Vikran Engineering Limited (VIKRAN) Q2 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the Q2 and H1-FI27 earning conference call of Vikram Engineering Limited. We are pleased to have with us the senior management team of Vikram Engineering Limited. As a reminder, all participants will win the lesson only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference call me content forward-looking statement about the company, which are based on the beliefs, opinion, and expectation of the company as on date of this call. These statements are not the guarantee of future performance and involve risk and uncertainty that are difficult to predict. I would now like to hand the conference over to Mr. Rakesh Markheadker, Chairman and Managing Director of Vigran Engineering Limited, for his opening remarks. Thank you and over to you, sir.

Thank you very much. Good morning, everyone. On behalf of Vikran Engineering Limited, I extend a warm welcome to all participants joining our Q2 and H1 FY27 earning conference call. We appreciate the continuous trust and support of our investors, analysts, and other stakeholders. Today, we have Mr. Nakul Markhidkar, our home-time director, Mr. Vipul Markhidkar, and Mr. Ashish Bhaiati, our CFO, along with our investor relations advisor firm, AdFactors PR. I hope you have had the opportunity to review our financial results and investors' presentation uploaded on the stock exchanges and our company websites. On the financial front, we have seen healthy growth in our standalone business during the first half of the financial year. Our standalone revenue from operation grew by around 27% YOY to 424.12 crore compared with 335.45 crore in X1 FY26. Our profit after tax also increased by approximately 71% to 25.37 crores. These numbers reflect the progress we have made in scaling our business. While we recognize that operating margin remain an area of focus, we remain committed to improving execution efficiency and delivering sustainable growth as we move forward. During the period, we received two significant orders from PowerGate Corporation of India Limited, one order valued at approximately 120.69 crores for 400 kb GIA substation package from PowerGate, covering the Bodogra and Rajput substation. Also received another valued approximately 153.76 crore from PowerGit for the 400 kV AIS substation packet SS136T for the TBCV at the Tunku 2 Puring substation. The scope includes substation work with the civil works associated with STATCOM installation. This is the first STATCOM project. We got it. This is very, very important project for the nation. We also achieved an important execution milestone with the commissioning of 132 KVM. Miao Nam Sai Transmission Line in Arunachal Pradesh for the Power Grid Corporation of India Limited. This is a very prestigious project of Government of India, and after completion of this project, we could be able to give the power to the very remote area of India in Arunachal Pradesh. The project involves approximately 40.6 km of transmission line and 138 tower foundations. Apart from this, we are very pleased to express that we have commissioned another very important GIS, 400 kg GIS substation for power grid at Malayar Kotla. This is, again, ahead of the schedule by approximately two months, and this is the first. of its kind in India. We have commissioned this administration with their process bus system. So, Vikran become the first company to execute this project in India for the power gate as a process bus system. In Solar EPC, our NOPL project covers 152 locations across Maharashtra with a plant capacity of 969 MW AC equivalent to 1163 MW P. VITRAN's EPC contract for this project is valued at approximately 3,517 crores. Recently, NOPR entered into a long-term facility agreement with an Ereda agency for financing of up to 2,941.19 crores against an estimated project cost of approximately 4,201 crores. These developers These developments represent important milestones across our business. Our focus remains on expanding our project portfolio while maintaining execution discipline and financial prudence. I will now hand over to Mr. Nakul Markhedkar, our full-time director, to share further perspective on project execution and our business priorities. Thank you very much.

