Dhruv Consultancy Services Ltd — Q3 FY26

Dhruv Consultancy Services Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=Kf8khxSdzPg Published: 2 months ago

0:00 Ladies and gentlemen, good day and welcome to Q3 and 911 FI26 results conference call of True Consultancy 0:08 8 seconds Services Limited hosted by Green Advisor Private Limited. This conference call may contain forward-looking statement 0:15 15 seconds about the company which are based on the beliefs, opinion and expectation of the company as in date of this call. These 0:22 22 seconds statement are not guarantee of future performance and involve risk and uncertainties that are difficult to predict. As a reminder, all participant 0:30 30 seconds line will be in the listen only mode and there will be an opportunity for you to ask question after the presentation conclude. Should you need assistant 0:38 38 seconds during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being 0:45 45 seconds recorded. I now hand the conference over to Mr. Harshan Shani from Kine Advisor. Thank you and over to you sir. 0:53 53 seconds Yes, thank you. Good afternoon everyone. 0:55 55 seconds On behalf of advisor, I welcome you all to three and 9 months result conference call of group consultancy services 1:03 1 minute, 3 seconds limited from the management team we have Mr. Sanjang chairman. Mr. Pi, managing director. Now 1:12 1 minute, 12 seconds I have the call to Miss Pangi for the opening remarks. Over to you ma'am. 1:16 1 minute, 16 seconds Good afternoon everyone. I welcome you all to audience call of our company for the third quarter of Q3 FI26. 1:24 1 minute, 24 seconds Let me start with a brief introduction of the company. Uh it was established in 2003 headquartered in love Mumbai. Roof 1:32 1 minute, 32 seconds Consultancy Services Limited is one of India's prominent infrastructure consultancy firms delivering comprehensive services across design, 1:40 1 minute, 40 seconds engineering, procurement support, construction supervision and project management. We provide a range of core services including preparation of 1:49 1 minute, 49 seconds detailed project reports, feasibility studies, supervision, consultancy, operation maintenance, technical and 1:56 1 minute, 56 seconds structural audits. Over the past two decades, we have successfully executed more than 250 projects for STM clients 2:04 2 minutes, 4 seconds such as Ministry of Road Transport and Highway, National Highway Authority of India, SIDO, JNPT, MMRDA, NSRDC, NSIC 2:13 2 minutes, 13 seconds and many more. Our team comprises of over 350 professionals of whom more than 75% are qualified engineers forming a 2:22 2 minutes, 22 seconds strong technical foundation that drives engineering excellence operational efficiency and sustainable infrastructure development across 2:30 2 minutes, 30 seconds highways bridges port and urban infrastructure projects. 2:34 2 minutes, 34 seconds Since our listing on the NFC BSC main course, we have continued to strengthen our technical capabilities, expand our service portfolio and strategically 2:42 2 minutes, 42 seconds diversify into new infrastructure segments both within India and internationally. 2:48 2 minutes, 48 seconds During the FI26, we achieved a significant milestone with our entry into the aviation sector. On October 2:55 2 minutes, 55 seconds 2025, we announced our first ever project in the airport sector, marking a strategic expansion beyond our traditional highways and bridges domain. 3:04 3 minutes, 4 seconds This positions us in a high potential infrastructure vertical. 3:08 3 minutes, 8 seconds During the quarter, we secured several mandates across multiple states. Uh as uh told, we were appointed by MADC, 3:16 3 minutes, 16 seconds Maharasha Airport Development Company Limited to provide consultancy services for the construction of Lin taxiways of 3:23 3 minutes, 23 seconds approximately 1 1950 m at Nihan Npur. We were also appointed as independent engineer by NCI for operation and 3:31 3 minutes, 31 seconds maintenance of NS-66 and NS73 in Karnataka including the Kundapur Surat Suratkal section and Mangalore airport 3:39 3 minutes, 39 seconds connectivity. In Maharashtra we secured a supervision consultancy contract uh for maintenance uh across four GMP 3:48 3 minutes, 48 seconds packages covering 44 kilometers. In Tamil Nadu we were appointed as supervision consultant for operation and maintenance of the indigam section. 3:57 3 minutes, 57 seconds Additionally, we also received LOA from UP bridge corporation Laknau to act as PMC for the construction of our underpass uh chaha. 4:07 4 minutes, 7 seconds Further strengthening our regional footprint, we were empanled as a consulting agency for supervision of road and bridge projects with the Odisha 4:15 4 minutes, 15 seconds Bridge and Construction Corporation Limited. 4:18 4 minutes, 18 seconds Overall during the quarter, we secured cumulatively new orders. 4:22 4 minutes, 22 seconds uh the balanced mix of long duration projects uh long duration operation and maintenance contracts DPR assignments 4:30 4 minutes, 30 seconds PMC roles and empanelment reflect strong order momentum improved geographical divers diversification and enhanced execution visibility. 4:40 4 minutes, 40 seconds We also received four orders from uh NHI to prepare DPR uh for the DAO southern 4:47 4 minutes, 47 seconds BIPA during road manag and Kerala fourth activities. 4:54 4 minutes, 54 seconds Moving to our financial performance during 9 month FA26 we reported a total revenue a 9 month revenue of 35.36 crores. 5:03 5 minutes, 3 seconds This dip in the revenue and the profitability it is primarily on account of a prospective accounting adjustment 5:11 5 minutes, 11 seconds of approximately 30 cr. This has risen from revisions to project cost and margin estimates undertaken in 5:18 5 minutes, 18 seconds accordance with IND8 and IND 1115 following a detailed review of select long-term contracts. 5:26 5 minutes, 26 seconds Please note that this is a non-cash accounting impact and it is only a book adjustment resulting from refinement of 5:33 5 minutes, 33 seconds previously estimated project and the overall project margins still remain in profits and with strong execution 5:41 5 minutes, 41 seconds capability of the company. It does not involve any outflow of funds. It does not impact any operational cash flows. 5:50 5 minutes, 50 seconds This division reflects a prudent and conservative alignment of the revenue recognition with current project evaluations and it should not be inrated 5:58 5 minutes, 58 seconds as a weakening of our core business fundamentals. 6:02 6 minutes, 2 seconds Importantly as informed the project level profitability remains positive across majority of the assignments. 6:10 6 minutes, 10 seconds Operationally we continue to remain stable and resilient. Our order book remains strong with an unexecuted order 6:16 6 minutes, 16 seconds book of 256 K as on date. This provides a healthy revenue visibility for the coming quarters and reinforcing 6:25 6 minutes, 25 seconds confidence in our execution momentum and long-term growth strategy. 6:29 6 minutes, 29 seconds In summary, despite the one-time accounting impact during the quarter, our underlying business remains robust, 6:37 6 minutes, 37 seconds which is supported by diversified mandates, long duration contacts, sectoral expansion, and a healthy order 6:44 6 minutes, 44 seconds pipeline. We remain confident in our ability to deliver sustainable long-term value to our stakeholders. 6:51 6 minutes, 51 seconds I would like to express my gratitude to our shareholders, clients, partners, and employees for their continued support and confidence. We remain committed to 7:00 7 minutes delivering engineering excellence, sustainable growth and long-term value creation. Thank you. 7:10 7 minutes, 10 seconds Thank you. Uh shall we begin with question and answer? Yes. 7:17 7 minutes, 17 seconds Thank you. Thank you. Ladies and gentlemen, we'll begin with the question and answer session. Anyone who wishes to ask a question may press star and one on 7:25 7 minutes, 25 seconds your desktop telephone. If you wish to remove yourself from the question Q, you may press star and two. Participants are requested to use handsets while asking a question. 