Capacit'e Infraprojects Limited — Q3 FY26

Capacite Infraprojects Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=0QBF7_PqBYQ Published: 3 months ago

0:01 1 second Good morning ladies and gentlemen and welcome to the Capesite Infra projects limited Q3 and 9month FY26 conference call. 0:10 10 seconds As a reminder, all participant lines will be in the listen on emote and there will be an opportunity for you to ask questions after the presentation concludes. 0:20 20 seconds Should you need assistance during this 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. 0:33 33 seconds Before we begin, a brief disclaimer. The presentation which capes aside in projects limited has uploaded on the stock exchange and their website 0:42 42 seconds including the discussion during this call contains or may contain certain forward-looking statements concerning 0:50 50 seconds capacide infra projects limited business prospects and profitability which are subject to several risk and 0:56 56 seconds uncertainties and the actual result could materially differ from those in such forward-looking statements. 1:04 1 minute, 4 seconds I now hand the conference over to Mr. 1:06 1 minute, 6 seconds Rohit Katyal, executive chairman, Capesite Infra Projects Limited. Thank you and over to you sir. 1:14 1 minute, 14 seconds Good morning everyone. On behalf of capacity infra projects, I extend a warm welcome to all participants on our Q3 1:22 1 minute, 22 seconds and 9th month FI26 earnings conference call. 1:27 1 minute, 27 seconds Joining me today are Mr. Rajesh Da CFO, Mr. Alok Meotra and Mr. Nishit Pujari and our investor relations team from Marathon Capital. 1:37 1 minute, 37 seconds I trust you had a chance to review our results. The presentation and press release have been uploaded on the stock exchanges and are also available on our company's website. 1:49 1 minute, 49 seconds FYI 2025 marked up new performance benchmark for our company, delivering record growth across key operational and 1:56 1 minute, 56 seconds financial metrics and reinforcing our track record of consistent performance. 2:02 2 minutes, 2 seconds Building on this strong foundation, the momentum has continued into Q3 FY26 with the company reporting its highest 2:10 2 minutes, 10 seconds ever quarterly revenue reflecting another quarter of steady and disciplined growth. 2:16 2 minutes, 16 seconds Project execution progressed well across regions, demonstrating operational resilience despite extended monsoon 2:24 2 minutes, 24 seconds conditions and temporary delays arising from municipal elections in the MMR region and regulatory related interruptions in the NCR region. 2:34 2 minutes, 34 seconds Execution momentum has since normalized and strengthened and we expect to further accelerate execution in Q4 FI26. 2:45 2 minutes, 45 seconds On the order front, year-to- date bookings have reached 3909 crores already exceeding our year guidance of 2:52 2 minutes, 52 seconds rupees 3,500 crores. supported by a strong pipeline of quality bids. We remain confident of further expanding 3:01 3 minutes, 1 second this order book in the remainder period of FI26. 3:05 3 minutes, 5 seconds The quality of orders secured reflects the continued trust of our clients and our deepening technical and execution capabilities. 3:13 3 minutes, 13 seconds This coupled with full tie up of our working capital limits provides clear headroom to boost execution in the coming year. This strengthens our 3:21 3 minutes, 21 seconds capacity to deliver on growth plans and drive stronger performance ahead. 3:27 3 minutes, 27 seconds The company is now firmly positioned in an accelerated growth cycle anchored by a diversified order book, strong 3:34 3 minutes, 34 seconds financial strength, and a proven delivery track record. With consistent execution and operational discipline 3:41 3 minutes, 41 seconds demonstrated across multiple quarters, we are well placed to create sustained long-term value and set new performance 3:48 3 minutes, 48 seconds benchmarks in the period arrived in the period ahead. 3:53 3 minutes, 53 seconds Over the last two years, the company has been able to reduce its interest rates from its bankers from 12.5% peranom to 4:01 4 minutes, 1 second 10.25% for fund based limits. Similarly, the non-fund based limits, the commissions have also seen moderation from an 4:10 4 minutes, 10 seconds average 2.5% to 1.3%. 4:14 4 minutes, 14 seconds The latest sanction from the lead bank of consortium sees a fundbased limit interest rate at 4:22 4 minutes, 22 seconds 9.65% peranom and further reduction in non-fundbased limits. 4:29 4 minutes, 29 seconds Further, the company believes that the other consortium members will match the pricing of the lead 4:35 4 minutes, 35 seconds member of the consortium and the result of such reduction will be fully visible in the finance cost for FI27. 4:44 4 minutes, 44 seconds I now turn to the consolidated performance highlights for Q3 FI26. 4:49 4 minutes, 49 seconds Total income for Q3 FI26 stood at 681 crores up by 13% as compared to 601 crores in Q3 FY25. 5:00 5 minutes IITA for Q3 F26 stood at 108 crores up by 20% to 90 crores in Q3 FI25. 5:09 5 minutes, 9 seconds IITA margin for Q3 FI26 stood at 16% as compared to 15.3% in Q3 F25. 5:18 5 minutes, 18 seconds IBIT for Q3 FY26 stood at 90 crores up by 19% as compared to 76 crores in Q3 FY25. 5:28 5 minutes, 28 seconds IIT margin for Q3 FI26 stood at 13.3%. 5:33 5 minutes, 33 seconds PAT for Q3 F26 came in at 50 crores as compared to 52 crores in Q3 FI25. Pat margin for the period stood at 7.4%. 5:45 5 minutes, 45 seconds Consolidated performance highlights for 9 month FI26. 5:53 5 minutes, 53 seconds Total income for 9 month FI26 stood at 1930 crores as compared to 172 crores 6:00 6 minutes for the corresponding 9-month period FI25. 6:03 6 minutes, 3 seconds EITA for 9 month FI26 stood at 318 crores up by 8% as compared to 294 crores in 9 month FI25. 6:14 6 minutes, 14 seconds ITA margins for 9 month FI26 stood at 16.6% within our guided range. IIT for 9 month 6:22 6 minutes, 22 seconds FI26 stood at 265 crores up by 7% as compared to 248 crores in 9 month FI25. 6:31 6 minutes, 31 seconds AIT margin for 9 month FI26 stood at 13.7%. 6:38 6 minutes, 38 seconds P for 9 month FI26 stood at 149 crores. 6:42 6 minutes, 42 seconds Back margin for 9 month FI26 stood at 7.7%. 6:48 6 minutes, 48 seconds Gross debt to equity stood at.25x while net debt to equity at.12x. 6:56 6 minutes, 56 seconds Net assets turnover of core assets stood at 5.5x on annualized basis for the first 9 months FI26 versus 5.2x for FI25. 7:08 7 minutes, 8 seconds The company will continue its focus on increasing execution across projects which will further improve the utilization of its core assets. Order 7:16 7 minutes, 16 seconds book stood at 13,188 crores as on 31st December 2025. Public sector accounts 7:24 7 minutes, 24 seconds were 61% while private sector accounts for 39% of the total order book. I now leave the floor open for questions. 7:32 7 minutes, 32 seconds Thank you. 7:37 7 minutes, 37 seconds Thank you very much. We will now begin the question and answer session. 7:42 7 minutes, 42 seconds Anyone who wishes to ask a question may press star and one on the touchstone telephone. 7:49 7 minutes, 49 seconds If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. 7:59 7 minutes, 59 seconds Ladies and gentlemen, we will wait for a moment while the question cue symbols. 8:09 8 minutes, 9 seconds We have the first question from the line of Tbakar Rana from Prudent Equity. Please go ahead. 8:16 8 minutes, 16 seconds Uh good morning sir. Uh so my first question is on the MA projects. Uh so how many towers have we delivered in first 9 month of this financial year? 8:31 8 minutes, 31 seconds Hello. 