Ladies and gentlemen, good day, and welcome to the Power Mech Projects Limited's Q1 earnings conference call hosted by Nirmal Bang Equities Private Limited. 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 this conference call, please signal an operator by pressing star then zero on a touch-tone phone. Please note that this call is being recorded. With this, I now hand the conference over to Ms. Arshia Khosla for opening comments. Thank you, and over to you, ma'am.
Thank you, Natasha. I, Arshia Khosla , on behalf of Nirmal Bang Institutional Equities, welcome all of you to the first quarter FY26 earnings call of Power Mech Projects Limited. From the management side, we have Mr. S. Kodandaramaiah, Director, Non-Board, Business Development, and Mr. N. Nani Arvind, Chief Financial Officer. I would now request the management to give their opening remarks, post which we shall open the floor for Q&A. Thank you, and over to you, sir.
Thank you, Ms. Arshia Khosla. Good morning, everyone. I'm Arvind, CFO of the company. I have with me Shri. Kodandaramaiah, Director, Business Development. I extend a warm welcome to all of you for our quarter one FY 26 earnings call. The performance for the first quarter of FY 26 was in line with our set targets. We reported a total income of INR 1,304 crore, marking a 28% increase over INR 1,016 crore in Q1 FY25. EBITDA stood at INR 182 crore, up 48% from INR 123 crore last year, while profit after tax came in at INR 81 crore, registering a 31% growth compared to INR 62 crore in Q1 FY25.
The EBITDA margin improved from 12.1% to 13.95%, supported by exceptional revenues from Uttarakhand riverbed mineral projects, while PAT margin rose marginally from 6.1% to 6.2%, moderated by higher finance and tax costs in the LLP, which we floated for riverbed minerals projects. For the revenue mix for quarter one, in terms of revenue mix for quarter one FY26, the mechanical segment contributed INR 222 crore, a 117% increase over INR 102 crore in Q1 FY25. The civil segment, including railways, water projects, contributed INR 581 crore, reflecting a 7% increase. O&M revenues rose to INR 398 crore, up 17% from INR 341 crore. The electrical segment recorded INR 67 crore compared to INR 8 crore, a 737% jump, and the mining business contributed INR 26 crore versus INR 14 crore last year, showing an 80% increase. Other income stood at INR 11 crore compared to INR 9 crore in the previous year.
The revenue split for the quarter was 95% domestic, 5% international, while the contribution from the power sector remained at 53%, with non-power sector accounting for 47%. On the financial front, Return on Equity declined from 3.09% during the Q1 to 2.41% due to higher finance and tax costs, which they anticipated that normalization in collection and execution are likely to improve significantly in the coming quarters, while return on capital employed improved from 4.7% to 5.69%, driven by better capital deployment and improved operating margins. Operating cash flow remained neutral due to pending receivables in the water division. However, we are actively engaging with clients to expedite the certifications and clearances, and we are confident of realizing the outstanding dues in the coming months.
Net current asset days, excluding cash and cash equivalents, have decreased from 128 days in Q4 FY 2025 to 123 days in Q1 FY 2026, driven by the realization of receivables, which resulted in a reduction in the current assets. We are actively engaging with the Uttar Pradesh government for the realization of pending Jal Jeevan Mission receivables, which is expected to further reduce current asset days. Additionally, with the stabilization of MDO business from 2027 onwards, we anticipate a significant improvement in the net working capital days. As on 30 June 2025, the gross debt and net debt remained controlled, and despite delays in certification of water bills and delays in realization of receivables, as on 30 June 2025, gross debt is around INR 753 crore and net debt stands at INR 239 crore. The debt-equity ratio as on 30 June 2025 stands at 0.34 times.
During Q1 FY26, the company secured fresh orders worth of INR 1,270 crore. The total order backlog stood at INR 53,972 crore. Excluding the two MDO projects, the executable order book is INR 14,391 crore. We are targeting INR 10,000 crore new orders by March 26, and as on date, we have already secured INR 1,882 crore. Our strategic focus remains on the high potential areas, including industrial O&M, railway, and water infrastructure, as well as MDO projects. For FY26, we have set a revenue target of INR 6,500 crore, with an expected 25% year-on-year growth and stable EBITDA margins in line with the FY25 levels. Margins could see an upside depending on the contribution mix from O&M and mining segments. The order book outlook for the year remains healthy, supporting our growth trajectory.
With the company well positioned to execute and convert around 40% of its opening order book annually, the MDO business is ramping up steadily, and along with O&M, it is expected to drive significantly growth in the coming years. From the MDO business point of view, our MDO business is progressing steadily. At the Kotre Basantpur project, mobilization of HEM equipment has been completed, and the first year of mining operations commenced on 15 April 2025. Till date, Overburden Removal of 5 lakh cubic meters has been completed, and the work is continuing. Coal production is expected to commence from September 25, subject to the monsoon conditions. At the Kalyaneshwari Tasra project, OB removal and coal dispatch operations have been ongoing since January 24. As of June 25, coal production has reached 7.61 lakh tons, with the corresponding OB removal of 14.71 lakh cubic meters.
