Ladies and gentlemen, good day and welcome to the PSP Projects Limited Q3 FY 2025 earnings conference call. 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 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 Mr. Kenan Patel. Thank you, and over to you, sir.
Thank you. Good evening, everyone. I am pleased to welcome you all to the PSP Projects Limited earnings conference call to discuss the Q3 FY 2025 and 9M and FY 2025 financial results. Please note a copy of the disclosure and the investor presentation is available on the investor section of our website as well as on the stock exchange. Anything said on this call which reflects the outlook for the future or which could be construed as a forward-looking statement must be reviewed in conjunction with the risks 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, Kannan. Good evening, everyone, and warm welcome to the earnings conference call of PSP Projects Limited to discuss unaudited financial results for the third quarter and 9 months ended on December 31, 2024. We concluded the board meeting in the morning. First, let me share the financial numbers for the quarter and 9 months. During quarter 3 FY 2025, the revenue declined year-on-year by 11% and increased quarter-to-quarter by 8% as on 9 months FY 2025. Company registered a revenue of INR 1,813 crore. The revenue achieved is similar to 9 months FY 2024 levels. FY 2025 has been a U-form year for the company in terms of performance.
As mentioned during the last quarter, the sub-daily performance during this year is largely because certain projects such as Mumbai Building at GIFT City, Women and Biotechnology Science Gallery, EDRC ETC walls were awarded during quarter 4 FY 2024 are progressing not as per our planning and expectation. However, during quarter 3 FY 2025, the work has begun at these projects and the revenue has been booked. Profitability has declined during the quarter due to additional expenses booked on U.P. projects. During quarter 3, 9 months FY 2025, the company was awarded 3 projects and 10 projects respectively during the quarter. Three projects awarded are largest residential project at GIFT City for about 6,200 flats at one location, school and hostel projects in Lakshmi, Vishrampura at CEL campus. During 9-month quarter FY 2025, the order inflow was the extent of INR 1,983 crore.
As you are all aware, during this quarter, the company entered into an agreement with Adani Group where Adani Group will acquire up to 30.01% stake from the founder promoter. With this partnership, we foresee a larger visibility in terms of construction orders from Adani portfolio of the company. The current business of the company to continue under the current management regime. The arrangement has taken place with the objectives of long-term growth opportunity for the company. As on nine months FY 2025, the outstanding order book was to the extent of INR 6,217 crore, a year-on-year growth of 44%. Out of the outstanding order book, the private projects comprises of 45%, while government projects comprises of 55%. As on December 31, 2024, there are 58 ongoing projects, 50 term projects are based in Gujarat, 6% in Karnataka, 4% in U.P., and 2% in Lakshadweep.
To date, the company has completed 233 projects in total since the inception, with 82% private projects and the balance is government projects. With regards to litigation, the company has filed a Section 9 petition before the Honorable Commercial Court, Lucknow, in which the company has requested the honorable court to maintain the status quo of the contract terms and grant interim relief against the termination of the contract. The matter is currently sub judice. While the hearing and judgment in the aforesaid matters are pending, the respondents have encased the mobilization bank guarantee amounting to INR 74.6 crore and performance guarantee amounting to INR 8.02 crore. The encasement occurred after the quarter ended on December 31, 2024, but before the publication of these financial results. Some of the projects we use, Surat Municipal Corporation project, we have completed almost all four basements and ground plus four podium.
We have already started with ET 1203. We are at the level of second floor. The whole RCC work will be completed by September this year. At Gati Shakti Vishwavidhyalaya, as the project started in March, actually, and we had a very heavy monsoon in Baroda, and at the same time, there is a water level very high in Baroda. The projects have almost come out of the foundation and all the buildings are going at the basement level. Overall, we see it is 45 days delay from the scheduled timeline of the project. Another project is also on track, and the projects of Himalaya, which is for Coca-Cola, that is also on track. With this, I request Ms. Deepal Ben to continue with the financials.
