Vikran Engineering Limited (VIKRAN) Q1 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the Vikran Engineering Limited Q1 FY27 Earnings Conference Call. We are pleased to have with us the Senior Management Team of Vikran Engineering Limited. Before we begin, please note that all participant lines will be in a listen-only mode during the management presentation. There will be an opportunity to ask questions during the Q&A session. Please note, this conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on the date of this call. These statements are not the guarantee of future performance and involve risks and uncertainties that are difficult to predict. I would now like to hand the call to Mr. Rakesh Madhketkar, Chairman and Managing Director of Vikran Engineering Limited, for his opening remarks. Over to you, sir.

Good morning, ladies and gentlemen. On behalf of Pikran Engineering Limited, I extend a warm welcome to all my participants joining our Q1 FY27 earning conference call. I hope you have had an opportunity to review our financial results, investors' presentation and earnings release for the quarter ended June 30, 2026. I'm joined today by Mr. Nakul Markhidkar, our whole-time director, Mr. Ashish Bhayati, our CFO, along with our investor relations advisors from AdFactors PR. Let me begin with a brief overview of the quarter. Q1 FY27 performance. We have comments FY27 on a positive note, delivering approximately 28% YOY revenue growth, while EBITDA have grown up around 24% YOY on a standalone basis, and the PED. We have grown up to 212% and that remaining is very impressive. The portal reflects continual execution momentum across our businesses while we remain focused on maintaining a healthy balance between growth and profitability. A key strategic priority for us continue to be strengthening our presence in renewable energy, mainly into the solar EPC. Following the acquisition of NOPL Solar Project Private Limited, we have realigned the execution framework for our 969 MW AC solar project in Maharashtra, with Vikram undertaking the EPC execution through a direct control from NOPL valued at approximately 3,518 crores, including GST. This gives us a greater alignment between the project ownership and EPC

execution and provides a significant opportunity to

leverage our existing engineering and project management capability at scale. Our immediate focus is on ensuring disciplined execution and timely commissioning of the portfolio. Strengthening our power T&D business, while solar EPSC has become a significant growth driver, our power T&D business continue to remain a core strength. During the period, we have made meaningful progress on the NOPL solar project, while also adding fresh opportunity from leading customers such as MSC diesel and Powergate. At the same time, the successful commissioning of Myon Namsi transmission line, this is a very prestigious Andhra Pradesh transmission, Andhra Pradesh further demonstrate our execution capability, particularly in the technical challenging project. This project, which we have commissioned, is very, very important in the national interest, and it was highly recognized by our clients, Ministry of Power and Powerhood. And with this line, in the last six months, we have commissioned two very toughest terrain lines of transmission in Arunachal Pradesh in the last six months. This is the achievement that gives a clear-cut strength of execution of Vikran Engineering Limited. Overall, these developments reinforce our ability to grow across multiple business verticals while maintaining execution and commercial discipline. We remain focused on converting our strong order book into revenue, strengthening our renewable energy platform, and continuing to build our core power T&D capability. Nakul, our whole-time director, will take you through the specific order range, project execution updates, and current order book in greater detail. Going forward, we see opportunity across both our established and emerging businesses. Power T&D will continue to benefit from increasing power demand, renewable energy integration, and investment in transmission grid infrastructure. While renewable energy, our focus will remain on executing the existing solar EPC portfolio, including NOPL, while selectively evaluating opportunity in adjacent area, such as battery energy storage system and data center infrastructure. Our approach to growth. Will remain disciplined, we will continue to focus on execution ready opportunity, prudent bidding, working capital discipline, and sustainable project level returns. With this, I would like to hand over to Mr. Nakul Markedkar, our whole-time director, to take you through the operational performance, order book, and execution progress during the quarter. Thank you.

