Afcons Infrastructure Limited (AFCONS) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day, and welcome to the AFCONS Infrastructure Q4FY26 Earnings Call hosted by Dam Capital Advisors. As a reminder, all participant lines are in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Kishan Mundra from Damn Capital Advisors. Thank you and over to you, sir.

Hi, thanks, Alaric. Good morning, everyone, and a warm welcome to the Q4 FY26 earnings call of AFCON's infrastructure. So today we have the management with us, which is represented by Mr. Parmashevan Sreenivasan, who is the managing director, Mr. Ramesh Kumar Jha, the CFO, and Mr. Hittay Singh, the head of corporate strategy. Now at this point, I will hand over the floor to the management for the initial remarks, post which we will open the floor for the Q&A. With that, over to you, sir.

Thank you, Krishan.

Good morning, ladies and gentlemen.

I welcome all investors, analysts, and participants to the Q4 and Financial Year 26 earnings conference call of Afkans Infrastructure Limited. We appreciate your continued support and participation today. Our financial results and investor presentation for the quarter and year-ended March 26 have been uploaded on the stock exchanges. And I trust you had an opportunity to review them. Joining me today are Mr. Ramitja, our CFO, and Mr. Itesh Singh, our Head of Corporate Strategy. Financial Year 26 was a challenging year for the infrastructure sector, and overall performance during the year remained far below our expectations. First of all, I apologize to all the investors that we have made a loss in a quarter for the first time since we started publishing quarterly numbers from 2010. We view this as an exception. In fact, it will not be out of place here to mention that I am personally deeply upset with the results, and I am sure that this could be an aberration or a one-time exception and will change. For the year, revenue stood at 12,322 crores, reflecting a decline of 5.4% year-on-year. EBITDA was Rs. 1,439 crores, and despite the moderation in performance, we maintained a healthy EBITDA of 11.7%. This continues to be among the better margins in the industry. Profit after stats stood at 257 crores. 251 crores. After providing 76 crores for a one-time impact arising from the implementation of the new labor code, if we exclude that, fat will be 327 crores. For the fourth quarter, revenues were 2777 crores, while EBITDA stood at 170 crores. The quarter closed with a net loss of 89 crores, impacted by certain project-specific developments. Provisions and one-time factors during the period. The year was characterized by slower-than-anticipated ordering activity across several segments, delays in project conversion, prolonged tender evaluation timelines, and execution-related disruptions in certain projects. Our top line during the year was also impacted by continued liquidity constraints at the client level, which affected execution momentum in some projects longer than anticipated. In addition, certain overseas projects witnessed temporary disruptions during the fourth quarter due to geopolitical developments in the region. A few projects that were expected to ramp up during Q4 also experienced delays arising from the design and alignment related changes. Taken together, these factors had a meaningful impact on revenue growth and profitability during the year. However, we continue to view this as largely timing-related and external factors rather than structural issues in the business or our execution capabilities. Despite these challenges, we continue to make progress across several strategic and operational priorities. During the year, the HRRL Crude Oil Terminal Project at Mundra, part of one of India's largest integrated refinery and petrochemical complexes, was commissioned, reflecting our growing capabilities in industrial and energy infrastructure. We also witnessed the operationalization and inauguration of several infrastructure projects completed by Afghans during 26. Including sections of the Bangalore double tecker metro and flyover corridor as a part of ongoing elevated metro project. This section was executed within one of the world's and Bangalore's busiest live traffic environments with minimal disruption to city traffic. In addition, successful trial runs were conducted on our Agro and Kanpur metro project, while Delhi Merritt RRTS corridor, where AFCONS executed two packages, became fully operational. Our execution capabilities and institutional strength also continue to receive recognition during the year. Engineering News Record USA ranked Afghans 8th in marine category globally and 12th in international bridge contractors, reinforcing our position in technically complex infrastructure segments. We were also honored with the prestigious Mike Award for the 8th consecutive year and overall the 10th year if you take Mike and Mike together, reflecting the institutionalization of knowledge management and innovation practices across the organization. Turning to our own internal business, I am pleased to share that we have received a proposal for the rehabilitation and construction of the railway line project in Croatia, for which we were declared L1 last year. We expect the related formalities to conclude shortly. As disclosed recently to the stock exchanges, the two Croatia road tenders, while we were declared L1, have been cancelled by the client due to budgetary constraints. While this is disappointing, we continue to remain positive on the long-term opportunity in the region. On the Mumbai-Hamdubath High-Speed Rail C2 project, the second consignment of the tunnel boring machine, which had remained held up for several months, has now been received at site. Assembly activities are progressing well, and the main drive has already been lowered into the shaft. We expect tunneling operations to commence before end of next quarter. Coming to order inflows during financial year, we secured new orders worth 4,125 crores, excluding approximately 3,800 crores of variation and change orders received on existing projects. The order intake was below our earlier expectations, largely on account of deferment of several large project awards and delays in conversion of L1 positions into firm orders, particularly in the fourth quarter. You would have noticed that we have booked around 8,000 crores of orders and declared L1 in another around 7,000 crores of new orders so far in this financial year. We expect these L1 orders to get converted in this quarter. With this, last year order booking guidance backlog will be completed in the first quarter of this financial year itself. That said, we have seen encouraging progress on some of these opportunities, both in domestic and international markets. In recent weeks, our addressable pipeline remains robust across key segments, transportation, marine, underground, hydro, water, and industrial infrastructure. Having the certainty of over 15,000 crore order, including L1, in the current financial year, we expect to book another 15,000 crore of more orders, making the total order booking aid of 30,000 crores for the current financial year. At this stage, considering the continued uncertainty in the geopolitical environment, elongated award cycles. On the ongoing project-related developments, we believe it will be prudent to wait for greater visibility before providing specific revenue growth or EBITDA margin guidance for FY27. To conclude, while FY26 was undoubtedly a difficult year operationally, we remain confident in the long-term fundamentals of the business. Our diversified presence across sectors and geographies, strong execution capabilities, Healthy opportunity pipeline and disciplined approach to growth position us well to navigate the current environment and capitalize on opportunities as sector conditions improve. With that, I now invite our Chief Financial Officer, Mr. Ramesh Jha, to take you through the financial performance in greater detail. Thank you all.

