Afcons Infrastructure Limited — Q3 FY26

Afcons Infrastructure Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=1rQx-bYeULw Published: 3 months ago

0:00 Ladies and gentlemen, good day and welcome to Afon's Infrastructure Limited Q3 and 9 months FI26 earnings conference 0:07 7 seconds call hosted by DAM Capital Advisor Limited. As a reminder, all participants lines will be in listenonly mode and there will be an opportunity for you to 0:16 16 seconds ask question after the presentation consumed. Should you need assistance during this conference call, please signal an operator by pressing star then 0:23 23 seconds zero on your touchstone pole. Please note that this conference has been recorded. I now hand over the conference 0:30 30 seconds to Mr. Krishnan Mundra from DAM Capital Advisor Limited. Thank you and over to you sir. 0:38 38 seconds Uh thanks Pari. Uh good morning everyone and warm welcome to the Q3 FI26 earnings call of AFCON's infrastructure. Uh so we 0:47 47 seconds have the management today being represented by Mr. Subramanyam Krishna Morti who's the executive chairman. Mr. 0:54 54 seconds Sasan Parmasan who is the managing director. Mr. Mr. Romesh Kumar Ja the CFO and Mr. Hit Singh the head corporate 1:01 1 minute, 1 second strategy. Uh now at this point I will hand over the floor to Mr. Krishna Morti for his initial remarks post which we will open the floor for the Q&A. Uh with that uh over to you sir. 1:14 1 minute, 14 seconds Uh good morning ladies and gentlemen. 1:17 1 minute, 17 seconds It's a pleasure to connect with all of you once again. I thank our investors, analysts and stakeholders for joining us today. 1:26 1 minute, 26 seconds Our financial results and investment presentation for the quarter have been uploaded on the stock exchanges and I hope you would have had an opportunity to review them. I'm joined today by Mr. 1:37 1 minute, 37 seconds Pashan Shinasan our managing director, Mr. Ramja our chief financial officer and Mr. Hitesh Singh who heads our corporate strategy at cons. 1:46 1 minute, 46 seconds Let me begin with the overview of our performance for the quarter ended December 25. 1:52 1 minute, 52 seconds For the 9month period, revenue stood at 9545 crores, reflecting a marginal year-on-year decline of.9%. 2:00 2 minutes EIA rose 1.8% to,269 crores with margin improving 35 basis points on a year year to 13.3%. 2:11 2 minutes, 11 seconds EITA excludes one time impact of labor code. Profit at tax stood at 339 crores. 2:19 2 minutes, 19 seconds Coming to Q3 FI26, we reported a revenue of 3,25 cr, a decline of 9% on a yearon year. 2:27 2 minutes, 27 seconds A beta for the quarter was 424 crores, which margins at 14% representing a 50 basis point yearon-year improvement. 2:38 2 minutes, 38 seconds Despite lower revenues, we have seen an improvement in our margins and this is in line with our guidance. profit at a 2:45 2 minutes, 45 seconds tax stood at 97 crores compared to 149 crores in Q3 FI25. 2:51 2 minutes, 51 seconds This includes a onetime impact provisioning of 76.51 crores for the new labor code. 2:57 2 minutes, 57 seconds Our top line was impacted by a combination of execution related and general slowdown in the infrastructure activity. 3:04 3 minutes, 4 seconds Some recently secured project including certain quick turnaround high output projects progress lower than anticipated. 3:10 3 minutes, 10 seconds We also experienced exceptional delays in the conversion of certain large value L1 projects. Other factor that impacted the topline growth included continued 3:19 3 minutes, 19 seconds liquidity issues with certain government clients. 3:23 3 minutes, 23 seconds We are actively working to overcome many of these impediments in the coming months. Beyond financials, the quarter was marked by several operational 3:31 3 minutes, 31 seconds milestones that highlight the depth of our execution capabilities. 3:37 3 minutes, 37 seconds I'm pleased to share with immense pride that Afans completed the first 5.5 km PBM drive in the sitco water supply project which also happens to be the 3:46 3 minutes, 46 seconds first breakthrough for sitco. I would like to remind you Aquans has set and broken its own record for the maximum length of tunneling of 777 m done in a month during this drive. 3:58 3 minutes, 58 seconds The project team has completed this activity one month ahead of schedule with remarkable accuracy despite logistics and geo technical challenges. 4:06 4 minutes, 6 seconds In keeping with AFCON's way, the team has achieved this feat through innovative approaches. One of which has been a judged as the best paper 4:15 4 minutes, 15 seconds at the Indian lean construction conference held in December 25. 4:21 4 minutes, 21 seconds The project has also won merit award from National Safety Council of India for 2 million safe man hours without any last time injury. 4:30 4 minutes, 30 seconds I am also proud to share with share that our operation capabilities have been validated through several independent 4:37 4 minutes, 37 seconds and prestigious recognition during this quarter. Engineering news record USA has ranked AOAN eighth among the international marine and port facilities 4:44 4 minutes, 44 seconds contractors and 12th among international bridge contractors in his 2025 rankings. 4:51 4 minutes, 51 seconds Aons has been recognized as the most innovative knowledge enterprise at both India and global levels for the eighth time in a row. We are the only infrastructure company to achieve this 5:00 5 minutes rare distinction for eight consecutive years. Our innovation drive has been approached by CI who are bestowed on us 5:07 5 minutes, 7 seconds the grand award for the top innovative company across all sectors and categories and along also in the service category. This means we are treated as 5:16 5 minutes, 16 seconds the most innovative company of the country. 5:20 5 minutes, 20 seconds Looking ahead the operating environ of looks favorable although global infrastructure activity at large has been subdued in the last past year due to geopolitical uncertaintities. 5:31 5 minutes, 31 seconds Project pipelines in our focus geographies have been robust particularly in the segments of our interest. This is expected to improve 5:39 5 minutes, 39 seconds further as per various reports. In India, the government has signaled continuity in its infrastructure growth policy 5:48 5 minutes, 48 seconds through a robust 12.2 lakh cr allocation and other related policy announcement in the recently announced budget. Ordering 5:56 5 minutes, 56 seconds activity however has remained subdued particularly in our focus segments. We expect a pickup in Q4 consistent with historical seasonality. 6:06 6 minutes, 6 seconds However, we have seen substantial growth opportunities at merit that meet our risk management criteria. 6:13 6 minutes, 13 seconds AFCON will continue to be disciplined in its pursuit of growth, focusing on operational excellence. I'm confident in our ability to effectively navigate 6:22 6 minutes, 22 seconds challenges in our path, demonstrator time and again, and deliver long-term value to our shareholders. Thank you for your continued support and trust. 6:32 6 minutes, 32 seconds With this, I will now invite Mr. 6:33 6 minutes, 33 seconds Paramean, our managing director to share his remarks. 6:40 6 minutes, 40 seconds Thank you Mr. Subramanyan and good morning everyone. 6:44 6 minutes, 44 seconds I would also like to extend a warm welcome to all our investors, analysts and participants. 