Thank you, sir. Good afternoon, everyone. The financial performance during the quarter ended December 31, 2024 is as follows. Quarter 3 FY 2025 versus quarter 3 FY 2024. Revenue from operations for the quarter is at INR 1,323 crores versus INR 99 crores, decreased by 10.5% on year-over-year basis. EBITDA for the quarter is at INR 35 crores versus INR 71 crores, decreased by 50.5% on year-over-year basis. EBITDA margin is at 5.67% versus 10.25%.
Net profit for the quarter is at INR 56 crores versus INR 33 crores, reduced by 81% on year-over-year basis. Tax margin is at 1% versus 4.6%. During the quarter under review, company had to incur additional expenses in WAPI projects to the extent of INR 18 crores towards the completion of the remaining execution. Other expense includes assets written off to the extent of INR 1.8 crores and loss booked from JVC JV to the extent of INR 1.5 crores. Android cost has also increased by INR 3 crores compared to previous quarter of current financial year as a result of annual appraisals.
During quarter 3 FY 2025, company has incurred CapEx of INR 16 crores. Gross profit as on December 31, 2024, is INR 591 crores, and net profit INR 350 crores. Would like to mention few of the important balance sheet numbers as of December 31, 2024. Long-term borrowings stood at INR 56 crores, which includes short-term maturity of INR 36 crores. Short-term borrowings INR 237 crores, excluding short-term maturity of INR 36 crores. Net unrealized revenue is INR 586 crores. Retention is INR 163 crores. Mobilization advance stands at INR 267 crores. Inventory amounts to INR 320 crores, which comprises of INR 125 crores of construction material, INR 166 crores of working progress, and INR 21 crores finished goods. Our total sanction credit facility of INR 1,497 crores. Company utilized INR 1,027 crores, including fund-based utilization of INR 182 crores, and INR 470 crores is available for utilization.
As on December 31, 2024, the company had total fixed deposit of INR 220 crores, out of which NRE and EEB are INR 27 crores. EEB worth INR 179 crores are under limited line for credit facility, and EEB worth INR 8 crores are given as a security deposit to clients. Work on hand as on December 31, 2024, is INR 6,417 crores. The detailed bifurcation is available on the uploaded presentation. That concludes my update on financials, and we are now open for Q&A session. Thank you.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask questions may press star and 1 on their touch-tone telephone. If you wish to remove yourself from the question queue, then press star and 2. Participants are requested to use handsets when asking questions. Ladies and gentlemen, we will wait for a moment while the question queue assembles. To ask questions, please press star and 1. The first question is from the line of Jainam Jain from ICICI Securities. Please go ahead.
Thank you for the opportunity. My first question is, what is the order pipeline for the balance Q4 FY 2025 and FY 2026?
See FY 2025, what we have given the guideline was about INR 3,500-INR 4,000. I think we have already seen around close to INR 1,800 and possibly the orders which we are discussing with Adani Group will be in the tune of more than INR 2,000 crores will be signed up till March. That timeline will be maintained in the coming months. For FY 2026, we are in a long discussion with Adani Group on few large projects which we are envisaging for the next one year. That will be again in the range of more than INR 5,000.
Okay, sir. Are we changing any guidance of order inflow, given the fact that in FY 2025, we have received order worth only INR 2,000 crores?
Pardon me?
Hello. Are we looking to change the order inflow guidance for this year? We have initially guided for INR 3,500 crores of order, and right now we have received only INR 2,000 crores of order. Are we confident that we will be achieving the target?
That is what I said. That is what I said, that the orders which we are discussing with the Adani Group will be declared before March, and that will be in the tune of INR 2,000 crore plus. The orders which we already received, INR 2,000 plus the new INR 2,000 crore orders to come from Adani, that will end up into the total of guideline of INR 4,000, at least we are aiming.
Okay, sir. Sir, what are the major tenders which we are expecting to be floated in the near term, let us say in Q4 or FY 2026, in the first half of FY 2026?
