Afcons Infrastructure Limited — Q2 FY26

Afcons Infrastructure Ltd Q2 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=op1ichl-r-U Published: 6 months ago

0:02 2 seconds Ladies and gentlemen, good day and welcome to the ASCON's Infrastructure Limited Q2 and H1 FY26 earnings 0:10 10 seconds conference call hosted by DAM Capital Advisors Limited. As a reminder, all participant lines will be in the 0:17 17 seconds listenonly mode and there will be an opportunity for you to ask questions after the presentation concludes. Should 0:25 25 seconds you need assistance during this conference call, please signal an operator by pressing star then zero on 0:33 33 seconds your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Miss Bumika 0:40 40 seconds Nay from DAM Capital. Thank you and over to you ma'am. 0:45 45 seconds Yeah, thanks. Um good afternoon everyone and a warm welcome to the Q2 FI26 earnings call of Appcon's 0:52 52 seconds Infrastructure. We have the management today being represented by Mr. 0:56 56 seconds Subramanyan Krishna Morti executive chairman, Mr. Shinasan Pararmmasan, managing director, Mr. Romesh Kumar Ja 1:05 1 minute, 5 seconds CFO and Mr. Gitesh Singh head corporate strategy. At this point I'll hand over the floor to Mr. Krishna Morti for his initial remarks. Post we'll open up the 1:14 1 minute, 14 seconds floor to for Q&A. Thank you and over to you sir. 1:21 1 minute, 21 seconds Uh thank you Bumika. Good afternoon ladies and gentlemen. 1:26 1 minute, 26 seconds It's always a pleasure to connect with our valued investors, analysts and stakeholders. 1:31 1 minute, 31 seconds I thank you for joining us today and for your continued support in our journey. 1:37 1 minute, 37 seconds Our financial records and investor presentation have been uploaded on the stock exchanges and I trust you have had the opportunity to review them. 1:45 1 minute, 45 seconds Joining me today are parame managing director Kumar Jar chief financial officer and he testing head corporate strategy. 1:54 1 minute, 54 seconds Let me begin with an overview of our fin financial performance for the quarter ending September 2025. 2:02 2 minutes, 2 seconds For the first half of FI26 our revenue was 6520 crores representing a growth of 2:09 2 minutes, 9 seconds 3.4% yearon year while rose 6% to 846 crores. AITA margin came in at 13% 2:18 2 minutes, 18 seconds reflecting an improvement of 30 basis points. 2:22 2 minutes, 22 seconds The part for H1 stood at 242 crores, a 7% increase over the previous year. 2:29 2 minutes, 29 seconds In Q2 of FI26, we recorded a revenue of 3101 cr marginally higher and 3090 cr in Q2 of FI35. 2:39 2 minutes, 39 seconds AITA for the quarter stood at 401 cr compared to 427 cr in the same period last year. The AITA margin for Q2 FI26 2:48 2 minutes, 48 seconds was 12.9% broadly in line with last year's level. 2:53 2 minutes, 53 seconds Profit tax came in at 105 crores compared to 135 crores in Q2 of FI25. 3:01 3 minutes, 1 second Sorry, compared to 135 cr in Q2 FI25 reflecting a margin of 3.4%. 3:09 3 minutes, 9 seconds Despite near-term pressures on margins due to mix of projects under execution, our overall profitability for the first year's first half improved modestly with a bit of margin rising to 13%. 3:22 3 minutes, 22 seconds Now turning to the industry, the global infrastructure sector continues to face dynamic and evolving landscape. 3:30 3 minutes, 30 seconds Geopolitical uncertaintities, macroeconomic headwinds have led to recalibration of business and priorities in several regions. 3:39 3 minutes, 39 seconds However, we continue to see healthy project pipelines in select international markets particularly in Africa, Middle East and 3:46 3 minutes, 46 seconds Eastern Europe where governments are prioritizing connectivity, urban development and water related infrastructure. 3:53 3 minutes, 53 seconds In India, government's commitment to infrastructure development remains strong. 3:58 3 minutes, 58 seconds Both central and state governments have a healthy pipeline of projects. 4:03 4 minutes, 3 seconds So far the current fiscal has seen a moderation in the phase of project awards. However, we expect that H2 will see an uptake on capital expenditure 4:12 4 minutes, 12 seconds towards roads, railways, urban transit, marine, hydro and water infrastructure. 4:21 4 minutes, 21 seconds Afan's diversified portfolio, strong execution capabilities and food and risk management framework positions us well to navigate these near-term challenges 4:30 4 minutes, 30 seconds and help us in capitalizing emerging opportunities both in India and overseas. 4:36 4 minutes, 36 seconds We continue to focus on delivering complex high impact projects that contribute meaningfully to national development and global infrastructure transformation. 4:46 4 minutes, 46 seconds Now speaking about certain recent development in the organization front we are pleased to share that Mr. Palan Mistri and Furos Mistri representing the 4:54 4 minutes, 54 seconds next generation of sharpology group have joined the board of hop's infrastructure their induction is a significant milestone reinforcing promoter group's 5:03 5 minutes, 3 seconds long-term commitment to ensuring continuity in vision and strategic direction we are equally pleased to welcome Mr. 5:11 5 minutes, 11 seconds Santo Nay an independent director and Nay brings with him over four decades of experience in project 5:18 5 minutes, 18 seconds finance, banking and insurance. These new inductions to the board will provide invaluable strategic insight, strengthen 5:26 5 minutes, 26 seconds governments and supporting Afan's long-term growth initiatives. 5:31 5 minutes, 31 seconds On the operation side, Awans continue to deliver on complex engineering challenges and set benchmarks in execution excellence. 5:40 5 minutes, 40 seconds One, we achieved a major milestone in Mumbai Mumbai Ahmedabad highspeed rail C2 package with final breakthrough of NADM tunnel in the presence of Union 5:49 5 minutes, 49 seconds Railway Minister Rashin Wishnau. This completes 4.82 km of excavation through tough geology. 5:57 5 minutes, 57 seconds In Kore MRTS we completed 6.13 km of TBM tunneling and in Delhi MRTS that is DC7 6:05 6 minutes, 5 seconds package we achieved 11.62 km of TBM tunneling. 6:09 6 minutes, 9 seconds Reinforcing our leadership in underground works. 6:14 6 minutes, 14 seconds Our Patul hydroelect electric power project has been chosen as the best rated construction project by NHPC for the financial year 2425 amongst all other ongoing projects. 