Thank you, sir. Good morning, everyone. Before talking on the numbers, let me reiterate that our quarterly number varies. Companies into the business of construction, the margin in a quarter varies based on the nature, type, and quantum of work executed. So quarterly results may vary in different quarter and may not be indicative of the annual result or trade. Now, moving into the specific numbers. In Q4 FY26, we had a total income of 2,777 crores. This is 18% down as compared to Q4 FY25, wherein we had done 3,387 crores. For the full financial year, we have done 12,322 crores, which again is 5.4% down from the previous year, 25, wherein we had done 13,023 crores. Now, specifically in Q4, we have seen that the payments were not coming from the customers. Payments were not very smooth from majority of the customers. Working capital funding to the projects continued in Q4 as well. And under the circumstances, we decided to balance between funding projects and maintaining liquidity. So we funded projects up to a limit, but we had not gone beyond a point to avoid overexposure to any customer. This limited our turnover in some projects. Also, in Q4, after the war, there were POL and gas-related issues in projects, consumables and logistics-related challenges. Especially, this was in the overseas market, which kind of marked the planned progress. Usually, we have seen that in Q4, we do at least 15 to 20 percent turnover, more than Q2, Q3, and that is backed by smooth payment from the customers. And that gives us the benefit of economies of scale and improves profitability significantly in Q4 and then impacting overall year's performance. However, this year was a contrary effect. It was one of the factors which has impacted the bottom line also during the year. For the full year, we achieved a turnover of 12,372 crore, which is a drop from previous year top line. This year, we could not achieve the planned turnover from various projects across domestic as well as overseas. So on an overall basis, if I have to put it in a nutshell, there were payment issues, L1 orders were not converted. Some of the fast-track projects not picked up and the sudden geopolitical issue were the main reason impacting the revenue growth. Now moving on to the EBITDA, during Q4, we had done absolute number 170 crores of EBITDA. It was quite significantly lower than the previous year's 415 crores. In terms of percentage, in Q1, it was 6.1%. And for the overall year, the absolute number of EBITDA was 1439 crores, which is 11.7% as compared to last year's 1662 crores, 12.8%. So on a year on year basis, it was down by around 13.4%. Now in our EBITDA calculation, we consider the BG Commission as part of our operating expenditures. So EBITDA what we are talking about is after removal of BG Commission as the operating expenditure. This year, because of overall reduction in our interest rate, the finance cost even though has gone up, which I will talk about when I talk about the finance cost. Also, our EBITDA calculation includes other income as part of revenue. Here, we have explained earlier also that our other income is very much part of business. Arbitration interest, foreign currency exchange gain, miscellaneous incomes are recurring. And those are very integral to our business. Hence, this needs to be considered as other operating income. So, for the year ended, a sizable amount of 374 crores, which is part of other income, needs to be considered as other operating income. Now, moving on to profit before tax. For the full year, we have done 387 crores of profit before tax, which works out to be 3.1% of the top line. And this has come down as compared to FY25, wherein we have done 710 crores, which was 5.5% in the previous year. And in profit after tax, For the Q4, we had done the loss of 89 crores. However, for the full year, the profit after tax is 251 crores, which works out to be 2% of the top line. Where in FY25, we had done 487 crores, which was 3.7% of the top line. Profits for the quarter got severely impacted because of high level provisioning in one of the projects. And in another project, we incur substantial extra cost on marine operations. Both these are, you know, kind of one of events. In addition to this, in some projects, where we were expecting to cross the margin recognition threshold, usually in all the projects, once we receive a threshold of turnover, which is around 10%, then only we start recognizing profit. So, in few recent projects, we could not cross the margin recognition threshold which we were expecting in Q4. We fell short marginally to reach that threshold. So, margin could not be recognized. In addition to this, under recovery of fixed costs because of lower turnover. Higher finance costs because of working capital lock-up were the components contributing to loss in the quarter. For the full year, in addition to the above factors impacting Q4 profitability, labor code related one of exceptional items was another big impact. Now, specific to finance cost increase, during the year, we have continued to see payment-related challenge. We have improved our average borrowing cost in FY26 as compared to FY25 because of the interest rate going down and, of course, because of improvement in our grade rating as well. But during the year, the average borrowing has gone up as compared to previous year. And because of that, the overall interest cost has gone up. And this has the manifestation of working capital blockages. So despite improving the average cost, interest on bank borrowing has gone up. Also the interest bearing advances for the full year FY26, which is around 40% of the overall advances from the customer, which even though in March 25 was also around say 38-39%, but then The interest on customer advances were not for the full year at 40% because it gradually moved from say around 20% in September 24. It moved to around 38-39% by March 25. So, for the interest bearing advance, in last year, there was not fully an impact, whereas this year, almost 40% of the overall advances were interest bearing. So, that is what a bearing and interest from the customer advances has increased in this financial year. Because of this, interest on customer advances has increased, making the overall interest cost go up. We expect the situation to improve on realization of number of locked-up assets, which we are in a very advanced stage at this point in time in many projects, and also on receipt of interest-free advances mainly in international order. On the depreciation front, we continue to account for accelerated depreciation on our TBMs of the total 454 crores. The normal depreciation was around 289 crores, which is 2.33%. So, rest of it is on account of accelerated depreciation. On tax, the tax rate on expense profit is around 35%. This is higher than usually one would expect. So, this is an account of some of the JVs where we pay tax in the range of 35 to 36 percent. Also, in some overseas locations like Bangladesh, Gabon, tax is charged on turnover. In such situation, if you don't make profit above the threshold, your extra tax needs to be charged off, which was the case in places like Gabon and Bangladesh. Beyond this, we had to make provision in one of the JV entity, which has brought the consolidated profit down, making the effective tax rate higher. Now, specifically on ROC, we have talked about that higher provision in one project due to arbitration development, extra cost on a marine operation in one of the projects. And non-recognition of margin in few projects due to non-achievement of turnover threshold, and also under-recovery of peak stalls due to lower supply. This all has severely impacted the profitability, in turn impacting the ROCE and ROE. In FY26, we have done around 12% ROE, and ROE is around 5%, which is quite low. In terms of debt, gross debt has remained in the similar range that of September and December, and that stands at Rs 3,538 crores, and net debt is 2,653 crores on the net basis. So on net basis, the debt liquidity is around 0.49 times of the net worth. This is on the number. On behalf of AFCON, I thank everyone for attending this call. Now I request the moderator to open the floor for Q&A.

Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. 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 comes from Shravan Shah with Dalat Capital. Please go ahead.

Hi, sir. Thank you. Sir, you have tried to explain various reasons why our purpose was the worst part in our industry, but still trying to get some more clarity there. So, when we had a call in the third quarter, proposed the result in February 11th, we were kind of confident we will be able to do at least 5% revenue growth for the entire full year. That means we would be doing a kind of a 19-20% kind of a growth on the fourth quarter versus now we have seen a 19% degrowth in the fourth quarter and for full year also 5% kind of a degrowth. So just trying to understand that even at the middle of the quarter, we were so confident and what has gone so wrong in terms of, and that's why we miss significantly on the execution front.

