in full swing in.
But physical work for Pune and CIDCO will certainly happen within 4Q. Start of construction will certainly happen in 4Q.
Yes. That's what we are targeting to start the physical construction during the current financial year itself before 31st March. Because as we have already mobilized large part of our resources, so we are expecting commencement of work on the ground at these two projects also before 31st March.
All right. And sir, last question. You talked about the increase in working capital. One, you said because of the mobilization advances, etc., that you have given. There is something else also that Maheshwari sir mentioned, but I missed that. So if you can just repeat why this net working capital has increased.
Mainly because of the advances to suppliers. Secondly, we have invested in the mutual fund. Such as money in the PNC, we have invested in the mutual fund, which was 3 crores in March 2024, has increased to 440 crores in December 2024.
So sir, in the presentation, when you're giving the Net Working Capital number of 167 days or something like that, you are also including this mutual fund investment of INR 400 crores?
Yes, yes.
All right. All right, and when you gave the cash number of 743, that includes the mutual fund investment.
Right. Right.
All right. Got it. Thank you.
Thank you.
The next question is from the line of Devendra Mishra from Sunidhi Securities. Please go ahead.
Sir, first question is with respect to our HAM project monetization. So what kind of approval is required, and when do we expect this to conclude?
Hello?
Sorry to interrupt. The line for the management has been disconnected. Please wait while we reconnect them back. Thank you. Ladies and gentlemen, the line for the management has been reconnected. Yes, sir, please go ahead.
Should I repeat my question?
Yes, please.
So I just wanted to ask about this divestment thing. So what is the kind of approval from regulatory authorities required, and when at best we will conclude this monetization?
Actually, there are NOCs required from lenders as well as from the authority. And out of the 12 FAs, we have already received the NOC of 11 projects from 34 lenders as of date. As regards the NOC from authority, out of 11 projects, we have received the incentive approval of 8 projects, and we are expecting by the end of this month, we will receive the NOC from 3 projects from the authorities. So we are expecting that by the end of this March 2025, 11 FAs will be monetized out of 12.
By March 2025?
Yeah.
What is the equity IRR we will be making from these projects?
It will depend on the closing, because the equity we have invested in all 11 projects is INR 1,619 crores, including unsecured loan, and what will be the realization actually, we will come to know only at the time of closing, because certain working capital adjustments are there, which will come to know only at the time of closing only, sir.
Okay. And with regard to INR 6,000-8,000 crore, we are expecting next 40 days. So this is based on bids already submitted, and then what is the size of bids we have already submitted, and we are expecting this tender to be finalized?
Sorry to interrupt. The line for the management has been disconnected. Please wait while we reconnect them back. Yes, sir. The line for the management has been reconnected. Yes, sir, please go ahead.
Should I repeat my question again? This is with respect to order inflow guidance we have given for next 40-45 days, which is 6-8 thousand. So this is based on the bids already submitted, or we are expecting bids to be submitted, and then this tender will be awarded before 31st March? And what is the size of bid we already submitted?
See, as we mentioned, so whatever bids we have submitted, that is a very marginal amount. About INR 5,000 crores' worth of bids are pending for opening of FY2026. But other bids we are going to submit in the next two.
Yes, sir. Are you better?
Yes, sir. The management line has been connected again. Please go ahead.
So you will participate in bids after 18th February, which will open after 18th February, right? And then you are expecting these bids to be awarded before 31st March?
Yes, yes, yes. The awarding activity has been very, very expedited as we experienced in the past also. So whatever bids we've been submitting before the third week of March will be awarded before the end of March. So the pipeline is very robust. More than INR 1 lakh crores' worth of bids have already been floated with a different bid due date spanning from 18th February till end of March.
Which are the states where we are seeing major pipeline where we will be participating?
No, no. These bids are whatever bids they floated, these are across many states from this thing from north to south and east to west. So we are to see really for which state how many bids have been this thing. But these are spread across the country.
Okay. So thank you. All the best. That you have for me.
Thank you. Thank you.
Thank you. Thank you.
The next question is from the line of Parikshit Kandpal from HDFC Securities. Please go ahead.
Yes, sir. Hi. So my first question is in the L1 order. So what is the value of the L1 order?