6:25 6 minutes, 25 seconds Aons continues and has continued to win accolades with prestigious institutions such as ET now intra construction world 6:33 6 minutes, 33 seconds construction week recognizing as one of the best companies in the industry and also bestowing some of our marquee projects with awards for excellence in their quality and execution. 6:45 6 minutes, 45 seconds In closing, I would like to re reiterate our commitment to operational excellence, stakeholder value creation 6:52 6 minutes, 52 seconds and sustainable growth. With the continued support of our promoters, the trust of our clients and the dedication 6:59 6 minutes, 59 seconds of our people, we are well poised to build on a legacy and shape the future of infrastructure. 7:06 7 minutes, 6 seconds Thank you for your confidence in us. 7:08 7 minutes, 8 seconds With this short speech, I request our managing director promotion to share his remarks. 7:19 7 minutes, 19 seconds Thank you, Mr. Subramanyan and good afternoon everyone. 7:23 7 minutes, 23 seconds I extend a warm welcome to all participants on this earning call. 7:30 7 minutes, 30 seconds Adding to Mr. Subraman's update on the changes to our board composition. It gives me great pleasure to share that 7:38 7 minutes, 38 seconds Mr. Shapur Mistri has been elevated to the role of chairman emirators and Mr. 7:43 7 minutes, 43 seconds Subramanyan has taken char as executive chairman of Afans. 7:49 7 minutes, 49 seconds on behalf of the entire Aron's family, I congratulate him on this new role. 7:55 7 minutes, 55 seconds And also he received a lifetime achievement award at the construction world global awards 2025, 8:04 8 minutes, 4 seconds a fitting recognition of his outstanding leadership and contributions to the infrastructure construction sector. 8:11 8 minutes, 11 seconds Let me now turn to the business environment and operational performance. 8:16 8 minutes, 16 seconds The first half of financial year 26 presented its share of challenges. 8:21 8 minutes, 21 seconds Execution some projects was temporarily impacted by prolonged monsoon and natural calamities. Persistent liquidity 8:29 8 minutes, 29 seconds issues with certain clients added to these headwinds. However, we are actively working with clients and authorities to recover lost ground and regain momentum in the second half. 8:40 8 minutes, 40 seconds The pace of ordering activity has been slow in the first half of the year but we expect significant uptick in the 8:47 8 minutes, 47 seconds second half. Our ordering flow during the first half stood at 1,268 crores and our pending order book 8:55 8 minutes, 55 seconds remains strong at 32,681 crores. We do expect some of the L1 orders to rectify in the current quarter. We have a strong 9:04 9 minutes, 4 seconds project pipeline of around 3.6 trillion spread across segments and geographies. 9:10 9 minutes, 10 seconds We have always expressed that in our industry especially in the case of companies like ours whose focus is very 9:17 9 minutes, 17 seconds different water-to-art comparison on order book may not be relevant. Suffice to say on the back of strong pipeline 9:24 9 minutes, 24 seconds and ongoing tendering activities we will achieve the full order book guidance. On the international front, we expect to 9:32 9 minutes, 32 seconds receive letter of award for the Crocher Railway project before end of third quarter of this financial year and the 9:39 9 minutes, 39 seconds Lway for the road projects to follow. We are also actively working to identify and pursue suitable opportunities in the Middle East building on the renewed 9:48 9 minutes, 48 seconds engagement that began earlier this year and in Africa. With these projects coming in, the share of overseas project will be close to 30% in the pending 9:56 9 minutes, 56 seconds order book. In the domestic market, we are witnessing heightened competition particularly in metro projects. Afcon 10:04 10 minutes, 4 seconds continues to remain selective and disciplined focusing on projects that align with our technical strengths and prudent trust framework. 10:14 10 minutes, 14 seconds We are also seeing a gradual evolution in the government's infrastructure strategy with a growing share of projects being offered under HAM annuity 10:23 10 minutes, 23 seconds and B models to capitalize on these opportunities as a preferred EPC player. We are having necessary engagements. 10:31 10 minutes, 31 seconds Operationally, I'm pleased to share that the first containment of tunnel boring mission for our C2 project have arrived 10:38 10 minutes, 38 seconds from China. However, the second confinement is awaiting clearance in the port for the last two months and we are actively pursuing with all the concerned 10:46 10 minutes, 46 seconds authorities and ministries to secure its release at the alias. In the jali mission particularly in Uttar Pradesh, 10:53 10 minutes, 53 seconds delays in front continue to affect progress. We are in active dialogue with clients to expedite the release of money. Despite our best efforts given 11:03 11 minutes, 3 seconds headwinds faced in the first half including delays in the conversion of L1 orders our revenue growth for financial 11:10 11 minutes, 10 seconds year 26 will be below the earlier guidance. We estimate revenue growth to moderate to 10% plus. 11:20 11 minutes, 20 seconds We had earlier expressed 20% plus. Now we are reducing our guidance to 10% plus. In conclusion, while the first 11:28 11 minutes, 28 seconds half tested our resilience, our fundamentals remain strong. With a healthy order book, with a robust opportunity pipeline and deeply 11:37 11 minutes, 37 seconds committed team, Afcon is well positioned to regain momentum in the second half and continue to deliver long-term value 11:46 11 minutes, 46 seconds to all stakeholder. Thank you once again for your confidence and continued support. 11:53 11 minutes, 53 seconds I'll now hand over to Mr. Ram J of CS. 12:00 12 minutes Thank you sir. Uh good afternoon everyone. Uh before talking on the numbers let me reiterate that our quarterly number varies. 12:10 12 minutes, 10 seconds Company is into business of construction. The margin in a quarter varies based on the nature type and quantum of work we execute. So quarterly 12:18 12 minutes, 18 seconds results may vary in different quarter and may not be indicative of annual result or any trend. It it can be derived from that. 12:27 12 minutes, 27 seconds Uh specific to the numbers for the half year ended we have done 6520 crores of uh topline against last year 12:36 12 minutes, 36 seconds uh H1 topline of 633 crores showing a growth of 3.4% uh on a on a yearly half yearly number. 12:47 12 minutes, 47 seconds In Q2 we have achieved top line of rups 3,1 crores with 3090 crores in previous year 12:55 12 minutes, 55 seconds Q2. This is also a modest 4% growth in topline over the previous year Q2. Now this modest growth is manifestation of 13:03 13 minutes, 3 seconds stretch payment across uh projects and few specific projects where certification and payments are getting delayed. 