That is correct. But see, usually what we have said, see this was based on the last 15-20 years experience. What happens that in Q4, we have seen that the customers, they release all the payments up to date. This is what our experience has been for quite some time. But this year was an exception wherein we have seen that there was a slowdown in terms of payment, and payments were not forthcoming. That has impacted, and we had to decide a choice between growth. Or to preserve the liquidity. And then we had not taken that aggressive call to pursue the top-line growth. And then in the midst of that, the war started and then that severely impacted the supply chain management. And you are aware that even this year we have done close to 30% from our overseas project, even though the order book is lower in terms of order book composition, domestic versus overseas. But in terms of turnover, we continue to do around 30% from the overseas market. And some of the countries where we are operating are not that bigger economies where they have got higher amount of oil reserves. So the operations got severely impacted in the month of March. So, PUL-related stuff and logistics-related stuff, so we couldn't send material to project site, and this severely impacted. Even in domestic market also, you are aware that many of our projects are at remote locations, so availability of gas was a real problem.

Okay, got it, sir. So, now, again, we are at the middle of this quarter. So, first, obviously, I think, correct me if I am wrong, for full year FY27, we are not providing any revenue guidance. So, if that is the case, then this quarter Q1, till now, and looking at the whatever, now, whatever the constraint, payment related issues, everything, can we see a growth in the Q1 FY27 this quarter?

This is where what we have conveyed is that at this point in time, because of the geopolitical situation, because the condition continues to be the same, even in domestic market, we are getting very contradicting signals. We are hearing that the energy prices are going to significantly go up, and we have not seen the payment situation improving significantly. Even though some of the stuck payments we are, as I said earlier, that we are in a very advanced stage to get those payments, but at the same time those supply chain related issues continue. So it would not be prudent on our part to give you any guidance as such for the full year or even for the Q1.

Okay, got it. So, same for even for margin also, the normal long-term guidance that we have even percent. So, that will also, we will, right now, will not be kind of giving any kind of guidance on that front.

See, we are not saying, we are not giving any guidance on the margin front also because we need to see how it actually pans out because many overseas places, we have seen that the petrol, diesel prices have significantly gone up during the war period. In the month of March, April, the prices have gone up. Now, the places like Bangladesh, they were having elections. So, till the elections were there, the prices remained stable. But after the result, the prices have gone up. So, we are looking at that kind of situation. And you are aware that in many overseas locations, our prices are fixed price contracts. So, we need to see how we are able to recover from the customer this escalated cost. So, we have in past also explained that generally in overseas market, we try to keep risk and contingency. But then at the same time, we are not very sure to what extent those risk and contingencies will be able to take care of the escalated cost.

Lastly, sir, on the inflow front, just to get a number correct. So, after the 30% mark, how much value of inflow that we have received the LOA? Obviously, we also know, if you can also specify in terms of the L1. So, one, what I know is Croatia, which would be at 7,800 odd crore, and the Wadwan one, which is 5,300 odd crore. So, kind of a 13,000 odd crore, kind of, if you can specify the number, would be better. So, we are saying, by June, we would be getting a 15,000 crore LOA. That is one. And second, additionally, we will be getting a 15,000 crore more inflow. So, total would be a 30,000 crore for the entire FA27.

Yes, so you are right. We have already informed to the exchanges that this Croatia order is already, you know, we have been selected as the contractor for the project. And besides that, you are aware there are news in the social media that a couple of projects we have been declared L1. Since we are not disclosing that to the exchanges, we will not be able to give you the exact details, but you are aware, you know, there are projects where we have been We have emerged as L1.

There is also an underground metro of DMRC of 373 crores which we have bagged already.

So, in the year number, what we are talking about, you know, almost 50% is having a clear visibility in place, in the first year.

Okay, okay, got it. And the capex for full year now, given the FI26, I think the TBM cost now will be shifting in the FI27. So, how one can look at the FI27 capex?

So, FY27, we are looking at a capex of around 725 crores.

Okay. Okay. That's it from my side. Thank you.

Thank you.

The next question comes from the line of Ankita Shah from Elara Capital. Please go ahead.

Yeah. Hi. Sir, I'm referring to your last call that you mentioned that nearly one third of your Q4 target is already achieved in the first 40 days. Most approval on the, on, you know, related to project delays have been resolved. Execution pays to normalize from 4Q. An 11% margin looks sustainable. Amid all this commentary that you gave, what is it that you did not see coming through which impacted the balance 50 days of project execution and margins? What are the key projects that actually impacted this and you did not see it coming through?

Thank you. Let's appreciate that Q4 always remains to be a sizable portion in any year. Now, in the month of March, we have seen a sizable drop. Because of, as explained earlier, because of supply chain disruption and energy-related challenges. Many places, the vendors were asking for advance payment and then only they were committing. And despite giving advance payment, many places it was not available. So that became a major constraint and as I explained that we have got almost one-third which comes from overseas market and from the countries are not having those kind of energy reserves. So that's severely impacted. Some of the projects even in domestic market got impacted in the month of March. So this is something which we were not expecting. And also some of the projects were, you know, the fast track projects, we were expecting because, you know, the kind of discussion we had, because these were all private customers also, we were expecting things to ramp up, but then it didn't pick up.

So, do you mean to say, can we read it this way, that large part of this impact has been on account of your international projects, which is...

Large part is because of international projects, and as I explained earlier also, that the payments, see payment has to be something which makes things flow. This got stuck. This has severely constrained us to, you know, put beyond the point money by ourselves.

Okay. So how much percentage of impact is on account of domestic projects and, you know, export, I'm assuming, everything got impacted. Yeah, export got everything impacted.

Maybe in domestic market, if you have to put a number around 25% or so, the projects got impacted.

Okay. What do you, you know, I mean, given that the situation still remains the same, do you think this issue will continue going forward as well? At least this quarter or next six months clarity you might be having, given the kind of experience you've had over the years. What is your breakthrough for, you know, in the near term on this?

This challenge continues to be so, and we have not seen a very sizable improvement in overseas market in terms of energy availability, and what we hear, you know, you might have also seen media. Very prominent leaders, world leaders, we have talked about that, you know, we are looking at big disruption coming up. So, we are also not very sure how to, you know, talk anything futuristic at this point in time. But the situation has not drastically changed. That is the reason we are holding on to the guidance because, you know, once we see some clarity, we will be giving the guidance.

Okay. Sir, can you give me more clarity on your international projects? Where all do you have the projects and what is the nature of the work that you are doing there?