Thank you so much, sir. A very good morning to everyone joining the call and Shubhad and Teres to everyone. I shared a few points about on our execution status and operational priorities, particularly with respect to our transmission and solar EBC business. In our power transmission and distribution business are the recent orders from the Augured Corporation of India's strengthens our presence in high voltage substation infrastructure. Our focus is on effective project planning, procurement, and coordination of site activities to ensure timely execution in line with the contractual requirement, which time and time again, we've proved that we excel in. We also achieved a very important milestone, as mentioned by CMD, sir, about the commissioning of various transmission lines in Aranachal. The project involved very tough terrain, where around 40 kilometers of transmission line and covering 138 tower foundations in the hilly terrains and forest-dense forest areas of Aranachal. This Yeah, sorry. Its successful commission reflects on our ability to execute transitional projects in the most challenging geographical conditions. Coming to our solar EPC business, the NOPL project is a significant undertaking covering 152 locations across Maharashtra with a plant capacity of 969 megawatt AC equivalent to around 1.16 gigawatt peak. Given the scale and distribution nature, execution is planned across eight clusters, allowing work progress across different locations in a phased and coordinated manner. This also helps us to focus our resources in a phased out manner. At present, the company is able to commission nearly 10% of the required capacity even before the start of first disbursement from the lender. So now we have commissioned around 18 sites with a capacity of nearly 90 megawatt, and we are in advanced stages for further 100 megawatt, which is expected to complete in the next couple of months. The revenue generation from solar projects has already started and is expected to cross around 50 crores in revenue in the second half of the current fiscal year. At peak capacity, the power sales would reach over 500 crores from this facility. On the financing front, MOPL has entered into a long-term agreement with Ireda for financing 2,941 crores against an estimated budget cost of 4,200 crores. The loan carries an interest of 9.15%. The disbursement of the sanctioned loan will be aligned with the progress of the project execution. Since the project is divided into eight clusters, work is being undertaken across different clusters and phases, and the loan funds will be available to support execution requirements as the project progresses to subsequent stages. This phase approach the availability of financing with the project's execution schedule and funding requirements. Our focus is on ensuring close coordination between financing, procurement, and on-ground execution. So the project progress is planned in an efficient manner. Across our business verticals, we continue to prioritize on-time execution, maintaining quality standards, and efficient resource utilization and close monitoring of the project milestones. We remain conscious about the working capital requirement of large EPC projects and importance of maintaining financial discipline while scaling our operations. As we move through the second half of FY27, our emphasis will remain on executing projects in hand and strengthening our operational capabilities and ensuring growth is supported by disciplined project management. With those remarks, I would like to hand over to our Chief Financial Officer, Mr. Ashish Bhaiati, who will take you through the financial performance for Q2 and H1 F527. Thank you.