Mining fee against the coal produced and dispatched to sale has been accruing since January 24. To date, invoices have been submitted for 7.52 lakh tons of coal dispatched to the existing washery as per SAIL direction, with a total value of 158 crores, so far we have recognized revenue. In terms of washery and railway siding development is concerned, design consultants have been appointed for both the washery and railway siding. For the railway siding, engineering scale plan, L-section plan, and consent to establish approval have been received while approvals for overhead electrification and signaling interlocking system are expected by end of this month. For the washery, major equipment designs have been completed, and LOIs have been issued to the vendors for some of the equipment, with the remaining order under progress in parallel with the design activities. Mobilization and establishment of washery site are also in progress.
While sales current coal offtake remains below the plan due to the limited external washery capacity available outside, we are actively working to resolve these constraints and ramp up the production in the coming quarters. With this, now I request Mr. Kodandaramaiah garu to update on the key business development initiatives and future outlook.
Yeah, thanks, Arvind, for your introduction and also the overall business vision of the company. Thanks for our participants also. I think, as Arvind has said, we are looking up into the business, opening up substantially. We have seen it is there for the last two years, and it continues to happen in the coming years also. Coming to the basic order booking and the backlog of what we are having here, I think in the first quarter we had a total order booking of INR 1,270 crore with key orders on Telangana where Telangana Yadadri project we are also building into the quarters, the establishment quarters, about 1,350 flats value of INR 972 crore. We have taken a first major step into the green energy business in taking under the KUSUM scheme of solar project in Bihar for INR 159 crore, total value for about 25 years.
And O&M jobs also we have taken, nine jobs of INR 108 crores. These are the key orders there. But beyond the quarter one also, currently also, recently we have booked a major O&M order in SJVN that is 2 x 660 MW Buxar, 498 crores for a five-year O&M operation, and NTPC Jhabua also about 53 crores. This is the latest two major developments apart from what we have seen in the first quarter. Now, looking at the overall order backlog, taking into consideration the revenue, what has happened into the first quarter and the last year backlog, what we had in 1st of April, INR 14,387, more or less the order backlog remains same, about INR 14,391 crores, with a major increase in the civil segment of the business from INR 847 crores to INR 902 crores, 6.5%.
In other segments, because in the first quarter we have not substantially added because of the opportunities were postponed later. These things are expected to come up, and there is some marginal reduction in the overall order backlog from mechanical and insulation business from INR 2,303 crores to INR 2,081 crores, O&M from INR 2,749 crores backlog to INR 490 crores. Electrical, we are consistently looking at the business and stabilizing it. Therefore, we are not looking at any significant adding new businesses at this stage. By any stabilization, it is now INR 786 crores the backlog compared to INR 863 crores. The domestic business continued to drive the business with about 98% of the order backlog, and the international business mainly focused on the O&M with a backlog of INR 250 crores, which is about 2%.
The power sector continues to be a lead opportunity provider for the company with about 61% of the business at the beginning of the year. It is now 57.5%. In the last year, now it is 57.5%, and non-power is about 42.5%. This is on the segment-wise opportunity. In the case of the key initiatives has been the market has been opening in the Power sector and in the Infrastructure and Non-power sector also, there are a lot of opportunities I have seen. The last 8-10 years, the trend is continuing for our participation in railways, roads, and infrastructure, metro work. Then significantly, the O&M profile what we have increased.
One of the key aspects of the O&M business has been that, in fact, our total capacity of operation of the O&M business has gone up by 4,107 MW with three major projects in the preceding years, and recently, what we have taken SJVN also 1,320 MW that will jack up the overall O&M business to nearly 75,000 MW, and with more focus on the power sector, the addition of the capacity, there is going to be a lot of opportunities.
Now, coming to the key opportunities and the business where it is going, I think we all know there is going to be a revival of the power sector business owing to a variety of requirements in another five to 10 years as the increase in capacity, which I have been telling in many of my previous interactions with you, that with 500 GW of the renewable power adding up by end of the decade, and then there is going to be a balance for the power requirement, 80 GW of thermal power has to be necessarily added. And there is a significant addition into the actions taken by the various companies, particularly Adani, which has got a present installed base of about 70,550 MW. They intend to double it, about double the capacity to 34,000 MW - 35,000 MW in another five to six years.
They have taken the lead in adding around recent orders what they have placed in the last couple of months, maybe including the previous two, three quarters, and about 15,720 MW they have ordered. And recently also, they have taken action on another 4,800 MW. Therefore, they are significantly adding up to the ordering backlog of the engineering EPC companies like BHEL and L&T. NTPC is another major organization which has taken the lead, about 11,580 MW of ordering which has been done in the last couple of quarters. That also is adding up. Other utility companies like DVC, Neyveli Lignite Corporation, Mahagenco, then Singareni SCCL, then Gujarat State Electricity Corporation Limited, then Chhattisgarh, they are also taking the initiative and adding new capacities.
Therefore, if we take about 18 months to two-year ordering status in the last one and a half years, and the trend is continuing, about 38,000 MW ordering has been done in different areas and different stages. About 10 EPC projects have been awarded to BHEL. Then L&T has taken a major step forward again, coming back to the power sector execution of 4,000 MW, two projects. They have taken at Nabinagar and Gadarwara. These two players will now L&T also is going to put their pitch in. The latest information is that Adani perhaps has taken an initiative to order some boiler packages to them, and this news has to be confirmed for the L&T also.
