Ashoka Buildcon Limited — Q2 FY26

Ashoka Buildcon Ltd Q2 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=SIaZD1XnjKo Published: 6 months ago

0:03 3 seconds Ladies and gentlemen, good day and welcome to Ashoka Builcon Limited Q2 FI26 earning calls hosted by Mimmal Bank 0:11 11 seconds Equities Private Limited. As a reminder, all participant line will be in the listenon mode and there will be an opportunity for you to ask questions 0:19 19 seconds after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on 0:27 27 seconds your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Miss Joti Gupta. Thank you and over to you ma'am. 0:37 37 seconds Thank you Dan. 0:39 39 seconds Good evening everyone. On behalf of Nilbang Mr. I welcome you to the quarter 2 FI26 earnings of Ashoka Belilcon 0:47 47 seconds limited. The management of Ashoka Belilcon limited is Parik managing director and Mr. Paresa chief financial 0:55 55 seconds officer. Without further ado, I would now request Mr. Satish Parik sir to start with this with his opening comments after which we can open the 1:03 1 minute, 3 seconds floor for question answer. Thank you and over to you sir. Thank you Ji. 1:10 1 minute, 10 seconds Good afternoon everyone. 1:14 1 minute, 14 seconds I would like to welcome you all to the Q2 and H1 FR26 earnings conference call 1:21 1 minute, 21 seconds limited. Joining me on this call are our CFO Mr. Parish Mata and our investor relations partners from LGA. 1:32 1 minute, 32 seconds Thank you for taking the time out to join us today as we share our business and financial 1:40 1 minute, 40 seconds updates for the quarter and half year in the 30th September 2025. 1:50 1 minute, 50 seconds Let me begin with the industry overview. 1:53 1 minute, 53 seconds Execution in Q2 FR26 was somewhat muted due to extensive monsoon and intense competition. 2:01 2 minutes, 1 second Only 300 km was awarded while 1600 km were under construction. 2:08 2 minutes, 8 seconds But with robust pipeline and energy contractors, larger players with strong balance sheets are well positioned. 2:17 2 minutes, 17 seconds past collections which rose 15% in volume and 33% in value during July August 2025 2:25 2 minutes, 25 seconds further improving the monetization dynamics from a medium-term industry standpoint. 2:34 2 minutes, 34 seconds India infrastructure sector continues to gain momentum by strong policy support and long-term growth visibility. 2:44 2 minutes, 44 seconds The government has outlined a massive 11 lakh cr investment to expand India's highspeed road network 2:52 2 minutes, 52 seconds 5 by 20 kg adding nearly 17,000 km of access control expansions capable of 3:00 3 minutes speeds up to 120 km per hour. 3:05 3 minutes, 5 seconds As of March 2025 the national high school at 1.46 46 lakh kilometer 3:15 3 minutes, 15 seconds only out of which only 4,500 km meet expressway standards highlighting a significant expansion in the runway. 3:26 3 minutes, 26 seconds At the same time, the ministry of railway is also exploring hybrid energy model like structure to boost private 3:34 3 minutes, 34 seconds participation infrastructure while the higher ministry is revisiting it model 3:42 3 minutes, 42 seconds to make more viable through enhanced viability funding and entity based support. 3:50 3 minutes, 50 seconds The recent roll out of GST is also expected to have a farreaching positive impact on infrastructure and 3:57 3 minutes, 57 seconds construction ecosystem by rationalizing tax rates on key building materials such as cement bricks 4:04 4 minutes, 4 seconds and stones. The government will effectively lower construction cost by estimated 3.5 to 4%. 4:14 4 minutes, 14 seconds This move is expected to make housing and infrastructure modes more attractive and more economic. 4:20 4 minutes, 20 seconds The water quality of India has signaled its intent to extended our model to H2. 4:27 4 minutes, 27 seconds It has identified 134 projects coming 6,396 km with an estimated EPC cost of 2 lakh 4:37 4 minutes, 37 seconds cr and total capital cost of nearly 3.45 lakh crores. approximately 72% of these 4:44 4 minutes, 44 seconds expected under the harm model 18% viability and 10% via EPC 4:51 4 minutes, 51 seconds additionally has raised it asset monetization target to 40,000 crores in F26 4:58 4 minutes, 58 seconds up from 30,000 crores earlier following successfulization 5:07 5 minutes, 7 seconds of 28,7242 crores in the I'm sorry for that. 5:24 5 minutes, 24 seconds Coming to the company update. Excuse me. 5:36 5 minutes, 36 seconds As highlighted in our previous call, we continue to demonstrate strong execution capabilities and financial discipline across the project portfolio. 5:48 5 minutes, 48 seconds Continuing our diversification into regular electrification during Q2 to FR6 we secured two significant contracts from Northwestern. 5:59 5 minutes, 59 seconds One from Jaipur division worth 499.95 crores and another from Ajima division from 539.35 crores. 6:08 6 minutes, 8 seconds Both involve upgrading the electric traction system to 2 into 25 KV standard to enable high speed movement up to 160 6:18 6 minutes, 18 seconds km/ hour. These rans not only enhance our other visibility in the 6:26 6 minutes, 26 seconds but also validate the growing trust of public authorities in our technical expertise and execution record. 6:35 6 minutes, 35 seconds A portfolio management can be successfully completed by selling 6:43 6 minutes, 43 seconds consideration of 1146 cr to epic concessions to private limited infrastructure economic [clears throat] 6:52 6 minutes, 52 seconds India alternatives limited. This transaction reflects our continued focus on unlocking value 6:59 6 minutes, 59 seconds and stand on our balance sheet enabling us to reinvest in your growth opportunity. 