8:33 8 minutes, 33 seconds Yeah. Good morning. Uh during the full financial year FYI26, we are supposed to deliver eight towers 8:41 8 minutes, 41 seconds of cluster 1. One tower has 278 tenementss. So five uh eight towers will have corresponding number of uh 8:49 8 minutes, 49 seconds tenementss. Out of these three towers have been already inaugurated by the client and the remaining five towers 8:58 8 minutes, 58 seconds will be inaugurated over the next two months. 9:02 9 minutes, 2 seconds Okay sir. Okay. And sir uh for the last financial uh last financial year what was the tower delivery for last financial year 2025? 9:12 9 minutes, 12 seconds There was no delivery in the financial year 24 or 25 because the actual work on ground started only in 23. 9:21 9 minutes, 21 seconds So it takes 33 to 36 months clear from the date of clear handover from the client to deliver one tower as per the contract conditions. 9:32 9 minutes, 32 seconds Okay. Okay. So sir in last uh financial year we reported around 40 and a half cr from JV profits and this this year it is 9:40 9 minutes, 40 seconds only 4.68 crores. So uh how much uh will you realize in Q4 of this financial 9:47 9 minutes, 47 seconds year? So I had clarified uh in Q3 of FI25 that that was the first quarter in which 9:56 9 minutes, 56 seconds the JV company uh recognized its profits and therefore uh when it crossed the 10% 10:04 10 minutes, 4 seconds revenue threshold it recognized 14.67 crores uh which was our share and therefore it was recognized. Thereafter 10:13 10 minutes, 13 seconds consistently we have been declaring an uh profit of close to 1.7 to2 crores on a quarter basis for the 9 month period 10:21 10 minutes, 21 seconds it stands at 4.73 quarter 4 we'll see a similar number for a quarter however from next financial 10:30 10 minutes, 30 seconds year on the basis of expanded revenue the profit addition from the JV to the limit of uh the share of capacity will go up. 10:41 10 minutes, 41 seconds Okay. Okay sir. Thank you. And sir uh uh uh there was some old receivable of over 200 K. So how much we have uh recovered 10:49 10 minutes, 49 seconds and what what will be the recovery ahead? 10:54 10 minutes, 54 seconds So you're talking about the long old outstanding 200 crores recovery. Correct. Correct. Correct. 11:00 11 minutes Yeah. We have uh we had committed uh internally to recover close to 50 crores in the current financial year. The 11:07 11 minutes, 7 seconds recovery of 38 crores as on date not as the end of quarter has has happened and the remaining 12 crores will happen 11:14 11 minutes, 14 seconds before March. Uh we don't see any slippage on that. 11:20 11 minutes, 20 seconds Okay. Okay sir. Uh 15 crores. Okay. And sir uh uh I would like to correct excuse 11:28 11 minutes, 28 seconds me not 150 50. Okay. Okay. Okay. And so uh what will be the revenue guidance for uh this year and FI27? 11:39 11 minutes, 39 seconds We have already given the guidance. We are well on track to do that. And uh let's keep something for surprises. Uh next financial year on a expanded uh 11:48 11 minutes, 48 seconds order book basis. Uh we definitely need to grow at 18 to 20% uh as per the commitments to our client. uh over the 11:57 11 minutes, 57 seconds past 2 years we have been doing that quite well and we hope to uh do that over the next 2 three years as well. 12:05 12 minutes, 5 seconds So uh uh can you achieve 20% growth this financial year? 12:10 12 minutes, 10 seconds You see that uh it will depend on how much revenue will come from the JV companies. At the moment uh the revenue in Q3 fell short from the JV companies. 12:21 12 minutes, 21 seconds However, we are very confident that we may be able to get better revenues from the JB companies in quarter 4 to achieve that. 12:29 12 minutes, 29 seconds Okay. One last question on the labor courses. So, uh do you see any uh exceptional uh uh loss or provisioning uh in the next financial year or in Q4? 12:41 12 minutes, 41 seconds Uh so uh uh this is applicable for basic salaries below 50%. In our case 95% and 12:50 12 minutes, 50 seconds more have basic salaries above 50% up to 60%. Uh the auditors have analyze the 12:57 12 minutes, 57 seconds total impact as 40 lak rupees which has been provided for in the current quarter financials and as such uh I do not see 13:05 13 minutes, 5 seconds any major impact coming over the next financial year if any. 13:11 13 minutes, 11 seconds Okay. Okay. Thank you. 13:17 13 minutes, 17 seconds Thank you. We have the next question from the line of Vasuvave from Duama Wealth. Please go ahead. 13:24 13 minutes, 24 seconds Yeah, thank you for the opportunity. Um, so sir, um, in Mahada, what is the quarterly revenue run rate that we are 13:31 13 minutes, 31 seconds working at right now at the GV level and now how do we plan to increase it going ahead? 13:39 13 minutes, 39 seconds Uh so uh the revenue is increase is directly proportional to the work fronts made available by the client as on today 13:47 13 minutes, 47 seconds as I speak to you six work on 16 towers is going on of which uh three towers or two towers have already been delivered 13:55 13 minutes, 55 seconds three I guess I'm sorry all right and uh within the quarter the client has committed to provide a total of 20 rehab 14:05 14 minutes, 5 seconds towers uh uh to work uh simultaneously or concurrently on similarly work on three 14:14 14 minutes, 14 seconds super high-rise sale residential towers the piling work is in full flow at the project site given this and the 14:21 14 minutes, 21 seconds associate infra works we are confident that at the JV level next financial year 14:28 14 minutes, 28 seconds that revenue should be between 60 to 70 crores per month uh however unfortunately 14:35 14 minutes, 35 seconds uh we are not getting any part of that revenue we will definitely recognize the profit. Okay. On standalone basis we do 14:43 14 minutes, 43 seconds believe that our run rate will be in excess of 18 to 20 crores uh uh plus uh 14:51 14 minutes, 51 seconds escalation there on uh per month for the next financial year. 14:58 14 minutes, 58 seconds Yeah. So that was helpful. And no on the JV level what would be our unexecutable order book right now for the MA project? 15:07 15 minutes, 7 seconds uh at the JV level adding uh the price increase plus the additional area plus the increase in height of sale 15:15 15 minutes, 15 seconds residential towers and increase in area of the sale commercial tower the revised uh order book should be in excess of 15:23 15 minutes, 23 seconds 15,000 cr at the TCC that is a JV company level sure sir and uh can you just give some 15:31 15 minutes, 31 seconds update on our progress on the sidico signature global andCC projects 15:38 15 minutes, 38 seconds Sitico uh is well on track. We have uh averaged uhund and about 45 crores of 15:45 15 minutes, 45 seconds revenue in the last uh uh quarter on a month-to-month basis average monthly basis. We expect the momentum to 15:54 15 minutes, 54 seconds increase in quarter four and uh we should be able to do a minimum 60 cr per 16:02 16 minutes, 2 seconds month revenue including escalation or thereabouts over the uh next financial year on an average monthly basis. 16:15 16 minutes, 15 seconds Yes sir. And uh uh on signature and NBCC uh any update on that? Yeah, NBCC we 16:22 16 minutes, 22 seconds have built close to 150 crores on certified basis. Uh we are uh this is uh 16:30 16 minutes, 30 seconds uh excluding GST. The contract value is 1120 crores. So therefore we have crossed the threshold limit of 10%. 16:39 16 minutes, 39 seconds That's number one. Uh number two uh we will have a run rate of 16 to 17 crores 16:47 16 minutes, 47 seconds uh till the time the full financial tie up from the client is received. Suitable extension uh is proposed and the client 16:55 16 minutes, 55 seconds will give us that since we are covered by the price variation clause. There will be no material impact on the company. However, we will have to 17:04 17 minutes, 4 seconds sacrifice some turnover to maintain financial discipline and prudence. 