Therefore, perhaps they want to slightly diversify the BTG Boiler and Turbine , Generator island ordering package to, apart from BHEL also, looking at the overall order backlog BHEL has taken it. Therefore, if you look at the overall scenario, there has been a substantial ordering of more than INR 2 lakh crores at about 38,000 MW in the last one and a half, two years. That throws up significant opportunities for a company like Power Mech. We are into various segments of the main power plant installation, both in the main plant and the balance of plant area, and that offers an opportunity of about INR 30,000 crores. Now, in these areas, recently, our interest and where we have taken a lot of initiative is in getting into the market with Adani.
About three or four major jobs we have taken at Mahan, then Raipur, Korba, that is Amarkantak, about INR 1,653 crores of mechanical installation jobs, and then INR 800 crores of the civil works at Mahan Phase Two and Mirzapur Phase One, which they are putting up for the first time, 280 MW. That comes to about INR 2,453 crores, and all these schedules about 30 months firm price contracts with the fair advance and payment terms. These projects are already under installation and execution and going on a fast track basis. The other important development is the BHEL Kodarma DVC. We have taken INR 579 crores in BTG civil works and cooling tower work about INR 743 crores. Therefore, if you look at the power sector scenario itself, perhaps the company has added nearly about 7,500 MW of capacity addition presence in the recent times.
This will continue to happen in the coming years also. On the O&M sector, what I can say is that we have got a reasonable backlog to continue the order, the conversion factors, and the opportunities are going to continue to be there with the new capacity addition of about 6,000MW-8,000 MW every year, both, with particularly Adani is going to add a lot of capacities and other players are also going to add up capacities and public sector also is going to add up the capacities. With that, more opportunities will come. As I said, 4,000-plus MW have been added to the base strength of the O&M, coming to 75,000 MW. Perhaps with more and more capacity addition, this base capacity of Power Mech has to increase in the coming years, and we continue to bank on the domestic O&M business.
And the international O&M business, the main focus is around the shutdown jobs, repair jobs, maintenance jobs, and manpower supply. Actively, we are doing in the Middle East and Nigeria. Nigeria, we are executing a 400 MW long-term contract that is being under execution, and then many maintenance jobs we have taken. And that we expect about INR 300 crores of order booking in this year. Now, the other important sectors are the railways, where we are significantly working in about eight major projects of INR 2,500 crores and having completed some of the significant railway jobs also. And the road sector also, we are working in many projects. And apart from that, one of the key areas of infrastructure business is undertaking the metro works. Metro works, there is a major ongoing investment. 22 cities have got its penetration. Metro spread is there about 950 km.
This is going to double up in the next five years to almost 2,000 km with another 23 cities added, and our interest is in all these metro shops is first to work on the maintenance depots because each of the major metro cities, they need two maintenance depots. We have got experience in doing many railway workshops with the railway jobs, what we have undertaken so far. The major railway metro maintenance job we are executing in Bangalore for the Bangalore Metro Corporation, INR 427 crores. That gives us the references to it for many of the metro opportunities which is expected in the future. Therefore, in the overall scenario, what I can say is that last year, our total order booking was about INR 6,437 crores. That is compared to previous year INR 8,758 crores in 2023-24. For 2024-25, INR 6,437 crores.
Of course, last year, there were many aspects, mainly because of the elections and monsoon and so many other interfaces. Perhaps this year, we are keeping a target of about 10,000 crores. And in an area which is of significant importance in the power sector, the business can be opening up in the Balance of Plant packages. Couple of projects we are pursuing it with the opportunities of about 10,000 to 12,000 crores. And some significant development should take place shortly. And that should see how we can take up this work. And that synergizes with our overall business plan. And our expertise also, on a comprehensive basis, we have got a mastery in construction and an end-to-end solution in civil structural, mechanical, and afterwards post-commissioning O&M and also. Therefore, that enables us to be a strong player in this.
We are discussing with a couple of players on this, and then let us see how it takes place. And that is an area which has a lot of interest to us in this year. That's what I would like to say. Thank you, all of you.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question, you may press star and one. On your touch-tone telephone, if you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use the handset while asking the question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question comes from the line of Mohit Kumar from ICICI Securities. Please go ahead.
Hi. Good morning, sir. Thanks for the opportunity.
My first question is on the margin in this particular quarter. Was there any one-off in this quarter?
Yeah. So this is exceptional revenue, sir, because there is a notice in the Uttarakhand riverbed mineral. There are certain quantity which we seized from the clients where they have to pay the royalty. And we caught some quantity there without unpaid royalty. So because of that, we collected double the penalty. That resulted in the higher profit and royalty. So that resulted in a higher profit. So it's a nine-month business. Basically, the riverbed mineral's drainage season Q2 probably will not have that much profit. So nine months only operation. In Q1, we caught the exceptionally high seized quantity. It resulted in more profit in the current quarter.
So what is the impact of that in the current quarter?
So that is roughly around hello, sir? 19%, sir.