13:13 13 minutes, 13 seconds jobs where we were declared L1 for quite some time back are still not awarded. 13:20 13 minutes, 20 seconds Uh moving on to uh the EITA for the half year ended we have done EITA of 846 cr 13:27 13 minutes, 27 seconds which uh translates into in terms of percentage 13% and there is a growth of uh around 6% from the previous year aa 13:36 13 minutes, 36 seconds number for the half year. For the quarter we have done 401 cr. For the quarter also we have clocked uh uh 12.9% 13:45 13 minutes, 45 seconds of aa percentage and uh in in our calculation we considered bg 13:53 13 minutes, 53 seconds commission as part of our cooperate of our part of our operating expenditure. 13:58 13 minutes, 58 seconds So aa what we are talking about is after removal of bg commission as operating expenditure. At the same time we are 14:04 14 minutes, 4 seconds including uh in in our abita calculation we include other income as part of revenue. We have explained in past that 14:13 14 minutes, 13 seconds our other income needs to be understood in the perspective of our business. 14:16 14 minutes, 16 seconds Arbitration interest foreign currency exchange gain and miscellaneous incomes are recurring and very integral to our business. Hence needs to be considered 14:25 14 minutes, 25 seconds as other operating income. So for the for the first half around 161 crores is other operating income. Now having done 14:34 14 minutes, 34 seconds 13% AIA in H1 our fullear AITA should be better than our general annual guidance 14:40 14 minutes, 40 seconds of around 11%. Generally uh we have been uh talking about 11% Tita margin that we 14:47 14 minutes, 47 seconds are going to clock every year because construction is full of contingencies and our endeavor always is to save on those cont contingencies and optimize 14:56 14 minutes, 56 seconds the margin that many a times it may not be possible to save on those contingencies that's where we are giving 15:03 15 minutes, 3 seconds guidance of 11%. But this half year we have already done 13%. So we expect the number to be better than that. 15:11 15 minutes, 11 seconds In terms of profitability, uh the profit before tax for the half year is 333 15:18 15 minutes, 18 seconds crores which is 5.1% of the top line and uh it shows a 2% growth yi and for the 15:25 15 minutes, 25 seconds quarter it is 149 crores 4.8% 8% in terms of percentage. Uh profit after tax we have done 242 crores which is 3.7%. 15:37 15 minutes, 37 seconds Uh this again has grown at grown uh 6.8% from the previous year and for the quarter we have done 105 cr which is 3.4%. 15:48 15 minutes, 48 seconds Profits for the half year have improved because we had some upside on account of arbitration award and also because of margin improvement in three few 15:56 15 minutes, 56 seconds projects. we could save on some of the material cost and improve on margins in some projects. Uh that is reflecting in the improvement in uh profit after tax. 16:08 16 minutes, 8 seconds But at the same time uh let me just uh reiterate some uh some of the other aspects. uh in this quarter we have done 16:18 16 minutes, 18 seconds a sizable amount of provisioning towards uh one of the in one of the project and that's where you'll find that our other 16:25 16 minutes, 25 seconds expenditures is quite high in the quarter as well as in the half year despite that we have achieved this kind of profitability number 16:34 16 minutes, 34 seconds finance cost has increased uh we have improved our average borrowing cost in H1 FY26 as compared to H1 2025 also from 16:44 16 minutes, 44 seconds what we had achieved in the last financial year overall March 25. But in H1 the average borrowing has gone up. So 16:52 16 minutes, 52 seconds despite improving on the average interest cost on bank borrowing the overall uh interest uh cost has gone up. 17:00 17 minutes Also the interest bearing advances for the period ending September 25 has moved to around 40% in the overall component 17:08 17 minutes, 8 seconds of advance we have. This was 20% previous year September. So the interest 17:15 17 minutes, 15 seconds bearing component in the total advances what we have from the customer has just doubled and because of that there is a 17:22 17 minutes, 22 seconds significant increase in uh interest cost from the customer advances and that's the reason uh the the overall finance 17:31 17 minutes, 31 seconds cost has gone up despite bringing in uh some of the some like I have talked about the average interest cost and BG commission and LC commission we have 17:40 17 minutes, 40 seconds reduced some of the other interest also we have reduced but on Overall basis finance cost has gone up. We expect the 17:48 17 minutes, 48 seconds situation to improve once our L1 orders materializes because large part of it is international orders where the advances are interest free. 17:56 17 minutes, 56 seconds These profitability numbers is despite that you know we continue to account for accelerated depreciation on our TBMs 18:04 18 minutes, 4 seconds uh of uh the total depreciation is around 4% of the of of the top line in that close to 1.5% is on account of 18:14 18 minutes, 14 seconds accelerated depreciation. So profit numbers whatever you are looking at is after that accelerated depreciation 18:20 18 minutes, 20 seconds and uh ro and roe numbers the roe number uh is again after accounting for this soc for the first half is 15% and ro is 18:29 18 minutes, 29 seconds around 11% of course this needs to be looked at on an annual basis uh moving to networking capital 18:37 18 minutes, 37 seconds networking capital has increased uh we are witnessing delays in certification of the work done and release of payments in some projects. 18:45 18 minutes, 45 seconds This has led to increase in uncertified work done leading to jump in working capital requirements. I'm not getting into specific about any project but uh 18:54 18 minutes, 54 seconds there are uh there are many projects we have witnessed that the payments are getting stretched. Few projects there are certification and payment issues. 19:03 19 minutes, 3 seconds Now uh on on debt in H1 operations had to be funded. So debt has moved to 3,472 19:12 19 minutes, 12 seconds crores on a gross basis and rups 2714 crores on net basis. On net on net debt 19:20 19 minutes, 20 seconds debt basis the debt to equity works out to be around 0.5 times of the net worth. 19:25 19 minutes, 25 seconds Uh on behalf of uh team I thank everyone for attending this call. Now I request moderator to open the floor for Q&A. 19:34 19 minutes, 34 seconds Thank you sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. 