7:05 7 minutes, 5 seconds During the quarter we also consolidated our presence in to space through strategic 7:13 7 minutes, 13 seconds acquisition of our subsidiary revised increase its state by 26% in Java to company limited to 61.167%. 7:23 7 minutes, 23 seconds For a consideration of 166.6 6 cr underscoring our confidence in the assets long-term cash flow potential. 7:34 7 minutes, 34 seconds Additionally, the company acquired convertible deentures worth 82 crores in a short consideration limited. 7:40 7 minutes, 40 seconds Coming to the order status, the company have received two new projects orders as discussed about from the end not 7:50 7 minutes, 50 seconds listing get project and not wasting a project. 7:56 7 minutes, 56 seconds As 30th September 2012 a balance sheet order book stand that a balance order book stand that INR 8:06 8 minutes, 6 seconds 14,88 crores which is excluding order received post 30th September 2025 of INR 468 8:15 8 minutes, 15 seconds crores and culture project of INR 279 crores cancelled by NMDA 8:23 8 minutes, 23 seconds the breakup of all as follows road projects comprise around 9,84 8:30 8 minutes, 30 seconds crores which is 65.8% 8% of the total order book among the road project order book projects are to the tune of 1.34 8:40 8 minutes, 40 seconds crores EPC projects are about 6816 crores railway is around 1154 crores 8:48 8 minutes, 48 seconds PNB accounts for around 4,633 crores which is approximately 31% of the 8:55 8 minutes, 55 seconds total balance of the book the total EPC bidding segment is at 462 crores which is 3.1% of the total order. 9:05 9 minutes, 5 seconds Our primary focus remains on maintaining a sustainable EPC business in segments of roads, highways, bridges, 9:14 9 minutes, 14 seconds smart transmission and as well as buildings. I would now request Mr. CFO to present the financial performance. 9:24 9 minutes, 24 seconds Thank you. Thank you sir. Good afternoon everybody. 9:32 9 minutes, 32 seconds Starting with the standalone numbers for Q2 FI26 total income stood at INR303 crores as 9:40 9 minutes, 40 seconds compared to INR459 crores in Q2 FI25 a deg. 9:47 9 minutes, 47 seconds AIA for the quarter stood at 160 crores flat yearon year with aa margin of 12.3%. 9:54 9 minutes, 54 seconds and improvement of 130 bits here on the profit before tax 10:04 10 minutes, 4 seconds before exceptional items to get in 57 crores. In QB FI26, the company sold its entire staking one hand subsidiary 10:13 10 minutes, 13 seconds u and recognized gain on sale of this investment as exceptional item. 10:18 10 minutes, 18 seconds Overall path stood at 139 crores against 36 crores over Q2 FI25 up by 284% yearon year. 10:27 10 minutes, 27 seconds Our revenue contribution for each segment for Q2 FI26 is as follows. 10:33 10 minutes, 33 seconds Road EPC contributed 54.9%. Road Ham contributed 11.8%. 10:40 10 minutes, 40 seconds Power P&D contributed 15.3%. Railway stood at 6%. 10:46 10 minutes, 46 seconds and other segments like building EP and others contributed to 12%. 10:52 10 minutes, 52 seconds For half year FI26 total income for for half year stood at 10:59 10 minutes, 59 seconds INR 2642 crores as compared to INR 3360 crores in HY FI25 a decrease growth of 21%. 11:08 11 minutes, 8 seconds A bit for H1 FI26 to 311 crores up 2% yearon year with a bit margin of 11.8%. 11:15 11 minutes, 15 seconds 8%. And increment of around 2.70% year on year profit before tax before exceptional 11:24 11 minutes, 24 seconds items stood at 101 crores and tax stood at 170 crores as compared to INR 77 11:30 11 minutes, 30 seconds crores in F21 FI25 up by 120% yearon year. 11:37 11 minutes, 37 seconds Coming to the consolidate results, total income of Q2 FI26 stood at INR 1,98 crores as compared to INR 2529 crores in 11:46 11 minutes, 46 seconds Q2 FI25 with a peak growth of 35%. 11:52 11 minutes, 52 seconds EITA for the quarter stood at 642 crores down 32% year in year with EITA margins of 33.6%. 12:01 12 minutes, 1 second profit before tax before exception items to that I in 284 crores in Q FI26 the company and ACL sold three 12:09 12 minutes, 9 seconds uh their entire stakes in five subsidiary and the resulting deficit versus the carrying value was recognized as 12:17 12 minutes, 17 seconds exception loss patch stood at 91 crores during Q2 FI26 okay consolidated debt as on 30th 12:26 12 minutes, 26 seconds September 2025 stood at 4910 crores The standard on that is at INR 1,362 12:33 12 minutes, 33 seconds crores which comprises of 83 crores of equipment finance, 300 crores of NCD and 978 crores of working capital loans. 12:42 12 minutes, 42 seconds In Q2 FI26 in our B division the company recorded a gross total total collection 12:49 12 minutes, 49 seconds of 357 crores as against 316 crores in Q2 FI25 recording a growth of 13% yearon 12:56 12 minutes, 56 seconds year. With this we now open the floor for question and answers. Thank you. 13:19 13 minutes, 19 seconds Hello. Hello. Yes sir. Please go ahead. 13:24 13 minutes, 24 seconds Yes. Yes. I'm done. So I open for question and answer. So you can sure participants to line their questions. 13:31 13 minutes, 31 seconds Sure. Thank you so much sir. Ladies and gentlemen, we'll now open for the question and answer session. Anyone who 13:39 13 minutes, 39 seconds wishes to ask a question may press star and one on their touchstone telephone. 13:52 13 minutes, 52 seconds Our first question come from the line of Thrisharati from Inam Securities. Please go ahead. 14:02 14 minutes, 2 seconds Hello. Hello. Am I audible? Yes. Yes. 14:09 14 minutes, 9 seconds Okay. Okay. So, I have couple of questions. So my first question is what is the latest status on the proposal of 14:17 14 minutes, 17 seconds the five b subsidiaries infrastructure and what timeline should be assume should be 14:26 14 minutes, 26 seconds assumed for the compet complication comp competition completion. 