Dilip Buildcon Limited — Q3 FY26

Dilip Buildcon Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=yGwj65mt7bA Published: 3 months ago

0:00 Ladies and gentlemen, good day and welcome to the deliver buildcon limited Q3 and 9 months FI26 earnings conference 0:07 7 seconds call. As a reminder, all participant lines will be in the listen mode and there will be an opportunity for you to ask questions after the presentation 0:16 16 seconds concludes. Should you need assistance during the conference call, please signal an operator by pressing star then 0:23 23 seconds zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. 0:31 31 seconds Chaitanya Satwei from ADF factor SPR. Thank you and over to you sir. 0:37 37 seconds Thank you. Uh good evening everyone and thank you for joining us today to discuss the audited financial performance for Q3 and 9 FI26. I have with me Mr. Dendra Jen MD and CEO Mr. 0:48 48 seconds Rohan Suyani head strategy and planning Mr. Sanjay Wensil the CFO. Before we proceed, I would like to bring to your attention that certain statements made 0:56 56 seconds during this discussion may constitute forward-looking statements. These statements are based on our current expectations, assumptions, and beliefs 1:03 1 minute, 3 seconds regarding future developments and are inherently subject to various risks, uncertainties, and factors beyond our control. Such forward-looking statements 1:12 1 minute, 12 seconds involve both known and unknown risks, and we advise you to interpret them with caution. I will now hand over the call to Mr. Rohan Suryan Chi for his opening 1:20 1 minute, 20 seconds remarks. Thank you, and over to you, sir. Thank you, Chhattanya. 1:32 1 minute, 32 seconds Good evening, everyone and a warm welcome to all our investors and analysts uh partners to the Zilla Bitcoin Limited's quarter 3 FY26 earnings conference call. 1:42 1 minute, 42 seconds The financial results and investor presentation for the quarter have already been uploaded on the stock exchanges and we trust that all of you have had the opportunity to go through them. 1:53 1 minute, 53 seconds To begin with, I would like to share some perspective on the overall sector environment and policy landscape before I move to DBL's business and strategic updates. 2:04 2 minutes, 4 seconds The government of India continues to maintain a strong long-term focus on infrastructure development as a key driver of economic growth. 2:12 2 minutes, 12 seconds We welcome the government's continued push on capex in the union budget and the allocation of rupees 12.21 21 2:20 2 minutes, 20 seconds trillion towards capex for FY27 represents an almost 12% increase over the revised FY26 estimate. 2:32 2 minutes, 32 seconds Let me also add this is nearly four times higher than the 2014 levels when the BJP led government came to power. 2:42 2 minutes, 42 seconds Increased allocations to key segments such as road and railways broadly in line with the nominal GDP growth provides sustained growth visibility for 2:50 2 minutes, 50 seconds the sector. The signals continued commitment towards infrastructure creation, employment generation and increasing domestic competitiveness. 3:03 3 minutes, 3 seconds From a regulatory standpoint, the recent reforms announced by SEB for REITs and invits are a positive structural development for the India's 3:11 3 minutes, 11 seconds infrastructure ecosystem by enhancing flexibility around asset holding, leverage, and capital deployment. These measures are expected 3:20 3 minutes, 20 seconds to deepen long-term institutional participation in infrastructure financing. 3:25 3 minutes, 25 seconds And for multi-asset infrastructure players like DBL, this strengthens our asset monetization pathways across the project life cycle 3:34 3 minutes, 34 seconds and support sustainable capital recycling. 3:39 3 minutes, 39 seconds Now turning to sector activity awarding during the first half of the financial year in fact for the first nine months 3:46 3 minutes, 46 seconds has remained largely subdued account of various state elections and other administrative delays. 3:54 3 minutes, 54 seconds However, we are seeing some momentum gradually building across multiple vert infrastructure verticals. 4:01 4 minutes, 1 second In the road sector, the awarding has been muted till now and we expect uh the government to at least push out a large 4:09 4 minutes, 9 seconds number of contracts in the remaining part of the financial year. 4:15 4 minutes, 15 seconds Beyond roads, other infrastructure segments such as water supply, irrigation, metro, rail, and urban infrastructure continue to have healthy medium-term pipelines. 4:26 4 minutes, 26 seconds The extension of timelines in the gel jan mission and renewed emphasis on urban infrastructure are expected to support execution visibility over the 4:34 4 minutes, 34 seconds next few years for DBL and other companies which are participating over multiple sectors. 