You mean to say out of group or out of Adani Group or you mean in general?
In general, or in which we will be participating.
Presently, we have a big pipeline of about INR 1,800 crores, which is almost all the projects having MPOL. There is a revenue project of INR 400 crores in Ahmedabad. There is a reservation project of private development of INR 350 crores. There is a commercial project of INR 200 crores. Industrial campus development at Gandhinagar, INR 40 crores. There is a commercial project at Guj INR 225 crores, and government project of skill development at Kavi Nagar, INR 220 crores. So in totality, presently 529 out of 700 could be billed.
Okay, sir. That answers the question. Thank you and all the best.
Thank you.
Thank you. Next question is from Rushabh from RBSA Investment Manager. Please go ahead.
Hi, sir. Just firstly, one clarification on the Adani deal. Just want to understand, since Adani approached us first or we approached them initially, how did the conversations play out? If you could just share some light here.
See, we have approached Adani. Since we were already working with them since last three years. We looked into their CapEx and looked into the projects which they have worked out for next five to seven years. They approached us for this partnership.
Okay. Second is, you mentioned that you are in talks with Adani Group for around INR 2,000 crore orders, which will get materialized before March. So we will be maintaining a double-digit margin in these orders?
For overall, you are talking about the overall margin, basically?
No, I am asking about the Adani orders specifically. You mentioned about Adani orders INR 2,000 crore.
Yeah, that will be in the same guideline what we have been telling at present.
No, I am strong. So the margin should be double digit in these orders also, Adani orders. That is what I am just confirming from your side.
Yeah. The trend is like in double digit.
Okay. Thank you.
Thank you. Next question is from Navid Virani, from Basin Research. Please go ahead.
Hello. Hi, sir. Thank you for the opportunity. Am I audible? Hello.
Can you speak a little louder, please?
Better now?
Yeah.
Okay. So sir, I had a broader question first. If I look at the past more than a year, the business has been slightly muted due to multiple reasons. It can be because of project overruns or cases, et cetera. I am sure you must have seen this kind of slowdown in the past as well, because you have a good experience in the industry. Sir, I just wanted to understand slightly from a long-term point of view that, A, from a revenue growth point of view and B, from a margin point of view, where do we go from here, sir? Can you just give us a sense?
See, there are two ways to understand it. After this partnership with Adani Group, they are trying to take in 30% in most of the orders coming from their side. I think revenue growth should not be a question as far as PSP is concerned, as Adani is already having and we are already in talk for projects of more than INR 15,000 crore plus. Whenever that project splits during next one year, that will be a part of the revenue growth in next two to three years. As far as the second question, which is related to the risk parameters, as we have faced in our previous, in our past. One was at Surat, which was a private organization. Second was at UP, that was a project overrun, and third was at Kashi World, where there was some of the money still yet to come.
So those types of things, as we are more focused toward the group which are already a partner in the company, that risk is also now eliminated as far as PSP is concerned.
Understood. Sir, on the UP project, all the impact is now done and dusted, or do we still foresee some impact?
See last quarter also, we were expecting this is almost done and dusted. But the problem is because when you are entering into the final completion of the project, small problem between the line feeding and all the projects are having some renovation in the existing hospital. Those renovations were not calculated perfectly at the government level also, at our level also. So that has put INR 10 crore plus in this quarter. But probably from now onward, I do not see any. But let me at this moment consider that can be zero. So it can be in the range of INR 2 crore-INR 3 crore, maybe maximum INR 5 crore.
Okay. That is it from my side. Thank you and all the best, sir.
Thank you. Next question is from Vaibhav Shah from JM Financial Limited. Please go ahead.
Sir, want to clear revenue guidance for FY 2025 and 2026.
The projects which we are envisaging for the group and the projects which we have already in hand, if we consider next year's revenue potential of what, INR 3,000 crore from the group, existing order book and the new order book from Adani, probably we should be in the range of INR 2,500 crore plus.