6:51 6 minutes, 51 seconds We value your continued interest in Afans and appreciate the engagement you bring to this discussion. 7:00 7 minutes As Mr. Subramanian outlined, the third quarter reflected some execution and sectoral headwinds which moderated our 7:08 7 minutes, 8 seconds performance. Despite our best efforts to mitigate these challenges, some impacts persisted largely due to timing related 7:17 7 minutes, 17 seconds factors rather than any internal structural issues. We remain focused on restoring the growth momentum over the 7:25 7 minutes, 25 seconds coming quarters. Let me briefly touch upon the operating environment and how we see it evolving. In India, the 7:34 7 minutes, 34 seconds government has reiterated its long-term commitment to infrastructure development through the recently announced budget. 7:42 7 minutes, 42 seconds Its vision for new highspeed rail corridors, dedicated freight corridors and the development of tire and dietary 7:49 7 minutes, 49 seconds cities reinforces the continuity and provides positive visibility for the sector. Further, the push for domestic 7:58 7 minutes, 58 seconds manufacturing of critical equipments including construction equipments like TBM is also encouraging as it aims to 8:06 8 minutes, 6 seconds enhance making in India initiative and also helps in eliminating the challenges witnessed while importing these equipments due to geopolitical issues. 8:18 8 minutes, 18 seconds Coming to our focused international markets, we continue our drive in the international geographies and believe 8:26 8 minutes, 26 seconds that there's a healthy pipeline of projects that gives us confidence that we'll continue to bag international jobs 8:34 8 minutes, 34 seconds in our focus segments. Coming to the order book, I am pleased to share that we recently secured a road project over 8:41 8 minutes, 41 seconds 100 million euro in Uganda. This is a significant win for us as it reinforces our long-standing presence in Africa. In 8:50 8 minutes, 50 seconds the domestic market, we secured two marine contracts worth about uh 1,400 rores during the quarter. Both these quarters contracts are strategic for the 8:59 8 minutes, 59 seconds government of India and are aligned with broader objective of contributing to infrastructure of national importance. 9:07 9 minutes, 7 seconds With these awards, our total order inflow till date stands at approximately 3,700 crores and our pending order book 9:15 9 minutes, 15 seconds as on date remains healthy at rupees 32,635 crores. While ordering flows so far have been lower than our initial 9:23 9 minutes, 23 seconds expectations, we expect a few meaningful awards to materialize during the current quarter which should strengthen our 9:30 9 minutes, 30 seconds order book position. Accordingly, we are hopeful of achieving our fullear order inflow guidance of 20,000 crores. 9:39 9 minutes, 39 seconds Looking ahead, our project pipeline continues to be robust at around 38 8 trillion rupees spread across multiple 9:48 9 minutes, 48 seconds geographies and sectors. That said, we are witnessing rising competitive intensity in several segments including 9:57 9 minutes, 57 seconds metros where bids have become increasingly aggressive. On the operational style, we are still cautious 10:05 10 minutes, 5 seconds about our jalji mission projects in Uttar Pradesh. Although the government's allocation to JJan mission in the current budget has remained similar to 10:12 10 minutes, 12 seconds budget estimate at Lafia but based on our experience and on ground realities we prefer to remain cautious regarding 10:20 10 minutes, 20 seconds our highspeed rail project the second consignment of our TBM is still awaiting clearance we are in close communication with the concerned ministries and 10:28 10 minutes, 28 seconds agencies to expedite the release and we hope to see the progress in soon. In parallel, we are also working with the 10:36 10 minutes, 36 seconds client and other stakeholders to evaluate alternative solutions to minimize the impact on project timelines. To conclude, our 9-month 10:44 10 minutes, 44 seconds performance has remained relatively flat due to the factors already outlined. 10:50 10 minutes, 50 seconds While we are still working to achieve our 10% growth as guided in the last call, a 5% growth looks definitely achievable. With a healthy order book, a 10:59 10 minutes, 59 seconds deep and diversified pipeline and a committed execution team, Afcon is well positioned to regain momentum and accelerate growth in the coming periods. 11:08 11 minutes, 8 seconds We remain firmly focused on disciplined execution, prudent risk management, and delivering long-term value to all our 11:17 11 minutes, 17 seconds stakeholders. Thank you once again for your confidence and continued support. I now hand over the call to our CFO Mr. 11:24 11 minutes, 24 seconds Romesh Ja to take you through the details of our financial performance. 11:36 11 minutes, 36 seconds Thank you sir. Good morning everyone. uh before talking on the numbers let me reiterate what usually I do it on every 11:44 11 minutes, 44 seconds quarter and this becomes more relevant this quarter that the number quart uh the quarterly number varies company is 11:51 11 minutes, 51 seconds into business of construction the margin in a quarter varies based on the nature type and quantum of work executed so quarterly results may vary in different 12:00 12 minutes quarter and may not be indicative of annual result or trend now coming specific to the numbers uh for the 9 12:07 12 minutes, 7 seconds month ended we have done uh a top line of 9,545 crores against last year 9 month topline of 9,635 12:15 12 minutes, 15 seconds crores which is uh uh kind of uh you know it has come down by.9%. 12:21 12 minutes, 21 seconds In Q3 we have achieved a topline of 3,25 crores versus 3,332 crores in previous year Q3. So there is a marginal degrowth 12:31 12 minutes, 31 seconds in 9 month as well as Q3 as well. Now this kind of topline movement is a manifestation of stressed payment across 12:37 12 minutes, 37 seconds and across the projects and few specific projects where certification and payments are uh are slow. Jobs we were 12:47 12 minutes, 47 seconds we were declared L1 quite some time back are still not awarded. Some recently backed jobs have not picked up in a 12:54 12 minutes, 54 seconds manner we we were expecting and also few fasttrack projects are moving uh at the normal pace. 13:01 13 minutes, 1 second Now moving on to the margins. Uh as far as Ia is concerned for the 9month period we have done, 1269 cr which works out to 13:09 13 minutes, 9 seconds be 13.3% of the top line. Uh which has improved uh from the previous year number of 1,247 wherein we had done 12.9%. 13:20 13 minutes, 20 seconds So so the EIA in terms of uh percentage has gone up. uh in in the in the 13:27 13 minutes, 27 seconds quarterly number uh for the Q3 FY26 we have done 424 crores and uh in this quarter the mar the AITA margin works 13:35 13 minutes, 35 seconds out to be 14% we uh as against 13.5% in the previous quarter when we are talking about the 13:42 13 minutes, 42 seconds EITA number of course we have not included this one time exceptional uh uh provision on the on the accounts of uh 13:50 13 minutes, 50 seconds labor code related provision the exceptional item on account of labor code is around 77 crores 76.51 crores to be very specific during this quarter. 