Thank you, Nakulji, and good morning, everyone. Today we are getting here on the auspicious occasion of Dhanteras. It's the first day of our Diwali festival, so happy Dhanteras to all our investors and stakeholders. I hope you have had a opportunity to review our financial results for the second quarter and the first half of the fiscal. I'll begin with our standalone financial performance, followed by the consolidate numbers, and a brief update on the cash flows. The general financial performance for the quarter, for Q2 FY27, revenue operations stood at 220 crores compared to 76 crores in corresponding quarter last year, which has resulted in a growth of approximately 25%. EBITDA for the quarter stood at 20.12 crores as compared to 25.43 crores in Q2 FY26. Ebitda margin was at 9.1% compared to 14.4% corresponding to last year. The profit of the tax for the quarter is at 7.87 crores compared to 9.12 crores in Q2 FY26. Fat margin stands at 3.6% compared to 5.2% in the corresponding quarter last year. Moving to the first half of the fiscal year, revenue from operations increased to 424 crores. As compared to 335.45 crore in H1 F526, representing a good growth of 26%. EBITDA of H1 F527 stood at 48.13 compared to 48.09 corresponding to previous year. EBITDA margin stood at 11.3% compared to 14.3%. Profit after tax for the first half increased at 25.38 crore as compared to 14.78 crore in H1 FY26, representing a growth of approximately 72%. Pat margin has also improved to 6% as compared to 4.4% in corresponding last year. Overall, our standalone performance reflects a healthy revenue growth during both the quarters and the first half. While EBITDA remains broadly stable in H1, and EBITDA margin was lower as compared to last year. However, the PAT and PAT margin recorded an improvement during the first half. In terms of consolidated financial performance, our revenue for Q2 F527 stood at 211.884 crore as compared to 176, again giving a growth of about 20%. which is reflecting non-NOPL projects and consolidated EBITDA for quarter was about 22.26 crore compared to 25.43 crore in corresponding quarter last year. EBITDA margin is stood at 10.5% compared to 14.4 in Q2 FY26. Consolidated profit and profit after tax for the quarter is stood at 2.75 crore as compared to 9.12 crore in corresponding period last year. PAT Margin was low at 1.3% compared to 5.2% in last quarter. The main reason behind the reduction of PAT Margin and EBITDA Margin was the higher direct cost, which is attributable to the escalation of these direct costs. So, these costs can be passed through to client because there is a price variation clause where we can pass on the escalation to the client. However, as per the conservative accounting policy, the company recognizes the cost immediately. However, the price variation revenue can be recognized only after there is a certification from the client. So, we are expecting the certification will happen in H2, and that's where this revenue will be reflecting. So, quarter-on-quarter, it may be slightly plus or minus, but overall for the financial year, we are confident to maintain our margins. For H1 FY27, consolidated revenue from operation stood at 353 Crore as compared to 335 Crore in H1 26, registered a growth of about 5%. Consolidated EBITDA for the first half is 33.53 as compared to 48 crore in H.126. The EBITDA margin is stood at 9.5% as compared to 14.3% for corresponding period last year. The consolidated profit after tax for the first half is stood at 6.74 crore as compared to 14.78 crore in first half of F.I.26. That margin is 1.9% compared to 4.4%. In terms of cash flow and financial discipline, our standalone statements reflect a net cash generation from operating activity of 258 crore during the H1 F527 compared to net cash used in operation activity at 166 crore in the last half, first half. This represents a significant improvement in operating cash flow generation during the first half. We continue to closely monitor our receivables, contract assets. Project expenditure and collections as a part of our working capital management. As an EPC company, maintaining an appropriate balance between project execution, working capital requirement, and cash flow remains very important for us. Our focus continues to be on timely billing and certification, also efficient collection and discipline management of the project-related expenditures. To conclude, the standalone results demonstrate a healthy revenue growth and improved path for the first half of FI27. While EBITDA margins remain an area of focus, we continue to work towards strengthening operating efficiencies, improving the cash flow management, and ensuring that our growth is supported by the discipline execution and financial management. Thank you for your valuable time and participation. We will now be happy to take any questions you may have.

Thank you so much, sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchstone telephone. If you wish to remove yourself from the question queue, you may please 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. First question comes from the line of Prathamish Savant with Abacus Asset Managers Ltd. Please go ahead.

Thank you for the opportunity. A very happy Diwali to the Vikrant team. Sir, my first question is on front of, you know, your clarification on the EBITDA margin. You said that, you know, certain price variation clauses will allow you. So, this is with respect to our NOPL project or this is with respect to the non-NOPL book EPC part?

Thank you so much for the question. This is for the non-NOPL project, mostly in MP and Maharashtra project that we have. So, around 13 to 16 crores of price variation revenue is not yet recognized.

Okay, okay. So, that will straight away add to EBITDA in the coming part. Correct, correct, correct, correct. Okay, glad to hear. And sir, secondly, so of the 6200 crore order book that we have, roughly 30% is from the TND. So this is largely substation EPC, right? So substation typically has a double digit 15, 14 to 15%. Like when we see other substation EPC players, they kind of post 15 to 16% of return margins. So should we assume same similar margins for us in these projects?

Yes, yes. So our current guidance is that we will maintain the similar EBITDA margins. Uh, around 15, 15 odd percent, plus minus 1 percent here and there. Uh, recently, what we've also observed is because of this, uh, uh, West Asia crisis, we've observed that a few items which do not, are generally not covered by price variation has been significant increase because of the increase in crude oil pricing. So, I'm hoping that the pricing, by the time we procure those items, the oil levels should come down to a bit of manageable price, but yeah. So, rest all impact is more or less covered.

