Cemindia Projects Limited (CEMPRO) Q1 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the CAM India Projects Limited Q1FR27 Earnings Conference Call, hosted by ICICS Securities Limited. As a reminder, all participant lines 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 conference call, please signal an operator by pressing star 10-0 on your touch-tone phone. Please note that this conference is being recorded. I would now like to hand the conference over to Mr. Mohit Kumar from ICICI Securities. Thank you, and over to you, sir.

Thank you, Manu. Good afternoon. On behalf of ICICI Securities, I welcome you all to the Q1 F527 Learning School of Same India Projects Limited. Today, we have with us from the management. Mr. Jainta Basu, Managing Director, Mr. Nitesh Sharma, CFO, and Mr. Rahul Agawal, Head of Investor Relations. We will begin with the opening remarks from the management, which will be followed by Q&A.

Thank you, and over to you, sir. Thank you, Mohit. Good afternoon, everyone, and thank you for joining us today for the Q1 FY27 Results Concourse. So, this is Nitesh Sharma, CFO of Same India Projects Limited. Before we begin, I would like to mention that our discussion today may include certain forward-looking statements relating to Same India projects. These statements are based on management's current expectations and assumptions and are subject to risks and uncertainties that would cause actual results to differ materially. I shall begin with an overview of the financial performance for the quarter, following which our MD, Mr. Jayanta Basu, would take you through the company's operational performance. So, we are pleased to report a healthy start to the financial year with continued growth in both revenue and profitability. During Q1 FI27, operating income increased by 6% year-on-year to 2,721 crore from 2,576 crore in the corresponding quarter last year. This reflects a steady execution across our project portfolio. EBITDA grew at 9% year-on-year to 285 crore, compared to 261 crore in Q1 FY26. EBITDA margin improved to 10.5% from 10.1%. Profit after tax increased to 141 crore from 157 crore in Q1 FY26, representing a growth of 3% year-on-year. Order flow continues to remain strong. During Q1-FI27, we secured orders worth 8,519 crores. In July, we added another 247 crores of new orders, and we are presently L1 in projects valued at approximately 990 crores. Overall, this represents new orders of approximately 10,756 crores, providing strong revenue visibility, supporting growth and execution momentum over the coming quarters. Now, I would request Mr. Basu to take you through the optical performance.

Thank you, Nitesh, and I welcome all of you to this CONCOL Q1 2627 results of Seven India Projects Limited. As you can see that our Q1 performance for this year has been steady compared to previous quarters. EBITDA around 10.5%, PAD 5.2%, and revenue around 2,700 crores, which is to be 700 crores three years back for quarters. There is substantial increase, and there are plenty of opportunities. As you can see that our work in hand position is quite healthy as on date. Today, 31,000 crores, around 31,000 crores is work in hand, which is to be normally 18,000, 20,000 previously, as you know. And we will be continuously pursuing to secure more job in the segments where we want to work. Interestingly, that in first quarter, we have secured more than 8,000 tours of job. As compared to 2,900 crores secured during first quarter of last year. So, almost three times increase in work secured in this quarter compared to previous year, same quarter. So, I hope that this same momentum will be maintained, and that's because there are a lot of opportunities naturally. We have to also internally be prepared to grab those opportunities and execute them. And we are prepared for that. We are especially focusing on our team and some transformations also is going on. We are focusing mostly on digitalizations of various activities, technology part. Use of technology basically. Use of technology in construction method. Use of technology in project planning and monitoring method. Usage of AI. All these things are being persuaded. There is routine follow-up from the board members and the senior management team. So we are getting prepared also to handle the Revenue jump, what we are expecting now from this opportunity. About the present projects, as all of you know, mostly all of you know that we have secured two metro jobs, one in Pune, one in Delhi metro, underground. Those are under mobilization stage. Pune has progressed a lot. Delhi metro just started. And in addition to that, we have secured a job at... West Bengal, Barnpur, for Steel Authority of India Limited, which involves huge quantity of structural fabrications work, which we are used to normally, because we have done plenty of airport work very recently. So that is something. And beyond that, from the group also, we have secured around 6,000 crore jobs. And two of them are major. One is at Munger for Kuchinsa Elevated Corridor plus Adgate Road, and more sugar in Ajastan irrigation canals and stuff like that. So, I think the opportunities are there. We are doing well. So, I will be happy to answer any questions going forward. So, that's all from my side now. Thank you.

Thank you very much, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We have our first question from the line of Jainam Jain from Dan Capital. Please go ahead. Thank you for the opportunity.

Sir, I'm going to give you some good set of numbers. Sir, my first question is, we have received order for civil work for HPDC's association in Rajasthan. I'm assuming that we have received this order from one of our group companies. And I wanted to understand whether we are planning to expand our EPC work in T&D segment as well.

TNG segment, no, because I don't know which one you are mentioning. We have received the order for Morshagar. HVDC, which is...

Substation building work, which we have done.

Which is, which is, which is Morshagar delegation work. HVDC was a very small work, which is a part of existing, I think... Airport, airport terminal. It has got nothing to do with the T&D segment. And we do not have any plan to go to that segment right now.