No, I mean revenue. So revenue for 2025 should be around INR 2,600?
Oh, this year you are saying?
Yeah.
This year you are saying?
Yeah, for FY 2025.
Yeah. It will be in the range of, it will be little less because of our ambitions target of INR 2,700-INR 2,800. So it will be in the range of INR 2,600.
Next year, for 2026 you are saying, what is our 2026 revenue guidance for FY 2026?
It should be more than INR 4,000 crore.
We are anticipating a growth of 50% in FY 2026.
That is just because of the large order book to come from Adani, and most of the projects starting somewhere in the month of April and May till June. That is the reason I am saying even if we target for INR 1,500 crore of revenue to come from Adani Group next year, I think we can have that INR 3,000 plus INR 1,500, or INR 2,500 plus INR 1,500. It will be nearly INR 2,500.
Those are very short gestation orders that we are expecting from Adani. If we get around INR 2,000 crores orders, 58 revenue would come in—
Yeah.
—in FY 2026?
No, we are expecting orders which are under execution will be in the range of more than INR 10,000 crores. These orders can continue till December 2025. But the revenue which we are expecting out of these orders, which we concluded till December 2025, we are expecting about INR 1,500 crore revenue from next year.
Okay. In fact, for this quarter also, if we remove the impact of UP, margins are around 8.6%. As I remove that INR 18 crore impact, what would be a sustainable margin for Q4 and FY 2026 and FY 2027?
See, as Arjun now been telling that as we go on increasing our revenue size and the project sizes are going up, then what the EBITDA margin level what we have now, I mean, it will be in the range of 9%-10%. Probably next quarter also, we should expect it should be in just there range, provided we don't have much more impact from UP.
For FY 2026, FY 2027 also, it will be in the 9%-10% range?
Yeah.
Okay. Sir, lastly, any update on PAC Mahila UP project? They have enhanced performance guarantee and bank guarantee.
That I have already discussed in my speech. We had already filed a case at Section 9, Insolvency and Bankruptcy Code, and we have asked for status quo, and we do not terminate the contract. They have already enhanced the bank guarantee. But if they have to maintain the status quo, the bank guarantee will be released back to us, and they can initiate to start the project again.
Okay. Sir, lastly, our tax rate for the quarter was 40%, so any particular reason why it is so high?
Yeah. So basically, as I have already mentioned in my speech, that we have written off certain assets which are not income tax deductible, so that amounts to around INR 2 crore. And we have also accounted for GDCL loss of INR 1.5 crore. So more or less around INR 4 crore expenses are such where we are not getting any tax deductions. So this is the tax that has happened. And at the same time, on additions of new assets, the depreciation rate is lower. The depreciation rate difference is there between income tax and company asset.
But going forward, the rate should be 25% on an annual basis?
Yeah, it should be 25%-26%.
Okay.
On annual basis, it should be that, but if the written-off, write-off of assets we cannot deduct here. At the same time, their CSR is also such expense which will not be eligible for income tax deduction. So that also will be income tax.
Apart from INR 18 crore write-off that cost overrun we mentioned for UP, is there any other one-off in the numbers?
Sorry?
Apart from INR 18 crore—
Repeat the question.
—cost overrun we mentioned for the UP project, is there any other cost overrun?
Yeah.
Any other one-off in the numbers?
No. Only this additional expense we have to incur, for which we do not book any revenue for in this quarter. That impacted directly on the profit.
Okay. Thank you. I will come back in loop.
Thank you. Before we take the next question, a reminder to participants that you may press Star and One to join the question queue. Next question is from Sarvesh Gupta from Maximal Capital. Please go ahead.
Good afternoon, sir. Just for clarification, from the original contracts that you had with various UP bodies, how much of the work is pending to be done as per the original contract? I am asking this because in case the courts decide to enforce that the remaining part of the work has to be finished, I would want to know how much of the work is still pending.
I think that project was INR 260 crores.