14:32 14 minutes, 32 seconds So for the uh five projects we expect to uh conclude the transition uh by 30th November. 14:41 14 minutes, 41 seconds Okay. Okay. Um my second question is with the multiple asset transfer completed uh how should we think about 14:49 14 minutes, 49 seconds the long-term portfolio mix does the company remain focused on ETC or 14:56 14 minutes, 56 seconds or is the continued in interest in HM and B assets selectively? 15:04 15 minutes, 4 seconds So EPC continues to be our uh forte as a business uh and we derive EPC from our 15:11 15 minutes, 11 seconds ham and beauty purchase also in consequences to the EPC businesses or parl to the EPC business as opportunity 15:19 15 minutes, 19 seconds is available. We will uh continue to build for ham and B projects as and when opportunities arise and um uh continue 15:29 15 minutes, 29 seconds the development of assets along with uh major drive on EPC including other sectors. 15:36 15 minutes, 36 seconds Okay. Thank you sir and all the others. 15:41 15 minutes, 41 seconds Thank you. Our next question come from the line of Dr. Amita from the homeopathic clinic. Please go ahead. 15:49 15 minutes, 49 seconds Good afternoon management. Uh my question is regarding uh this there was this uh article on 29th of October 15:56 15 minutes, 56 seconds uploaded by the company regarding this SSL resolution plan approved for 80 crores uh uh M& approval pending some 16:05 16 minutes, 5 seconds land uh acquisition or something. Can can you just brief us about that? I have some idea about it but I wanted to know some complete detail. 16:16 16 minutes, 16 seconds So uh um u as we have communicated in the past our uh subsidiaries including 16:24 16 minutes, 24 seconds Vadiva highways and other SPVS uh uh hold land uh out of the surpluses arrived from their beauty projects. So 16:32 16 minutes, 32 seconds one of the lands was taken up for uh JDA development with one of the partners through uh the SSL company right SAT 16:42 16 minutes, 42 seconds land development company. This project was taken up along with another partner who was the working partner. Uh as uh uh 16:51 16 minutes, 51 seconds which was way back in 2017 18. Um during the course the uh the project could not go as uh enriched and it went into NCLT. 17:02 17 minutes, 2 seconds uh postn um in order to uh salvage the uh the land and to ensure that the land 17:09 17 minutes, 9 seconds u uh revenues are protected uh uh uh the company uh has bid for this 17:17 17 minutes, 17 seconds uh project through its subsidiary Ashokaways and u has given an offer to settle settle uh the loan for this project from 17:27 17 minutes, 27 seconds LIC housing for 81 crores and uh in the due course in the next 3 to four years the company will repay the loan of LIC 17:35 17 minutes, 35 seconds and complete the project uh in its uh uh optimum timelines. 17:41 17 minutes, 41 seconds Okay. And what is that project sir? What would uh is it a building or what is it? 17:47 17 minutes, 47 seconds It's a real estate. It's a real estate project in project right sir near Pune I suppose. No this is near Nasik. This is at NASA. 17:57 17 minutes, 57 seconds Aa and last year we sold a land to Infosys or someone uh I don't Microsoft Microsoft that was around in Pune now 18:05 18 minutes, 5 seconds around Pune right right that was in Pune we had a land bank which we sold 16 acres to Microsoft 18:12 18 minutes, 12 seconds okay so we still have some land bank in Pune also yeah we do have we do have land bank in Pune and Nasik uh in our uh two three 18:22 18 minutes, 22 seconds SPVS Ashakants and uh as an opportunity comes we'll keep on monetizing uh these. 18:32 18 minutes, 32 seconds Okay. Thank you. So if you can just let me know if what what is the book value of that land bank either I can mention 18:39 18 minutes, 39 seconds the books or the current book value is current value of the proper land. 18:44 18 minutes, 44 seconds Uh maybe can come back uh uh separately on this. 18:48 18 minutes, 48 seconds Okay no problem. Answer uh there's another question. We have this 1826 close on consolidated cash. So how did 18:55 18 minutes, 55 seconds we arrive at this uh in this quarter and how we plan to use it in future this 1826 crores? 19:04 19 minutes, 4 seconds So this 1826 crores is largely uh cash lying at our various beauty projects and 19:12 19 minutes, 12 seconds substantial cash lying at Ashoka Bitcoin on the in the event of the monetization 19:18 19 minutes, 18 seconds of the five ham projects. So out of this almost 900 crores of cash lying at Ushagon's 19:26 19 minutes, 26 seconds uh uh bank balance it was utilized for procuring u the CCDs of uh mercury which 19:34 19 minutes, 34 seconds we have said of approximately 882 crores uh which was [clears throat] which was post 30th September. So largely this money was utilized for buying the CCDs 19:43 19 minutes, 43 seconds of ACL by Ashuka Bilka. When the other five UD projects also culminate, we will buy the balance stake of around 650 19:50 19 minutes, 50 seconds crores from uh Makuri and uh given 100% equity to Makuri from ACL. 19:58 19 minutes, 58 seconds So still another 650 cr is to be paid to makuri. Yes. Yes. 20:02 20 minutes, 2 seconds And we have still 900 crores on the balance sheet even after this 18 out of this 1800 crores. But that is largely on uh beauty projects and hand projects 20:11 20 minutes, 11 seconds which are uh very project specific. So generally not uh yeah it's not free cash to be used. 20:18 20 minutes, 18 seconds Yeah. Yeah. They are generally project based cash. 20:22 20 minutes, 22 seconds Any L1 bricks for uh Ali at any place L1? 