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Earnings call · FY2027 Q1
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Good evening, everyone. Welcome to the HCC Analyst's Call of Quarter 1, Financial Year 2027. Before we begin, I would like to request all participants to kindly limit their questions to two at a time so that everyone gets an opportunity to participate. Joining us from the HCC Management today are Mr. Arjun Dhawan, our Vice Chairman and Managing Director, Mr. Rahul Shukla. Chief Financial Officer and Mr. Santosh Rai, Head of Business Development and Chief Business Officer.
Thank you, Shavik. I'll take you to the presentation. Santosh Rai here.
All right.
Just a minute, please.
All right. So, highlights of the quarter. Standalone turnover at 982 crore and 37 crore of net profit for Q1FY27. Consulpat improved margin to 51 crore on revenue of 993 crores. A beta margin for Q1FY27 is at 10.7% versus
14.9% in Q1FY26.
Pre-payment of 100 crores of debt planned in August 26, with substantial payments to follow. We have secured one order in Bhutan for 127 crores, and we are lowest bidder on bids worth 1671 crores. We have also submitted bids around 10,000 crores, in which actually share is nearly 7,750 crores. And we are actively working on the bid pipeline for North of 86,000 crores. This is the order backlog position as of ending quarter FY27. You can see the order backlog is spread widely into transport sector, followed by water, hydro, water, and nuclear land buildings, and again geographically spread over different parts of the country. Some of the project updates, what you are seeing on the screen is in lower metro, where the TVM deployment is in a very advanced stages. We are also in advanced stages of the ring preparation for the tunnels. And out of all the stations, the excavation works and other ground protection works are in full swing at this job site. Thank you. The job site is progressing well in terms of mobilization. Client has provided us the requisite workspaces very recently, and we are working on traffic diversion of the schemes. But in the meanwhile, segment casting facilities and other infrastructure is being put into place for both the packages of PC05 and PC06. Aga Danda project, a lot of foundation works in marine conditions and as well as on land are in full swing. We are also producing the segments for the bridge erection and statutory clearance for the jobs are expected to be available by November 2026. There are some policy still awaited on key portions of the project and we expect them to be coming soon. What you see here is Bhupuri. In Bhivupuri, the left picture is about the powerhouse excavation where the works are going on in full swing and so are the works going on at the upper intake. Soon we'll be also starting the HRT and surge shaft works at the upper intake area. What you see on the screen is Vishnugar Peoplekoti, where the machine hall unit number 2 and 3 are in advanced days of construction. So is the search chart. Dam is nearly 85% complete. TRT is also in advanced stages now. So overall project has reached almost 85% here. This is the breakthrough of phase 2 and phase 3 at Top 1 Vishnugarh project of NTPC. Here also works are going on all the fronts. This is the picture of the project, the job which we are doing for Aditya Aluminium, and we are making here pot shells and pot superstructure for an emilium smelting process. The bulk fabrication of these process units have already started. Coming to financials, the numbers are here on the screen and we can discuss them once we go forward. I hope all of you have been able to go through them. These are the console numbers for Q&F Y27. Thank you, and now we will take questions.
Hello.
Yes, Siddharth. Siddharth, I'm sorry.
Yes, I just wanted to understand the reason behind decline in EBITDA margin. Lower revenue, we understand, because of order completion stages, but what was the reason behind the costs running up significantly?
So, Sridhant, we have got many projects which are at various stages of mobilization. Almost 8000 crore in our order book are projects which we have acquired during last 15 months period. So, while they are being mobilized, we are making expenses. However, their contribution in our EBITDA is yet to come, which will be realized in subsequent quarters. So, when that comes, our EBITDA will subsequently improve, and we will continue to strive for maintaining our EBITDA to the level of 13-14% what we have been doing in the past.
Understood. Thank you. That's my question.
Mr Agarwal, please go ahead.
Yeah. So, my question is regarding that our current order book is approximately 13,000 crore. So, can you please share the average remaining execution period of this and expected EBITDA on this order book?
So, as I mentioned, a significant portion of this order book is something that we have recently acquired within the last 15 months. So, on an average, we can say that the next three and a half years is the timeline that we look forward to complete this entire order book. However, with our pipeline, we will continue to acquire new orders, and that's how continuity will be maintained in terms of pipeline and order execution.
And what kind of a beta on these new projects we are expecting?
Same 13, 14%.
Okay. And we have given target of around 15,000 crore of new orders in this financial year. So, in this quarter seems slight, our order intake seems slight low. So, how are we confident to achieve this target or any, we can say, any revision in that?
