Ahluwalia Contracts Limited — Q3 FY26

Ahluwalia Contracts (India) Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=SeVh9tg9NnQ Published: 2 months ago

0:01 1 second Good afternoon everyone. On behalf of Amber Capital, I thank the management of Alua Contracts India Limited for the 0:09 9 seconds opportunity to host 23 FR26 earnings conference discuss the results. I'm pleased to 0:16 16 seconds welcome Mr. Shope deputy managing director Sikas Alua director 0:24 24 seconds and Mr. Sadir Singh chief financial officer. Now I management to the key highlights of the quarter post which 0:32 32 seconds we'll open up for a few. Thank you and over to you. 0:41 41 seconds Hi uh good afternoon good evening everybody. Aluia Contract India Limited has announced its financial results for Q3 FY26. 0:52 52 seconds During Q3 FY26, the company has achieved a turnover of 1060.72 crores and a PAT of 54.02 crores. In 1:02 1 minute, 2 seconds comparison to a turnover of 951.96 crores and a PAT of 49.39 crores during Q3 FY25, 1:11 1 minute, 11 seconds the company has registered a growth of growth of 11.43% 43% in turnover and a 1:16 1 minute, 16 seconds 9.38% growth in PAT during Q3 FY26 as in comparison to the corresponding quarter FY25. 1:27 1 minute, 27 seconds EPS of the company for Q3 FY26 is 8.06 compared to 7.37 in the corresponding quarter FY25. 1:38 1 minute, 38 seconds During Q3 FY26, the company's a bit margin is 9.05% 25% as compared to 8.86% 1:45 1 minute, 45 seconds in Q3 FI25 and PAT margin is 5.02% 02% as compared to the PAT margin of 5.11% in Q3 FI25. 1:55 1 minute, 55 seconds During the period of 9 months FI26 with the company uh uh the company has received a turnover of 3242.90 crores 2:05 2 minutes, 5 seconds and a PAT of 184.18 crores in comparison to a turnover of rupes 2882.79 2:11 2 minutes, 11 seconds crores and a pat of 118.35 crores during the corresponding 9 months of the last financial year FI25 EPS of the company 2:20 2 minutes, 20 seconds for the period of 9 months FI26 is 27.49 49 as compared to EPS of rupees 17.67 during the period of 9 months FI25. 2:33 2 minutes, 33 seconds During the period of 9 months FI26, the company's a bit margin is 9.59% as compared to 7.57% 2:41 2 minutes, 41 seconds at margin of 5.60% as compared to 4.05% in the period of 9 months FY25. 2:48 2 minutes, 48 seconds Net order book of the company as on 31st December 2025 is rupees 1860 18679.50 2:57 2 minutes, 57 seconds crores to be executed in the next 2 and 1/2 to 3 years. Total order inflow in 3:04 3 minutes, 4 seconds FI26 year to date is 9562 crores. 3:13 3 minutes, 13 seconds Thank you. Uh we are open to take questions now. 3:20 3 minutes, 20 seconds Thank you very much. We'll begin with the question and answer session. Anyone who wishes to ask a question may press 3:28 3 minutes, 28 seconds star and one on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are 3:37 3 minutes, 37 seconds requested to use handsets while asking a question. [clears throat] Ladies and gentlemen, we'll wait for a moment while the question ceue 3:45 3 minutes, 45 seconds assembles. The first question is from the line of Bayam Sha from JM Financial. Please go ahead. 3:53 3 minutes, 53 seconds Yeah. So firstly uh given the margins and the execution in 9 months. So how do you see the uh annual revenue for FI25 4:02 4 minutes, 2 seconds for FI26 targeting around 15 to 20% kind of growth? 4:08 4 minutes, 8 seconds No more like uh anywhere between 10 to 15%, you know, uh margin uh projection 4:16 4 minutes, 16 seconds is what I had given last time. it will be double digit uh but uh you know December January have been impacted uh 4:24 4 minutes, 24 seconds by uh NGT and project closures in Delhi and as nearly 44% of order book comes from Delhi uh that's uh impacted the top 4:34 4 minutes, 34 seconds line uh a bit uh and you know we expecting slight disruption in March also this time because Holi is earlier 4:43 4 minutes, 43 seconds this time so yeah anywhere between 10 to 15% top And for next year, next year it'll be 15 to 20%. 4:56 4 minutes, 56 seconds Okay. So, given the uh very strong order book and you mentioned that the orders are to be regular in roughly three odd 5:02 5 minutes, 2 seconds years. So, can the growth be even higher? Are we being conservative for 27? 5:10 5 minutes, 10 seconds V. You ask me this every time. We are being slightly conservative. Yeah. The order book is uh it was healthy last 5:17 5 minutes, 17 seconds time around. It's healthier now. You know we've given a projection of about 8,000 crores worth of uh order book in this inflow fresh order inflow in this 5:26 5 minutes, 26 seconds year. We've crossed that it's at about 9 and a half thousand cr. So uh yeah we being conservative and we saying 15 to 20%. 5:35 5 minutes, 35 seconds Okay. Secondly on a few key projects. So when do we expect to start the work on Davidson J Park? 5:44 5 minutes, 44 seconds We will start it in uh Q1 uh FI 27. 5:50 5 minutes, 50 seconds I mentioned the last time around also in April I said we'll start the drawings uh approvals are coming in now and uh the 5:58 5 minutes, 58 seconds client is in the process of handing over part of the site to us. There was an overburden of earth which was to be re removed by the client. They have already 6:06 6 minutes, 6 seconds done that substantially and uh 30 to 40% of the area they are in the process of handing over to us which should happen in the next month and we should start 6:15 6 minutes, 15 seconds the work any any target that we look for the this project in FI27 in terms of revenue 6:24 6 minutes, 24 seconds definitely uh gem and jewelry park definitely we are as I said Q1 FI27 the work will start actual billing will 6:33 6 minutes, 33 seconds start can you do this 30 35% kind of exemption which you were targeting earlier for 27 6:40 6 minutes, 40 seconds sorry come again 30 35% what sorry for fi 27 uh what kind of revenue are we targeting 6:47 6 minutes, 47 seconds from this budget of the total value of the project I think it would be to the tune of about 20%. 20 to 25%. 