Ladies and gentlemen, good day and welcome to PSP Projects Limited Q1 FY 2024 earnings conference call. This conference call may contain forward-looking statements about the company, which are based on the belief, opinions, and expectations of the company as on the date of this call. The statements are not the guarantees for future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participants' lines will be in a 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 touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Bharanidhar Vijayakumar. Thank you, and over to you.
Yeah. Good afternoon, everyone. Thanks for logging in to the 1Q FY 2024 earnings call of PSP Projects. From the company, we have Mr. P.S. Patel, Chairman, MD, and CEO, and Mrs. Hetal Patel, CFO. We would have initial remarks by the management, followed up with a Q&A session. Over to you, sir.
Thank you. Good evening, everyone. On behalf of management, I am pleased to welcome you all to PSP earnings call to discuss Q1 2024, FY 2024 quarterly financial results. Please note a copy of our all disclosures is available on the investor section of our website, as well as on the stock exchanges. Anything said on this call which reflects our outlook for 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 hand over the call to our MD for his opening remarks. Over to you, sir.
Thank you, Hetal. Good evening, everyone. We welcome you all on the earnings conference call of PSP Projects Limited to discuss the first quarter financial results for the financial year 2024. We did upload the investors presentation with the requisite updates on the stock exchange and website. I believe you may have got a chance to go through the same. Let me begin by sharing a social responsibility that the company engaged during the quarter, which I am proud of. On the World Environment Day, we planted more than 10,000 trees in a single day at a Rutpur village of Tapi district in the state of Gujarat. I take immense pride that our completed project of Surat Diamond Bourse now holds the title of the world's largest office building, bigger than the Pentagon, as featured on CNN.
I would like to express my gratitude that PSP Projects will be an instrumental part of such landmark projects in India. I would take this opportunity to highlight that the company has aligned its corporate vision and mission with the ESG goals to move towards sustainable development. The company has incorporated the ESG steering committee that monitors the impact of company's actions on its impact on environment and society. During that quarter, the company received an award of Best Commercial Projects of Gujarat by Realty+ Excellence Awards for Surat Diamond Bourse Project, which is the class of Surat. Now, I would like to share some of the operational updates. As on June 30, 2023, the outstanding order book was to the tune of INR 5,321 crore at 15% year-on-year growth over quarter 1 FY 2023 order book.
Out of the current order book, the private project, that is institutional, industrial, and residential projects, comprises 46%, while government projects comprises 55%. As on June 30, 2023, there are 48 ongoing projects, of which 81% are based in Gujarat, 19% are based at U.P. In all, the company has completed about 210 projects so far since inception, with 84% private projects and balance were government projects. During the quarter, the company completed five projects. Some of the key projects, which are construction of Manigram High Street in Ahmedabad, Reliance Corporate House in Ahmedabad, construction of Adani International School at Adani Shantigram, construction of one Pristine factory shed and a Pristine corporate house in Behrampura. That is one of the first Pristine projects which bear as a whole.
During the quarter, the company received an order inflow to the tune of INR 758 crore, excluding GST. The order inflow gets grew by 38% year-on-year. The major projects awarded during the quarters are development of tourist premium destination at Dharoi Dam, design build project of Baroda Gujarat Gramin Bank at Vadodara and Surat, two commercial premises in Surat. Let me share the key developments in all eight U.P. projects. During the quarter, the revenue book from all U.P. projects is to the tune of INR 196 crore, and as on date, the revenue book is INR 959 crore out of total all U.P. projects. The project is at the stage where the MEP and the interior works are going on. All the projects are working as per schedule, which we discussed during the last quarter's phone call.
Update on SMC administrative building, yes, the project is also going on a fast track. Once we have completed excavation, and we have already completed diaphragm wall, so there is no disturbance too much because of the monsoon. So rocks are going on, and we have already booked a revenue of about INR 50 crore till now. Oh, sorry. We have already booked a revenue of about INR 90 crore till now. Hatel then will share financial performance of the company in detail. Let me share a brief update with you. During quarter 1 FY 2024, the revenue from operations grew by 48% to INR 510 crore. EBITDA grew by 37% to INR 65 crore. The EBITDA margin for the quarter is at 12.7%.