19:46 19 minutes, 46 seconds If you wish to remove yourself from from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. 19:57 19 minutes, 57 seconds Ladies and gentlemen, we will wait for a moment while the question cue assembles. 20:14 20 minutes, 14 seconds The first question is from the line of Mr. Adita from Invest India. Please go ahead. 20:23 20 minutes, 23 seconds Hi, good afternoon sir. Um, so my first question is on uh two large opportunities personally that we are 20:31 20 minutes, 31 seconds having in front of us. Uh, one being Wadwan port, the other one being uh dubet and link. uh it would be great if 20:38 20 minutes, 38 seconds you could kind of uh share some details on uh the status of these two projects and uh uh how we see uh the timelines for these projects. 20:49 20 minutes, 49 seconds Vadwan port. 20:53 20 minutes, 53 seconds Wadwan port we have already submitted the bid. 20:56 20 minutes, 56 seconds Technical bit is opened yesterday and uh after clarification and other thing financial bit could opened 21:06 21 minutes, 6 seconds towards end of the quarter or beginning of next quarter results could be announced there 21:13 21 minutes, 13 seconds and uh that is as far as Wadwan is concerned. What is the other one? 21:18 21 minutes, 18 seconds And this would be for the breakwater sir. Pardon? This is for the breakwater. For breakwater. 21:25 21 minutes, 25 seconds This is for the breakwater. Breakwater there are uh details of biders and others are public information and uh for 21:34 21 minutes, 34 seconds DSST project it is still going on. Bit submissions date is still away. We are in active discussion with all concerned. 21:43 21 minutes, 43 seconds Uh beyond that I'm not in a position to say anything at this point. 21:50 21 minutes, 50 seconds Understood. Understood sir. Uh so my second question is on Mumbai highspeed rail project. Uh if you could share details on how much uh work has already 21:59 21 minutes, 59 seconds been done uh and what kind of revenues and margins uh would we have recorded until now? Has the margin recognition 22:06 22 minutes, 6 seconds started on that or or is it likely to be starting once we move little ahead uh in the project? We have uh uh done about 22:15 22 minutes, 15 seconds 15% of the project. See substantial part of the uh building schedule is on TBM 22:23 22 minutes, 23 seconds tunneling. NATM tunneling of 4.8 kilometers is already completed. The lining work is going on. The TBM 22:31 22 minutes, 31 seconds tunneling uh all of you are aware of the machine arrival related delays. The first set of containment has come. It is 22:40 22 minutes, 40 seconds not full consignment. The second set has to come to make it in full. After that PBM tunneling will start effectively the 22:49 22 minutes, 49 seconds uh profitability other thing will the turnover will increase as you progress on the TBM tunneling. That is where we 22:58 22 minutes, 58 seconds stand. In terms of profitability it is on expected lines. We don't expect any surprises over there. 23:06 23 minutes, 6 seconds But so far would we have recorded any margins from the project uh in 15% of the work that has been done or uh will margin recognition start little later? 23:15 23 minutes, 15 seconds No margin recognition typically we start at 10%. And one important development on this is uh uh highspeed railway 23:24 23 minutes, 24 seconds authority has accepted this delay of TBM arrival and other things as a force major condition which is eligible for 23:32 23 minutes, 32 seconds compensation to the uh contractor. They have officially communicated to us force major acceptance. 23:42 23 minutes, 42 seconds Understood sir that that's great. Thank you so much. Thank you. 23:49 23 minutes, 49 seconds The next question is from the line of Sherom Kapoor from Jeffy's group. Please go ahead. Hi sir, thanks for the 23:58 23 minutes, 58 seconds opportunity. I just want to ask you about your L1. So could you quantify what what is your L1 position currently and if you could give the breakup you 24:06 24 minutes, 6 seconds know within Croatia between the road and the railway job as well as the other L1's like in Maharashtra. If you could 24:12 24 minutes, 12 seconds give the breakup please. See in uh Maharashtra L1 it continues to be the 24:19 24 minutes, 19 seconds four jobs. Nagpur Gundia Expressway package 1 which is 2599 24:26 24 minutes, 26 seconds crores. Napur Gundia Expressway package 2849 crores. Pune ring road uh both put 24:35 24 minutes, 35 seconds together both packages package 5 and package 7 put together is 4,787 crores. Croia 24:43 24 minutes, 43 seconds uh the so first road project is 2406 second is 2144 24:51 24 minutes, 51 seconds railway is 6771 and there is another uh the subsequent to that 24:59 24 minutes, 59 seconds with this we have total L1 project of around 23,000 crores 25:06 25 minutes, 6 seconds and of this uh we do expect uh some of the jobs to come in the current quarter 25:12 25 minutes, 12 seconds With respect to Maharashtra, I think uh in the last call also people were asking 25:19 25 minutes, 19 seconds uh there is some amount of uh uh uncertainty because in some of the 25:26 25 minutes, 26 seconds projects they have not they just about commenced the land acquisition activity. 25:32 25 minutes, 32 seconds Therefore there is a debate within the government whether these projects have to go for rebuild after the land acquisition is completed or whether it 25:41 25 minutes, 41 seconds has to be awarded and then adequately handled is going on. So we have been engaging actively with the government 25:50 25 minutes, 50 seconds but uh we need to see what is going to be the final decision. Okay that is the situation as far as the Maharashtra 25:57 25 minutes, 57 seconds projects are concerned. All the other projects uh we expect substantially in the 26:04 26 minutes, 4 seconds current uh quarter one or two could slip to the next quarter early next quarter. Understood sir. 26:12 26 minutes, 12 seconds Some of these could happen in the current month itself. 26:15 26 minutes, 15 seconds Got it sir. That's that's helpful. And just on your order flow guidance are you still sticking to your 20,000 cr uh guidance for the full year uh or any 26:24 26 minutes, 24 seconds changes to that? 100% we are achieving a 20,000 cr cadence. 26:30 26 minutes, 30 seconds Understood sir. And just if I could ask you last thing your prospect pipeline you mentioned is 3.6 trillion. Would you be able to give us a break up of that across segments and between domestic and international? 