Yeah. So actually, 35% we completed, and the remaining was pending.
How much is that, sir, in value terms?
340 with GST. It is 260 minus almost 60 crores of work has been done. It will be in the range of 190 crores.
Okay. Around 200 crores is pending. Okay.
Yeah.
Secondly is that apart from the bank guarantee, how much of our receivables are stuck as of now? How much money is stuck in UP with various government authorities as of now, which we have not realized, but we have booked already?
There are two bio-digestion UP projects. Seven UP projects which we only completed and only one indoor of hospital that is coming, that's a different one, and Vadali is a different one. If we talk about Vadali first, we do not have any receivable outstanding. Rather, we have mobilization advance of INR 40 and that amounts around INR 20 crore, which includes mobilization advance as well as GST. That they have encashed here through bank guarantee. There are no other receivables from their side because they have already paid the rates which we have executed. If we talk about the seven UP projects, INR 40 crore is the GST receivable and around INR 65 crore is in the unbilled. Since that INR 40 crore they haven't paid us, we haven't billed further because it will unnecessarily be a burden of GST.
Okay. Understood. Going forward till this matter is decided by the court, you will not be doing any further work in the UP. For some time it would not occur in your P&L, but as and when some settlement is decided, you will have to do the remaining 200 odd crore of work, right?
Yeah, either if it is terminated totally and it goes against us, then we'll not be operating on any of the things. They have already encashed the bank guarantee. We have to just wait at the fact they can go for re-tendering. Meaning if the court decides that the contractor should continue on the project, then we have to continue on the project accordingly.
Okay. Just a clarification. What I understood, because your voice was not very clear, but you are saying that from Q4 onwards, you should be hitting 10% EBITDA margin, which was our usual sort of current rate. In FY 2026, when you are expecting to get around INR 1,500 crore of Adani work. Since that will come at similar 10% margin, so overall in FY 2026 also, our guidance is 10% EBITDA margin with INR 4,000 crore revenue. Is that right?
Right.
Okay. Finally, on the open offer, sir, where are we right now? How much more time will it take for the open offer to conclude?
There are a few questions from SEBI, queries from SEBI, which we are trying to resolve. Probably that has been delayed by more than 20, 25 days based on our actual schedule of open offer, but probably before March it should get concluded.
Okay. Thank you, sir, and all the best.
Thank you.
Participants who wish to ask questions, please press star and one on your touchtone telephone. Ladies and gentlemen, to ask questions, please press star and one. Next question is from Vaibhav Shah, from JM Financial. Please go ahead.
Thanks for the follow. Sir, what is our gross debt number? I missed the number. Short-term plus long-term.
Yeah, I will just check. Short-term debt is INR 237 crore. And long-term borrowing is INR 50 crore.
It is largely flattish on a QOQ level, around INR 280 crore-INR 290 crore.
Yeah, right. 250. Yeah.
And any update on PSP? So when are we expecting to receive the balance amount?
The second tranche of the money which was agreed to will be released in February. We have already wrote them the letter for the second installment. No confirmation yet we have received from them because we have wrote the letter today, day only. I will start following from next week.
What is the amount we expect in February?
They have paid INR 35 crore, including GST. That is INR 26 crore gross profit plus GST. Now remaining amount is INR 90 crore.
That means that we gave installment of INR 26 crore.
Sir, sound is not clear. Out of INR 90 crore-
This, again, the second installment will be also up in the range of INR 26 crore plus GST.
Okay. After that, the remainder amount will be INR 90 crores.
No. Then after this second tranche will be received in this month, then it will be only INR 50 CR. 50.
That would come by October.
No, no. That again, I think there is a sixth and fifth. There is one in February, and in April, then in October. May and October. Last one will be in October.
Okay. In May and October.
It is a four installment of INR 36 crore.
Okay. Lastly on FY 2027, after getting a good base reset of around INR 4,500 crore revenue in 2026, we expect a strong growth from over there as well, or can we some consolidation in terms of revenue?
