Operator
Ladies and gentlemen, good day and welcome to the NCC Limited Q2 F527 Earnings Conference Call, hosted by JM Financial Institutional Securities Limited. As a reminder, all participant clients will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the call, please signal an operator by pressing star and zero on a touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Weber Shah from JM Financial Institutional Securities Ltd. Thank you, and over to you, sir.
Thank you, Rayo. On behalf of JM Financial, I welcome everybody to 22FI27, Earnings Conference Call of NCC Ltd. We have from the management today, Shri RS Raju, Director of Projects, Shri Sanjay Pusarla, Executive Vice President, Finance and Accounts, and Shri Neeraj Sharma, Head Strategy and Investor Relations. Now I hand over the call to the management for their opening river, post which we can begin Q&A session. Over to you, sir.
Thank you very much, Vaibhav. Good morning, everyone. This is Neeraj. It gives me great pleasure to welcome you all to NCC's earning call for the second quarter, the first half of the current financial year. At the very outset, I would like to thank each of you for joining this interactive session and for your continued interest and trust in NCC. I have with me my colleagues, Mr. R.S. Raju, Director of Projects, and our CFO, Mr. Sanjay Fusala. Yesterday, we have announced our unaudited financial results for the second quarter and the first half for the half-year in date, 30th September 26th, which have been uploaded on our website and shared with the stock exchanges. We trust you have had the opportunity to review the financial statements and the investors' presentation. Before we begin, I would like to draw your attention to a brief disclaimer with a request to study a detailed version from our investors' presentation. This presentation may contain forward-looking statements concerning NCC's future business prospects and profitability, which are subject to several risks and alternatives. The actual results could materially differ from those indicated in such forward-looking statements. End of the disclaimer. This interaction is broadly divided into three parts. In the first part, I will present a brief overview of the business environment, operational highlights, and our progress against our FY27 guidance. In the second part, our CFO will cover the detailed financial performance for the second quarter and the first half of the current financial year. In the third and last part, we will pick up your questions. However, we have been continuously exploring new areas to expand our offerings to remain relevant to the emerging infrastructure opportunities, particularly in technology-enabled infrastructure and allied sector. We have already entered in new areas such as smart meters and tunneling using PVMs in the recent past. As part of our medium-term plan to pursue emerging business opportunities, our board has approved a few modifications in the Memorandum of Association to enlarge the scope of activities to be undertaken by the company. The second quarter is seasonally impacted by the monsoon, which generally slows down activity at project sites. Despite this, execution across our project portfolio remains steady, and we have recorded the highest ever second quarter revenue in NCC's history on a console basis. Project progress across the sector continues to be influenced by fund allocation, client approvals, land availability, utility shifting, and billing milestones. And our teams have remained focused on mitigating these through discipline, project execution, and close engagement with our clients. Our underlying business fundamentals remain robust, supported by a diversified order book across seven business divisions, and an established and proven project management framework. As of 30 September 26, our order book stands at Rupees
which is 11% higher than a year ago. During the quarter, we have booked new orders worth Rupees 4,838 crore, mainly from our buildings and water and railway divisions. Our order book is about 3.5 times trailing 12-month revenue, giving healthy multi-year revenue visibility. Including the orders of Rs. 2381 crore received in the month of October, our total inflow for the year so far stands at Rs. 11108 crore, which is about 50% of our lower band of the guidance that we have shared with the market. In the second quarter of FY27, the company has reported a turnover of Rs. 6042 crore on a console basis as against Rs. 4585 crore in the corresponding quarter of the previous year, registering a growth of 32%. On a standalone basis, the turnover stands at Rs. 4,957 crore, a growth of 31% over the corresponding quarter of the previous year. For the first half of FY27, the console turnover stands at Rs. 11,884 crore as against Rs. 9,793 crore in the first half of the previous year, which is a growth of 21%. The EBITDA margin for the quarter stands at 8.8% on a console basis as against 8.7% in the corresponding quarter of the previous year. For the first half, the EBITDA margin stands at 9.1% as against 8.7% in the first half of the previous year. We have shared our guidance for FY27. The call stands at Rs 22,362. Thank you. Thank you.
