Ladies and gentlemen, good day and welcome to the PSP Projects Limited Q4 FY 2025 and FY 2025 post-results conference call hosted by SMIFS 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 the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Lokesh Kashikar. Thank you, and over to you, sir.
Yeah. Thank you. Good afternoon, ladies and gentlemen.
Sir, sorry to interrupt, but the line for the management has been disconnected. Ladies and gentlemen, please hold while we connect them again. Ladies and gentlemen, thank you for holding. We have the management back with us. Mr. Lokesh, you can go ahead now.
Yeah. Thank you. Good afternoon, ladies and gentlemen. On behalf of SMIFS Limited, I am pleased to welcome you all on the PSP Projects Q4 FY 2025 and FY 2025 earnings conference call. From the management side, we have Mr. P.S. Patel, Chairman, Managing Director, and CEO, and Ms. Hetal Patel, CFO of the company. I will now hand over the floor to Ms. Pooja Dhruve, Company Secretary, for the disclaimer, and then the management will have the opening remarks. This will be followed by interactive Q&A. Thank you, and over to ma'am.
Thank you, and good evening, everyone. I am pleased to welcome you all to the PSP Projects Limited earnings call for the analysts and institutional investors to discuss financial results for the quarter and year ended 31st March 2025. Please note a copy of the disclosure is available in the investor section of the website as well as stock exchange. Anything said on this call which reflects the outlook for the future or which could be constructed as a forward-looking statement must be reviewed in conjunction with the risk that the company faces. Now, I shall hand over the call to our chairman, sir, for his opening remarks. Over to you, sir.
Thank you, Pooja. Good evening, everyone. On behalf of the management of PSP Projects, I welcome one and all to the earnings conference call to discuss the quarter and full-year performance of the company. We concluded the board meeting this afternoon. To sum up the financial year 2025, I would say the year has been a difficult year for PSP Projects Limited. While the company closed with the highest ever outstanding order book of INR 7,266 crore, as in year-on-year growth of 20%, and highest ever order inflow to the tune of INR 3,506 crore excluding GST. The same has not got translated into numbers and growth during the year of the current outstanding order book. Adani Projects comprises of 25% and the rest are non-Adani projects. The company closed FY 2025 with the revenue from operation of INR 2,468 crore of almost similar level to FY 2024.
The company could not meet the exact growth guidance. The muted revenue growth has been because certain new projects of Dharoi Dam, Fintech building at GIFT city , GBRC, SRFDCL , GDC, SMC, Science city did not take off as per our planning, and there were delays in the receipt of drawings and in land acquisition and land allotment, delayed in client clearances, etc.
The total revenue impact of all these projects put together is in excess of INR 300 crore. Profitability update. In FY 2025, the company reported an EBITDA of INR 178 crore compared to INR 260 crore in FY 2024. The decline in EBITDA was primarily due to the expenses associated with the seven UP projects. FY 2025 marked the closure and handover phase of these projects, leading to concentration of additional costs within this year. A total additional expense of INR 62 crore was incurred towards these UP projects.
Excluding these one-time expenses, the adjusted EBITDA margin for FY 2025 stands at 9.7%, reflecting the underlying operational strength of our core business and in line with our profitability guidance on a consolidated basis. Regarding the definitive agreement with Adani Infra, SEBI approval received for the open offer and its stage of tender period, which has started from 22nd May 2025 up till 4th June 2025. Post the pending period, the acquisition will become effective from June 2025. Now let me share certain operational highlights of the quarter and the year. Till date, the company has completed 235 projects in total since inception, with 83% private projects and the rest as government projects. As on 31st March 2025, there are 58 ongoing projects. 91% of projects are based in Gujarat, 5% in Karnataka, 2% in UP, and 2% in Rajasthan. During FY 2025, the company completed 13 projects.