Thank you so much, sir. Good morning, everyone. I would like to take you through our operational performance during Q1 FY27, with a focus on key developments during this quarter, execution progress, and our current order book. We have entered FY27 with a strong and increasingly diversified execution pipeline. The most significant change to our order book has been scale-up of our solar EPC division. Which has now emerged as our largest pie, largest piece of pie in our order book, while D&D continues to remain our strong core business. During the quarter, we also took a few important steps to strengthen the quality of our order books and that aligns with our execution readiness. The key development was restructuring of the 969 MW solar EPC project in Maharashtra following the acquisition of NOPL Solar Projects Private Limited. Vikram received a direct order from NOPL valued at approximately 3,118 crores, including GST, while replacing the earlier engagement. This realignment was driven by change in ownership and project execution structure following the acquisition of NOPL and was not related to any performance issue or disputes. The project has now moved into execution stage. Our teams are progressing across engineering, procurement, vendor mobilization and on-ground execution. With stipulated execution period of 12 months, our focus is on maintaining the planned execution schedule while ensuring appropriate quality, cost and project control. As of now, we have already commissioned nine sites amounting to around 45 megawatts. And are ready to commission another 15 megawatt in the coming few days. We are also in advanced stages for around 240 megawatt. This marks an important milestone for Vikran in building the capability to execute large-scale solar EPC projects. When we come to project Power TMD, Um... Power T&D continues to remain strong for business for Vikram and has seen healthy order momentum since the beginning of FY27. In April, we secured two large orders aggregating to around 530 crore from MACDCL for distribution infrastructure and system strengthening work across Nashik and Kolapur zones in Maharashtra. These projects are being executed under ADB-funded power distribution enhancement programs and further strengthens our progress, presence in large-scale power distribution infrastructures with strong funding visibility. We subsequently secured an order of around 120 crores from Power Grid Corporation of India. For a 400 kV GIS substation extension package, covering Magarwada, Varodhara, and Rajgat substations. This order further strengthens our presence in high-voltage GIS substation segment and reinforces our strong relationship with Power Grid Corporation of India. On the execution side, like what CMD Sir mentioned, we have successfully commissioned 132 kV Miao Namstrain transmission line in Ladinachal, Pradesh, which was the second line that we have commissioned in the last six months. The project covers around 40.6 kilometers of transmission line and 138 towers. This project was... Especially challenging because most of this area is covered with highly dense forest area with a lot of hilly terrain. Together, these developments demonstrate the continued strength of our Power T&D platform across distribution, substation, and transmission line segments with a healthy mix of new order wins and successful project execution. These developments are translated into a strong and diversified order book. As on date, our order book stands at approximately 6,496 crores. The current mix is led by solar EPC at 62%, followed by power TND which is at 28%. Water infrastructure still stands at around 10%. The order book next. Clearly, it reflects the scale-up of solar EPC, while Contribution Power Priority ND Water continues to provide diversification and broader execution. Looking ahead, our focus is simply on adding order book size. Simply, our focus is not just simply adding on order book size, but also converting the existing order book efficiently into revenues and cash flow. Our business development pipeline remains active across solar, solar EPC, power T&D, water infrastructure, and any other emerging infrastructure opportunity that meets our criteria. We will come to, we will continue to evaluate new projects selectively with emphasis on project readiness, execution timelines, working capital requirement, and commercial viability. For FY27, our Our key operational priorities are therefore timely execution of existing order books, successful delivery of NOPL solar EPC projects, strengthening our solar EPC capabilities to maintain disciplined order intake. With that, I would request Mr. Ashish Vaithi to take you through our financial performance of Q1. Thank you.

Thank you, Nikolte, and once again, good morning, everyone. I'll briefly take you through the financial performance for Q1 FI27. As you all know, that EPC business is a seasonal business where generally H1 remains slightly low because of the budgetary constraint at our client. However, we have posted a good growth on a standalone basis for the quarter as well, and we are on track to achieve our budgeted revenue as well as execution targets. For Cuban FY27, we have started with a healthy financial performance. On a standalone basis, our income from operation stood at 204 crores. For this quarter, growing by approximately 28.2% as compared to last quarter of FY26. We have reported an EBITDA of about 28 crore with a growth of 23.7% year on year, translating into a EBITDA margin of 13.7%. Profit after tax for the quarter is stood at 17.5 crore, a growth of Substantial 209.9% year-on-year, with a pet margin of about 8.6%, compared to 3.5% in corresponding quarters last year. Repressing and a good improvement of more than 500 basis points. On a consolidated basis, income from operation is true at 141.6 crore, and consolidated EBITDA at around 11.3 crore. EBITDA margin is about 8%. Consolidated profit is at 4 crore, translating into a path margin of about 2.8%. This NOPL project, as we all know, that we have already executing this project, but now in quarter one, we have taken over 100% equity, and hence we are consolidating this. We, as an EPC company, we are maintaining our margins in EPC business. So, that's why if we are considering the standalone financials, which includes the EPC of NOPL, we have overall delivered a strong quarter supported by healthy revenue growth and a resilient operating performance alongside an increasing contribution from solar EPC. Going forward, we remain focused on scaling the business efficiently while it's strengthening margins and execution. As we progress through FY27, our priorities remain centered on sustainable growth, efficient working capital management, and strong cash flow generation, enabling us to create long-term value for our stakeholders. As a solar EPC execution, once this scales up, including the NOPL portfolio, we will continue to closely monitor project-level portfolios, refiables, and cash flow. We believe that with our taking over this NOPL portfolio of 969 megawatt and some other project, almost one gigawatt of project we are executing as a developer, this will help in reducing our dependence on government receivables, and that's where this will help us in improving our cash flow as a EPC business. Our objective is to support the company's growth while maintaining prudent financial management. We believe Vikran has entered F527 with a strong order pipeline, an expanding renewable energy platform, and an established power T&D execution piece. Thank you very much, and I believe we now will be happy to take any questions you have.