CFO from NCC Ltd. We have given a detailed presentation, detailed information in the Investor's presentation. However, for the benefit of all the participants, I will be explaining it again. I am pleased to announce the unadded financial results of Q2 of FY27 NCC Ltd. My announcement will cover from order book, profitability, revenue, debt moment, and some other important balance sheet items. I will start with the revenue. The turnover reported in Q2, FY27 is 4,957 crores as against turnover of 3,775 crores in the corresponding quarter of the previous year. This shows an increase of 31%. At consolidated level, the turnover reported in Q2 is 6,042 crores as against 4,585 crores in the corresponding quarter of the previous year, showing an increase of 32%. Coming to the profitability, we achieved EBITDA of 8.48% that is 417.05 crores for P2 FY27 as against 7.45% which is 277.45 crores for the corresponding quarter of the previous year. PBT we achieved 4.4%, which is 218.19 crores, and PAT of 3.29%, which is 163.17 crores in the current quarter. As against, PBT of 3.12%, that is 117.94 crores, and PAT of 2.7%, which is 101.88 crores reported in the corresponding quarter of the previous year. Headcons only till the wind. EBITDA, we achieved 8.79%, which is 528.46 crores, and PBTA of 4.47%, which is 269.85 crores, that is before exceptional items, and PAD attributable to the shareholders is 3.05%, 184.29% in the current quarter. How do you realize this? EBITDA of 8.66%, that is 393.31 crores, PBT of 4.455%, which is 208.62 crores, and PAT of 3.37%, which is 154.7 crores, reported in the corresponding period of the last quarter. I cover the order book also. Our order book stands at 80,167 crores as at the end of September 30, 2026. You are aware the order book at the beginning of the quarter stood at 81,214 crores, and orders received during the quarter 2 is 4,838 crores. The order book of 80,167 crores is consisting of order book of 71,293 crores at standard-owned living and 8,874 crores of the subsidiaries. Let's get into the debt movement. Debt at the standard only way. The debt at the beginning of the quarter is 2,410 crores, and net debt after cash in cash equivalent is 2,008 crores. At the end of Q2, it stood at 2,471 crores, and net debt of 2,293 crores. And at the end of Q2, FY26, the same is 2,115, and net debt of 1,890 crores. There is an increase of debt by 61 crores in Q2 FY27. The debt equity ratio stands at 0.32 at the end of Q2 FY27, as against 0.31 at the end of June 30th, 2026, and 0.29 at the end of September 30th, 2025, that is the corresponding period of the last year. Debt movement has been consolidated. The debt at the beginning of the quarter stood at 4,020 crores, and net debt after cash and cash equivalent is 3,513 crores. At the end of Q2 FY27, it stood at 4,110 crores and net debt of 3,887 crores. And at the end of Q2F526, that is the corresponding period of the last year, the same is 2923 crores and net debt is 2643 crores. In respect of working capital, excluding cash and margin money deposits, at the end of Q2 FY27, it stands at 5,532 crores, which is 28% of the turnover. In terms of days, it is 96 days. Trade receivables. The outstanding at the end of Q2 has decreased from 3,055 crores to 2,697 crores. And the number of days also decreased from 68 days to 53 days in the current quarter. It is 78 days for the corresponding quarter of the previous year. In respect of retention money, it stands at 2,547 crores in Q2 FY27 and against 2,396 at the end of June 26 and 2,250 crores at the end of March 26. The revenue decreased from 7,414 crores, which is 38% of the revenue, to 7,174 crores, which is 37% in Q2 FY27. And the corresponding period of the previous year, it is 6,663 crores, and it is 41%. Coming to the mobilization advances. Mobilization advances to date. 325 crores as on 30th September 2026, as against 3163 crores as on 30th June, and 3386 crores as on 31st March 2026. For the maximum of the increases, 53% are in this period, and the average interest rate works out to 9.07%. Thank you.