20:27 20 minutes, 27 seconds Currently we have project. Yes please. 20:35 20 minutes, 35 seconds We currently know one bits. Yes sir. So I did get that. Sorry sir. 20:44 20 minutes, 44 seconds So we are not in one in any of the bit. There are not open. Okay. 20:50 20 minutes, 50 seconds And if if I can just ask one more question if it's possible. So our traffic management system revenues have started. 21:00 21 minutes No not yet started. These are in survey mode. survey and finalization of the locations. 21:07 21 minutes, 7 seconds Okay, I have some more question but I'll join the queue again. Thank you. 21:11 21 minutes, 11 seconds Okay, thank you. 21:16 21 minutes, 16 seconds Our next question come from the line of web from GM Financial. Please go ahead. 21:23 21 minutes, 23 seconds Yeah, we have seen a sharp decline in terms of uh revenue uh in the first half. uh so how do you see the growth in 21:31 21 minutes, 31 seconds the second half and the guidance for the entire year both for revenue and margins? 21:39 21 minutes, 39 seconds So largely the uh revenue for H1 uh see has seen a decline. 21:47 21 minutes, 47 seconds uh couple of major reasons of uh quite a long elongated monsoon for u for the 6 21:56 21 minutes, 56 seconds months uh continuing in October also may have an small impact on uh Q3 also and 22:04 22 minutes, 4 seconds uh in certain projects the there is some delay in land acquisition for projects largely in Maharashtra area. So um 22:12 22 minutes, 12 seconds looking forward we believe that um based on uh these uh constraints as well as uh 22:19 22 minutes, 19 seconds new projects being bid out slightly on a slower mode though we expect uh in the second half there could be good bidding 22:25 22 minutes, 25 seconds and receipt of orders. We expect to u uh close this year with the same turnover 22:33 22 minutes, 33 seconds as last year on the EPC. 22:39 22 minutes, 39 seconds But even for that the required rate in the second half is around 18 19 odd percent. 22:44 22 minutes, 44 seconds Revenue so that will be achieved because generally second half is a uh high turnover and uh the projects which have taken off will give a lot of turnover in 22:53 22 minutes, 53 seconds H2 and uh one of our MSR project was canled. So is there a risk to other packages as well? 23:05 23 minutes, 5 seconds No. So apart from take up so this project particularly underwent lot of change of scope which 23:14 23 minutes, 14 seconds was almost equal to the tune of the project cost and hence MSDC has gone into uh rebuilding of this project. 23:24 23 minutes, 24 seconds So there is no risk for any other project particular this project but DPR they are not as per the site conditions 23:33 23 minutes, 33 seconds and hence they have gone for the complete rebuild right other project has started or this is uh getting 23:40 23 minutes, 40 seconds other projects in other projects almost started is moving very well and uh also 23:47 23 minutes, 47 seconds started uh and will start now because they have uh forest clearances Bangor's 23:54 23 minutes, 54 seconds experience is under process. So by December the project should start and when do they expect to receive the 24:01 24 minutes, 1 second appointed for the H project the Buscara one 24:08 24 minutes, 8 seconds that we would now recent target is December but this December also if they're not 24:15 24 minutes, 15 seconds able to achieve uh landship it will be to March. 24:21 24 minutes, 21 seconds So land on that project will be 30%. uh it has to go to 80% plus so you're content of it going to 80 at 24:30 24 minutes, 30 seconds least by uh there is a very aggressive separate team put on the ground by mi for acquisition 24:39 24 minutes, 39 seconds so they are very much hopeful they should be able to complete the decision by okay sir on the order side it has been 24:47 24 minutes, 47 seconds on a softer side for the first half so how do you say it moving second half and the guidance for the entire Yeah. 24:55 24 minutes, 55 seconds So, we still hope we'll be able to back 67,000 C in 64,000 up. 25:08 25 minutes, 8 seconds Yes. Add to what we have. So, this year we add around 3,000 crores plus 67,000 crores is what we 25:17 25 minutes, 17 seconds Okay. Sir in the cash flow statement uh there is a receivable advances return of 7 odd crores and credit loss of 19 and a 25:25 25 minutes, 25 seconds half crores. So what is this regarding to so these are largely regarding to 25:32 25 minutes, 32 seconds projects which have been foreclosed so there's some income on that side and uh ECL provision made on uh receivables 25:40 25 minutes, 40 seconds from our uh uh getters which were recognized in this year at this quarter. So they were reversed. 25:48 25 minutes, 48 seconds Okay. So any more uh uh impairments or losses they experienced in the second half. So ECL is a general feature of the 25:57 25 minutes, 57 seconds accounting practice. Uh datas which are uh slightly dated like 6 months and above there is some provisioning done and whenever the money is received 26:05 26 minutes, 5 seconds because these are monies received from either SPVS of ABL or from government the moment they receive that the VC provisions get reversed. 26:17 26 minutes, 17 seconds Okay. Lastly are there any slow moving pros in the order book? 26:25 26 minutes, 25 seconds any slowmoving projects in the order back. 26:29 26 minutes, 29 seconds So as I explain you know Maharashtra 26:32 26 minutes, 32 seconds [clears throat] 26:33 26 minutes, 33 seconds two of the projects are yet suffering from forest and language clearances. So once they get cleared then they will be 26:40 26 minutes, 40 seconds fast moving projects till then we are not able to do any activities on those projects. So which are those projects I 26:47 26 minutes, 47 seconds miss the name? These these are Maharashtra projects. Okay. 26:56 26 minutes, 56 seconds The the Palyan Murbad one and Palan Murbad is going on well. Kalan Mad is going on well Jagard and Pulch. 