4:41 4 minutes, 41 seconds Now coming to DBL's business performance, I'm very happy to report that the company's order book currently stands at 4:48 4 minutes, 48 seconds the highest level in DBL's history and it is also the most diversified across sectors till date. 4:58 4 minutes, 58 seconds Now with elections behind us and the pace of awarding showing early signs of recovery, 5:04 5 minutes, 4 seconds we're very happy about future prospects for the company in the next couple of years as well. 5:13 5 minutes, 13 seconds Now during FY26 year to date DBL has secured order inflows of approximately 5:21 5 minutes, 21 seconds 17,900 crores which is already over the full year order inflow guidance that we had set at 5:29 5 minutes, 29 seconds the beginning of the year and with some more one and a half month of awarding activity remaining we hope 5:38 5 minutes, 38 seconds to win some As we have consistently communicated in 5:48 5 minutes, 48 seconds earlier calls, our approach to order book booking remains selective. We continue to prioritize profitability, 5:57 5 minutes, 57 seconds cash flow visibility and return ratios over pure topline growth. In this context, EPCR DBL increasingly plays the 6:05 6 minutes, 5 seconds role of a capital efficient execution and incubation engine enabling the creation of longduration monetizable platforms rather than being 6:14 6 minutes, 14 seconds viewed purely as a volumedriven profit center. 6:19 6 minutes, 19 seconds Now, of course, DBL's business has been impacted by lower execution volumes during this year, which was a direct consequence of lower order book. 6:31 6 minutes, 31 seconds which in turn affected our operating leverage which did not work at its full efficiency. 6:39 6 minutes, 39 seconds Now as N execution normalizes in the coming year given the large order 6:45 6 minutes, 45 seconds book that we already have and with the improved awarding momentum that we expecting operating 6:54 6 minutes, 54 seconds efficiencies and margin profiles should improve accordingly. 6:59 6 minutes, 59 seconds At the same time, let me also add that we have remained focused on structural cost estimization. 7:07 7 minutes, 7 seconds Employee strength over the years have been rationalized. 7:12 7 minutes, 12 seconds From a peak of 38,000 employees, today we stand at 19,000 employees, which is a half. However, revenues have remained in that same range barring this year. 7:23 7 minutes, 23 seconds Also very important to add annual capeex has also moderated to around 100 crores in the last uh few years compared to 7:32 7 minutes, 32 seconds peak levels of around 500 crores every year which it means almost 1/5 reduction 7:39 7 minutes, 39 seconds of 1/5 uh the value of earlier times and reflects our disciplined capital 7:48 7 minutes, 48 seconds allocation framework under the DBL 2.0 grow. 7:53 7 minutes, 53 seconds More importantly, the majority of our growth capex across our assetled business is already behind us, which materially improves free cash flow 8:01 8 minutes, 1 second visibility as execution and production scale up. 8:06 8 minutes, 6 seconds On the asset monetization levels, our init strategies remains to progress continues to progress broadly in line with the road map shared earlier. 8:16 8 minutes, 16 seconds As of date, seven ham assets have been transferred under our invit platforms with the remaining assets at various stages of construction and completion. 8:25 8 minutes, 25 seconds The balance assets are to be monetized in two branches. One in June 26 with 8:31 8 minutes, 31 seconds four assets and remaining by March 27 aligned with the COD milestones. 8:40 8 minutes, 40 seconds I would also like to briefly touch upon Anantum Highways Invit which has now been successfully listed. We view 8:47 8 minutes, 47 seconds Anamantum not as a onetime monetization event but as a long-term annuity platform providing predictable distributions 8:55 8 minutes, 55 seconds and treasury like cash inflows with retained unit value 9:02 9 minutes, 2 seconds while also simultaneously enabling time bound deleveraging at the consolidated level. at the parent. 9:11 9 minutes, 11 seconds Now coming to our mining business which remains central to DB's long-term performance and transformation. 9:18 9 minutes, 18 seconds Our core MD operations continue to scale up steadily and are progressing broadly in line with our internal plans at the CRML mine. 9:31 9 minutes, 31 seconds Uh production during quarter 3 stood at approximately 7.01 0 1 million tons. 9:40 9 minutes, 40 seconds Taking the cumulative 9 month production to about 15 million tons and for the full year we expect production of around 23 million tons. 9:51 9 minutes, 51 seconds At the Pachuada coal mine production during the quarter was 1.74 million tons with FY26 9:59 9 minutes, 59 seconds total production expected to be around 6 to 6 and a half million tons. 10:05 10 minutes, 5 seconds On a consolidated basis, DBL expects coal production of approximately 30 million tons in FY26. 10:15 10 minutes, 15 seconds Over the medium-term, we remain on track to achieve coal production of around 57 million tons by FY29, 10:23 10 minutes, 23 seconds which would represent approximately 8 to 9% of India's total coal output. 10:29 10 minutes, 29 seconds With long tenure contracts, high operating margins, limited investment risk, and majority of capex 10:36 10 minutes, 36 seconds already deployed, mining is increasingly emerging as a central Ibida and cash flow engine for the company. 