7:36 7 minutes, 36 seconds Ladies and gentlemen, we'll wait for a moment while the question Q assembles. 7:43 7 minutes, 43 seconds The first question comes from the line of Sakit Kapoor from Kapoor and Company. 7:47 7 minutes, 47 seconds Please go ahead Mr. Hello. 7:57 7 minutes, 57 seconds Yeah. Yeah. 7:58 7 minutes, 58 seconds Yeah. No, ma'am. And thank you first firstly for the opportunity and for hosting us today. 8:03 8 minutes, 3 seconds Yes. Uh ma'am ma'am if you could just explain to us again the reversal part uh yeah of the accounting entry and uh as 8:12 8 minutes, 12 seconds you mentioned that there is no actual cash outflow uh accord to it but when we read your uh trading rational 8:21 8 minutes, 21 seconds uh we have been downgraded also there and we have also mentioned about uh this this impact. So if you could just give 8:29 8 minutes, 29 seconds us some more more color on the nature of the condition and earlier also during the course of the business have we ever done 8:36 8 minutes, 36 seconds this exercise and what prompted us to uh to do to go through the exercise now in the in the quarter end of December? 8:45 8 minutes, 45 seconds Okay. Okay. Okay. So so as said in the opening remarks also that this reported loss is primarily due to change in 8:54 8 minutes, 54 seconds accounting estimates. So we follow an ind uh we follow an India's accounting standard and uh as per the ind any 9:03 9 minutes, 3 seconds change in estimate that is done has to be debited to the P&L. So for example if at the beginning of a project we assume 9:12 9 minutes, 12 seconds the margin of 30%. And if the margin has hypothetically if that margin has come 9:19 9 minutes, 19 seconds down to 25% then it the hit has to be taken in a in the P&L but overall the 9:27 9 minutes, 27 seconds pro the project profitability has only changed from 30% to 25% for the entire tenure and it does not um uh say that it 9:36 9 minutes, 36 seconds is for one particular year or the or one particular uh quarter it is basically for the entire project tenure. So there 9:45 9 minutes, 45 seconds have been certain policy changes um uh which have been done by NHI recently. Uh 9:53 9 minutes, 53 seconds I will just uh state them one by one. 10:01 10 minutes, 1 second So certain stages of completion have been changed. For example, land acquisition. If a project has no land 10:08 10 minutes, 8 seconds acquisition done, still a consultant is there on the site. So it is an extra expenditure for the government. So what 10:16 10 minutes, 16 seconds they say that once the contractor is there on site only then you deploy till then we have assumed that we deploy a 10:24 10 minutes, 24 seconds manpower of 20 as against that they tell us that you deploy a manpower of five but that doesn't mean there is a revenue 10:32 10 minutes, 32 seconds loss but we had estimated that we will get a revenue for those 20 people but now we are deploying only five people. 10:41 10 minutes, 41 seconds those 20 people will be deployed at a later stage. So if you see the overall project in fact the project tenure has 10:49 10 minutes, 49 seconds increased thereby increasing the revenues for the future. So hence these alignments uh needed to be done. U 10:59 10 minutes, 59 seconds what prompted this now in accordance with the IND8 that the policy uh that the accounting standard mentions that 11:07 11 minutes, 7 seconds any changes in accounting estimate and errors. So we have to revise certain assumptions that we make relating to the 11:15 11 minutes, 15 seconds project cost estimates the stage of completion and recoverability of contract assets. So this adjustment is 11:22 11 minutes, 22 seconds just a refinement of the estimate. There is this does not represent um any hit in the cash flow or any business loss as 11:32 11 minutes, 32 seconds such that is there. More uh pointers are that if a key professional say we 11:39 11 minutes, 39 seconds appoint a person at a site for 5 years due to some reason he decides to switch 11:45 11 minutes, 45 seconds his job or maybe uh in some cases where uh they have been transferred from one project to another project which is not 11:54 11 minutes, 54 seconds allowed. In that case they are uh debarred actually but in certain contracts where replacement was required 12:02 12 minutes, 2 seconds client had mandated provision this resulted in partial reduction in the billable remineration remobilization cost and adjustment of projected 12:10 12 minutes, 10 seconds margins. Secondly there are attendance thresholds also. So if for example 12:17 12 minutes, 17 seconds uh a 25-day attendance is mandatory and for some reason a a personnel is at site 12:24 12 minutes, 24 seconds for 22 days then a 3-day uh reduction is there uh in the in that particular 12:31 12 minutes, 31 seconds remuneration which is recoverable at the later stage. So whatever change has been 12:37 12 minutes, 37 seconds done uh has been done only in the future estimates. There has been no impact overall in the order book as such. Only 12:46 12 minutes, 46 seconds if you see our total order book including executed and unexecuted was around 490 crores. Due to this 12:54 12 minutes, 54 seconds impact it has come down to 465 crores which is less than 10% of the impact. 13:01 13 minutes, 1 second Another thing is we had deployed network survey vehicles uh at our site projects. 13:08 13 minutes, 8 seconds Now NHI has come up with a policy that these this these will not be a part of our contract. Hence it had to be defored 13:16 13 minutes, 16 seconds and they had to be uh uh taken as a separate contract. So again for those NSB contracts we are bidding separately. 13:25 13 minutes, 25 seconds So uh in fact these cost escalations and execution dynamics have result have been 13:31 13 minutes, 31 seconds revised in account for the logistic mobilization expenses the technical manpower deployment and maybe some other 13:39 13 minutes, 39 seconds related execution. So earlier they were these estimates were slightly projected 13:45 13 minutes, 45 seconds at the higher side. Now we are acting more conservatively. Hence this revision has come. There have been time overruns 13:54 13 minutes, 54 seconds due to delay in the contractor's execution. But this delay actually is very positive for a consultant because 14:01 14 minutes, 1 second we get extra revenues. For example, if a contractor we have a 24 month uh construction period but in case any 14:09 14 minutes, 9 seconds contractor finishes the project before the time so there is a loss. But in our 14:16 14 minutes, 16 seconds case uh maximum of the project has been completed ahead of schedule. Hence there have been certain revenues which we had 14:25 14 minutes, 25 seconds estimate we will realize it but from an overall Indian infrastructure scenario projects are getting completed in a timely manner that actually strengthens our technical capability. 14:37 14 minutes, 37 seconds Now what are the revenue recognition refinements that we did? We have updated our technical evaluations site progress 14:44 14 minutes, 44 seconds analysis that led to refinement in percentage of completion assessment. So it was done in line with ADS 1115 14:51 14 minutes, 51 seconds requirements as the standard required us to do this time and when we will have to revise these estimates. Now we have 14:59 14 minutes, 59 seconds further strengthened our internal control systems so that such this is just a one-time revision that will come 15:07 15 minutes, 7 seconds and henceforth for the future there will be no such revisions. 15:11 15 minutes, 11 seconds Uh openly the timing of the revenue recognition uh is the key factor here. That is why uh this adjustment has come. 15:19 15 minutes, 19 seconds Modifications in client acceptance procedures and documentation standards impacted the billing cycles and re uh 15:27 15 minutes, 27 seconds and the revenue estimates. So further to summarize this is a non-cash accounting impact. It arises from a refinement of 15:35 15 minutes, 35 seconds forwardlooking assumptions and it is not any misreporting that has been done in the past. It does not indicate any structural weakness in the company's execution uh capability. 