So INR 19 crore is the impact this current quarter?
INR 55 crore is the PAT, which comes into 19% EBITDA margin from that particular LLP.
Understood, sir. My second question on the thermal BOP, of course, is a very large opportunity. But having said that, sir, why are there delays in finalization of the tender? And is this opportunity of BOP, is it available from BHEL, Adani, NTPC, or are the packages being broken up into smaller, smaller parts? Is it a single package broken into smaller, smaller parts? The size could be much smaller. Is that the right understanding?
Yeah. I think both the ways it is possible. Because what has happened, people like Adani, say, companies like Adani, they would like to do themselves many things. The main plant, they would like to order the rest of the balance of plant packages, including the civil and other packages.
They would like to handle themselves. That is where we have also taken some of the jobs in what I said recently we have taken. Now, the other aspect is the part on the main plant. That is called the Balance of Plant is nothing but the inputs which goes into the main plant for its operation, like water, power, and then civil works, and then so many auxiliaries are like coal handling, ash handling, water systems, and then miscellaneous things are there. This is all nowadays combined as a part of a single package, and that is the concept. Because main plant is specialized with a company like BHEL or L&T, Balance of Plant, it is again a specialized multidisciplinary specialization, not only engineering, but also in construction in different areas, civil structural, mechanical, electrical, C&I. For that, it's more of integration and needs a proper unified input.
It's like water is required to start the power plant. Then power is required to start the power plant. And other utilities also. They follow both the models. One is to combine the entire package into something like a single package. That is a Balance of Plant package. Another is to further segment into Balance of Plant into civil segment, coal handling, ash handling, and individual segments. And that depends on the customer choice and how you would like to get a competitive offer in the pricing to see that the overall investment cost is moderated. Therefore, our interest is in both the cases because our strength now, because end-to-end construction we are having, we have also strengthened our engineering base. And then with these things, perhaps BHEL also is planning to do this type of BO P in a way that it can be roped in with other agencies.
And particularly contracts like us, we are better qualified to do that. That is how it is. Are there too many single BOP packages available in the market?
Yeah. I think if I look at the ordering, NTPC has ordered 10 EPC jobs. Total NTPC ordering which has been done is about 14,500 MW, about 113,000. Now, this NTPC ordering mostly on BHEL and to some extent on L&T. Now, the major orders which are not ordered on the EPC mode is NTPC has balance of plant about six plants they have to order it. That will come for packaging. And Adani, as I said, around 15,720 MW. That entire balance of plant will come as a packaging. Apart from that, BHEL themselves have taken a lot of orders. In terms of BHEL EPC ordering, as I said, about 113,000 crores for 14,500 MW.
Therefore, this will be some areas, maybe some of the projects can be thought of as a balance of plant package with BHEL also.
Understood, sir. Thank you. All the best. Thank you.
Thank you. The next question comes from the line of Jainam Jain from ICICI Securities. Please go ahead.
Thank you for the opportunity. Sir, in the first quarter, we had a low order inflow.
Sorry, sir. There is a little bit of disturbance from your end.
Hello. I'm audible right now?
Yes, sir. It is better. Please go ahead.
Yeah. Sir, in the first quarter, we had a low order inflow with a strong pipeline in thermal space and nuclear space. So why are the orders not flowing in? Is there any challenges or delays which we are seeing?
I think that is a typical of first quarter and second quarter. If you look at last year, first quarter also it was about INR 1,040 crores. This year, we have taken it as INR 1,270 crores. Now, the opportunities what we are tackling in various things, various business segments is more than INR 30,000 crores. And then the Power sector, there is an opportunity set of INR 30,000 crores. And then there is an Infrastructure set. Continuous investments are coming. We have seen the annual investments in what is happening in the railways, roads, and then metro jobs are also. Generally, the trending of any customer is to start the ordering in beyond the second quarter. That is how the order gets added into the last two, three quarters generally.
Therefore, with looking at the opportunities what we are having, because at any time we are tracking about INR 30,000-35,000 crores of opportunities. And then INR 10,000 crores is a reasonable thing which we have projected to the investor community. That should be reasonably possible. Because in various areas, power sector side, non-power sector side, infrastructure side, O&M side. Also, O&M has done today around INR 1,700 crores of opportunities we are tracking. And then in the new plants, as and when they are commissioned. For example, latest SJVN, when I said about INR 500 crores of jobs which we have taken. That should happen. And let us see these targets what we have about INR 10,000 crores should be possible from that perspective.
Thank you, sir. Sir, within the Tasra mines, what was the total production during quarter one?
Around 1.5 million tons.
1.5 million?
Sir, 150,000.
Okay, sir. Sir, we are guided for hello?
Yeah.
Sir, we are guided for INR 300-400 crores of top line in this fiscal from MDO business. Whereas we have booked only INR 26 crores in this quarter. Can you throw some light on that?
This combines both together we planned for INR 204 crores from the Tasra mine and INR 60 crores from the KBP mine. KBP mine, we just started the production, and we are expecting to start the revenue from the Q3 onwards. From middle of the September, we'll start. But from my delay, it will be from Q3 onwards we'll start generating this. Probably we'll touch maybe around 0.2 million, INR 30- 40 crore of revenue we'll touch this year.