Okay, sir. Second, sir, we have recently approved a fundraiser of 5,000 crores via QIP.

Sir, we are already a net cash company and we have a growth level of 18 billion. So, I think that a fundraiser of 50 billion is a quite significant number. So, just wanted to understand the purpose of the fundraiser.

Yeah, it is to, as you know, that if you have to grow, you require money, as simple as that. And many jobs require new... Plant and equipment and investment for the various categories of investment. It's a capital, basically. So, anticipating that, coming growth, we have decided to go as it is QIP.

Okay, sir. That answers my question.

Thank you so much, and all the rest.

Thank you.

Thank you. We have our next question from the line of Bal Chandra Shinde from Moti Laloswal Financial Services. Please go ahead.

Hi, sir.

Sir, I would like to know what kind of ordering flows we are expecting for the FY27, and across the segments, if you can mention where we are seeing a good traction for the orders.

Yeah, I think our target to secure around 25,000 crores around that in whole year, this FY27. We have already in first quarter equal 8,000 crores. So, balance around 20,000 crores, 17,000 crores, 20,000 crores is not a very... I don't think it's a challenge ending up with 20,000 crores this year. And mostly it will be underground metro, marine, road tunnel, and PSP hydro projects in this segment. And data center as well. So, if we see that in total at various stages, like some in tender, some NIT, some already submitted, some bid, some in the horizon, close to 90,000 crore plus visibility is there today. Opportunities are available today. So, that is long and short about the prospect.

And on the execution front, on the existing order book, what kind of execution cycle we should expect? And should we expect over the next few quarters the execution growth will be much better than this quarter?

Yeah, sometimes what happens, one or two jobs creates problems. Okay, otherwise... Normally, execution is three years' time cycle. You can roughly, you can estimate what will be the progress. Apart from that, one-off or two-off job, you have got monsoon effect next quarter. So, I am not very particular about Q2, because Q2 for all the company goes little timid, but Q3, Q4 progress will be definitely better than Q1. And some of the jobs which we have secured recently... They will start producing also from quarter 3. So yes, the progress will be ramping up in Q3, Q4.

Thank you. We have our next question from the Rhino. Dhanan Jai Mishra from Centrum Brookings. Please go ahead.

Hello, sir. Congratulations on very strong order inflow. Sir, in marine segment, apart from this Vardhwan order, which we are expecting, any other new project in port segment we are expecting, some order?

Yes, Marine, Vadovan, of course, is there. I mean, I don't know. And then we have... Few jobs overseas, few jobs overseas at Oman, and one at least that is an UAE, two marine jobs we are pursuing. Bangladesh also are pursuing one or two jobs on our marine. And we have got duty calling outer harbor, which will come eventually sometime, Vizor port, there is some job. So, we have altogether... Roughly speaking, 15,000 crores of marine jobs in the pipeline. I mean, towards the lower side, if you say 15,000 crores of marine jobs in the pipeline, yes.

Okay. So 15,000 crores for this financial year in terms of pipeline, or it will overnight?

I mean, 15,000 crores jobs, we have to tender, and some of them will be matured, some of them will gain, some will lose. So today we are dealing with the tender of 15,000 crore of marine jobs.

And this road tunnel job we have mentioned, so which kind of project we are expecting in this road tunnel?

See, now, slowly, slowly, the focus of the government is shifting from the elevator to underground, because of obvious reasons that space congestions and elevator does not look good. It is not only one or two jobs, like Bangalore, we have got road tunnels. Similarly, in Mumbai also, as you know, there are a few road tunnels. So, there will be plenty of such kind of business going forward. Specifically, if you ask me, then there are jobs in Bomaputra River. Below Bomaputra, there are road tunnels. And in Mumbai, Gaimuk road tunnels, Dangalur road tunnels. These are very specifically, you can see now.

And how is the competition in this segment, internal segment, overall?

Competition is part of our business, it will remain as usual.

Okay. Okay, sir. And we are maintaining our FI 25 guidance, FI 27 guidance as well, in terms of revenue.

Yes, yes, yes.

Okay, thank you.

Thank you. We have our next question from the line of Ray Bhav Shah from GM Financials. Please go ahead.

Sir, what would be the Adani group share in the current order backlog?

The order which we have secured, step by step, I'll tell. Around 8,000 crores we have secured. Out of that, 6,000 crores from Adani group and 2,500 crores from the outsider. And today, backlog of 31,000, Adani will be around. 53%, say 50, 50, 50, it's almost 50, 50 now, as of date.

Okay, and incrementally, we should be targeting roughly 17,000 crores of inflow in the remainder of the year. That would be broadly in the similar mix from group and outside.

Oh, you cannot say because if we get, it depends upon how much is secure from external, it depends upon that, you know. So, purchases may vary, may vary.

But the pipeline which you mentioned roughly 90 or 1000 peros, that is, mixed in that would be similar, 50-50, from group and outside, the process pipeline.

So I have to calculate now. You can presume, say, 50-50.

Okay, okay. And sir, what was our gross debt as of June? And the cash levels?

At 1000 crores, the gross debt was at 1000 crores, and net debt position was at 700 crores.