Okay, okay. And finally, on the commissioning of the NOPL part, we are saying that, you know, the 10% of the project has been executed and commissioned. So, do we see in the coming quarters roughly 50 crores divided by 4? So, roughly 12.5 crores kind of a monthly annual or quarterly revenue from power generation sales? Will that be?

From these projects? Yes. Okay, because in the current quarter, we posted 6% from every quarter. Yes, correct, correct.

So, going ahead, we can see a 12 crore or a increasing run rate from that from the generation in the coming quarter. Yes, correct.

So, overall, for the H2, we are expecting about 40 to 50 crore of revenue from the sale of power.

Okay, 40 to 50, but we'll be on the number, given we have already commissioned 10%, because I think we should be in line of commissioning 35 to 40% of this NOPL projects by the year end. So, the appropriate revenue recognition should be much higher than 50 crore, right?

So, Rathamiji, here, 500 crores, 10% is around 50 crores. So, that is the annual expected from the 10% that we've already commissioned. So, in the first half, from whatever we've commissioned, we expect 100 megawatt. In the second half, we should deliver around 25 crores. Plus, there will be a few other projects that we are commissioning around 150 MW in this quarter, which should add revenue in the Q4. So, that is where the guidance of 50 crores is coming from the second half.

Okay. Okay. Thank you, sir. Thank you. Best of luck.

Thank you so much, Pratameshi.

Thank you. Our next question comes from the line of Rajesh from Gen Investment. Please go ahead.

First of all, I wish you a very happy Givali to Vikram team. My query is regarding this NLPL project. This NLPL project is expected to complete 100% by when, and when will the revenue generation start fully across the entire year?

Uh, we are expecting, uh, completion to happen by the end of, uh, Q1 or a little bit of spillover can happen in the Q2 of, uh, FI28. But, yeah, so peak, uh, peak generation will start from Q2.

Okay. And, uh, with the final score plus revenue after Q2 for one year and 85% EBITDA, how much cash can we generate in this in terms of percentage?

Okay, so here, okay, if at all I remove the depreciation and other, those are counting. So, how much would it be approximately? 100 crores or 100 crores.

That is free cash flow.

So, 100 crores or free cash flow can be expected. from this project every year. The exact PBT-pack margins I'll communicate to you by the end of this call.

Okay, okay, fine. So can you say that, yeah, please.

So the EBITDA, EBITDA will be around 80, sorry, 85%, 88%. So interest costs will be the only thing that should get minus removed from this. So it should be significant. But yeah.

So, can we say that from Q2FY28 to Q1FY29, which is a full year, it will have a 100% generation and no expenses would come to the standalone financial?

Yes. No. It will come in the consolidated, not in the standalone.

Correct. It will come in the consolidated because what is happening, at a standalone we are doing well, but because of this NOPR, the consolidated is falling down. Thank you.

Thank you so much for your question. Thank you.

Our next question comes from the line of Saurabh Singhvi with Mahapragya.

I'm sorry, just to communicate, Pat, including the position will be around 70-75 crores. Around 12%. So, this is just to answer the previous question.

Thank you, sir. Now, Saurabh, you can please proceed with the question.

Good morning. First of all, happy to be early to all the team of the Kranian. My question is with revenue. Hello, am I audible?

Yeah, yeah, very clearly audible.

With revenue increasing but bad declining, sir, what specific operational improvements will drive margin that recovery over the next two quarters?

So, yeah, there are a couple of reasons behind it. As mentioned earlier by Payetiji, there's a little bit of price variation revenue recognition that has not happened in this quarter, which is expected in the subsequent quarters. That is one. And secondly, one of the most important factors was the, you know, deferment of execution in NOPL. So, because we have not received any disbursement, we decided not to increase our exposure in this project. So, we only focus on completing, you know, projects which already had significant work done, thereby not spreading ourselves too thin. Now that we are expecting the disbursement to happen in, you know, before next week, where all our formalities have already happened. So now we'll start pushing and thereby our revenue is going to increase significantly and we'll take care of all the overheads that, you know, has caused a little bit of decline in the EBITDA margin this quarter.