14:02 14 minutes, 2 seconds Uh when it comes to profit before tax for the 9 month period we have done 456 crores and uh this number is after 14:11 14 minutes, 11 seconds providing for this 76.5 crores of labor code provision. This works out to be around 4.8% 14:18 14 minutes, 18 seconds as compared to last year uh 526 which was 5.5%. When we look at this 9 uh 9 monthly number of 4.8% 14:27 14 minutes, 27 seconds the exceptional item provision works out to be around 80 basis point for the 9month 14:33 14 minutes, 33 seconds period. Uh on Q3 the number of profit before tax is 123 crores uh against 200 14:42 14 minutes, 42 seconds crores of uh profit before tax in the pre uh Q3 FY25. 14:49 14 minutes, 49 seconds Profit after tax for the 9month period is 339 crores as against 376 crores in the previous year 9 month and uh during 14:58 14 minutes, 58 seconds the quarter uh the profit after tax is uh 97 crores uh which is 3.2% as against 15:07 15 minutes, 7 seconds 149 crores uh done last year. Now I'll just like to explain on the EIA in our EIA calculation we consider BG 15:15 15 minutes, 15 seconds commission as part of our operating expenditure. So AITA what we are talking about is after removal of BG commission as operating expenditure this quarter 15:23 15 minutes, 23 seconds because of labor code related provision there is a one-time impact which which of course we have not factored in the uh EIA calculation we have factored that in 15:31 15 minutes, 31 seconds profit before tax and profit after tax other income we uh in our calculation we include other income uh as part of other 15:40 15 minutes, 40 seconds operating revenue. Here we have explained earlier also that our other income is something which is part of operating operating revenue uh like 15:49 15 minutes, 49 seconds arbitration interest, foreign currency, exchange gain and miscellaneous incomes are recurring and very integral to our business. Hence, this needs to be 15:56 15 minutes, 56 seconds considered as part of other operating income. For the 9 month period, this amount was 211 crores in other operating 16:03 16 minutes, 3 seconds income. Since we have already achieved uh uh 13.3% AITA margin in 9 months, our 16:10 16 minutes, 10 seconds fullear year AITA should be uh better than what generally the guidance we give of around 11%. 16:17 16 minutes, 17 seconds But at the same time there could be some uh some event which may derail but I'm not saying that there is any specific 16:25 16 minutes, 25 seconds project but I'm generally saying that every year we are giving guidance of around 11%, we have already done better and we have got all projects which are 16:32 16 minutes, 32 seconds doing fairly well. So uh annual number should be better than whatever uh we give generally the annual guidance for the 9 month it is around 13.3%. 16:41 16 minutes, 41 seconds In terms of profits for the uh profits for the period is similar to that the last year after adjusting for the labor code related one of ex exceptional item. 16:50 16 minutes, 50 seconds Of course this fac this factors some upside on account of arbitration award and also because of margin improvement in few projects. uh also in some 16:58 16 minutes, 58 seconds projects we could save on some of the material cost and material cost and other operational improvements and that has improved the margin uh in in on a 17:07 17 minutes, 7 seconds overall basis. uh specific to finance cost increase uh we have moved we have improved our average borrowing cost in 17:15 17 minutes, 15 seconds the 9 month FY26 as compared to what we had achieved last year 9 months but in the 9 months the average borrowing has 17:23 17 minutes, 23 seconds gone up and uh because of uh and that is because of working capital blockage because we are not seeing uh the 17:30 17 minutes, 30 seconds payments very smooth uh in this 9 month period. So despite improving the average cost of borrowing uh interest on bank 17:39 17 minutes, 39 seconds borrowing the overall uh interest cost on the bank borrowing has gone up. Also the interestbearing advances for the period 17:46 17 minutes, 46 seconds ending December 2025 has has almost doubled to around 40% in the overall advance from customers as compared to 17:54 17 minutes, 54 seconds last year when we were around say 20 22% uh in the overall borrowing uh in the overall advances the interestbearing advance. This time it was around 3940%. 18:06 18 minutes, 6 seconds Because of this interest on customer advance has also increased making the overall interest cost to go up. We expect the situation to improve once our 18:14 18 minutes, 14 seconds L1 orders materialize because large part of the international orders where we where the advances are interest free. Uh we have provided for accelerated 18:23 18 minutes, 23 seconds depreciation in this quarter as well. uh of the total 354 crores of depreciation 18:29 18 minutes, 29 seconds around one more than 1% of the uh cost component in the depreciation is towards accelerated depreciation. So our profit 18:38 18 minutes, 38 seconds numbers are after accounting for the accelerated depreciation. 18:42 18 minutes, 42 seconds Uh in terms of ROC ROC 9 months is around 14% 13.4 to be very precise after 18:49 18 minutes, 49 seconds considering the exceptional item. We'll look at these numbers on an annual basis because that will make more sense. 18:56 18 minutes, 56 seconds uh as far as uh uh net networking capital goes the networking capital continues to remain at elevated level. 19:04 19 minutes, 4 seconds There is some moderate improvement in payment from uh uh January onwards but the st but the stuck payments are uh are 19:12 19 minutes, 12 seconds not moving and that is where the challenge lies. We are expecting some improved collection in this quarter. 19:18 19 minutes, 18 seconds Realization of few stuck receivable and also the collection of good good advances should uh improve the situation definitely from where we are today. 19:29 19 minutes, 29 seconds Debt uh the the debt number has remained in the similar range that of September and stands at 3,633 19:37 19 minutes, 37 seconds crores on the gross basis and 2779 crores on net basis. On net on net basis the debt equity is around.5 times of the 19:45 19 minutes, 45 seconds net worth. uh in terms of liquidity the company is uh in a very comfortable situation uh because you know we are maintaining very healthy uh balance of 19:53 19 minutes, 53 seconds cash and bank balance and we have got uh large amount of bank limits which is unused on behalf of Afans Infrastructure 20:01 20 minutes, 1 second Limited I thank everyone for attending this call now I request the moderator to open the floor for question and answer thank you 20:09 20 minutes, 9 seconds thank you very much we will now begin the question and answer session anyone who wishes to ask a question may press star and one on their touchtone 20:17 20 minutes, 17 seconds telephone. If you wish to remove yourself from the question Q, you may press star and two. Participants are requested to use handsets while asking a 20:26 20 minutes, 26 seconds question. Ladies and gentlemen, we will wait for a moment while the question Q assembles. 20:45 20 minutes, 45 seconds The first question is from the line of Adita from Invest. Please proceed. 