You meant to say from that year or next to next year?
Next to next year.
What is going to happen, if we consider the Adani Group order book to grow from there and into the- It has also gone double, and it will be able to maintain our growth.
Okay, sir. Lastly—
Their CapEx is going to go around for next five to six years.
Okay. Sir, for FY 2025, we are targeting INR 3,500 crore to INR 4,000 crore of inflows. What is the number for FY 2026?
That is why I would say most of the projects which we are discussing in the range of INR 10,000 crore, and the orders which we started with is INR 2,500 crore before March end, next year also we should be in the range of more than INR 5,000 crore orders to be set for next year.
For the entire year, FY 2026, total order inflows will be around INR 5,000 crore.
Yeah.
Okay. Thank you, sir.
Thank you. Participants who wish to ask questions, please press star and one. Next question is from Shreyans Mehta from Equirus. Please go ahead.
Hi. Sir, your voice is not at all audible. Just for clarification, this year we are saying the order inflow would be closer to INR 3,500 to INR 4,000, right? FY 2025.
This year, yes, you are right. INR 3,500 to INR 4,000.
The revenue would be closer to INR 2,800 crores?
It will be reduced to INR 2,600.
INR 2,600. Sure. In terms of next year, we are guiding for closer to 50% growth, which is INR 4,000 crores of revenue.
Yeah.
INR 3,500 to INR 4,000 odd crores for inflows.
Minimum INR 5,000 I said lastly. INR 5,000 crores in order inflow.
Sure. Lastly, on CapEx number, how much have we done till date, and what would be the guidance for fourth quarter next year?
Yeah. This quarter we expanded around INR 60 crore, and in totality our gross block is INR 591 crore.
Okay. How much for next year?
Next block is three. Next year, around 3%-4% of our expected turnover will be spending on the CapEx.
Got it. Lastly, the EBITDA margin guidance for next year is 10%, or 9%-10%?
9%-10%.
Got it. Thank you, and all the best, sir.
Thank you.
Thank you. Participants who wish to ask questions, please press star and one. Next question is from Shravan Shah from Dolat Capital. Please go ahead.
Thank you, sir. Sorry, sir. Actually, I joined late. Pardon me if I am repeating anything. Sir, if you can help, I just what you spoke that the INR 4,000 crore revenue that we are looking at in FY 2026, which is close to a 60% kind of a growth. This growth will be coming from where? If you can help us, it would be great.
See, now going further, the presently outstanding order book after vajrani orders took down, it is INR 2,500 crore as of now. If you consider INR 2,500 crore minimum revenue to come from our own order book, and next year their order book will be in their GPS order book in addition of more than INR 2,000 crore. Further for next year, it will be in the range of INR 5,000 crore. If you consider INR 7,000 crore orders remaining till FY 2027, then there will be a revenue of minimum we expect of about INR 1,500 crore coming from their book. Adding on INR 2,500 crore plus INR 1,500 crore will be in the range of INR 4,000 crore. Next.
Okay. Did we share the inventory details and payable numbers as on December?
Yeah. The payable numbers we have shared. That will be in the range of around INR 480 crore. Inventory we have already shared. I will repeat it. Inventory is INR 312 crore, which includes INR 125 crore of construction material and INR 166 crore of work in progress, and INR 21 crore for finished goods.
Yeah. Trade receivable and payable, ma'am?
Yeah. Trade receivable is INR 565 crore.
Sorry, 500?
65cr.
INR 565 crore. And trade payable is?
Yes. 450.
450. Okay. Thank you, ma'am. All the best.
Thank you. Next question is from Vishal Beriwal from Antique Stock Broking. Please go ahead.