7:00 7 minutes Okay. And so secondly on CSMT uh we have seen uh some weakness in execution in Q3 7:07 7 minutes, 7 seconds uh compared to the month quarter of last four quarters. So how do you say it for entire year and for next year? 7:16 7 minutes, 16 seconds I think uh totally we had projected that we will execute in this financial year. 7:22 7 minutes, 22 seconds uh we would be executing anywhere between 300 and 350 crores worth of work on uh CSMP and we we are confident we 7:32 7 minutes, 32 seconds will be doing that. The work progress is picked up there and uh so we should be meeting that target as far as the next 7:39 7 minutes, 39 seconds financial year goes we should be doing a work of about 700 crores. 7:46 7 minutes, 46 seconds Okay. So lastly uh one data point so order info number is 9562. 7:51 7 minutes, 51 seconds So of this what would be the value X of GST uh of this to 63 crst 8:02 8 minutes, 2 seconds value is the GST value GST. Yeah. Okay. Okay. 8:14 8 minutes, 14 seconds Thank you. The next question is from the line of Lakshi Narayan from Tonga Investment. Please go ahead. 8:21 8 minutes, 21 seconds Hello. Yes sir. Hello. May go ahead. Yes, please go ahead. 8:29 8 minutes, 29 seconds Yeah. Uh see when we had a call in uh in the third week of November uh we were confident of growth of around 15 to 20%. 8:39 8 minutes, 39 seconds And uh did you anticipate uh that uh this would actually get toned down to 10 to 15% or what actually happened uh uh 8:48 8 minutes, 48 seconds in the last uh you know uh uh you know five to six weeks of uh Q3 uh that is my 8:56 8 minutes, 56 seconds first question. Uh the second question is that um you know one of our key uh accounts signature global uh they called 9:05 9 minutes, 5 seconds out uh some bit of uh slowness in the uh uh in their projects uh particularly the 9:12 9 minutes, 12 seconds sector uh 37B server like I don't know whether we are working on the DLX DX we are we are we are working yes 9:20 9 minutes, 20 seconds or DXP are working we working on uh DXP DX signature 37D not the New one. New one is the name 9:29 9 minutes, 29 seconds that you took. We are not working on that. 9:31 9 minutes, 31 seconds Okay. Okay. And and also uh there I think what they sorry to interject but surv what was the name that you said? 9:39 9 minutes, 39 seconds Yeah they they talked about the project Saram which was launched in December 2025. 9:44 9 minutes, 44 seconds Yeah they talking about the slowness in sales there. I don't think so we that's why we are not associated with that job 9:52 9 minutes, 52 seconds nor have we bid for that job. Bob and and also uh the larger question because we have uh uh you know DF is also a 10:01 10 minutes, 1 second large important client and uh what is your sense of uh of of the entire market? I think last time also we you uh 10:10 10 minutes, 10 seconds you said that we are somehow influenced uh ourselves from uh any any particular slowdown or any particular uh cash 10:18 10 minutes, 18 seconds issues with any of the developers. Can you just elaborate a bit more on that? 10:21 10 minutes, 21 seconds So we have my two questions. One is that what happened between November 17th to to December end uh which led to u 10:29 10 minutes, 29 seconds seemingly underwhelming uh guidance from where you started. Is there something that really happened and then the second is the gula stuff? 10:38 10 minutes, 38 seconds Yeah. So first question um this uh you know as I mentioned to Weber in response to the question that he asked the NGT 10:47 10 minutes, 47 seconds impact this year has been uh has been uh more prolonged so to say uh since 44% of 10:55 10 minutes, 55 seconds our order book is from NCR uh you know uh December and January have been impacted even the first week of February 11:02 11 minutes, 2 seconds was impacted uh as far as uh the project closure on account of pollution was concerned 11:09 11 minutes, 9 seconds uh and uh you know this time March the Holy festival is in the first week of 11:16 11 minutes, 16 seconds March. So generally uh what we've seen in the past is that 3 or 4 days before the festival the labor force starts uh 11:25 11 minutes, 25 seconds going back to their hometown uh and then it takes about a week for them to come back. So you know March is also going to 11:32 11 minutes, 32 seconds be impacted. That's why we have reduced our projection by 2 three four percentage points. As far as the top 11:39 11 minutes, 39 seconds line is concerned as regards uh ring fencing or uh or our exposure uh to the 11:47 11 minutes, 47 seconds slowdown uh as far as sales of residential uh buildings or projects is concerned. I 11:54 11 minutes, 54 seconds had mentioned last time around that uh you know we have uh we have now uh slowed down as far as bidding for 12:02 12 minutes, 2 seconds further residential projects is concerned. We feel that you know out of our total bouquet of uh projects uh 12:09 12 minutes, 9 seconds residential uh is quite a bit. So we now focusing on on institutional projects or airports or hotels or commercial 12:18 12 minutes, 18 seconds projects residential is not a focus area for us especially in NCR. Uh having said that you know uh the projects that we 12:27 12 minutes, 27 seconds are working on be it with DF as you mentioned uh we've not seen any sort of issues with payments uh DF being 12:35 12 minutes, 35 seconds obviously uh the premier uh development company in the country even with the likes of smartworld or ear you know all 12:44 12 minutes, 44 seconds the projects uh that we are executing the launch more than two years ago RARA uh you know being in place I don't see 12:52 12 minutes, 52 seconds we've not felt any financial issues with all the clients that we are working for on these residential projects in NCR. 13:01 13 minutes, 1 second So just to understand so the era ensures that the cash flows are restricted to that project and it is not actually taken out for any other things right. So 13:08 13 minutes, 8 seconds yes in fact it also puts pressure on the developer to sort of uh ensure that the 13:17 13 minutes, 17 seconds projects are delivered in time. So we continue to face those pressures from developers to to to uh execute faster 13:25 13 minutes, 25 seconds and build faster and as I said we've not faced any cash flow issues from these developers. 