Thank you, sir. 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 handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assemble.

The first question is from the line of Ankit

Madhwani from StepTrade Capital. Please go ahead.

Yeah, hello.

Yes.

Yes, Ankit Ji. Please go ahead. Very good morning.

Yes, so there are a few questions from my side. Firstly, could you just highlight the numbers, the revenue recognized from your NOPL orders in the statements? I mean, from this 204 crores.

So it is around 66 crores.

62 crores. 62 crores.

So, is there any reason, if we even consider the effect of NMPL orders, then we can only see 28% growth around on standard basis. So, despite having this large amount of order books, you are unable to execute those orders. So, what are the reasons behind it?

As you know, this is a seasonal business, and especially on the Q1 side, mostly are, as we discussed, that there are some budgetary constraints at our client level, and that's where you will see, generally in the industry, S1 will always remain slightly lower. So, though we have an order book of 6,000 crores plus, and we are targeting to execute around 2,200 to 2,500 crores of orders in current financial year. So, in the same line we are going, and in the previous quarters also, in similar line, H2 will be quite heavy in terms of execution and pushing the growth.

Ankit-ji, were we in a position to answer your question

or do you need any further clarifications?

And secondly, the 29 crores, the distributed amount, it is currently being reviewed by the court. So, you showed that as a, I mean, trade receivable, even though the customer has already, I mean, involved the project. So, what's the status currently?

So, this 29 crore is a clear receivable which is certified by the client. That is only we have kept in the books. Apart from that, our claim to the client is much higher, and we have a very strong case, and that's where you will see that, I mean, we are expecting a positive result from the case, but yes, it may take some time. However, once this case is resolved, definitely we are hopeful to have some positive impact of the result, and we will have some extraordinary profit on that particular year.

And could you just give the revenue application for this quarter? I mean, what was the amount, I mean, the revenue recognized from solar EPC and power PMB, and margin as well?

So, as we have discussed, that around 62 crores we have received from NOPL. Apart from that, there was about 70 crores of total revenue we have received from the solar project, which includes other solar projects which we are working for. And apart from that, the balance, for the balance amount, you can say mostly it was from ESV and PD projects. Water was about 12 crore. And margins overall are in the similar range, but it may happen that because of some provisioning or some fixed cost, which are apportioned on the particular project, it is slightly different. But otherwise, our overall margins remain same for all the businesses.

Margins have seen significant deep in this quarter, so I just wanted to understand the reason behind it.

Yeah, so for particular, I mean, this water, if you see on a consolidate basis, yes, the cost of overall project is higher. Also, there are about, I mean, in water division, though we have started getting the receivables recovery from the same projects, but still it is slow, and that's where we are continuing to having some provision of about 6.5 crore. And because of that, you will find that the overall margins are slightly low in this quarter. But once we get those amounts, these provisions will be reversed.

So, apart from the 6.5 crores provision, there is also the fact that any overheads that we are incurring on the NOPL project is also not getting, sorry, the cost is again getting booked without the revenue. So, because of it, you will see in consultancy that results, you will find the EBITDA to be a bit lower. But on the standalone basis, you will find the EBITDA margins are normal.

See, so what would be the percentage in terms of percentage, I mean, the cost incurred from your NPL acquisition?