Okay. Sir, my next question is that how will Vikran Imaging will pay the interest on its IRIDA loan when its cash position is already tight, sir?

Sorry?

What is that? Can you please repeat? Hello?

Yeah, yeah.

Am I already working? Yeah, can you please repeat the question? Sir, my question is how will Vikran will pay the interest on its IRIDA loan when its cash position is already tight?

So the way, okay, I'll move this.

So with reference to IRDA loan, there is a period for that. Second is the cash flow from the solar generation will be sufficient to meet the interest as well as afterwards of the loan also. There will be further positive cash flow left after all these things when we are reaching at a peak power generation, which is expected post one year.

So, to add on to what Baipi has mentioned. The way these solar projects work is the entire cash flow, revenue, cost is modeled properly, and there are multiple scenarios which are calculated. Even the worst case scenario is enough to take care of all the loan repayments, including interest and principal. So this is how even the lender assess the project, and that is how the loan is sanctioned. So, servicing interest of the loan is not at all a challenge for the project. This is mostly self-sufficient project. Rather, it gives 130 crores of free cash flow to the investor, that is Vikran Engineering.

Okay. And so, the company sustained positive operating cash flow in the coming quarters without railing only large collections from all receivants?

Yes, so going forward also, since now NOPL project has started giving us the positive cash flows, going forward as well, we are expecting a good operational cash flow from these projects. As you know, for solar projects, the cycle is short as compared to the power and water business. So that way we are expecting the receivable cycle to reduce further from here, and that will help us in improving our working capital cycle days.

Okay. Thank you, sir, for the best that return will perform much better in upcoming quarters.

Thank you. Thank you for your wishes.

Thank you. Next question comes from the line of Chaitanya with Capital Advisor. Please go ahead.

Hi, sir. Good morning, and thank you for the opportunity. So, my first question is, what are the major activities planned for the NOPL project over the next six months, and are there any delays or challenges related to the equipment procurement?

Oh, thank you so much, Nan. So, we don't see any delay in procurement of the equipments because we've already placed the orders in. We've already blocked all the capacities required for this project, and we've planned well in advance. The only challenge that we see is the last 10-15% of the land, the 10% of the land that we have, which is not yet identified. But we're confident that we'll be able to work it out to the point we get to that land. Okay, now the challenge that we were facing was the disbursement, and now that it is cleared, we are positive that we should be able to push the project. Six months plan is very evident. Actually, we are planning to do around 500 megawatts is what we are planning to push this financial year.

Okay, sir. I'm sure my next question is, with a part of NOPL operation has started, has it started generating cash flow, and when will this meaningfully contribute to our financial performance?

So, already this year we saw, sorry, this first half or last quarter itself, we saw around 4.66 crores of revenue and free cash coming in from the project. And, uh, uh, peak, of course, will peak meaningfully in, uh, in some Q2 onwards, uh, next year.

Okay, sir. And apart from NOPL, does the company plan to develop and operate additional renewable energy projects?

Yes. So for this plan, I'm not sure if you have followed the company, but we are planning to set up an international base also in UAE. The whole point of doing this is so that we can build long-term relations with large investors who will co-invest alongside Vikran to develop large projects, where at the end of the day, Vikran wants to hold a minority stake in the project and ensure EPC comes to us. We've already identified a few projects internationally, which would bring sizable revenue as well as margins for the company. And yeah, hopefully we should be able to give you a good news by next turning call.

Definitely, sir. Looking forward for the good news, and thank you for the opportunity. Once again, all the very best for the future.

Thank you so much. Thank you. Next question comes from the line of Mahesh Kaushik, an individual investor. Please go ahead.

Yeah. Sir, my question is that you all have delivered around 424 crores worth of revenue. To meet the overall annual guidance of around 2,300 crores, you would require to deliver 1,875 crores in H2 alone. Are you on target for that?