Yes, sir. Thanks for the opportunity. I think one thing probably I would like to say that the audio, usually the call that we do, I know we put a lot of efforts and we try to explain a lot of things, but somehow I believe quarter calls should guide you. The audio is not at all clear. This is maybe have been consistent in previous calls also. That is why there is a lot of repetition and asking same thing again from participation. So I think just thought to share that. Maybe one thing from my side, sir, when we say that we will be doing almost INR 2,600 crore revenue, which implies quarter 4 almost INR 780 crore, INR 800 crore kind of revenue that we can deliver. Which is almost 20% kind of growth. So, almost one and a half month is past.
Do you think that we are on track for that or any surprises on that front?
No, as of now, we do not see any surprises because all the projects are now in full place. Previous quarter, we were making less revenue from the projects we started late in government tender GBRC and museum at Science City. Now all the projects are on track, and the monsoons have also gone. So this quarter should be better than the last one.
Okay. In terms of big pipeline, apart from X of Adani, what is the big pipeline that we have as of now?
I already said it is INR 1,800 crore, which is most of the projects are from Ahmedabad and Gandhinagar.
They are from where, sir?
Ahmedabad and Gandhinagar. In Gujarat only.
In Gujarat. Okay. Got it. I think that's probably from my side. Sure, sir. Thank you so much.
Thank you.
Thank you. Next question is from Sanjay Kohli from Goldstone Capital. Please go ahead.
Good afternoon, and thank you for the opportunity. Rabai, I wanted to know what are the new capabilities that we are adding in the company? Which areas we haven't touched before, that we are adding highly skilled personnel in-house, so that we are well-positioned for the future.
See, there are several changes. If I say after addition of this order book from Adani in discussion with the Adani Group. Now our precast part will be doing the maximum as far as Ahmedabad is concerned. So we are already discussing on three projects being converted into precast. When we talk about Ahmedabad and Mumbai Airport, and also we are exploring so many other types of sheltering methodology, which can reduce our labor by minimum 50%. And we should be in position to execute all the projects with minimum numbers of labor. So we are also in discussion with Terry. They have a special type of sheltering bearing. Most of the things are done through cranes and mechanical joints. At the same time, on the reinforcement part also, we are trying to put things on board like we are exploring.
We already have one cutting bending machine at the factory. We may also explore one more cutting bending machine in the middle of the city, at least that can cater to all the projects of Adani and nearby Ahmedabad for our own projects which are near. More and more we are trying to move towards mechanization, and more and more we are moving towards people's training rather than creating, having directly labors from U.P. and Bihar only known for reinforcement and sheltering to try to make them a skilled labor rather than considering that a specialized person can only do sheltering. We will convert those things into a mechanical mode so that things can be done and that can be carried out with local labor with some type of training also.
Are engineers, architects, all basically Indians or are they coming from overseas as well?
No, we have already initiated that part of the recruitment of new staff in the company. Wherein most of the people are coming from different regions that we are exploring Mumbai. People from Mumbai, there are a few appointments we are doing. In Gujarat also, they are coming off of Gujarat. It is more about now training our internal staff with our own culture and run about with our own SOPs, with our own method to execute the project on a fast track, 50 maximum utilization of technology so that the overall benchmark to grow can be maintained.
Rabai, again, this budget is quite a lot of allocation again to CapEx in infra, and I think there is going to be a lot going on in U.P., and you have already made inroads over there. Can we expect much further growth or visibility in the immediate period, given that Jewar is coming up and a lot of work has to be done also in that area. Any visibility that you can give us for the next two or till FY 2026 and FY 2027?
See, as I told you, presently, we are already in talks with Adani Infra partnership with Adani. After selling of the 30% stake, most of the orders which we are going to come from the Adani Group will result in INR 50,000 crore plus of CapEx to be done in next five to six years. So we may not be exploring so much on the project side out of Gujarat. If there is a strategic project or some market project or there is a huge competition, then and then only we will be bidding for projects out of Gujarat. Otherwise, we will be focusing more on our own order book which is above INR 6,500 crore. At the same time, we are expecting more than INR 5,000 crore order book to come up during next three years. So going at INR 15,000 crore PA, sufficient revenue and—
Sorry to interrupt. The audio is really bad. Do allow us to interact with you later on after the conference call also at a later, in a couple of days' time after this. The audio is very. We are only being able to get about 40%-50%, really. Otherwise, it is very garbled.