And in the Tasra mine, because of the washery capacity availability outside is very limited, we are offtake arrangements as per the sales plan order only based on the availability of external washery. We are giving around 50,000 to 60,000 per month. Depends on the sales direction we are executing. We hope that this we are trying to push the sales team to take the material up to 70 to one lakh tons of per month capacity we are asking them to looking at. And we are looking at the other alternative arrangement to outside any available external washeries availability there. We are also pursuing that to speed up our offtake arrangements.
Okay, sir. That answers my question. Thank you so much. And all the best.
Thank you. The next question comes from the line of Vinod from PhillipCapital. Please go ahead.
Yeah. Yeah. Thank you for the opportunity, sir.
So how much of this 80 GW can be realistically completed by FY32 according to you?
How many?
Of this 80 GW can be realistically completed by FY32?
Yeah. I think the ongoing jobs we are doing nearly 7,000 to 8,000 MW. Adani, Vedanta. And then the new jobs what we have taken recently from Adani for the last couple of months. Therefore, this is on the execution side, both in the civil and structural side. And perhaps another 1,500 MW to another nearly 2,000 to 3,000 MW should be added in this year also.
Okay. Because utility companies are talking of shortage of BOP bandwidth. So what is happening in terms of BOP bandwidth? Are new vendors being developed, or are they relaxing vendor norms now for the BOP?
Our bandwidth is a very strong organization set up for execution. Our headquarters is there.
Our expertise is there in construction, end-to-end construction solution, civil structural, mechanical, and the complete segments. And we have got also experience in doing some of the complex jobs like cooling towers and also chimneys. For what we have to interface more is the engineering aspect of it. That is an important aspect which we have strengthened the people with the very senior people from we have taken from experienced groups. And they are assisting us. And now we are in the process of evaluating the projects and bidding it. And the other aspect is the procurement. The procurement is a second important aspect of the EPC work. And that also we have strengthened with a really experienced hands. And in fact, what I can say is that the EPC concept what we are doing in non-construction significantly has got a better presence in railways and roads.
Therefore, already the type of experience is being gained by the organization. It is a question of integrating the procurement additional capacities required and then engineering interface which we have to take with an engineering consultant for the in-house strength and the existing construction strength. Of course, the technological part of this equipment supplies in many of the key packages like coal handling, ash handling, control instrumentation, and other things. As an engineering supply has to come to them, has to go to the various vendors who are qualified as per the CA guidelines, as per the main EPC contractor guidelines. And those aspects we'll follow it up. We are already in touch with many of the key vendors in many key areas for the critical areas like coal handling, ash handling, water systems.
We have established a rapport with them and to see that once it comes, how we can work with them also.
Sure, sir. Sir, what is the status of FGD projects? Are FGD projects now happening, or are they going to be abandoned? What about existing projects for FGD?
Sir, so far out of the total address, there is a because of the government guidelines, shifting of regulatory landscape and extended compliance timelines, this FGD project, there is a very prolonged inactivity. So after discussing with the clients, wherever there is a non-moving to the extent of INR 4,264 crore worth of FGD packages, we moved some non-moving category and we removed it from the order book. Only INR 936 crore worth of FGD project, only one project only running, which we have considered in the order book value. We are pursuing this FGD.
We are pursuing with the client. As and when the activity approvals receive from the agency, probably we'll take up these works. In that time, we are keeping this under the non-moving category, sir.
Sure. Thank you. Thank you very much, sir. I'll come back in the queue.
Thank you. The next question comes from the line of Darshil Jhaveri from Crown Capital. Please go ahead.
Hello. Good evening. Good morning, sir. Thank you so much for taking my questions, sir. Hopefully, I'm audible.
Yes, sir. You're audible.
Yeah. Yeah. Hi, sir. So just regarding our mining development operations, I could not get what you're saying about the second mine. Like the KBP mine, we are assuming around INR 30-40 crore. But the second Tasra mine, what do we expect this year, sir?
This year, probably we'll touch around INR 100-120 crore turnover.
Quarterly, around INR 25-30 crore revenue. Maybe around INR 120-150 crore between; we will try to achieve the target. Mainly because this washery requirement, this package is including the washery they have allotted to us, and we are constructing the washery. Our washery will be ready by December 26, so till that time, they have to do this washery outside the washery. So outside capacities are not available to do the washing, so only limited 50,000-60,000 tons per month capacity is only available outside washery. So we are their offtake the arrangement; they are taking only to that extent of mine quantity. So we are pushing the department sale to take the more mining quantity, but because of the outside constraints, they are unable to lift the more materials.
Okay. So is it fair to assume till our washery is not complete, we'll maintain around quarterly run rate of INR 20-30 crore? Is that like a fair assumption, sir?
Yes. Yes. The catch is that we are pushing now further to increase to another 20,000-30,000 tons extra quantity. We are pushing them to take.
Okay. Okay. Fair enough, sir. And with regards to our guidance, we have given a very clear guidance, INR 6,500 crore. But based on our order book, do we see any potential upside that may also happen to this order book, to the revenue recognition?