10:47 10 minutes, 47 seconds Now, let me touch upon you know a question that we ask very get asked very frequently about the debt levels 10:54 10 minutes, 54 seconds on the balance sheet. While the debt levels may appear elevated in the near term, this is largely a temporary 11:01 11 minutes, 1 second phenomena driven by lower execution and is expected to rationalize as execution picks up and asset moni monetization and cash flows scale up. 11:13 11 minutes, 13 seconds Now compared to peak levels, DBL has already achieved meaningful debt reduction at both standalone and 11:20 11 minutes, 20 seconds consolidated levels in line with the milestones outlined under DBL 2.0. 11:27 11 minutes, 27 seconds To give some perspective, debt which stood at 3,500 crores in FY21 had reduced significantly,500 crores in FY25. 11:40 11 minutes, 40 seconds This is why we were building so many assets. 11:45 11 minutes, 45 seconds Even though currently net debt stands at around 2100 crores and we expect this to 11:52 11 minutes, 52 seconds remain around this levels only by the end of the financial year. One thing to note is that 11:59 11 minutes, 59 seconds had DBL not retained its assets in the invert units we would have significantly reduced again these 2100 crores of debt 12:08 12 minutes, 8 seconds right now we have almost 1,400 crores of init units in Anantam highways and about 200 crores of units in Shrem Invit which 12:18 12 minutes, 18 seconds means 1,600 crores of invert units that we have presently against this 2100 crores of debt that we could have had we 12:26 12 minutes, 26 seconds not engaged in this strategic shift where we wanted to own our assets, we would have reduced our debt. 12:35 12 minutes, 35 seconds Let me also add one more important aspect here. 12:39 12 minutes, 39 seconds The remaining 11 assets which are to go into the shame in into the Anantam highways invit only about 200 to 250 crores of 12:49 12 minutes, 49 seconds investment left to be made in them. But the in which that units that we will get against it is about 2,000 crores 12:58 12 minutes, 58 seconds which means still a net in inflow of 187 17 to 1,800 crores. So if I total these 13:06 13 minutes, 6 seconds init units the 1,600 crores today plus the 17 to800 crores that is still to 13:12 13 minutes, 12 seconds come against the debt of 2100 crores we are already beyond the range and we would have been debtree. 13:21 13 minutes, 21 seconds Now our plans of reducing this debt has largely been hampered because of the 13:29 13 minutes, 29 seconds lower ordering activity by the national government in the last 2 years. And this is a problem that the cons overall industry has faced. Our order book for 13:39 13 minutes, 39 seconds the last two years was the lowest that it had been in almost 7 to eight years. 13:47 13 minutes, 47 seconds Because of which our execution capabilities and what we had prepared for in terms of 13:55 13 minutes, 55 seconds full deployment could also not be fully utilized and hence the revenue reduced and proportionately we were not able to 14:03 14 minutes, 3 seconds reduce debt. Going forward as we are able to maximize on our operating leverage we expect in the next year we will 14:12 14 minutes, 12 seconds reduce debt of about 7 to 800 crores. 14:17 14 minutes, 17 seconds Now this is remarkable for a company while which has held these while which has built these assets and also 14:27 14 minutes, 27 seconds continued on their journey of debt reduction. 14:32 14 minutes, 32 seconds Our goal remains to be net debtree and we are targeting FI28 but we will we will give more color on that as the 14:41 14 minutes, 41 seconds years progress and other execution goes on. Over 14:51 14 minutes, 51 seconds the medium term, our objective remains to transform DBL into a diversified multi-asset infrastructure platform 14:59 14 minutes, 59 seconds where a significant majority of our profitability will be driven by longduration assetbacked business such 15:06 15 minutes, 6 seconds as mining ham assets in which and the selectively incubated renewable platforms plus transmission mission assets plus water ham assets. 15:19 15 minutes, 19 seconds Now this transition like I said is aimed at delivering predictable cash flows improving ROIs versus historical levels 15:28 15 minutes, 28 seconds and reducing the cyclicality that is in our business. 15:35 15 minutes, 35 seconds With that I now hand over the call to CFO Mr. Sanjay Gansul who will take you through the financial performance for the quarter. 15:44 15 minutes, 44 seconds Uh thank you Rohanji. Uh good evening everyone. I welcome all our stakeholders to our earning call. 15:52 15 minutes, 52 seconds Let me present key highlights and 9 month uh results of 9 months ended 31st December 2025. 