20:52 20 minutes, 52 seconds Um hi good morning sir. Um so my first question is uh on the L1 status of uh our projects. Uh now these are projects 21:01 21 minutes, 1 second which have been stuck at the L1 stage for a fairly long time and even Croatia projects are I think taking longer than what we had in Vaged. Uh so just want to 21:10 21 minutes, 10 seconds understand how you seeing them uh getting placed is there risk of some of them getting cancelled. Um that that that's my first question. My second 21:18 21 minutes, 18 seconds question is on on margins which uh I mean for last few quarters we've been doing quite well and this is happening 21:25 21 minutes, 25 seconds despite uh um overall execution pays not being very strong and as you mentioned competitive intensity being uh being quite high. So what is really leading to 21:34 21 minutes, 34 seconds that and how sustainable should we consider the current margins to be? Thank you sir. 21:41 21 minutes, 41 seconds Thanks uh Vita. Number one with respect to L1 status uh I'll first touch upon Croia. on 21:50 21 minutes, 50 seconds Crohia the railway project is at an advanced stage of uh getting awarded 21:57 21 minutes, 57 seconds every from uh the government we find out that uh all levels approvals are over and this is going to be the largest 22:06 22 minutes, 6 seconds contract ever awarded by Croshia to any contractor therefore it is just awaiting the nod of the PM once that is done we 22:14 22 minutes, 14 seconds are likely to get this job awarded very shortly financial institutions and others have already given their approval. With uh respect to road jobs, 22:23 22 minutes, 23 seconds it is in process. There are couple of road jobs which were uh uh I would say bits were opened earlier than us which are being awarded now. After that this 22:32 22 minutes, 32 seconds will get awarded. So uh all the three jobs in Croatia are on track for award while railway job can be expected any 22:41 22 minutes, 41 seconds time now. Road jobs could go towards uh end of March or early next quarter. That is something which we are awaiting with 22:49 22 minutes, 49 seconds respect to Maharashtra jobs. From the interactions we learned the entire 22 packages of Maharashtra project jobs are 22:58 22 minutes, 58 seconds going for rebate and uh as it is more than one year is over land acquisition in all the cases have not been 23:06 23 minutes, 6 seconds completed. They would like to have the price discovery again and therefore the repackaging could be done and it could 23:13 23 minutes, 13 seconds go for rebate. That is the indication we have got. though officially they have not communicated as so therefore in 23:20 23 minutes, 20 seconds Maharashtra projects L1 into our internal scheme of things we don't expect to bag in the near future and uh 23:28 23 minutes, 28 seconds the includes even uh Pune road project sir Pune ring road Nagpur Gundia both what we learn it is undergoing certain 23:37 23 minutes, 37 seconds changes and with that changes it is going for rebuicially 23:44 23 minutes, 44 seconds they have not communicated Sure, sure, sure. But some packages of Pune ring road had already been awarded. 23:52 23 minutes, 52 seconds Isn't that the case? 23:53 23 minutes, 53 seconds There uh that was uh opened that was awarded nearly 2 years back. 23:59 23 minutes, 59 seconds This was invited sometime in Jan 25 bid was submitted rather in Jan 25 bid was opened. This was awarded much earlier 24:08 24 minutes, 8 seconds sometime in March or before that 24. So that part of the job is going on. This 24:15 24 minutes, 15 seconds part of the job is something which uh uh they are going for rebate as we know. I'll answer the margin. 24:23 24 minutes, 23 seconds Understood sir. Understood. 24:25 24 minutes, 25 seconds Uh good morning. Uh Anita on the margin front see we have I'll you know break this into three parts. One, we have 24:33 24 minutes, 33 seconds already talked about that any project we submit bid, we always look at a threshold of margin and uh that margin 24:40 24 minutes, 40 seconds will always be there in the project unless you know something goes uh in upside down and then only otherwise you know we will maintain that kind of 24:48 24 minutes, 48 seconds margin. So that is one. Two, we have also talked about that uh uh we have all uh in projects there are some risks and 24:57 24 minutes, 57 seconds contingencies provisions are there and our endeavor is always to save on those risk and contingencies improve on some 25:04 25 minutes, 4 seconds methods designs and then you know improve the margin. So that is second aspect and third uh we have got some award and because of the arbitration 25:12 25 minutes, 12 seconds award and because of that also there is some upside. So that is where on a consistent basis we are talking about 25:18 25 minutes, 18 seconds that 11% a bit margin is something which will be there and if you see say last 10 12 years you know we are largely there 25:26 25 minutes, 26 seconds you know some years maybe around say 9 and a half% but largely we are around say 10% plus and in recent time 11% plus 25:34 25 minutes, 34 seconds so that is something which is sustainable uh balance is dependent upon you know how we are able to save on those risk 25:41 25 minutes, 41 seconds and contingencies and if if some arbitration award short comes that also kind of takes it up. 25:51 25 minutes, 51 seconds Understood sir. Um and and should we start assuming that instead of 11% uh we can generate higher margins going 25:58 25 minutes, 58 seconds forward as well or or uh this appears to be a bit of an aberration because of maybe uh some arbitration awards that we had and uh some projects nearing completion. 26:08 26 minutes, 8 seconds So uh the margin what we are seeing today is not uh from you know 11% is something which definitely will be there 26:15 26 minutes, 15 seconds and the kind of margin we are seeing today is not because of purely arbitration award because you know arbitration of side is a small fraction 26:24 26 minutes, 24 seconds of that the remaining part is towards the improvements we have done in the project. Some projects we have uh we are completing before time. Some projects we 26:32 26 minutes, 32 seconds are improving designs and methods and we are saving on some of the cost. we are saving on some material procurement and other aspects. So that is where this 26:40 26 minutes, 40 seconds improvement is happening. Definitely the margin will be uh you know uh northwards of 11% but at the moment you know what 26:47 26 minutes, 47 seconds we'll request that you know let's keep it at 11% plus sure sir understood. Thank you. 26:59 26 minutes, 59 seconds Thank you. The next question is from the line of Mohit Kumar from ICS security. Please proceed. 27:06 27 minutes, 6 seconds Yeah, good morning and thanks for the opportunity. My first question is sir, the revenue growth has been benign for 27:14 27 minutes, 14 seconds last couple of years. Uh and the order inflow also been subdued for last 9 months. I understand they're sitting on 27:22 27 minutes, 22 seconds a large position but they also like it with some cancellation. My question is in this context how do you think about the growth in FY27? 27:37 27 minutes, 37 seconds Yeah. In the light of uh delayed order intake, some of these orders in baggarded manner we were expecting all 27:44 27 minutes, 44 seconds through the year as it is all bunching up towards uh end of the current quarter towards the last quarter of the year and 27:54 27 minutes, 54 seconds with the kind of uh mobilization and other thing required for such large projects. It's uh in our assessment it 28:02 28 minutes, 2 seconds is too too premature to comment what will be the growth for the next quarter. 