See, generally, our company executes convert around 40% of its opening order book annually. We have around 14,000-15,000 orders in hand, which translates to 40% into we can easily achieve the projected turnover of INR 6,500 crore plus the current Q1 and Q2, the new orders, whatever we are getting.
Also, we can be able to convert into the turnover. So we are content of achieving the growth. Because last year also, we touched around 25% growth. And we are also projecting this year also 25% growth compared to the last year. More or less, we'll try to reach that number, sir.
Okay. Okay. Fair enough, sir. And sir, just last question from my end. In the other mine, the KPB mine, is there any constraint of washery or how that ramp-up happens, sir?
The scope is only Mining, sir. There is no linkage of washery to that. And it is the responsibility of the client to lift the material without linking to the washery. So we just touched the coal now. But because of the rains and all, we are not producing the coal now. We are shifting this to the next month.
Maybe depends on the monsoon, we'll start the coal production by next month.
So sir, for the full year, FY27, what kind of revenue could we estimate? Approximately is also fine, sir.
Because this washery constraint is there for Tasra, so we can take average of INR 150 crore yearly basis for next year also, between INR 150-200 crore. And for the KBP, we can touch around INR 120-140 crore revenue.
Okay. Okay. Fair.
Both together, around 300-350 crore we'll touch next year.
Okay. And sir, Mining, what margin do we get usually, sir?
Sir, during peak rated capacity, both the plants, both the mines with peak rated capacity, weighted average of around 22% we are expecting. So because these are in the development phase now, once we reach the peak rated capacity by 2028 onwards, we can touch around 22% weighted average.
But till that time, maybe average of 15%-16% level. Because washery is also not started in Tasra, maybe around 10%-15% we can touch minimum. And depends on the readiness of the washery, it will go up to 22% on average.
Okay. Fair enough, sir. Yeah. That's it from my side, sir. Thank you so much. All the best, sir.
Thank you. The next question comes from the line of Dinesh Kulkarni from Finsight. Please go ahead.
Hello. I'm audible?
Yes, sir. You're audible. Please go ahead.
Thank you very much, sir. And really great set of numbers and the guidance you have provided. Sir, my question is, see, we have seen MDO, the kind of businesses we have got is not many in the last, say, two years, one and a half, two years. So what's your specific outlook on these kind of businesses?
How many are open for bidding now? And how large this could be in terms of order book, say, in the next two, three years?
Sir, in terms of the MDO is concerned, we are planning to continue with these two only right now. And we are not thinking of bidding for any new further MDOs till the time we touch this peak rate capacity. And coking coal MDO two are there. And we are looking at iron ore, if any MDO is available, iron and ore side. We will look at that opportunity.
Okay. So is it because of our capacity constraint, or you think the business economics and financial metrics are not equally lucrative? What's the reason?
No, no, no. This is because we are new to the MDO business, and we want to first stabilize our existing business, and then we want to take up further business in the MDO.
Now, I will add to what Arvind said, Ramaiah here. You see, as an opportunity, there is a huge opportunity there. I think this we have touched upon a couple of times. For example, Coal India, that is called what is called the first mile connectivity is there. First mile connectivity, namely from the mine site to the loading area, which includes the railway siding, the balancing facilities, and then the excavation facilities, and then, sorry, this one, more excavation facilities. And then more important is the mechanization of the material handling. Coal India has got an investment of INR 53,000 crore. Now, that is how we know.
For example, our initial experience, what we have taken as an EPC contract with ThyssenKrupp at Kurmitar and Salbani, we are trying to gain certain experiences in doing an execution also. Of course, MDO as a developer, we are in these two projects, but as an opportunity, it will be there. As far as we are concerned, our capacity as of today, nine million tons. Perhaps down the line, we can look at one more MDO based on how these two things shape up, and then based on the augmentation of our revenue and network, then we can certainly look at it. It is definitely a lucrative business, and our work, our organization synergy is better because we got a strong execution strength also, and then post completion, we can do the operation maintenance ourselves. That way, it helps well with our objectives.
But business-wise, the opportunity can be substantial, both in the iron ore handling and the coal handling.
Okay, sir. That really sounds great. And one more thing, sir. You mentioned that only 5% of revenue is from outside India right now. So around 90%-95% is within India. So just wanted to understand the business profiles in the foreign countries and Indian entities. Where do you think there is in terms of more opportunity with better margins? Because I believe there is some working capital constraint as well, right, in terms of number of days or receivables and stuff like that. So if you could just put some light on this, please.
International, sir, we are right now, earlier we used to do the ETC jobs outside, and we completed all the ETC jobs.
Some of the countries where repatriation back that money back to India is again the difficult challenges we faced in Bangladesh and some of the countries. We stopped doing all ETC outside, and we are only focusing on the O&M business outside India. All Gulf countries and Nigeria, we completed the ETC, and we have just started the O&M service and manpower supply and overhauling activity where we are getting good margins in O&M than the ETC. We are more focusing on the ETC business at this moment. There are a lot of opportunities that are available internationally, but we are pursuing based on the profile and client. We are now bidding for one case of Fujairah where material handling work we are now bidding along with the ThyssenKrupp. We are looking at the better opportunities.