13:32 13 minutes, 32 seconds And just on the entity things, I think this seems to be a recurring phenomenon every year, right? So if that is the case, is this uh how do we build in in 13:42 13 minutes, 42 seconds our uh uh growth uh expectations uh internally? I mean how do you realign yourself because uh this is happening 13:50 13 minutes, 50 seconds maybe consecutively for the second or maybe third year also. Um and and I mean I mean we have 44 45% in in in Pria 13:58 13 minutes, 58 seconds region and that's something we should be there for the next 2 three years also. 14:02 14 minutes, 2 seconds So is it fair to assume that that's something which is a given you know I mean is there any way in which you can address this? 14:10 14 minutes, 10 seconds So you're right it's pretty much become a part of the annual calendar especially the third quarter uh of the financial 14:19 14 minutes, 19 seconds year. Uh but having said that because it's become a part now all the constituents of the ecosystem has become alive to it and you know we are all 14:28 14 minutes, 28 seconds constructively brainstorming as to how to mitigate uh the impact of this how to 14:34 14 minutes, 34 seconds sort of uh uh sensitize the powers that be be it the courts or uh or the governments uh be it the state 14:43 14 minutes, 43 seconds governments or or the central government. the impact that this is having on the livelihoods of of the workers involved with our industry. And 14:51 14 minutes, 51 seconds uh we are reasonably hopeful that you know in the coming years this impact is going to be mitigated uh uh with the 14:59 14 minutes, 59 seconds measures that we are taking on on the projects to ensure that uh our we are not contributing as much to pollution as 15:08 15 minutes, 8 seconds the popular notion is. We are we are sensitizing the governments to this uh fact also and uh you know the most 15:17 15 minutes, 17 seconds important point is all the all of us be it the developer or be it the contractor or be it the bureaucracy we we we seem 15:24 15 minutes, 24 seconds to be getting aligned on this point. So we are hoping that you know in the coming year or years the disruptions are not going to be as much as they have 15:32 15 minutes, 32 seconds been in the last 2 three years and this year has been a little more peculiar in the sense that you know uh right from 15:40 15 minutes, 40 seconds the festive season onwards the disruption started. So the and now holies as I said is also earlier. So 15:48 15 minutes, 48 seconds this impact starting from Diwali from October till January January end has impacted our topline performance. 15:57 15 minutes, 57 seconds I just one more question. Uh sometime back maybe a year back uh or somebody three quarters back you you mentioned that there is a nonavailability of of 16:06 16 minutes, 6 seconds workers and especially post elections you couldn't get them assembled etc. Now I mean how have you uh taken I mean have 16:14 16 minutes, 14 seconds any steps have been taken by the industry or by yourself so that uh we have uh you know we will have some UP 16:22 16 minutes, 22 seconds elections coming next year and so on and so forth. So how do you en ensure that the labor availability uh at the right 16:29 16 minutes, 29 seconds time at the right uh amount is uh is actually taken care of or it's still just a lurking issue that you're it's it's actually a full-blown issue. 16:39 16 minutes, 39 seconds It's not a lurking issue and uh uh but again the slight advantage of this become becoming such a large issue is 16:47 16 minutes, 47 seconds that again all of us are are aware of this fact now. It's not in the days gone by it was only the contractor who used to grapple with this issue. Now 16:56 16 minutes, 56 seconds everybody's aware more importantly the uh the the clients are aware of this the governments are aware of this and uh so 17:04 17 minutes, 4 seconds what is happening is that there is this is leading to greater standardization wherein you know we can we can do a lot 17:12 17 minutes, 12 seconds of work offsite use more mechanization to reduce the impact on uh or reduce the dependency on on labor. 17:21 17 minutes, 21 seconds uh and then uh training is also something that we started but that's in a very nent stage. 17:31 17 minutes, 31 seconds Have I answered your question or hello? 17:38 17 minutes, 38 seconds Yeah, thank you so much sir. You have answered my question. Yeah, thank you. Thank you so much. 17:45 17 minutes, 45 seconds Thank you. The next question is from the line of Parves Kazi from Noama. Please go ahead. 17:52 17 minutes, 52 seconds Uh hi, good afternoon sir and thanks for hi. Hi. 17:56 17 minutes, 56 seconds Hi. Uh so first uh I mean on this MGT issue assuming let's say if it had not 18:06 18 minutes, 6 seconds been there uh what kind of execution would we have done in? 18:15 18 minutes, 15 seconds What kind of execution? we would have uh stayed on course for a 15 plus% uh uh growth in our top line. 18:28 18 minutes, 28 seconds Sure. Uh secondly on uh I mean on the payment 18:35 18 minutes, 35 seconds etc. how do you see uh things now especially from the government departments in some of the other segments of Indra we have seen a 18:43 18 minutes, 43 seconds slowdown in payments uh in FI26. So how is the situation in your government funded projects? 18:52 18 minutes, 52 seconds Uh uh the we we really a lot of our or most of our government funded government projects are central government 19:01 19 minutes, 1 second projects. We are not really seeing uh much of a problem there other than in 19:08 19 minutes, 8 seconds the odd project here and there like we're doing a central university project uh in the state of Himasel Pradesh which is partly funded by the state and partly 19:17 19 minutes, 17 seconds by the center. So there we are facing some challenges. Uh that project is nearing completion. We are hoping to 19:25 19 minutes, 25 seconds complete it in Q1 of S527. So there is a bit of a challenge there. We completed the another hospital for the center and 19:34 19 minutes, 34 seconds state government in again Machel. The final payment sorry there has been stuck for a while. 19:42 19 minutes, 42 seconds So uh yeah with the state of himal there is a bit of an issue and uh we are also seeing some issues uh with the state of Assam. 