As I've always mentioned, our margin profile will be in the range of 11%-13%, depending on the stage and execution of the project. The margin improvement is largely supported by advanced stage of works which are doing at UP site. As I have always stated to my stakeholders that there is ample opportunity in projects available considering the government's push towards infrastructure, and now the private companies are also going for capacity expansion post the pandemic.
Historically, considering majority of the order inflow from state of Gujarat, I would like to highlight that in February 2023, Gujarat government, on its budget, has announced up to INR 5 lakh crore to be spent in coming five years for the development of infrastructure facilities across the sectors like ports, roads, railways, hydroelectric projects, development of Delhi-Mumbai industrial corridor, Gujarat International Finance Tec-City, metro rail system, bullet trains, railway redevelopments and urban transportation projects, tourism, slum rehabilitations, hospitals, educations, multi-layer parking, and many more. At the moment PSP Projects is well-placed, as earned the required credential over the years to become one of the preferred contractor and stands eligibility criteria bidding the large and prestigious project. With this, I conclude my remarks, and I would like to hand over the call to Ms. Hetal Patel to take us through the financial details.
Thank you, sir. The financial performance during the quarter ended June 30, 2023, is as below. Quarter 1, FY24 versus Quarter 1, FY23. Revenue from operations for the quarter is at INR 510 crore versus INR 335 crore, which is increased by 38% on YOY basis. EBITDA for the quarter is INR 65 crore versus INR 37 crore, which is higher by 37% on YOY basis. EBITDA margin is at 12.69% versus 13.64%. Net profit for the quarter is at INR 37 crore versus INR 29 crore, higher by 29% on YOY basis. Profit margin is at 7.13% compared to 8.30% on YOY basis. During the quarter, the revenue generated from 7 UP projects put together was INR 196 crore during Q1 2024. Cumulative revenue till June 30, 2023, is INR 915 crore. Would like to mention few of the important balance sheet numbers as on June 30, 2023.
Long-term borrowing stands at INR 97 crore, short-term borrowing INR 185 crore. Gross block as at is INR 431 crore. Net block is INR 245 crore. Addition during the quarter is INR 18 crore. Net unbilled revenue stands at INR 261 crore. Retention non-current is INR 110 crore. Retention current is INR 34 crore. Mobilization advance stands at INR 223 crore. Working capital days are as follows. Debtor days are 81, creditor days are 71, inventory days are 33. Total net working capital days are 43. Out of total credit facility of INR 1,047 crore, utilized limit is of INR 905 crore, out of which INR 120 crore are fund-based utilization and INR 785 crore is non-fund-based utilization. As on June 30, 2023, the company has total fixed deposit of INR 323 crore, out of which lien free deposits are INR 67 crore. At least INR 256 crore are under lien with bank for credit facility.
Work on hand as on June 30 is INR 5,321 crore. Detailed by segregation is available on the uploaded presentation. That concludes the update on financials, and we are now open for the Q&A. Thank you.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question. Ladies and gentlemen, we wait for a moment while the question queue assembles. The first question is from the line of Shravan Shah from Dolat Capital. Please go ahead.
Thank you, and congratulations to the entire team for a robust performance. Sir, my first
Thank you.
Yeah. Sir, my first question is just to trade guidance. So INR 2,600 crore revenue for this year and odd INR 4,000 crore. Are we maintaining the same or are we slightly upgrading the same?
No, we are still maintaining the same.
Okay. Second, in terms of UP projects. Now outstanding order book is INR 576 crore. Out of this, by March, we should be able to complete how much? INR 450 odd crore?
Yeah, it should be in that range only because I am thinking about one or one project may spill over, that is related to two hospitals which are going till March. So probably you are right. INR 450 we consider out of INR 576. It will be in that range only.
For Surat municipal project, previously we were saying, this quarter slightly lower at INR 26 crore revenue because the project is just starting. But broadly, INR 300 crore-INR 400 crore revenue we should be able to do this year, then INR 450 crore-INR 500 crore from FY 2025.