27:09 27 minutes, 9 seconds Ja. Okay. And Kundalika is going on well. Kundalika is about to start now. 27:18 27 minutes, 18 seconds Okay. 27:20 27 minutes, 20 seconds Okay. Thank you, sir. Those are my questions. Thank you. 27:30 27 minutes, 30 seconds Our next question come from the line of Pankage Agaral, an individual investor. Please go ahead. 27:36 27 minutes, 36 seconds Hi. Uh good afternoon. Uh I would like to know uh is this delay in the project education because of monsoon etc. Is 27:45 27 minutes, 45 seconds this going to uh impact our cash flow realization uh in H2? Will it get shifted? And second thing, there were 27:53 27 minutes, 53 seconds few projects that were withdrawn in uh uh Q2, state and others. So, so are there uh are the remaining projects for 28:01 28 minutes, 1 second H2 on uh time or are there more surprises or premature withdrawal of the projects because our more reliance is our reliance mostly lies on revenue. 28:16 28 minutes, 16 seconds So one project of 278 cr was withdrawn which is agreed because it under major 28:23 28 minutes, 23 seconds change of scope. Other projects are intact and some of them have already at uh very uh they have started and done 28:32 28 minutes, 32 seconds very well like bank code and kam board and others. Two projects are stepped up for mangro and forest care which we are 28:40 28 minutes, 40 seconds likely to start uh this quarter [clears throat] and we will be able to start this projects. So there is no 28:49 28 minutes, 49 seconds other projects which is going to get cancelled or dominated. 28:54 28 minutes, 54 seconds Okay. And how are we placed on the cash realization target for sweat by margin? 29:03 29 minutes, 3 seconds It will not largely impact cash flows the way it is moving now it will slightly improve by margin but will move on the same pattern. 29:13 29 minutes, 13 seconds Okay. And just to get further clarity are these projects which are ongoing uh which are about to be completed or uh 29:20 29 minutes, 20 seconds are the revenue realization on the basis of completion of the credit or uh part payment based upon the uh phased uh delivery of the credit. 29:31 29 minutes, 31 seconds There's a PM uh method uh percentage of completion uh way of accounting. 29:40 29 minutes, 40 seconds So, so do we expect 60 70% of the completion? 29:46 29 minutes, 46 seconds You can ask I didn't know that uh 60 70% off 29:53 29 minutes, 53 seconds of this project value as what I mean cash targeting that uh suppose 30:02 30 minutes, 2 seconds even if uh uh the project execution delays suppose uh we we delay our cash realization. So, so approximately what 30:11 30 minutes, 11 seconds percentage we are expecting to come by uh April let's say by March or year end generally if there is a delay in uh 30:19 30 minutes, 19 seconds implementation of of the project the expenditure also is get postponed so from a recognization recognition purpose 30:26 30 minutes, 26 seconds it is based on expenditure incurred revenue recognized and largely revenue recognized get converted into cash from 30:33 30 minutes, 33 seconds client in a in a span of say 45 to 90 days time In the power it is in road it is 45 days. 30:44 30 minutes, 44 seconds Okay. Sure. And thanks for announcing. Thank you sir. 30:52 30 minutes, 52 seconds Our next question comes from the line of Raj Mata from MR advisor. Please go ahead. 30:58 30 minutes, 58 seconds Hi sir. Thanks for the opportunity. Am I on? Yeah. Yes. 31:03 31 minutes, 3 seconds Yeah. So sir I have two questions. Uh first is has the company seen an improvement in tender activity in Q3 especially with the MXI planned acceleration of awards to S2. 31:17 31 minutes, 17 seconds We have building more than 80,000 K project lined up now for which dates have been declared. 31:26 31 minutes, 26 seconds Okay. 31:26 31 minutes, 26 seconds And there are other projects in the pipeline. So every month they come out with new set of budgets 31:34 31 minutes, 34 seconds and definitely they're aggressive in building as well as awarding uh in H2. 31:42 31 minutes, 42 seconds Okay, got it. Got it. Thank I have one more question. Uh the net debt levels and interest cost have uh increased in 31:49 31 minutes, 49 seconds this quarter. Can you please uh guide me on the key drivers and do you expect any deleveraging by the end of 26? 31:59 31 minutes, 59 seconds Definitely uh we there's a substantial deleveraging happening um in this uh H2 uh after realization of the monetization 32:07 32 minutes, 7 seconds proceeds of uh the B projects and interest cost would go will be reduced. 32:16 32 minutes, 16 seconds Okay. Got it. Got it. That's all. That's all. Thank you so much. 32:23 32 minutes, 23 seconds Thank you. Our next question comes from the line of Wasid from Noama Wealth Management Limited. Please go ahead. 32:30 32 minutes, 30 seconds Yeah, thank you for the opportunity. U can you give us what is the bid pipeline across all the segments for second half that we're targeting. 32:42 32 minutes, 42 seconds So as I explained we targeting around 6 to 7,000 crores across the sectors. We are building roads, railways, power, solar projects, buildings. 32:55 32 minutes, 55 seconds So all across building activities in full swing and we expect to realize the like year we should add another 6 to 7,000 to current. 33:07 33 minutes, 7 seconds Okay. Sure. Sure. And uh what would their pending equity requirements for the hand projects like pending to be infused 33:16 33 minutes, 16 seconds approximately? Um so on the equity requirement on the uh latest project bi 33:22 33 minutes, 22 seconds is approximately 225 crores. Uh and uh on the balance projects which are yet to 33:29 33 minutes, 29 seconds be closed that is uh tumushimoga for u the 33:36 33 minutes, 36 seconds uh kanapur project approximately 100 odd crores is to be uh invested. 