16:01 16 minutes, 1 second During 9 month period ended 31st December 2025, the company added 10 16:08 16 minutes, 8 seconds projects worth 17,565 cr uh and completed four projects uh aggregating 16:16 16 minutes, 16 seconds to 2744 cr. Now let me uh update on the business 16:23 16 minutes, 23 seconds to finance financial performance on standalone basis uh 9 months 16:31 16 minutes, 31 seconds yi the revenue uh decreased by 23.09% 09% to rupes 5,145 16:40 16 minutes, 40 seconds cr from 6,690 cr. In the similar period last year, the beta decreased by 22.91% 16:50 16 minutes, 50 seconds to rups 535 cr from rupees 694 cr. 16:56 16 minutes, 56 seconds The profit after tax increased by 193.56% to rupees 775 cr. from rupes 264 cr. The 17:06 17 minutes, 6 seconds increase in profit after tax is mainly because of the exceptional gain received by the company uh from uh flipping of 17:15 17 minutes, 15 seconds seven uh assets to an uncom init console basis 17:23 17 minutes, 23 seconds the revenue for first 9 months decreased by 18.69% 69% to rups 6,684 17:31 17 minutes, 31 seconds cr from rups 8,221 cr. The beta decreased by 7.82 cr 7.82% 17:41 17 minutes, 41 seconds uh to rupes 1,373 cr from rups 1,490 cr. The profit after 17:48 17 minutes, 48 seconds tax increased by 126 odd% to rups 1,275 17:55 17 minutes, 55 seconds cr from rups 563 cr. And this is mainly because of the exceptional item from the 18:02 18 minutes, 2 seconds divestment to invit. Now we can open the floor for the questions and answers. Thank you. 18:10 18 minutes, 10 seconds Thank you very much sir. We will now begin the question and answer session. 18:14 18 minutes, 14 seconds Anyone who wishes to ask a question may press star and one on your touchstone telephone. 18:21 18 minutes, 21 seconds If you wish to withdraw yourself from the question queue, you may press star and two. 18:28 18 minutes, 28 seconds Participants are requested to use handset while asking a question. 18:33 18 minutes, 33 seconds Ladies and gentlemen, we will wait for a moment while the question queue assembles. 18:47 18 minutes, 47 seconds The first question comes from the line of Vignesh Ayar with Sequent Investments. Please go ahead. 18:53 18 minutes, 53 seconds Uh hello sir. Uh thank you for the opportunity. So my first question uh you know uh is more on the uh execution side 19:03 19 minutes, 3 seconds of it. uh so I see our order book at the end of this quarter is around 29,300 crores which is like probably the 19:10 19 minutes, 10 seconds highest since FI22 and after you know a lot of quarters where the order inflow was not there so 19:17 19 minutes, 17 seconds with this issues of order sorted order book sorted now more or less how do you see the execution uh you know going 19:27 19 minutes, 27 seconds forward like maybe in FI27 u majorly on uh the you know revenue new growth. Uh if you could uh give uh some idea on that. 19:39 19 minutes, 39 seconds Uh thank you for your question sir. Uh so you're very right. This order book is actually the highest in the country uh in the company's history and it is also 19:47 19 minutes, 47 seconds the most diversified uh that we have had built till now without relying on any one single sector. Uh so that is also a very 19:55 19 minutes, 55 seconds important bit of this order book. uh with this order book obviously gives us tremendous optimism for next year 20:02 20 minutes, 2 seconds because all these projects will be coming online and in execution. So I'm happy to say that at least we are expecting uh around 10,000 crores of 20:12 20 minutes, 12 seconds revenue in next financial year given the healthy order book that we have. Uh obviously in this financial year the 20:20 20 minutes, 20 seconds numbers have been muted but there'll be a significant uh jump from this financial year to next financial year. 20:26 20 minutes, 26 seconds uh uh in terms of almost I would say from wherever we'll close to 30% plus to 20:34 20 minutes, 34 seconds 30 to 40% growth from this year's number to next year's financial uh performance. 20:42 20 minutes, 42 seconds Uh uh so sir uh if I understand it right uh usually our quarter 4 is the strongest quarter when it comes to 20:49 20 minutes, 49 seconds execution. uh I mean would this quarter 4 uh you know uh see uh some growth or 20:57 20 minutes, 57 seconds maybe at the same levels uh to that of last last year same quarter uh or would we see the accelerated ex execution of order book only from next year? 21:10 21 minutes, 10 seconds No, not in this quarter because the order book that we have won right now see whenever you win an order it takes at least 6 months for revenue to start 21:19 21 minutes, 19 seconds flowing from them in NPC and for ham projects and PV projects is usually a little longer than that. So hence this 21:25 21 minutes, 25 seconds quarter 4 will be uh will be in line with the overall numbers that we have set and we think expect to close our 21:33 21 minutes, 33 seconds year end about 7,000 to 7,500 crores in between. uh but like I said the next year will be a uh a big jump given the 21:43 21 minutes, 43 seconds order book that we have in hand and given the diversification of the order book that we have. It's also important to note that while we divers and with 21:50 21 minutes, 50 seconds this huge order book, we also have laid the foundation for that multi-asset uh approach ownership of assets over 21:59 21 minutes, 59 seconds long-term. You know, we have gone into renewable assets, we have gone into water uh ham assets, we have also gone 22:06 22 minutes, 6 seconds into transmission assets. So, currently if you look at our business, the three pillars to it is one is mining. The 22:15 22 minutes, 15 seconds second will be this the invitam highways. What will add to anantam invit and others are all these other assets 22:23 22 minutes, 23 seconds that I mentioned the renewable transmission and the water assets. Along that we have the EPC machine of DBL 22:32 22 minutes, 32 seconds which will continue to build all these assets uh in the in a profitable manner and on time. So it will this strategy 22:42 22 minutes, 42 seconds gives the EPC business also visibility plus it also helps us build our long-term assets where just like what we 22:50 22 minutes, 50 seconds have done for Anandam highways we will be going with partnerships over these other asset classes as well and look at 22:57 22 minutes, 57 seconds partners where we can build long-term platforms. 