Operator
Sorry to interrupt, this is the operator. Sir, there's some disturbance on the line. We could adjust them. Uh, give me a moment. So, uh... Participants, please stay connected while we reconnect the management. Participants, thank you for patiently holding your lines. We have the management reconnected. Over to you, sir.
Thank you. Thank you for your patience. I'll start again with the Moblish advances. I think at that point of time only there were some disturbance on the line. The mobilization advances stood at 2,925 crores as on 13 September 26, as against 3,163 crores as at the end of June 26, and 3,386 crores at the end of March 26. Out of these mobilization advances, 53% are interest-perring, and the average interest rate comes to 9.07%. In this quarter, the interest-bearing advances decreased from 60% to 53%. Cash and cash equivalents. It is 178 crores as at the end of September 26, and 404 crores as at the end of June, and 584 crores as at the end of March 26. Margin money deposits and others. It is 740 crores as at the end of September 26. This is 633 crore size at the end of June 26 and 631 crore size at the end of June 26 and 631 crore size at the end of June 26.
Operator
This is the operator. I'm sorry, sir. The disturbance is back. Give me a moment. Participants, please hold your lines. We will just reconnect the management line.
Yeah, thank you. So, I will start from the capex. I think at that point of time, the decisions came again. We have incurred a capex of 83 crores in the Q2 FY27 and rupees 253 crores in the first six months. As against the budget of 500 crores for the financial year 27. EPS stands at 2.60 at the end of Q2 as against 1.62 of the relevant quarter of the previous year. Inventory stands at 1,742 crores as at the end of September, 1,815 crores end of June, and 1,787 crores at the end of March 26. Coming to the investments, there is no change in the investment. The number is 867 crores end of September, and the same is the case end of March 26 also. Loans to group companies, 306 crores at the end of September, and 290 crores at the end of June, and 295 crores at the end of March 26. Coming to the Visagurban status, at the end of September 26, it is 270 crores. At the end of June, it was almost 270 crores. At the end of March, it was 291 crores. I'll be ending my presentation on the financial statement. Now it is open for the question and answer session. Thank you.
Operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask questions may press star and 1 on their touchstone 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 questions. Ladies and gentlemen, we will wait for a moment while the question queue assembles. To ask questions, please press star and one. The first question is from Shravan Shah from Dolat Capital. Please go ahead.
Hi, sir. Thank you for the opportunity. Congratulations on good set of numbers. Sir, just wanted to understand, despite the strong execution for first-up 21% plus growth, We are saying 8 to 10% of our guidance that we are maintaining. So if I translate into the numbers, that means that we are looking at 6% to 9.5% kind of a degrowth for the second half. So what it is, is there any specific project or a segment or the normal payment of clearance related delays are there and that's why we are not confident to kind of increase the guidance and same way till now October and 6 November, are we seeing the momentum in terms of the growth or Whatever the number is there, and that's why we believe that 8% to 10% is doable, which translates to kind of a 6% to 10% kind of a degrowth in the second half.
Mr. Shah, very good morning. Mr. Shah, the guidance that we had shared with you has been for the whole year, you know, that is for 27. We are pleased to share with you the fact that, you know, things have been very, work very well for us, you know, in the H1, the mining division, you know, several other projects have given us, you know, the revenues, you know, the numbers that we really needed for the growth, and we have shared very good set of numbers that we have already called out. But, you know, still we have two quarters to go, and whenever we share a number, With the investors, you know, we do a thorough working for various projects, you know, and then depending on that estimation only, we have shared the guidance for you that is 8 to 10% growth for F.27, and we have decided to retain that guidance.
Yeah, I understand, sir. But given, let's say, to put it a simple way, this quarter and standalone we have done 4,970 not crore. Do we see a lower revenue in the third quarter given whatever we have done? So then only the 8 to 10 percent is one can say justifiable. Otherwise, this number has to be on the upper side.