19:53 19 minutes, 53 seconds I think that's also due to the fact that the machinery there has slowed down a bit on account of the impending elections 20:02 20 minutes, 2 seconds otherwise we don't we haven't seen um all our other snow slowmoving projects uh be it for the state of Bihar or uh 20:10 20 minutes, 10 seconds other states they they are okay now we've got opinions 20:16 20 minutes, 16 seconds sure uh and uh couple of data points that I needed from Sab G uh what is the 20:24 20 minutes, 24 seconds current uh gross depth uh level I mean gross borrowings uh gross borrowing is this uh this is 32 20:32 20 minutes, 32 seconds crores approximately uh what would be the cash level that we have currently 20:39 20 minutes, 39 seconds cash balance is uh 20:49 20 minutes, 49 seconds the cash balance of 253 crores and bank balance is 587 cr. 20:56 20 minutes, 56 seconds Uh what is the kex that we have done? Uh in uh in 9 months we have incurred around 193 quotes. 21:07 21 minutes, 7 seconds Okay. Uh and apart from this order book are we L1 in any other project? 21:15 21 minutes, 15 seconds Yes, we are L1 in both projects. This is a mountain tour with 2,485. 21:27 21 minutes, 27 seconds Uh sure. Uh last question. Uh I mean what is the status on the Chandigard station redevelopment 21:36 21 minutes, 36 seconds project? Has work pick up uh picked up there or and what is the status now? 21:43 21 minutes, 43 seconds So Chandigard uh station is nearing completion. uh we 21:49 21 minutes, 49 seconds are uh targeting to complete it in Q1 FI25. 21:55 21 minutes, 55 seconds The two stations Punchula and Chandigar have been create has have already been completed and we have offered uh the 22:04 22 minutes, 4 seconds client to take them over and the platform work is also substantial substantially underway and as I said in 22:12 22 minutes, 12 seconds somewhere by May we should be completing it. Sure sir. Uh thanks and all the best. 22:20 22 minutes, 20 seconds Thank you. 22:23 22 minutes, 23 seconds Thank you. The next question is from the line of Mahes Patil from ICICI securities. Please go ahead. 22:32 22 minutes, 32 seconds Yeah. Hi sir. Uh so first question is on the DFAS project. I think last time we guided for more than 100 share of uh 22:42 22 minutes, 42 seconds revenue in this fiscal and around 3 to three and a half billion next year. So are we on track for that this year? No, 22:50 22 minutes, 50 seconds this year uh it will be about 40% of that because uh you know new uh uh 22:56 22 minutes, 56 seconds earthquake codes were put in place and BLF is uh has redesigned or is in the process of redesigning or doing the 23:05 23 minutes, 5 seconds structural design again. So that is why uh you know a lot of work had to be redone obviously at the at at the 23:14 23 minutes, 14 seconds client's cost. So that is why our target or turn target is going to be or turnover is going to be lesser by March 23:22 23 minutes, 22 seconds end. But uh we should be post holy we should be we should be in a position to take up the work in real ordinance. The 23:30 23 minutes, 30 seconds designs are coming in as we speak and s what are we what is the estimate 23:36 23 minutes, 36 seconds for 20 from this project from Dalia's the for the next financial year it remains what we had said last year. 23:49 23 minutes, 49 seconds Okay. 23:51 23 minutes, 51 seconds Uh okay answer uh uh this uh right 23:58 23 minutes, 58 seconds coalition issue right uh are we facing any challenges uh in the current month as well or uh is because I think the 24:05 24 minutes, 5 seconds last you're not very clearly audible repeat that please uh sir I was asking in the last corn 24:14 24 minutes, 14 seconds call in November we highlighted that till that date we were around 11% of margin Uh so apart from this uh grab 24:23 24 minutes, 23 seconds issue, anything else that impacted our uh uh revenue and margin this quarter? 24:33 24 minutes, 33 seconds Primarily it was primarily it was graph only as I said you see there. 24:43 24 minutes, 43 seconds Hello come again. 24:44 24 minutes, 44 seconds Yeah and was there any impact of this issue in the base quarter last year Q3? 24:54 24 minutes, 54 seconds The impact of graph you're talking about correct in the last year it was it was there definitely but it 25:04 25 minutes, 4 seconds was lesser since our our exposure now has increased to the NCR market. 25:10 25 minutes, 10 seconds Okay. So you mentioned around 40% of the order book is yeah more than 40% is now from NCR. 25:17 25 minutes, 17 seconds Okay. And so for next year if I may ask uh what would be our uh uh uh you know 25:23 25 minutes, 23 seconds revenue estimate from this uh NCR region for FR 27 any ballpark number 25:31 25 minutes, 31 seconds uh we are in the process it should be about 40% 40% 40% of investment okay 25:39 25 minutes, 39 seconds thank you thank you thank you the next question is from the line of shan Sha from Dollar Capital. 25:49 25 minutes, 49 seconds Please go ahead. 25:52 25 minutes, 52 seconds Hi. Uh thank you sir. Uh sir, couple of questions and uh uh uh clarifications. 25:57 25 minutes, 57 seconds So uh in the fourth quarter uh how much are we are we looking to do uh do kind of a revenue 1400 or per kind of a 26:05 26 minutes, 5 seconds revenue that we are looking at in this fourth quarter. Yes. Exactly. It would be 10 to 15%. 26:14 26 minutes, 14 seconds Yeah. About 1,400 cr. Yes. 26:17 26 minutes, 17 seconds Okay. And next full year then we should be doing a 20 to 25%. 26:28 26 minutes, 28 seconds Yeah, I said 15 to 20% earlier but some some recoup should be there uh 26:35 26 minutes, 35 seconds in in the F27 given the inflow is also on the higher side sir. 26:41 26 minutes, 41 seconds Yeah it should be. I had also mentioned that this is a conservative estimate that I think the recovery what we've sort of lost out 3 4 percentage points 26:50 26 minutes, 50 seconds should be made up in the next financial year that's why I said 15 to 20%. 26:56 26 minutes, 56 seconds Okay. and the margin for source water and and our project just just to put things in context more so with the 27:04 27 minutes, 4 seconds central visa project which has come in which is a fast which is a fastmoving project will be a fastmoving project and 27:12 27 minutes, 12 seconds that is one project which the central vista projects are uh insulated from the grass impact so that should also 27:20 27 minutes, 20 seconds contribute substantially to our turnover next year yeah so I was about to ask that only. So 27:28 27 minutes, 28 seconds this out of this I know I I know you well that's why I preempted you. 27:33 27 minutes, 33 seconds Yeah. So so roughly how how one can look at so the overall timeline for central 27:39 27 minutes, 39 seconds vista is 24 months and in f 27 uh can we see kind of a 40 odd% of this 2,600 ku? 27:50 27 minutes, 50 seconds Yeah, that's that's what you know initially uh uh there is time is going to be taken by designing. It's a large project. It's a very complex project. 