So, in terms of NOPL acquisition, the company has just paid about $10,000 for the equity, that is, yeah, so, for the overall cost, we have to go into details for each and everything, so, that's where, in total, we are in line with the EPC business, as we are maintaining around 14 to 17% of EBITDA margin, which is consistent from last four years.

And the same will be carried forward? Yes, definitely. And on the blended level, I mean, considering all the segments?

Yeah, that's what I'm saying. On blended level, it will be many in that range. Yes.

Thank you. Thank you. A reminder to all participants that you may press star and want to ask questions. The next question is from the line of Siddharth Lodhya from Sanchifan. Please go ahead.

Yeah. Hello, sir.

Just one quick question. Wanted to understand the bridge between standalone revenue and consult revenue. There is a 60 crore gap there. So, is this the 60 crore attributed to NOP?

Yes, that's right.

But since NOPL, have we kept it as subsidiary or we kept it as subsidiary, right? So it should reflect in console and not in standalone. So why is that?

No, since in console level, your subsidiary becomes a part of the whole company as one entity, and that's where whatever work we are doing for the subsidiary will not be reflected as your revenue, it will be coming as your CapEx portion in your balance sheet.

Okay, understood. So it is better for us to look at standards on revenue in this case, and that will continue throughout the next.

So, one point, yes, as you rightly said, one point we need to understand that this EPC business was already going on from last quarter. It's just that in this quarter, this has become a 100% subsidy, and that's why this revenue is being removed. Otherwise, this is continuing as an EPC business.

Understood. So, now it's better to look at the standalone numbers, correct?

Otherwise, there will be a slip every time we look at these numbers. So, Sudhaji, once the construction phase is over from next year onwards or maybe in the next couple of quarters, once you see substantial revenue coming from power generated in the subsidiary, only then will, you know, it makes sense for us to look at the consolidated balance sheet or statement rather than looking at standalone.

Sure, sure. Understood. Thank you. Thank you.

The next question is from the line of Mahesh Koshwik, an individual investor. Please go ahead.

Hello, am I audible?

Yes, sir.

Yes, indeed. Yeah, okay. So, this is regarding at a high level, I just want to understand that much of your receivables are stuck at the JALG1 projects of the state government. And you all have, I think, given an approximate timeline of completely receiving and absorbing this by FY28. Am I right?

Yeah, so this overall scheme is extended till FY28, correct.

But will that not result in further requirements for working capital? Do you have to raise money for that?

So, if you understand that in the mission project, yes, there are slight delays and the overall payments are slightly lower. So, what company has done as a strategy is we have fixed our working capital investment into those projects at a particular level. So, whatever amount we are getting from these clients, we are only investing that much and that's how we are trying to close and complete the projects village by village.

Okay, so it won't

affect our working requirements for the future, because we have kept it at a particular level, which is currently, I mean, the overall debtor side, about 120 crore of debtors is due to the emission projects.

Okay, and regarding the NOPL project, it's a fantastic project, a very massive project, but a lot depends on timely completion. So, from that perspective, are you all confident that you will meet all the timelines and be able to get all the revenue on time?

Yes, yes, 100% sure. So, we are pretty confident because it is, so the way we look at it is, it is not a single massive project of 960 megawatts. We consider it that it is 20-30 crore project, you know, 150 projects of each project being. A value of around 20-30 crores. So with this, what happens is it purely becomes a function of money and not a function of anything else. So if money is ready to be infused, you can start all the projects at the same time, finish off the entire 969 megawatt in 4 months, 5 months' time.

Oh, so that is ahead of trading.

As per our plan, we are on track. We are not ahead, we are not behind, we are on track.

Okay, is that a state government project? So, will that also create problems like you face in Jalji when it comes to...

No, no, no. So, the way this project works is that we are putting up the CAPEX so that later on power generated can be sold to the state discount. As things stand, as things have stood for the last three years, four years, Maharashtra Discom has not delayed a single payment when it comes to payment towards power, sale of power, and so that is what brings confidence to us as investors in this project, And also the lenders who are bringing in the majority portion. So they've also studied, they've also understood the... Yeah, so they've already understood the capability and the credibility of the state government and that is the reason why they are bullish on funding the project. And just to give you further information, we've already started receiving revenues or receiving payments for what power we've been selling for the last couple of months.

Okay, thank you so much.