17:09 17 minutes, 9 seconds Number one, two, Signature Global uh is grossing close to 20 crores per month. 17:15 17 minutes, 15 seconds Uh we have yet to be handed over phase 2. Uh the work is expected to start in phase on phase 2 in March, one month 17:24 17 minutes, 24 seconds from now. And if that happens, you should be able to see a 30 K top of type of revenue per month generated from 17:32 17 minutes, 32 seconds Signature Global over the whole of the next financial year. 17:38 17 minutes, 38 seconds Got it, sir. That was helpful. Thank you. That's it from my side. 17:44 17 minutes, 44 seconds Thank you. We have the next question from the line of Deepak Podar from Sappire Capital. Please go ahead. Yeah, I'm audible sir. 17:52 17 minutes, 52 seconds Yes, please go ahead. 17:53 17 minutes, 53 seconds Yeah, thank you very much sir for this opportunity. So just first of wanted to understand on the um I mean the 18:01 18 minutes, 1 second execution that we uh uh that u we executed uh uh in the in the third quarter. So, so, so it was mainly 18:09 18 minutes, 9 seconds because of the municipal uh election and the delays arising out of that because and also because of NCR region or also 18:16 18 minutes, 16 seconds labor uh labor issue was also one of the uh reason uh so labor issue is a consistent 18:23 18 minutes, 23 seconds permanent feature obviously all the contractors of our size would like to have 10 15% additional labor so we cannot put that as excuse and whatever 18:32 18 minutes, 32 seconds uh com commitments are given internally and to investors are based cons taken 18:39 18 minutes, 39 seconds given after that consideration. However, what is not in our hands is the disruptions due to elections whether in 18:47 18 minutes, 47 seconds Maharashtra, whether in other states and due to environmental issues. The NGT has been very prominent. We have lost nearly 18:56 18 minutes, 56 seconds one month or so in uh uh Noida and Gurang and that is a very substantial 19:03 19 minutes, 3 seconds number. However, we will have to take that into consideration for the next financial year. So, uh let me put it 19:11 19 minutes, 11 seconds this way. Uh in India, a company construction company at the moment given all the restrictions uh works for 10 19:18 19 minutes, 18 seconds months. 2 months are lost because of NGT issues uh uh uh some sort of elections 19:25 19 minutes, 25 seconds where the people migrant labor workmen would go back to their villages or to hometowns to cast their votes. uh uh so 19:34 19 minutes, 34 seconds on and so forth. Uh monsoon extended monsoons is another very important reason and the extended monsoons not 19:41 19 minutes, 41 seconds imply to only Maharashtra. Now uh we have seen last year how erratic the monsoons were in Delhi and NCR region as well. Hope that answers your question. 19:51 19 minutes, 51 seconds Correct. Correct. And and is it possible to quantify what what would be the revenue lost because of all this reason? 19:56 19 minutes, 56 seconds So if we have lost one month we have lost 100 crores. 20:00 20 minutes Okay. Okay. So around Yes sir. What were you saying? At least. 20:06 20 minutes, 6 seconds Okay. 100 crores. So, so you also mentioned that uh uh since uh the execution momentum since has been normalized, right? So, so what what 20:14 20 minutes, 14 seconds would be current monthly run rate we would be doing at in terms of I mean Jan if you can throw some more light on that. I mean 20:23 20 minutes, 23 seconds I can only tell you that we will have a record quarterly turnover this quarter as well. Please do not ask me daily 20:31 20 minutes, 31 seconds turnover. this becomes very difficult but yes I can tell you we will have a record quarterly revenue for Q4 FI26 as 20:38 20 minutes, 38 seconds well correct correct correct I mean the reason I was trying to understand because to maintain a 20 uh 1820% growth 20:48 20 minutes, 48 seconds for this year as well uh you would need around 8 850 kind of a execution 850 900 kind of execution in the in the in the 20:56 20 minutes, 56 seconds fourth quarter so so just trying to get a sense on that yeah so We expect uh to get certain revenues 21:03 21 minutes, 3 seconds from our uh JV companies. Our people accounts team is working with our auditors on how we can recognize that. 21:12 21 minutes, 12 seconds And if you're able to do that, uh you have your number. 21:17 21 minutes, 17 seconds Uh if you are not able to do that, profit will not change. Profit will remain what it has what has been 21:25 21 minutes, 25 seconds committed. But the revenue revenue number will therefore then be lower by the amount of revenue which we cannot recognize uh from the uh TCC. 21:36 21 minutes, 36 seconds Okay. Okay. And and how much revenue you are expecting from JV uh this quarter? 21:41 21 minutes, 41 seconds 75 crores around around 75 crores. Okay. 21:44 21 minutes, 44 seconds Understood. And um can you throw some correct? 21:47 21 minutes, 47 seconds I would like to correct additional 75 crores. Okay. Because we are getting the entire revenues from Mallay Maldives. We 21:54 21 minutes, 54 seconds are getting the entire whatever revenues of our portion from the national's highspeed rail. However, what we are missing is heavy revenues being 22:03 22 minutes, 3 seconds recognized at TCC level which capacity so far is unable to book. 22:10 22 minutes, 10 seconds Okay, understood. Yeah, fair point. And then just one last thing from my side um on the pipeline uh you mentioned we we 22:18 22 minutes, 18 seconds do have a very healthy bit pipeline. Uh so can you um can you quantify what would be the bit pipeline for us and and 22:25 22 minutes, 25 seconds what sort of conversion we are looking at? 22:27 22 minutes, 27 seconds Uh so uh as you are aware that we have a very strong order book uh which provides uh visibility for over the next three 22:35 22 minutes, 35 seconds three and a half four years. Uh our focus at the moment is central government uh EPC projects uh whether it 22:43 22 minutes, 43 seconds is for CPWD uh your company is qualified. Uh similarly we are looking at certain projects in sitco. We have already 22:52 22 minutes, 52 seconds submitted our bids. The bids are yet to be opened. Uh uh similarly we have a big 23:00 23 minutes opportunity which we see in the deposit works of NBCC uh funded by central government uh uh ministries. 23:10 23 minutes, 10 seconds uh like uh this uh just to name like auditoriums uh we have uh high-end uh housing for 23:19 23 minutes, 19 seconds senior is uh officers or for the elected members of the parliament so on and so forth. So there are many projects uh if 23:28 23 minutes, 28 seconds you total up will go in thousands of crores. Our company at the moment uh has identified projects worth about 14,000 23:35 23 minutes, 35 seconds crores which will be focused on and obviously we do not need to do anything silly to shore up our order book. Uh we have already crossed our full year 23:44 23 minutes, 44 seconds guidance but we do believe that over the next 45 days we will definitely increase our order book by another 500 to,000 23:51 23 minutes, 51 seconds crores 500 to,000 crores incremental orders. We we do expect I mean that that would I 23:59 23 minutes, 59 seconds mean that would be much higher than what we had guided earlier. writing in terms of order inflow guidance rate. 24:03 24 minutes, 3 seconds Our order inflow targets worth 3500. It stands at 3909 uh uh crores that does not include uh uh 24:14 24 minutes, 14 seconds the increase uh of contract values of situ and mara due to price variation escalation and uh therefore the current 24:22 24 minutes, 22 seconds year target if we achieve another 1,000 crores will be close to 5,000 cr which would be about 35% over the target which we had given you all uh in April. 