No, it won't be INR 400 crore, but it should be near to INR 300 crore.
Okay, INR 300 crore this year, but from FY 2025 it should be increasing.
Yeah. That will be much higher than this year, because then after the finishing activity will start. So we'll be able to generate more revenue when the whole activity starts. Presently, by next March, I would see that the billing will be going to earn on structure side only.
Okay. Now, sir, in terms of the bid pipeline. Last time we said INR 6,000 odd crore, kind of a bid pipeline. First, what's the total size? Also primarily the couple of projects, if you highlight, would be helpful. Majorly wanted to understand on the Ahmedabad station redevelopment. What's the status, what's the likely in terms of getting the project. Any update on that would be helpful.
Since the bid pipeline, I would say, will be still in that range of about INR 6,000 crore. Yes, probably we are now talking on and discussing on and working on the railway project of Kalupur. At the same time, we may think of bidding for Delhi Airport, Delhi railway station also, because we are now qualified to build the station. Probably that itself becomes more than INR 6,000 crore. Apart from that, if you consider only the Kalupur railway station, there are a few projects which we are already bidding, which is within Gujarat itself. The order pipeline, I think there is a substantial availability of orders, availability of projects which are going to come within next one year. The bid pipeline won't be an issue.
As far as what we are thinking is about Ahmedabad railway station, I think we are going to bid somewhere in the month of September, 9. After the October 9 or 10 is Delhi railway station. Still up to another month, we'll be able to say something on that project.
Okay. Delhi station is also the same INR 2,000 crore-3,000 crore kind of a size?
I think it is INR 5,000 crore.
Okay. We will be bidding through the JV?
Yeah, it is a compulsory JV because we are not having experience of bridges, and that is a typical requirement of the contracting firm, where bridges has to be a part of this project. We are going to bid both the projects as a JV because it is not purely a building. It is 60%-40%. About 40% is a part of the bridge and the concourse, and the rest of the thing is finishing and MEP.
Okay. This Delhi bid is also by September, October, we will need to submit.
Yeah, it has to end by October. Delhi should have end by October, and Ahmedabad railway station should end by September, which is in nine months.
Okay. Hetal, ma'am, just an update. Need a data point on the balance sheet. I missed the retention money part, if you can repeat that, and absolute inventory, debtor, and payable numbers.
Yeah, sure. Retention, if you see, non-current amount is INR 110. And retention current is INR 35 crore.
Okay.
Yeah, and debtors are INR 450 crore.
INR 415?
Yes, INR 50. INR 450.
Okay. INR 450. Okay.
Creditors, INR 396 crore.
Okay. And inventory?
Yeah, and inventory, INR 184 crore.
INR 184. PS, sir, last, just a thing. We are increasing our borrowing limit from INR 1,500 crore to INR 3,000 crore. Is it for this station redevelopment, only the non-fund based limit that we are trying to increase?
Yes. If we see, basically currently we are having INR 1,047 crore of limit. That comprises of most of the non-fund based limit. Only INR 140 crore is the fund based limit. Now we are planning to increase our bank guarantee limit, so that will be around INR 450 crore+ . So around INR 1,500 crore of borrowing we are planning to do.
He is understanding INR 3,000 crore. It is not INR 3,000, it is from INR 1,000 to INR 1,500.
The resolution what we have passed is the maximum limit. On a higher side we have kept it.
Okay. Resolution is on the higher side that we have kept. Okay. Thank you, and all the best, sir.
Thank you.
Thank you. A reminder to all the participants to press star and one to ask a question. The next question is from the line of Arushi Shah from Sushil Finance. Please go ahead.
Hello, am I audible?
Yeah.
Hello. Yeah. Hi.
Yeah.
Congratulations on the wonderful set of numbers, and thank you for the opportunity. One thing is, I wanted to know that we are highly concentrated in Gujarat and U.P. So what is the total addressable market size in Gujarat, for instance. I can just get an idea that how much more we penetrate only in Gujarat, or probably are we looking at other states all over India as well?