15:46 15 minutes, 46 seconds The order book is strong. The operational cash flow remains stable. 15:50 15 minutes, 50 seconds Now, as far as care rating is concerned, they have done their independent review. 15:55 15 minutes, 55 seconds All these answers, all these justifications were provided to them. In fact, they have done this on a 9 month 16:02 16 minutes, 2 seconds uh uh result where even a balance sheet is not prepared and it is a limited review. So we have requested them that 16:10 16 minutes, 10 seconds you take this up again in the Q4 and try to understand the business uh more in detail and uh they have done uh this on 16:19 16 minutes, 19 seconds the basis of uh the information that was publically available. uh there was a management representation but of course 16:27 16 minutes, 27 seconds the uh they said that they will maybe consider in the uh future quarters. 16:38 16 minutes, 38 seconds Yeah I'm audible ma'am. 16:40 16 minutes, 40 seconds Yeah yeah yeah you're audible. Uh so ma'am uh whatever adjustment you're talking can you give us then the type of 16:48 16 minutes, 48 seconds revenue booking we do uh is it on an acral basis or how are our revenue recognized in the P&L 16:56 16 minutes, 56 seconds so we re we recognize revenue in two types one is a direct GST based revenue we raise a bill a tax invoice and the 17:04 17 minutes, 4 seconds client reimbures us but what the India's accounting standard since we migrated from the theme to the main board we have 17:12 17 minutes, 12 seconds in adopting an index accounting standard. Now as we have informed in the previous calls also we don't have uh our 17:20 17 minutes, 20 seconds direct competitors are not listed. We are the only listed company in our direct competitor working with NHI mor or so or providing these kind of 17:28 17 minutes, 28 seconds services. Now what has happened is um earlier when we migrated there were seven or 17:37 17 minutes, 37 seconds eight year contracts that were there. we assumed a certain higher level profitability. Now it has been slightly 17:44 17 minutes, 44 seconds tweaked and an overall impact past plus future has been done uh in this particular year. Now second part is 17:53 17 minutes, 53 seconds unbuild revenue. What we realize now unbuild revenue is a cost based revenue at the beginning of the project the 18:00 18 minutes costs are usually higher and as and when the projects uh go in progress uh they are realized. So even though we are 18:09 18 minutes, 9 seconds incurring cost one time we have to bill the client on a monthly basis that is as per our bill of quantities or as per the 18:16 18 minutes, 16 seconds contract that we have signed with the client. Now this unbuild cost plus the margin becomes our unbuild revenue. So 18:23 18 minutes, 23 seconds our revenue comprises of two parts. One is the build revenue and second is the unbuild revenue. 18:30 18 minutes, 30 seconds So for the 9 months uh post reversal what what is the build part and unbuild 18:36 18 minutes, 36 seconds have now been categorized or uh so uh since this is a limited review 18:44 18 minutes, 44 seconds I will not be able to disclose the numbers but in Q4 there will be a detailed break up along with the schedule. 18:51 18 minutes, 51 seconds Ma'am as you are mentioning that but then if our revenue hasn't uh has 19:01 19 minutes, 1 second been lowered we have already spent on the on the expenses side the type of employion 19:11 19 minutes, 11 seconds there or how should one treat that so yeah so what had happened is your question is absolutely right uh see 19:18 19 minutes, 18 seconds costs are being incurred that is why The unbuild revenue is being reported but the billing will happen eventually like I gave you an example that there is a 19:28 19 minutes, 28 seconds land acquisition issue on site. Client will tell me we don't need 20 people right now because the contractor is not there on site. But once the contractor 19:36 19 minutes, 36 seconds comes I will deploy fully. That means whatever five manpower I'm deploying right now is an extra revenue to me. But 19:44 19 minutes, 44 seconds if you see from an estimated that is an expense to you. How can an employee deployment is revenue for you? 19:52 19 minutes, 52 seconds I didn't get your point. 19:53 19 minutes, 53 seconds I am saving it now from the client. If I am deploying someone, yeah, if I am deploying someone, if I'm providing a service that means I build that to the client, it is a it is a billable item. 20:05 20 minutes, 5 seconds Okay. Yeah. 20:07 20 minutes, 7 seconds Yeah. Please continue. So you were telling that five five people and if I if I so I am estimating that I will 20:14 20 minutes, 14 seconds get revenue only for five. Okay. But previously I might have estimated I will get revenue for 20. I will get revenue 20:23 20 minutes, 23 seconds for 20 but only when the contractor mobilizes on the side. 20:29 20 minutes, 29 seconds So that is a future. Okay. So what we have done I can still put an estimate for 20 but I want to be very 20:36 20 minutes, 36 seconds conservative. I don't know when the uh project will start. This has this has been for few cases around among the 65 20:46 20 minutes, 46 seconds 70 projects that we are working in six to seven projects this has been the case. So we have been conservative in our approach and we had to change the 20:54 20 minutes, 54 seconds way the uh percent so we adopt a percentage of completion method. The costs are being incurred continuously 21:03 21 minutes, 3 seconds revenues are also being recognized but we had estimated a certain revenue. 21:09 21 minutes, 9 seconds we we couldn't achieve that particular revenue. Hence, we had to revise the unbuild revenue that is there. That doesn't mean that that revenue will not 21:18 21 minutes, 18 seconds be realized in future. As I told you, there is a strong order book. These are government of India signed agreements. 21:25 21 minutes, 25 seconds Hence, this order book cannot be refused to us. 21:33 21 minutes, 33 seconds But okay, not getting the entire wavelength correctly, but Only small point was that 21:41 21 minutes, 41 seconds when we have prepared our PNL and then I joined the queue also when we prepared our PNL for the previous 9 months we 21:48 21 minutes, 48 seconds have given our revenue top on the on the income side and then the employee expenses the contract expenses and other 21:57 21 minutes, 57 seconds thing on the debit side and then reported a profitable loss for the infant period. Now when you are 22:05 22 minutes, 5 seconds reversing your last 9 months revenue you have already debited your account uh in terms of your contract expenses the 22:14 22 minutes, 14 seconds employee and the other overhead cost. So that has all flown out of our uh cash flow. So that understanding is correct 22:21 22 minutes, 21 seconds or that is also then that should have also been reversed had only the revenue been uh impacted. That was our 22:28 22 minutes, 28 seconds understanding. See the I understand but see as I said now the billing is of two parts. So whatever reversal has been 22:35 22 minutes, 35 seconds done is not for the build revenue or the recognized revenue. The reversal has been done which is unbel revenue. It may 22:43 22 minutes, 43 seconds come in the future and this is not a revenue adjustment that is that has been done. This is a margin adjustment. Okay. 22:51 22 minutes, 51 seconds So say like I said I earlier assumed a margin of 30%. Now due to large number of credits due to large order book that 23:00 23 minutes is there hence this 50 cr big figure has come had this figure had this order book be on a lower side like our competitors 23:09 23 minutes, 9 seconds they don't have such a big order book okay since the number of projects in these 256 unexecuted order book are are 23:17 23 minutes, 17 seconds 65 in number even if you say uh 50 lakh reversal in each project then if 23:26 23 minutes, 26 seconds you total it it will come down to 30 cr but if you see a project to project impact it is very less if you see the 23:34 23 minutes, 34 seconds order book impact that it is there it is very less only from a 9 month uh uh P&L 23:41 23 minutes, 41 seconds perspective it it looks very big that doesn't mean that the order book that we are seeing will not be realized this is 23:48 23 minutes, 48 seconds just a adjustment that we have been done so that uh a better transparent fixes given uh to the stakeholders. 