Okay, okay. And, sir, lastly on the Bangladesh order, so what will be the outstanding backlog and the receivables? And is the execution normal as now?

Bangladesh, I'll answer your last question first. Execution is absolutely under control, and we hope by few months from now, which is September or October, we'll be able to complete the whole job as far as we are concerned. Thank you. Receivable is around 178 crores, and there is some returns from there. So this is the normal payment cycle. So I don't think there is any issue on that.

Okay, okay. And, sir, we maintain our, so revenue guidance would be around 20-25%, which you mentioned last time, growth.

Yeah, yeah, yeah, 25%. Okay.

Okay. Thank you, sir. Those were my questions.

Thank you.

Thank you. We have our next question from the line of Aditya Sahu from HDSC Securities. Please go ahead.

Hi, sir. Thanks a lot for the opportunity. I did get cut out in between, so in case if I may have a few questions that might be repeating. My first question was with respect to the L1 in the total order book. So of the 31,000 crore order book that we have, how much of that would be L1 as on date?

No, 31,000 crore job, we are working in hand, I mean, already secured, already available with us.

Okay, and so the L1, how much L1 do we have as on date?

Around 9,000 crore.

Around 1,000 crore.

Understood, sir. On the Vajuan port execution, I think we were facing some issues on that front, even during the previous quarter. So, how has that panning out right now?

Vajuan port execution is yet to start. There are a lot of issues that have to be sorted out, which is beyond our purview, beyond our scope. So, we expected that those will be, I mean, done, but it is still going on. But things are moving very positively. The government has taken very active action. There are corporations from all corners. I hope that it will be resumed soon. But it's not in our control. We have to wait and see.

So any timeline that you are seeing over here in terms of the execution or are we still waiting on that?

I mean, if we start the work, if there is no hindrance, we can tell that this is the timeline, but we don't know when we'll be able to start the work. That is, as I told you, not in our hands.

Okay. And on the bid pipeline, if I'm not going back, that could be 90,000 crore would be a total bid pipeline as of date.

Yes. I mean, bid means it is not totally under bid. Bid plus something which is visible which will be bid, tenderly they have to come.

Understood. On the Capex front, I think last time we had guided a Capex of about 350 to 400 crores. Is that similar on the Capex front, and what would be the Capex that we would have done in Q1?

Q1, we did 80-odd crores, 81-odd crores additions.

Yeah, so this year also it will be, as you said, 350-400 crores, but there could be some exceptional job where we may have to buy some extraordinary plant and machinery, and in that case the capex scenario will be totally different. Otherwise, normally it will be around C-5400 crores.

Okay, okay, okay. Understood, sir. And on the net debt to equity, how much would that be for the month of, as on June, if you can help me with that?

As on June, it was, net debt to equity was 0.28.

0.2, understood, sir. In the Bangladesh order project, you know, we were earlier sort of planning to get the execution done by the month of, you know, by June 26th. And so now we are writing that September 26th. So, like, what would have caused that change in the timeline over here?

Actually, This execution is, I think, it was planned earlier also, around September-October, which we are able to maintain. Now, what happened during the monsoon, which has just started now, it is sometimes unpredictable that whether we will be able to work or not work, because Bernard is a perennial river, and the fluctuations of the river water is quite high. Sometimes, the current is very high, so it is a matter of chance.

So, more of our climate is from Montreal and Delay, is what I would say.

What happened that we thought that we will not be able to, you know, what we are doing actually, we are doing foundation for the transmission tower. And these are done in deep water. And sometimes the whole world goes underwater, so it is very difficult to construct. But we have a different technology being adopted now. We will overcome this situation. So, we'll be able to complete the job as per our plan, what we have done earlier. So, I don't think there is an issue on that.

Understood, sir. Just one last question. If you can provide the, you know, the receivable days and the networking capital days as on June 26th.

So, trade receivable stood at roughly 69 days, which included retention as well. And the networking capital was around 120 days.

100%. That's all. Thank you so much, sir.

Thank you. We have our next question from Lino. Manish Otwal from Nirmal One Securities. Please go ahead.

Yes, sir.

Thank you for the opportunity. Am I audible?

Yeah, yeah.

Thank you, sir. First question on the project execution side. We are hearing, sir, there is some kind of labor and the technical people shortage in the project execution. Are you seeing in our project execution this kind of problem or how we are tackling the situation?

I think you are right that technical, I don't know, but liver shortage is always a problem.

Manish, there is some echo in the voice of the management.

Sir, there is from Manish's line. Manish, can you please use your handset?

Yeah, now I have my handset.

Okay.

Okay. Okay.

So, labor prices are always there because the volume of construction has increased. Leaps and bounds. If you see the construction we used to do in our country before, five years back, and now it is quite high. So naturally, that is one number. Number two, most of our, whom we call workmen, we are now migrating to different kind of profession, which is a little bit of white-color type of job. So that is a challenge. It is not for us, all the Indian construction companies going through the challenge, and we are trying to handle that. So, yes, you are right. There is some issue of the labor shortage.