The major projects completed were SVKM's NMIMS Institute at Sanand, Ahmedabad, seven medical colleges and hospital completed in UP, two pre-cast projects completed other than National High- Speed Project, residential building for Project Ekaansh at Ahmedabad. During the year, the company was awarded 22 projects. The major projects awarded were airport development and city site development work containing five-star and four-star hotel, Coca-Cola project at Sanand, Medicity and Research Center at Ahmedabad, two commercial and one hotel building in Bangalore, biggest residential project of Ciba at Wipro City, Gandhinagar. After successful completion of Palladium Mall, Ahmedabad, repeated order from client for Palladium Mall in Surat. Leadership guest house and training center with precast technology in Shantigram, residential project at Vaishnodevi , Ahmedabad, and residential project of R5A in Shantigram. Now let me share the project level updates.
One of the largest project which we are going on the fast track is Coca-Cola project. Two days back, I was on the site and I saw almost the structure is over. Infra work is also going on and the finishing work is going on. So probably that project is almost on timeline, and we are doing much faster project for the Coca-Cola company. Surat Municipal Corporation high-rise building at Surat, we have reached to 14th storey as of now. Finishing work has been approved, facade work agency is on board, and the building is going parallelly from 14th floor on a structure side and rest of the area on a finishing side. Sports Complex, the main work is over and ready for anytime opening soon, and some additional work of about INR 20 crore for warmup pool is going on at Sports Complex.
Gati Shakti Vishwavidyalaya, we have almost come out of the basement for all the buildings which are supposed to be done for the university. Now, major budget works are going in the superstructure. We are also there on track, little bit slip schedule of about one and up to two months just because of the seasonal deficiency of labor in April and May. Outlook for FY 2026. We believe that FY 2026 holds strong potential for PSP Projects. The company enters the new financial year with healthy order book, laying a solid foundation for growth. Our primary focus will be on execution. The entire team over at PSP Projects is aligned towards delivering high-quality outcome and ensuring timely completion across all projects. Looking ahead, we recognize that our future success will be driven by our ability to execute efficiently and scale up our operations across increasing number of projects.
We are confident in our team's capability and are fully committed to achieving these goals. Regarding revenue guidelines, we expect more than INR 3,000 crore, but I will be in a better position to give you a close figure by end of this quarter as most of the Adani projects which we have started are at the stage of diaphragm work or acceleration. So going from two months from here, we'll be in a better position to give you a clear guideline what it will be up to beyond INR 3,000 crore. With this, I conclude my remarks. Now I would like to hand over the call to Ms. Hetal Patel to take us through the financial in detail. Hetal.
Thank you, sir. Good afternoon, everyone. The financial performance during the quarter ended on March 31st, 2025, are as below. Quarter 4 FY 2025 versus quarter four FY 2024. Revenue from operations for the quarter is at INR 655 crores versus INR 649 crores, which is marginally increased by 1% on year-over-year basis. EBITDA for the quarter is at INR 30 crores versus INR 52 crores, which is decreased by 41% on year-over-year basis. EBITDA margin is at 4.65% versus 7.98%. Net profit for the quarter is at INR 4.8 crores versus INR 15 crores, which is reduced by 68% on year-over-year basis. PAT margin is at 0.7% versus 2%. During the quarter under review, company had to incur additional expenses in UP projects to the extent of INR 9 crores.
Other expenses include asset written off to the extent of INR 2 crores and ECL provision created for retention disabled from Badaun Project, which is one of the UP projects, that is INR 1 crore 87 lakhs. During the quarter, Badaun Project performance bank guarantee of INR 8.02 crores was invoked, and the same is expensed off to the P&L account. During quarter four FY 2025, company has incurred CapEx of INR 16 crores and in totality for FY 2024-2025, the CapEx incurred is INR 61 crores. Gross block is at INR 599 crores as on March 31st, 2025, and net block is INR 307 crores. Would like to mention few of the important balance sheet numbers as on March 31st, 2025. Long-term borrowings, INR 62 crores, including short-term maturity of INR 34 crores. Short-term borrowings, INR 219 crores, excluding short-term maturity of INR 34 crores.