28:00 28 minutes So, designing is already started. Uh we are awaiting clearance from the authorities. Uh you know these are important buildings which are having to 28:09 28 minutes, 9 seconds be demolished. They yet not been vacated. So, uh we should be billing at least 30% plus in this year. 28:19 28 minutes, 19 seconds Okay, got it. And in terms of the margin of Q4 and next year 10% is is doable or we can say even it is definitely doable. 28:31 28 minutes, 31 seconds Okay. Okay. But but a possibility towards 10 and a half% is is uh there for next year. 28:38 28 minutes, 38 seconds Let's let's stick to 10%. 28:42 28 minutes, 42 seconds Okay. Okay. And then just to s clarify this 9,500 K plus order inflow. So this is 28:49 28 minutes, 49 seconds excluding the GST you're saying but GT is included in that that 63 28:57 28 minutes, 57 seconds 63 yes is included in the figure of 9562 okay okay so if you remove that and 29:05 29 minutes, 5 seconds broadly 8,900 odd k without yes okay and the L1 that we say 2485 29:14 29 minutes, 14 seconds so that is also excluding GST or including that is also including the motor that's 29:22 29 minutes, 22 seconds government project and industry including okay and so these are three projects so last time we were having the two 29:28 29 minutes, 28 seconds projects Bhneswar University and RML hospital Delhi 29:36 29 minutes, 36 seconds these are four projects uh can you s name it all these four projects 29:45 29 minutes, 45 seconds one is RML one is ODIA University, one is Assam Judicial Complex, one is Kota Airport. 29:54 29 minutes, 54 seconds Okay. And lastly, sir, balance it uh uh details, inventory, datas, trade payable and mobilization, retention and unbuilding. 30:05 30 minutes, 5 seconds That's details are 638 crores. Okay. And retention 431 crores. 30:15 30 minutes, 15 seconds Okay. Mobilization 729 cr. Okay. 30:22 30 minutes, 22 seconds 738 crash. Uh sorry 738 is what? 30:30 30 minutes, 30 seconds Traitors traders. Yeah. 738. Yeah. And inventory 359 cr. 30:40 30 minutes, 40 seconds And is 639 cr. 639 K and in terms of the capex in the 30:48 30 minutes, 48 seconds fourth quarter how much more uh 193 K we have done how much more we will be doing in 30:56 30 minutes, 56 seconds this quarter we have got 55 cr more or that is around 31:03 31 minutes, 3 seconds 100 about 100 cr 100 cr okay total so around 300 K for the entire year 31:11 31 minutes, 11 seconds yeah and then XR also similar 300 K. 31:20 31 minutes, 20 seconds Yes, next year also similar. It's it's similar should be lesser actually because the order inflow that we've had 31:28 31 minutes, 28 seconds now we more or less by the end of March we would have catered to the capex for those projects. 31:34 31 minutes, 34 seconds Okay. ends up this L1 most likely will be converted into LOA by this March this 2485 odd 31:42 31 minutes, 42 seconds can't say on all these jobs really it's very difficult because as we've seen sometimes with government projects 31:50 31 minutes, 50 seconds especially state government projects it takes a long time okay so so next year then the apart from 31:58 31 minutes, 58 seconds this the price if I have to look at uh can one can look at 8 9,000 cr similar 32:04 32 minutes, 4 seconds run rate In terms of inflow for F27 as I said we are picking and choosing 32:12 32 minutes, 12 seconds our projects. We have focus on residential is not there. So I think logically speaking next year the inflow 32:21 32 minutes, 21 seconds will be slightly lesser uh 5 6,000 K. Yes. 32:29 32 minutes, 29 seconds because our focus is going to be in increasing our efficiency and uh and and increasing our margins and doing 32:37 32 minutes, 37 seconds delivery on the projects that we've bagged in this year and last year. Yeah. Yeah. Both work experience. 32:46 32 minutes, 46 seconds Yeah. Uh that's it from my side. Thank you and all the best sir. Thank you. Thank you. 32:53 32 minutes, 53 seconds Thank you. The next question is from the line of Separal from ASK Investment. Please go ahead. 33:02 33 minutes, 2 seconds I just wanted to find out about this new labor code provision. So most companies actually put this as a extraordinary 33:10 33 minutes, 10 seconds expense. You have I think included it in the labor salary and wages. So X of that 33:17 33 minutes, 17 seconds if you have to see what would have been the margins and the tax have you done some calculations? 33:25 33 minutes, 25 seconds cr 1.7 has been collected during this 9 months. 33:43 33 minutes, 43 seconds Oh, it's one code 31. It's not 13 codes. Okay. No, one 31 lines. 33:49 33 minutes, 49 seconds Okay. Okay, that's fine. Thanks. 33:57 33 minutes, 57 seconds Thank you. The next question is from the line of Bhav Sha from GM Financial. Please go ahead. 34:04 34 minutes, 4 seconds Yeah, sir. What would be our uh build pipeline uh as of now? 34:11 34 minutes, 11 seconds This pipeline as of now is about 7,000 crores. 34:17 34 minutes, 17 seconds Okay. In your guidance of 5 to 6,000 crores of inflow uh does it include the L1 orders as well of around 2 and a half,000 crores. 34:28 34 minutes, 28 seconds Yeah, it does. 34:30 34 minutes, 30 seconds So likely conversion would be in next year. Yes. 34:36 34 minutes, 36 seconds Okay. And then secondly on uh the Bihar animal husbandry project. So when do we 34:44 34 minutes, 44 seconds targeted to complete the project in FY has dropped down in last two to three quarters. 34:51 34 minutes, 51 seconds Yeah. Because you know uh the the area uh it's an existing campus. So the new buildings are coming up as and when they 35:00 35 minutes are handing over or vacating existing old buildings. They are being demolished and the new ones are being constructed. 