Mr. Sir, the third quarter is still on. You know, we have not concluded the third quarter. Still, we have, you know, a lot of time to go for the third quarter. So, I mean, it is premature, really, to talk about the third quarter performance. But, I mean, to cut a long story short, we have decided to retain the guidance that we have shared with you, that is 8 to 10 percent growth.
Okay. Okay. Thank you. Yeah. Sir, just in terms of one more aspect, I was just looking at in terms of the retention money for us. So, for last three quarters, this number has the 2,500 odd crore currently, which is there. 13.3% of the revenue is there, which used to be a kind of 8.5% one and a half year before. So, if I have to translate in terms of the numbers, it is kind of a 950,000 crore of a revenue. So, if we release this kind of a money and on a 9% interest, it translates to a 85, 90 odd crore, which is a 10% of the Fed. So, just trying to understand, so are we making any effort or attempt to kind of reduce this retention money as a percentage of revenue? Because it is significant, 1000 odd crore, we can easily kind of release.
This is Sanjay here. The retention money you were talking about one and a half year back. At that point of time, we have got contracts of about 20,000 crores, where there is no retention money at all. In the present context, what is happening, almost all the contracts have a retention money. 5% of the retention money and some of the contracts in electrical division where we have got the retention money is as high as 20%. And some of the contracts which we received in Mumbai for the city roads, the retention money is also very high. So that is the reason the retention money, when you compare it to the previous period, it appears to be high. But this is the retention money which we are having it. And if you see on quarter and quarter, it is about 150 crores. There is an increase in the retention money. Going forward, maybe if you get a contract where you can replace retention money with the bank guarantees, definitely there will be reduction in that. Otherwise, Whatever contract that will be completing the DLP period, you will be getting back your retention money. And some of the contracts have a clause where the contract completion, you can replace the retention money with a bank guarantee for 50%. So it depends on the contract, it depends on the composition mix of the contracts and the present situation. So this retention money will be there. It will continue to be there.
Okay, lastly, sir, on working capital and date front, can we expect further kind of improvement in working capital and date, which is, if we look at from the March level, kind of 200 crore plus kind of increase, so we'll come back to the March level of FF26 at the end of FF27.
Yes, hopefully we will be coming back to that level.
Okay. Thank you, sir. All the best and happy Diwali.
Thank you so much and happy Diwali.
Operator
Thank you. The next question is from Parvez Ghazi from Nuwama Group. Please go ahead.
Hi. Good afternoon, and thanks for taking my question. So, two questions from my side. First, we have seen a pretty decent improvement in our payment cycle, especially over the last six-odd months. Will this be largely due to the UPJJM projects? Or, I mean, in general, we have seen improvement in payment cycle across time.
In general, we have seen the payment cycle is improving, and as you said, even the payments from the JLG1 machine is also improving. They are coming in a regular manner.
So, what would be the outstanding in UPGJM project now?
As on date, 2,246 crores, including all the JJM projects, handled by us, across various states.
I think, if I remember correctly, it was about 2,700, 800 last quarter, so there has been a substantial reduction in this.
If you ask me to give me only the trade receivables, it has come down to 344 crores. In the case of unbuilt revenue, it was 2009 crores.
There's been a decent reduction here. The second question is on the CAPEX. You mentioned, I think, H1 CAPEX at about 153 odd crores. Now, I'm assuming this is only at the standalone level. Overall, CAPEX including CBMs is 388 crores. Is that number correct?
Yes, it is not 153. It is 253 crores in the first six months. And TBM, whatever we have invested, it was invested in the last year itself. It was there as a capital work in progress in the last year. This year it has been capitalized. It is excluding that.
Okay. Sure, sir. Thanks. I will come back in. Thank you. And happy Diwali to the entirety.
Thank you. And which is the same.
Operator
Thank you. Before we take the next question, a reminder to participants that you may press star and 1 to join the question queue. The next question is from Bebhaf Shah from JM Financial. Please go ahead.
Sir, on the CAPEX, we maintain our 500 code guidance for 27?
And for FY28, it should be a similar number or we can see an uptick?