And this is what makes it beautiful. I don't have to wait for the entire 969 megawatt to get commissioned for me to start generating revenues there. So, like mentioned earlier, we've already commissioned around 45 megawatt, which is generating revenue and regular cash flows in the subsidiary.

Okay.

To give way to...

Yes, please. Sorry. Yeah, yeah, just one line I just wanted to tell you on the overall receivables. Since we are focusing that most of the receivables getting in this financial aid itself. So good news is that even the water. What are the Jal Jeevan mission? We started getting some 23 crore. We already got it. In last quarter, this is a very positive. Apart from the Jal Jeevan mission, our mostly projects are divided in three parts. One is ADB funded state government project, which we are getting from Maharashtra payment. Timely payments are there now. The power grid project and NTPC project, what we are executing, they are also on dot timely payments are now, that's always coming. Third, the most important, that's NOPL solar private limited project, what we are, the commissioning, whatever we are commissioning, that on the dot due date, we are receiving payment. And we have completed two cycles and most of the times we have received the payment on the same date, on the committed date. So this is a very positive moment and in the recovery of our receivers, what we kept the target for that Q1, Q2, Q4. And we are meeting and we are going exactly as per the schedule.

So Mahesh, this is what CMD Sir is trying to emphasize is the point that the reason for Pivot was to ensure that our receivers don't get elongated any further. And we are very confident that our execution is matching the planning and our receivers will surely come down significantly.

Oh, that's correct. So, that means Jalji 1 is the only little bit unpredictable on the timeline.

So, even that is also now clear. Just in the last month, Centre has released significant funds to around 17,000 crores to UP government, specifically for Jalji 1 mission. And we've also received north of 10 crores in the last 30 days. So that is giving us a lot of confidence on the project. And now we've even started pushing, reinvesting the money that we've collected into the project. And we are hoping that once the rains are done, we'll be in a position to push even our water segment.

Okay, great. Just last question, regarding this foreign abroad projects, which all are trying to expand to, is the Iran war going to have any effect, meaning in terms of delays or anything like this?

So there was, so we had actually planned for a few, we were actually negotiating a few projects in the Middle East, which has gotten delayed. But apart from that, we also have a lot of opportunities in Eastern Africa as well as Western Africa. So, once these opportunities materialize, then we'll, of course, take it up. There's no material impact on any of our business operations as of now, and any price variation that has happened because of this West Asia conflict is getting mitigated by a pass-through mechanism of price variation claims to our client.

Okay, any Franciscans in Europe?

Europe, we've honestly not explored. If you have any insights that we can use, we'll be very much...

Coming, overall commenting on our overseas business strategy. So what we are doing, though we are receiving inquiry, we are putting, we are quoting, but we are going very carefully for accepting the orders and all, because since domestically we are performing very well, our execution is going on track. And very confidently, we are moving with the domestic. So currently, our major focus is on the domestic and the conversion of our existing project into the collection. At the same time, if we are getting good opportunity, which we are continuously exploring with the high profit margins, so that surely we will be going to the international. So, we have team is placed, everything they are working, and including the solar and power T&D, we are quoting, and then there are some things we have quoted that is in pipeline, but that all depends upon what profitability is coming. So, this is our overall strategy as far as the overseas projects are concerned.

Oh, thank you so much, sir. That's all from my head. Thank you very much.

Thank you. A reminder to all participants that you may press star and want to ask questions. The next question is from the line of Mehra Mittal. For an individual investor, please go ahead.

Thank you for the opportunity. Sir, I would like to ask, like, can you give an update on the 3,100 crore project financing, including the status of the IRDA approval and alternate UBL-led consortium financing?

Oh, okay. So, you are talking about the debt portion for the INOPIL project.

Yes, yes, sir. Correct. So, for that, overall, the project cost is 4,000-odd crores for an OPL, and that's where we are discussing with, I mean, we are almost in the final stage of both the agencies, as you rightly mentioned, and apart from that, also, we are discussing with other agencies, and they are quite positive about this project being, I mean, MSEDCL is a client, So, that's where in the payment terms, in the PPA rate, since it is a non-DCR panels. So, everything is quite positive and they are keen to fund it. Since there are, I mean, Irida has already given a sanction before. It is quite easier for them because as far as the project is concerned, they've already assessed and sanctioned it. The final committee meeting has to happen and that's where we are expecting the final sanction. So we are expecting that in this quarter, we are expecting the disbursement.