No, Kapil, I think we are confident of achieving this target. And as you might have noticed, there is already almost bids worth 10,000 quotes which are under evaluation. And there is substantial pipeline which is under submission. Some of this has got delayed, but we believe that, you know, they will be seeing the light of the day in coming quarters. And therefore, we want to maintain our guidance, what we have said.
And actually, the company has proved itself to execute highly complex infrastructure projects. And in this segment, we compete with industry leaders like L&T successfully, which we have seen. But our turnover in the, we can say, of industry leaders, in comparison to industry leaders, it's just 2% right now. So what is our plan to, we can say, fill this gap? I'm not saying that we will achieve that target in a near term or so. So what kind of hurdle we are facing to grow fast like? Earlier, we understand that financial issue was there. But now, I think that financial issue is passed. I think now companies technically and financially in both terms capable to execute these kind of projects and to compete with industry leaders. So, what is our thought on this?
Kapil, there is no huddle to that. It's a function of order intake. We have done, as I mentioned, 8000 crores orders have been acquired recently, and there is a strong pipeline. So, as this order built up continues, that will start translating into turnover also. So, turnover is not a worry, order intake is something that we need to focus on.
So, in comparison to industry, like in order intake for our big competitors, I think our order intake is slightly, we can say, less. So, any particular hurdle or something we are facing in that front, what can be the reason for this lower order intake and all that?
Yeah, Kapil, look, I think this is a bit historical, as you have seen. Some of this is legacy, but you can definitely see that from the bid pipeline that we are targeting and the number of bids which are already under evaluation at this stage in this financial year, I believe gives you an indication that what is that we are looking at. And if we see it from that perspective, I believe... Let's keep past the site, but there will be substantial numbers before us to be seen.
Okay. Thank you, Mr. Agarwal. You may, you know, come back. There are others in the queue. Mr. Sarov, Boothra, please go ahead. Sarum, are you able to hear me?
Without mute.
Yes, yes, yes.
So, my question is to Rahul. So, what is the, when can we expect this order, which are under the L1, which you have shared in the presentation?
So, we can expect somewhere by end of Q2? To get it converted. That's what we are targeting.
These are for the L1 positions.
Yes.
For the L1 positions and of course new orders conversion we will see more of them towards the end of Q3 and Q4. Okay.
So I think so estimating roughly about I think so 10,000 crore order is under the L1 if I am correct.
No, that is under evaluation. Our L1 position is for 2,241 in which our share is 1672 crores. Okay.
So, second question is in this, what the hurdle is going on, why we are securing the order NET?
Saurabh, your voice is not clear. Can you please repeat?
I am saying to you that what is the hurdle going on, why we are securing the NET order?
No, I think we answered the same question. Saurabh, sorry, I think this is a very repeat question. We just, the previous, you know, and it's asked the same question. Look, I think the hurdle, I mean, there is no hurdle as such, as, you know, we explained, there is no hurdle. We are, yeah, you know, we are in a stage where some of the bids have got rescheduled, but we are very confident the pipeline which we are working upon will lead us to the target what we have set for ourselves.
Okay, so what is the targeting we are targeting for the FF26 and FF27?
Yeah, I think in the last quarter, we gave a guidance of nearly around 15,000 crores, is what we are looking for. 15,000 crores.
Okay, understood. And what is the, is stated on the update of the nuclear power, which the Atman is a model, which the government has announced?
You mean to say the base?
Yes, on the nuclear power side.
So, nuclear power, there is a lot of, you know, action happening. Already the joint venture of NTPC and NPCIL has brought out their first tender. That is there. We are also seeing a lot of traction in the private sector space. Okay. Of course, most of this will move once the rules to the Shanti Act are published, which we believe may happen either at the end of this session of the parliament or the event of session. Okay. But we are definitely seeing a lot of traction there. Okay. Okay.
Okay.
Thank you, sir.
Thank you.
Mr. Lokesh, you may go ahead, please.
Yeah, hi, sir. A couple of questions from my side. Basically, starting with, you know, some clarifications. So, we have one order in April, basically from Serco, worth of rupees 1100 crores. So, that project is basically, has been considered under order book or still it is under the L1 position?
Under order book. It is under order book.
It is under order book. Okay, so the L1 position you have mentioned, this is a new project, correct?
Yes, yes, that is excluding that.