Okay. The second, sir, you said the company is planning to raise 5,000 crores from QIP. So, the current order book is around 31,000 crores and we have a net worth of around 2,500 crores. So, the kind of capital you are raising, that means the company is seeing superlative growth in order books in the next two, three years. May be a late road order book, that is what the signal from the growth capital, you should take it?

Yeah, I think it is up to you to speculate what is for that, but definitely there is a planning which may not be fair of my own purpose to reveal now, but definitely it is related to growth.

Hello, so the participant got disconnected. We'll move on to the next participant. The next question is from line of Rohit Natarajan from Access Mac Life. Please go ahead.

Thank you. Thank you for this opportunity. So my question is more related to the capability part of the company, as in the sectors right now you are focused on maritime structures, urban infra, industrial structure, data center, water, highway, foundation, and specialist engineering, maybe some sort of a hydro dam transfer and irrigation. Is there any other sectors that you wish to get into strategically?

Strategically, we have already started data centers. You have seen that we secured some job in data centers and we have been executing them quite well now. So that is something a new addition to our, you know, capability. I mean, our portfolio and then capability building up. Similarly, we are trying to get into the... Other prospective segments, maybe high-speed rail, nuclear power, those are in plan now.

Got it, sir. Is there any other areas like residential commercial buildings that can also be explored as such?

I don't think we have got any focus on residential building or commercial building. Of course, if we get some signature project, because we already have the capability to do building work. We are doing that in few places. Some signature project which makes sense for us to go, we'll try to do that.

Okay, and within power, if you could elaborate more on will you be doing the BOP part, is that something, or maybe some other allied works to the renewable transmission, if you could touch on those aspects.

Now, power, as you know, there are various sources of power, like thermal, like hydel. PHP also part of HIDEL, then you have got solar, and you have got wind, etc., etc. So thermal, as I said, that it starts from the intake system, and that is our intake power, intake system of the power plant, and then material handling system, coal handling system, which is cathartic lemur, and the conveyor, and the transport tower, etc., etc. And then coming to the main power plant, of course, we don't do chimney and cooling water tower. Rest of the structures like turbine buildings and all that we do. And if we get an opportunity, we'll do that. That is thermal power. In Hydel, it's basically a mining job, tunnels, deep excavations. And stuff like that, that is a common work we do. And we are doing also for huge jobs like Chitragoti and huge jobs in North India. We are doing that. For solar, of course, it is a different kind of thing. Solar, we have got huge amount of small, small structure like pile conditions that we are doing at Khaura in a mass quantity. So, and for the turbine part, wind turbine, I don't think there is not much scope available now, but we are definitely focusing something if we come to the marine front, like what has happened in the North Sea, that very big combination for the wind power turbine. If it comes, we will be able to do that.

Got it, sir. One is that organically you can develop this capability, qualification, and obviously the client access as such. But inorganically, will you be open to, you know, acquire a company and build up this capability? Which one will be the easier route?

I mean, if you grow organically, which is easy, because you know the subject, you have to grow by volume. And inorganic growth in a construction company is always difficult because it has to go through a learning curve, and that is very painful, as we have seen before. So always better to acquire some company, and at this moment we don't have such plan. In case, if it comes, we have to plan for such kind of acquisition and go in order to carry.

So, essentially, I was trying to understand this 5,000 crore kind of a QIP. Technically speaking, it should either build up the capability, qualifications for some adjacencies, new sectors where you have not explored, or maybe if it's going through organic route. I'm just trying to figure out how could we allocate such a big capital.

Yeah, I think it's a mix of both. You have rightly assessed that inorganic growth also in plan, but definitely I cannot say that which one, which segment we want to grow and what you mentioned. Detailing part is not there, but yes, part of this capital will be infused for the inorganic growth as well. And organic also, if you have to grow, nowadays, you know, sophisticated plant and machinery cost a lot. And in many places, they are not allowed if it is beyond five years old. So, there is a lot of capital investments that envisaged, even organic growth also. So, put together, that was the planning.

Got it, sir. Thank you. That's it for my side. All the best.

Thank you. We have our next question from the line of Abhinav from ICICI Security. Please go ahead.

Yeah, hi, sir.

Thanks for the opportunity. My question is on the data center front.

If you can help us understand what our scope is exactly, and how have we developed your execution capabilities in this, will be number one. Secondly, in terms of megawatt terms, the ordering flow that you have received, what will be the number in terms of megawatt? And thirdly, what will be the opportunity size in the coming quarters from this particular segment?

It is regarding data center? Yes, yes. Okay, data center, data center, see, first of all, I'll clarify that location-wise. We have already started working in Nabi, Mumbai. It is close to one year, close to one year that we are working in Nabi, Mumbai, and we have got there three 140 megawatts, correct? And two, 30, 30, 30, or 40 megawatts.

30 megawatts.

30 megawatts, two, and three, one, 40, one, 30 megawatts. So these five are already in progress. Civil structures are already in place. I mean, being constructed. In addition to that, we have secured some data center-related job in Vaisak, which is basically civil structure for the time being. Electromechanical may come in future. And there are some prospect in elsewhere also. So in terms of the megawatt, totally it will be around... Yeah, I don't see 20 to 400 MW on which we are working now.