See, it is not about that we are highly concentrated U.P. and Gujarat. Gujarat, of course, will be higher than other states, but we have already experience of operations in Karnataka, Rajasthan and Delhi. As and when the project opportunities are there, I have been always telling that when there is a large size project and the project is something which is different and the pre-qualifying criteria is our niche, the competition is going to be niche. We bid for such types of project anywhere out of Gujarat. But presently, after completion of this Kashi Vishwanath, we got this large size opportunity to work for medical college and hospitals in U.P. That is the reason that we are presently concentrated in U.P.
In general, we are comfortable to work in almost all the states of Gujarat, but still, it depends on what is the size of the project, what is the current order book address, let's say, if we are going to bid for projects out of Gujarat. That way, it is nothing restriction on that we are limited to one state or the other state. It is all about the opportunity and the competition.
For Gujarat, how much would we can bid for, or how much would be the addressable construction, what we can do and pursue, we specialize or we have the expertise in?
See, again, I will say that we are particularly an EPC and contracting firm, it is not at all about how we will be placed in future. But still it is almost 50/50, or sometimes 50 is Last year our order book was almost from Gujarat itself, and Gujarat is the most happening state, you must have heard. Opportunities are coming largely from Gujarat, but we are still open to bid for other states. And presently we can't plan because what are the projects which are going to come from other states can't be seen by a contracting firm. As and when it is announced, and if that opportunity is there, we would bid for that.
Right. Okay. My last question would be, an overall landscape of the construction industry. I just wanted to know your view on that. How much, given the government support and other proactive measures, I am sure we are very well-placed. How does the construction landscape look to you going further from now? Maybe a midterm view would be nice.
The economical growth on which India is going on, I presently feel there will be huge opportunities that is going to come in next three years. As we see that lots of airports are going to come, lots of redevelopment at the government side is coming up, lots of medical college and education institutes are also coming up. Now, presently, once we are thinking about Commonwealth Games and these are the Olympics where Gujarat is going to bid. Probably, I see a lot of future for construction companies to come in next 2- 3 years. At the same time, CapEx side of the large groups of industries also. We have already heard a lot from Adani, a lot from Reliance, and a lot from Ashok Leyland, and Micron, Vedanta and Foxconn.
These are the groups which are going to come with the huge investments in near future. I personally feel there will be huge opportunities for construction companies like us.
Okay. How is our Precast facility currently doing? Are we fully utilized, and what would be the peak revenue if so?
See, presently now we started it since full-fledged operation in last year, and that I think we have done the projects of sizing up to INR 80 crore. This year we are trying to complete it and we have a target of about INR 250 crore. As an individual plant, this unit can go up to 300, but since we are already now expanded ourselves to go into infrastructure also, where we are manufacturing the bunks for bullet train to be supplied to L&T. Probably that can be this business. I personally feel there will be huge potential as and when this year also there was a huge shortage of labor till July. Probably we see that there will be good opportunities for Precast works to come in next future.
If we expand from here, we can grow up to INR 1,000 crore in near future after three, four years.
Okay. Sir, Precast, we do receive repeat orders from our clients?
Yes. Precast, as of now, we have seven orders from Godrej who was into warehousing facilities, and they have already given us few more orders. It is more like when once a person is having an experience with the Precast, that how time and quality is maintained and how time is saved. Mostly 30% time of the person is saved by doing Precast. Probably once Godrej get that technology installed his own campus or his own facility, they will be tempted to go for future and repeat orders. That experience we are already having from Godrej, who is into warehousing facility, who has been giving us continuous order.
Correct. Okay. Thank you so much for such comprehensive insight, sir, and best of luck and congratulations. Thank you so much.
Thank you.
Thank you. The next question is from the line of Ashish from JM Financial. Please go ahead.
Yes. Good evening, sir. Just a few questions. One, when I am looking at the debt number, from what was said, INR 97 is long-term, and short-term is around INR 185, right? The INR 282 crore debt seems to be a very steep jump from the March level of about INR 145. Why would there be such a sharp increase in one quarter, sir?