Correct. Secondly, sir, can you just give some highlight on which segment the pipeline is basically screwed into? I believe you have 85,000, 86,000 close-up project and around 10,000 close-up under evaluation, but where are the tractions you are seeing more under, you know, currently, and what is the competitive intensity on those projects?
So we are largely seeing this traction for the, I can say, hydropower space, which definitely the government is prioritizing. That is one space. Underground metro and other urban transit systems continue to be the second space where there is a good traction. Other than that, there are also orders in the industrial and metal sectors. Where again we are seeing some action. So I can say these are the, and then of course nuclear is there. For nuclear, as I said, it will move once the rules are published. Though there are going to be some government orders on the PHWR program, but private orders, sorry, private inquiries will also start flowing in maybe after six to eight months or so.
Okay. But do you think that these 85-6,000 crores of the pipeline will be bidded during this year or it will, you know, try?
I think this will get bidded this year because some of the delays, you know, what we're anticipating on some large bits to happen early, they seem to be delayed by almost two months, I will say. But we believe, we hope that, you know, they will get realized, the bits will get submitted in next. Two to three months, max.
Sure, sure. And so, just, you know, on the, as CFO sir has basically mentioned that around 8,500, 5,000 crores of projects are basically under mobilization stage. So, is my understanding is correct that around, you know, 4 to 5,000 crores worth of projects are only contributing to the revenue currently?
But these projects have also contributed to some extent. However, margins will come subsequently because initial stages, they are less margin. Subsequently, when turnover picks up, margins improve.
Thank you, Lokesh. Next, Mr. Rusmik. Mr. Rusmik Oja, please go ahead. Mr. Oja, are you able to hear me?
Hi, hello, I'm audible, sir.
Yes, yes, go ahead.
Thanks for the opportunity. So, as you said, there are some 8,000 worth of projects which have mobilized now. What could be the conversion in this fiscal year from these orders? That's one. And subsequently, we did around close to 4,000 crore of console revenue last year. So, whatever execution we do this year, what could? Be the annual growth in revenue, this is that, that is my first question.
So, Rasnik, I think quarterly we give update on these aspects and we have already mentioned that investors need to be patient for one more year with us while we are building our order book. So, certainly we are seeing the same kind of turnover as we have done in the last year. However, there could be some positive surprise of 15, 20 percent, say 400, 500 crore on the positive side. That will depend on how certain aspects of a few projects mobilize. We will not like to put exact number here. But we are working on positively surprising you all. So for the timing, you can say that we will remain at the level we have been last year.
Okay, okay. And my second question, sir, you know, though, as you said, the margins will improve, but last year we had almost operating margin of 16%. Any exit run rate by or probably what could be the full year EBITDA margin or the operating profit margin for this year?
Yes, so this question we answered earlier. So, we will, by end of the year, we will maintain this run rate of 13-14% EBITDA that we do. And current reduction in ability is just a function of various stages of the project that they are in. So, yes, bottom line. Okay. And at the same time, we are also working on deleveraging of the company, which at the bottom line level will give us improvements.
So, I just want to add, this is Arjun Dhaval. I certainly believe that we could have done better on the order booking by now, right? Let's be very clear about this. That said, I'm expecting that to exponentially pick up, and I think that, you know, we hopefully basically surprise you all on the upside, certainly by the time we get to the end of this fiscal year, and the impact, obviously, as far as our top line and bottom line are concerned. The order booking and the revenues and cash flows that basically come as a result of that, but more importantly, the deleveraging that we will continue to focus on in getting HTC to be nearly debt-free as early as possible is going to have a substantial, basically, impact on our bottom line, our credit ratings, our growth prospects as well, right? So I think the effort that we're making is twofold. And I think that what we perhaps have not achieved as fast on the top line, you know, very frankly, this year is something that we will certainly make up for in spades with regard to the bottom line. So we intend to keep our EBITDA bat margins well intact, and the growth you'll see from that bottom line, I think, will hopefully make up for some of the shortfall that we've seen on the top line. With that said, I think some of the mix of projects that we're looking at and the sense of success that we believe that we will achieve on the evaluation of bids that are yet to be opened, as well as what we have planned for the next couple of quarters, we remain quite confident.
Sir, subsequent question, even though we might end up with a flat revenue, but a lot of the switches, when they gain traction, what kind of top-line growth we can expect next year in FY28, sir?