Land, INR 522 crores. Retentions, INR 175 crores. Mobilization advances, INR 335 crores. Inventories, INR 322 crores, which comprises of INR 145 crores of construction materials, INR 156 crores of work in progress, and INR 21 crores of finished goods. Out of total sanctioned credit facilities of INR 1,997 crores, company utilized INR 1,001 crores, including fund-based utilization of INR 122 crores and INR 496 crores facilities available for utilization. As on March 31st, 2025, the company has total fixed deposit of INR 265 crores, out of which lien-free deposits are of INR 60 crores. FD worth INR 180 crores are under lien with bank for credit facilities, and FD worth INR 25 crores are given as security deposit to the client.
Work on hand as on March 31st, 2025 is INR 7,266 crores. Detailed bifurcation is available in the uploaded presentation. This concludes the update on the financials, and we are now open for the question- and- answer session. Thanks.
Thank you very much. We will now begin the question- and- answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Navid Virani from Bastion Research. Please go ahead.
Hello. Hi, sir. Thank you for the opportunity. I have a few questions. First one is regarding the entire year of April 2025 and now FY 2026 going forward. Now that—
Can you speak little loudly? Can you speak little loudly?
Is it better now, sir?
Yeah.
Yeah. My first question is regarding how we look at FY 2026. FY 2025 was a washout year. We all understand that. But can you paint the picture of how drastically different can FY 2026 look like in terms of scale growth as well as profitability? How should we look at FY 2026, and how do you see it in dynamic?
I have already mentioned that we will be in a better position in FY 2026 because whatever the things which went wrong for a company, it was more related to UP and UP projects. If you see the total revenue and the total other projects, we have already done what we have been claiming or what we have been given guideline for other projects. But the only thing which went wrong is for the UP, and that is the reason that we were not able to make up. If you see the total expense which we made throughout the year in UP was about in the tune of INR 60 crores. If we put it together into the EBITDA, it will be in the same margin to the last year of FY 2024. Going from here, now we are not having that much pressure of government projects.
We are now dealing with most of the projects of Adani Group, where we are only focusing on the construction part. So I personally see that we will be in a better position to execute the project because now we are solely dependent on the management of the Adani Group, who also wish that their project should move on a fast track without any hindrance.
Thanks. Got you. Next up, what I want to understand was regarding the UP projects. So for the entire year of FY 2025, the EBITDA margin pressure was majorly due to UP projects as you mentioned. Now, going forward, let us say a couple of more quarters, do you still feel some pressure coming from these projects? Are we not in a position to just take it once and for all, take all the pain in one go and just get done with these projects? Is that something which is not happening?
See, it is actually the major projects or the greenfield projects of the medical college and hospitals were over and handed over since last six to nine months. It is more about the renovation of the existing hospital, which was a part of this contract. Getting these hospitals work on time from the government is making these things delayed, both from our side and their side. Whatever things are now, I personally see that most of the things are only two medical colleges that is now going on. Probably we will be in a better position from here on, but every now and then, I say last quarter also I was saying about INR 5 crore, but I ended up with INR 9 crore. Probably, we still feel that in the next quarter also, we should be in a better position not to spending too much on that side.
It is now almost over as far as UP projects is concerned.
Sure, sir. Helpful. Sir, last question is regarding the working capital days. If I look at the trend for the last few years, we have been in the range of 30-35 days, but this time around in FY 2025, the number has come to around 65 days. It looks like the receivables and majorly the inventory has been slightly higher in FY 2024 as well as FY 2025 if I look at compared to the history. What is driving both these numbers, if you can just give some understanding there?
Basically, this receivables if you see, compared to last year, it has increased. It was INR 335 crore, whereas this time it is more than INR 500 crore.
The government
Yeah. This is mainly from the government projects and even some of the UP projects payment is also outstanding and other government projects are there. SDB is also included, whereas last year it was not there in receivables. Because of that receivable has increased.
Regarding inventory, ma'am?
Inventory, I think it is as par. Last year also it was around INR 300 crore. This year also, there is not much increase.
Just wanted to understand, is there any Precast element involved in this inventory? Just because if I look at for FY 2024 and 2025, the inventory number has inched up slightly. Is there any Precast element involved there?
No. See, regarding if you see, I have mentioned the bifurcation. Around 21 crore of finished goods is there in inventory amount. That pertains to the Precast finished goods.