But at this moment, we are only focusing only on the O&M and overhauling works of the power plants.
Okay. But where are the better payment terms within India or outside? Because I don't know how large our operations are there in terms of manpower handling and all that. The payment terms, I was asking, sir.
The payment terms are good, sir. So the terms are because these O&M service, because they are continuing services, which requires continuing manpower and also, they are releasing payments within 30-45 days, and on average, they are releasing the payments.
Okay. And sir, my last yeah. Go ahead. Please go ahead.
All these are off seasonal plants, and there are no problems we are facing in terms of realization of bills are concerned.
Maybe a week, 10 days delays, but we are getting the payments on time without any delay.
That sounds great, sir. And my last question is, sir, in terms of water works, what's really happening in the industry? Because we've seen some of the other players are not reporting great numbers, which is reflected in their stock price. It was not maybe the growth as expected as it was earlier, maybe like two or three quarters ago. So what's really happening in this, and what's your view and outlook there?
Sir, these works, sir, we are executing works in UP government where they are under Jal Jeevan Mission. There is a timeline which expires for the Jal Jeevan Mission in November 2024. And subsequently, last budget also, they extended the timelines. Subsequently, central government, it's a 50-50. It's a state government 50% funding and central government 50% funding.
From the state side, because of the Kumbh Mela and all, they diverted their funds to the Kumbh Mela expenditure. Now, subsequently, during Q1, they released their portion of the money. But the allocation from the central government, there is a delay. Unless and until the central government funds are released, delays in the certification and release of the bills are happening. The PMO received certain information that some of the states, they are now.
Hello? Your voice is leaking.
Your audio is not audible, sir.
There are certain reports they received, and some inquiries are going on in some of the states that whether the funds are properly placed and released or not, and also some issues are going on with some of the states.
So the central business team already visited all the UP states, and they are giving in the form of report to this PMO office. Then they will release the funds, sir. So we are hoping that Q2, probably some amounts, probably the government will allocate some funds to the UP government, and we'll expecting to receive the money by Q2 and Q3.
Okay. See, that really sounds great, sir, and all the best. Thank you very much.
Thank you. The next question comes from the line of Mahesh Patil from ICICI Securities. Please go ahead.
Yeah. Hi. Sir, a couple of clarifications. Sir, the exceptional item you mentioned, what was the?
Sorry, sir. There is a lot of disturbance, and your audio is not very clear.
Yeah. Is it clear now?
Yes, it is better now.
Yeah. So the exceptional item you mentioned, sorry, I did not get it.
You mentioned 55 CR as the PAT, right? Adjusted PAT.
Yeah. PAT.
Okay. Can you give the total top line, the revenue impact of that? What was the exact number?
INR 288 crore is the top line.
INR 288 crore. Okay. And this is one time, right? Next quarter onwards, this won't be the release?
Yeah. So there is a seasonal quantity which we got in the first quarter from the unpaid royalty from some of the vendors that we collect extra royalty as a penalty that resulted in more revenue. It resulted more PAT.
Okay. So INR 288 CR is the revenue and 19% EBITDA margin, right?
No, PAT margin.
PAT margin, 19%. Okay. Okay, sir. Sir, just want to understand, in the base quarter, Q1 last year, did we have any FGD orders in our inflow?
No, sir. No. No.
The FGD investment is going to come down with the recent Supreme Court order. But more opportunities will come wherever power plants are installed near the cities, Tier 1 and Tier 2 cities.
Right. And this one order that you mentioned, apart from this INR 4,264 crore of INR 946 crore, right? So that is currently ongoing, the execution?
Yeah. This year, we will complete that order also.
Okay. This year, we will complete. Okay. Okay, sir. Yeah. Thank you.
Thank you. The next question comes from the line of Bhagwat from Prosperity Wealth Management Private Limited. Please go ahead.
Thank you for the opportunity. My question is regarding the income tax rate. For the quarter, it seems to be comparatively higher. Could you please comment on this and provide an estimate for the full year tax rate for FY26?
See, the exceptional revenue what we are generating from the riverbed minerals, we floated some LLPs. LLP tax rate is at 35%, whereas the company rate is around 25%. So because of the exceptional profit we realized from the LLP, we present for the 35% tax on that. So that resulted 4% overall on the turnover.
Okay. So I have not got a clarity on that. You mentioned one of the transactions. The INR 288 crore, you mentioned the revenue, and INR 55 is the PAT from that. Is that correct?
Correct. Correct.
So the total PAT that is reported is INR 81 crore on the consolidated level. So this is not getting reconciled, actually. Could you please help me understand that?
See, the LLPs. What we are standalone is around INR 49 crore of PAT we recognize. Consolidated is around INR 80 crore of revenue. INR 80 crore is the PAT.
INR 81 crore is the PAT we recognize.
Y es. Out of that INR 81 crore, what is the one-off portion of that?
81, sorry? Your question?
Out of the INR 81 crore, the total profit reported, what is the non-recurring part of that?
Non-controlling interest, you are saying?
No, I am asking, out of that INR 81 crore, what is the one-off item that is included?
Let me take a second.