33:42 33 minutes, 42 seconds Okay. So total 325 crores of spending to be infused and uh can you help me with the breakup like how much are we 33:50 33 minutes, 50 seconds expecting to infuse in H2 and FI 27 and 28? 33:55 33 minutes, 55 seconds So in H H2 approximately 200 odd crores and balance being 26 27 27 28. 34:04 34 minutes, 4 seconds Okay. Uh and sir so now that we've monetized these five assets so when do we expect to close uh the deal for remaining assets? 34:15 34 minutes, 15 seconds So we have monetized five of the Han project out of 11 Han projects. We expect to monetize um four of the assets 34:24 34 minutes, 24 seconds by March end and two of the assets by June 26 end. Okay. 34:32 34 minutes, 32 seconds June and what would be the rough valuation if we can share that? 34:36 34 minutes, 36 seconds Approximately approximately uh 800 and 300 800 by March and 300 by uh June. 34:47 34 minutes, 47 seconds Okay. Okay. uh s and sir uh what is the kicks that we've done in the second quarter and how much are we targeting for the full year? 34:56 34 minutes, 56 seconds So approximately uh we have by in H1 uh we have spent approximately 35 crores of 35:04 35 minutes, 4 seconds which uh 10 crores was in uh Haled2 uh and we expect to spend approximately 35:12 35 minutes, 12 seconds 100 crores by the year end totally. Okay. Okay. Got it. And uh so 35:22 35 minutes, 22 seconds sir uh after these monetizations once these are completed so by your end where do we expect our uh you know debt levels to be. 35:33 35 minutes, 33 seconds So by the year end we expect our debt levels to be as good as at zero level. 35:38 35 minutes, 38 seconds Uh because uh though there will be certain uh u outstanding instruments 35:46 35 minutes, 46 seconds which will continue approximately 425 crores which will get liquidated in April. Uh but that will be that will be 35:54 35 minutes, 54 seconds supported by uh cash balances in the balance of ABS. So we'll have to uh uh 36:01 36 minutes, 1 second we probably will see a substantial reduction in the uh working standalone debt of ABL. 36:10 36 minutes, 10 seconds Okay. Uh and so this year that we'll be seeing flattish uh revenue. So next year 36:17 36 minutes, 17 seconds then can we expect about 10 to 15% growth? 36:21 36 minutes, 21 seconds Yeah, that is the target. Of course, this is based on all that will happen in next uh 6 months. 36:28 36 minutes, 28 seconds Okay. And what kind of AIDA margins then we are looking at for this year and next year? In the range of 10 to 11%. 36:39 36 minutes, 39 seconds To 11. Sure. That's it from me. Thank you. Thank you. 36:48 36 minutes, 48 seconds Our next question come from the line of Sundep Des partners. Please go ahead. 36:55 36 minutes, 55 seconds Thank you. Um out of these uh thous, 111 sorry 1100 crores of assets assets sold. 37:04 37 minutes, 4 seconds Um so these second what number are excluding the those seven those five assets I'll be including this 37:14 37 minutes, 14 seconds uh sorry could not hear you probably it could be clear. Yeah, sure. You the the notes to the account say that these five 37:22 37 minutes, 22 seconds ham assets were transferred on 29th September. So does the does the second quarter number include those five assets or exclude the five assets on the P&L? 37:35 37 minutes, 35 seconds No. No. So what happens is in the P&L and the console in the console level the revenues up to 29th September that is almost for the quarter is captured. 37:47 37 minutes, 47 seconds Okay. 37:48 37 minutes, 48 seconds And as on 30th September, it is reversed to exit the project uh project from the console balance sheet. 37:55 37 minutes, 55 seconds Right. So if I understand that correctly, the PNM has the has those five hand assets, but the balance sheet does not. Correct. 38:02 38 minutes, 2 seconds Right. You're right. 38:04 38 minutes, 4 seconds Okay. Sir one request I've made uh unfortunately [clears throat] your investment um investment relations investor relations advisor hasn't been 38:13 38 minutes, 13 seconds able to help is to get some kind of a perform of how a short building bond will look after all these assets are off 38:22 38 minutes, 22 seconds because uh you know over the next 6 to 12 months there's going to be a lot of change in the P&L and 38:29 38 minutes, 29 seconds um so a large part of that for example next quarter a large part of that drop in revenues can be explained because of 38:36 38 minutes, 36 seconds his five H assets being going off the books. 38:40 38 minutes, 40 seconds So may I request that if you can sort of put in your presentation of proforma of how P&L and balance sheet will look 38:48 38 minutes, 48 seconds excluding these assets which are contracted to be sold. 38:52 38 minutes, 52 seconds So we will try to work along with our IR guide to give whatever information you require the way you want to present it from your internal consumption. 39:02 39 minutes, 2 seconds Thank you sir. I would appreciate that. Thank you. 39:07 39 minutes, 7 seconds Thank you. Our next question comes from the line of Havin Modi from Anandraati Wealth Management. Please go ahead. 39:15 39 minutes, 15 seconds Hi sir, thank you for the opportunity. 39:17 39 minutes, 17 seconds In the last call, you mentioned that you know we'll be receiving around 1,800 crores uh from the B and 700 K will be the contingent consideration. 39:27 39 minutes, 27 seconds So uh so is uh is the you know is the monetization in the line like uh and uh like there are no change in the profit amount right? 