Perfect. And last one again on receivables. Out of the total receivables that are outstanding on our books right now, are there any slow-moving receivables we are understanding? And if there is, can you quantify?
See, if we consider slow-moving, that will be Pandharpur out of which we have made, that is INR 17 crore, and we have already provided for INR 13 crore out of it. And we have SDB receivables, so that is INR 90 crore. But actually that will be due by this October 2025, as per the agreement. Yeah, first installment is due, but that will be receivable. We are following up for that, and mostly by October 2025, we will be receiving it.
Okay. Thank you, ma'am—
And—
—for your answers. Yeah.
Yeah. We have INR 40 crore receivables from UP also that is included in receivables.
Perfect. Thank you. Thank you for your answers. Wish you all the best.
Thank you very much. Participants who would wish to ask a question may press star and one at this time. The next question is from the line of Vaibhav Shah from JM Financial Limited. Please go ahead.
On the receivables part, you mentioned that SDB and UP are INR 90 crores and INR 40 crores. You mentioned Pandharpur, right? I missed the number for Pandharpur.
Yeah. That is INR 17 crore, INR 17.
INR 17
Yeah.
Which are others?
Yeah, we have a receivable of INR 98 crore from Ahmedabad Municipal Corporation, that is Naranpura Sports Complex .
Is that slow-moving?
Not slow-moving, but we have our last two months invoice is still pending. Three months invoice.
Okay.
That will be—
Thank you.
That will be processed.
By when can we expect some normalization in terms of working capital?
More or less, if we exclude this SDB and other slow-moving items, it will be like INR 450 or so. It will end up at around INR 400 crore. That should be the normal receivables at this level of turnover.
INR 400 crore should be numbered by March 2026?
Yes.
Okay. For the SDB receivable of INR 90 crore, the entire amount is due in October?
Yeah. By October 2025, they should be paying us as per the agreement entered.
Okay. Secondly, on the guidance front, previously we had mentioned that we are targeting a revenue of INR 4,000 crores for FY 2026. Where are we on that front?
I just said that it will be in the range of beyond INR 3,000 crores, but after this, once this first quarter is over and overall projects of Adani Group is streamlined, because it is at the stage of diaphragm or excavation stage, and we are also heading towards monsoon. We will be in a better position to give you clear guidelines after first quarter.
It should be anywhere between INR 3,000-INR 4,000.
Can be.
Okay. Anything on the margin side?
Margin will be stabilized to the extent of whatever I have been saying since long, that it will be in the range of 8%-9%.
Earlier we had said 9%-10%, we are again lowering the guidance?
What did you say?
Earlier we targeted for 9%-10% margins. We are lowering it to 8%-9%?
Looking to the situation of the project and the way we have been able to perform in last one year, we are just keeping ourselves a little bit safer on it and giving you the margin guideline.
Okay. Lastly, on the CapEx side, what will be your CapEx for FY 2026?
I think there is no exact projection about CapEx, but as I have always said that it will be in the range of 3%-4% of the revenue, and that is what we have done in this year also. So probably it will be the same range or maybe little more than 4%, because most of the Adani projects are on a large volume, so there can be little more CapEx, but cannot be more than 5% maximum.
What will be your order inflow guidance for FY 2026?
Order inflow will be same in the range of INR 4,000 crore-INR 5,000 crore.
Okay. Thank you. Those are my questions.
Thank you very much. The next question is from the line of Prachi Kadam from Dolat Capital. Please go ahead.
Hi, sir. Thank you for the opportunity. Sir, I just wanted to ask, of this INR 4,000 crore-INR 5,000 crore of order inflow that we're looking for in FY 2026, how much would be from the Adani Group?
I think probably maximum will be from Adani. It will be in the range of 80%-90% from Adani Group only.
80%-90% from Adani Group only.
Yeah.
Okay, sir. What would be the adjusted margin for Q4 2025? I think for FY 2025, you had mentioned the adjusted margin of around 9%. What will be for Q4?