I mean, look, we've tended not to give this guidance. I know that from an analyst community perspective, that's an important number that you need to model in. We have to make up for lost time, right? I mean, I think that, you know, these questions have been asked before. We certainly need to execute to our potential. We're still such a small percentage of the market share in our industry relative to our pedigree. And so I think that, you know, that's the only good thing is that there's a much, much larger addressable market for us to chase. That said, we're going to be very selective as far as risk management is concerned, the pricing of our projects and the quality of our clients. And I think that it would be fair to say that we would be in that sort of 20 to 25 percent range. I mean, you know, anywhere from 15 to 25, depending on which basically period you're talking about, but, you know, certainly 20 plus percent is certainly what we would be targeting given the low base that we're functioning.
Thanks. And the last question was regarding the deleveraging, you said in Q1, the interest cost was around 87 crore. Any color or any guidance how this number can pan out in the coming quarters?
So, next few days, we are prepaying 100 crore to another lender. So, that again will help. We are working on last day leveraging like last year we reduced our debt by almost 1500 roads payment was made to lenders. This year also I am not giving a number but we are working on a considerable repayment. It will not be fair on me to give you a number unless we are at final stage of closing that. So maybe by next quarter we should be able to give you a precise answer to your question.
Thanks, sir. I'll come in the queue again. Thank you so much. Thank you. Thank you.
Mr. Antariksh Paul, you may go in next, please.
Um, yes, am I audible?
Yes, go ahead, please.
Um, so my question was that, uh, the results which are here in this quarter are mixed. However, we have certainly a good audiobook, and as per your clarification, everything is supposed to go all right. The only thing which is concerning me as an investor at this point is that the, like, promoters are reducing their stakes and, like, high pledges. So, I'm a bit concerned about it. Could you please brief me further?
Antarish.
So, Antarish, promoters have been maintaining their stake by infusing money whenever there is a couple of rights issues. They did subscribe, in fact oversubscribed. So, that whenever there is an opportunity, they will keep on trying to do that. However, sorry, what was your first question?
Sir, regarding the promoter's stake only, as it has been reduced in the, like, last two. Another question was with regard to pledge.
Yeah, yes. The pledge is essentially to FCC lender. However, since we are now prepaying their debt, hopefully, in very short period of time, when we achieve our deleveraging, those pledges will also be removed. That's what our target is.
And I just got a question on the promoter's take. I think that as a family, we remain entirely committed to the success of this company. I mean, this is now, you know, a hundred-year-old basically business, you know, within the family. And as far as the stake is concerned, I think it comes down to... As not only fulfilling our obligations with regard to whatever growth capital this company needs, but at the right time, we will take basically and evaluate all the options for increasing our stake as well.
I totally understand, sir, and I wish you good luck, yes, and it's a great company with a long way ahead.
Thank you so much.
Thank you. Mr. Shashikant. Mr. Sashi Kang, please go ahead.
Hi, sir. Good evening. Thank you for the opportunity. So, my question is regarding the nuclear segment. So, in this quarter presentation, there is so very little, you know, disclosure on the nuclear side. So, can you elaborate something on that?
Shashit, look, as I said earlier also, nuclear sector is being played into two parts. There are projects which are being promoted by government-owned entities, and at the same time, there has been a considerable interest in the private sector entities who are examining a lot of new investment opportunities using existing, as well as some new technologies. So, what I can definitely tell you, we are engaged with all these entities in discussing how HTC can render its services to these developers once the rules and everything is clear. A lot of action is going on, and we as a company are actively working with our potential clients. At the same time, we are completing some of our own internal formations, which allows us to take on larger role into this space. Yeah, and you will hear them as we go ahead, because many of these matters are under development at this stage. But for sure, a lot of activities are going on.
So, sir, what is the reasonable expectation that you sense from having your ear on the ground that the rules come from the government that will enable us to engage better?
I think the industry is hopeful, maybe by the end of this parliament session or the winter session. That's what the expectation is.
And what is the reason, I mean, should we expect a significant, you know, order in FY28?
Yeah, I think, yes. Certainly.
Certainly. Certainly.
Something, yes.
Yes. Yes. Yes. Yes. And I'll also add certain things. I mean, please keep this in mind that when HCC is saying nuclear, for us, this is basically nuclear and industrial sector. And we are making a lot of inroads even in the industrial sector, wherein we are talking about some process units, process plants, and we are trying to take the capabilities what HCC has. With the existing plus some additional capabilities, we are addressing that sector too, which allows us to be into space like aluminium, steel, and other businesses.
Okay, sir. Okay. Thanks a lot. Thank you.