24:34 24 minutes, 34 seconds Yeah. Absolutely. Absolutely. I am that's great sir. I mean um that would be it from my side. Wish you all the very best. Thank you so much. 24:41 24 minutes, 41 seconds Thank you very much. 24:45 24 minutes, 45 seconds Thank you. We have the next question from the line of Dhanja Mishra from Sidi Securities. Please go ahead. 24:54 24 minutes, 54 seconds Yeah thank you sir. Uh uh congress on resilient performance. Uh so sir what is the outstanding order book position uh 25:01 25 minutes, 1 second from sitco uh as of as on December 31st. 25:08 25 minutes, 8 seconds Okay. Yeah. Second please. 25:12 25 minutes, 12 seconds So uh the outstanding uh order book position in totality is uh 3,000 25:21 25 minutes, 21 seconds 770 crores out of which 2500 cr is attributed to the location number 7 25:28 25 minutes, 28 seconds which has been promised to be delivered uh uh given to us in quarter 1 of the next financial year and by balance 1200 25:36 25 minutes, 36 seconds crores is of the first six locations against which we have given you the revenue guidance. 25:42 25 minutes, 42 seconds If if location 7 come is handed over in quarter 1, the revenue guidance will change accordingly upwards. 25:50 25 minutes, 50 seconds So this is after the variation you said like we have we will have to add the variation because it gets uh added in the cost as well. 26:02 26 minutes, 2 seconds So excluding location 7 what is the order book uh balance uh what we told 60 26:08 26 minutes, 8 seconds uh monthly we will do in Q4 1200 crores outstanding. Yeah. 26:16 26 minutes, 16 seconds And secondly uh apart from opportunity uh opportunity in the real estate segment uh do you also see uh 26:24 26 minutes, 24 seconds opportunity in data center because like lo have uh now uh uh uh to enter into data center and we have worked with 26:32 26 minutes, 32 seconds them. So do you see as a contender to bid data center projects if uh going to start? 26:42 26 minutes, 42 seconds We have delivered 11 data centers uh to the department of telecommunication for the Indian defense over the last two 26:50 26 minutes, 50 seconds years. Two further of Udampur and Kolkata are pending to be delivered which will happen by March or April uh 26:58 26 minutes, 58 seconds of the uh current calendar year and therefore we do believe that we are qualified. We just lost a,000 cr bid on 27:05 27 minutes, 5 seconds on commercial pricing. uh but I told you the company does not intend to uh uh 27:13 27 minutes, 13 seconds have any negative impact on its uh bottom line. Uh so if uh we get projects 27:20 27 minutes, 20 seconds at our fair pricing we will definitely take them whether it's in the commercial space, retail space, residential, 27:27 27 minutes, 27 seconds institutional, healthcare or data and we are bidding bidding with a 27:34 27 minutes, 34 seconds similar kind of margin 15 16% uh uh when we are bidding for data center or margin or little bit higher. 27:42 27 minutes, 42 seconds No no no similar margin the margins are not very high. uh it is not design build. design build will only happen in government as and when government 27:50 27 minutes, 50 seconds decides to have their own major uh data centers data center mega data centers 27:57 27 minutes, 57 seconds whether it's uh Google whether it is uh meta whether it is uh reliance uh they 28:04 28 minutes, 4 seconds all are on item rate it is not uh it is not design build so when the design is 28:11 28 minutes, 11 seconds out of our scope then you cannot think of making those 17 18% margins Only when design is in your scope and 28:20 28 minutes, 20 seconds when you do the value engineering does the margin which uh we have been discussing about realize otherwise the 28:27 28 minutes, 27 seconds whole industry including unlisted players would be at would be at 18%. That cannot be generalized. 28:36 28 minutes, 36 seconds And uh lastly on this uh working capital limit we have 1390 cr. So what is the break of the wake up between fund based and non-f fund based and what is the 28:45 28 minutes, 45 seconds utilization as a as uh I will request you to kindly uh send a mail to our investor relations. They will promptly send you the entire 28:54 28 minutes, 54 seconds details because this would uh be a very long answer. 1390 cr is in the consortium. Apart from that we have 29:01 29 minutes, 1 second project specific bank guarantee limits for sitco and for uh uh maha bdd 29:08 29 minutes, 8 seconds project. All right. So uh 1390 uh crores is in the consortium limits tie up which 29:15 29 minutes, 15 seconds we just mentioned the breakup uh if you just drop in a small mail it will be shared with you. 29:30 29 minutes, 30 seconds Thank you ladies and gentlemen. In order to ensure that the management will be able to address all the questions from the participants, we request you to 29:39 29 minutes, 39 seconds kindly limit your questions to two per participant. If you have a follow-up question, please rejoin the queue again. 29:48 29 minutes, 48 seconds We will take the next question from the line of Rajesh Kumar Rati from Right Shopping Private Limited. Please go ahead. 29:56 29 minutes, 56 seconds Yeah. Hi, my questions are regarding the new labor laws. uh industry sources have told me that implementation of this law 30:05 30 minutes, 5 seconds can increase the contract labor cost by 8 to 12%. 30:11 30 minutes, 11 seconds Uh because of the PF and ESI etc. Uh do you concur with that view? 30:19 30 minutes, 19 seconds Uh no, not at the moment in time because uh 50% of our subcontractors have their own PF number already and they are already compliant with the labor laws. 30:30 30 minutes, 30 seconds The direct cost of our own personnel has been uh examined by our auditors internal and external and that is pegged 30:38 30 minutes, 38 seconds at 40 lakhs. So which is practically negligible. Coming back to contract labor, we have a policy those who do not 30:46 30 minutes, 46 seconds have a uh provident fund registration, the company recovers 4.5% towards uh 30:53 30 minutes, 53 seconds administration cost and payment of PF uh on the basic bill of the contractor. 31:01 31 minutes, 1 second This is for those who do not have it. 31:03 31 minutes, 3 seconds Now the exercise is going on what exact impact that would be and if that increases by half a person, one person 31:10 31 minutes, 10 seconds it will be charged. As far as the sale pricing is concerned, it is a dynamics of the availability that already is very 31:18 31 minutes, 18 seconds low and we are already paying a serious premium on what used to be paid to labor contractors let's say 3 years ago. So I 31:28 31 minutes, 28 seconds don't see that labor code anyways will impact that. What will impact is the quality of the labor uh of the uh labor 31:37 31 minutes, 37 seconds contractor. Number one. Number two uh uh uh and uh the quality and efficiency 31:44 31 minutes, 44 seconds which they work at. So any labor contractor who is efficient will definitely command a higher price. It's got nothing to do with labor code. 31:54 31 minutes, 54 seconds Okay. So you don't expect any dent on the margin in which way you call this? We do not. 32:02 32 minutes, 2 seconds Okay. and uh will it cause some kind of production slowdown disruption because of regularization of everything regarding the contract labor? 