23:59 23 minutes, 59 seconds Okay. 23:59 23 minutes, 59 seconds And this has only been done as a part of improving the internal governance uh internal control systems in the 24:06 24 minutes, 6 seconds organization so that u we don't report anything wrong that is there. There has been no misreporting in 24:14 24 minutes, 14 seconds the past. But if in case uh all this is being done with the unbuild revenue is being calculated based on assumptions 24:22 24 minutes, 22 seconds and that has been decided not by us but by the accounting standard which we are forced to adopt. Earlier when we were in 24:30 24 minutes, 30 seconds the theme board or when we were not migrated to the main board we were not adopting this standard but this accounting standard forces us to 24:37 24 minutes, 37 seconds calculate the unbuild revenue or in the infrastructure sector do a percentage of completion method. So we 24:45 24 minutes, 45 seconds have also been uh uh doing the percentage of completion method that means the cost that we have incurred in 24:52 24 minutes, 52 seconds the project plus our margin is equal to the unbuild revenue. Now this unbuild revenue when it will be realized it will 24:59 24 minutes, 59 seconds be realized in the future that future estimation has been revised. 25:06 25 minutes, 6 seconds So going ahead we will be uh again increase on a proportionate basis this revenue will go up when we will yeah so 25:15 25 minutes, 15 seconds like I said this 256 color order book that is there in hand today this is certain and this will be realized in the future quarters. 25:26 25 minutes, 26 seconds okay mala. Yeah. 25:27 25 minutes, 27 seconds So in that aspect definitely we we are then running short of cash since on the debit side the the the the loss that we 25:36 25 minutes, 36 seconds have for the 9 months. How have you funded that uh that this is this is not a accounting cash this has not hit the cash flow at all. 25:46 25 minutes, 46 seconds It is only a book adjustment. Okay. See we have scaled our operations. We have expanded our project portfolio across 25:54 25 minutes, 54 seconds India across geographies. So management undertook a comprehensive review of certain assumptions that were being made 26:02 26 minutes, 2 seconds in the revenue recognition practices that I just explained you. Now during this review we just aligned our estimation framework to be more 26:10 26 minutes, 10 seconds conservative and milestone driven. And because the India state requirements state that this has to hit the P&L, we 26:18 26 minutes, 18 seconds we had to hit the P&L. But this is not any operational cash flow that has been uh hit. The cash flow remains positive. 26:27 26 minutes, 27 seconds Uh we are able to service our debt. We are able to pay our employees on time. We are able to pay our taxes on time. 26:33 26 minutes, 33 seconds There is absolutely no problem there. 26:37 26 minutes, 37 seconds Okay ma'am. Because the PNL representation is giving us a uh for me as a lay man uh not the best 26:45 26 minutes, 45 seconds of understanding because when we see your revenue and the P&L everything has passed to the P&L you are reporting 26:53 26 minutes, 53 seconds profit from operations before exceptional item loss of 28 PR. 26:59 26 minutes, 59 seconds So and and and in that you have gone through this administrative expenses and the employee benefit expenses line item 27:06 27 minutes, 6 seconds also. So when yeah if there was no cash flow how the expenses would have been carried out? 27:14 27 minutes, 14 seconds Yes. Yeah. Expenses are being carried out. 27:17 27 minutes, 17 seconds Revenues are in fact uh I can say that this year itself our cash flow itself is 27:24 27 minutes, 24 seconds around 70 70 75 cr till till date which is there. So that doesn't mean that the 27:31 27 minutes, 31 seconds company is not doing well. So there like I said there has been no impact on the operational cash flow or the operational capability. This is a book level 27:40 27 minutes, 40 seconds adjustment that has been done due to the standards that has been given to us and 27:46 27 minutes, 46 seconds uh uh now we have we have just made our approach very conservative which was not 27:53 27 minutes, 53 seconds there earlier. a slight tweak in the margin. The margin has definitely gone down but to a very small extent if you 28:00 28 minutes see project to project. We did not want to be um uh uh I mean uh we did not want to report any over margins that were 28:09 28 minutes, 9 seconds there. Hence, henceforth the company will have a very conservative and a milestone-driven approach when it comes to recognizing unbuild revenue. And 28:17 28 minutes, 17 seconds because we have no example in front of us how these revenues are to be recognized as there are no other listed 28:24 28 minutes, 24 seconds companies in our competitors. So this is the first time that we are also ever doing this and henceforth there will be 28:33 28 minutes, 33 seconds no such adjustment coming up and the company remains positive in achieving the revenues that has been mentioned in the order book. 28:42 28 minutes, 42 seconds So how what what should investors should expect to end the year? How should this quarter shape up? And also ma'am on the international front 28:51 28 minutes, 51 seconds to our chairman and the non-executive gentleman I forgot his uh your father's name he has already already alluded to 28:58 28 minutes, 58 seconds us about some international breakthrough wherein uh where we will be making very big into executions where are we 29:06 29 minutes, 6 seconds so projects are going on uh internationally as well okay in Africa we are working currently in Mozambique and Ghana we are receiving payment in 29:15 29 minutes, 15 seconds dollars uh we have already started Ed receiving payments in our account also uh Africa uh see due to this war 29:23 29 minutes, 23 seconds situation and everything things have been a bit slow this year in 2025. So I uh we have submitted our bids everything 29:31 29 minutes, 31 seconds but this entire year since Africa is also driven by uh US and everything and these uh treaties that are there things 29:40 29 minutes, 40 seconds have been a bit slower but there has been no cancellation in orders. there has been no impact on our orders due to 29:47 29 minutes, 47 seconds it. We are servicing international clients also uh right now in Africa and 29:54 29 minutes, 54 seconds uh uh projects are projects are going on. The project tenurs are for a period of uh two to three years and we have 30:01 30 minutes, 1 second just completed one year of working in Africa. So in Ghana and Mozambi we are working right now. 30:10 30 minutes, 10 seconds And what is U Mrs. Akit Kapoor can you hear us? 30:24 30 minutes, 24 seconds Hello. Hello. Yes. Hello. 30:32 30 minutes, 32 seconds Yes, please go ahead. 