Yeah. If we look at the expenses we have booked for this Q4, which are of not routine nature. One is INR 8 crore of this PBG invoked, and we have provided for margin, this ECL provision also, that is INR 2 crore. That is there. Further, we had written off certain assets, which is a process of the whole year. More or less around INR 20 crore, we can say, we have incurred additional expenditure. On an average, if this EBITDA is INR 30 crore, which will be around INR 50 crore, if we exclude the effects of these expenses. It is in the range of last year's EBITDA margin.
Okay, ma'am. That's helpful.
Okay.
Thank you.
Thank you very much. Participants who wish to ask a question may press star and one at this time. The next question is from the line of Deval Shah from RBSA Investment Managers. Please go ahead.
Hello.
Yeah.
Yes, sir. Please go ahead.
My question pertains to the recent personal changes. We have observed that there is simultaneous departure of several long-standing key management personnel. Can you please elaborate on the reason behind this, and what measures are we taking to ensure that these do not have any material impact on our project commitments and the timely completion? Are we seeing the similar kind of attrition at the mid-level as well? Just want your thoughts on this, sir.
The release of these two people who have been associated with my organization since last 15 years, it was more voluntary, because after this agreement with Adani Group, they were feeling little bit pressure of the order book and maybe on the execution part. Since last one year, they have seen that pressure in terms of getting the labor on time and everything. So it was their personal thought to leave the company as a workload. Nothing to impact on the company at all because most of the people are still on track, and if you have seen, since they have decided to leave in January, and since January till now, we have been performing at the same pace without their presence.
Okay. Thank you. My second question pertains to Adani Group only. We understand that probably from the order coming from Adani Group will be more of a construction rather than the EPC. Is my understanding correct, sir?
No, it is more item rate contract. It will not be an EPC contract, but most of the contract type will be like EPC, where we will be doing each and everything. Some of the portions, the design will be coming from their side. But some of the projects we are doing with design, but civil, MEP, and facade and finishing.
Okay. Regarding the recent announcement from the Adani Group that they are also planning to come out with the township in Navi Mumbai on 1,200 acres land. Just to get the sense around it, sir, are we also preferable in the Mumbai region for the similar opportunities? Just want your thought on that.
Yes, we have already initiated projects in Dharavi, and we are also part of the airport in MIAL. At the terminal T1, we already initiated one small building of INR 50 crore, and we are going to start with the MIAL office also, and two projects of Dharavi also. So it depends on my availability and my strength, how we are able to prove ourselves in next one and a half year. There will be more opportunities to PSU always from the group side. Otherwise, there are always going to be that if their order book or their expansions are more, they will go for different contractor also. It all depends on my capacity to execute the work contract.
Sir, thank you so much, and all the best.
Thank you very much. The next question is from the line of Aaditya Jaiswal from SMIFS Limited. Please go ahead. Mr. Aaditya, please go ahead. Mr. Aaditya, please go ahead with your question.
Since the participant is not responding, we will move on to the next question.
The next question is from the line of Navid Virani from Bastion Research. Please go ahead.
Yeah, hi. Thank you for the follow-up. I have a few more questions. Sir, can you give an understanding of the current bid book and what does it comprise of?
You mean to say what is it comprised of? You mean to say in terms of type of work or in terms of zone or what do you wish to know?
No, sir. Every time we give an understanding of what is the bid book amount and what are the major projects which form the part of that bid book. That is something which I wanted to know.
I will give you a brief. The residential project at Ahmedabad is INR 110 crore. Temple development is INR 800 crore. Non-Adani dairy development work is INR 1,200 crore, Adani Group. Then Riverfront development work of INR 400 crore. The education project at Ahmedabad, INR 350 crore. Corporate house at Shantigram, INR 480 crore. Residential colony at Mundra, INR 1,250 crore. Township at Mundra, INR 2,300 crore. Museum at Ahmedabad, INR 100 crore. And imperial work for industrial plant at Sanand, INR 120 crore. So it is about INR 7,100 crores. This is big ticket.
This is the outstanding bid book.
No, I am saying bid pipeline item. You asked for the outstanding order book.
I asked for bid book.
Oh, sorry. We have an outstanding order book list.
Yeah. It is already there. My suggestion is already there in the presentation.