Thank you. Mr. Bharat Gupta, please go ahead.
Hello. Am I audible?
Yes, please.
Sir, a couple of questions. So, one is in regard to the arbitration. So, I think we have a sizable amount of receivables outstanding. Can you just provide the expected timelines for monetizing these claims and with respect to the conversion into cash, how much we anticipate over the next two to three years?
So, arbitration, while arbitration tribunal has given this money decree in our favor, naturally clients have challenged it in court. Now different, different arbitrations are at different level of court. And we have been realizing some monies on and off, and we'll continue to do that. However, out of almost 1,700 crores of arbitration award, which are there currently in our favor. If I have to put a timeline by when all of this will get realized, I'll say almost three to four years is something we should be able to realize all of these 1,700 crores.
I just want to add one more thing. I think that what we are seeing is a lot of positivity within the government and our clients to also settle matters. Now, that does involve, in some cases, a haircut. You all observe the vivacee vishvats. Thank you. But these are opportunities along the way that we would consider from time to time, depending on the opportunities before us from a growth perspective, the value of sort of our equity and so on and so forth. I mean, the entire point of actually having approached shareholders... In the way we have in this last year and a half is that we reward shareholders at the end with some results. Now, ideally speaking, most of these awards and claims should have been realized and that capital should have been used for our growth. So, if it's going to be the reverse, then we want to be able to reward our shareholders and the company with the benefit of actually being this patient. So, we are, depending on the vintage of the matter, fairly in advanced stages in some, in some cases, well, in early stages. As Rahul said, you know, broadly speaking, few to four years is a fairly reasonable expectation. And so, I think this is as much information as you can appreciate that we can give you, but yes, it is a material asset on our books, and it will basically, certainly, within some reasonable period of time, be monetized.
Sure, really helpful. My second question pertains to the government, like, with respect to the rail corridors, high-speed rail corridors, which the government is planning to come up. So, how does HCC position itself to participate across these opportunities and given out your expertise with respect to tunneling bridges? So, do you think high-speed rail corridors can become a meaningful contributor to the ordering flows in the next three to five years?
In extra three to five years, yes, and I can tell you we do have the relevant credentials of elevated metro and other things which are necessary for such projects. Naturally, it will also depend upon the project sizing, the nature of the project, but we definitely see that if you are saying it three to five years horizon, this will form a material opportunity pipeline.
So, that's it for myself. Thank you so much.
Thank you.
Thank you. Darshika. Darshika, Khemka, please go ahead. Darfika, are you able to hear us?
Okay, everyone, can you hear me?
Yes, yes, go ahead, please.
All right. Thank you for this opportunity. I'm actually trying to understand the nuclear opportunity for FCC much better, both in terms of our TAM and the scope, the revenue that we can generate from there, the kind of margins that we can have, and also the working capital position, and what is the kind of investment that will go into this business in total, and how much have we done? I'm sorry if you have answered a part of this question, I will at least move on.
No, no. So, Darshikab, I mean, let's take it at a very broad level. Nuclear power plants by nature will cost you somewhere between 18 to 22 crores per megawatt of what is built. Okay. And it can, in some cases, can go even more depending on the type of technology which is being used for it. The type of technologies available definitely are PHWR, LWR, VVR, EPR, AP1000, all these technologies are available, and it is going to be on to the developers what they choose as a right fit for them, okay? So, let's take it like this. The existing capacity is 9 gigawatts, which is planned to be taken to 1000 gigawatts. By 2047, right?
Right.
For the sake of calculation purpose, I mean, you can apply your factors that out of this what can happen and that can show different scenarios. But if we take this number, this alone multiplied by, you know, the per megawatt cost can give you what is the time available.
Perfect.
Right. Of this time, if you ask me, then we have been largely a predominant player into construction of the main plant building and the ancillary plant buildings on the civil side. And some structure and fabrication works. We are teaming up with the right kind of entities that we can take little larger scopes also. Scopes, which allows us to be in a better position to deal with private developers when they're looking at one-stop solution. Of course, there are a lot of inclusions and exclusions into that. Some may make some free supplies, some may not make some free supplies. So that's how. Margin part, I would not like to comment right now because, you know, these projects are, as I said, heavily regulated, and we need to understand what kind of scenarios are before us. But they are labor-intensive jobs, and we definitely intend to make margins in a similar line what we intend to make margins on our routine business, right? That would be our expectation from this. So the value chain, as you said, we are right now on the civil side, but we definitely see good enough room for us to expand on the adjacencies. Maybe a little more also by teaming up with right people. That's what the plan for us is.