28:07 28 minutes, 7 seconds Once the order is are in place we will come back to you with a specific guidance on the next year. 28:16 28 minutes, 16 seconds Understood. My second question on the gel motion uh what is the order book right now and of course the last 9 month 28:26 28 minutes, 26 seconds I I don't think there has been too much spend on jelj mission. uh but I but I also understand that the from the January that things started started 28:34 28 minutes, 34 seconds picking up. Can you please throw some light on on the jelg mission order and how do you things and what are we seeing 28:41 28 minutes, 41 seconds on the ground now on jgan mission projects our major problem is with respect to our up in up 28:50 28 minutes, 50 seconds balance spending order is roughly around 500 500 crores sorry roughly around 500 crores existing outstanding from the 28:59 28 minutes, 59 seconds client 405 crores so uh while there had been meetings held at the chief 29:08 29 minutes, 8 seconds minister's level and all as early as in October. Uh not much traction had taken place in terms of uh cash flows. So we 29:17 29 minutes, 17 seconds are still awaiting uh cash flow coming through for us to think. In the meanwhile, we have uh whatever business 29:25 29 minutes, 25 seconds call we need to take with respect to the project we have taken by way of uh slowing down and probably uh pruning 29:34 29 minutes, 34 seconds down our establishment all those kind of rational calls we have taken. So I'll just add so Murice just to add the total 29:43 29 minutes, 43 seconds Jivan mission related project is around 1,300 crores balance order book uh as sir has explained that UP is 530 crores 29:52 29 minutes, 52 seconds uh and uh that's the that's the biggest chunk another say 500 odd crores is in MP where we are not forcing any problem 29:59 29 minutes, 59 seconds the bills are we are we are doing the work we are submitting bills and we are getting paid as well in Rajasthan we have started the third job there around 30:07 30 minutes, 7 seconds say 300 odds is there in Rajasthan and since it is at at the very initial stage we don't foresee any challenge in 30:15 30 minutes, 15 seconds Rajasthan. So altogether around 1,300 cr up is something which we need to see and in UP also from January onwards they 30:22 30 minutes, 22 seconds have started releasing payment. We have received close to 15 crores in the month of January. We need to see they have promised that they'll release payment. 30:30 30 minutes, 30 seconds We need to see how it pans out. 30:39 30 minutes, 39 seconds Yes, Mr. Vishal, 30:51 30 minutes, 51 seconds as there is no response, can we move to the next question, sir? Yeah, please go ahead. Okay. 31:00 31 minutes A gentle reminder to all participants, if you wish to ask a question, please press star and one at this time. I 31:09 31 minutes, 9 seconds repeat, to ask a question, please press star and one now. 31:16 31 minutes, 16 seconds The next question is from the line of Ash Sha from HDFC Mutual Son. Please proceed. 31:23 31 minutes, 23 seconds Yeah, thank you for the opportunity sir. 31:26 31 minutes, 26 seconds Hi uh first question on I you did mention that there would have been some impact of favorable arbitration also during this quarter as far as the 31:34 31 minutes, 34 seconds margins is concerned as I read from the notes to account there is 165 cr of revenue which has been taken to the P&L 31:42 31 minutes, 42 seconds on account of the China bridge uh arbitration award so could you tell that whether this 165 cr directly flows to 31:51 31 minutes, 51 seconds the AITA and down or there is a cost element also attached to it so what could The EIA impact of this 165 cr that's my first question sir. 32:00 32 minutes Not not the full amount is a is having an EITA impact. There is a cost element also in that 32:07 32 minutes, 7 seconds okay sir any any range you can any I any number you could share what's the uh EITA impact of 165. So exact number at 32:16 32 minutes, 16 seconds the moment uh we don't have but uh the EIA the EIA impact could be say of this amount it could be around say 23 24%. 32:27 32 minutes, 27 seconds 23 to 24% of 165. Okay. All right. Uh the same note also mentions there is 32:34 32 minutes, 34 seconds another 115 crores that we are still carrying on this particular project. So uh any any what happens? I mean the 32:42 32 minutes, 42 seconds arbitration has given us the 243 total amount and 115 still remains. So what happens to this amount sir does this 32:49 32 minutes, 49 seconds have to be impaired or we continue to uh go for another round of arbitration for this 115. So see this arbitration are 32:58 32 minutes, 58 seconds for on various accounts and uh one of the one of the case has been settled and we have got the award. the case 33:06 33 minutes, 6 seconds pertaining to 150 is will come in the due course of time. 33:11 33 minutes, 11 seconds Okay. So that has not yet come up for for hearing or or something like that. 33:16 33 minutes, 16 seconds The arbitration is ongoing. The award come sometime. 33:20 33 minutes, 20 seconds Understood sir. uh also there is another matter that we have disclosed uh and I as far as I've read maybe uh it is an 33:28 33 minutes, 28 seconds incremental matter that uh there has been encachment of a bond in in Gibbon uh for about 911 crores rupees 33:36 33 minutes, 36 seconds equivalent amount. So any anything that you could share on this what really has happened what is the impact as far as our numbers are concerned uh etc. 33:46 33 minutes, 46 seconds on cabon we are the project for a French uh fund meridian funding of France own 33:54 33 minutes, 54 seconds their armed it's a PPP project with the gabanese government we are the EPC player and more than 90% of the project had 34:04 34 minutes, 4 seconds been completed quite some time back and the project is put to use for more than 34:09 34 minutes, 9 seconds 2 years now so even after that what we found as was a part of uh the originally 34:18 34 minutes, 18 seconds it was a uh joint venture between Meridian funding and arise of Dubai and 34:26 34 minutes, 26 seconds Arise of Dubai along the way they exited which fact was not known to us. Uh and 34:32 34 minutes, 32 seconds uh this thing sag is the client who they continued with this thing. They were not taking over the project because on 34:40 34 minutes, 40 seconds taking over a lot of becomes due and uh we had at some stage even government of Gabon told them to take over fearing 34:49 34 minutes, 49 seconds that they need to pay the money and uh they went ahead with an encachment while we went to the court as well. the uh 34:58 34 minutes, 58 seconds French court has initially uh stayed the proceedings of the guarantee later on the hearing while 35:07 35 minutes, 7 seconds they substantially agreed with our contention of abuse by the employer. 35:14 35 minutes, 14 seconds Nevertheless, they said contract is EPC contract is independent and bank guarantee contract is independent. 35:21 35 minutes, 21 seconds Therefore, bank guarantee contract there is no recourse but to pay that is how the encashment has happened. ICC arbitration has already commenced. We 35:30 35 minutes, 30 seconds are confident of the thing during the course of this thing only. We also learned certain facts which uh had come 35:37 35 minutes, 37 seconds to our notice during the course of these legal things. So we are quite confident of uh winning the job winning the award 35:46 35 minutes, 46 seconds in the ICC arbitration and uh we don't expect any impact as far as this job is concerned. 