Generally, it will be a similar number. Because we are handling the mining project, the requirement may come up. You know that we have backed the mining project in Jharkhand, Amarpali project. So, it is a capital intensive project. It may require some kind of capax in the next year also.
Okay. So, secondly, what would be our JGM order backlog overall, including O&M as of September?
Excluding O&M. This is excluding O&M. Generally, O&M we consider when we started, but excluding O&M, the order backlog is...
Can we plan to execute this by next year end?
It is like this. In this 5142 growth, there are some new projects which have come from Jaljiven in other states. But the major Jaljiven order backlog, which is there in UP, will get substantially completed by March 27 itself.
Sir, we are open to take new projects in JJM.
Yes, definitely. We will get an opportunity and we will take it.
So, despite the payments being an issue for quite some time in the last couple of years, we are still open at it.
Yeah, we do not expect the same kind of problems or the same kind of tightness will be there in the release of payments by the government. Because now the governments are coming up like in AP, they are coming up and some other places also they are coming up with the JJM scheme.
Okay, got it. So, secondly, on the Visag land sale, you mentioned that 270 crore is outstanding. So, by when do we expect to recover it?
We expect by end of the quarter four, we will be able to complete this.
And sir, lastly on the smart meter thing, so what is the outstanding order backlog right now for smart meter?
Yeah, it's almost like 51% we have completed installation and 49% is outstanding.
Thank you very much for my questions.
Operator
Participants who wish to ask questions may press star and 1. The next question is from Vishal Perival from PL Capital. Please go ahead.
Yes, sir. Thanks, sir, for the opportunity. Sorry, sir. I'm audible, right? Yeah, I'm audible. Good morning. Yeah, sure. Good morning, sir. Sir, sorry, harping on that guidance part again, I mean, like, you know, historically, we have been saying to the market that either the clearances are not coming, then probably we delay execution. Or second, if clearances have come and then payment release is not happening, then we delay the execution. But if you look at last two quarters, the execution has been there, which means clearances are coming and as well as your balance sheet what you have reported, the cash flows are also coming. So, I mean, given both the part are going in line with what our thought process has been. So, what could be the reason of probably seeing things will be a little on the weaker side in the second half based on the guidance?
Yeah, two questions. Firstly, Mr. Perival, our commentary is contingent on what is prevailing, you know, at our sites. So, you talked about, you know, our commentary in the past, you know. So, in the calls, we try to communicate what we get to see at the sites, you know. So, as the numbers in the last two quarters speak for themselves, you know, the things have been improving. And some of the sites, I think my CFO has already called out for the Jalji Unmishan, we have received payments. So, some of the, we are making progress on the sites. So, the commentary that we had shared with you in the past was a reflection on what we got to see at this point of time. So, things seem to be improving, but we never share any guidance for six months, you know. So, the guidance that we have shared for the street is for the whole year, that is FY27, and we have decided to retain that guidance and hopefully surpass that number.
That's good to hear, sir. And then maybe one bookkeeping, I think unbuilt revenue, it has come down on a quarter basis this quarter, but last two, three years we have seen an increase. So I think broadly you mentioned 2000 is coming from JJM. Is it possible to get what exactly is this stickiness or probably anything, color that can be provided regarding the unbuilt revenue, sir?
No, I think we need to a little explain on this. The unbilled revenue is coming down, and the type of contracts now we are executing are on the EPC basis. Not like in earlier days, where you will be billing on the execution and the quantities. Now on the EPC basis, when you do that, the billing will happen on the milestone achievement. So when you see the unbilled revenue, The health of the unbuild revenue is very much improving, and it is all related to the BharatNet project, which is where we are executing, and also the projects where we are executing in Epic Capital City. The huge amount of work is going on there, and outside the BharatNet, we are also doing the huge amount of work. So, these are the things contributing for the unbuild revenue. But no doubt, the unbuild revenue... It is improving in its health. There is no sticky unbilled revenue. The unbilled revenue is progressively realizing. But we expect that we maintain maybe similar type of unbilled revenue in the days to come.