23:03 23 minutes, 3 seconds Okay. Uh okay sir and uh on uh debt uh debt part of the business uh on the standalone debt. So we have ended uh uh 23:12 23 minutes, 12 seconds this quarter almost on par with what it was in September. So are we on a track 23:18 23 minutes, 18 seconds to reach 1500 kes uh uh net debt by end of the this financial year as guided in the last quarter? 23:28 23 minutes, 28 seconds No sir like I said over in my opening remarks we are expecting debt levels to remain this around this level only where 23:35 23 minutes, 35 seconds where it is currently given the muted execution that has happened. Uh when we had originally started the year we were 23:43 23 minutes, 43 seconds expecting 8 and a half thousand crores of revenue but that has obviously reduced greatly and which has impacted uh our operating leverage and hence 23:51 23 minutes, 51 seconds which has impacted profitability and the ability to reduce debt. uh but like I said next year we are looking to reduce 23:59 23 minutes, 59 seconds that of 7 to 800 crores we will reduce it from the levels that we'll close this financial year at so that remains on track but like I also pointed out 24:08 24 minutes, 8 seconds earlier if you look at the assets that DBL already has typically EPC companies sell out whatever uh PPP projects that 24:16 24 minutes, 16 seconds they do if you look at my peer groups as well and hence that balance sheet remains uh lighter in our case this time we decided to hold those assets 24:25 24 minutes, 25 seconds So if you look at the assets that we are already holding on completed in terms of completed there is 1,400 crores of units of anantam and then there is 200 crores 24:33 24 minutes, 33 seconds of units of sh which means 1 1600 crores of unit of assets that we have not sold which would have helped us reducing our 24:40 24 minutes, 40 seconds debt and would have remained from 2100 levels it would have remained around 4 500 or 600 crores of levels. So that's 24:47 24 minutes, 47 seconds important also one another thing important even in our coal SPV we are having currently fixed deposits and 24:54 24 minutes, 54 seconds about uh 400 uh to plus uh crores currently. So there is that also which 25:02 25 minutes, 2 seconds is in my on my coal uh SPV books. So there is significant or I think this that number is around 490 crores as the 25:10 25 minutes, 10 seconds end as the quarter ended. So almost 500 crores of uh fixed deposit standing on my coal SPVS. So when you look at the 25:19 25 minutes, 19 seconds company in whole there is a lot of cash flows that are that is there uh and while our earlier endeavor has not 25:27 25 minutes, 27 seconds materialized as we envisage because of the low ordering in the last two years like I've said but with the great order book that we have today uh we are 25:36 25 minutes, 36 seconds expecting that the debt reduction would happen in that uh uh over the next year and we will also by next year also have 25:44 25 minutes, 44 seconds in total by the end of next year we will have in total almost 3500 crores of init units. 25:51 25 minutes, 51 seconds So with a reduced debt level and an inmit units of about 3,500 crores that we will have that the company when you will look at that we will still be 25:59 25 minutes, 59 seconds almost uh I would say 2,000 cr plus of cash surplus. 26:06 26 minutes, 6 seconds Okay. Okay. So there's one last question from my side. uh I've been uh looking at your working capital days right for last 26:13 26 minutes, 13 seconds four quarters there has been consistent increase in inventory days from 75 to now 132 in almost four to five quarters 26:21 26 minutes, 21 seconds whereas our uh regular level of inventory days have always been around 65 to 80 85 is there any specific reason 26:30 26 minutes, 30 seconds for uh such an increase in inventory days so uh 26:37 26 minutes, 37 seconds uh uh the inventory uh if you can see the balance sheet the inventory has not increased from 31st March 2025. It 26:46 26 minutes, 46 seconds remained almost same or even lesser than 31st March 2025. However, you can see the the uh revenue of the company 26:55 26 minutes, 55 seconds reduced significantly. So basically the denominator uh reduced per day sales reduced. Okay. So that is why the 27:03 27 minutes, 3 seconds increase in the number of days in the uh creators in the dattors uh and the 27:10 27 minutes, 10 seconds inventory. So once as um Rohanji said because we have a great order book now. 27:19 27 minutes, 19 seconds So going forward the execution will increase and the company will uh basically achieve the numbers what we 27:26 27 minutes, 26 seconds were uh plugging in past. So then the working capital days will uh again uh 27:34 27 minutes, 34 seconds basically be the uh uh like we had in past. So it will not increase from here. 27:40 27 minutes, 40 seconds It will basically decrease basis our higher execution in coming quarters. Okay sir. Got it sir. Uh thank you. 27:47 27 minutes, 47 seconds That's all from my s. Thank you. 27:52 27 minutes, 52 seconds Thank you. Participants who wish to ask a question may press star and one on their touchstone telephone. 