32:13 32 minutes, 13 seconds No, the point is everyone including us are on ERP platforms and we have a very 32:19 32 minutes, 19 seconds robust HR platform as well. So the point is whatever change has to be done that will be done over up till 31st of March in the CTC. 32:30 32 minutes, 30 seconds All right. and the new new CTC breakdowns will be given as guided by the new new labor code. That's all. As 32:38 32 minutes, 38 seconds far as the labor is concerned under various labor contractors, they do not have a break up of CTC is basically 32:46 32 minutes, 46 seconds basic salary uh uh DA allowance and other allowance that's all. So we don't see anything major. Further uh the 32:55 32 minutes, 55 seconds minimum uh wages on on which PF is applicable is 15,000 rupees now which has increased to 33:04 33 minutes, 4 seconds 20,000 but the date has yet to be notified. So assuming that that would go to 20,000 the compliance on quantum 33:13 33 minutes, 13 seconds basis will increase but that again will be done by the software and not by human intervention. So we do not see any 33:21 33 minutes, 21 seconds disruption as such happening because of the new labor code. 33:26 33 minutes, 26 seconds Okay, that's all from a side. Thank you so much. 33:34 33 minutes, 34 seconds Thank you. We will take the next question from the line of Anik from CRQ Kotari Samsung stock broken. Please go ahead. 33:44 33 minutes, 44 seconds Hello. 33:47 33 minutes, 47 seconds Yes, please. Thank you for the opportunity sir. My question is uh around uh receivables and current 33:55 33 minutes, 55 seconds uh capital assets turnover. So if you look at uh the ratio which is currently close to 1x which implies our 34:02 34 minutes, 2 seconds significant portion is tied up. So over the next coming quarters what is the management target for this ratio and for FY27? 34:11 34 minutes, 11 seconds See the dattors stand at close to 980 crores if I'm not wrong on a annualized basis from where you got 1x I'm not 34:19 34 minutes, 19 seconds aware uh raind receivable plus contract assets ah so the entire contract assets stand 34:28 34 minutes, 28 seconds at 1,900 crores and uh if you compare that with the annualized turnover of even 2700 crores you will see a 34:37 34 minutes, 37 seconds reduction year on year as a percentage of contract cont assets to the top line. 34:43 34 minutes, 43 seconds Now if you take any a uh a A-rated company, they have contract assets of 34:49 34 minutes, 49 seconds 76% to the revenue. We are currently at maybe 85 day 85% and we are sure that we 34:59 34 minutes, 59 seconds will reach that 80% mark by Q4 of the current financial year itself. So the 35:06 35 minutes, 6 seconds company plans as I told in the last quarter conference call also that over the next eight quarters out of which one 35:14 35 minutes, 14 seconds quarter is already completed which means uh September of 27 we would like this figure to be at 56% of the top line. 35:24 35 minutes, 24 seconds Okay. Thank you for the clarity. And additionally can you give some clarity on the typical convergence cycle? How many months does it take for the 35:33 35 minutes, 33 seconds contract assets to convert to the receivables and then to cash? 35:38 35 minutes, 38 seconds Absolutely. But that's a very long answer. Request you to drop a small mail to Mr. Anoral of Marathon Capital and he will immediately answer that. 35:48 35 minutes, 48 seconds And my second question is regarding bookkeeping questions. Uh what what would be the FY27 margin guidance along with working capital days? 35:57 35 minutes, 57 seconds FI FYI 27 So FI27 guidance we are committed to our 36:04 36 minutes, 4 seconds clients uh to deliver close to uh uh 18% uh increase in revenue. So let us 36:12 36 minutes, 12 seconds maintain at that uh level at the moment in time though internally it would be higher. Uh second the working capital uh 36:20 36 minutes, 20 seconds days as on uh uh uh quarter ended 3925 36:27 36 minutes, 27 seconds was 164 days. All right excluding retention it handovers between 165 to 36:35 36 minutes, 35 seconds 170 currently but we do see a reduction by March by a few days. However, we would like to see this again at the 36:43 36 minutes, 43 seconds historic 90 days level over the next 2 to 2 and 1/2 years and we are working behind that. 36:50 36 minutes, 50 seconds Okay. And about the margin sir sir we have already guided for 16 1/2 to 36:57 36 minutes, 57 seconds 17 and a half uh for a construction company it's never to be monitored on a quarterly basis for the full year. This 37:05 37 minutes, 5 seconds guidel guidance is there for the current financial year will continue for the next financial year. 37:11 37 minutes, 11 seconds Okay. And my last last question about uh borrowings what what kind of uh the total level of borrowings can we expect in FY27 sir? 37:22 37 minutes, 22 seconds Uh we will be at the current levels uh because uh and uh we see a repayment of 37:30 37 minutes, 30 seconds close to 70 kores in the next financial year. All right. So on uh a net debt equity basis we definitely will see we'll see meaningful reduction. 37:41 37 minutes, 41 seconds Okay. Thank you sir. Thank you for addressing the question. 37:47 37 minutes, 47 seconds Thank you. We have the next question from the line of Rajes Jan from RK Capital. Please go ahead. 37:55 37 minutes, 55 seconds Yeah. Hi uh thanks for the opportunity. 37:57 37 minutes, 57 seconds Uh sir I wanted to understand about the management's ability to scale up revenue while keeping the costs in control. So 38:05 38 minutes, 5 seconds so will there be any significant operating leverage at all? So for example you for financial year 27 you have guided for revenue growth of 18%. 38:14 38 minutes, 14 seconds Will the pad growth be similar 18 to 20% or the pad growth can be to the extent of 22 to 23%. 38:22 38 minutes, 22 seconds So if you see the PAT increase over the last two years has been on the basis of increase in revenue keeping the indirect 38:31 38 minutes, 31 seconds cost fixed cost at a lower level and therefore the percentage of fixit cost has reduced in proportion to the top 38:41 38 minutes, 41 seconds line resulting in 100 basis points of margin expansion. All right. So we keep 38:48 38 minutes, 48 seconds the guidance at the same level. If we are able to do better, uh we'll be very happy for the company and all its shareholders. 38:58 38 minutes, 58 seconds Okay. So, so by and large there is no operating leverage. Uh or or maybe there could be some positive surprise uh but 39:04 39 minutes, 4 seconds uh I mean uh uh at this moment we cannot say a confirmed operating leverage uh playing out. Right. 39:12 39 minutes, 12 seconds See the operating leverage playing out has already been seen by you all. So let us keep some things for uh the 39:21 39 minutes, 21 seconds management to give positive surprises as well. Okay. Understood. 39:26 39 minutes, 26 seconds And so uh on the signature global project uh I believe they were facing some reduced bookings in some of their ongoing projects. So will it impact the 39:35 39 minutes, 35 seconds ramping up of the project awarded to your company? 39:38 39 minutes, 38 seconds Uh I am not aware of that. uh our payments are on track. Uh they have released all the advances. They have 39:46 39 minutes, 46 seconds released the advances for uh the homework as well. So I don't see uh any 39:53 39 minutes, 53 seconds impact as on date uh while they continue to what we have been informed by the client that our project is sold out. 40:03 40 minutes, 3 seconds Okay. 40:05 40 minutes, 5 seconds Okay. And the last question is uh what are your typical payable days for your supplier? 