Got it. And any investment that we have already done for this business and if you could help us quantify this?
You will appreciate HCC has built, you know, almost 55-60% of the existing power plants. Okay. So we do have considerable in-house knowledge how to deal with that.
And capability.
Yeah, and we will expand on the need based.
Got it. Okay, thank you so much.
Thank you.
Mr. Harish Shiat, please go ahead. Hello. Yes, go ahead. Yes, sir. Go ahead, please.
Good evening. Thanks for the opportunity. My first question is in response to your reasoning for the downfall in the margin, that is purely because of the 8,000 crores of order under mobilization where the revenue and the cost has not matching. That's why the EBITDA is down. So, my question is in two parts. What is the amount quantifiable that or is there any accounting treatment available by which we can keep this money into the inventory till the proper revenue is booked from that project?
So, these specific accounting related things we can discuss separately, Harish. I think this is the forum for these. We can take your ideas separately.
But, look, I think the point is that we continue to maintain the fundamental guidance that our margins, on average, across the year, will continue to be sort of in the mid-teens. You will see, in some cases, depending on the mix, the kind of projects we're executing, EPC versus item rate, milestones have been met or not. In certain cases, in the case of mobilization or not, you will see in some quarters, you will see a below average margin. I mean, in most quarters in the past, for example, you've noticed 15% to 18%. Now, when we've achieved an 18% margin in the past, we've not certainly told you that that is something that is on average what we are going to do. So just commensurate to that, there will be certain quarters where you will basically see something below average. So I think that's the simpler explanation we can give at this point, but very, very happy to basically hear whatever suggestions you have to the finance team.
Okay, okay. My second question is, in the last conference call, we talked about the fund mobilization to the extent of 600 crores by outright or any other means of that thing. Any update on that?
So, we have taken approval from board for that. However, we have not yet decided about doing that and we will come back at the right time depending on our growth capital requirement and new order intake. So, we will take a call accordingly.
Okay. There is no further question, but my suggestion, why I ask my first question is because, you know, the market reacts very negatively to the down in the EBITDA margin. So, some way of some explanation or note to the account would have helped the larger investors rather than only people who are joining the call. Thank you. Thank you and all the best.
Thank you. Mr. Abhishek Lekha. Mr. Abhishek, please go ahead.
Yes, thank you for the opportunity. Yes, the order book has not been to the extent that we expected, and that is one part. And one other part is I keep writing to Investor Relations, though it's not connected to the quarterly call, but I hardly get any reward whatsoever.
Sorry, no. Okay, we will look into it. He is mentioning that he writes to investor relations, but he has not got a response. Oh, okay. We will look into it, Abhishek.
Yeah, thank you. And the order run rate and order booking, this has to be like, you know, anything on Middle East, probably you are expecting some order flow from there or expanding to that area because L&T is getting a lot of orders there. So, what's your take on that?
Arishik, we are, I can say, very selectively focused on some regions. But our 90% focus is on India. Yeah, and we don't have any current pipeline in that region.
Okay, no issues. But in India also specifically, we would like the existing as such a long legacy and such a brand, such a history. But now, financials have been repaired completely, almost done now. So, we would like more of, like, the consistency to return in terms of order booking and some which gives more confidence into the sales revenue booking, something like that.
Absolutely. I mean, I'm well appreciated, and I think that's what we are working on.
Yeah, please. Thank you so much, and please do take the possession of my rewards to start coming in.
All right. Thank you so much. Thank you. Thank you. Any more questions?
I had a query that is HCC interested in working with, like, wind turbines in the future, like wind energy.
Andresh, that's a very interesting question, but actually, you know, I will say on land, no, in marine, we will have to examine that.
All right. Fine.
Thank you.
Thank you. Mr. Rajesh Bhandari, please go ahead. Mr. Bandaari.
Shavik, I think, you know, it is inadvertently, his hand is raised there. That's not been put down.
Okay. Hello. Hello. Yes, Mr. Bhandari, go ahead, please.
Yeah, can you hear me, sir? Yeah, you just mentioned that by 2047, we will be having about 10,000 giga, 1,000 gigawatt of nuclear power.
Rajeshji, no, the government of India's plan is to take the nuclear power to 100 gigawatts. Right now it is 9 gigawatts.
Okay, so 100 gigawatts means it will be in 20 years. If we take, it is going to be about 1 lakh road per year on an average. As you mentioned that this is 20 to 22 crore per megawatt.