In Bangladesh, we are doing a couple of road projects and we have got a railway project. In Maldives, we are doing one bridge connecting project. Besides that, we are doing a couple of water-related projects in Tanzania. We are doing a water-related project in Benin, in Ivory Coast, and then there are various countries in Africa.

Okay. So, what has been the issue here in these pieces? I mean, if you can give more clarity, is it supply chain related or local level disruption that you saw? No, no, no, no. I'm unable to understand there, that thing.

No, usually what happens that in most of these projects, the material goes from domestic market India. And from Middle East, Dubai was a hub for us. So movement of material became a problem for these places. And usually for our project execution, we require lot of diesel, we require lot of gas. So availability of this was not there. Many places we had to give advance and then only they were committing delivery.

Okay. Okay. Oh, this led to increasing the cost, and has the work stopped on the site, or you continue the work, but you have not got the payment from the client?

So, see, one, of course, you know, the cost impact was not that severe, but then because of this, the operations could not move in a manner we were expecting.

Okay, sir. I'll get back in the queue. I have more questions. Yeah, thanks.

Thank you. The next question comes from the line of Janam Jain from Dam Capital. Please go ahead.

Thank you for the opportunity. Sir, we have highlighted the delay in the payment from the customer end. So, are there any concerns on any specific customer side or are we facing issues from the government or the private clients?

As such, we are not saying that there is concern, but what we have seen is, in some of the states, there was election, and because of that, there was no decision. The payments were certified by the customer, it was sent to the treasury, and the payments were not coming. Some of the customers, we heard that they were not deciding. Payments were certified, it was sent to their centralized finance team, and then we just heard that the payments will be released. It was not released, it was released actually subsequently in the month of April. So, as such, we are not saying that we are seeing any concerns. I think, you know, in past we have talked about judge-driven mission, which continues to be, in UP, they have taken a stand that wherever, you know, people are completing 100 percent, then only they will release the payment. This is contrary to the contractual condition, but this is how it has been taken up.

Okay. So, basically, there was a spillover of receivables from March to this quarter, and we have seen a relief of the payments in this quarter. Right?

Yes. It's not only limited to quarter. Actually, what we are trying to say is that the payments are getting elongated. As such, it's not that, you know, the payments are stuck, the running bills payments are stuck, but then in manner it used to come or, you know, we were expecting it is not coming in that manner.

Okay. And so my second question is, like, is there any plan to be internationally on the ME side, given that Abu Dhabi has unveiled its 55 billion dollars of project pipeline?

No, no, we are definitely at it, and sooner than later we will start bagging projects in the Middle East.

Okay, and so currently would you give any grid pipeline number for now, for this year?

So, yeah, sure. Our grid pipeline remains healthy for the next two years which we track. It is close to 4 lakh roads which we are tracking across segments. And out of that, 70% is domestic and 30% is from the overseas market. As MDs has just mentioned, the Middle East also looks like a big opportunity once the wall gets settled, so that area also we are looking and there are many large value projects in our pipeline, which we are expecting to convert soon, and this is that it gives us a confidence that this year we are giving a guidance of 30,000 crores for the order booking.

So, do we have any bifurcation for this big pipeline of 4 trillion?

Yeah, I have the bifurcation as well. So out of that 4 lakh crores, around 96,000 crores is from the hydro and underground business, which includes our water business as well. Around 90,000 crores is from the marine and industrial. It will be like 50-50 distribution. Our rail and road business will be around 85,000 crores, and remainder around 1.3 lakh crores is from the urban infrastructure business, which includes metro, underground, elevated, and elevated quality. So that's all the distribution looks like.

Thank you.

The next question comes from Parvyes Kazi with Nuwama Group. Please go ahead.

Hi, good afternoon. Thanks for taking my question. You mentioned that in Q4, we had a sizable provision in one project. So, would it be possible to get a quantum of the total provision that's made in Q4 across all projects?

In Q4, across all projects, we have done a provision close to 160-odd crores.

And what would have been this number for FY26?

FY25. FY26.

26.

26, the number is close to 325 crores. See, Parvez, I'll just explain to you, what we have done is, you know, this year we have, in Q4, what we have done is we have made an ECL provisioning matrix. So, earlier, what we used to do is, as per accounting standard, we used to look at, you know, some previous periods, what is the write-off, and basically those averages, we used to make provision. And then, in some specific project, where we used to think that, you know, there could be some challenge, we used to make those specific provisions. But this time around, rather than, you know, sticking with that individual assessment or, you know, individual... This is that, you know, we used to make provision. This time we have made a matrix wherein we have moved from earlier basis, you know, the management judgment provision, we have moved to a matrix wherein basis aging and basis category, we have made a provision matrix. So it will be automatically provision will be made. All the receivables and so there was some extra provisioning required because we had to shift to this new matrix system. There was some extra provisioning required which we have done.

Also we have done in one of the projects where we had an arbitration award where we could be taking a call as to contest or not. We thought it is prudent to provide for it. So we had provided for that. That is also a significant amount. Plus, another of the projects where there is a cost increase in terms of our marine spreads and other things, which we thought it is, while it could get compensated in due course of time, we thought it's apparent we'll book the cost. And later on as compensation comes, it could be a plus side that time. That is how we had, as per our usual conservative accounting policies, that's something we have done upfront.

Sure. So, to summarize, I mean, if one adds all these, which is extra provision due to a new policy or a cost incurred in a marine project or some provision for a potential claim where we have to decide a strategy, I mean, what will be the quantum of these one-time costs in Q4 across all these categories put together?

I think all this put together the quantum could be around say 260-65 crores.

Sure. And second question is, what is the CAPEX that we incurred in Q4 and FY26?

So, in FY26, we have incurred a CAPEX of 1069, and this number was, in December, this number was around 370 odd crores. So, in Q4, we have done close to 700 crores.

Got it. I think that's it from my side. Thanks and all the rest.

Thank you.

The next question comes from Bhavik Shah with Invexa Capital LLP. Please go ahead.

Yeah. Hello, sir. My first question is regarding the current order book. Can you help me with the split of, say, the fixed price order book in it and the variable cost order books in it? And also in the fixed cost, how much of it is going to be impacted, say, for the margins, which may not be at our normal margins now?

In terms of our existing order board, nearly about... 10 to 11 percent only is currently in the overseas segment. All 13 percent is the overseas segment. All others are domestic segment. As you know, domestic segment, we have a pass-through mechanism. And international segments, we don't have a pass-through segment. And therefore, our impact, and most of these projects which we are talking about, is on the closing stages. Other than the fresh order which is received in the current quarter, all others... Or in the final stages of closure. And therefore, we do expect a limited impact in terms of the existing cost escalation or other things. In the new project in the Kroshia, beyond a particular level, it has a pass-through mechanism in that contract. Up to 10% additional cost we need to absorb. Beyond that, it is a pass-through. That's something which is there in the new contract.