Yeah, and in terms of opportunity in the coming quarters?

Opportunities are plenty, but we are trying to limit ourselves to a certain extent, which is possible by us to deliver, but there are a lot of opportunities there.

Thank you. Thank you.

Thank you.

We have our next question from the line of Nikhil Kanodia from Sunili Securities. Please go ahead.

Yes, yes.

Good afternoon, sir, and congratulations on the ISA book. Sir, like you have said about your marine opportunity of 15,000 outcloses of BitPipeline, and you have recently spoke, just now spoke on data centers. Sir, just a moment to understand from you, what is the total BitPipeline that is looking at? What is the iteration, like segment-wise, if you can give the broad-based break-up of the opportunity size that is coming up in years to come?

So, ballpark, 90,000, heat, 15%. And if I have to divide in segment-wise, six segments, each you can say 15,000 to 20,000 floors. All are equal opportunity, except building, which is very less. Generally speaking, 15,000 to 20,000 is the size of opportunity for per segment. And when I say part segment, it is Merim, Underground Metro, and airports, and data center. The highway and bridges, and some waters.

Sir, heat ratio you said 15%, right?

Yeah, I mean, earlier it used to be better, 20%. The more you, you know, tender and the volume becomes more, heat ratio also comes down with that. So, 15%, you can imagine.

Okay, sir. Understood. And, sir, of the 5,000-odd crores enabling resolution that you have passed on your QIP, I want you to understand if there are immediate plans to raise any amount and what could be that deployed for. You mentioned that the entire thing can be towards building up capacities, plant machinery, everything. But what amount can we see, like, any plans that we might do some bit of it in this year itself or, like, what is the plan going ahead?

See, it is a time-consuming issue. Once it comes, and then I don't think much of them will be utilized this year. Progressively, we have to utilize.

Timing probably depends on market plus the kind of visibility, near-term visibility now, as we are bidding and we are trying to convert these. So, the timing is contingent upon the market condition and the near-visibility.

Sir, one last thing I wanted to know, what is the position for your receivables, payables, retention, and the consequence of the working capital, basically?

Trade receivables including retention, as I said earlier, stood at 69 days. And the overall networking capital was at 120 days, which also, which comprised of inventory of around 30 odd days with WIP of 69 days.

Sorry, sir, I lost you. Inventory, you said, is 29 days.

Inventory is of 30 days. 30 days, okay. WIP included of 107 days, and the networking capital stood at 120 days.

Okay, sir. Those were my questions. Thank you, and all the rest. Thank you.

Thank you. We have our next question from the line of Rishal Perival from PL Capital. Please go ahead.

Yes, sir, thanks for the opportunity. Sir, on the margins front, can you give some perspective, the order book that we have, 50-50 between Adani Group and external, so how it is structured, fixed price, and the complete pass-through?

No, it is, with Adani Group, it is a competitive bidding, and there is no fixed price. In certain cases, we get material free of cost. So, So that is, you can compare with the normal tender as you do for the external client. There are some advantages somewhere nowadays because you have seen that some government agency has reduced the performance guarantee from 10% to 5%. So that is the advantage you have. And margin side, as you have seen, that 10% plus in that range, double digit. I hope that that will be maintained. Is that answer your questions, or you have got something specific?

Yeah, no, so basically I was coming to, in terms of margin, probably like, you know, the cost inflation that the system has seen in the last five, six months. So, I mean, do we see like double-digit margin for us, or is that question is coming from the nature of our contract, which is having a path-throughs, or, I mean, we have a buffer that we maintain the time of bidding.

I mean to say that measure of contract doesn't change, so I think it's quite predictable. But what is the variable part is the geopolitical situation. There is obviously some effect of the war going on, sometimes scarcity of the essential communities. Sometimes we are not able to send the material. Like, you know, we are working in Abu Dhabi, and work is going on full swing. There is absolutely no problem. But something may happen sometimes, so that is unpredictable. But always we build up some cushions and safety factor in our estimate in such kind of job, and so far it has been demonstrated that we are able to manage with the cost provision, and here also it will be like that.

Okay. Maybe one last thing. In terms of order book, what could be the export share in this?

Okay, around two to three percent.

Okay, okay, okay, okay, okay. And maybe if I can just squeeze in, sir, in terms of growth, revenue growth, yes, I think there has been a dry season, lack of monsoon. So in terms of execution, we could still see like, you know, I mean, like, you know, probably it is a little bit on the lower side, though you're maintaining the guidance and things could be better. But any benefit that you see for us, I mean, delayed monsoon or a lack of rains that could have in terms of better augury execution for us or any color that can be provided?

Execution first quarter, as I told you, that sometimes one or two jobs create problems. Here also the Wadavan port, which is a sizable job for us. We expected that it will start, but we have not done anything of that. So a large chunk of revenue and work we are not able to get from this project. Similarly, few jobs we have secured at the gestation period like Delhi metro and Pune metro will yield result after a few quarters or from third quarter. So that is why you could see that 2700 crore revenue apparently looking less compared to what we have done last year. But if you compare it with a two-year backstory, three-year backstory, it is quite good. We should do 700 crores per quarter. We are doing 2700 crore, which is a sizable increase.