Which L1?
This Bhandara to Gadchiroli EPC project.
That is around INR 2,400 crores.
But you have not included that in the INR 6,700 crores of inflow, right?
That is not included in there.
For the first, for the Q4, as of now, you have L1 of INR 2,400 crores, which where the low is expected?
Yeah.
Okay. Sir, second question is on JJM. Now we have close to INR 800 crores of debtors in water segment. And first nine months, if I look at your revenues, so it's about INR 600 crores from the water segment. And maybe this year you will end up close to, if I take Q3 numbers of INR 192 crores, somewhere around INR 800 odd crores you will end up. So which means that you already have a year of receivables from this project, which is outstanding. So just wanted to understand, in this financial year, did you receive any money at all from the JJM projects? So if you can help us understand from the start of the financial year till now, what has been the collection in this project?
Yeah. Yes. This financial year, we have received money. Till October, we have been receiving money till October. Only from November onwards, only we are expecting capacity of funds from the SWSM. Till October, we have received. The whatever money now is pending, that is whatever work done towards this, and such a money was due in the last financial year that we have released.
How much is it?
750 crores received. INR 750 crores we realized this year till October. It was 92025 on March. It is now 792.
Yeah. Plus, which includes INR 600 crores what we have here. Yeah.
Okay. So INR 92025 was outstanding as of March 2024, and now it's less than INR 800. So you have received to the.
Yes. Yes. Yes.
We expect to start receiving the money latest from April onwards. If the state government provides such an amount, what is the outlay of their 50% money, then we may be getting some amount during the March also. Okay. Just one question, sir Yogeshji. I mean, almost the entire industry has been talking for the last three quarters on positivity on the NHAI ordering and pipeline being more than 1.2 trillion or 1.1 trillion, 1 lakh crore plus. And we always remain hopeful. Last year also, FY2024, we were hoping that orders will come. And we only come to know when we are at FY end or maybe March that ordering will happen. But I just want your opinion on this. I mean, you're still holding on to that 1 lakh number.
So do you think versus last year, this time there's a high probability of this pipeline converting into order inflows? Or even for this year, you would end up maybe 40,000 or 50,000 crores of inflows?
[Foreign language]
Okay. So basically you are saying that this was more of a procedural delay from the land acquisition side. But intent wise, intent wise, intent wise, still the pipeline is looking good and you think that there is still be continuity in awarding in this year and next year.
Even pipeline [Foreign language]
So, sir, I was hearing that something from deliberation has gone in PMO that the quality of roads has come down significantly and that's the reason PMO has advised the ministry to increase what you are saying, increase the project size so that the qualification criteria which got diluted post-COVID and lot of low quality contractors came in. So now I think PMO has advised, what I am hearing that PMO has advised MoRTH to increase the size so that good quality, capable, financially worthy contractors are able to execute the projects. Is something like that, sir? I mean, is it also one of the.
Actually, [Foreign language]
Okay sir. Sure. Thank you sir.
[Foreign language]
[Foreign language]
Right? Part of, part of business.
Okay. Just one last thing, sir, jo aapka abhi jo ban hata hai, to 18, you saying 18 separate will be eligible to bid for all these projects, right?
Yes, yes, yes.
[Foreign language]
Actually, [Foreign language]
Okay. So now you have clear signals on them, that from 18 onward, you will be from 18 morning, midnight of 18 onward, you will be able to bid for all the projects, which will come from north and side ECL and NHL.
And in entire India, in every department.
So we will be other side of the mountain from 18. Chaliye sir, congratulations for that. Finally, you could get that much needed. Yeah, thank you.
[Foreign language]
The next question is from the line of Vaibhav Shah from JM Financial. Please go ahead.
Sir, what would be your guidance for revenue from the JJM projects for the entire year? For FY2025 and 26?
This year, see, already we achieved more than 600 crore. So we are expecting total guidance for the current financial year, we would be between 800-850 crore. And the next financial year, we are expecting some expedited progress. And it would be around 1200 crore, around in this next financial year. And the government also has increased the JJM tenure till end of FY28. So we have a time to complete these projects and put them into operation.
So the investments should be done in FY27, around 7000 crore?