Okay, sir. And going forward, will you be looking into such projects like NOPL thing or this is just one of the kind?

No, no. We are bullish on going for a developer mode project. Our intention is always to find good quality projects. At the same time, we will not force ourselves to bid for projects where the equity IRR or the project IRR is not in line. So, we are pretty clear on what we want, and we will definitely get predicts in the future as well.

Okay, sir. And so, you had also mentioned that you are exploring the data center in such an opportunity. So, can you elaborate, like, exactly what the opportunity you are targeting?

Thank you so much. So there are a lot of data centers that are getting planned to get established in India. A few of them are in Maharashtra, a lot of them are coming up in Gujarat. So we are actively talking to these private developers to take care of their power requirement. We've also got inquiries to develop solar parks for these data centers, but as on date, we've not yet got any order. We've quoted for a few, but none of those quotes have been translated or converted into an order for us.

And this is during my last conversation also, we said we have started working on that. And our team is working. We have got a consultant with us. And by end of this financial, we are targeting to have at least one order. This is what we are in the same direction we are working.

Okay, sir. And so what's the revenue potential you see over the years?

It is very difficult to judge this because it is a very volatile, it's not the right term, but there are a lot of changes in the market that are happening. So, depending on how much or what scope the developer allarts to us, the value can change significantly. But no doubt, this has a potential to be a significant portion of our revenues as well as order book going forward. So, that is the reason why we are taking interest.

A very positive note on the data center is, since the data center, all the three major elements like power and captive renewal and water, All three we have present, so we have a natural expansion in the data center, and that is the reason we are more confident and aware that it has been proven our capability into the data center. That's the reason we are discussing and with a very positive response from the developers as well.

Okay, sir. Thank you, sir, and all the best.

Thank you.

Thank you. The next question is from the line of Sandeep Bhaji from MB Investments. Please go ahead.

Sorry, who is that again?

Hello. Yeah, I'm not able to get the name. Can you please repeat that? Sandeep Bhaji. MB Investments?

My question is, can you explain what is the purpose of company, you know, doing business differently in the standalone and console statements?

So, if I understood you correctly, you are asking that in a standalone and consult, there are different businesses. However, please understand that the company is working for EPC when it comes to Vikram Engineering, and at the... Anopian Solar, which has now become a 100% subsidiary of the company. We are, I mean, developing a solar power project, which is having a 25-year CTA signed with MIT DCM, and they are basically generating the solar power and evacuating it to the grid.

Sandeep, your question is, why do we have two separate companies? Is that your question? No, no. Yes, exactly. And why is your June quarter left this time? So, this is also explained in the earlier question. So, because it's a consolidation of both the company's revenues, same revenue, so I have, let's say I've sold a material to a subsidiary of mine, it cannot be considered as part of my revenue when I'm consolidating it. It will be shown as asset in the balance sheet with the work done. The same can also be verified in the balance sheet that is shared with you. Okay. So once balance sheets will be published, you'll also be able to see the impact. So at the end of the day, once the entire project is constructed, around 4,200 crores or 3,900 crores of total revenue that Vikran will be doing for this project will reflect in Vikran's books across multiple financial years. But when consolidating, the revenue will shift onto the asset side. I hope I was able to answer the question. And if your question is, why do we have two separate companies? That is, that is to ensure that tomorrow if I want to sell off these assets to a different entity or to do an invent or to an IPO, it becomes very easy because all the assets are already carved out into a special purpose vehicle. Fair enough. Also, can you comment on your YOI June quarter? Why has it gone down? So, again, so that is where I would want you to look at the standalone balance sheet. If you look at our standalone balance sheet, our YUI has rather increased by around 28.2% from 159 crores to 204 crores. This is the figure that I'm saying on revenue from operations, but when you look at the total income, it has increased by around 34.6% from 159 crores to 215 crores. So, it is not a dip. This transition is simply because this is the first time the company has published consolidated versus standalone balance sheet. So, I would request is the time the construction for this project is happening, is ongoing. I would request all of you to refer to the standalone balance sheet or standalone financials rather than, you know, the consolidated ones. The consolidated ones will only be, you know, impressive once the client is fully commissioned and fully operational when we get to see 500 crores of revenue coming in from that project and from sale of power and, you know, very good high EBITDA of 80-85%, 89% EBITDA. Next year onwards.