35:56 35 minutes, 56 seconds Okay. 35:57 35 minutes, 57 seconds So this 191 crores would be sitting in a debt today, right? We would have had to assume uh debt in order to honor the 36:04 36 minutes, 4 seconds bond. So our debt would have gone up to this extent. Correct. 36:10 36 minutes, 10 seconds All right. Uh and so lastly uh in terms of the execution constraints that we talked about now I get an impression 36:16 36 minutes, 16 seconds that the UP order book is uh just about 530 odd crores out of the total about 30,000 odd crit that we have. Uh, of 36:25 36 minutes, 25 seconds course the TBM issue still continues but uh beyond UP what uh can you highlight any specific project segments where 36:34 36 minutes, 34 seconds things have been slow? So the the bullet train is something that we understand the up is seems like a relatively small amount in the overall scheme of things in terms of at least the backlog. 36:46 36 minutes, 46 seconds Hi Ashish. uh the specific projects very will be very difficult to explain but there are certain domestic projects uh 36:54 36 minutes, 54 seconds where we were anticipating that the progress will be fasttracked and that is what we have uh taken in our plans but 37:01 37 minutes, 1 second due to various reasons uh the progress has not been as fasttracked as we have anticipated and that is why this delay 37:10 37 minutes, 10 seconds has happened. These are largely domestic projects and including in some cases scope changes and other things which 37:17 37 minutes, 17 seconds necessitated complete change of the overall plan. 37:22 37 minutes, 22 seconds Okay. But uh you think this this run rate of execution could normalize uh I mean are we have getting any indications or you think this normalize as it looks? 37:33 37 minutes, 33 seconds That's what it looks like. the situation will normalize because uh there are certain scope changes, there are certain approvals which are pending which are 37:41 37 minutes, 41 seconds which have received and will receive in due course of time and we expect the pace to catch up very soon. 37:48 37 minutes, 48 seconds All right sir, thank you. Thank you very much. Thanks. 37:55 37 minutes, 55 seconds Thank you. The next question is from the line of Shrain Sha from Dollar Capital. Please proceed. 38:02 38 minutes, 2 seconds Uh hi sir. a couple of questions uh just continuing the the previous questions. 38:08 38 minutes, 8 seconds So uh the the bond for the French one uh so correct me if I'm wrong what I understand is this Meridian French has 38:17 38 minutes, 17 seconds already filed for the bankruptcy. So when we are saying that we are confident to to get back this 194 cr uh can you 38:26 38 minutes, 26 seconds can you explain how how that is possible? 38:31 38 minutes, 31 seconds So uh just to add see this project what we are doing uh Meridian is the parent entity but the project we are doing is 38:38 38 minutes, 38 seconds for SAG which is a Gabanese entity and uh this gab this project is on a B basis in Gabon and this is for government of 38:46 38 minutes, 46 seconds Gabon. So once they uh once they start uh tolling from that toll revenue they'll they'll make the payment. So uh 38:54 38 minutes, 54 seconds our recourse is on the Gabanese entity not the Meridian entity uh the French entity the contract was uh under French law 39:03 39 minutes, 3 seconds that's a that's why the reason uh the matter has gone to French court otherwise this is with sack 39:10 39 minutes, 10 seconds okay got it uh uh couple of more questions so now when we are saying that we are looking at 20,000 cr order inflow 39:20 39 minutes, 20 seconds for fi 26 so 3,700 100 cr including this Uganda one we have already won and now 39:28 39 minutes, 28 seconds the all the Maharashtra is one can say is canled so Croatia so can you help me 39:36 39 minutes, 36 seconds uh understand this Croatia the entire 11,300 K though you said that it could 39:43 39 minutes, 43 seconds be a the road can spill to the April also so are we in 20,000 K considering 39:50 39 minutes, 50 seconds the entire 11,300 the road to B2B LOA by by March you would not like to develop on 39:58 39 minutes, 58 seconds individual jobs for the sake of by maintaining the confidentiality amongst competitors and all. So considering that 40:06 40 minutes, 6 seconds what sufface to say that we are we have at this stage there are at any point of 40:13 40 minutes, 13 seconds time you would see we have around 40 to 50,000 crores of uh uh value always bids submitted to be opened those kind of 40:22 40 minutes, 22 seconds things are very much there plus there are crochia which are in advanc stage and there are few others also which are 40:29 40 minutes, 29 seconds in advanced stage and some cases at the final stages of closure and all that. 40:35 40 minutes, 35 seconds Therefore, we are confident of achieving 20,000 crores of our guidance for the 40:41 40 minutes, 41 seconds year and the balance about uh 16,000 and cr 16,300 crores we are confident of achieving during the current quarter. 40:51 40 minutes, 51 seconds Okay. So my my my thought my I was trying to understand whether this the balance of 16,000 is is entirely uh how 41:00 41 minutes much would be the fresh the the new one that we are we are looking at not the converting of the uh L1 to LOA Croatia. 41:12 41 minutes, 12 seconds Yeah. So in only uh the Croatia rail project is what we have factored in which is around 6,600 crores rest all 41:21 41 minutes, 21 seconds are in the the new projects which are in the tendering phase we in the no other L1 we have taken in account in this 41:28 41 minutes, 28 seconds 16,300 crores okay and and in in terms of the going forward also this kind of a run rate 41:34 41 minutes, 34 seconds 20,000 K is is broadly that we look at on maybe in F 27 28 also that that's the way we one can look 41:42 41 minutes, 42 seconds Yeah, that's the target that around 20,000 crores next year also we'll be targeting for order booking 41:49 41 minutes, 49 seconds and on the execution front in the opening sir has mentioned that still we are we are hoping 10% growth for the 41:57 41 minutes, 57 seconds entire full year but 5% is doable. So I'm just even if I'm doing a math for 5% that means in the fourth quarter we need 42:05 42 minutes, 5 seconds to do a 20% 19% kind of a growth that means 3,500 K kind of a number which is 42:12 42 minutes, 12 seconds uh 3,800 K kind of a number. So kind of a,000 KQ improvement. So that kind of a 42:21 42 minutes, 21 seconds improvement are we already seeing at the projects level because you also highlighted there are still kind of a 42:29 42 minutes, 29 seconds payment scope change all these things are are there. So just wanted to understand roughly we have done about uh onethird 42:36 42 minutes, 36 seconds of uh whatever is the target for the quarter four for achieving 5% already in 40 days that should convey to the level of confidence. 42:46 42 minutes, 46 seconds Okay. Okay. Got it. Got it. understood that and a couple of balance sheet items if you 42:53 42 minutes, 53 seconds can uh uh share in terms of the and the uh uh gross date and net date you have mentioned but I I missed that part if 43:01 43 minutes, 1 second you can spell it again and maybe data inventory creditors mobilization retention and bill if you can share 43:09 43 minutes, 9 seconds would be help to understand how the working capital is moving working capital you know at the moment I don't have the balance sheet numbers the 43:17 43 minutes, 17 seconds the full recover but I can give you the uh debt number. So the debt number gross debt number is 3,634 crores is the gross 43:24 43 minutes, 24 seconds number and 2779 is the uh uh net debt number 43:31 43 minutes, 31 seconds and broadly the broadly the uh uh you know the balance sheet parameters are similar to uh the September number and 43:39 43 minutes, 39 seconds it is it is already there in the uh presentation. 