26:40 26 minutes, 40 seconds Mr. 26:42 26 minutes, 42 seconds I'll just give you the breakup. So out of this 3.6 lakh cr which we have talked about. Uh as earlier trends are always 26:50 26 minutes, 50 seconds there. The largest chunk lies in the urban infrastructure project around 1.6 6 lakh cror is in the urban infrastructure for us urban 26:58 26 minutes, 58 seconds infrastructure essentially means underground metro elevated metro including bridges as well and then in hydro and underground space including 27:07 27 minutes, 7 seconds water works around uh n around 94,000 crores is the projects which we see uh 27:15 27 minutes, 15 seconds then in the road business which includes road and rail what we call as surface transport around 65,000 crores and marine and industrial around 43,000 27:24 27 minutes, 24 seconds crores uh that is on the segmental breakup. In terms of geographical breakup, it is around 1/4 and uh 3/4. So 1/4 is from 27:32 27 minutes, 32 seconds the overseas market, 3/4 is from the domestic market. 27:36 27 minutes, 36 seconds Got it, sir. Thank you so much. Very helpful. 27:40 27 minutes, 40 seconds Thank you. The next question is from the line of Mr. Mahesh Bendre from LIC Mutual Fund. Please go ahead. 27:49 27 minutes, 49 seconds Hi sir, thank you so much for the opportunity sir. the last conference call uh you mentioned that we I mean you were guided for 20 25% kind of growth 27:59 27 minutes, 59 seconds now we are talking about 10% kind of growth so what I changed I mean this in this last of course I said that is not 28:06 28 minutes, 6 seconds the 20 to 25% minimum 20% is the guidance what we had given earlier what has 28:16 28 minutes, 16 seconds changed since some of the L1 orders which I explained to the earlier querist that uh we were expecting to get it 28:24 28 minutes, 24 seconds converted in the first and second quarter and some of these we were expecting the uh you work to happen in the second half of the financial year. 28:35 28 minutes, 35 seconds Number one. Number two, some of the projects uh there is no visibility with respect to payment forthcoming. For example, 28:43 28 minutes, 43 seconds Jalgiban mission, we were slated to complete the entire project in the current financial year. We had to stop 28:51 28 minutes, 51 seconds uh at the project primarily because payment is not forthcoming. We are stuck with 450 crores of receivables in that 28:59 28 minutes, 59 seconds project and uh so few other projects of uh Indian funded projects abroad is also 29:06 29 minutes, 6 seconds seeing some small lesser traction because the country's defaulted to India on the committed repayments and other things. Because of that it is hanging on 29:16 29 minutes, 16 seconds a thin thread. With these there are uh issues with respect to uh this thing not 29:23 29 minutes, 23 seconds related to us with respect to the environment. Due to that we need to take a cautious step based on our own uh 29:30 29 minutes, 30 seconds assessment of the situation. Therefore we have to consciously bring down certain value of the turnover in some projects. This uh jgan mission by now we 29:39 29 minutes, 39 seconds would have progressed very well. We would have completed in the current financial year. we have to do till about 600 650 course of work which we are not able to take up for the simple reason 29:48 29 minutes, 48 seconds money is not forthcoming and uh people at all levels have been met including CM's level and all therefore that's 29:56 29 minutes, 56 seconds something then the payment is going to come all these being having lot of uncertainty we have to take care of the 30:04 30 minutes, 4 seconds interest of the company and taking that we have taken a call to take some of these tougher calls which could result 30:12 30 minutes, 12 seconds in reduced turnover but it not compromised on our margin it not while the percentage of growth could get compromised will still be growing. 30:23 30 minutes, 23 seconds Yeah. So uh I mean uh so can this I mean the revenue that was expected to book in I'm sorry to interrupt Mr. Mahesh you 30:32 30 minutes, 32 seconds are not audible uh can you please come again with your question? Yeah I'm audible now. 30:38 30 minutes, 38 seconds Hello slightly yes sir please go ahead now. 30:40 30 minutes, 40 seconds Yeah. So, so whatever the revenue we uh we we could have booked a lunch last 6 month is it possible I mean those 30:48 30 minutes, 48 seconds revenues can be booked next year I mean first half 30:55 30 minutes, 55 seconds subject to some of the payment situation improving with some of the clients. 31:02 31 minutes, 2 seconds Okay. So this is nothing to do with company like specific I mean we have purposefully slowed down our execution because of the payment issue. Is it the right way to uh 31:10 31 minutes, 10 seconds correct? Correct. We have not slowed down. Some projects we even stopped. Okay. Sure. 31:18 31 minutes, 18 seconds We have demobilized some projects giving notice to the client. 31:24 31 minutes, 24 seconds Sure. Okay. Sure. Thank you. Thank you so much, sir. Thank you. Thank you. 31:30 31 minutes, 30 seconds A reminder to all the participants, if you wish to ask a question, you may press star and one on your touchstone telephone. 31:38 31 minutes, 38 seconds The next question is from the line of Mr. Shahan Sha from Dalat Capital. Please go ahead. 31:45 31 minutes, 45 seconds Uh hi sir. Uh so uh now let's say this year we will be doing a 10% so uh next 31:52 31 minutes, 52 seconds year onwards previously we used to have kind of a 15% plus but given the 10% lower that we are 32:00 32 minutes doing. So FI 27 can we look at a kind of a 20% or there also at current stage uh 32:08 32 minutes, 8 seconds there also only 10% kind of a number one can look at we would like to maintain our earlier guidance of 15% for the next financial 32:16 32 minutes, 16 seconds year because this uh the second half of the year orders are going to bunch 32:24 32 minutes, 24 seconds okay financial year orders are bunching 32:31 32 minutes, 31 seconds And the pace at which it is coming. If it comes in the current quarter then work will start in the next financial year initial pace installation will go. 32:39 32 minutes, 39 seconds If it comes in the next quarter then it'll post monsoon only it will get started. So depending on that our guidance of 15% would remain. 32:49 32 minutes, 49 seconds Got it. Uh so now second on on the just a clarification on the order inflow when we say 20,000 K. 32:57 32 minutes, 57 seconds So that obviously would be excluding the L1 that we are so the the L1 of Maharashtra 33:07 33 minutes, 7 seconds sorry L1 ofra excluding L1 of Maharashtra okay excluding the L1 of Maharashtra 33:17 33 minutes, 17 seconds excluding L1 of Maharashtra okay so Croatia itself would be a kind 33:23 33 minutes, 23 seconds of a close to 11,500 to 120 000. So that we are considering and plus 1200. So around 13 and half,000 33:32 33 minutes, 32 seconds uh 13,500 K already we are we are there and remaining 7 and a half thousand fresh that we are looking at. 33:40 33 minutes, 40 seconds Correct. Correct. 