30:33 30 minutes, 33 seconds Yes. Um yes ma'am. So just to conclude uh for an operational our basic uh 30:41 30 minutes, 41 seconds revenue recognition how should we end in this year and I think so we were always being of the uh of the vision of 25 to 30:49 30 minutes, 49 seconds 30% topline growth so how are things uh currently as far as project profitability project 30:57 30 minutes, 57 seconds wise profitability uh and operation cash and operations uh that are there they remain positive across all the projects 31:06 31 minutes, 6 seconds uh as far as Q4 numbers are concerned I'm really sorry but I will not be able to provide any numbers as SEBI 31:12 31 minutes, 12 seconds regulations uh restrict me from doing so ma'am only the nature of our our the type of execution or the phase we 31:21 31 minutes, 21 seconds generally do are we on track to uh yes yes absolutely so like I said 31:28 31 minutes, 28 seconds yeah like I said then the robust order book of 256 cr and which the company is 100% positive and confident of realizing it. 31:40 31 minutes, 40 seconds Okay ma'am. Yeah. Thank you. 31:46 31 minutes, 46 seconds Our next question comes from the line of Sashi Shinde from SH Consultancy Limited. Please go ahead. 31:55 31 minutes, 55 seconds Hello ma'am. Yeah. 31:58 31 minutes, 58 seconds Uh so my question is uh with a continue government focus on infrastructure development how well position are we to 32:07 32 minutes, 7 seconds benefit from the upcoming highway and airport projects. 32:13 32 minutes, 13 seconds So at present uh we have uh submitted bids close to 350 cr for which results 32:20 32 minutes, 20 seconds are awaited. In addition to that we have a strong order unexecuted order book of 256 crores. Uh our strike rate at 32:29 32 minutes, 29 seconds present is uh 20 to 25% when it comes to uh Indian credits. In addition to this we are also exploring opportunities overseas. 32:39 32 minutes, 39 seconds uh with the Vikasid Bhar 2047 vision uh ahead of us, infrastructure is going to 32:46 32 minutes, 46 seconds play a major role uh in achieving uh a fight economy and a 2047 Vikasit Bharat 32:54 32 minutes, 54 seconds dream and uh consultancy is well positioned uh to take maximum benefit of these developments that are happening in India as well as overseas. 33:05 33 minutes, 5 seconds Okay, great. and uh how does our 20 plus years of uh execution track record differentiate us in competitive? 33:18 33 minutes, 18 seconds So uh our bidding is based on two one is the uh technical capability and second is the financial score. Now uh with the 33:27 33 minutes, 27 seconds recent uh changes that have been that has come in the uh preparation of detailed project report assignment the 33:34 33 minutes, 34 seconds NSI has completely scrapped giving uh orders based on the financial number and they are giving a rating to the 33:43 33 minutes, 43 seconds consultants and the higher the technical rating they have fixed the cost. The cost will be fixed. It is double what we 33:52 33 minutes, 52 seconds had been bidding earlier but the tech but the project will be awarded only on the basis of technical capability and 33:59 33 minutes, 59 seconds group being well positioned to take up such orders in only 2 months we have banned five such orders so earlier we 34:08 34 minutes, 8 seconds were getting DPR for a rate of say 2 to 2.5 to three lakh per kilometer now we are getting at five lakh or 6 lakh per 34:16 34 minutes, 16 seconds kilometer on a fixed cost model because we have high techn technical capability. 34:21 34 minutes, 21 seconds So uh all our investors all our stakeholders can expect that due to the strengthening of technical capability in 34:28 34 minutes, 28 seconds terms of our employees are uh project expertise the way uh the way the type of projects that we are handling projects 34:37 34 minutes, 37 seconds like Ganga expressway, Delhi Mumbai expressway, Delhi Derun Expressway have really given us an edge uh in the 34:45 34 minutes, 45 seconds competition. uh and um as well as uh in addition to that there are software 34:52 34 minutes, 52 seconds there is uh 3D 4D modeling also right now that is being done which is an international standard right now in 34:59 34 minutes, 59 seconds India it is not adopted that much still company is well positioned to deliver high quality high precision products 35:08 35 minutes, 8 seconds okay ma'am thank you for answering the question Yeah, thank you. 35:18 35 minutes, 18 seconds Our next question comes from the line of MKkesh Dwani from WK Securities. Please go ahead. Yeah. Hi ma'am. Good afternoon. 35:26 35 minutes, 26 seconds Yeah. 35:27 35 minutes, 27 seconds Yeah. I have two questions. First is like uh the order book we have around uh of uh 250 crores. So what would be the agreement timeline? 35:37 35 minutes, 37 seconds Uh we are expecting 2.5 to 3 years. 35:42 35 minutes, 42 seconds Okay. Okay. Yeah. And second question is regarding uh uh the element of other current assets in our balance sheet. Uh 35:50 35 minutes, 50 seconds it is around 53 crores. So can you throw some light on it? 35:54 35 minutes, 54 seconds Uh so this is actually a part of the unbuild revenue that was there uh earlier. Uh in addition to that there 36:02 36 minutes, 2 seconds has been certain uh debts uh uh that company is uh right now having. uh we 36:09 36 minutes, 9 seconds have a 10 cr limit from HDFC uh which is short-term plus long-term uh CC. Uh 36:16 36 minutes, 16 seconds second we have a 4.5 cr limit from PNB also uh uh which is CC again uh others are our dattors and our unwind. 36:29 36 minutes, 29 seconds Okay. Okay. Okay. Thank you. Thank you. That's all for my Thank you. Thank you. 36:38 36 minutes, 38 seconds Our next question comes from the line of Mahet from BY Capital. Please go ahead. Uh yeah, can you hear me? 36:47 36 minutes, 47 seconds Yes. 36:48 36 minutes, 48 seconds Uh yeah. So uh like I wanted to know uh with our entry into the aviation consultancy. 36:56 36 minutes, 56 seconds So how do you see this vertical contributing to revenue over next two to three years? 37:03 37 minutes, 3 seconds So at present we have one airport project. Makur airport is being expanded and that expansion consultancy contract uh uh is awarded to group consultancy. 37:14 37 minutes, 14 seconds So um we have a uh we have hired uh an airport exe two airport executives in 37:21 37 minutes, 21 seconds fact who are retired from the Maharashtra airport development corporation who has been a pioneer in developing tier 2 tier three airports 37:30 37 minutes, 30 seconds across west and south India and under their leadership we have presently submitted bids of four such airports uh 37:39 37 minutes, 39 seconds that are there and uh highway if you compare to airports. 37:44 37 minutes, 44 seconds Highway has a greater reach, has a greater has a greater capability of giving higher revenues. In terms of 37:52 37 minutes, 52 seconds numbers, the airport projects will be lesser. But it is just an entry for diversification into new sectors. And 38:01 38 minutes, 1 second participating in airports makes us a more resilient or more strong and a more uh uh uh because now focus of the uh union budget has been there on airports. 38:13 38 minutes, 13 seconds 250 to 300 new airports are being developed in tier 2, tier three cities. 38:18 38 minutes, 18 seconds And uh uh that is why uh we have uh made plans to diversify in other sectors as 38:26 38 minutes, 26 seconds well. So that the dependency that is there on one sector is not there. In terms of revenue if you contribute still 38:33 38 minutes, 33 seconds to 10 to 20% because the reach that highways give any other sector will not be able to give. 38:43 38 minutes, 43 seconds Okay. Got it. And like uh currently we have bided for four uh air projects right? Yeah. 38:51 38 minutes, 51 seconds Okay. Okay. And uh like can you also elaborate on uh long-term 38:58 38 minutes, 58 seconds uh strategic vision behind you know uh diversifying beyond highways and bridges. 39:04 39 minutes, 4 seconds So we have made our vision 2030 uh which is to diversify into other infrastructure sectors. In the past what 39:12 39 minutes, 12 seconds we have seen and what uh periods like covid and period like war have taught us that don't put all your eggs in one 39:19 39 minutes, 19 seconds basket. So we have made a strategic call to diversify into other sectors to diversify our client base and since last 39:26 39 minutes, 26 seconds one and two years we have been successful in achieving that and we can expect by 2030 that company is 39:34 39 minutes, 34 seconds positioned well in every in two to three other such sectors like we are positioned in one of the top five as one of the top five consultants in highway. 