Mehdi, if you can even check our previous conversation, even in that also we had indicated that by the end of Q2, we were actually targeting around 500 crores of revenue, of which we've slipped only because of NOPL. If you, so in Q2, our target was to do 200 crores from non-NOPL projects and 100 crores from the NOPL project. And we only saw a shortfall in the NOPL side. We are pretty confident that we should be able to push and get revenues from NOPL as well. Just to reiterate, we are planning to do around 900 odd crores in, we are hoping to go around 850-900 crores in Q3 and the remaining in Q4. Now, with the radar investment right around the corner, we will push our operations to ensure revenues are met. It is, uh, it is no doubt a challenging, uh, task, but, uh, we should be, we should be able to do it.

Okay. And, uh, being cash positive, that was also a milestone, which was, uh, declared. So, uh, would this company be cash positive by financial year end?

We are already cash positive and we, we shall remain cash positive, uh, throughout the year. Oh, yeah.

And, uh, Thank you. Regarding the margin, will you be able to maintain the 14% plus margin for the whole year?

Yes.

Despite all the cost inflation possibility that may be there?

So, there's only a very small portion of our business which is not covered by price variation. So, the impact of that small portion can be plus or minus. But most of our... Purchase or most of our sale is passed through. So, yeah, covered by price variation and it does not really impact our bottom lines.

Okay, regarding the debtor days, last quarter we had discussed that around 296 debtor days would be the peak and it would come down. So, I hope we are still on track for that.

Yes, so if you see currently, the overall data space has already came down. As compared to last year, this has almost around 200 plus crores has been reduced in data. And further, with the disbursement of annual sales, overall working capital cycle can expect it to improve further from here.

Any guidance by year-end how much it will come down by data space?

So, in current year, yes, with the Anupil project and the solar project, the cycle is small. So, we can expect at least about 40 to 50 days reduced from our data days as compared to the last year. And to further strengthen based on the new projects what we are taking, we are targeting more on such type of project where the cash flow is. In our control, and we can have a better terms as far as JTBs are concerned.

Oh, that's great. Did we receive any funds from Jalji 1 project in Q2?

Yes.

We've received significant funds around 40-odd crores was received. 45 crores was received in Q2. And this is going to continue in the subsequent year. I'm sorry, I'm sorry, 45 is in the entire S1. So, yeah, this is going to continue, and we've seen, so we are in touch with all the government authorities related to Jaljivin Mission, and they are confident that the fund flow shall continue and roughly rather improve. So, now they've also started to chase us to do more in water.

Oh, that's fine. Great. Yeah, so thank you. You all are doing a great job. Please keep it up. Thank you so much.

Thank you so much. Thank you.

Thank you so much for the conference.

Thank you.

Next question comes from the line of Chirag Gandhi with Estrelate Investments. Please go ahead.

Yeah, hi. Good morning. Thank you for the opportunity. Can you hear me properly? Yes, we can hear you. Yeah, I just had two clarification questions on standalone numbers. Out of 220 crores of revenue in standalone, how much is contributed by MOPL here?

Just this quarter, not much?

For this quarter, about around 7 crowd was recognized from NOPL. Balance was mainly from the other non-NOPL projects.

I understood. And in the cost side, how much of it is due to NOPL? Like you said, you had a higher cost, but absorption was not there.

So that was mainly due to non-NOPL projects, which are having the escalation clause, and there the price variation has to wait till the client is approving those particular claims what we made for price escalations.

No, no, I understood that part. I'm just trying to understand how much of the cost is growing because of MOPL in the standards of payment.

Honestly, I do not have that figure, you know, readily available, but if at all you can share your email ID with the team, I should be able to pass on all that information. So, mostly it is the overheads that have, you know, not contributed. So, it might be in the range of a few crores, 10-15 crores, or maybe less. I don't know. So, I don't want to quote figures without confirmation. So, we'll do that.