As I told you that almost all the inventories have been done at the UP site, so there was a little bit more investment on UP site as far as MEP is concerned. The things get converted into revenue only and only once it is installed at site. So that's the major reason where we have to put in money so that at least overall timeline is met because we were already delayed last March. Most of the revenue will now come in this next six months. So we are already on track, and probably the investment is majorly on the inventory side of UP.
Okay. Sir, by the end of the year, where do you see this number, broadly speaking?
I think it should be around INR 200 crores. It should be somewhere in the middle of that, around INR 100 crores.
Okay. You're saying around INR 200 crores by the end of the year, the debt number.
Yeah. Presently it is INR 200 crore. It is more than INR 200 crore, so it will be in the range of INR 100 crore-INR 150 crore.
Okay. INR 100 crore-INR 150 crore by the end of the year. Okay. Sir, secondly, in terms of the two large projects in the pipeline, one is you updated about the Ahmedabad station redevelopment. Apart from that, the Gem and Jewellery Park in Navi Mumbai, which is around INR 2,500 crores. Also we were looking at something for Central Vista. Any update on these two projects?
Central Vista, I think what is the reason at that level, I am not aware of, but there is no certain inquiry from Central Vista as of now. The projects which are going on, that is the only expansion which is going on. Probably that futuristic announcement will be made on the tender stage. But we are not aware when it will come. About Gem and Jewellery Park, yes, the tenders are open and we stood second lowest, so probably it is likely that it will go to the lowest person.
Okay. When is that finalization expected, sir?
Since still we are second lowest, we are not concluded.
You are second lowest. Sorry, sir. I did not understand. Okay.
They have not concluded, but probably once they give the order to the lowest, we will come to know.
Right. That is all from my side. Thank you.
Thank you.
Thank you. A reminder to all the participants to press star and one to ask a question. The next question is from the line of Navid Virani from Bastion Research. Please go ahead.
Hello, am I audible? Hello?
Yeah. Your voice is low.
Is it better now, sir?
Yeah, little bit, but not so clear.
I will go ahead with my question. I just needed one clarification regarding the limit.
Yeah.
If I understood correctly, the current level of limits is around INR 1,050 crores. Out of which INR 140 crores is fund-based.
Yeah.
Right? And we are planning to take it to INR 1,500 crores.
Yeah.
In which the fund-based limit would be, sir?
INR 145 crores.
It is almost 10% of the total exposure.
Yes.
Got it. In the announcement which we have made, we have kept the room to take it up to INR 3,000 crores as and when the need arises. Is that understanding correct?
Exactly. Yes.
Yeah.
Okay, sir. That was the only clarification I needed. Thank you, and all the best.
Thank you. The next question is from the line of Rushabh Shah from RBSA Investment Managers. Please go ahead.
Yeah. Hi, sir. Just had one question. PSP earlier, historically, we had bidded for projects where there is limited competition. I just wanted to understand, has there been an increase in intensity of number of players bidding for the same project, where the competition was earlier limited in the high-ticket projects, high-ticket size?
No, I personally see that after completion of Surat Diamond Bourse, the C scale stand as a D scale, that we are able to qualify from beyond INR 2,500 crore size project, and that there is no much competition, maybe four or five players. Maximum, depending on still the criteria, how it is being kept for that project and what is the requirement of that project. Probably the intensity has not increased, say that there will be huge competition beyond INR 2,500 crores. It will be maximum five or six players.
Okay. Thank you so much.
Thank you.
Thank you. The next question is from the line of Devang Patel from Sameeksha Capital. Please go ahead.
Yes. Hi, sir. You earlier mentioned biddings for airport and railway projects in Delhi of larger sizes. I want to understand what kind of JV partner you are looking at. Is it a domestic or an international partner? What will be our scope in terms of work and in terms of equity participation?