Okay, okay. And maybe if I can just ask one last question, what is the outstanding in BharatNet for us in terms of order book, and probably what kind of execution we have done quarterly this quarter for BharatNet?
We have done almost like 11% of the total contract we have executed in both MP and Uttarakhand, and we have almost spent about 1,000 tolls on its work, and we have started billing now. And in unbilled revenue, as I said, that is also there. And especially in the Bharatnet projects, the lead time for conversion from billing, from execution to billing and realization is a little longer.
Okay, okay. And segment-wise, sir, where is Bharatnet is housed? I mean, say, electrical T&D. Okay, okay. Fine, sir. Fine, sir. Sure, sir. I'll come back in the queue. Thank you very much, sir. Thank you.
Operator
The next question is from Rishali Shah. Please go ahead.
Please go ahead and take questions.
Yeah, thank you for the opportunity. I wanted to ask more on Smart Meter, and I would want to understand what kind of payment cycle are we seeing there? Is there any working capital challenges we're facing on that side?
We do not see any working capital challenges in the smart meters execution. Smart meters, when we are executing, the payment will be in two phases. One is earlier, first, on installation of the smart meters, we get some amount of payment. And the balance amount we will get over 83 months after the installation. Sorry, 93 months, after 93 months of the installation. On a monthly basis, and we have not seen any challenges, and the payments are coming on a regular basis.
Okay, okay. Second question is on AP Capital City. What kind of receivable is outstanding right now, and what order book are we looking at on that front?
But as far as the receivables are concerned, we are not facing any challenge. Whatever work we are executing, we are getting realization. Between 30 to 40 days, we are getting realization. So that is not a problem. And when it comes to the order book, I just give you what is the amount of order book. It is 14,500. 14,500 was the order book of the AP.
Thank you so much. I'm a very happy device.
Operator
Thank you. The next question is from Pard Thakkar from GM Financial. Please go ahead.
Thank you for the opportunity. My first question would be regarding the build pipeline. Can you provide us with the fragmental breakup as well?
I think in the last call in May, I have already shared, you know, the prospective pipeline of projects that we get to see, which at that point of time was, you know, about 2.5 lakh crores. Our business is primarily construction, you know, so we do not really give segment-wise break-up.
So, it would be intact at 2.5 lakh per hour.
Yeah, yeah. Do you have any other questions?
Yes, sir. So, what would be a JGM payment in the first half?
And my last question, do we see any impact of higher raw material prices on our margins?
81% of our contracts have got the exclamation clauses. So any increase in the prices will majorly offset from the price variation clauses that are available.
Okay, sir. Those were my questions. Thank you. Thank you.
Operator
Thank you. The next question is from Shawa Jay.
Thanks for the opportunity. My question is that since 60% of your clients are PSUs, could you explain your billing process, the average collection period, and whether any retention amount is withheld from the payments?
As per the contract, retention monies are from 5% to 10%, and each of the running bill, when they are processed, they will hold the retention money, and that money will be released only after completion of the contract, partially, and balance they will release it after completion of the DLP period. And generally, in the government lines, the payment cycle ranges between 50 to 60 days from the date of certification.
Okay, thank you. That was my question.
Operator
Thank you. The next question...
Thanks for taking my question and congrats on good set of numbers. Sir, on the JDM project, what is the outstanding order book, sir?
We indicated that we will try to complete large part of this order backlog in the current financial year. So, we are on track or is there any change?
Okay, and since we have already received around 11,000 of orders, and we have guided for 22,000 to 25,000 of inflows, so, I mean, can we assume because normally S2, we get larger part of the orders, so, I mean, are we on track to exceed our guidance or we achieve upper end of the license, so, if we can comment on the new order inflows, right?
See, you are absolutely right that, you know, we have shared the order inflow guidance, a band, 22,000 crore to 25,000 crore. If we take into account the order, the projects that we have bagged in the month of October, the total inflow is about 11,108 crore, which is about 50% of the lower band. So this itself, you know, gives us the confidence that, you know, we are on our way to achieve the band of the order inflow guidance that we have shared with the street. And we, you know, we retain that guidance and hopefully we will achieve that number.