43:44 43 minutes, 44 seconds Okay. Okay. Okay. Okay. Uh got it. and and the capex till now 9 month how much we have done and we were looking at 1100 43:52 43 minutes, 52 seconds odd k so uh what's the the number for full year and maybe for for next year 43:59 43 minutes, 59 seconds also if you can specify so on the capex front for this financial year as you have rightly said we had 44:06 44 minutes, 6 seconds planned 1100 crores and in that 1100 cr the tunnel boring machine related to this uh highspeed rail project is around 44:14 44 minutes, 14 seconds 700 cr balance 400 100 cr is something which we are going to do and this TBM is something which is uh uh contingent upon 44:23 44 minutes, 23 seconds you know movement from uh China if the approval comes then we'll end up somewhere around say 1100 cr for this 44:31 44 minutes, 31 seconds financial year if that doesn't happen then maybe we'll end up around 400 crores okay and until now 9 month how much we 44:38 44 minutes, 38 seconds have already done 9 month we have done close to 200 crores 44:45 44 minutes, 45 seconds Okay. Because in H1 I think it was 230 odd K. So nothing has been 44:52 44 minutes, 52 seconds similar number is there. So usually what happens that you know for in capex it's not that it will be you know uh 44:59 44 minutes, 59 seconds proportionate every month. These are large value equipment and the movement happens and uh that's how it gets accounted. 45:08 45 minutes, 8 seconds Okay. And and so so if this 700 KBM let's say moves to the next year. So next year this 700 and plus maybe 45:15 45 minutes, 15 seconds another 700 or 14,500 K kind of a capex one can look at we need to see because many of the 45:23 45 minutes, 23 seconds projects what the way we were looking at at the beginning of FY26 uh some of the projects were ongoing and 45:30 45 minutes, 30 seconds then we were expecting that new projects will come. uh the way things are looking now some projects the existing projects 45:38 45 minutes, 38 seconds will be completing so uh large part of the equipment will get uh free from the existing project so it will not be a 45:45 45 minutes, 45 seconds direct uh you know mass of 700 plus 700 we need to rationalize it will be it will be it will be say around say uh uh 45:54 45 minutes, 54 seconds if the CDM moves to the next year maybe around 1,100 cr kind of capex will be there and and last out of current existing 46:03 46 minutes, 3 seconds order book 32,500 and maybe plus this 1,000 cr Uganda let's assume uh no further inflow comes uh how much of that 46:12 46 minutes, 12 seconds in terms of the revenue one can look at in FI27 out of this 33 34,000 or 46:20 46 minutes, 20 seconds we'll uh we'll come back on this number maybe uh next quarter because uh we it's it's too early because we have to do 46:27 46 minutes, 27 seconds that um you know the the detailed planning but but broad broadly three year is the execution that's the way one can look at 46:35 46 minutes, 35 seconds or it could be a 3 and a half year 2 and 1/2 year is our average uh execution period uh that's what we have 46:42 46 minutes, 42 seconds always uh conveyed okay okay thank you and all the best sir thank you 46:52 46 minutes, 52 seconds thank you the next question is from the line of Bala Subramanyam from Aryand capital please uh good morning sir thank you so much 47:01 47 minutes, 1 second for the opportunities Uh sir uh this Badawan port uh technical bit uh it's opened and uh it's estimated nearly 47:09 47 minutes, 9 seconds around uh 5,900 cr and the award when we can expect sir. 47:15 47 minutes, 15 seconds Uh sir it's mentioned Q4 Vadwan port is something which has gone for security clearance for all the 47:23 47 minutes, 23 seconds biders. In many government contract they take only the winning bidder for the security clearance. Here they have mentioned that all the biders will go 47:32 47 minutes, 32 seconds for security clearance. So the one they're still awaiting the security clearance. Once security clearance comes bit could be open. 47:41 47 minutes, 41 seconds Okay sir. Uh sir I think uh our interest bearing advances has been increased to 20% to 40%. Uh so that leads to higher 47:51 47 minutes, 51 seconds interest cost once uh once we get international orders. uh how this uh mix will change. 47:59 47 minutes, 59 seconds Oh uh see in excess of 11,000 crores of uh 48:06 48 minutes, 6 seconds order uh which L1 and uh even some of the domestic project also we get uh 48:13 48 minutes, 13 seconds interest free advance. So generally uh the way we have seen last three four years the number is around say 20 25% 48:21 48 minutes, 21 seconds the interest bearing but at the moment it is at a bit elevated level. Uh it will be difficult to put any number uh 48:29 48 minutes, 29 seconds the percentage but you can take a guidance that in past it used to be around 20 25%. 48:44 48 minutes, 44 seconds Okay sir. Thank you. Thank you. Thank you. 48:48 48 minutes, 48 seconds The next question is from the line of Bhav Sha from GM Financial. Please proceed. 48:54 48 minutes, 54 seconds Yeah. What would be our total L1 position as of now? 48:59 48 minutes, 59 seconds L1 position total is 11,300 crores and uh we have we have in this L1 position 49:06 49 minutes, 6 seconds we have removed the Maharashtra job uh because what you know the internal uh this thing we have is these are going 49:14 49 minutes, 14 seconds for rebid okay and sir uh how big could be the vadan opportunity for us in EPC terms 49:24 49 minutes, 24 seconds over medium terms vadwan as As of now we have bid well and 49:30 49 minutes, 30 seconds uh the other contracts also we are uh participating in the bids. So we believe there are good opportunities in Wanport. 49:40 49 minutes, 40 seconds Can you quantify the opportunity? 49:44 49 minutes, 44 seconds The estimated values could be somewhere in the region of uh overall if you take it somewhere in the region of for EPC 49:52 49 minutes, 52 seconds values somewhere in the region of around 15,000 crores. And we are bidding for all the packages. 50:00 50 minutes Yes. 50:02 50 minutes, 2 seconds Okay. One package awarded where we had not participated. It's about 1,300 rores. All the other packages we we are 50:10 50 minutes, 10 seconds participating. We have participated are participating. 50:14 50 minutes, 14 seconds Okay. And what would be our current uh bid pipeline? And you could quantify it across uh key verticals. 50:22 50 minutes, 22 seconds Yeah. Our uh current bid pipeline which extend to next two years is close to 3.8 50:29 50 minutes, 29 seconds trillion rupees. Uh it is well spread across all the segments all the four key segments where we are actively 50:37 50 minutes, 37 seconds participating. The large chunk uh around 35% lies in the urban infrastructure space which take cares of metro bridges 50:44 50 minutes, 44 seconds elevated corridors and those kind of things. around 30% is in the hydro and underground which includes water, road 50:51 50 minutes, 51 seconds tunnels, those kind of work. Uh close to 20% is in marine and industrial business and uh around 15% will be in surface 51:01 51 minutes, 1 second transport which is your road business and railways business and uh in terms of domestic and overseas around 1/3 will be overseas and 2/3 is uh domestic. 