See, as I said, these are two large railway stations wherein there will be a separate road or bridge. There will be a separate road which will touch directly to the concourse level. That is more required like bridges, that they do in a bridge. Those things will be in the scope of the contractor who is expertise in doing bridge. The rest of the thing above concourse, which is going to be finishing part of the overall station, even you have the platform level, there is a finishing. Even at the platform level, there will be a requirement of HVAC and electrical and fire. All these things will be done by the principal contractor like us. Only the main structure which is required to be done, like bridge and concourse, will be done by that player who is having a JV with us.
Yes, we are going with a JV with a local partner from India only.
We will have about 50% share of the work, if we are talking of INR 3,000 crore. I am not sure what the size is.
Yeah. It will be in the range of 50%.
Can you talk about other large projects that are in the pipeline, similarly of large ticket sizes?
Large projects in the ticket size presently?
You mentioned a big pipeline of INR 6,000 crore, but this itself, you are excluding this. Other than this, what are the other big projects in the big pipeline?
One IT park project of INR 400 crore, which is standing from Pune, last time. Chennai. Dharoi Dam project, which we have already bidded, is in the range of INR 350 crore plus. Central Vista project, which we are qualified, which we are waiting for the pre-qualification, is in the MP office, which was INR 1,350 crore. Science City, there is a museum for about INR 300 crore, which we are bidding.
Sir, I couldn't catch clearly. In Central Vista project, this INR 1,250 crore project, did you mention that we are into in this?
No. It is in pre-qualification stage since last nine months. They have not yet announced we are qualified, and once we are qualified, they will be issuing their bids to bid for that. But as I said, that project has been a little bit slowed down. Maybe the reason of agitation in the city, it become a little bit in terms of environment. So probably that will take little time. But yes, we have bidded for the pre-qualification only.
Okay. Sir, I couldn't hear clearly. You were saying you are into in one of the projects.
That is Gem and Jewellery Park in Mumbai.
Okay. Sir, is it possible to use our precast facility for project work in Mumbai, or will the transport distance make it unviable?
The feasibility of this project or this plant, which I think that the profitability can be proved, is up to a range of about 300 km.
Okay. Fine, sir, that's all from my side. Thank you.
Thank you.
Thank you. A reminder to all the participants to press star and one to ask a question. The next question is from the line of Nikhil Kanodia from HDFC Securities. Please go ahead.
Good afternoon, sir, and congratulations on your robust order book. Sir, I had two questions. Sir, in case of Ahmedabad and Delhi station redevelopment orders, who is the other JV partner?
We cannot announce today who will be our JV partner.
Okay. Understood. Sir, in case of the Bhiwandi and Pandharpur projects, what would be the outstanding order book for those projects, and any update from the client or the court?
The order book which we already announced is excluding the Bhiwandi and Pandharpur orders since March. We have already excluded those two orders from our outstanding order book. What was your next, second question, sir?
That is the reason I was asking the outstanding, like, what is the value of the order and any update that would be having from client or the court?
See, we are not including any outstanding order book of these two projects, right? In this INR 5,300 crore of order, we don't have this Pandharpur and Bhiwandi outstanding.
Okay. Any update that we have from the court?
That Bhiwandi project, the hearing will start from August. On the Pandharpur side, we have already applied in the upper that the arbitration is still bit to evoke. So we are waiting for the arbitration to evoke. At Bhiwandi, both the parties have submitted their claims, so the arbitrator's arguments will start from August.
Okay. Sir, I missed your FY 2024 guidance. Have you kept your guidance same, or is there any change in the FY 2024 revenue and margin guidance?
No. Presently, we would like to maintain the same.
Okay, sir. Thank you, and those are my questions. Best of luck.
Thank you.
Thank you. The next question is from the line of Rikesh Parikh from Rockstud Capital. Please go ahead.
Yeah. Thanks for the opportunity. Sir, I just want to understand that the order, majorly incremental order we are getting from the government side. Is there any slowdown in the private project we are seeing?
No, as such it is not so. We have already announced few orders from last year before March. As such there is nothing like that. The private orders are little bit low. But yes, large size projects are being announced majorly from the government side.
Lastly, on the EBITDA margin side, this quarter, we had quite a bit of order completion, so it was on the 13% side. Do you see any margin improvement happening? 11%- 13%, is that band being improving?