You mentioned INR 55 crores. Is that on PAT level or EBITDA level? That is what the query is.
Yeah. Standalone, we touched around INR 49 crore a nd there are some certain overseas projects, INR 12 crore losses there in one of the overseas projects. So that resulted in the lower PAT. So INR 55 crore is from the LLP. INR 15 crore loss we recognized in the Power Mech FZE, one of the international projects.
So the remaining all are from INR 80 crore overall net to net effect is INR 80 crore. INR 81 crore.
Okay. Okay. Okay. So yeah.
Whereas SPVs are subsidiary MDOs are also there. So there are nominal profits we realized. And only except that because of INR 15 crore of losses there in the overseas, that we added to that, and net effect will be INR 81 crore is the PAT for the consolidated numbers.
Okay. Okay. My second question is regarding the borrowings. So could you please update what the total borrowings are of Q1 and the blended interest rate on the same?
Right now, the working capital, our utilization is around INR 600 crore is our limit. Around INR 543 crore of utilization is there overall. And overall, including equipment loan and other borrowings, altogether around INR 753 crore. INR 753 crore is there. INR 753 crore is the total gross debt.
Okay. And the interest rate on the same?
Interest rate for equipment loan is around 8%-8.5%, but working capital, it is average of 9.2% interest rate.
Okay. Okay. Okay. Understood. Thank you so much.
Thank you. The next question comes from the line of Vinay from Hathway Investments. Please go ahead.
Yeah. Just a couple of questions. On these water works, what is the total outstanding as of date?
INR 300 crore we are supposed to receive. Receivables are in the form of receivables around INR 230 crore. And INR 100 crore of uncertified revenue is there. So around INR 330-340 crore roughly is the outstanding overall. Standing pending certification plus receivables together.
Okay. And unexecuted contracts are how much in this?
Around 65%. So around INR 1000 crore will be roughly the unexecuted value is there, sir. Out of INR 3000 crore.
Okay. So INR 1000 crore is unexecuted. The amount which we have received in Q1, total amount?
Around INR 70 crore.
And did we execute anything during this quarter?
Yeah. We are executing on the pending certification from the department. Unless the allocation of fund is there, they are not certifying the bills. It is in the form of WIP bills are there.
So you have gone slow or we are continuing with completion of our project?
If you look at my working capital utilization, that gross debt has increased mainly because of this. We are pumping money to the projects and we are trying to conclude the entire work during the current year. We want to bring this majority of the gram panchayats into the O&M operation so that we can generate more revenue in the O&M operations.
So we are focusing to conclude the entire activity around INR 215 crore value of works we are trying to 215 panchayats we are trying to close this year.
So INR 1,000 crore will be added in this year, you mean to say?
Depends on the certification from them. So we are pushing them, sir. If the government allocates funds immediately, it will happen this year. Otherwise, it will take to next year.
So just one last question. On the fresh execution this quarter, you are saying the unexecuted, I mean, the unbilled revenue plus billed revenue would be how much, roughly?
INR 350 crore. Okay. And total pending as of today.
Okay. Thank you. Thank you very much.
Thank you. Ladies and gentlemen, in the interest of time and no further questions, I will now hand the conference over to the management for closing comments.
Yeah. Ramaiah again. Thanks, everybody. Thanks, Arvind. Various aspects what you are doing in the finance and other aspects. I think, as I said, INR 10,000 crores is the target what we are working towards. That should enable the completing of the national contracts. The ongoing MDO jobs will come more on streamline, and that will increase the revenues. And apart from the power sector business, which is looking up with the opportunities what I have been brought out, what has been brought out, there is a new segment which we are also looking into the battery energy storage. Because as we know, the Government of India plans to enhance the green power, both in the pumped storage and the battery storage. They are required to take care of the energy imbalance in 2030. They are planning to add at least nearly about 40,000 MW.
And certain projects we are looking at as an opportunity, the battery energy storage. Recently, our people had gone to China also. Record the times on the battery supply and all. That is an important segment. The rest of the integration and then execution and putting up on the financial engineering inputs required is there. We are also looking at it. And as I said earlier, the Green Power First Initiative, what we have taken in Bihar under KUSUM projects that has come. For the future focus is the battery energy storage, pumped storage, and then the continued focus on the solar power and wind power. And that will be an area of business interest for us also.
And of course, the existing strength and the ongoing things what we are doing in the power sector will continue to be there with our leadership in that, both in the installation side, civil side, and the O&M side. And the non-power sector where we have clearly established our presence and also our experience in the railways and roads and metro projects will continue to play. Therefore, there is a wide basket of opportunities available with the continued investments coming up. I think this year, the overall investment about INR 11.2 crores is the central government allocation for the infrastructure. And that should go out in more increased pace in the coming years also. Therefore, what is expected is about INR 147 lakh crores of investment is expected to come in the next five to seven years by the central government alone as part of the continuation of National Infrastructure Pipeline.
We are into many aspects of the infrastructure business apart from the power sector business also. That should help us into see that our growth momentum is maintained. Thank you.
Thank you. On behalf of Nirmal Bang Equities Private Limited, that concludes this conference. Thank you all for joining us, and you may now disconnect your line. Thank you.