No, we will be progressively putting these projects into O&M mode. We started the process. It's not like that that entire thing. As we complete the each unique, each scheme, so we will be pushing them into the O&M mode in a progressive manner. So gradually, we will be able to put the all the projects into O&M mode in FY27.
So balance work will be finish in 27, I think. Entire balance work.
Yes, entire balance work. And all projects will be.
Around INR 1,500-INR 1,600 crore.
Yes, yes, yes.
Okay. Sir, secondly, on the irrigation side, our order book is around INR 92024 crore. So we were expecting the pickup in execution in 2025 and 2026. So what would be our revenue guidance for irrigation projects as well? Since retention money as well.
So, now the water receded in the canal system, from the middle of February, we are expecting the resumption of work in the irrigation project. The work next one and half months, we should be able to get around INR 50-60 crore project. In the next financial year, we are expecting around INR 400-450 crore revenue from the irrigation project.
This one should be complete in FY27.
Yeah, that 27, and they already extended, given the extension of time for this particular project.
Okay. Sir, secondly, on the monetization side, last time we had mentioned that we want to monetize 10 assets in this year, and the investor will go into first half of FY by September and October of next year. So do you maintain the same guidance?
yeah, we are maintaining. In fact, we are targeting 11 assets this year, before end of financial year, monetization and the closure and the transfer of asset before 31st March. 11 assets out of 12, and the remaining asset may be in the Q1 of FY2026, latest by Q2.
So remaining would be only one HAM in next year?
Yes, one HAM in next year. This year 10 HAM and one BOT total.
Can you just give the numbers? What is the equity investment in those 11, 10 HAMs and one BOT, and for the last one HAM?
11 project equity be infuse INR 1,620 crore.
Okay. And for the one HAM, that will be coming next year?
190 crore, 190.
What equity valuation will we be getting for the 11 assets? 1520.
Equity depend at the time of closing, because 13 working capital adjustment are there, and exactly, we will come to know.
We are expecting?
Yeah, earlier we have given the note about 1.67 times of the equity invested at the time of signing of the share purchase agreement.
Okay. So it will be similar to that number?
So it is around the same number.
[Foreign language]
Similar number. Okay. And sir, lastly, for the HAM project that you are expecting Appointed Date, are you confident to get them by March? So any execution we expect in Q4, and it should be largely next year only?
See, Q4, though we are expecting commencement in Q4. The contract receipts and the work done will not be a significant in the Q4, but we start expecting the revenues from Q1 FY2026 onward. That will be the practical kind of a thing.
Sir, lastly, there was some confusion regarding the revenue guidance for FY2025, given the bonus and claims that we received in last year and this year as well. So for Q4, so versus INR 1,200 crore of revenue in Q3, what would be the run rate for Q4? That will be much easier to understand the entire year guidance. So it will be closer to INR 1,600-INR 1,700, and it can be even more.
No, it will be closer to the, it will be around that number.
Okay, okay. Thank you, sir. Those are my questions.
Okay, thank you.
The next question is from the line of Ketan Jain from Avendus Spark. Please go ahead.
Thank you. Sir, my question is about, I mean, order inflow guidance for next year. You said around 15,000 crore order inflow guidance. Sir, it would be helpful if you could bifurcate that into roads and water into segment wise.
See, as of now, we are primarily looking at road sector only. See, what our projects, we got the order 6,670, we see more than INR 4,000 crore from the roads of MSRDC. One project is the area development, sorry, Navi Mumbai Airport Influence Authority. So influence development authority. So that is the area development kind of a thing. And the remaining, whatever we are expecting, it will be essentially from the roads and highways of the road.
It is called road, sir?
Yeah, yeah, INR one trillion worth of projects are coming in NHAI itself, more than one trillion. So we are expecting primarily from the road sector.
Yes, okay,
okay. Thank you.
Thank you, ladies and gentlemen. Due to time constraint, this was the last question for today's conference call. I now hand the conference over to the management for their closing comments.
Thank you for your time and trust in the PNC Infratech Limited. In case of further queries, you may get in touch with the Strategic Growth Advisors, our investor relations advisor, and feel free to get in touch with us. Thank you very much.