No, as I always say that it should be at the end of the quarter, what are the projects which are getting into which stage of the construction. We still have that guideline of between 11% and 13%. Probably again, as in the few quarters back when we last year, the March quarter, we had a margin of about 14%+. That was majorly due to completion of some of the large projects. Even when such types of events come up, there can be a ±1%, but we still try to maintain our claim of 11%- 13% gradually.
Thank you. That is it from my side.
Thank you. The next question is from the line of Shravan Shah from Dolat Capital. Please go ahead.
Yeah. Thank you, sir. Sir, just wanted to clarify Dharoi Dam, the one project that we have bid and still the outcome has not come. So that is a INR 300 crore project.
No, no, no. One order we have already received. There is about INR 1,200 crores of development which is going on Dharoi. First package we are already doing this year. Of course, that order got a little bit delay from the government side, but that is under execution. What I am talking is of the phase II. So which is going to be, we are going to bid by this weekend, and that it was announced just one month back only.
This phase II will be how much? INR 580 odd crore?
No, no. phase III is going to be done. It is in the range of INR 350 crore.
Okay. phase II will be INR 300 crore, INR 300-INR 350 crore, and phase III will also have the same range.
Again, within the same range, yes.
Okay, so total from INR 600 crore-INR 650 crore kind of a size that we are looking to build.
No, no. See, our total INR 1,200 crore investment is divided into three packages. First package we have already received, and we are working on that project. Second package is announced now, and we are bidding by end of this week. Third package may be announced maybe somewhere in the month of October, November. So it is phase I, phase II, and phase III totaling to INR 1,200 crore.
Okay. Got it. Second, sir, on the precast, we mentioned in the press release INR 20 crore we have approved the CapEx. So with this, the capacity will remain the same 1 million sq ft or this will further increase to 2 million sq ft or 3 million sq ft?
See, that is, this is again, as I said, that our capacity is still the same, but there can be some projects which are related to infrastructure and industry. So the shed which we have already expanded for infrastructure, on the structure side, it is 100%, and on the roofing side, it is 50% done. As and when the such types of small expansions are required based on the inquiry, we may go for expansion or some of the inquiries which may come up later in the building side. So when the beam column and slab line, which we have a spare capacity of one line, there can be a future addition of those lines in terms of machinery only. So this is a probable figure I have given, which can be utilized.
Presently, I am not having any idea how much we will be spending on what, but that depends on how the overall inquiry goes on and what level of inquiries we are getting, we decide upon that time.
Okay. In terms of the, for full year CapEx, normally we have a standup 3%-4% of revenue. So close to INR 70 crore-INR 80 crore.
On the project side, that will go on. Yeah, that will go on. Yeah.
Okay. Got it. Lastly, Hetal ma'am, the debt has increased, and we are seeing that by end of year it will be INR 100 crore-INR 150 crore will reduce. But in terms of the interest cost from second quarter, will it inch up from nine odd crore that this quarter we have?
Yeah, it will be. Once the repayment is done, it will be reduced. Interest cost also will be reduced to that extent.
At least second or maybe third quarter till we may see maybe up INR 11 crore-INR 12 crore, INR 10 crore kind of finance cost.
Yeah, it will be less than that actually. Currently, we are having INR 9 crores. So once the repayment is done, see, whatever loans we have taken right now, those will be mostly repaid within a year or so. Likewise, interest cost also will reduce to that extent.
Yeah.
Bank guarantee charges also will be included in finance cost. To that extent, again, if some large project comes up, the finance cost may go up.
Shravan, the difference of five and nine is, usually they are distributed between interest and the bank guarantee charges. It is not only the interest.
Yeah.
Because if your order book has gone high, there are financial charges because of bank guarantee also.
Yeah.
You have to have an incremental in interest also, but it is both way. Maybe 40/50 or 60/40.
Yeah. Got it, sir. Thank you, sir.
Yeah.
Thank you. The next question is from the line of Vaibhav Shah from JM Financial Limited. Please go ahead.