39:36 39 minutes, 36 seconds Yes approximately 1 1770 odd crores will be probably by 25th 30th of November and 39:43 39 minutes, 43 seconds balance around may not be 700 maybe slightly lesser due to various changes in uh HR calculus. It typically could be around 500 coursees which will come 39:52 39 minutes, 52 seconds maybe after 1 year or 2 years based on extension of time given by NHI for our uh toll extension uh claims with uh NHI. 40:04 40 minutes, 4 seconds And second with respect to the you know Ham it was mentioned that 600 will be 600 C will be reserved by March 26 and 500 by June 26. 40:13 40 minutes, 13 seconds So are the timeline and the numbers intact in respect of the 10%? 40:17 40 minutes, 17 seconds Yeah. So as I communicated some time back probably we'll have 800 odd crores before March one we may probably sell 40:25 40 minutes, 25 seconds four assets by March and two assets by June so 800 plus 300 what the number could look like 40:33 40 minutes, 33 seconds and sir with respect to the monetization of you know five assets uh we reduce the process of 1146 cr but there were some 40:42 40 minutes, 42 seconds contingent consideration which was you know kept as a whole bag so what is the amount Have you received that amount? 40:49 40 minutes, 49 seconds So that is approximately 96 crores which will be received over the next uh two two and a half months for certain compliances which we have to do so as to 40:58 40 minutes, 58 seconds uh be eligible for that those amounts. 41:04 41 minutes, 4 seconds Okay sir. Got it. So in uh last two uh last two questions with respect to the bookkeeping visa. Uh so sir in the 41:11 41 minutes, 11 seconds presentation uh you have mentioned that the ACL 4 method the pro profit is profit is 435 cr so is this profits are 41:20 41 minutes, 20 seconds in the books in the standalone books of ACL can I interpret in that way? Yeah. Yeah. You're right. You're right. 41:27 41 minutes, 27 seconds Yeah. And second, second question is with respect to the taxation in the console books. So it is showing a negative taxation. So how should I interpret that? 41:38 41 minutes, 38 seconds So this this is uh deferred tax reversal uh for this probably it can come offline also on this but 41:49 41 minutes, 49 seconds so what's happening is uh when we are accounting at STV level there is carrying value difference now carrying value as we have shown in the balance 41:57 41 minutes, 57 seconds sheet there is a loss of 210 cr which you are accounting in the consult based on that there's a deferred tax asset 42:05 42 minutes, 5 seconds reversal which is uh uh uh reach from there. 42:17 42 minutes, 17 seconds So is it that we have already you know recognized the profit uh and now since there's a loss so you know we are already you know rec you know with the 42:25 42 minutes, 25 seconds higher profit we already recognized a higher taxation you know in the previous years now because of you know showing us the loss uh we are reversing the 42:33 42 minutes, 33 seconds taxation is that the way to interpret exactly the provisioning accounting entries are that way got it got it sir 42:40 42 minutes, 40 seconds thanks thanks a Thank you. 42:49 42 minutes, 49 seconds Our next question comes from the line of Dr. Amit Mora the homeopathic clinic. 42:54 42 minutes, 54 seconds Please thank you for this again chant. Uh my question is regarding uh there are two questions. First is regarding the future 43:01 43 minutes, 1 second outlook for the industry and our company for next one or two years and uh are we looking out for any high margin areas 43:08 43 minutes, 8 seconds apart from our existing like water, irrigation, solar or any other high margin or I mean any other areas. 43:18 43 minutes, 18 seconds So outlook I given in my opening call. 43:21 43 minutes, 21 seconds We have a strong outlook in infrastructure all across national highway MR8 as well as various states 43:29 43 minutes, 29 seconds are coming up with their programs. It's all for highways, state 43:36 43 minutes, 36 seconds highways and also sectors like railways, water buildings everything is showing up good 43:44 43 minutes, 44 seconds number of uh opportunities. So is next decade or so is going to be really good 43:54 43 minutes, 54 seconds sector to work in. We are not looking at any new sector other than what we are presently working at. 44:02 44 minutes, 2 seconds Okay. Okay. And sir any any uh outlook about Java when are you trying to monetize on this? 44:14 44 minutes, 14 seconds Yeah already you can update it. 44:16 44 minutes, 16 seconds Yeah. Yeah. Yeah. So u on Java we as we have communicated we now 44:23 44 minutes, 23 seconds own economic interest of 100% of the project we are seeking certain approvals from the authority for 44:32 44 minutes, 32 seconds allowing us to transfer some 26% which is in process. Uh we believe it will take some time. So maybe 26 27 is 44:40 44 minutes, 40 seconds something which you will try to look at for uh monetizing that assets. 44:45 44 minutes, 45 seconds Okay. Otherwise the project continues to perform very well with a good revenue in terms of what in terms of sorry uh 44:53 44 minutes, 53 seconds this uh revenue revenue to collection yeah collection and hardly any debt there's a hardly 45:00 45 minutes debt of around 30 odd crores which you will get paid off in this year and uh for the second half we see 45:09 45 minutes, 9 seconds margins of around 10 to 11% on the 6 to 7,000 cr extra that we are planning to get in H2 Yeah, around 10 to 10 and a half%. 45:19 45 minutes, 19 seconds Thank you so much, sir. Thank you. 45:27 45 minutes, 27 seconds Thank you. Our next question comes from the line of web from GM Financial. Please go ahead. 