At the last, what is the update on the K&Betwa project, how is that?
Operator
Which project, sir?
K&Betwa project. So, I mean, there were some issues earlier regarding land acquisition. Any update on that?
No, no, we are making reasonable progress on the K&Betwa side. And the land acquisition issue or demonstration that you are alluding to was at a place that was, you know, at a distance of 30-40 kilometers away from our project site. And we are happy to share with you that we are making reasonable progress on this project.
Okay, sir. Okay, sir. Thank you. Thanks for answering the question and happy Diwali.
Thank you very much. Happy Diwali. Thank you.
Operator
Thank you. Before we take the next question, a request to participants to please limit your questions to two per participant so that the management is able to address questions from all participants of the conference. The next question is from Shravan Shah from Dolan Capital. Please go ahead.
Hi, sir. Thanks for the opportunity again. Sir, can you break it down the difference of the standalone and console order, which is a 8874 corridor in terms segment wise? So, I understand it is transport, electrical, and mining. These are the three segments. So, if you can break it down, this would be helpful.
Standalone, it is 80,000, sorry, total it is 80,167. Of that, 71,293 is the standalone. 8,874 is the subsidiary companies. Of 8,874, mining we have 5,923. Transportation we have 2,431. And smart meters we have 520 costs.
Got it. And, sir, in terms of the finance cost and the depreciation, so finance cost roughly 166 crore quarterly for last two quarters. So, this run rate will continue for second half also.
And in terms of the depreciation, how it will intersect from this quarter 73 odd crore, so as has inched by 34 crore on QOP basis, so it will keep on inching up, or will it be a sizable increase in third and fourth quarter?
It is like this, the TBM machine was capitalized and put to use in the month of September. From September that means second quarter of this year. Definitely the depreciation is going to go up in the third quarter and fourth quarter. Besides the TVM, we also have got the mining project where we are executing, where it is a capital intensive. There also the depreciation will come into play. So hence the depreciation is going to inch up in the subsequent quarters.
Hello. The point here to be noted is, in absolute terms, the depreciation cost increases quarter-quarter. Facing on the new orders, facing on the new capex already taken place, and also the capex take place in the rest of the quarters. However, in terms of percentage, the same reading, the same reading is maintainable. 1.48% is given. That is maintainable.
Okay, but this TBM and mining one, so will that depreciation will be a part of standalone, or it will be a part of the console?
No, here mining is inclusive of this 1.48. The mining project is in a stand-alone project.
Even TBM also is in a stand-alone. Both will come under the stand-alone only.
Okay, okay. Got it, sir. Thank you.
Operator
Thank you. The next question is from Saket Kapoor from Kapoor & Company. Please go ahead.
Yeah. Namaskar, sir. I hope I'm audible to the team.
You're audible. Saket ji, good morning.
Yeah, sir. Good afternoon, sir. Thank you, firstly, sir, for updating the investor presentation, especially the smart meter part of the story. We have been given more information, and just to add to it, if going ahead, even for the judge-even part, which has been a sticky issue, and I think for now, resolution on the way, if you could further give us the understanding pertaining to the questions that are being asked, that will also suffice a lot of questions in terms of the legacy part, the execution, receivables, the new addition, and then the execution of the same. That would give us some more understanding how we are moving ahead, firstly. So, sir, firstly, do you have the breakups currently for the JLG1? What is our legacy portion that is left to be executed and the new orders intake that we have done?
Yeah, and I think it's very good to hear from you that we have improved our presentation on smart meters, and Jaljiven is like a standalone project. Once the projects are getting executed, it will be over. And the legacy issues, what the Jaljiven work we were facing, I think they are coming to an end. Now, if you ask me the legacy part of the Jaljiven. If you see that, it is 3,200 crores is the balance which is there available in the legacy gel-driven projects, which we are expecting to substantially complete by March 27. And the current project is about 2,128 crores, where we are making good progress, and the payments are also progressively coming now.