Just a follow-up question, when is the completion expected? Within the next 12 months. Thank you so much.

Thank you. The next question is from the line of Vishnu Agarwal from PD Wealth. Please go ahead.

Hi, good afternoon, friends. Am I audible?

Yes, sir.

Thank you for the opportunity, sir. I have a question related to the NOPL project. I think you have mentioned that the NOPL project is on track, and you have just mentioned that actually it will be completed in 12 months. So, we are looking at the next quarter actually for it to be completely finished?

Yes.

Okay, sir. And subsequent question to that, actually, you know, on a standalone basis, I have seen that the realization from NOPL was around 62 crore rupees, right? Correct. So, can I assume that same amount of capex is done on the console basis, actually, you know? So, is that, Ajamsan, correct?

It will not be in similar amount. There is also profit involved in the 62% that is given. So, revenue minus profit is the investment that we've made into the project.

Yeah. And for the Q2, Q3, and Q4 of this financial year, what kind of a revenue we're expecting from NOPR, sir?

So, again, these are numbers that we have, of course, planned. But please understand, there can be slippages between one quarter to the next. We are planning to do around 1,500 odd crores of revenue coming in from this project. And this is, of course, a conservative number, but yes, 1,500 crores is what we're planning to do from this project. And like already available, around 62, 62 crores is 62, 64 crores is what we did in Q1. We are planning to do around 100 crores in September. We will do the remaining 1,400 crores in H2.

Okay. So, collected for the rest, the remaining of this financial year, we are looking at another 1,500 crore rupees from this project. Is that correct?

Correct, correct. Can we make it?

So, until that happens, actually, I think our console will always have some negative revenue because we will be spending a lot of money actually in this project.

Money as well as other resources also. So if you see the company as a Vikran when we are working for an EPC, we are, though this because of consultants looking like we are working for a subsidiary, however, this was an existing project which we have taken over. It is a part of our order book and we will keep on deploying our resources, our manpower, our working capital, everything for the same project as well.

And how are we trying to finance this actually amount, sir, for NOPL, sir? Where are we getting the funds from?

So we are discussing with a few agencies. It was already assessed and sanctioned by IRDA before we have taken over. So, that way, we are quite confident on that. But apart from that also, we are working with some other lenders. And we are expecting to close the financial closure in this quarter itself.

Okay, sir. And my last question is related to the dispute amount of 29 crore rupees. When do you think we will have the final clarity on that, sir?

If it is in the court, we cannot give any specific timelines. However, what we can say is yes, we have a strong case and we are quite hopeful and positive that we will get a positive outcome of it.

Thank you so much for the opportunity, sir. Thank you.

Thank you so much, Vishnaji. Thank you. The next question is from the line of Ashutosh Ahtsari from USGI. Please go ahead.

Hello. Can I ask you?

Yes, sir.

Yes, please. Yeah. So, Nakul, I just wanted to understand this. 4,000 crores of NOPL you have taken in the order book. So, rest of 2,300 crores would be the standalone.

No, no, no, no. So, I'm sorry. Ashut, I just want to correct you. So, 4,000 crores is not NOPL. 3,500 crores is NOPL including GST in our current order book.

Okay, okay.

And the remaining is power T&D and water projects.

Okay, and so as you said, this 3,500 crore order book will be executed in the next 12 months. So that revenue will accrue as and when the sale will happen. Okay, so balance 3,000 of that, how much execution you are expecting this year?

So, like what Stephen has mentioned, we are looking at around anywhere from 2,300 to 2,500 crores of revenue this year. So, if you consider 1,500 crores comes from this, so out of 974 odd crores will come from other businesses.

Okay, so would that be a fair assumption that if NOPL wouldn't have dropped in, you would have been declining revenue or a margin this year?

Not really. So please understand, every company has, you know, a bandwidth to execute orders, correct? So, if at all it was not NOPL, I would have bought some other project, amounting to similar amounts or lesser amount or more amount, that can be debated. But we would not have stopped or not have improved the benchmark of the bids that we would have done. So, as mentioned earlier, we are now very choosy, very picky about what orders we go for. We are trying to improve our margins in the new orders that we take, rather than go for aggressive bidding and take a project at 8%, 9% EBITDA margin. Okay, just to answer your question in a single line, this project has given us the confidence and the opportunity to target for higher, higher margin orders from the market rather than go into stressful situations and take low margin orders.