In the project you mentioned in Bangladesh, Maldives, Tanzania and Berlin, you executed this quarter. What would be the quantum of these? Because you were saying the large impact came from these projects. So what is the quantum of these projects?

Can you come again?

You could, the Magnatesh road rail project, the Magus project, the Tanzania water project, the Benayim project, all of these were slow moving during the quarter. So can you help us with the quantum of these projects?

In the overall order book, the quantum, at this point in time, the overseas component is around 13%. But what I have explained earlier also, that even though it is around 13% in the overall order book, but during the year turnover, almost 30% is coming from the overseas market.

Okay. Okay, and sir, so we are saying we have 32,500 crores of order book, we are saying we have 15,000 crores of assured inflows, and 15,000 crores of inflows we are going to bag more. That will take me to around 60,000 crores of order book, and even after having a 60,000 crores of order book, we are not able to give a revenue guidance for the year. So isn't that a little misleading or like...

No, it's not misleading at all. Because the infrastructure industry needs some bit of an understanding, where the initial few months, it goes towards installation, design, and other phases. The revenue starts accumulating in the heavy civil infrastructure project, by and large, from the second year onwards only. And some of the projects what we have currently in our 30,000 crore, 31,000 crore of order both has slightly long gestation projects. Like if you talk about there are four dams which are about five year duration. There is a high speed railway project which is about 62 months which is now because of the tunnel boring machine getting extended to another 12 to 15 months. Therefore, these are long gestation projects. Therefore, it's based on the expected order, based on the current order, giving a guidance, especially till uncertainty remains in the geopolitical situation, will be inappropriate. And while on the one side, there have been talks about this thing, our own increase in petrol, diesel is minuscule to start with. In stages, it could get increased. All these will have to be factored in properly. And even now, we find that some places, there are non-availability of fuel in some of the overseas markets, some of the domestic markets in remote places, all these. So, based on all these, giving a guidance may not be very appropriate. That's the reason we felt it's not appropriate to give a guidance.

And see, we are not saying that we are not giving guidance. What we are saying, at this point in time, we are just holding on. We just want to see the visibility, how things are panning out. Because what I am saying is, the cost may go up. If there is a confirm order, you may incur some extra cost. But the continuity continues because of the payment flow. That is where we are seeing that there are certain uncertainties. That's where we want to see some visibility that, you know, how things are, things are moving.

And also, if the customer, yeah.

Also, if we are giving a guidance of 30,000 crores, we have to see at what point of time the project comes. Because we are also seeing that the project cycle, award cycle is getting elongated. So if the project comes in Q2, Q3, accordingly it will impact the revenue. So that is also one of the reasons.

Right, sir, understood. And so, in case of, say, the customers are elongating our payments, not giving us on time, do we have any rights to maybe get those payments earlier? Or how are we negotiating with them currently? Because it will impact our margins for sure.

I see, that is correct. See, usually what happens is in construction contract, The, we are not, with the, at least with the government customer, we are not negotiating for say, you know, individually the contract condition. Because once the tenders are out, the contract conditions are set in that contract, in that, in that project. So basis that everybody bids and then once whoever gets, he has to follow the same contract condition. Now, many a time what happens that if your payment is getting delayed, then you will have provision of charging interest to the customer. All that is there in the contract. But in practice, what happens that the customers, if they are not seeing the visibility of releasing payment, when they don't have funds, they will not certify the bill. And being a government entity, you know, you don't want to get into a confrontation kind of a mood with the customer because that is also not advisable. So till now, the way we have operated is we have tried to deliver projects, we have tried to, you know, in advance, we have tried to solve customers' problems and basis that goodwill that because of those, you know, performance aspects, we were getting our things done. At this point in time, we are forcing that there are some challenges related to liquidity, and that is kind of, you know, creating this kind of situation. Otherwise, we are not having any, you know, bad experience with these customers, because our customer selection is quite, you know, we are quite focused on our customer selection.

Understood, sir. Understood. I wish you all the very best for the year. Thank you, sir.

Thank you. Participants in the interest of time and fairness to others, please restrict yourselves to two questions. For any more questions, you may rejoin the queue. The next question comes from the line of Srinara and Mishra with Baroda BNP Paribas Mutual Fund. Please go ahead.

Thanks for the opportunity. So you highlighted that you are delaying execution of few projects because of uncertainty on collections. So if you can highlight, you know, what is the order book which is facing this issue of collection. So as to gauge, you know, how much impact we are facing and related to that also projects with less than 10% completion, what is the receivable on these projects?

See, I think, you know, specifically, if we have to talk about project, I think, other than UP GELG, even Mission Project, and maybe, you know, project in Gabon. We don't have any specific names to be given. What we are saying is, in any project, what we try to do, we have our own internal threshold. That, you know, this many months of turnover, if it is not realized, then beyond this, we are not going to fund. And we try to manage the project from the project cash flow. So, if the payments are elongated, because many a times it happens that they will try to bunch up, two, three month bill will be hold up. So, after that, we try to go slow. We don't fund from our own pocket. Payment comes, then we try to manage the project. And this is how things are going. And this has got overall impact, what we are trying to say. Specific project, if we have to talk about, we have already talked about UP JALG1 mission project. And we have tried to explain that there, contrary to the contract condition, the customer has taken a stand that whoever is completing the final connection. So, it means that, you know, one needs to complete 100 percent, you know, those connections, and then only they will be getting paid. So, wherever we have completed, say, 60 percent, 70 percent, 80 percent, the contract condition says that progressively the payment needs to be made, but now they have taken this stand that final connection, 100 percent completion, then only they will release the payment. In normal course, maybe, you know, we could have done, maybe, say, anywhere around 60-70 crores monthly turnover, but then now, given the kind of situation, we'll be completing those, you know, wherever we have reached, say, 90 percent, those kind of, so we'll try to complete that 100 percent, and we'll get that money, and from then, that money, we'll try to complete the, you know, remaining, maybe, then we'll maybe look at, say, wherever we have done 80 percent. Likewise, we'll go.

So what I understand is that the collection problem is widespread, it's not limited to certain projects, right?

Absolutely.

Okay, okay.

And also less than 10% completion projects, what are the receivables there, outstanding amount?

No, so receivable is not that significant there. There are receivables, maybe say it will be around 2 months receivable will be there in such projects.