Overall, for the S1, you can see our investor presentation where we have clearly mentioned about the reconciliation of standalone and consolidated and what is the impact of NOPL for the whole S1.

Yes, yes, I saw that.

So, anyways, in-depth figures can be shared later, please.

Sure, sure. So, the next question is this price variation certificate, which we are expected from the clients. Can we expect them to be received in Q3 or that we go to Q4?

See, so, some of it will come, but most of it will come in H2. So, this is, you know, the cost that we have to carry. The interest cost will keep accruing on this. But, yeah, so this is based on progress of work at site. So, yeah, some of it will come in Q3, most of it will come in Q4.

Understood, understood. And the increase in finance cost is because of the higher cost of raw material that we procured. It is because of that to fund that?

For finance costs, mainly it is some NCD which we have taken. That is the impact because we have to push the overall project of NOPL and that's where we are infusing some funds. So as you can see, there is a good fund inflow from the investing activity, which we are doing for NOPL project. And, uh, that's where we are able to reach, uh, almost nearly about 100 megawatt of site, which is near completion or completion commission. So, uh, you can see 400, 450,000 of asset is already, uh, there in this company and further around 100 megawatt is at advanced stage.

So, going forward, we should expect a similar interest cost or there should be some moderation in this number?

There will be some interest cost will continue at Vikram level because whatever funds we have infused in NOPL, that will remain, I mean, that will cause some interest at Vikram level. But yes, we are expecting a good cash flow from our subsidiary and that's where we will be able to repay these loans as soon as possible. And reduce the interest cost.

And the last question is just a clarification. When you say that disbursement was not happening from the MOPL, rightly so because of the time taken to get the funding from the HR, but in the meanwhile, the work was going on. It's just that the revenue recognition and the costs were not booked in the standalone. That is how we should interpret it.

So, the work was going on. As far as EPC work is concerned, Vikran is working and commissioning on NOPL projects, and those revenue is being recognized here. So, in the H1, as you can see, around 70 crore, and till now about around 700 crore plus, which we have been recognized for the EPC work of NOPL.

Okay, so what do you mean when you said there was a delay in disbursement, hence the revenue recognition was not happening?

So we were not able to push. So, yeah, so this is basically what we are indicating is that we wanted to do a lot more, but because of the delay in data disbursement, we did not push for panels. Let's say it's very simple. 60% of the cost is of solo panels, right? So we did not send the panels. Uh, aside for, for the project to get commissioned, but at the same time, we ensured that that is the groundwork, uh, that is required for commissioning towards completion is, is happening, right? So the remaining 30% we've, we've invested, we're pushing and, uh, uh, you know, things should happen, but the 60, 65% panels, we've, we've not seen. Hence the revenue recognition did not happen. I hope I was able to clarify.

Understood. Understood. Thank you. Thank you. Those were my questions. Yes. Thank you so much.

Thank you. Our next question comes from the line of Karan, Kubeidia, an individual investor. Please go ahead.

Thank you.

Good morning, everyone. Hi, Karan. You may please proceed ahead with the question.

My question is that what will be the interest cost in the coming quarters? I mean, can you give some guidance about that? How many crores will be the interest cost per quarter?

Okay, the approximate interest cost, borrowing cost, I can give you an ROI figure. We're looking at around 11, 11.5%. So, I honestly, okay. Quarterly interest costs can be calculated accordingly. Approximate number of interest costs.

Yeah, so around 18 to 20 CR, we can expect as a quarterly interest cost. So, our overall interest cost for the whole year, as last year it was about 65 crores, we remain around 70-75 crores for the whole year. Yeah, current FY27. And if you are asking about NOPL, whatever loan will be disbursed, based on that at 9.15%, the interest cost will be reorganized and again capitalized because that is a work in progress.

Okay, but sir, I want to know the whole interest cost per quarter combined.

Yeah, so for Vikran, the interest cost will be, as we discussed, about 18 to 20 crore. Per quarter.