33:41 33 minutes, 41 seconds Okay. And this van that the bid that we have submitted so this is the ham one that we are talking about ham project. 33:50 33 minutes, 50 seconds No, this is the EPC breakwater. 33:53 33 minutes, 53 seconds Okay. EPC. So value would be roughly around the client's estimated value is 5,120 crores. 34:04 34 minutes, 4 seconds Got it. And now our guidance in terms of ITA margin obviously initially we mentioned that it would be 34:11 34 minutes, 11 seconds a better uh so will it be a kind of a 13% for this year and next year onwards again we will be having a 11% kind of 34:19 34 minutes, 19 seconds our guidance. See as we explained that uh on an annual basis the guidance we are trying to give is 11%. Because we 34:26 34 minutes, 26 seconds have explained that there are there are many risk in project. So our labor is obvious to and we have demonstrated that 34:35 34 minutes, 35 seconds as well for uh even FY25 and even for this half year we have done in the range of 13%. Since we have already done 13% 34:43 34 minutes, 43 seconds we expect the full year number to be better than what we had initially indicated. uh exact number let us leave it at this point in time because it 34:51 34 minutes, 51 seconds would not be appropriate for me to give the for the balance this month but uh one thing I can reassure you that we are not having any bad project or we are not 35:00 35 minutes having you know execution in the second half which will be less profitable uh so we are definitely going to improve from 35:07 35 minutes, 7 seconds what annual guidance number we have given for the next year it will be too early to uh give uh you know any 35:15 35 minutes, 15 seconds guidance on the profitability metrics uh but on a sustainable basis you would like to do 15% topline growth and 11% AITA number. 35:25 35 minutes, 25 seconds Got it. Got it. Uh lastly on the capex front how much for this year we would be booking and a broader level next year 35:34 35 minutes, 34 seconds would be how much and also the balance sheet data point mobilization advance retention money and unbuild revenue as on September. 35:43 35 minutes, 43 seconds on uh uh on capex this year we have planned close to 1100 cr and uh this has 35:50 35 minutes, 50 seconds largely uh uh the TBM for the C2 package uh which half of it has come and the the 35:58 35 minutes, 58 seconds second consignment is uh yet to start so once that come that's a sizable portion and then uh rest of the capex whatever 36:05 36 minutes, 5 seconds we have planned is linked to the project award so once we get the project award linked to that we are going to do the capex that is for the for this there uh 36:14 36 minutes, 14 seconds I expect that what we had estimated of 1100 cr some part of it is going to uh spill over to next year because uh uh if 36:23 36 minutes, 23 seconds we get the orders in say Q3 and Q4 the procurement also the orders also we'll be giving uh in this in the in line with 36:32 36 minutes, 32 seconds our requirement so some part will get uh get to FY27 initially uh when we had estimated when 36:40 36 minutes, 40 seconds we had made our budget for 26 and That time we were looking at somewhere around 700 750 crores kind of a KEX for 27. So 36:48 36 minutes, 48 seconds maybe if something is not done this year of this 1100 cr that will get added to the next year KX 36:56 36 minutes, 56 seconds and mobilization advance retention money and unbuild revenue as of September sir. 37:02 37 minutes, 2 seconds These numbers have already been uploaded. These are part of the presentation. These numbers are already there. uh uh the unbuild revenue the 37:10 37 minutes, 10 seconds unbuild revenue and uh and of course these retentions I mean uh it it's in the similar range what what it was there 37:18 37 minutes, 18 seconds it has not the retention number has not gone up uh from say the number what we were having in March or in June is in 37:26 37 minutes, 26 seconds the similar range because some projects we uh as we complete we get the retention release and the ongoing project there is a regular recovery of 37:35 37 minutes, 35 seconds retention and uh unbuild revenue continue again it is in the similar range what it was there in the say June 37:42 37 minutes, 42 seconds or March in the similar range it is there and uh the the third thing you were asking was 37:50 37 minutes, 50 seconds about mobilization advances for mobilizing advances as we have not got the jobs uh uh the jobs have not been awarded so we have not received those 37:58 37 minutes, 58 seconds advances on the contrary for the for the ongoing jobs whatever advances we were we had received earlier recoveries are 38:07 38 minutes, 7 seconds happening. So sizable amount of mobilized if we compare from say March 25 to September the advances have come down because of the recovery. 38:19 38 minutes, 19 seconds Okay, got it sir. Thank you. Thank you. 38:22 38 minutes, 22 seconds Thank you participants. If you wish to ask a question you may press star and one on your touchstone telephone. 38:32 38 minutes, 32 seconds The next question is from the line of Mr. Parveves Kazi from Nama Group. Please go ahead. 38:38 38 minutes, 38 seconds Uh hi uh good afternoon and thanks for taking my question. Uh so my first question is is uh regarding our bid 38:47 38 minutes, 47 seconds pipeline. I mean you mentioned that we have a strong bid pipeline. Uh now in H1 uh just wanted to get color on the 38:56 38 minutes, 56 seconds incremental bid which let's say get got added to this bid pipeline. uh in which segment would we have seen new projects 39:05 39 minutes, 5 seconds getting added to the bid pipeline in the last 6 months and also uh some color on the geography whether it's domestic or 39:12 39 minutes, 12 seconds overseas uh where these new projects will come that would be great 39:19 39 minutes, 19 seconds u the largely the projects got added on the urban infrastructure space uh there are certain project which the 39:27 39 minutes, 27 seconds government has announced those got added and certain projects got added on the hydro and underground that have been the 39:34 39 minutes, 34 seconds major change and also as the awarding activity is going on I mean the tendering goes on certain projects which were announced got dropped and new 39:43 39 minutes, 43 seconds projects in the normal course of business got added so that's been the change why it has increased and uh uh domestic and overseas last time also was 39:52 39 minutes, 52 seconds ratio was pretty much same it was uh 1/4 and 3/4 the same ratio is there in the overseas market as well domestic and overseas 40:00 40 minutes and in terms of your other question on the geography. 