51:15 51 minutes, 15 seconds Okay. Lastly, when do you expect the NHA awarding to improve and uh what would be 51:22 51 minutes, 22 seconds our pipeline right now from NHI particularly with respect to NHA we very selectively 51:28 51 minutes, 28 seconds participate for the simple reason uh the qualification criteria is so relaxed while recent times they have talked 51:37 51 minutes, 37 seconds about uh we have been continuously engaging with NHA and the more office and uh recent times they have indicated 51:45 51 minutes, 45 seconds they will go back to the old model of high value jobs being on a pre-qualified basis all that uh but that's yet to see 51:52 51 minutes, 52 seconds implementation because of the current delays in execution in an HA they thinking of going back to the old model 51:59 51 minutes, 59 seconds but as of now the new pattern which is coming it every bid is about 18 20 30 biders and bits going as low as minus 52:09 52 minutes, 9 seconds 40% that is not a market we want to be in so we will be very very selective in NH bidding 52:17 52 minutes, 17 seconds Okay. So lastly, are we open for B opportunities? 52:21 52 minutes, 21 seconds Uh B, we don't intend participating as a B player. we would associate with 52:29 52 minutes, 29 seconds concessioners as an EPC player and where there is a requirement for qualification and other purposes some nominal stake to 52:36 52 minutes, 36 seconds be taken we may look at it favorably otherwise we are looking at investors or similar concessioners bidding for it 52:43 52 minutes, 43 seconds with us as EPC partner that's what we are looking at okay thank you sir those are my questions 52:51 52 minutes, 51 seconds thank you thank Before we take the next question, we 52:58 52 minutes, 58 seconds would like to remind participants that you may press star and one to ask a question. The next question is from the line of mud bandari from IFL Capital. 53:08 53 minutes, 8 seconds Please proceed. 53:11 53 minutes, 11 seconds Uh hi sir, my question is upon the execution. uh if you look at order book and exclude all JJM and other projects that you talk about 53:19 53 minutes, 19 seconds even then we have very good visibility and you said there are some pending clearances or approvals and change in 53:26 53 minutes, 26 seconds scope so can you quantify what amount of these projects are which are pending clearance or u undergoing changes 53:36 53 minutes, 36 seconds it's uh mud is very difficult to quantify uh the projects but these are some of the projects which are in the 53:43 53 minutes, 43 seconds initial stage of uh execution and that is why the teething issues. Generally these kind of issue happens and they get 53:50 53 minutes, 50 seconds resolved quickly but in certain projects it has taken more time. That is the one aspect and the other part is there are certain projects we expected the uh the 53:59 53 minutes, 59 seconds pace of turnaround will be much much quicker which has not happened. So these are the mix of two things but very difficult to quantify in numbers in what 54:08 54 minutes, 8 seconds the exact num I mean quantum of projects which is going through is but as we have mentioned earlier also most of the 54:16 54 minutes, 16 seconds teething issues has been resolved and we expect this quarter to see the benefit of that. 54:23 54 minutes, 23 seconds Uh got it sir. Um any color you given up on which segment of this project will be? 54:30 54 minutes, 30 seconds Uh I mean again it is spread across largely three segments uh the urban infrastructure business, marine business 54:39 54 minutes, 39 seconds and uh and also in the in the hydro and underground business. 54:46 54 minutes, 46 seconds Okay. Got it. So you we are expecting that all these approvals or majorly of these approvals will receive within this 54:52 54 minutes, 52 seconds matter I mean stretched the more than planned. So they are they have already 54:58 54 minutes, 58 seconds come through you are saying all the approvals have already came of them has most of them have come through. 55:08 55 minutes, 8 seconds Okay. Okay. And that's why you say that gives the confidence that we can do booster growth in full. 55:28 55 minutes, 28 seconds Thank you. 55:30 55 minutes, 30 seconds The next question is from the line of Bhavin Modi from Alan Fati Financial Services Limited. Please proceed. 55:36 55 minutes, 36 seconds So just one question uh in terms of a bullet train project sir how much work you know we have executed and that have 55:43 55 minutes, 43 seconds we recognized in the revenue uh see again project specific numbers uh 55:53 55 minutes, 53 seconds you know we would not like to put across here but in terms of percentage we can tell you that uh we have uh completed 56:00 56 minutes around 30% in the project uh the the physical progress and according accordingly revenue and cost has been booked. 56:09 56 minutes, 9 seconds Okay. So, sir, we have not yet build to the client, right? So, this will be standing as unbuild revenue. 56:15 56 minutes, 15 seconds No, no, no. So, uh what we are saying is we have completed 30% in the project. Accordingly, cost have been booked. 56:22 56 minutes, 22 seconds Accordingly, revenue has been booked and we have uh we have the billing happens as per the payment milestone. So, we have we largely it will be done. The 56:30 56 minutes, 30 seconds billing has been done. Just to put in perspective there are uh there is an NATM tunneling there is a TBM tunneling 56:38 56 minutes, 38 seconds and TBM tunneling related shaft creation and other things. So other than TBM related work most of the other works 56:45 56 minutes, 45 seconds have been completed. There are few other buildings and all is there which can be completed only after the TBM tunneling 56:52 56 minutes, 52 seconds is done. Other than that all others are by and large in the final stages of completion. 56:59 56 minutes, 59 seconds Got it. Got it. That's it from my side. Thank you. 57:04 57 minutes, 4 seconds Thank you ladies and gentlemen. That was the last question for today. I now hand over the conference to management for closing comments. Over to you sir. 57:16 57 minutes, 16 seconds Thank you very much for your continued interest to all of you. Uh we would uh 57:23 57 minutes, 23 seconds we are very confident that Afans would create a long-term value to all the stakeholders. 57:29 57 minutes, 29 seconds stay invested and uh we'll be happy to take you along. Thank you. 57:37 57 minutes, 37 seconds Thank you. 57:38 57 minutes, 38 seconds Once again I would like to reiterate that while so many IT companies and others are operating in India and many 57:45 57 minutes, 45 seconds of them are considered innovative. CI uh recognizing us across segments as the 57:52 57 minutes, 52 seconds most innovative company is something which is very very unique and in a construction sector it is very rare to 58:00 58 minutes get that kind of a thing because the measurement of innovation in terms of manufacturing or other things it's 58:07 58 minutes, 7 seconds generally done in a construction sector across multiple remote projects to take the company as the most innovative company it's a very unique very unique 58:15 58 minutes, 15 seconds recognition I am pretty Sure all of you would appreciate that. Thank you very much. 58:25 58 minutes, 25 seconds Thank you. On behalf of DAM Capital Advisor Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you. and kill.