28:00 28 minutes The next question comes from the line of Shan Sha with Dollar Capital. Please go ahead. 28:07 28 minutes, 7 seconds Uh hi uh thank you. Uh first of all congratulation on historic order win 17,500 K plus uh this year. So uh congratulations on that front. 28:18 28 minutes, 18 seconds Thank you Shan G. Thank you. 28:20 28 minutes, 20 seconds Yeah. uh sir so you have already said uh this uh year you are looking at 7,7,500 28:27 28 minutes, 27 seconds revenue next year 10,000 cr which is 30 40% growth so on the margin front so 28:34 28 minutes, 34 seconds till now 10.4% 4% so in the fourth quarter I hope would be the similar but from FI27 how one can look at the a 28:44 28 minutes, 44 seconds margin there uh shi the margins for this uh quarter 28:51 28 minutes, 51 seconds quarter four will remain in line with what has been done for this year uh next year we are expecting increase in IDA 29:00 29 minutes level and we're expecting in that to be in the range of 12 to 13%. Uh so that is what we are so 12% plus we will be 29:07 29 minutes, 7 seconds targeting and uh let's see how the execution progresses okay and uh how much order that we have 29:17 29 minutes, 17 seconds already bidded and where bid is yet to open uh there's already about 15,000 crores 29:26 29 minutes, 26 seconds of orders where we have bidded which are expected to open and about 70,000 crores is the pipeline 29:34 29 minutes, 34 seconds of NHI that I'm sure you must be very well aware of how much of that will materialize we don't know. 29:40 29 minutes, 40 seconds Yeah. So that I was about to ask so that is is there uh who knows that answer I 29:47 29 minutes, 47 seconds want to find that person chairman secretary M and the honorable minister would be a better place to answer that. 29:57 29 minutes, 57 seconds Yeah. So uh so we can we can uh uh and and this this 15,000 K that we have bidded uh any any specific from the NHI that we have already bidded. 30:12 30 minutes, 12 seconds Yeah, most of these are NHI uh Shan G. 30:16 30 minutes, 16 seconds Okay. Okay. So maybe we can uh further more orders by by end of March. So any 30:24 30 minutes, 24 seconds any idea maybe at 4 5,000 or more that one can look at 30:31 30 minutes, 31 seconds uh ch honestly that will depend on how the bidding is and how aggressive other players are at because we have always maintained uh that we want to be working 30:39 30 minutes, 39 seconds on our own margins and which is why we diversified across all these sectors so that our margins don't take a hit and we can make use of our you know all our 30:48 30 minutes, 48 seconds equipment and the capex that we had done over the past years. uh which is why also when you look at the current order book it's also the most diversified so 30:55 30 minutes, 55 seconds we are not relying on one sector uh we would like to have orders in in the road sector but at our at our margins so hopefully we have seen some 31:04 31 minutes, 4 seconds rationalization that has started to happen in future I hope more rationalization will happen in the road sector uh and we remain optimistic with 31:12 31 minutes, 12 seconds that with the government also taking uh accountability of some of its strategic uh sort of initiative which have not really worked worked out well for them. 31:24 31 minutes, 24 seconds Yeah. No, no. So I was trying to understand across all the sectors broadly how one can look at more extra 31:31 31 minutes, 31 seconds orders by by March kind of a three four 5,000 cr is the one can can 31:41 31 minutes, 41 seconds look at easily can be can be won. 31:47 31 minutes, 47 seconds Shanji there are some more orders you know but the problem is uh we are tracking other sectors and looking to 31:53 31 minutes, 53 seconds bid out but typically what happens is uh a lot of times the dates for uh you know 32:00 32 minutes the last date of filling uh is usually postponed and even after once it's done the date of opening of tenders in a lot 32:08 32 minutes, 8 seconds of cases are postponed. So because of that it is extremely difficult for us to be able to comment with certainty of how 32:15 32 minutes, 15 seconds much will actually translate in the next 45 days. Uh we can only say we're looking and we are uh there are a lot 32:23 32 minutes, 23 seconds some more about 3 to 5,000 crores of project that we are looking at but the dates uh to be very certain and to give 32:30 32 minutes, 30 seconds you that whether it will all close by 31st March is is really beyond uh the scope of what we would be able to tell 32:37 32 minutes, 37 seconds you. Got it. But and in next year then we slow it down in terms of the inflow 32:43 32 minutes, 43 seconds or given the uh the overall awarding is is muted at at industry 32:50 32 minutes, 50 seconds level for next year also similar 15 20,000 cr that's the way we are we are now looking at 32:58 32 minutes, 58 seconds see so first if I talk about the larger industry shanj I think the order inflow for the next year should be better because I think in the last couple of 33:07 33 minutes, 7 seconds years we've