Okay, thank you. Happy, Diwali, and happy to have this to your team.

Thank you so much. The question is the same.

Thank you. Next question comes from the line of Anboli DR, an individual investor.

Hello. What is your name again? Good morning, sir.

Anboli DR. Okay, can you repeat your guidance as a consolidated basis?

Oh, consolidated figures? Honestly, I'm not sure. I can give you, okay, I can give you consolidated also. Consolidated revenue should be around 750, sorry, 950 to 1000 crores. For the entire year, but overall, we should cross 2300 crores on the standalone basis, and power sales revenue will get added on top of this.

So, yeah. Okay, if VAR persist, do you expect same kind of margin? Even what?

Yes, I don't, I don't see, like I said, like I mentioned earlier, a very small, you know, percentage of our, of our purchases are, you know, not part of the pathway mechanism that we have with the clients. So, yeah, I don't see it that big of an issue. But let's say if, if at all, there's a significant. Uh, issue with, uh, with, let's say steel. Let's say steel goes maybe 30, 40% up. Then there's a possibility that, you know, uh, disproportionate, uh, cost can be incurred, but I don't see that happening anytime soon.

Okay. In, in this order book, how much percentage is based on price variation clauses?

I would say all these projects which are related to power and mostly in water, we have this price escalation clause. However, except for the solar, there we have fixed price contract. Most of the other projects are with price escalation.

Oh, okay.

Thank you, sir. Happy development. Hello.

Thank you so much. Thank you.

Our next question comes from the line of Mohit Jan from Dr. Chokshi, Fins of Private Limited. Please go ahead.

Hi, sir.

Thank you for taking my question.

Sir, I have just one question on the capital working progress. I see we have around 740 odd crore in capital working progress. When do you think this is capitalized?

Uh, H2, we should get capitalized within H2SA. So this is, and what will happen is, see, work keeps getting certified, and then a little bit of work keeps getting added into the uncertified WIP. So this does not, does not remain as is, right? It will keep converting new, sale will keep happening, and work in progress things will keep adding.

But this one will be capitalized within next.

Yes, this is mainly related to the NOPL projects where we are working for them. So this is in NCWIP. Once these projects will keep commissioning, we will keep transferring it to the big effect.

All right, sir. All right. Thank you very much. That's it from my time.

Thank you. Next question comes from the line of Rajesh with Gen Investment as a follow-up question. Please quit.

Sir, can you just give us some update on the data center plan ahead?

Sir, honestly, data centers, we've explored a couple of opportunities. But, uh, in hand, it's now already here. So we've, we've very honestly, we've, we've tried to slow down only if there's an opportunity that comes to our door, which is super high profit, which is very, very urgently required. Those, those are the opportunities that we are, uh, pushing for targeting right now. So anything which in, in, you know, where a developer is okay with, uh, you know, um, um, You know, time delay, but wants to save cost, we are currently ignoring those opportunities. Or we are respectfully saying no to those opportunities.

Okay. And so what is the FI-28 guidance for Consolidated? Amazon is saying about 2,000 pro plus. Can we expect around 2,400, 2,500 Consolidated? Consolidated? Sure. And FI-28?

Yeah, FI-28. We can surely expect that.

Okay. Thank you. Thank you so much.

As I know for the question from the participant, I now hand the conference over to the management for the closing remarks. Thank you. I am over to you, team.

Okay. Thank you, everyone, for your question and for taking the time to join us today. We appreciate your continual interest in Vikran Engineering Limited. We will continue to focus on discipline execution, strengthening our project capability, and maintaining financial discipline as we move forward. We remain committed to rebuilding the business sustainable and creating long-term value for all our stakeholders. With this, I would like to thank you everyone once again for joining on call. Wishing you all a very happy, deeply, and prosperous new year to you. Thank you very much.

Thank you so much, sir. Ladies and gentlemen, on behalf of Vikran Engineering Limited, that concludes this conference. Thank you for joining us and you may know this connected lines.