Sir, our number of bid pattern of INR 6,000 crores. Does it include the Ahmedabad station development project?
Yeah.
Okay. Thank you.
Thank you. The next question is from the line of Nikhil Kanodia from HDFC Securities. Please go ahead.
Thank you for the follow-up opportunity. Sir, on this precast revenues, sir, what is the revenue that we have booked in this quarter, and what is the guidance for FY 2025?
I think we have not presented it.
Basically, we are not separating, segregating any precast revenue because if you see our orders, as sir has already said, government factory we are constructing. Those are composite orders. We do civil work and other work also in addition to providing precast.
Overall revenue is booked in the main book.
Main revenue stream only. We can say it is a backward integration and just like RMC, we are using precasting some of the projects.
Okay, ma'am. Understood. Thank you.
Thank you. The next question is from the line of Ash Shah from Elara Capital. Please go ahead.
Hi, sir. Thank you for the opportunity. The L&T precast facility, there is no movement as yet in this quarter as well. Can you just throw some light on that?
L&T.
L&T, yeah. That new order facility is yet to be built up and now supply will start. I think in last month only, a small supply has already initiated. The new project.
Has the project started now?
Yeah.
Yeah.
After getting the order in January, I think we got order last year and we then placed the order for molds. Molds requirement was huge and the molds are going to come from out of country. Some of the molds we have made in Jaipur, in Rajasthan. Probably now everything is in line and all the molds are in place. From last year, last month only we have started to build that product.
Okay. This INR 195 crore will be completed in this year itself, FY 2024, or there will be some spillover?
I think it has to be completed, but there can be some spillover for first quarter. I am not exactly knowing the timeline which has been given here, but probably there should be some spillover of first quarter.
Also, I just missed out on the Ahmedabad railway station. Can you just quantify the amount for Ahmedabad railway station and Delhi railway station separately? What is the pipeline?
I think that probably the Ahmedabad railway station is in the range of INR 2,600 crore and to be exact, Delhi is INR 4,700 crore.
You were mentioning about something on the Kalupur project as well, Kalupur railway station. If you could just throw some light on that.
It was Kalupur railway station, not Kalupur. Kalupur is a part of Ahmedabad. We call it Kalupur railway station.
Okay. That is all from my side. Thank you.
Thank you.
Thank you. The next question is from the line of Aditya Mehta from JK Capital. Please go ahead.
Yeah, good afternoon, sir. Thanks for the opportunity. Just wanted to know what is the order input target for FY 2024?
We have given it more than INR 3,000 crore.
More than INR 3,000 crore. Okay. Thank you.
Yeah.
Thank you. The next question is from the line of Navid Virani from Bastion Research. Please go ahead.
Hello. Thank you for the follow-up opportunity. Sir, last time around in the last quarter's conference call, we mentioned that there will be some spillover of FY 2023, which will happen in Q1 and Q2 of this year. What will be that portion if you can quantify from the total revenue which we did this quarter?
You are talking about UT's?
I am talking about as a whole. Let's say we did INR 510 crore worth of revenue this quarter. How much would be the spillover?
Actually, last March quarter, we fell short of about 10% of overall revenue guidance, and that we told that there will be a spillover of last quarter of March to be different in the first two quarters of 2024. That was the spillover talk and in terms of overall revenue, how much spillover, I think we have never talked. It was only on the UT projects which we envisaged to be done before March, is having a spillover this year in such and the second quarter.
Okay, sir. Got that clarification. Thank you.
Thank you.
Thank you. The next question is from the line of Arushi Shah from Sushil Finance. Please go ahead.
Hello. My question has been answered. Thank you.
Thank you.
Thank you so much.
Thank you. As there are no further questions from the participants, I will now hand over the conference over to management for the closing comments.
Thank you. Thank you everyone for your continued support and bestowing trust on 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 investor relation advisor, EY , and they will connect with you offline. Thank you again. Thank you, Bharanidhar, for hosting our call. Thank you everyone. God bless you.
Thank you again.
Thank you. On behalf of PSP Projects Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.