40:12 40 minutes, 12 seconds So the total uh creditors without provisioning I repeat without provisioning because creditors uh levels 40:21 40 minutes, 21 seconds including a include a provisional figure of 242 crores. If you reduce that the total creditor level for goods would 40:30 40 minutes, 30 seconds stand at 440 crores. And if you uh divide that by a revenue of 2600 also 40:38 40 minutes, 38 seconds you will get a 45 days credittor level average. Okay. uh provisions are those figures for which expenses will be 40:47 40 minutes, 47 seconds booked over the next let's say five to six seven quarters for the LSTK projects which we are executing so that there are 40:55 40 minutes, 55 seconds no surprises on the profitability of the company going at that particular quarter going down let's say four quarters or 41:02 41 minutes, 2 seconds five quarters from now uh on the services part our liability would stand at about 60 to 70 crores on absolute 41:11 41 minutes, 11 seconds basis This does not uh account for the 50 60 crores of advances given to 41:18 41 minutes, 18 seconds vendors for supply of steel and concrete cement etc. 41:25 41 minutes, 25 seconds Okay sir and last question is on the uh other income so you have a uh so I believe you know there is a note that 41:33 41 minutes, 33 seconds you are carrying some uh uh receivables as 54 + 11 cr I think there's some note by the auditor there. So once all those 41:41 41 minutes, 41 seconds receivables are are realized by you then what is the normal steady state trajectory of other income we can expect uh on a full year basis. 41:51 41 minutes, 51 seconds See uh we have 175 crores of fixed deposit. So at a average interest rate 41:58 41 minutes, 58 seconds of 5 and a half 6% you can calculate what the other income would be. 42:03 42 minutes, 3 seconds uh uh whatever assets have been capitalized that will be appearing under capital gains what if the company is 42:11 42 minutes, 11 seconds making profitability. Now coming to your question of the qualification which continues over the last five quarters. 42:19 42 minutes, 19 seconds If you see the number from 68 crores has fallen to 54 crores. 42:24 42 minutes, 24 seconds All right. We expect that over the next eight quarters this entire money will be realized because we are holding assets 42:33 42 minutes, 33 seconds of close to 90 crores against these receivables which are at various forums. 42:41 42 minutes, 41 seconds Uh out of this 25 cr worth of assets are in Bangalore. Uh we have just won the 42:48 42 minutes, 48 seconds Krera matter whereby the honorable NCT Karnataka RA has sorry not NCT 42:58 42 minutes, 58 seconds Karnataka RA has instructed the developer uh to register and hand over the 43:05 43 minutes, 5 seconds property within 60 days. So this order was delivered on 9th of January and we do hope that sense will prevail on the 43:14 43 minutes, 14 seconds airing developer and within the first quarter the company will realize this 25 crores. So uh the what I used to say 43:23 43 minutes, 23 seconds about four or five years ago that the no commercial interest of the company will be 43:30 43 minutes, 30 seconds compromised with uh it is now getting reflected by collection of nearly 50 crores in the current financial year and 43:39 43 minutes, 39 seconds which will continue in the next financial year by another recovery of 50 crores and then the subsequent year. So 43:46 43 minutes, 46 seconds though it has been a long fight, the company has been troubled but we are well on track to recover every penny that the company owns from uh such airing developers. 43:58 43 minutes, 58 seconds Okay. And you will be able to recover your uh all your legal costs and uh all your uh cost pertaining to the recovery. 44:07 44 minutes, 7 seconds Sir if I uh I do not know about that but if my legal cost uh is approximately a k 44:15 44 minutes, 15 seconds of rupee in a year I definitely cannot lose 200 crores of the company's money by not paying 1 cr only for your 44:23 44 minutes, 23 seconds information the property sold in the current year the company's gain has been 16.39% 44:30 44 minutes, 30 seconds which will be recognized only on receipt of monies okay sir thank you so much thank 44:40 44 minutes, 40 seconds Thank you. A reminder to all the participants. We request you to kindly restrict yourself to two question per 44:47 44 minutes, 47 seconds participant so that all the participants will be able to ask questions in the question queue. 44:53 44 minutes, 53 seconds We have the next question from the line of Buffsha from GM Financial. Please go ahead. 45:00 45 minutes On the standalone front uh what kind of revenue are we targeting for 26 and then 18% uh PDM guidelines stands for standalone as well? 45:10 45 minutes, 10 seconds Uh very difficult to say that how what the new orders would come. Generally uh we are at the moment bidding on uh 45:16 45 minutes, 16 seconds standalone basis. So I think uh uh the consolidated uh the standalone revenue should grow faster in the next financial 45:24 45 minutes, 24 seconds year uh uh as compared to the consolidated revenues. However, if we are able to recognize our share of uh 45:34 45 minutes, 34 seconds TCC that is the MA project, then obviously it will be a totally different picture. Uh we may up our guidance 45:42 45 minutes, 42 seconds accordingly. But at the moment I do see the share of standalone revenues going up in the next financial year. 45:50 45 minutes, 50 seconds Time for FI26. 45:53 45 minutes, 53 seconds FI26 at the moment we are on the higher side and that trend will continue. 46:00 46 minutes Okay. And sir, lastly uh what capex are we targeting for 26 and 27 both from standalone and consultant? So 27 Michael 46:09 46 minutes, 9 seconds only diverge once the uh budget meeting is held by the board and the figure is approved. It would be uh incorrect for 46:17 46 minutes, 17 seconds me to answer now but definitely after the board meeting on 20th of March we can disclose and discuss with you. uh as 46:24 46 minutes, 24 seconds far as the current financial year the total additions uh uh as on do date have been 78.82 crores 46:32 46 minutes, 32 seconds core assets uh for in the core assets and uh we we look for we believe that another 15 to 46:40 46 minutes, 40 seconds 20 crores will get added. So we should be at about 100 to 105 crores of core asset addition in the current financial year. 46:49 46 minutes, 49 seconds Is this for standalone? 46:51 46 minutes, 51 seconds Sorry, this is for standalone 100 100 crores for the entire Yeah. Yeah. Stand alone. Stand alone. 46:56 46 minutes, 56 seconds Yeah. Yeah. And for console there are no see uh we don't avail any limits in our subsidiaries joint 47:06 47 minutes, 6 seconds ventures uh that is uh you know uh strict fiscal prudence which we have maintained. If 47:14 47 minutes, 14 seconds you see our debt on console and standalone remains the same. there is no change except in the bank guarantee 47:21 47 minutes, 21 seconds limits. So uh capitalization will happen at capacity level. We have a system of 47:28 47 minutes, 28 seconds charging rent monthly rental from all the project sites whether they are in JV or otherwise and that system will 47:36 47 minutes, 36 seconds continue and lastly standalone margins have been quite good at around 18% 18% plus levels 47:44 47 minutes, 44 seconds in the 9 months. So you expect the to maintain that run rate or that 16 and half to 17 and a half% guidance is set for standalone as well. 47:54 47 minutes, 54 seconds So our guidance of 16 and 1/2 is on consult basis. Standalone was always 18 uh plus and we do believe uh we don't 48:03 48 minutes, 3 seconds see any reason why that 17 and a half to 18 and a half on standalone will get impacted uh in the near future. 48:11 48 minutes, 11 seconds Okay. Thank you sir. 48:16 48 minutes, 16 seconds Thank you. We have the next question from the line of Rahul Kumar from Vakaria P. Please go ahead. 48:23 48 minutes, 23 seconds Yeah. Hi. uh just to margins again uh I think uh I know you don't want us to compare on a quarterly basis but still 48:31 48 minutes, 31 seconds uh I think uh in this quarter we've seen that there's a 70 pips decline in the gross margins and uh similarly 80 whips 48:39 48 minutes, 39 seconds in the IITA margins as well uh what has driven this lower number 48:47 48 minutes, 47 seconds as I explained uh and I tried explaining every quarter uh you see on the total 48:54 48 minutes, 54 seconds uh Amazon for the year ended uh 31st March 25 16.15 49:01 49 minutes, 1 second the IVITA was 16.15 right as on today we are standing on 16.65 65. 