Okay, okay. Sure, sir, sure, sir. I think this is helpful. I will come back in the queue.

Thank you.

Thank you.

Thank you. We have our next question from the line of Stravanshav from Dollar Capital. Please go ahead.

Hi, sir. Thank you. Sir, just to understand, are we only continue to have the EPC business, or is there also a plan that we can also kind of look at the projects where we need to put our equity?

Not really, unless there is some special interest by the group. So far, we are trying to maintain the way we used to work in the EPC business.

Okay. And in terms of CapEx, you mentioned 350, 400 odd crore kind of CapEx for this year, but you said that could be exceptional where we need to buy a specific machinery. What could be that and going forward? So obviously CapEx is linked to the kind of execution that we want to do. So this year, though we are saying that 25% kind of a growth will be there. So going forward, given the order book and the inflow kind of an opportunity we have, so two, three things which are linked together. One, are we looking at minimum kind of a 20% kind of a growth for next couple of years? And if that is the case, in terms of the capex, given whatever the work or nature of what we are doing, this kind of a 400, 500 crore kind of a capex, is this sufficient? Or are we kind of a thinking kind of any specific project where maybe we need to do more than a thousand crore kind of a capex?

It purely depends upon what kind of job, new job, we'll be doing. If you do, right, normal, what you do, marine, road, industrial buildings, airport and all, the capacity requirement will be the same what we have seen today, 300, 400, 500 in that range. But the moment you go for something like large diameter tunnel for the road, where essentially you require tunnel boarding machines. Which are pretty costly. So that's why I said that in such situation our capacity will come in really much more. Okay, okay.

No, because what we are trying to understand is this 5,000 crore kind of QIP that we are looking at, given the kind of, if you are able to maintain a 10% plus kind of a margin, 20% plus kind of a growth, and then this kind of a capex. So actually, we don't need kind of any kind of equity. The model, business model is self-sufficient. So where this money will be used, and this is a huge amount. So that's what we are trying to understand.

We envisage there are opportunities and we have to be prepared for that. And one of the preparation is to have enough money to handle the situation. That is why we have gone for that. And if we require and if we don't get time that money to raise, it will be a problem. So that is the idea.

Okay, but current order book and the kind of inflow that we are looking at, 20-25% kind of growth at right now, is doable for a couple of years?

Yeah, yeah, it's quite possible. 20-25% growth coming in a few years is quite true.

Okay, okay. Thank you and all the best.

Thank you. We have our next question from the line of Bhavya Gandhi from Bajal Alternative Administments. Please go ahead.

Yeah, thanks for the opportunity, sir. Just re-checking, you mentioned 90,000 crore is the mid-pipeline and 15% is the heat ratio. Is that the right understanding?

Yes, yes.

So roughly 13,000 crore is the order inflows that one can expect?

Yes, you are right.

Or 90,000 crores is after calculating the 15% hit ratio. No, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, Thank you, everyone. Yeah, got it, sir. And in terms of competition, sir, if you can just explain, in terms of capability, where do we stand out usually for the project that we build? How many players are there in the queue? And is there any certain segment where we have some moat compared to other players where we have the right to win? If you can explain on that front as well.

See, the completion is something which depends upon... Many factors. It is not the competency of the contractor. A competent contractor will put a proper price, and that price may be high, then the party who has put a price, who are not competent, doesn't understand the job. Very difficult to predict that if you are competent, whether you are able to compete in price or not. So, I don't know that there is any theory, but it's very difficult, and sometimes it depends on the strategy of the company also.

What price will be? Particularly, sir, in terms of maritime infrastructure, I believe there are only two players in the country. Is that the right understanding, or are there any more players beyond two, three players?

Yeah, basically it is three players, but sometimes there are other players also try to get into that, like, I will not tell the name. So you can consider five players in this.

Okay. And so what would be the peak debt level if you can just explain basically the order book that you have and also on the working capital that you will require for the current order book? Absolute number would also help.

Say, 1000 crore.

1000 crore is the current debt position which definitely would suffice to handle this kind of growth of 20%.

Gross debt?

Yeah.

1000 crore, gross debt, you are expecting, you don't expect it to rise further? That is what I am trying to understand.

I am in the range of 10 to 20% because we have assessed the limit plus we have also put an additional limit in place. So, 20-25% growth in the gross debt also.

Okay, and in terms of working capital, similarly, if you can provide some number?

Working capital would be in the range of, in the same range, only 110 to 120 days. 110 to 120, okay. That's what, that's what the all efforts are.

Sir, I think for the larger interest of the investor community, everybody is just thinking more about the 5,000 crores because our asset base is closer to 1,100 crores and we are planning to raise 5,000 crores. I mean, is that the aspiration? That's the higher amount or that is what you really want to raise in terms of QIP, the entire 5,000 crores?

No, no, so that's an enabling thing, and I mean, this would be completely dependent on the orders which we are trying to secure in the near future. Plus, also on the market conditions as well.

By their simple multiplication, can you assume like if your current base is 1,000 crores and if you are raising closer to 4,000 or 5,000 crores, can the order book also multiply by 5x going forward? Is that the right understanding?