45:34 45 minutes, 34 seconds Thanks for the followup. So, I wanted some clarity on the overall gross inflow and net inflow from the monetization. So 45:42 45 minutes, 42 seconds from the five D assets what will be the gross amount that will be received approximately gross amount would be 45:48 45 minutes, 48 seconds around 2300 odd crores and from the the timeline for the same how much how 45:56 45 minutes, 56 seconds much 27 approximately as I said 17 50 plus crores uh by November right and 46:05 46 minutes, 5 seconds uh the balance could probably uh get in 26 27 or 27 28 Okay, it will all depend 46:12 46 minutes, 12 seconds on uh how LHI gives us the approvals for extension of time for uh concession period. 46:21 46 minutes, 21 seconds So when the balance amount is stuck the around 550. 46:27 46 minutes, 27 seconds So that is see that is the these are extension of project uh period for claims made by the company the SPVS uh 46:35 46 minutes, 35 seconds to NHI which is as per consision agreement. there are certain interpretation uh disconnects which is 46:42 46 minutes, 42 seconds getting sorted out which is more of an industry uh subject. So once that that is sorted out u these uh extensions will 46:50 46 minutes, 50 seconds be granted and then once that grant letter is there we can claim our uh amount from uh uh 46:59 46 minutes, 59 seconds but 750 crash should come in by November end. This should be approximately 5 500 47:05 47 minutes, 5 seconds odd crores based on whatever uh uh uh approvals which we believe are going to 47:13 47 minutes, 13 seconds find. So we expect this amount to be around 500 odd crores not 700 odd crores no 750 cr should be received by November 47:21 47 minutes, 21 seconds end or cash would come in at a later date. 47:24 47 minutes, 24 seconds No no 1750 will come by November end cash. 47:28 47 minutes, 28 seconds Okay. Okay. And for the five what was the gross amount we received? 1150 47:34 47 minutes, 34 seconds 1150 and out of that uh the entire amount we have received in second quarter or something is remaining. So 47:43 47 minutes, 43 seconds 1,50 crores has been received in second quarter 100 around 96 crores is outstanding subject to certain 47:51 47 minutes, 51 seconds compliances from our side which will be done in the next couple of months and by January we should get those money also 47:58 47 minutes, 58 seconds the target is that okay and then for the four the four hams and two hams you mentioned 800 and 300 k 48:06 48 minutes, 6 seconds so that is the gross amount so entire would be received uh or there is some holdback in as well. 48:13 48 minutes, 13 seconds So that will be holdbacks are generally for 2 to 3 months. So uh that is only for certain compliances, 48:20 48 minutes, 20 seconds audit uh certain uh balance permissions to be done from other agencies 48:27 48 minutes, 27 seconds uh tax clearances and that I mean so it's more of a routine uh uh compliances which can which will be get got done and uh 100% amount will come through. 48:40 48 minutes, 40 seconds So 650 cr balance of SJ Mquiri that shall be paid off in November itself. As soon as we get the receipt within 8 days time they will be paid off. 48:52 48 minutes, 52 seconds Okay. Then secondly uh we have seen uh quite some rise in terms of working capital in the second quarter in the first half. So how do you see it going? 49:04 49 minutes, 4 seconds um largely will remain uh in the same way except for power where we expect the uh 49:12 49 minutes, 12 seconds working capital release of working capital from our uh employers. So by March and we we should see some 49:20 49 minutes, 20 seconds improvement to the working capital uh number of days. 49:28 49 minutes, 28 seconds Okay. And lastly on what would be our order backlog for the NCGM sever treatment plant 49:42 49 minutes, 42 seconds one second I'll just come back. Yeah sure. 50:17 50 minutes, 17 seconds What's wrong? 50:22 50 minutes, 22 seconds Management team uh need some time. I'll just come back to you on this. Okay, those are my questions. Thank you. 50:31 50 minutes, 31 seconds No problem. 50:35 50 minutes, 35 seconds Thank you. Our next question come from the line of Basia from Noama Wealth Management Limited. Please go ahead. Um just to uh just to give close that answer and also to close NCG. 50:51 50 minutes, 51 seconds Hello. Hello. 50:53 50 minutes, 53 seconds So that participant has uh left the queue. Okay. No problem. Yeah. Thank you. 50:59 50 minutes, 59 seconds Yeah. Um sir just an update on the Chennai project. Uh where are we in terms of monetization for this project? 51:08 51 minutes, 8 seconds So we are uh uh discussing uh with a potential investor and uh he's in the 51:14 51 minutes, 14 seconds process of uh due diligence. Um uh we uh we expect to close out as early as 51:23 51 minutes, 23 seconds possible by March. We should be able to sign something with them. That's the target. Uh but decisions are on. 51:31 51 minutes, 31 seconds Okay. Sure sir. That's it from me sir. 51:37 51 minutes, 37 seconds Thank you. That was the last question for today. I now hand the conference over to uh Miss Joti Gupta. Thank you and over to you ma'am. 51:52 51 minutes, 52 seconds Over to you uh Miss Joti Gupta. 51:58 51 minutes, 58 seconds Yeah. So from the management side, uh I would like to thank everyone for being part of this call. Uh we hope we have 52:05 52 minutes, 5 seconds given whatever possible uh answers you wanted to understand. If you need any other further information, please feel 52:11 52 minutes, 11 seconds free to contact Mr. Denu from HA, our investor relationship advisors or myself. Thank you. Thank you. 52:21 52 minutes, 21 seconds Thank you so much. On behalf of Neville Bank Equities Private Limited, that concludes this conference. Thank you for joining us and even our disconnect your lines. 52:31 52 minutes, 31 seconds Okay. Thank you. Thank you.