seen muted orders from the government especially in uh so especially in roads so that's why I think that order inflow should uh 33:15 33 minutes, 15 seconds happen uh for us we are targeting about 10 to 15,000 crores of orders uh selective basis uh now how much that 33:24 33 minutes, 24 seconds translates and what kind of orders we get at what margins will also kind of depend uh if we like if we find something which is opportunistic and a 33:32 33 minutes, 32 seconds good ad to our portfolio we might end up taking that but our target would obviously be around 10 to 15,000 crores of new order inflow next year too. 33:41 33 minutes, 41 seconds Okay. And and there also where we are open for even B tools also. 33:48 33 minutes, 48 seconds Yes, we already have a partner for the road sector. So we already have a platform. We already have a partner with alpha where they've already raised 5,000 33:56 33 minutes, 56 seconds crores uh to invest in green field or brownfield projects. So that uh kitty 34:03 34 minutes, 3 seconds remains open to us where we can uh go along and bit for our beauty projects as well. So there is nothing that stops us 34:11 34 minutes, 11 seconds from doing that. So and even for other sectors like I mentioned uh we are we'll be building those partnerships as well 34:18 34 minutes, 18 seconds as uh uh time goes on and in the few quarters we'll update you how that progress looks. Uh so our idea is very 34:27 34 minutes, 27 seconds determined that we want to set up platforms with uh highquality partners which provides long-term sustainable 34:35 34 minutes, 35 seconds predictable cash flows for the company while in the short-term providing EPC opportunity for the company. 34:43 34 minutes, 43 seconds Okay. Got it. Got it. So so given now the order info is higher. So in terms of capex we will be uh increasing the capex 34:52 34 minutes, 52 seconds for next year. So maybe in the fourth quarter how much more till now in terms of if I look at net level it is kind of a flat nothing is done in terms of the 35:01 35 minutes, 1 second new and the sale of assets. So for fourth quarter and maybe next year given the order info is there. So are there 35:08 35 minutes, 8 seconds any specific order orders where we need to go for uh new equipments? 35:15 35 minutes, 15 seconds Yes. Uh so shi firstly in the quarter four we are not expecting any capex. uh so that's the first part of your question for the next year also there 35:23 35 minutes, 23 seconds might be replacement kex but that will also all be in that 100 crores and lower range that is what we're targeting so uh 35:31 35 minutes, 31 seconds see our idea is not to get into sectors where we have to take some specialized equipment like I don't we won't we don't envisage going into a let's say tunnel 35:40 35 minutes, 40 seconds boring machine where where that will be used whatever we have we're going to be doing using those assets to do whatever 35:48 35 minutes, 48 seconds uh new sectors that We also want to continue to focus and for a into so that's the idea. So even next year you can be remain assured that that capeex 35:56 35 minutes, 56 seconds will be that that fiscal discipline that we had mentioned when we announced our 2.0 which has remained in line. We have not done our capex has broadly been in 36:04 36 minutes, 4 seconds that 100 crores kind of range over the last 2 three years and that's how it will remain that's the idea of the company with the short term sir. Yeah. 36:14 36 minutes, 14 seconds And these are 1,400 K units of Anandam and 200 K same and further once we transfer the balance to the uh so 36:22 36 minutes, 22 seconds another 2,000 K that we will be getting by in FI 27. 36:28 36 minutes, 28 seconds Uh so just wanted to understand so we will continue to hold and we only keep on getting the whatever the dividend 36:35 36 minutes, 35 seconds distribution or or or there are plans uh to to even uh encase this. 36:43 36 minutes, 43 seconds Now our strategy is to hold those assets the distribution that we will get from there you know uh once all that 36:52 36 minutes, 52 seconds materializes whether it's our internal debt reduction or to invest in further new projects that will be the idea to grow that init platform the idea is very 37:01 37 minutes, 1 second clear we will not be looking to monetize that on a short-term basis it's a it's the whole idea of setting up that 37:08 37 minutes, 8 seconds platform with a financial investor was to think of how can grow that init platform uh into one of the larger ones 37:16 37 minutes, 16 seconds in India. That was that is the goal for us as a company because not only will be that the pure 37:22 37 minutes, 22 seconds pure play EPC opportunity that we will do but also the long-term maintenance operations and maintenance revenue that 37:30 37 minutes, 30 seconds the company that will be like an annuity like revenue for the company whether it is for our own assets or the other assets that we add on the invit. So that 37:38 37 minutes, 38 seconds is also something for our aging equipment bank we will want to do that. 37:44 37 minutes, 44 seconds Got it. and and uh in terms of MDO are are are any any uh thoughts or are are 37:50 37 minutes, 50 seconds we thinking in terms of kind of a value unlocking through uh listing or anything at least in next one or two years. 