39:43 39 minutes, 43 seconds We will be similarly positioned in other sectors like railways, metros, airports and maybe other urban infra sectors also. 39:53 39 minutes, 53 seconds Okay. Okay. And uh like I know like as we now talk about you know segmental diversification like in highways and 40:02 40 minutes, 2 seconds roads and then airports. like what steps are we taking to further you know diversify geographically and like reduce concentration risk. 40:13 40 minutes, 13 seconds Yeah. So presently uh we have explored a few opportunities uh along with Africa we are looking at Southeast Asia and 40:21 40 minutes, 21 seconds Middle East also. Uh if uh people follow me on LinkedIn uh you can see that I've been traveling to Saudi Arabia, Middle 40:30 40 minutes, 30 seconds East a lot. uh recently there has been massive developments happening with respect to infrastructure development uh 40:38 40 minutes, 38 seconds in these countries also uh in all the GCC countries and uh uh uh India in fact 40:46 40 minutes, 46 seconds is a more geographically tougher nation to deliver and if we can deliver in India it is very easy to deliver uh 40:53 40 minutes, 53 seconds outside India since geograph different geography is not a problem uh due to uh population also being less uh the things 41:02 41 minutes, 2 seconds are quite easy there and uh uh this year we can expect an entry into the Middle East segment also. 41:12 41 minutes, 12 seconds Okay. Okay. And like I also wanted to know that uh like how does the current 41:18 41 minutes, 18 seconds uh 256 floor unexecuted order book position like for revenue growth in uh FY27 and beyond years. 41:28 41 minutes, 28 seconds So we like I said this 256 cr revenue that is there and it is continuously adding this 256 cr might become 300 in 41:37 41 minutes, 37 seconds the next quarter as we are continuously bing large size assignments not just in highways but in other sectors also uh 41:44 41 minutes, 44 seconds but uh usually the construction timeline is 2.5 to 3 years and with a DLP period 41:51 41 minutes, 51 seconds of another 2 to 3 years so we can expect maximum revenue of this 2 26 cr being 41:58 41 minutes, 58 seconds realized in another 2.5 to 3 years plus a small spillover in another 3 years. 42:04 42 minutes, 4 seconds Our next question comes from the line of Krishna Kumar an individual investor. Please go ahead. 42:10 42 minutes, 10 seconds Actually in the previous quarter we we saw that um the water book expected in 42:17 42 minutes, 17 seconds by 2030 was,000 crores. So are we on track on that? Actually uh looking at the 42:26 42 minutes, 26 seconds uh so there have been there are this past one year there has been certain slowdown uh especially due to the situations that have been there globally 42:35 42 minutes, 35 seconds uh uh there is not much impact on Indian infrastructure as such but uh this year everywhere has not been uh very positive 42:45 42 minutes, 45 seconds but for we are confident of our vision 2030 where we will at least be positioned in such a way where we are uh 42:54 42 minutes, 54 seconds most preferable consultant in every sector like we are already in highway we are there in now airports metros 43:01 43 minutes, 1 second railways also as far as a thousand cr order book uh achievement is there 43:08 43 minutes, 8 seconds company on a monthly basis is bidding orders close to 100 crores we are if we are confident that we might improve our 43:16 43 minutes, 16 seconds strike rate then yes by 2030 uh this is achievable But of course uh uh with the 43:24 43 minutes, 24 seconds situations currently that has been going on u it it might have an impact or may 43:31 43 minutes, 31 seconds not it might have a positive impact also. Infrastructure will become a need uh if uh situations 43:40 43 minutes, 40 seconds uh arise. So so infrastructure development is going to remain a key in case of developing or underdeveloped 43:47 43 minutes, 47 seconds nations. That is why uh not just in India but overseas also a lot of opportunities are coming up and if all 43:54 43 minutes, 54 seconds this converts into like what we have planned definitely a thousand color order book is achievable and one more uh uh one more question 44:03 44 minutes, 3 seconds that order book we are having a 256 growth how much for the middle east because right now we are seeing lot of issues happening in middle east right 44:12 44 minutes, 12 seconds like middle east I have yeah middle east I have just visited a month ago okay so We are right now in the process of 44:19 44 minutes, 19 seconds establishing there uh there the there system is very different. It is a monarchy based system not like India 44:27 44 minutes, 27 seconds where it is democ democratic things happen through the king and on on a monarchy level there are governments 44:35 44 minutes, 35 seconds there are departments but definitely things are pretty different so I'm expecting until this year management is 44:42 44 minutes, 42 seconds continuously traveling uh and exploring opportunities we have formed a few associations with local partners also there and hence uh things have been 44:51 44 minutes, 51 seconds moving pretty fast and uh yes there is unstability there right now but uh I feel in in a few months or so uh it will 45:01 45 minutes, 1 second be uh better but as far as infrastructure development is concerned or our sector is concerned infrastructure development is is a need 45:10 45 minutes, 10 seconds actually for any country uh be it Saudi be it UAE or Bahin or Qatar 45:17 45 minutes, 17 seconds infrastructure development has to happen if in in fact in a warlike situation it has to happen it has to be more 45:24 45 minutes, 24 seconds stronger. So there we see very good opportunities for us. 45:30 45 minutes, 30 seconds So the major concentration will be on on India or it will be for like 50/50 or how 45:37 45 minutes, 37 seconds India is going to see uh like like it is there for Middle East. the scale that India will give no other country will 45:45 45 minutes, 45 seconds give because the because of the geographical uh uh diversification that is there 45:52 45 minutes, 52 seconds because of the crime diversification the population if I only consider Saudi Arabia it has a population of 32 million 46:00 46 minutes here only Mumbai has a population of even more than that so the development that will happen in India will be 46:08 46 minutes, 8 seconds massive as compared to foreign so I will get foreigners definitely ely but the massiveness or the uh strong bunch that 46:16 46 minutes, 16 seconds I will get will definitely be orders from India only and with visions like 2047 because it bat and 5 trillion 10 46:25 46 minutes, 25 seconds trillion economy also being made infrastructure MSME are going to play a key role in all this so India is going to remain the crux of 46:34 46 minutes, 34 seconds our business going ahead also yeah because we are seeing a lot of things happening in the Middle East and all Yeah. Yeah. Yeah. Yeah. Yeah. Yes. 46:45 46 minutes, 45 seconds Thank you. Thank you. Yeah. 47:02 47 minutes, 2 seconds Next question come from the line of view and individual investor. Please go ahead. Yeah. Uh thank you for the opportunity. 47:11 47 minutes, 11 seconds Yeah, couple of quick questions I have because this accounting change I just wanted to make the accounting change what will be the revenue this quarter? 47:21 47 minutes, 21 seconds If there was no accounting change we have reported a total unbuild revenue uh reversal of uh 30 cr. So if you reverse 47:31 47 minutes, 31 seconds that uh then that much would have been because this is a book level adjustment for past and future estimation margin. 47:40 47 minutes, 40 seconds So uh uh but if we see we were confident of getting a similar Q1 Q3 Q1 Q2 numbers 47:48 47 minutes, 48 seconds in Q3 also. So it would have been in a similar range if that would not have been there. 