And last question, on the interest bearing advances that we are getting, that proportion is increasing. So, on the order book level, what percentage of order book will have? You know, interest bearing advances. So, I want to have a sense of forward looking that where this number is going to be finally. And on one side, we are paying interest on advances to customers. Other side, customers are delaying our payments. So, we are in a kind of a deadlock situation. I don't, I mean, how will you manage this? It's a big problem.

No, I think, see, we don't look at project selection in that manner, that, you know, if there is a, we'll keep, maybe, say, 50% only interest-bearing advances, because this is not how we look at. What we look at is, in any project, what is the threshold of margin we are looking at? And generally, you know, these projects we are talking about, we are paying interest is for sure, but then in these projects, we have better margin. Unfortunately, we are at a time wherein we have not crossed the threshold, wherein we recognize the margin in the project and on the contrary, we are paying the interest. So that, you know, it is getting reflected. But then I think once the top line kind of, you know, elevates, we will not have this kind of a situation.

I'm sorry to interrupt, Sri Ryan. I would request you to rejoin the queue.

But your ROCs and ROCs will get impacted, right? If you have higher interest, varying advances as a percentage of your order book. So, how confident are you on achieving the guided ROCs and ROCs if, you know, the project will be stated.

That will certainly impact the ROE. From the customer, so your capital employed is not there, and ROCE, I think, you know, the interest expenditure comes below that, so that will not impact the ROCE.

Okay, so, anyways, I will ask for a question, thank you.

I think, you know, just to add, just to add, you know, further to that, Overseas market has always been, say, around 30% or one-third of the order book, which is down at the moment, but I think hopefully we'll reach that stage and then we'll have, because overseas is interest-free and that can significantly improve the situation.

Okay, but I will still appreciate if you can give in terms of segment or order book what is this number that will give a forward-looking information.

Thank you. The next question comes from the line of Sriram Kapoor with Jeffrey's group. Please go ahead.

Hi, sir. Thanks for the opportunity. Just had a question on your order flow visibility, so the 30,000 crores that you are guiding for for this year. What gives you that confidence on, you know, that balance 15,000 crores that you mentioned? You said visibility is in place for about 50% of this. The balance, you know, 50%, what gives you visibility on this? Is it going to be more on the international side or domestic side? You know, which areas are these projects coming up in? You know, is the bidding already opened, or is this more sort of, you know, if you could give some more color on that balance 50%?

Balance 50% consists of both domestic and international. And in terms of certain international projects, we are already in stages of negotiation and closure. So therefore, we do expect things to happen quicker. And in domestic projects also, we have a number of bits already submitted, and there are a few more bits in the pipeline. Therefore, we would say there is a definite visibility in terms of balance, 15,000 crore order book as well. We will not be surprised some more of this will come in the current quarter itself, which we are keeping our fingers crossed.

And you know, it is across segments. We have good visibility in marine, in urban infrastructure, in hydro, and certain projects in surface transport as well. So visibility is also across the various segments we operate in.

Understood, sir. And just secondly, on your working capital, right? So, of course, we've, you know, had a lot of discussion on the payments getting delayed, and we've seen, you know, consequently a rise in your receivable days this year. But are you seeing, you know, any, you know, how are you seeing this panning out in FY27 in terms of your receivable days? It's gone up, you know, more than 300. You know, maybe in the next one, two months. You cannot give any guidance, but overall, you know, a sense of target number that you're looking for for FY27 in terms of your receivable and overall working capital days?

No, see, in terms of receivable days, I have just now, you know, during the call, I have said that on quite a few, you know, big chunk money which is stuck, and on this we are working with, you know, various customers. And we are at a very advanced stage. So before June, we are looking at a sizable amount getting unlocked. So that will give us some improvement in terms of the number we are looking at. Because at the moment, this networking capital number of around 143 days. And in last call, we had talked about that we are looking at somewhere around, say, 120 odd days. So, with this, you know, and to be very honest with you, you know, these monies we were looking at getting monetized before March. That's what we were discussing, but it didn't happen. But hopefully before June this is going to happen because now we are on the verge of closing many of this. We know that some of the payments have already gone and they are releasing the payments. So still I am just taking another say 40 days or so it will definitely going to happen. So with that happening we will go back to around 120 days and then from there on there are a number of stuck payments and we are not going as I have told that in projects we are not overexposing ourselves. So, I think, you know, bare minimum, we can look at 120 days, and from there on, we need to see improvement, but I don't want to commit at this point in time, because we are hearing, you know, very contrary news about payments and all. So, we need to see how it actually works out.

Got it, sir. And if you could just comment on the Maharashtra L1 tenders, is there any update on that? You know, they're going on for rebidding. So any comment on those Maharashtra tenders which you were L1 in earlier? Any update on that?

Earlier L1, both the Kuna Ring Road and Nagpur Kundiya, both are going for rebid, which we had communicated in the earlier quarter itself, it is likely to go for rebid. Now they have informally advised us and also asked us to collect the EMD guarantees and all back. Both of these are going for rebid. Therefore, we have removed it from the L1 status also, those jobs.

Okay, so but no visibility on when the timelines of the rebidding process, right? You know, when it might come up and what are your, you know, how is the competitive intensity in those projects going ahead?

We expect Pune Ring Road could come for bidding in the current quarter itself towards the June or so. Regarding, because Pune Ring Road, the land acquisition is almost completed. With respect to Nagpur, Gondiya, I think visibility will come once they do the land acquisition fully. So, Kone Ring Road could come up for a bidding shortly.

Got it, sir. Thank you so much. All the best. Thank you.

The next question comes from the line of Mudid Bhandari with IIFL Capital. Please go ahead.

Hi, sir. I just wanted to get a more sense upon when we say we have 79% of our order book from government, and majorly of our current issues are coming from this side.

So, I know you don't provide any specific bifurcation, but any range where you can give how much it is from central government or any specific states, like you mentioned one of them as UP, or any TSUs where it is in many cities.

It's of a pending order book. Close to 50% is from state government. I mean around 80% is from government side and out of that 50% is state government and 50% is from the center government. That is how the breakup is and out of state governments we have projects in Maharashtra, Uttarakhand, Madhya Pradesh, Rajasthan, UP, Bihar. So across multiple states we have exposure in our pending order book. And with regards to stuck payment, the main, as our CFO already explained, it's from the Jaljeevan. Rest everywhere, there are certain liquidity concerns, but not anything specific to be highlighted or pointed out.

Okay, understood, sir. Thank you so much.

Thank you. The next question comes from the line of Bala Subramaniam with Arihant, capital. Please go ahead.

Good afternoon, sir. Thank you so much for the opportunity. Chendai Metro or TTA JV, that 659 crore in variation due to unforeseen geological conditions. Could we explain what it is exactly and other geological conditions were indeed possible based on the initial file investigation? I'm just trying to understand how do you look at whether it will come as a provision or is there any possibilities to start on this?