35:06 35 minutes, 6 seconds So in the last uh quarter and a half uh you know uh the vacation of these buildings is is has slowed down but uh 35:16 35 minutes, 16 seconds this will definitely complete in FI27 because part of the complex in this quarter has been inaugurated by the 35:23 35 minutes, 23 seconds honorable CM and he's announced a date for completion of the entire campus. So we are reasonably confident in in the next year it'll be completed. 35:35 35 minutes, 35 seconds Okay. Last year of gems and jewelry. Uh so when do we what is the timeline of uh or is time of construction? When do we intend to complete the project? 35:47 35 minutes, 47 seconds I think uh the timeline Vikas is on the call. Vikas are you there? You want to answer this question? 35:56 35 minutes, 56 seconds Sir Vicas sir is not online. 35:58 35 minutes, 58 seconds Okay, never mind. We the period for this project uh completion of this job is about 3 and a half years if memory 36:05 36 minutes, 5 seconds serves me right and as I mentioned earlier we are going to start billing in Q1 FI27 the work will start on the 36:13 36 minutes, 13 seconds ground since this is an ETC job engineering is already happening. 36:22 36 minutes, 22 seconds Okay. Thank you sir. Thank you. 36:28 36 minutes, 28 seconds Thank you. The next question is from the line of Rajat from I thought PMS. Please go ahead. 36:35 36 minutes, 35 seconds Hi. Uh am I audible? Yes, you are. 36:39 36 minutes, 39 seconds Thanks. Uh sir, with regards to CSNB project, is there any delay uh relative to the original timeline? 36:47 36 minutes, 47 seconds Yes, there is a delay. there is a huge delay and uh so we've uh as had been 36:56 36 minutes, 56 seconds explained in the earlier calls uh you know the entire design uh of this project had to be redone 37:04 37 minutes, 4 seconds because uh the design uh conceptual design which was given by the tender was not uh tenable. Certain aspects of that design were not tenable on the ground. 37:15 37 minutes, 15 seconds that designing is complete. Work is uh works uh now moving at a fast clip there. Uh that's why there's a delay. 37:26 37 minutes, 26 seconds So can that result in any uh cost overruns for us like lower margins in this project for us? 37:33 37 minutes, 33 seconds So yes, there has been an impact on the cost but uh you know uh as we move along 37:40 37 minutes, 40 seconds we are hopeful that some of these cost will be mitigated uh either through extra work or through extra claim. 37:50 37 minutes, 50 seconds Okay. And can there be any penalties as well? No, we've got uh the extension of time 37:58 37 minutes, 58 seconds owing to the delays till now which are not attributable to us has been uh granted that has been adequately agreed upon. 38:08 38 minutes, 8 seconds Yes. What happens in all government contracts is that uh you know there is a hindrance register which is the which is maintained and which is jointly signed 38:17 38 minutes, 17 seconds off which helps establish the delays which are not attributable to the contractor. Generally these are finally 38:25 38 minutes, 25 seconds quantified towards the end or the last stage of the project. But in this ca in this project since the delays have been 38:33 38 minutes, 33 seconds uh quite large and uh very obviously not attributable to us uh up until now the extension of time has been granted. 38:44 38 minutes, 44 seconds Sure. And the margins on this project was same as company level margins going into the project or since it was a 38:51 38 minutes, 51 seconds marquee project so we went had a lower margin. 38:56 38 minutes, 56 seconds Uh no these were these were similar uh to the companywide uh margins that we 39:03 39 minutes, 3 seconds target. In fact uh you know because the competition on this job was lesser since because the scale of the job only the 39:10 39 minutes, 10 seconds larger players were there. So uh we had bidden with the same margin that we keep for uh other projects or other blue chip projects. 39:21 39 minutes, 21 seconds I think I think have I answered your question or something? Yeah. Yeah. And one more related to this given it's a 39:30 39 minutes, 30 seconds very complex project uh and a lot of traffic at the station. So do you any charge any delays in execution because 39:38 39 minutes, 38 seconds of that reason uh in the future? You are right uh because uh while the buildings the green field 39:47 39 minutes, 47 seconds buildings you know the DRM or the node uh the building you know or the other buildings they uh we don't envage any 39:56 39 minutes, 56 seconds delay further delay but platforms or doing them up or the concourses that depends on the shutdown which is given 40:03 40 minutes, 3 seconds to us. So uh you know it's very hard to predict but yes generally going by our experience at Chandiga railway station uh there may be some delays there. 40:16 40 minutes, 16 seconds Okay and those delays I mean can again cause overruns or that has been budgeted in or how is that those have been budgeted in to some extent. 40:27 40 minutes, 27 seconds Okay. All right. And so you just mentioned that uh uh gems will start 40:33 40 minutes, 33 seconds from April and the timeline of digital was probably 2 and a half years to 3 years. So that timeline will begin from 40:41 40 minutes, 41 seconds April or it has already started from the time of So it will begin from April. It will begin from April. It will begin from April. Okay. Okay. 40:50 40 minutes, 50 seconds Understood. Uh and one last one. uh given the pollution related construction ban in Delhi has been happening for the 40:59 40 minutes, 59 seconds last two three years and it is affecting our topline growth uh and the margin and the guidance that we give we need to revise it downward. 41:09 41 minutes, 9 seconds Now my question relates to the next year when we are seeing where we are seeing 15 to 20% growth. Do you think that we might have to again divide it downward 41:18 41 minutes, 18 seconds or we are budgeting in 10 or 9 months of construction activity only in Delhi while we give this this flight for F27? 41:28 41 minutes, 28 seconds No no we not uh budgeting in only 10 or 9 months of this thing. uh what I had said earlier was while some impact will 41:37 41 minutes, 37 seconds be there but we are hopeful that this year this year or next year because the entire ecosystem is totally sensitized 41:46 41 minutes, 46 seconds and much more aware about this issue every constituent of this ecosystem is working to mitigate its effects. So we 41:55 41 minutes, 55 seconds are hopeful that this time around the effects will be uh lesser much lesser. 