40:05 40 minutes, 5 seconds Uh some point of time uh we had uh kind of practically withdrawn from the Middle 40:13 40 minutes, 13 seconds East but uh having got some of the clients uh agree to some change in the contract conditions and other things we 40:21 40 minutes, 21 seconds are re-engaging in the Middle Eastern segment where we do expect some good traction going forward. 40:28 40 minutes, 28 seconds Uh sure sir. Uh second what would be your view on competitive intensity in a work for which you you believe there 40:37 40 minutes, 37 seconds we'll find lesser competition compared to what we are doing domestically. 40:42 40 minutes, 42 seconds You one cannot generalize the competitive intensity in the overseas situation in different uh geographies 40:50 40 minutes, 50 seconds different kind of uh competition takes place. It depends on the client and the funding agency and number of competitors 40:59 40 minutes, 59 seconds involved. Therefore, I would not like to venture a general response to this except saying that everywhere 41:07 41 minutes, 7 seconds competitive intensity is there. We have to choose your client and also the preferred mode of uh this thing the 41:16 41 minutes, 16 seconds preferred country and the client I would put it. 41:23 41 minutes, 23 seconds Sure certain. And lastly just two data points that are needed. What is the key bits that we have done in Q2 and second 41:30 41 minutes, 30 seconds of our 32,700 cr order book. Uh what is the quantum of audits where we are yet to receive the appointed date? Thank you. 41:40 41 minutes, 40 seconds So uh capex we have done close to uh around 200 crores we have done uh up to 41:47 41 minutes, 47 seconds September and uh uh on the on the this 32,000 crores of order book what we have 41:54 41 minutes, 54 seconds as of September you want you want to know that whether the appointed dates have been given for these contract 42:03 42 minutes, 3 seconds yeah I mean are all the projects under execution or there are projects there is that appointed It hasn't done. 42:10 42 minutes, 10 seconds No, the all these projects are under execution. So there is no such project for which we have not got the any appointed date or not to proceed. 42:21 42 minutes, 21 seconds Sure. Thanks and all the best. Thank you. 42:26 42 minutes, 26 seconds Thank you participants. If you wish to ask a question, you may press star and one on your touchstone telephone. 42:35 42 minutes, 35 seconds The next question is from the line of Mr. Balas Subramanyan from Ahant capital please go ahead. 42:43 42 minutes, 43 seconds Good afternoon sir. Thank you so much for the opportunities. So what is our current exposure in UN J mission uh uh 42:50 42 minutes, 50 seconds in terms of renewables? I think last quarter it's around 422 cr and what is the realistic timeline to uh like 42:58 42 minutes, 58 seconds expected uh these receivables in terms of given mission our uh exposure is around 450 crores almost 43:07 43 minutes, 7 seconds similar level we got some money in between some small monies and uh practically from uh July onwards we have 43:16 43 minutes, 16 seconds stopped the work over there and just on the eve of uh Diwali there was a meeting by the chief minister and other things and uh so our exposure remains as it is. 43:28 43 minutes, 28 seconds We have balanced unexecuted job there of roughly around 600 to 650 crores 43:36 43 minutes, 36 seconds co and how do you look at working capital uh cycle by end of this year uh because of this uh jan impact. 43:47 43 minutes, 47 seconds see jalji mission the impact anyways is already factored and as we are not further putting money there so uh what I 43:56 43 minutes, 56 seconds can see is it it's only going to improve from here and also on a overall basis uh 44:03 44 minutes, 3 seconds usually up to h uh you know h1 uh one needs to fund the projects but now since 44:11 44 minutes, 11 seconds we'll be approaching towards uh uh the year end things will gradually improve because they the customers they will have their 44:20 44 minutes, 20 seconds own budget and they need to exhaust all that during the financial year. So we'll be getting uh payment from the customer and things will unwind. 44:31 44 minutes, 31 seconds Okay sir. Sir out of,00 cr kex how much uh uh uh capeex for uh these two tunnel binging machines and when we expect 44:40 44 minutes, 40 seconds deployment into the projects the exact number we'll not be able to 44:48 44 minutes, 48 seconds give you but uh this number is anywhere between say 600 to 700 crores for for these TBMs along with all these uh 44:56 44 minutes, 56 seconds attachments it requires and uh u you So it is dependent on when it is sailing 45:04 45 minutes, 4 seconds from China the second consignment and uh we are hopeful uh that maybe you know this month uh it should happen and if it 45:12 45 minutes, 12 seconds if it if it saves this month from China I think by say uh end March or maybe uh April we should commence the execution. 45:24 45 minutes, 24 seconds Okay sir sir if that TBM yes if sir if that TBM machines is getting delayed which are projects is 45:32 45 minutes, 32 seconds going to impact in next two or three quarters this is only one project C2 45:39 45 minutes, 39 seconds uh that highspeed railway project under sea tunnel all other projects we have TBM in place 45:47 45 minutes, 47 seconds okay sir so my final question is what are the strategic init initiatives you're going to take uh to reduce uh promoter judging what is the road map. 45:59 45 minutes, 59 seconds So I am not clear about your question. 46:01 46 minutes, 1 second So what is the strategic initiatives we are going to take uh to reduce promoter pledging? Uh what is the road map 46:08 46 minutes, 8 seconds on promoter pledging? We are not taking any initiative. It is with the promoter. 46:13 46 minutes, 13 seconds So it will not be appropriate for us to comment. Okay. So thank you. 46:19 46 minutes, 19 seconds Thank you participants. If you wish to ask a question, you may press star and one on your touchstone telephone. 46:34 46 minutes, 34 seconds I repeat participants if you wish to ask a question you may press star and one on your touchstone telephone. 