See, it would be project specific, you know, we would not like to discuss here, but, you know, since you have raised this point, I am not talking about specific about that project, but generally what happens that in any contract, if there is a contract clause which allows variation accounting, and we have incurred any variation as per the instruction of the customer, Those variations. In, in normal, in normal code, In some cases, it so happens that we are not reaching any agreement with the customer on the settlement amount, and in such cases, what we do, irrespective of whatever we may claim, Revenue, only to the extent of cost we are incurring. So that is, you know, mere reimbursement we are looking at, and that is the amount which is getting reflected, you know, the specific project you have talked about.

The next question comes from the line of Bhavin Modi with Anand Rati Group. Please go ahead.

Thank you for the opportunity. So, my first question is, as I understand that, you know, we are now doing the work, you know, in proportion to the payments that we are receiving. So, can we see, you know, debt levels, you know, to go down from here on, you know, we are already, you know, at the pre-IPO level debt of, you know, 35 billion. So, how should we look at the debt moment going forward?

See, what happens that generally we have seen that in Q1, Q2, the debts go up. And, I mean, even though we have said this, you know, that from the project only we will be funding, but not all the time, you know, all the expenditure will be, you know, funded through the project collection. Main operations, yes, but then many a times we need to pay salaries, we need to pay rent, and those kind of stuff, we are not hell-bent. So there could be some marginal debt number going up and down, that is for sure. But one thing for sure we can tell you that for this financial year FY27, we will see a sizable drop in the debt number. And that's what, you know, we have stated earlier also that debt, we have always tried to maintain it at a level which is comfortable to us and comfortable to our stakeholders. And this time, it is not that, you know, this is an alarming number. On a gross debt basis, also our debt to equity is around 0.65. On net debt basis is below 0.5. It is, you know, according to me, it's quite a comfortable situation. But having said that, we'll bring it down to... You know, a level what we were there, say, in FY25 or so.

Okay, and the second question, sir, you know, again, relating to this, like, obviously, you know, our net debt equities are comfortable as 0.5x, but last two years, you know, our cash flow from operations are negative, and we were actually, you know, paying the interest cost, you know, by taking the more debt, which is a vicious cycle. So, you know, what gives us the confidence, you know, that the net debt or the debt levels, you know, will go down.

It's a call, it's a calibrated call, and maybe, you know, those kinds of concerns can arise when your debts are at an alarming level. And we, you know, in past, we have operated at a debt equity of, you know, more than, say, around 1.3, 1.4. At the moment, even on the gross debt basis, we are at around 0.65. So, it's not that, you know, it's that alarming level, and we are at a very comfortable situation. We have got a sizable cash and bank balances. We have got sizeable... And we have got very sizable advances which we can draw at any point in time. So I don't think we are at that kind of a situation. And in terms of finance costs and all, what we had planned for the year, maybe marginally we are higher, but it's not that it is out of blue. We are incurring some more cost on account of borrowing.

Okay, got it. Thank you.

Thank you. Ladies and gentlemen, we will take that as the last question for today. I would now like to hand the conference over to the management for the closing remarks.

No, we can take more questions. We have seen that only three more are there.

We will continue and close it.

Okay. Okay. Sure, sir. The next question comes from the line of Avnish Tiwari from Vakaria Fund. Please go ahead. Hi.

Can you explain this cost inflation passed through in the domestic projects and the delayed payment when you're experiencing, do you think there could be a risk to the passing inflation through in the domestic projects?

Most of our, all our domestic projects has an escalation formula. The formula could vary from customer to customer, but it has got an escalation formula consisting of steel, cement, labor, fuel, other factors, and all that. And based on that, whatever is the increases on... In some cases, it is fully covered. In some cases, it is 90% covered. In some cases, it is more than 100% covered. So, that's a formula. Therefore, generally, any kind of increase in the domestic contract... There have been no issues in terms of cost increases, except in some times when there's an abnormal increase. Like happened in 2004-05, there was suddenly an abnormal increase in the price of steel. From that of 17,000, it went up to 65,000 over a period of one year. So, unless that such kind of situation, normally it is manageable within the escalation formula. Internationally, most of the contracts are fixed-to-price contracts. Barring some exceptions here and there. And for international price, we have a well-developed escalation formula. Normal price increases gets absorbed over to that formula, which we put internally in the pricing itself. We do that. In Kroxia, which is our biggest contract to date, is something where up to 10% of cost increase we need to absorb. Beyond that, it has a pass-through. So, therefore, everywhere we are properly provided for. We will see comparatively limited impact.

Does that answer your question, Avnish?

Yeah, the second question I had was on this labor minimum wage increases we are seeing and some protests we are seeing in northern states. Are you experiencing the cost increase as well as some degree of shortage or protest in any of your sites in India?

So, we are not seeing that kind of situation. We have, you know, whatever minimum wages and labor code related increases, we have already factored all that. So, we are going ahead, you know, as per the revised code.

And, Avanish, labor issues are across the board. So, that availability we are trying to manage, how it can be managed. But, yeah, there is an availability issue of the labor part. But, not protest, nothing like that.

Okay, great. Thank you. Thank you. The next question comes from Shravan Shah with Daulat Capital. Please go ahead.

Hi, sir. Thank you for the opportunity. Sir, you said that we have bidet for a couple of projects where bidet is yet to open. If you can specify what's the number and also how much is in India and outside India?

It will not be appropriate for me to mention the bidding values, amounts, and other things. More or less, we would say that we are reasonably confident of achieving this 30,000 crore order book guidance. And in terms of domestic international spread, it could be roughly about 40, 60 or so. Domestically, we are around 60. Internationally, we are around 40. Depending on which order we get, it could get shifted also in terms of percentage.

Got it, sir. Now, just to clarify the capex number that we have said 1069 crore, but in the cash flow, that number is lower. So, obviously, the cash outflow would be happening or may would have happened in the Q1 FY27. So, given that, the depreciation of the capital W, I hope mostly it would be related to the TBM. So, how one can look at this 100 crore quarterly depreciation that we have seen in Q4, a broader sense, how one can look at how it can inch up for FY20.

Yeah, FY27, it will be the similar number, maybe, you know, marginally it will be up from, because, you know, you yourself have said that, you know, these capex, whatever, TBM, we have added thousand odd crore, so that is going to get added in the gross block, and so accordingly, you know, there will be some incremental depreciation, but it will be in line with FY26 and plus some increase towards all these additions.