Absolutely. It's a big business.
Yeah, it's a big. Yeah, yeah, that's what. Because and for HCC, it is going to be a very big business if we see it from that longer point of view.
Very good. Very good.
Sir, this railway is planning that from port to the terminal. From port to the terminal, there will be hyper loops. That is, they need not go through that material to the railway siding and all that. There will be hyper loops with very high speed of the transportation system, and it will be all done through tunneling.
Uh, Rajeshji, uh, that's, I, I think, to be honest, uh, uh, that's something in a very, very concept stage, and we can't comment about it on this stage. We, we really don't. Oh, achha, achha. Yeah, yeah, yeah.
Yes, sir, this is what you have told, like a 1700 crore, which is in arbitration and which is the chance of our own. That total amount, once we get, maybe next two to three years, of course, we will do it without it.
That's what the plan is. We don't have to just hinge our hopes on that. But yes, when it comes, that will...
In fact, it is more likely... I think the conservative answer to give is that while these assets can completely basically match in those liabilities, the counting of those asset realizations like we've said in the previous answer could be 3-4 years. Before that, in any case, we will be looking to prepay the debt. And so, I certainly expect one way or the other within this timeline for HTC to be largely debt free.
Oh, okay. How much of the debt is there in total?
I believe there are no further questions.
There is one question, if I may ask.
Yeah, go ahead, please.
Yeah, yeah. So, we have transferred some awards to our one subsidiary, that is HCC Contact Solution of around 2,000 crores. So, is there any, we can say, planning to reduce stake and reduce bank guarantee in this entity as we done in Prolific?
Yes, please.
So, see, transfer, that's a wholly owned subsidiary, right? Whatever award is being transferred, those continue to be our award. There is no debt in that entity. There is no liability in that entity. So, the only reason for transferring those award is there to have clear focus with regard to realizing. And settling those awards, rather than those awards continuing to be there in HCC books, then your received balance sheet numbers looking much bigger. Other than that, there is no reason for that. So, I mean, not really to be given too much of input up there.
Okay. Thank you. That's it.
Thank you, Mr. Agarwal. With that, we would like to, you know, end this call. Thank you again for joining us.
Thank you, everyone. Thank you.
0:53 to 47:09 · One card per analyst, follow-ups included. Each plays from its start, and the one being answered is marked.
All right.
Just a minute, please.
Santosh Rai: All right. So, highlights of the quarter. Standalone turnover at 982 crore and 37 crore of net profit for Q1FY27. Consulpat improved margin to 51 crore on revenue of 993 crores. A beta margin for Q1FY27 is at 10.7% versus
14.9% in Q1FY26.
Santosh Rai: Pre-payment of 100 crores of debt planned in August 26, with substantial payments to follow. We have secured one order in Bhutan for 127 crores, and we are lowest bidder on bids worth 1671 crores. We have also submitted bids around 10,000 crores, in which…
Hello.
Santosh Rai: Yes, Siddharth. Siddharth, I'm sorry.
Yes, I just wanted to understand the reason behind decline in EBITDA margin. Lower revenue, we understand, because of order completion stages, but what was the reason behind the costs running up significantly?
Rahul Shukla: So, Sridhant, we have got many projects which are at various stages of mobilization. Almost 8000 crore in our order book are projects which we have acquired during last 15 months period. So, while they are being mobilized, we are making expenses. However…
Also speaking: Shavik
Yeah. So, my question is regarding that our current order book is approximately 13,000 crore. So, can you please share the average remaining execution period of this and expected EBITDA on this order book?
Rahul Shukla: So, as I mentioned, a significant portion of this order book is something that we have recently acquired within the last 15 months. So, on an average, we can say that the next three and a half years is the timeline that we look forward to complete this entire…
Also speaking: Santosh Rai, Shavik
So, my question is to Rahul. So, what is the, when can we expect this order, which are under the L1, which you have shared in the presentation?
Rahul Shukla: So, we can expect somewhere by end of Q2? To get it converted. That's what we are targeting.
Also speaking: Santosh Rai, Shavik
Yeah, hi, sir. A couple of questions from my side. Basically, starting with, you know, some clarifications. So, we have one order in April, basically from Serco, worth of rupees 1100 crores. So, that project is basically, has been considered under order book or still it is under the L1 position?
Rahul Shukla: Under order book. It is under order book.
Also speaking: Santosh Rai, Shavik
Hi, hello, I'm audible, sir.