No, ma'am, I wanted to know the outstanding bid book, not the order book.
That is what sir has explained, means it is a bid pipeline only. Okay.
Okay, perfect. Next one. Sir, I think last call you mentioned that we are looking at projects worth around INR 10,000 crore from Adani Group itself over the next two years. Are we on track to achieve that?
It is all about the execution and the performance, and how the project design and the ground-level work goes on. As and when the projects are coming up, we are discussing in general on a larger order book. But as and when the projects are materialized one by other, it is being converted into orders.
Sure. That is helpful. And sir, lastly, on the Dharoi work you mentioned. Are we actively participating, have we started participating in Dharoi with Adani already?
No. We have already started little mobilization at Dharavi. One of the projects in MIHAN. The land is available by Adani Group, where we are going to construct 5,200 houses. There is no development exactly on Dharavi land as of now. It will be in the outskirts of the Dharavi, where the people will be shifted later on. There are two projects already under discussion, which is related to Dharavi development.
Okay. This is a project where the existing population will be shifted, and then the construction will start.
Yeah, exactly.
Okay. Thank you so much.
Thank you very much. The next question is from the line of Vaibhav Shah from JM Financial Limited. Please go ahead.
Sir, out of total order book, what is the share of fixed price contracts?
What is the share of?
Fixed price contracts.
Fixed price contract now. I told you that let's see which are the fixed price contract, we come back to you.
Okay.
Because some of the projects are item rate, we have not prepared that list of which are the outstanding order, which are fixed pricing and which item rate. I have to check.
Okay. Secondly, of the bid pipeline of INR 7,100 crores, what would be Adani's share?
I think it is about 50%, 60% is Adani.
Okay. And sir, lastly, on the Badaun project, we wrote off the INR 8 crores of BG in this quarter during the P&L. What other items are still outstanding that can be written off in future and what is the status right now in the courts?
Yeah, sure. I will brief about the outstanding from Badaun project. This INR 8 crore was a performance bank guarantee, which has been taken, and so that we have excess cost. Now on balance sheet, there is INR 6 crore receivable from Badaun project. So INR 1.81 crore is against retention and the INR 4 crore is against the mobilization advance they have excess recovered. They have recovered with mobilization bank guarantees also, which already they recovered from our RA Bill. That is still we are carrying on our books because it is receivable by us. Whereas the retention money of INR 1.87, that we have already provided for. So we are showing on the receivable similar amount of provision is done in ECL, accepted credit loss.
So incrementally, INR 6 crore loss can come from that project right now?
No, INR 4 crore only. If suppose that excess mobilization we cannot recover, that will be INR 4 crore.
Okay. And ma'am, what is the status of the project? Will it go forward or how is it in the courts right now, the status?
Project is totally closed. They may go for re-tendering as they have already terminated our part. They will be going for re-tendering, but yes, the project is status quo.
Okay. And sir, any other projects where similar nature or some issues are there, or we can see some kind of delayed receivables or write-offs, anything, apart from these two projects?
I would pray God that they should not occur in future also. Actually, we are not able to visualize such type of situation. Sometimes things go on a different line because of different situation. But it was not expected and neither I expect any of that project should go in future.
And lastly, on the margin side, [inaudible], you again reduced the guidance. Is there any upside risk on the margins for over 8%-9%?
It is not about reduction. It is more about the performance and the availability of labor and the crisis through which the construction industry is going on, since last one and a half, two years, or maybe next one year. So just I am making myself a little bit safe in terms of percentage by 1%. Otherwise, we already given you 9%-10%. Now I am saying it to 9%.
Okay. Thank you, sir. Those are my questions.
Thank you very much. Before we take the next question, we would like to remind participants who wish to ask a question may press star and one at this time. The next question is from the line of Sanjay Kohli from Gold Stone Capital. Please go ahead.
Good afternoon. Thank you. Prahaladbhai, firstly, first question is on the coalition now with the Adani Group. Are they fairly hands-off in the management structure and letting you do things the way you always have, or have there been some significant changes?