Mm-hmm. Okay, no problem.
We will be connecting with you again later on, sir.
Yeah.
Thank you.
Yeah. Apparently, I suppose everybody is saying so.
Next question is from Ayush Saboo from Choice Equity Broking. Please go ahead.
[inaudible] a re you hearing us properly?
I can hear you fine, sir.
Then why people are-
Actually, very early on we are not able to hear it at our end.
Then there can be an issue at their level or it is actually issue at our level. Hello?
Hello. Sir, your audio is not clear at all. I am not able to comprehend, sir. It is coming in a very faded manner.
We are able to hear you. Whatever you then ask, let us continue because you are the last two people to talk, so we will continue. You can continue.
Okay, sir. What would be the right way to manage the net working capital cycle going forward for the next two years, considering the increase in the order book from here?
What is? Operator, can you request the operator to conclude the call and with whatever people left, can you connect us directly to mobile phone?
Ladies and gentlemen, thank you for patiently holding your lines. The line for the management is reconnected. Over to you, sir. We will move to the next question. Next question.
Hello?
Yes, sir. I will just move to the next question from Shubham Shelar from IDBI Capital. Go ahead, Mr. Shelar.
Hello. Yeah.
Yeah.
Just one question. Sir, what is the cash balance currently?
Currently, I have already mentioned, CapEx are INR 214 crore. Free cash is around INR 28 crore, INR 27 crore.
Okay. What is the value of net debt?
Debt is INR 237 crore, short-term debt. The long-term debt is INR 56 crore.
Okay. That's it. Thank you. That's it from my side.
Thank you.
Thank you. We'll move to the next question.
Let us put that question as last question.
Sure. We will take the last question from Vinayak Hiremath, who is an individual investor. Please go ahead.
Yes, sir. Good evening. As you know, Adani is constructing a precast plant in Mumbai.
Yeah.
Yeah. Are there any talks with Adani to take the operational part of it?
No. See, after this consideration of partnership with Adani, as far as Gujarat is concerned, our precast plant, we will run and we will operate. When we talk about other precast plant, there is an agency who is going to operate the plant. But as far as the installation part is concerned, there will be agencies like us who will be installing the precast elements once started the plant.
Okay. We won't be operating that plant then.
As and when required, because presently it is not in our discussion to operate that plant. They have the agency and experts because all the precast plant cannot be owned by contractor. So they are making one more company wherein they are putting up this CapEx for production of the precast. Later on, that precast element which is produced, may be given to the contractor to install the RCC and later on make the whole part.
Okay. Sir, one more question. As on today, what is the order book related to Adani Group? Numbers.
See, presently, as I told you, we are in the discussion of more than INR 5,000 crores of projects in hand. Out of this year, I am expecting some INR 2,000 crores plus this year.
Okay. In the present order book, sir, what is the percentage or the number? In the present order book of INR 6,000 crores.
I think in present order book, almost the projects or all the projects are getting concluded. It will not be more than out of the INR 3,000, INR 300 or INR 100.
INR 300, INR 400.
INR 300 crore or INR 400 crore. Maybe it is INR 6,500, it will be INR 300 also. It will be INR 200 plus.
INR 200 plus. Okay. Got it, sir. Thank you.
Thank you, sir.
Thank you very much. That was the last question. I would now like to hand the conference back to Mr. Prahaladbhai S. Patel for any closing comments.
Thank you, sir. Thank you all for joining us on the earning conference call today. Thank you for your support and trusting us. We hope that we have been able to address most of your queries. In case of further queries, you may reach out to our advisor and they will connect with our others offline. Thank you again.
Thank you very much.
Thank you very much. On behalf of PSP Projects Limited, that concludes the conference. Thank you for joining us, ladies and gentlemen. You may now disconnect your lines.