49:10 49 minutes, 10 seconds So if you compare quarteron on quarter it would not give you a right picture on a whole year basis you will see the 49:17 49 minutes, 17 seconds company is uh maintaining what guidance it is giving on consult basis and improving on the standalone basis and uh 49:26 49 minutes, 26 seconds we can only say that this will continue uh comparing on quarterto quarter sometime we don't get to re recognize 49:34 49 minutes, 34 seconds any revenue in a particular quarter uh and when the revenue is not recognizing recognize the corresponding profit 49:42 49 minutes, 42 seconds cannot be recognized. So all these factors cannot be explained on a quartertoquarter basis. It can be explained in very detail on a yearly 49:50 49 minutes, 50 seconds basis. But on the yearly basis as I explained the company is not only maintaining but exceeding the targets 49:57 49 minutes, 57 seconds what it has given to its investors and financial institutions alike. 50:05 50 minutes, 5 seconds Okay. Okay. Understood. Understood. Uh and second question is uh I think you mentioned a figure of 100 crores lost 50:12 50 minutes, 12 seconds revenues uh this quarter because of NVT uh so was that for entire uh I mean 50:20 50 minutes, 20 seconds because of all the reasons you mentioned or was it only in the uh NCR reason? No 50:27 50 minutes, 27 seconds when I say why you lose uh nearly 2 months in a year is not only because of NGT issues. I said extended monsoons are 50:35 50 minutes, 35 seconds there erratic monsoons are there which are not now restricted to Maharashtra alone. We are seeing seeing heavy rainfall over the past 2 years in Delhi 50:43 50 minutes, 43 seconds and CR region as well not to talk about uh the eastern part of India because we don't work there. So given the monsoons, 50:50 50 minutes, 50 seconds given the elections, given the NGT environmental issues, now you see that many developers have received stop order 50:57 50 minutes, 57 seconds notice in Maharashtra as well. So we can only do our best which is within our means and resources to get as much as 51:06 51 minutes, 6 seconds open period for working. But we can't find uh fight NGT, we can't fight overall pollution. We are doing our best 51:15 51 minutes, 15 seconds for the environment by having uh adhering to all the guidelines as stipulated by uh the authorities whether 51:24 51 minutes, 24 seconds it is in Delhi NCR or in Mumbai. Uh so uh you will see loss of at least 304 45 51:31 51 minutes, 31 seconds days every year for everyone. So the revenues guidance for the next financial year will be adjusted accordingly and 51:38 51 minutes, 38 seconds provided. That's what I meant and that is rightful to do so because if then the uh the turbulences or the stoppages are 51:46 51 minutes, 46 seconds less then the revenues will cross the guidance but when we know that this practical issues are happening in the 51:54 51 minutes, 54 seconds urban cities of India and capacity being a pure urban player and that too in the tier one cities these issues I don't see 52:02 52 minutes, 2 seconds going away in a GP right right understand that but this 100 crores figure you mentioned for this 52:10 52 minutes, 10 seconds quarter or for you know year as a whole actually I am saying that we have lost 100 kores 52:16 52 minutes, 16 seconds close to 100 kores in October we lost something because of extended monsoon you're well aware about that then we 52:24 52 minutes, 24 seconds have lost in November and December due to NGT issues so my someone asked me a question so I g approximated answer it 52:32 52 minutes, 32 seconds could be 70 it could be 120 please don't hold me on that but we can definitely take realistic number and make available to you. 52:41 52 minutes, 41 seconds Okay. Got it. Okay. And uh I think in the quarter two uh presentation you had mentioned that uh you know the 52:48 52 minutes, 48 seconds receivables you are on track to reduce by 45 days uh for this year and I think you had reduced it by 20 days in the 52:57 52 minutes, 57 seconds second till second quarter. So uh uh I mean where where do we stand as 53:04 53 minutes, 4 seconds of now and do you do we continue to stand by the target which we had given? 53:10 53 minutes, 10 seconds We are doing everything possible to do that and I see no reason why we should achieve we should not achieve that. The company's collection profile of over the 53:18 53 minutes, 18 seconds first 9 months has improved by by 30% over the corresponding period last year. So uh uh not only have we 53:27 53 minutes, 27 seconds reduced our uh creditors substantially which I explained in one of the prior questions uh uh we have also managed to 53:35 53 minutes, 35 seconds reduce uh the cost of materials uh uh because of the such better payment terms uh and now the only thing is to 53:44 53 minutes, 44 seconds reduce uh the overall working capital cycle for which we have given ourselves eight quarters starting September 25. 53:53 53 minutes, 53 seconds Okay. Okay. Okay. And uh what is the contract asset as of as of December? 54:00 54 minutes Absolute value close to 1,900 crores. 54:03 54 minutes, 3 seconds 1,900. This was 1,300 crores. Uh 1,400 crores. 54:08 54 minutes, 8 seconds Excuse me sir. When I say contract assets, I'm including datas also in that 1900. So only contract assets will be 54:15 54 minutes, 15 seconds 1200 and uh so you have when because contract assets for me includes everything. 54:21 54 minutes, 21 seconds Okay. If you ask me what is the data and what is the other part of contract assets then uh the o overall unbuild lying in 54:31 54 minutes, 31 seconds whip would be close to 1250 crores uh on console basis on standalone basis would be lower. 54:40 54 minutes, 40 seconds No understand thanks. 54:46 54 minutes, 46 seconds Thank you. We have the next question from the line of Van Soleni from RSB and Ventures. Please go ahead. 54:56 54 minutes, 56 seconds Uh good morning management. Uh my question is on a revenue that uh you told that 18 to 20% is achievable in a 55:04 55 minutes, 4 seconds full year and you also just told key it will be depend on the uh whether the revenue from the JV and associate will 55:12 55 minutes, 12 seconds come or not. But my question is that even if the uh revenue in the JV and associate will come it will not added in 55:19 55 minutes, 19 seconds my top line right it will come through a profit directly it will not added in my top line. So how we are going to uh improve my top line to 20% or 18%. 55:30 55 minutes, 30 seconds That's my first question. 55:32 55 minutes, 32 seconds Sir I just explained this in my previous answer. I repeat it that there is an 55:39 55 minutes, 39 seconds additional revenue whatever consolidated revenue of 150 crores we do on a quarterly basis that alone is not 55:48 55 minutes, 48 seconds sufficient we believe that our 35% share of uh the top line in TCC should be made 55:55 55 minutes, 55 seconds available to us if that additional comes because the revenue in TCC would be 56:02 56 minutes, 2 seconds close to 300 crores in quarter four of the current fiscal. 56:07 56 minutes, 7 seconds Okay. So 35% of that would be 105 or 110 crores or thereabouts. So we are 56:14 56 minutes, 14 seconds expecting that revenue to get added. If that happens, we will achieve the figure what you are saying 900 crores of 56:22 56 minutes, 22 seconds revenue for the full quarter Q4 26. 56:29 56 minutes, 29 seconds Okay. And uh on the margin side the Yes. Yes. they're already recognizing. 