Okay, and the project funding, you said the 70-30 would be dedicated?

We are looking at around 75-25, and we are expecting our disbursement to happen within this quarter.

Okay, and you confirm that the 1,000 crore of revenue, the capex which will be required, that will be fully from the internal accrual?

Yes. If at all any further debt is required, if at all any shortfall is observed, we already have backup plans, maybe spoken to lenders. We already have a CSA of around 1,000 crores, which is a subsidy of around 1,017 crores coming into this project, which can help us refinance the project immediately. And alternatively, the revenue from this project has already started, which also contributes to our equity portion. So, yeah, so multiple backups available to ensure that the project is executed, and there's no issue when it comes to equity commitments or equity visibility. And mind you, we are talking about ensuring equity is deployed here without adversely affecting any of our other projects. So, yeah.

Okay, and the Sorry to interrupt, Ashutosh, sir. Please rejoin the queue for the more question. The next question is from the line of Dipti Ganta Das, an individual investor. Please go ahead.

Namaskar, sir. I am Audit. Yes, sir. Namaskar. Yes, sir. Namaskar. Sir, I have two questions. I am an individual investor. Sir, there is one question that we have so much debt, the repayment and interest will increase in the coming years. Thank you.

Thank you so much for asking this question. I have two questions and I will give you two answers. Your second question was that if there is any issue of flooding, what is the issue of our sites? More or less all of the drought-proven sites. So if you tell me, there is no rain. Which is the point of concern.

Thank you. It's not covered by the insurance.

First question, if you want to ask me about the insurance.

Thank you. Thank you for your question about that interest. That interest. So these are my 25 years of PPA, which is already signed with the government. So whatever power generation is there, we will be getting for next 25 years the sale of power. And that will be much sufficient to cover the interest and the repayment portion. And further, there will be surplus available which can flow to the holding company and to the investors for NOPL project. So, that way, this project is sufficiently covering all the debt requirement interest as well as equity portion.

Mr. Dajji, you have to answer a single line. We are very confident that this project will be a debt service without putting any stress onto our regular EPC business.

Thank you. The next question is from the line of Mahesh, Kaushik, an individual investor. Please go ahead.

So, this is regarding the debtor days. I saw that the debtor days is around 296. Can I presume that this is the peak and it will start going down from this level or it will rise further before it starts going down?

No, this is, you can consider this as a peak, and it will go down from here. So, as we discussed, last year, there was some issues related to Dalvin emission projects that are also easing out now, as well as the investment which was done for solar projects also has started coming back. So that way, we are quite confident that there will be a substantial improvement in terms of data base by end of this financial year, and also some improvements you can see in H1 result as well.

Thank you.

Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to Mr. Rakesh Madkerker for closing comments. Over to you, sir.

So, thank you very much, all the investors, for your valuable questions. And with this, since we are progressing as per our current commitment on the executions, improvement in the top line, bottom line, and reduction in the working capital cycle, Whatever we have planned, quarter on quarter basis, we are exactly on the same line. As we have mentioned now, till we commission this NOPL project, so kindly refer only stand-alone balance sheet to get a true picture of the organization, our growth plans, and our, even for the Q1, stand-alone profitability, and that the jumping of the pack from to 212% is very remarkable. And this is really, we have putting a lot of efforts in growth and the execution momentum. Very true, very prestigious, important transmission line. We have a commission that is the pride for the nation. And then we, our order book stands very healthy. And that is all very profitable orders we have. We have strengthened our team. So we are looking forward to the robust growth in the organization. So this is, in short, I need to tell and insure all our investors. So kind of have some patience till for the end of this financial year. As I committed, by end of this financial year, we will be the cash positive. If we commission 650 megawatt of this solar NOPL, so it is all moving in a very post-direction. And if you see the execution of two and a half months, the NOPL, so we have shown a very high growth rate of the execution. And which is clearly visible as we are 265 megawatts out of 969 megawatts, we are in a very advanced stage of execution. This shows our commitment to order what we take in our hands. So thank you very much. Thank you all for your patience, listening, and confidence of the Vikran Engineering Limited.

Thank you, ladies and gentlemen. That brings us to the end of today's conference call. On behalf of Wikran Engineering Limited, I would now like to thank the management team and all the participants for joining us today. You may now disconnect your lines.