47:55 47 minutes, 55 seconds Okay. And second question I wanted to know on your balance sheet uh yeah there is 85 crores or other assets. 48:04 48 minutes, 4 seconds So can you let me know as of September? 48:09 48 minutes, 9 seconds Uh is it okay because I don't have access right now. If you can just drop a mail to us, my team will reply you. Is that okay? 48:18 48 minutes, 18 seconds That's fine. That's not a problem. But I'm not a shareholder. I mean I don't know whether that's still will you still reply or you just reply to reply? Uh so 48:26 48 minutes, 26 seconds my team is there on the call. Uh you can note our email id cs8conultancy.in 48:33 48 minutes, 33 seconds uh and uh uh if if any breakup is on March 25 or September 2025, we can provide provide that to you. 48:43 48 minutes, 43 seconds And just as a suggestion that since you came with accounting page, it would have been nice if you had given the uh you know the balance sheet and cash flows 48:52 48 minutes, 52 seconds this time as well. So yeah, so Q4 it will be there because we get a very short time to to review this. 48:59 48 minutes, 59 seconds there are the dates are pretty uh uh close and we have to give a time. So but 49:06 49 minutes, 6 seconds Q4 we we will be giving a detailed schedule and there will be a detailed auditor's note also along with this there has been no uh items of 49:14 49 minutes, 14 seconds qualification also that has been mentioned by the auditors. It is a clear report and uh that it says justify that there is no problem that has been going on in the company. 49:25 49 minutes, 25 seconds So that that's not issue. So another issue was that uh we have been operating like we have been listed in 2018 and 49:33 49 minutes, 33 seconds it's been like 8 years now but why is it that operational cash flows are not positive like consistently the 49:42 49 minutes, 42 seconds operating cash flows are negative so is it like the nature of the industry? So uh it is I would yes it is partly a 49:49 49 minutes, 49 seconds nature of the industry the nature of our assignments. uh the competition has been pretty uh tough when it comes to uh 49:57 49 minutes, 57 seconds margins now especially in case of the PNC assignments that are there. That is why the company took a certificate called to diversify into other sectors 50:06 50 minutes, 6 seconds where our margins are taken care operational cash flows are taken care because only depending on one client for 50:13 50 minutes, 13 seconds the past seven see that client is giving me a good order book. So that is also a very big thing. But when it comes to 50:20 50 minutes, 20 seconds margins uh we need we felt the need of diversifying into other sectors into other geographies into other clients 50:28 50 minutes, 28 seconds within India also uh which is which is improving year on year uh but only depending on one client and maybe uh one 50:36 50 minutes, 36 seconds type of service in the past has increased the competition also and that is why the operational cash flows have been 50:44 50 minutes, 44 seconds negative but definitely uh in this year itself we can see a significant ificant improvement. 50:51 50 minutes, 51 seconds Just one last question. 50:53 50 minutes, 53 seconds Yeah. From the from your large balance sheet and your your net worth is around 100 crores like give or 51:01 51 minutes, 1 second take. Uh so can you tell me where are this 100 crores residing? Is it in cash? Is it in receivables? Where is it? 51:08 51 minutes, 8 seconds It is a part it is a two part. It is it is it comprises of two parts. One is the share premium that is uh the uh the 51:16 51 minutes, 16 seconds preference isue and the IPO that we did that is one part and second is the reserve and surplus that is the uh 51:22 51 minutes, 22 seconds cumulative profits that have been uh there in the reserve and surplus account. 51:28 51 minutes, 28 seconds I understand that but is it is it in cash or is it in some asset where is it like so of the 100 cr like how much cash are you sitting on? 51:37 51 minutes, 37 seconds Uh no uh I mean that will be as an asset now it will not come in the network. 51:43 51 minutes, 43 seconds That's why I want to understand if no cash is accounted in the in the uh asset part not in the network part. 51:52 51 minutes, 52 seconds I understand so I'm just trying to understand this network where is it because cash is not much. 51:57 51 minutes, 57 seconds So as you know we have guaranteed you have other assets in other assets also there is an other asset which is like 100 crores. So 52:06 52 minutes, 6 seconds rest around 30 cr 40 crores are receivables and you are saying around 100 crores are other assets. So what assets are there? Where is the money? 52:13 52 minutes, 13 seconds That's I just wanted to get an also there are dattors, there is unbuild revenue and there are uh uh loans that 52:20 52 minutes, 20 seconds are going on in addition to that large chunk of it is bank guarantees. Okay. 52:25 52 minutes, 25 seconds For these assignment we have to provide bank guarantees to the government and as and when the project gets completed these bank guarantees are returned to us. 52:34 52 minutes, 34 seconds So my my request to you ma'am this other just need to be elaborated because we just it is very clear to understand the Yeah. Yeah. Yeah. Right. Right. We'll 52:43 52 minutes, 43 seconds take note of this. My team will also take note of this and we try to just a large amount. So 52:50 52 minutes, 50 seconds yeah price is almost indicating that you know the market doesn't believe 100 crores are there. I mean just feedback 52:59 52 minutes, 59 seconds we will do the required change and in the Q4 we will provide a retail breakup as well. Thanks for 53:07 53 minutes, 7 seconds otherwise the math doesn't make sense right because you below even your like network. So right 53:14 53 minutes, 14 seconds there's nothing. So we we will provide no no no we'll provide a detailed break up of it and if required you can drop us 53:21 53 minutes, 21 seconds an email uh we will uh reply to it as well. Okay thank you so much sir. 53:27 53 minutes, 27 seconds Yeah yeah yeah thank you. 53:32 53 minutes, 32 seconds Next question comes from the line of Ashwin and individual investor. Please go ahead. 53:38 53 minutes, 38 seconds Yeah. Hi. Um I just understand this uh the revenue was recognized when the percentage of completion. 53:46 53 minutes, 46 seconds I'm not able to hear I'm not able to hear properly. Yeah. 53:50 53 minutes, 50 seconds I'm sorry. Can you hear me now? Is it better? 53:52 53 minutes, 52 seconds Uh can you hear? Voice is breaking. Your voice is breaking. 53:57 53 minutes, 57 seconds Yeah. Can you hear me now? Is it better now? Yeah. Yeah. Yeah. Yeah. It is better. 54:00 54 minutes Yeah. So I want to know this revenue recognition um which you've done under the completion method was this on a 54:07 54 minutes, 7 seconds gross basis or on a net basis and it is on a gross basis. Yeah it is done on a gross basis and this is just a 54:16 54 minutes, 16 seconds margin reversal. It is not a total revenue reversal as such certain uh this was a management review aligned with 54:24 54 minutes, 24 seconds strengthening our internal control systems in fact. So the revision was prompted by uh we did this only as a 54:32 54 minutes, 32 seconds part of a good governance uh and certain management assumptions that were made earlier have now been revised uh because 54:39 54 minutes, 39 seconds the business is also growing at a larger scale. We are getting good number of orders and hence we wanted to ensure that there is a conservative and a 54:48 54 minutes, 48 seconds transparent financial reporting going ahead. 54:51 54 minutes, 51 seconds Understood. Understood. So I just want to know uh can there be further revisions you know when it comes to like the change of scope for all the current 54:59 54 minutes, 59 seconds projects or can there be like a cost reestimation something like that is a further that happening. 