Okay. And, sir, is it possible to break it down the other income for FI 26, 374 odd crore the way we give in the annual report? So, two heads that I am trying to look at. So, one is obviously the interest income. That is, one is obviously the arbitration one and the other one is the other interest. And what would be the balance? So balance, I can minus it, but these two numbers, if you have for FI 26, what would be the interest on arbitration awards? And what's the other interest in other income?

So that is the interest on our arbitration interest is 19 crores. Another interest is 61 crores.

Okay, so only 80 crore is the interest part is there out of 374 or crore?

Yes.

Okay, okay, okay. Yeah, and then just one more thing in terms of when we mentioned in previous answer that 260-265 crore is kind of a one-off provision that was there in the 4Q. Till now in Q1, any broad sense that how much, because the way we consider arbitration as a normal part of our business, this provision one should be considering as a normal part of business and not kind of a one-off. So it depends how one can look at, but just trying to see until now, have we kind of done any kind of provision in Q1 till now or are likely to be there? No. No. No. Okay. Okay. Okay. Got it, sir. Thank you. Thank you.

The next question comes from the line of Sri Nara and Mishra with Barota BNP Paribas Mutual Fund. Please go ahead.

Thanks for the follow-up. Sir, I wanted to know on the Croatia order that road projects got cancelled due to budget constraints. So, for the railway projects, do you feel there might be collection issues going forward, or how do you see that?

ECB has already approved the entire amount, and funds are already there with them. Therefore, we don't find any issues. Even with respect to road projects also, there is an ECB approval for the funding up to a value, because there were a series of tenders, not these two tenders alone, there were other tenders as well. As all were higher between 20% to 45%, they decided they will cancel the tenders and revise the estimate, get the approval from ECB, and then go for freshman. That is the reason it got canceled.

Okay.

This one has already been approved by the ECB and all the others.

Oh. Got it. Got it. And, sir, in terms of L1 orders, do you feel any other orders are also at risk of cancellation?

No. Mm-hmm. Okay.

Okay. Thanks. Thank you. The next question comes from the line of Ankita Shah with LRA Capital. Please go ahead.

Sir, just a follow-up on inflow side, given the pipeline of projects that you have, and the L1 position pending as of date, what is the visibility on inflows for 27?

Order, you mean order inflow?

New order inflow, yes.

New order inflow, we have indicated 30,000 crores, out of which we have already received 8,000 crores. And another about 7,000 crores, we are L1. And further 15,000 crores. Total 30,000 crores is the guidance for the year. Okay.

Okay. And largely, these will be orders in India, or are you looking at other geographies also for the same?

It will be a mix of both.

Equal split?

Roughly about 60% domestic, 40% international for the balance of the orders.

Got it. And internationally will be similar geographies where you are present currently, or you are exploring new areas?

No, mostly it will be similar geographies.

Okay, okay. And in this Middle East rebuilding or reconstruction activity that could be there, in your assessment, how big could be that opportunity?

Already Abu Dhabi has expressed 55 billion dollars and similarly other opportunities could come up. Bahrain is quite deeply impacted. So at this point it is too premature because even in terms of timeline of reconstruction also we need to see from the second off only it could start. So therefore today we are not factored in the reconstruction part of it in our assessment.

Okay, okay, sir. Yeah, sure. That's it for myself. Thank you, and all the best.

Thank you. The next question comes from the line of Sriram Kapoor with Jeffrey's group. Please go ahead.

Hi, sir. Thanks for the follow-up opportunity. Just to clarify, the rupees, 8,000 crore orders that you mentioned, these are already confirmed orders that would be a part of your order book? And if you could give some color on which orders these are? Yeah, sure.

Out of those 8,000 crores confirmed, 373 crores is already part of our order book. Croatia, we have not taken in our order book yet.

373 crores of DMRT and 7,544 crores are the orders in that 8,000.

Yeah, but in our pending order book, we have not taken the pending order book.

31st March we have done. These are first quarters.

Right, sir, so then, so this would be your 8,000, and, you know, you mentioned it, it's clear, visibility in case of 50% of the 30,000 crore audiobooks, so...

Another two audits, we are already L1, where Vagwan is the public knowledge, and it's around 5,300 crore, there's one more job where we are L1, which is the rest of the amount.

So, that would be the balance that makes up, that would be about 1,700 crores to make up the total 15,000 that you are talking about.

Yes, sir.

Okay, okay. Understood. Thank you.

The next question comes from the line of Abhinav with ICICI Securities. Please go ahead.

Yes, sir. Thanks for the opportunity. Just one question. You mentioned about the Pune Ring Road coming up in Q1. What could be the opportunity size over there?

Most likely, it could be they are awaiting the cabinet approval. It could be around the similar size, whatever they have made earlier. What they are trying to do this time is instead of going a basic number and then go for above the estimate and all, they have updated the estimates and calling for the bid.

I understand. Thank you.

Thank you.

The next question comes from the line of Siddharth Surin with First Rand India. Please go ahead.

Thanks for the opportunity. So two questions. One is on, there is this invocation of Lombard Guarantee, which you had mentioned as one of the note items. Just wanted to understand if there is any impact on the earnings for the quarter on account of that. So that is one. And second is on the buildup of contract assets. So, you know, the company, as you had earlier guided that there would be a liquidation, which we can see on buildup of these contract assets as the billing would be certified and so on. But basically, the government will understand that that is taking some time. So can you still give us some guidance as to when? We can see the liquidation of the short-term contract assets in the future.

Yeah, so on your first question, Gabon, we have already paid that bank guarantee invocation. And in that contract, anyways, we were not recognizing any margin and whatever was to be provided, we have already provided for the expenses. And as we have communicated earlier, we have close to 92 percent or so we had completed the project. So since the contract, at the moment, we are not recognizing anything as such thereafter. Now, coming to your second question of liquidation of some of the contract assets, as I explained that some of the receivables, in the March itself, we were looking at liquidation, and it could not go through. We are looking at those liquidations, maybe, say, by June, we should see a sizable liquidation in the range of, say, So, with that, we will see that getting realized and also we can look at reduction in number of working capital days, which we are looking at an elevated number of 143.

Thank you.

The next question comes from the line of Avneesh Tiwari with Vakaria Fund. Please go ahead.

Hi, just a quick follow-up. These delayed payments you experienced in government projects, did you also experience the same in private side in India?

Private side, we have not seen that.

And the government side, it's mostly state versus centers all across the board.

It is, I think, across the board.

Thank you very much.

Thank you.

Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to the management for the closing remarks.

Thank you very much, all the analysts, investors, and our friends from the industry, and we look forward to an exciting period ahead.

Thank you, sir. Ladies and gentlemen, on behalf of Dam Capital Advisors, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.

Thank you.