Not really, because as I told you that, say, if we secure another 25,000 crores of job, that 25,000 crores, or say 20,000 crores this year, That 20,000 crore job, it comes from the normal stuff like what you do, like marine and airport, like road and all. You require a capex of present current deficit, 300, 400 crores. But if that 20,000 crore includes one road tunnel, which will be around 10,000 crores, and that 10,000 crore requires a huge capex. So, it is subjective.

Do you think the age of 3 to 4X order book is possible over the next coming years? Is that the right understanding, if you can verify that?

Yeah, I mean, if you see that last year we have secured the order of 14-15,000 crores, this year we have planned to secure more than 25,000 crores. I think it will be incremental every year. So... I don't know, 2S38, but, yes, yeah, yeah, yeah, yeah, should be helpful.

Thank you so much. Really appreciate it. Thank you.

Thank you. We have our next question from the line of Gurpreet, an individual investor. Please go ahead.

Hi, sir.

Am I audible?

Yes.

Yes, sir. So, we can understand, given the nature of the industry, we can have lumpy quarters. Now, with a record, the order book of 31,300 crores. Can you give us a specific revenue growth guidance range for FY27 and FY28? And also help us understand why revenue growth is decelerating relative to order book growth. What are the bottlenecks? Is it like receivable or mobilization delays? Can you just unpack this for us?

Yeah, I think the statistics sometimes mislead ourselves because as I have maintained, the third time I'm saying that two years back, three years back, we used to do 700 roads per quarter. Now I do 2,700 crores. That's because last year we have done better, it's looking less. Of course, in terms of order booking, we should have done a little bit more, I agree with you. Specifically, two jobs, like one is at Badavan, a big job which we have secured, but we have got zero production there because of obvious reasons, but we don't have any much control. And then three big orders we have secured, one is Al-Munger, One is at DMRC, and one is at Pune, and one is at Morshagar, which comprising around 12,000 crores of order which are secured. We couldn't do any progress because we have just secured them. It requires design, and it will be taking six to seven hours time to start the work. So, out of 13,000 crores, around 12,000 crore order which is available with us, where there is no progress so far because of the initial mobilization is going on. So there are a couple of reasons. And some impact of the war in Abu Dhabi in a few months, there was a little bit of mute in the progress. So all this has factored this revenue of water only a little less than water. What is expected?

So, sir, what is the revenue growth guidance you would give for FY27 and FY28? 25%. 25% growth. Yes. Okay. Thank you, sir. Thank you.

Thank you. We have our next question from the line of Neer Manohar from Trust Mutual Fund. Please go ahead.

Yeah, thanks for hearing me, unfortunately. Sir, in a better sense, I mean, you know, when we see this call, it is 6% top-line growth. For a full year, we are looking at 20-25% top-line growth. I mean, so, is it a case there that certain projects were not able to meet the billing threshold, and so, consequently, there is an overgrowth, and that we got compensated for a balance of the part of the year? How do we get a confidence on that 25% guidance that we are maintaining on top of the year?

Like, uh... Munger, like Kune Metro, like Delhi Metro, like more struggles, comparing these all four jobs put together will be around 10,000-12,000 crore jobs where you didn't get any revenue last quarter. So this will be finally after quarter monsoon, you will get the revenue from this project. And then one job which is Abu Dhabi, it is just picking up now. Hardly we are doing a progress which is half the requirement, and again another 2-3 months time we will progress. So with that, 4-5 jobs which will be picked up, we are confident that we will be able to do the overall revenue of this year, what we have predicted.

Okay, so the job work is sitting in Burkheng, I mean, correct access? Yes, yes, yes. Okay, understood. Second question was on the 5,000 crores fundraiser that we are looking into. How much would be pure organic capacity to it? Any broad cut number of organic capacity requirement which could be there for us?

And again, as you said, that few of the jobs may have large CAPEX requirements, anything in the range of say 4000, 5000, depending on again how many number of orders or how many number of work we get in hand.

And just last question was, I mean, if I assume a similar to 25% growth next year, so I believe we have sufficient cash for the working capital purposes, which will be needed for executing FF28, but these 5,000 growth funders does not require FF28 execution. Is that understanding correct?

It would be a mix of both things, because large orders would definitely also require some working capital support as well. So, this 5,000 or, say, whatever the number would be, finally, based on the orders. So, largely, it would be towards your capix, and then a portion of that would be for the working capital as well.

No, but that's the existing order of 30,000, 31,000 crores. Does the execution of that order book require more incremental working capital from your equity perspective?

No, no. As of now, with the current orders in hand, the current set of working capital what we have and the cash borrowing limits what we have is okay. It's enough to support those regulations.

Okay. Okay. Understood. Yeah, sure. That's it for Machen. Thank you. Thank you.

Thank you. We have our next question from the line of Bhavin Moody, from Anandrathi. Please go ahead.

Hi, sir. Thank you for the opportunity. Sir, just a bookkeeping question, sir. Do you have the numbers handy with respect to what was the cash flow from operation, you know, during this quarter one?

As of, I mean, it's not in my hand as of now, but we can, we can.