Okay, and for the k-bitwa part, sir, what is our pi of the order?
Can you just repeat the question, please?
Yes, sir. It is pertaining to the Ken Betwa river linking project. What is our pie in the total share of the project?
I don't know what is the pie of our project, the whole value of the Ken Betwa project.
Yes, sir. It's a big project. I think it's a few billion dollars. So, how much are you?
It is not readily available. We will come back to you.
Mr. Kapoor, I think Cain Bitwa, we are the first ones to back the first ever project that was awarded for the Cain Bitwa part.
What is the value? Okay, anyway, we can take it offline. So now, sir, for the financial question, firstly, sir, investment property under construction, this value of 108 crore, what does it signify and going ahead, how will this number shape up? And secondly, sir, if you could explain to us. What is the nature of unbilled revenue and how it impacts our finances? The numbers which we report, I think, during the presentation also about March, then June, and then September. Its significance and how is this going to trend? These two questions.
This 107 crore's investment relates to a project in Hyderabad. We have started, we have invested in that project, and the project is in midway, it was stopped, and the developer is in a little problem. So, there was an issue with the RERA also. RERA has cancelled the project and kept the project on hold. We are also taking up with RERA along with other people who are there in the project. We expect that this problem will get resolved over a period of time. We are not very sure that how much time it will take because it is a judicial matter before the NCLT. That is the reason we are not sure that how much time it will take. But definitely the amount of investment is completely secured. And there is no problem in the recoverability of this investment. Second one is on the, Ken Bantwa you are asking, what is the value of the contract? It was 3,389 crores, which is the value for the NCC to be executed. And you are asking for unbilled revenue, okay? Unbilled revenue as per the standard IS-115. What we need to do is that whatever money we have... Spent and we have completed our obligation and not billed because of the certification. So that amount, whatever is there, need to be recognized in unbilled revenue. So that is the reason unbilled revenue will come into the place and it will be added as a contract revenue for us.
Okay, and lastly, sir, then what is this other financial liability of 8,163 crore, which goes into the consolidated account under the current liability?
That is the financial asset of the smart meters. Because smart meters is a HAM project. So it has to be accounted under the financial liability. So whatever that money is there, that is accounted under the other financial liabilities.
So entire part of 8000 is attributed to the same? Or can you give a number to it?
And lastly, to the CWIP also, sir, I joined the queue after this, that our current work in progress closing balance is 92 crore. So, what do we attribute this amount to? And for the second half, what is the capex that we have outlined?
Second half CapEx is, overall CapEx is 500 crores and 253 crores we have already spent in the first half. Probably the balance 250 crores we will be spending in the second half.
Right, sir. And on this 8000 breakup, sir, can you provide how much is attributed to the smart meter?
One second. We are just getting back. Can we give you offline?
I will take it off. For this quarter, our subcontractor work bills have gone up if we take the number on June. So how are these numbers comparable? And also on the finance cost also, that is also moving inching up on every quarter basis. So as a person, what should we look at this number as a run rate or a percentage of sales going ahead?
The percentage will be around 9.2.
Operator
Thank you. Thank you. Mr. Kapoor, we requested to rejoin the queue. The next question.
When you come back, we'll tell you.
Operator
The next question is from Parvez Ranjeev from Nuwama Group. Please go ahead.
Hi, sir. Thanks for taking my follow-up question. So, you mentioned we received 17-20 crore payment. Was that only for JTM projects, or does that relate to the overall payment that we received? That is JGM projects only. And this was the amount for Q2 or H1?
H1. H1. Sure, sir. Thank you all. Thank you.
Operator
Thank you very much. We'll have to take that as the last question. I would now like to hand the conference over to the management team for closing comments.
Thank you very much for a very enthusiastic participation and your continued interest in the company. Thank you very much.
And wish you happy Diwali. Thank you.
Operator
Thank you very much. With that, we conclude today's conference. Thank you for joining us, ladies and gentlemen. You may now disconnect your lines.