56:37 56 minutes, 37 seconds Okay. And uh also you have given in the PPT that the margin for a full year will be around to upper level of the guidance near to 17.5. 56:48 56 minutes, 48 seconds So for that my uh Q quarterly revenue for Q4 will be around 18 to 19% minimum. 56:56 56 minutes, 56 seconds So that will achieve my full year uh 17.5 number. So will it be achieve a achievable for that even if the revenue 57:04 57 minutes, 4 seconds from the JB will not come assuming sir if the revenue from JB will not come then my will be higher. 57:11 57 minutes, 11 seconds You please try to understand that we are recognizing profit. It is not that we are not recognizing our profit. We are getting battered by not being allowed at 57:19 57 minutes, 19 seconds the moment so far of recognizing revenue from TCC to the tune of 35%. Is the first part of my answer understood? 57:29 57 minutes, 29 seconds Yes. Now, now going forward if the I am allowed to recognize profit turnover on 57:37 57 minutes, 37 seconds the profit which I'm only recognizing it will have a negative impact on I beta at the moment is it is having positive 57:46 57 minutes, 46 seconds impact on the I beta it's a technical point so I would suggest that you put in a mail to Mr. Amit Borovala of Marathon 57:54 57 minutes, 54 seconds Capital and he will respond so that you can with the uh illustration so that it is understood to you. 58:06 58 minutes, 6 seconds Thank you. We will take the next question from the line of Pratik Singha from Sage Investment. Please go ahead. 58:14 58 minutes, 14 seconds Yeah. Hi. Uh good good afternoon sir. Uh so my first question is with respect to the uh pre-tax uh uh cash flow from 58:22 58 minutes, 22 seconds operations uh against this AITA of 108 crores. Uh how much was that for Q3? 58:32 58 minutes, 32 seconds One minute please. 58:35 58 minutes, 35 seconds Tax is 86 crores. So uh you can take down the tax uh expenses 58:43 58 minutes, 43 seconds uh is 17.36 crores for the quarter if that is what you asked me. 58:50 58 minutes, 50 seconds No no I'm asking you the cash flow from the cash flow from operations. I I wanted uh how much is the cash flow from 58:57 58 minutes, 57 seconds operation uh before paying any taxes. So cash inflow for the first 9 months to 59:04 59 minutes, 4 seconds that 1,800 crores. I can provide you for the number for quarter 3 as well. But can you please tell me the cash flow for quarter 3? 59:13 59 minutes, 13 seconds But for the first 9 months it is 1,800 crores 525 and it is uh close to 525 crores 59:22 59 minutes, 22 seconds for Q3 for Q3 alone excluding the realization from properties. Okay. 59:29 59 minutes, 29 seconds Add to that January collection of 200 crores. 59:34 59 minutes, 34 seconds Uh so by sir cash flow from operations I'm asking you the net cash flow which is generated from the business in Q3 59:42 59 minutes, 42 seconds after considering any changes in the working capital 59:50 59 minutes, 50 seconds close to 100 cash flow from you want a net cash position cash flow from operation. Net cash flow from operations 59:57 59 minutes, 57 seconds for Q3 adjusting for the working approximately approximately 110 crores. 1:00:05 1 hour, 5 seconds Okay. Okay. Answer. Second question is with respect to this assets against the datas we have. How much of these assets 1:00:13 1 hour, 13 seconds are such that the building and the the building is completed and people are staying there and how much is under uh under the construction stage. 1:00:25 1 hour, 25 seconds I don't have those details ready with me but please drop a mail. We have a complete list. So the total assets which 1:00:32 1 hour, 32 seconds we are now holding for sale is close to 60 crores. Balance as I told 50 crores has already been sold out of which 38 1:00:41 1 hour, 41 seconds crores has been collected and balance 12 crores will be collected by March. So I don't have a bifurcation of what is OC, 1:00:49 1 hour, 49 seconds what is uh virtually complete, what is under construction in front of me. But what we can say is that in totality 52 1:00:59 1 hour, 59 seconds uh sorry 50 crores will be the realization uh for that which has been used to reduce our creditors substantially on absolute basis. 1:01:10 1 hour, 1 minute, 10 seconds Right. And sir uh with respect to the uh like two years guidance uh of this uh entire contract assets and the working 1:01:18 1 hour, 1 minute, 18 seconds capital cycle coming down uh but any near-term uh benchmarks or milestones 1:01:25 1 hour, 1 minute, 25 seconds that you would want to place uh for for the company that how it will translate 1:01:30 1 hour, 1 minute, 30 seconds transend into say FI26 then H1 FI27 uh and FI uh end of FI27 1:01:39 1 hour, 1 minute, 39 seconds as uh I'm sure you all are monitoring we have reduced by 20 days on a increasing revenue number one number two we would 1:01:48 1 hour, 1 minute, 48 seconds like to reduce that every quarter by 7 8 10 days here on as I told you our focus 1:01:56 1 hour, 1 minute, 56 seconds is that over eight quarters post September 25 we would like to bring 1:02:03 1 hour, 2 minutes, 3 seconds it down to that 90 days level which the company historically enjoyed before the issues of COVID and the held up money 1:02:11 1 hour, 2 minutes, 11 seconds started. So obviously when our hold up receivables whether it is lying in the asset side or whether reduces the 1:02:20 1 hour, 2 minutes, 20 seconds balance sheet size by 200 crores on the core assets definitely all these figures will get normalized and they are already 1:02:28 1 hour, 2 minutes, 28 seconds getting normalized. 20 days reduction on the increasing revenue is a substantial number. 1:02:36 1 hour, 2 minutes, 36 seconds Right. Right. Great sir. Uh thank you so much and all the best. Thank you. 1:02:44 1 hour, 2 minutes, 44 seconds Thank you. We have the next question from the line of Dakar Rana from Prudent Equipment. Please go ahead. 1:02:51 1 hour, 2 minutes, 51 seconds Uh yeah. Uh sir, Raymond Reality has uh launched few project uh near Valala and they are coming out with some JDAs. So are we eyeing any of those projects? 1:03:02 1 hour, 3 minutes, 2 seconds Uh so uh we have a long-term uh relationship with uh the Raymond uh realy and uh uh I don't look into 1:03:11 1 hour, 3 minutes, 11 seconds operations on a day-to-day basis but I do believe that we will be given a fair opportunity to quote and obviously as I 1:03:18 1 hour, 3 minutes, 18 seconds told that if our pricing is in line with the client's uh requirement uh uh definitely we will have an 1:03:26 1 hour, 3 minutes, 26 seconds opportunity uh having said that uh we have also bid for certain large projects in Tana for the same client where we are 1:03:33 1 hour, 3 minutes, 33 seconds executing. So obviously uh if we get new more projects in the existing location that would be our priority for obvious reasons. 1:03:43 1 hour, 3 minutes, 43 seconds Okay. Okay sir. 1:03:50 1 hour, 3 minutes, 50 seconds Thank you very much. As there are no further questions from the participants I now hand the conference over to Mr. 1:03:57 1 hour, 3 minutes, 57 seconds Rohit Katyal for closing comments. Thank you and over to you sir. 1:04:02 1 hour, 4 minutes, 2 seconds I would like to thank all of you for joining us on this call today. I hope that we have been able to address your 1:04:09 1 hour, 4 minutes, 9 seconds queries and provide useful insights into our performance and future outlook. If you have any questions or require 1:04:16 1 hour, 4 minutes, 16 seconds additional information, please feel to reach out to our investor relations team. Thank you once again for your time and continued support. Have a great day. 1:04:27 1 hour, 4 minutes, 27 seconds Thank you sir. On behalf of Kapasite Infra Projects Limited, that concludes this conference. Thank you for joining us today and you may now disconnect your lines. Thank you.