Second, what is the status of the Bangalore underground tunnel project which was run by the Adani group? So, what is the status with respect to the LOA?

Adani is waiting for the LOA from the government. So, that is the status today.

And so the last thing is, you know, so the promoter, the group has been, you know, like, you know, we are seeing, you know, placing the bids for many BOT projects, you know, in Maharashtra, in Uttar Pradesh. So, like, are we open for the, you know, back-to-back EPC arrangement for such projects?

Yes, yes. Of course. Yeah, that's it from my side. Thank you.

Thank you. We have our next question from the line of.

Hi, sir, my question was particularly regarding to, is there any material change in the nature of our urban and marine infrastructure order in the last five years?

Not really. Not really. We have been doing the work, same segments, what we have to do, what we used to do before. I mean, will you specify your question? I mean, do you have anything very specific?

No, no. Specifically, I wanted to know, is there any change in terms of, let's say, the technical complexities or, let's say, the size of the order or the execution risk, like, which we may face because of the rapid growth we have seen in, like, a couple of years, in the last couple of years.

Okay, I got it, got it. See, normally the size of the project has been bigger and bigger. Earlier we used to do 300, 400 crore jobs. Now we are doing 1,000, 2,000, 3,000 crore jobs. So in terms of volume, we have to handle more volume nowadays. Of course, we do 300 crore jobs in 3 years and 3,000 crore jobs in 3 years. That must be something different in technology we have to use. We have to use machines which are faster. We have to have methods which are more efficient. So that's the continuous process, you know. So that is always there, and then as I have told you before that we are trying to utilize, I mean, the use of technology in terms of digital technologies, in terms of monitoring, planning, in fact, in operation also, that is something which we have started doing and giving us good results. So all these things are there in place.

Okay. Okay. And what would be that one core area of focus that we might be seeing for the next couple of years? Let's say that this would be the one thing that could change things materially for us. If you can point to very specifically, is there anything that we are planning?

It's purely technology. I mean, if we do today 10 meters for something, some progress, we should do 20 meters by another one or two years time. So, that is what the industrial industry goes about, the progress, progress and progress.

Okay. Okay. Okay. Thank you. Thank you. That's from my talk. Thank you.

Thank you. We have our next question from Lionel. Jayesh Shah from OHM Portfolio Easy Research. Please go ahead.

Hello. Thanks for the opportunity. Sir, first one, bookkeeping question. This Ganga Expressway, you said, the project is largely over, but if I recall right, the tolling has started here by May. Is that true, or how much of the job is left?

I don't know yet when the tolling has started, but as far as construction is concerned, it is done. It is completed. I see.

So, is it lying right now as an unbilled revenue or inventory in our books? And will be booked in the coming quarter?

No, it is normal time cycle. You bill it and you get paid on time. So, there are some retention amounts also there. There is nothing exceptional issues in this. So, yeah. Okay.

But major part of this job is over.

Yes, yes.

Okay. And secondly, again, I have a question again on this 5,000 crore QID. If I summarize the understanding, you are saying this is only an enabling resolution where you will decide over time. Amount could be 5,000 crore or less, which you will decide, and which is based on your anticipation of fresh orders. Your current order book does not require any need for QID.

Yes, you are right. Absolutely right.

Okay. Okay. And these large projects, whenever you take these capex intensive projects, will they still be at 10% EBITDA margin or they could be at higher margins?

Well, this is very difficult to answer. First of all, if we adopt a different technology, we will definitely try for a job which will fetch as higher margin. And then execution also has to be seen how it goes. So we have always focused to get better margin with this new technology, if we have invested something in the new technology. Okay. Okay. Got it, sir.

And, sir, last question is your current year's revenue guidance of 25% implies, you know, overall revenues of 12,500 crores. Now, given your first quarter and second quarter trend, are we looking at a 5,000 crore revenue per quarter as a new normal starting from the third quarter, which would be a base new normal?

Third quarter and fourth quarter generally gives better revenue, as you have seen before also in last year. Like if you see last year, our first quarter was 2,500 crores, and second quarter was 2,100 crores, but quarter four was 3,000 crores. So similar trend will maintain. I cannot exactly say 5,000 crores per quarter, but it will be better, much better than this quarter one.

Yeah, but where I was coming from, sir, is that your current operations, capacity, and everything would allow you to work at 5,000 crores comfortably, is it?

Yes, you are absolutely right. Okay, okay.

Thank you very much, and best wishes.

Thank you.

Thank you. We have our next question from the line of Aditya Sahu from HDFC Securities. Please go ahead.

Hi, sir. Thanks a lot again.

Just one question on the bid pipeline, you know, the 90,000 group bid pipeline that you mentioned. How much of which, how much of that would be, you know, from the, from the group? That's all. That's just one question.

Close to, close to 50%. Close to 50%.

Understood. Understood. Thank you so much. Thank you.

Thank you.

Thank you. Ladies and gentlemen, that was the last question of the day, and I now hand the conference over to the management for closing comments.

So, once again, thank you all for joining us on this call, and we wish you all a very wonderful day. Thank you.

Thank you, sir. On behalf of ICICI Securities Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your life.