46:44 46 minutes, 44 seconds The next question is from the line of missa from dam capital. Please go ahead ma'am. 46:50 46 minutes, 50 seconds Yeah, good afternoon sir. So just on this um you know margin profile we've seen a very strong 1 kind of a margins 46:58 46 minutes, 58 seconds uh at about almost 13%. Which is much higher than our uh guidance per se. um you know for this year uh you know how 47:06 47 minutes, 6 seconds do you see the margins moving uh per se particularly in the second half and as some of these conversions from L1 to uh 47:15 47 minutes, 15 seconds actual time to begin work uh is delayed will that impact margins that you've quoted for some of these projects or are 47:22 47 minutes, 22 seconds they escalation based fixed b fixed price can you just throw some color on that 47:28 47 minutes, 28 seconds no with respect to margins my CFO will respond With respect to uh this thing there is 47:37 47 minutes, 37 seconds in terms of Maharashtra project if you take it there is an escalation mechanism right from the day we submitted the bid 47:45 47 minutes, 45 seconds in fact 21 days before submission of bid onwards it starts. Okay, with respect to 47:52 47 minutes, 52 seconds uh the overseas project which we are L1, there are uh the contracting timelines 47:59 47 minutes, 59 seconds and award timelines itself is like this 120 days from the date of bid opening all these are specified. Therefore uh uh 48:08 48 minutes, 8 seconds it's all factored in already. So we don't expect uh any impact on the margins or related things on the AITA 48:16 48 minutes, 16 seconds guidance Romesh would respond. So uh see bumika we have already talked about uh 48:22 48 minutes, 22 seconds the ea margin we have done for the half year 13%. 48:27 48 minutes, 27 seconds And uh as confirmed earlier also we are not having any uh you know bad project as such in the Q2 uh in the second half 48:36 48 minutes, 36 seconds or any less profitable activity to be executed in the in the second half. So we expect uh you know our EITA margin to 48:44 48 minutes, 44 seconds be better than what we had indicated at the beginning of the year at 11%. It should be definitely be better because half year we have already done 13%. 48:53 48 minutes, 53 seconds Exact number we are not giving you but uh I think you know we can expect uh that we should be doing better uh than what we had indicated. 49:02 49 minutes, 2 seconds Sure. And um this quarter also the other income was slightly higher. Was there any arbitration or forex gain that was booked in this particular quarter? 49:12 49 minutes, 12 seconds See forex gain is there in this quarter and uh as you were asking about the overseas project. So in overseas project 49:19 49 minutes, 19 seconds what happens that even though uh in in majority of the project we uh don't get any uh escalation but then the exchange 49:28 49 minutes, 28 seconds gain comes as a escalation measure because uh on a continuous basis we are seeing that uh say a dollar or euro 49:38 49 minutes, 38 seconds appreciates against Indian rupees. So we have seen in some of the project over a period of say uh five six years the uh 49:46 49 minutes, 46 seconds exchange difference itself becomes a very sizable portion of the of the contract. So likewise you know things acrew. So it is there in this quarter as well. 49:56 49 minutes, 56 seconds Okay. Would it be possible to give us the number of forex gain for this particular quarter which is related to the project? 50:05 50 minutes, 5 seconds One minute I I'll give you that. 50:12 50 minutes, 12 seconds So forex gain is around 59 crores. 50:17 50 minutes, 17 seconds Okay. Okay. Got it. Got it. Uh understood. And so just lastly, I mean I know we've discussed a lot on the call 50:24 50 minutes, 24 seconds in terms of the uh working capital uh rising and thereby the debt also has risen. uh while we will get uh some of 50:33 50 minutes, 33 seconds these uh advances when we get some of these orders it should help in terms of reduction uh but you know with the money 50:40 50 minutes, 40 seconds stuck particularly in this JJM orders do we expect any relief per se within this year or you think it will be something which will working capital to that 50:49 50 minutes, 49 seconds extent will remain elevated itself in terms of Jim mission payment while we 50:56 50 minutes, 56 seconds are not in a position to commit chief minister himself has assured he clear in all the this thing all the dues as he 51:04 51 minutes, 4 seconds wants the project to be delivered uh uh well on time and that is something I think the state level they are working 51:13 51 minutes, 13 seconds and uh therefore we do expect some traction coming in in next 2 to 3 months many of the states today state level 51:21 51 minutes, 21 seconds finances are I would say strained because of that probably there has been some delay I'm not very sure It's I'm not able to come under. 51:32 51 minutes, 32 seconds Okay. 51:32 51 minutes, 32 seconds And and Bumika just to add see even even last September we were at a similar kind 51:39 51 minutes, 39 seconds of debt number. So not that you know this number is different and you had seen how it has unfolded in by by the 51:46 51 minutes, 46 seconds year end. So uh that's a that's a trend generally generally it happens like that. 51:55 51 minutes, 55 seconds Understood. Understood. Fair point. This helps. Uh thanks so much. Thank you. Thank you. Thank you. 52:04 52 minutes, 4 seconds The next question is from the line of Mr. Perves Kazzy from Noama Group. Please go ahead. 52:10 52 minutes, 10 seconds Uh hi uh thanks for taking my follow-up question. I think you have mentioned there was some uh exceptional expenses 52:18 52 minutes, 18 seconds that we had booked this water as part of our other expenses. Uh would it be possible to get this one of that? 52:28 52 minutes, 28 seconds Uh so so what do you want to ask per what was the quantum of that exceptional expenses? 52:35 52 minutes, 35 seconds Yeah it is it is close to 100 cr. Okay sure fine. Thank you. 52:43 52 minutes, 43 seconds Thank you ladies and gentlemen. That was the last question for the day. I would now like to hand the conference over to Miss 52:52 52 minutes, 52 seconds Bumika for closing comments. Please go ahead ma'am. 52:56 52 minutes, 56 seconds Yes. Um I would just like to thank all the participants on the call and uh particularly the management for giving uh an opportunity to host the call. Uh 53:04 53 minutes, 4 seconds thank you very much sir and wish you all the very best. Uh any closing remarks from your side? 53:10 53 minutes, 10 seconds Oh thank you very much. Thanks for the continued uh interest and support. We definitely look forward to all of you stay with us and on a long-term basis. 53:21 53 minutes, 21 seconds Thank you. Thank you sir. 53:23 53 minutes, 23 seconds Thank you sir. On behalf of Dam Capital Advisers Limited, that concludes this conference.