42:02 42 minutes, 2 seconds Sure. Sure. I hope so. And that's the case because uh we were hoping that FI26 will also have much lesser impact but it 42:11 42 minutes, 11 seconds turned out to be the opposite. So just you're right and it's not only impacted the top line, it's also impacted our 42:17 42 minutes, 17 seconds profitability because you know uh while we backed a lot of large orders and to execute those large orders our overhead 42:25 42 minutes, 25 seconds costs had also gone up. So uh you know in the short term our profitability has been hit but uh the silver lining is 42:34 42 minutes, 34 seconds that now going forward not only are we well stocked on uh on on our order book but we are also well equipped every 42:43 42 minutes, 43 seconds which way to uh you know ramp up our uh execution speed. So hopefully next year 42:50 42 minutes, 50 seconds we will make up for we are very optimistic that we'll make up for the shortfall that we've encountered this year. 42:58 42 minutes, 58 seconds Sure. Sure sir. Thank you so much and wish you all the best. Thanks answering of the questions. Thanks. 43:05 43 minutes, 5 seconds Thank you. The next question is from the line of Ankit an individual investor. Please go ahead. 43:12 43 minutes, 12 seconds Yeah. Hi. Uh sir. So I just wanted to check on well I see the results for this 43:19 43 minutes, 19 seconds uh quarter I see a subcontract work as well as other expenses uh are uh substantially high almost 30% yearonear 43:27 43 minutes, 27 seconds which are very similar to our quarter 2 uh numbers. So uh the first question is is there a substantial reason to it 43:34 43 minutes, 34 seconds apart from the NGT issue which has been discussed already. 43:42 43 minutes, 42 seconds Just a second please. Let me take a look at the numbers. 43:55 43 minutes, 55 seconds subcontract you are asking about to comp in comparison to which quarter? 44:01 44 minutes, 1 second Uh the same quarter last year sir the subcontract work as well as other expenses. 44:07 44 minutes, 7 seconds If you have to see including cost of material and uh other expenses and subcontract then you will find that is 44:16 44 minutes, 16 seconds at par because our uh is also approximately on the similar line 6.90% 44:26 44 minutes, 26 seconds uh last year and now 6.6.85 date file right so that has basically you have to include entire 44:34 44 minutes, 34 seconds thing subcontract construction expenses and cost metal then you'll find the appropriate answer 44:41 44 minutes, 41 seconds fair enough fair enough thank you the second question I just had was uh uh you know there have been news uh of lately on increasing steel prices does that 44:50 44 minutes, 50 seconds impact you on quarter 4 onwards or are we uh because in the last call we discussed that we will use or we normally use our cash position s to sort 44:59 44 minutes, 59 seconds of hedge against uh you know the supply chain costs. So is there something which we see as an inflation in terms of uh 45:07 45 minutes, 7 seconds raw material cost or have we already hedged it? 45:11 45 minutes, 11 seconds No, the inflation definitely is there but uh in uh in the pricing of cement and steel 45:18 45 minutes, 18 seconds uh this is uh passed through because in all our contracts or most of our contracts uh there are base prices for these materials. 45:29 45 minutes, 29 seconds But there is an indirect impact on uh account of increase in steel prices because of you know the other material 45:38 45 minutes, 38 seconds our equipment that we buy be it uh be it tower cranes be it mixers transit mixers so on and so forth scaffolding 45:47 45 minutes, 47 seconds aluminium shuttering there is an impact on account of these pricing sure those were two questions I had 45:54 45 minutes, 54 seconds thank you thank 45:57 45 minutes, 57 seconds [cough and clears throat] 46:00 46 minutes Thank you. The next question is from the line of Samra Sarker, an individual investor. Please go ahead. 46:08 46 minutes, 8 seconds Hello. Am I audible? Yes, you are. 46:11 46 minutes, 11 seconds Yeah. So, I just wanted to know uh why your other employee expenses are uh uh as compared to your percentage of revenues is so high this quarter or uh as compared to last year. 46:24 46 minutes, 24 seconds uh just basically provision as per the ECN method has been made around 34 that's why there is a slightly different 46:33 46 minutes, 33 seconds okay okay okay and uh uh when do you expect the uh this uh your uh operating margins to be 10% from which financially 46:40 46 minutes, 40 seconds onwards yeah this would be double okay okay that's it sir thank you so 46:47 46 minutes, 47 seconds much thank you all the best thank you thank you. A reminder to all 46:55 46 minutes, 55 seconds participants to press star and one to ask a question. 47:04 47 minutes, 4 seconds Ladies and gentlemen, if you wish to ask a question, you may press star and one. 47:20 47 minutes, 20 seconds The next question is from the line of Shraan Sha from Dollar Capital. Please go ahead. Uh uh uh how much value of 47:30 47 minutes, 30 seconds projects that we have already bidded and is uh outcome is yet to come. 47:42 47 minutes, 42 seconds Seven that's a number that we don't have handy at the moment. uh L1 we've already told you it's 2485 47:51 47 minutes, 51 seconds uh uh the other value is more on the private sector side we can can we get back to 47:58 47 minutes, 58 seconds you on that number yeah no that's not going to be substantial as I said uh uh we have uh we are we are not 48:08 48 minutes, 8 seconds focusing on the government or sorry on the residential side so primarily government projects 48:26 48 minutes, 26 seconds I [clears throat] don't have that figure handy. We'll we'll get back to you on that. 48:30 48 minutes, 30 seconds No sh and private government 48:37 48 minutes, 37 seconds which is at 68% which is a private. So last time we said that we want it to reduce to 60%. 