Shavik: Yes, yes, go ahead.
Also speaking: Rahul Shukla, Arjun Dhawan
Um, yes, am I audible?
Shavik: Yes, go ahead, please.
Antarish.
Sir, regarding the promoter's stake only, as it has been reduced in the, like, last two. Another question was with regard to pledge.
Rahul Shukla: Yeah, yes. The pledge is essentially to FCC lender. However, since we are now prepaying their debt, hopefully, in very short period of time, when we achieve our deleveraging, those pledges will also be removed. That's what our target is.
Also speaking: Arjun Dhawan, Shavik
Hi, sir. Good evening. Thank you for the opportunity. So, my question is regarding the nuclear segment. So, in this quarter presentation, there is so very little, you know, disclosure on the nuclear side. So, can you elaborate something on that?
Santosh Rai: Shashit, look, as I said earlier also, nuclear sector is being played into two parts. There are projects which are being promoted by government-owned entities, and at the same time, there has been a considerable interest in the private sector entities who are…
Also speaking: Shavik
Hello. Am I audible?
Shavik: Yes, please.
Also speaking: Rahul Shukla, Arjun Dhawan, Santosh Rai
Okay, everyone, can you hear me?
Shavik: Yes, yes, go ahead, please.
Also speaking: Santosh Rai
Right.
Santosh Rai: For the sake of calculation purpose, I mean, you can apply your factors that out of this what can happen and that can show different scenarios. But if we take this number, this alone multiplied by, you know, the per megawatt cost can give you what is the time…
Perfect.
Santosh Rai: Right. Of this time, if you ask me, then we have been largely a predominant player into construction of the main plant building and the ancillary plant buildings on the civil side. And some structure and fabrication works. We are teaming up with the right kind…
Got it. And any investment that we have already done for this business and if you could help us quantify this?
Santosh Rai: You will appreciate HCC has built, you know, almost 55-60% of the existing power plants. Okay. So we do have considerable in-house knowledge how to deal with that.
Also speaking: Shavik
Good evening. Thanks for the opportunity. My first question is in response to your reasoning for the downfall in the margin, that is purely because of the 8,000 crores of order under mobilization where the revenue and the cost has not matching. That's why the EBITDA is down. So, my question is in two parts. What is the…
Rahul Shukla: So, these specific accounting related things we can discuss separately, Harish. I think this is the forum for these. We can take your ideas separately.
Also speaking: Arjun Dhawan, Shavik
Yes, thank you for the opportunity. Yes, the order book has not been to the extent that we expected, and that is one part. And one other part is I keep writing to Investor Relations, though it's not connected to the quarterly call, but I hardly get any reward whatsoever.
Rahul Shukla: Sorry, no. Okay, we will look into it. He is mentioning that he writes to investor relations, but he has not got a response. Oh, okay. We will look into it, Abhishek.
Also speaking: Santosh Rai
I had a query that is HCC interested in working with, like, wind turbines in the future, like wind energy.
Santosh Rai: Andresh, that's a very interesting question, but actually, you know, I will say on land, no, in marine, we will have to examine that.
Also speaking: Shavik
Yeah, can you hear me, sir? Yeah, you just mentioned that by 2047, we will be having about 10,000 giga, 1,000 gigawatt of nuclear power.
Santosh Rai: Rajeshji, no, the government of India's plan is to take the nuclear power to 100 gigawatts. Right now it is 9 gigawatts.
Very good. Very good.
Sir, this railway is planning that from port to the terminal. From port to the terminal, there will be hyper loops. That is, they need not go through that material to the railway siding and all that. There will be hyper loops with very high speed of the transportation system, and it will be all done through tunneling.
Santosh Rai: Uh, Rajeshji, uh, that's, I, I think, to be honest, uh, uh, that's something in a very, very concept stage, and we can't comment about it on this stage. We, we really don't. Oh, achha, achha. Yeah, yeah, yeah.
Also speaking: Rahul Shukla, Arjun Dhawan
There is one question, if I may ask.
Shavik: Yeah, go ahead, please.
Yes, please.
Rahul Shukla: So, see, transfer, that's a wholly owned subsidiary, right? Whatever award is being transferred, those continue to be our award. There is no debt in that entity. There is no liability in that entity. So, the only reason for transferring those award is there to…
Okay. Thank you. That's it.
Shavik: Thank you, Mr. Agarwal. With that, we would like to, you know, end this call. Thank you again for joining us.
Also speaking: Santosh Rai
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