The whole coalition has been done on the baseline that we will be the only person who can understand execution and acquisition pace and how to manage a construction company. The group doesn't want to enter into execution part at all. It will be the financial part. They were there. They would like to help us so that our cash flow is maintained and the order book is maintained, and we are better in position to execute at a faster pace. Otherwise, any interference from their side on the execution side today is also zero, and for next five years, they've agreed that they do not want to enter into everything management as far as execution is concerned.
Right. They want to stay away from that. In the presentation, one of the slides, the eight-year CAGR has been mentioned for the revenue, EBITDA, and then PAT. It goes from 25%, 13%, and down to rock bottom, under 4%. In the next phase of our journey, will this somewhat turn around and reverse where profitability starts going up? Are we adding, for instance, in the immediate future, some new skills like bridge building or road building? Will we see that in the company so that this profitability goes up?
I think this is something which is, I don't know how you have that perception that bridge building and road building have a better margins. As far as company's profile and the company's past is concerned, we are never going to go into any infrastructure projects. Neither we have that expertise also. As far as the margin thing is concerned, where you I think started at 25%, we have never committed for 25%. We had a profit of 16% when there was no GST, it was service tax, when most of the materials were supplied free of cost. The profit was on the overall project side, and the cement is not included. The margins were around 16%. Later on, it stabilized at 11%-12% since last three years.
This last year only, we had a bad impact of this 4% just because of the expenses, about INR 60 crore. If you seriously add to INR 170 crore, INR 60, it will be in the same range of 9% what we have been doing last year also.
Okay. I am coming from the space, from a metro space, where one has witnessed a resurgence in the real estate over here. Standalone developers here in cities like Delhi, the kind of profitability they are getting. We are not a development company, but—
Yeah
—will be part of. I mean, it is a hugely profitable area to consider getting into. Because at
No, I think—
—CAGR of 4% over eight years is, this has to improve.
CAGR of 4%, now you say.
See, that has been mainly affected due to the profitability of this year, also even second portion of last year also. This may improve since the UP projects are already concluded. So within this current financial year also, it will be on a different stage. This CAGR, maybe you can say it's not as per our expectation.
Okay. Thank you.
Thank you for the opportunity.
Thank you very much. The next question is from the line of Aaditya Jaiswal from SMIFS Limited. Please go ahead.
Thank you for the opportunity, sir. Just wanted to know that from this total order book of INR 7,000 crore, what amount of the orders that will be converted in FY 2026, and for the revenue side, how much amount will be coming from the new orders?
Can you repeat the question, please?
Sir, from the INR 7,000 crore order book that you have, how much revenue that you want to convert from this INR 7,000 crore order book for FY 2026, and how much revenue will be coming from the new orders for FY 2026?
Yeah. Out of this INR 7,000 crore, I think we will be in a position to get about 30%-40% at least in this year. The rest of the revenues, which are going to come in the next whole year order book, that will be in the range of INR 400 crore-INR 500 crore. Usually, projects coming after first quarter, they do not get converted into revenue till the next quarter. I think next year. So it will be very less revenue from the new orders, and mostly it will be from the existing order book, which we are expecting.
Sir, I can confirm that the latest two orders that you have got, one is from Medicity Research Center, and second is a guest house. Can you throw some light on these two orders?
Sorry, can you please repeat?
Sir, in the PPT that you have mentioned, you have received two new orders. One is for Medicity Research Center.
Your voice is very low, sir. Your voice is very low. We are not able to understand.
Hello. Hello.
Hello.
Yeah. Sir, for the recent two orders that you got, one for Medicity Research Center and the second one is guest house at Shantigram. Can you throw some light on these two orders?
The Medicity at Ahmedabad is the Adani Group coming with the two medical hospitals. One is in Ahmedabad and one is Mumbai. We have got the order for Ahmedabad Medical College and Medical Hospital. The guest house work, which I have said, that is also a group leadership building which requires people to stay there. That's the guest house for the leadership course, which is in Shantigram.
Sir, any timelines that you are expecting to complete these two orders?
I think both the orders are having a timeline of 18 months.
Okay. That's it. Thank you.
Thank you very much. As there are no further questions from the participants, I now hand the conference over to P.S. Patel sir for closing comments.
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