48:45 48 minutes, 45 seconds Actually even if you take the central visa which is coming after December 48:54 48 minutes, 54 seconds yeah it will be about uh% 60 40 so now we will keep it at this level or 49:02 49 minutes, 2 seconds we want to it toward 50/50 going forward going forward 5050 49:11 49 minutes, 11 seconds but it can it's very difficult to say whether it'll be 55 45 it'll be 60 40 49:18 49 minutes, 18 seconds one way or the other or 40 60 but it'll be it'll be quite even. Okay. Okay. Okay. Got it sir. Got it. 49:26 49 minutes, 26 seconds Thank you sir. Thank you. 49:31 49 minutes, 31 seconds Thank you. The next question is from the line of Rahul Kumar from Vikaria Fund. Please go ahead. 49:40 49 minutes, 40 seconds Hello. Yeah. Hi. 49:42 49 minutes, 42 seconds Yeah. Hi. Yes. One question. uh is there an impact of the new labor code on uh or 49:49 49 minutes, 49 seconds contract labor and if yes uh how do you I think we have answered this question 49:56 49 minutes, 56 seconds 1.31 cr in absolute numbers up to December no uh I understand sir this is for the 50:04 50 minutes, 4 seconds our employee wage right uh I was just wondering uh the you know the outsourced 50:09 50 minutes, 9 seconds labor uh include outsource labor Okay. 50:21 50 minutes, 21 seconds Okay. Okay. You know outsourced labor uh is is is generally uh uh you know we uh 50:28 50 minutes, 28 seconds for labor rate works we have petty contractors right and there uh the uh the it's it's 50:37 50 minutes, 37 seconds its rate per unit uh which is uh there the work is contracted out to them. So 50:44 50 minutes, 44 seconds this impacts going forward uh you know in the rates that is agreed with them. 50:49 50 minutes, 49 seconds So it it becomes very difficult to quantify this. 50:54 50 minutes, 54 seconds Am I am I have I been able to articulate? Have you understood? 50:59 50 minutes, 59 seconds Yes, understood. Uh I was just trying to understand from a you know from bidding point of view or you know pricing point of view for going forward how does this 51:07 51 minutes, 7 seconds impact impact us? So you know as far as labor is concerned uh due to its scarce 51:17 51 minutes, 17 seconds availability and diminishing skills you know uh the quarter on quarter we when we bid for a job we see we are seeing 51:26 51 minutes, 26 seconds that the unit rates are on the increase every 3 months or 4 months and they are far more 51:33 51 minutes, 33 seconds than what the governments are recognizing. So we are putting uh we have we are sort of uh accounting for this increase based on the past data 51:42 51 minutes, 42 seconds past one year or past two years. We are extrapolating that data and uh using it to sort of hike our bids also. 51:54 51 minutes, 54 seconds Okay. Thank you. 51:59 51 minutes, 59 seconds Thank you. The next question is from the line of Munir Shamadia an individual investor. Please go ahead. 52:10 52 minutes, 10 seconds Hello. Yeah. Hi. 52:12 52 minutes, 12 seconds Thank you sir for the opportunity. So in the Q2 presentation year to date order was uh 4374 K and in Q3 presentation it 52:22 52 minutes, 22 seconds is 95 6 uh 9565 crores and in the meanwhile we have just we have received 52:29 52 minutes, 29 seconds two orders of 3070 cr and uh 8 uh triple 8 cr still there is a difference of 52:38 52 minutes, 38 seconds around uh 1200 cr. So have we like uh received any other order? 52:44 52 minutes, 44 seconds We we we need to uh we'll we'll I don't have that data handy. Uh but Satir you 52:52 52 minutes, 52 seconds can reach out to Satir. We'll provide you that uh detail. Okay sir. Okay. Thank you sir. 52:59 52 minutes, 59 seconds Thank you. 53:03 53 minutes, 3 seconds Thank you. The next question is from Ankit an individual investor. Please go ahead. Yeah, thanks for the opportunity again. 53:12 53 minutes, 12 seconds I just wanted to uh ask a couple of points. One is in on quarter 2 presentation we had uh mentioned 53:19 53 minutes, 19 seconds whiteland corporation is around uh order value of around,65 cr which has uh in the quarter 3 presentation has come up to be 821 cr. So is there a change here? 53:31 53 minutes, 31 seconds That's the first question. 53:34 53 minutes, 34 seconds I think there is a mismatch. The the 1060 includes uh GST. 53:43 53 minutes, 43 seconds Okay. So the 821 is without GST. 53:48 53 minutes, 48 seconds Okay. Okay. And uh uh second question was that uh what type of benefits in terms of the operational u uh financial 53:56 53 minutes, 56 seconds or any other organizational benefits we would like to extract from uh the action of subsidiaries uh which are getting merged into the parent company. 54:08 54 minutes, 8 seconds No this is uh this is these are the subsidiaries which own uh tracks of land 54:16 54 minutes, 16 seconds in Kolkata. uh which has been on our books uh for a long time as we have been mentioning in our investor interaction. 54:26 54 minutes, 26 seconds We are now looking to leverage this land. To do that uh we are we have applied for necessary clearances and for 54:36 54 minutes, 36 seconds those clearances to go through amalgamation of this land is is required. That is why we have we are 54:43 54 minutes, 43 seconds merging these companies with the parent company. Sure. Thank you. Thank you. 54:53 54 minutes, 53 seconds Thank you. The next question is from the line of Samra Faler, an individual investor. Please go ahead. 55:01 55 minutes, 1 second Uh so thank you for the followup. So I just wanted to know when when do you expect the growth to be uh in mid 15 or 55:08 55 minutes, 8 seconds 20% growth annually from the current 10% growth. So from this year onwards or from the next FI27 you expect this growth to be much better sales growth. 55:20 55 minutes, 20 seconds So the sales growth or topline growth as I said between 15 to 20% it'll be there in uh we are extremely hopeful it'll be there in the next financial year. 55:31 55 minutes, 31 seconds Okay sir that's great. Thank you sir. Thank you. Thank you. 55:38 55 minutes, 38 seconds Ladies and gentlemen, we take that as the last question of the day. And now I would like to hand the conference over to the management for closing comments. 55:49 55 minutes, 49 seconds Thanks. Uh thank you everybody for joining in. Hopefully we've answered all your queries. If there is any more questions, feel free to reach out to Mr. 55:57 55 minutes, 57 seconds Sabir Singh, our CFO. Uh and hope to see you again in a few months time. Thank you. Bye. 56:07 56 minutes, 7 seconds On behalf of Ambit Capital Private Limited, that concludes this conference.