55:08 55 minutes, 8 seconds Yeah. So uh there will be no such further adjustments that will be there in the future. Okay. This is just a one time adjustment that has that has been 55:16 55 minutes, 16 seconds done. Now uh henceforth why it will not happen I would like to give the answer of that as well. As I said that 55:23 55 minutes, 23 seconds management will henceforth have a very conservative approach. Uh NHI has been making certain policy changes with 55:32 55 minutes, 32 seconds respect to the secondary assignments also. Hence we had to align ourselves with those policies with how the projects are going to be completed and 55:41 55 minutes, 41 seconds uh definitely we had to do this so that we have a uh good future and uh a a good 55:49 55 minutes, 49 seconds transparent pictures to the fin to the numbers also but in future I can guarantee no such accounting adjustments uh will be there. 55:58 55 minutes, 58 seconds Okay. 55:58 55 minutes, 58 seconds Yeah. Um lately we've been seeing all your uh orders links have been again still only on the road consultancy 56:05 56 minutes, 5 seconds service. Uh uh could you share you know what is the percentage of these new projects because we've not seen those 56:14 56 minutes, 14 seconds orders coming in as as we've been in the order I mean you've been expecting them for the last one to two years but 56:21 56 minutes, 21 seconds they've not been coming around. I'm only seeing road orders. See anytime in the future also if you see 56:28 56 minutes, 28 seconds you'll see large number of highway projects only because if you see the number of airports itself even if 56:36 56 minutes, 36 seconds developed uh in the next two to three years it will be 200 in number but when it comes to roads it is lacks of 56:42 56 minutes, 42 seconds kilometers. Okay. So the number of projects that will come in terms of highways will any any time any day in 56:50 56 minutes, 50 seconds the future or in the past it has to be more in India or in any country in airports in railways in metros the 56:59 56 minutes, 59 seconds connectivity is not so large when when it is compared with highway even today 57:06 57 minutes, 6 seconds roads is more widely used transport network than any other. So it there will be never there will never be a position 57:13 57 minutes, 13 seconds where highways will have lesser uh number and these will have lower number otherwise then your revenues will come down you have to be a part of the highway development. 57:23 57 minutes, 23 seconds So on on your on an aggregated basis now I go through the majority but like you had newer projects that you pitching for 57:32 57 minutes, 32 seconds but those have not yet come in right? So uh in the past four months itself we have bidded 350 cr of orders and uh we are expecting a strike rate of 20 25%. 57:44 57 minutes, 44 seconds So uh those if are there it will be added in the uh revenue of 26 27 also. 57:52 57 minutes, 52 seconds Okay. Okay. Yeah. 57:54 57 minutes, 54 seconds And can you elaborate on maybe the Saudi opportunity that you may have uh and what are the margins different with the Saudi project? 58:04 58 minutes, 4 seconds is update on the I will not be able to comment on the margin. Uh right now we we already did one project in Saudi 58:11 58 minutes, 11 seconds which we announced a few months ago. It was a small revenue project but uh there uh as far as margins and the efforts are 58:21 58 minutes, 21 seconds concerned when it comes to India it is quite less but the uh revenue side if you see or the chunk of order book that 58:29 58 minutes, 29 seconds I get in India is much more than what I will get in Saudi but definitely as a part of diversifying as a part of say 58:38 58 minutes, 38 seconds not just putting uh everything in one country or just to mitigate risks as such we are diversifying in different 58:46 58 minutes, 46 seconds different sectors. Uh there can be tomorrow change in certain political scenarios also in India or like what is 58:54 58 minutes, 54 seconds happening in Middle East right now. So we need to have our base everywhere so that any situation will not hamper the 59:00 59 minutes company's financial Saudi we are exploring 59:09 59 minutes, 9 seconds if you see online they also have a vision 2030 made where massive uh industrial cities are being developed. 59:17 59 minutes, 17 seconds So if road is going to be a very big part of these industrial cities only from 2019 to 2025 they have grown from 59:27 59 minutes, 27 seconds 19 cities to 42 cities. So there are huge opportunities uh there and uh it is a much more uh larger market than UAE. 59:37 59 minutes, 37 seconds They have plans to make it even more bigger than Dubai actually. So uh we want to enter we want to strategically 59:45 59 minutes, 45 seconds enter into this country in a uh in a very right manner in a very right way. 59:51 59 minutes, 51 seconds So this year the company is focused on expanding in middle east also. 59:56 59 minutes, 56 seconds Just one last question you know over the last few years over the last few years you know we've had some quite a few issues we've had 1:00:04 1 hour, 4 seconds the demar debarment issues now we talking about contract valuations being adjusted. So you know as investors you 1:00:11 1 hour, 11 seconds know corporate governance is something that's coming out as a a little bit of a concern. So what is management doing to 1:00:20 1 hour, 20 seconds uh you know address this uh because yeah so in fact we would we would say that if certain management is looking at 1:00:27 1 hour, 27 seconds it in a way in a in a way of improving the governance. So certain issues that we faced this year be it the accounting 1:00:35 1 hour, 35 seconds level adjustment or the degovernment issues we had to take certain hard calls for further strengthening the governance 1:00:42 1 hour, 42 seconds so that no such thing happen in the future and that is why whatever has been done has been done. The future looks to 1:00:49 1 hour, 49 seconds be bright. We want to provide our investors with much more transparent and good numbers and we respect we know that 1:00:57 1 hour, 57 seconds we are a limited company. investors have trusted us and that is why uh whatever 1:01:04 1 hour, 1 minute, 4 seconds has happened in the past one year we want we have corrected ourselves. We have uh strengthened our internal 1:01:12 1 hour, 1 minute, 12 seconds control systems. We have hired very strong uh accounting, finance uh to 1:01:18 1 hour, 1 minute, 18 seconds through to be it SAP accounting be it uh uh hiring from the uh bigger companies 1:01:26 1 hour, 1 minute, 26 seconds uh and uh further uh management is getting involved in creating second line third line leaders also uh so that there 1:01:34 1 hour, 1 minute, 34 seconds is stronger governance internally because even if we have to cater to the overseas uh market uh there also there 1:01:42 1 hour, 1 minute, 42 seconds is a requirement ment of stronger governance. So in this multi- he expects the company to be a multinational 1:01:48 1 hour, 1 minute, 48 seconds company very soon but that comes uh with stronger governance and hence this company had to go through this change 1:01:57 1 hour, 1 minute, 57 seconds because uh we are now future ready to what whatever project we are going to take up. 1:02:06 1 hour, 2 minutes, 6 seconds Okay. Thank you very much. Wishing you the best. Thank you. Yeah. Thank you. 1:02:13 1 hour, 2 minutes, 13 seconds Ladies and gentlemen, due to the time constraint, that was the last question for today. I would like to hand the conference over to Mr. Harsh Dan Shani from Korean Advisor for closing 1:02:21 1 hour, 2 minutes, 21 seconds comments. Thank you and over to you, sir. 1:02:26 1 hour, 2 minutes, 26 seconds Yes, thank you. Thank you everyone for joining the conference call services. If you have any queries, you can write.com. 1:02:37 1 hour, 2 minutes, 37 seconds Once again, thank you everyone for joining. 1:02:41 1 hour, 2 minutes, 41 seconds Thank you so much sir. On behalf of Kina Adris Private Limited that conclude this content. Thank you for joining us and you may now listen to me. 1:02:49 1 hour, 2 minutes, 49 seconds Thank you.