38:03 38 minutes, 3 seconds So MD opportunity also is performing well for us. Uh we've also added another boxite mine uh um to our mining 38:12 38 minutes, 12 seconds operations. So we are widening the scope of from just pure play coal we are widening it to other uh segments of mining as well and whatever MD 38:21 38 minutes, 21 seconds opportunity comes we are looking at all of them in an opportunistic manner. Uh as for listing and all that uh those are 38:29 38 minutes, 29 seconds the conversations for a later time as we decide whether you know and what our shareholders also kind of suggest around 38:36 38 minutes, 36 seconds it. uh if there is more value to be created into demerging and having it off into a different platform where 38:43 38 minutes, 43 seconds different risk with different reward profile with different set of investors we will take that call uh with completely with our shareholders uh sort of in line and approval. Yeah. 38:54 38 minutes, 54 seconds Yeah. Last two questions uh CFO said this quarter the exceptional gain 577 39:01 39 minutes, 1 second or K. So how much will be the tax in in the P&L that against for this 577 cr. 39:09 39 minutes, 9 seconds So basically the financials are made basis the old tax resign the total tax 39:16 39 minutes, 16 seconds for 9 months is taken at 113 cr. Uh first of all uh let me tell you for the MET calculations the 39:25 39 minutes, 25 seconds uh the the the gains on account of uh clipping asset to initate and getting units that is exempted under section 39:34 39 minutes, 34 seconds 4717 of the income tax act. So there is no income tax on the gains. the uh 39:41 39 minutes, 41 seconds income tax uh will be basis uh other other business and other profits other than this capital gain. So 39:51 39 minutes, 51 seconds okay so so broadly the whatever the excessal gain is is there that is directly shifted to the pet. 39:58 39 minutes, 58 seconds Yes. Exactly. 40:00 40 minutes Okay. Okay. And uh in terms of in the third quarter uh the out of income how 40:08 40 minutes, 8 seconds much is is from the uh distribution from the inmates and others the 63 cr that other income that we have out of that how much is from the from the inmates. 40:20 40 minutes, 20 seconds So uh let me tell you uh Shan G the units of shrimp in which units were 40:27 40 minutes, 27 seconds held at DBL and DAPL level. DBL units we have ex exhausted up to quarter 2. So 40:34 40 minutes, 34 seconds quarter 3 in DBL there was no units uh outstanding uh of uh shrimp init the 200 40:42 40 minutes, 42 seconds 7 crore units are in dappl which is 100% subsidiary. So there we received the distribution in quarter 3 but in quarter 40:50 40 minutes, 50 seconds 3 uh DBL there is 63 cr other income out of the total other income 6 and a half 40:57 40 minutes, 57 seconds cr is basically FDR uh interest on FDR uh around 14 cr 14 15 cr is from the 41:05 41 minutes, 5 seconds profit on sale of assets and the uh 42 cr uh on the uh leasing income from the SPVS. 41:15 41 minutes, 15 seconds Okay. Okay. Got it. And and the in the PPT this structure equity the the equity divestment tracker the slide 29. So uh 41:25 41 minutes, 25 seconds uh can you can you uh explain what this is structure equity from acquirer for transmission and for solar. 41:34 41 minutes, 34 seconds So basically uh Shan G uh the solar and transmission projects are very large. uh the equity requirement for solar project 41:43 41 minutes, 43 seconds is uh 2,00 1,255 cr. So out of that basically we propose to basically raise. 41:52 41 minutes, 52 seconds So basically while bidding we made uh bidding basis uh we will put a marginal 41:59 41 minutes, 59 seconds equity in the project and balance equity we will basically raise as me debt at the solar hold level. We have created a 42:07 42 minutes, 7 seconds solar hold below DVL which holds the solar assets and we will raise the mess 42:13 42 minutes, 13 seconds debt there uh to fund the part equity and basically the mess debt will be paid 42:21 42 minutes, 21 seconds out of the forward uh sale of the equity on completion as per the consition agreement. Uh similarly for the 42:29 42 minutes, 29 seconds transmission also the invisas uh to raise uh the mess debt. So basically while bidding the this phenomena was 42:37 42 minutes, 37 seconds fixed uh within the uh management uh we will not put 100% equity uh in those projects. 42:45 42 minutes, 45 seconds Uh okay so so for from our DBL standalone per se if I have to look at this solar and transmission so put together would be a closer to a 1,700 K. 42:57 42 minutes, 57 seconds So how much we will be putting equity from our side? So around around 200 cr 43:04 43 minutes, 4 seconds equity will be put in by DBL in both the projects and balance will be raised uh at the hold level uh as measur 43:13 43 minutes, 13 seconds both put together or each yes two to 300 rows that will be put for 43:22 43 minutes, 22 seconds uh or our side for both this platforms that we're talking about whether it's solar or transmission and the other like 43:29 43 minutes, 29 seconds Sanjay said explained it will be structured ed equity uh with an acquirer plus some part of structured debt to it 43:37 43 minutes, 37 seconds which once we complete with the same strategy like what we have done earlier with CPPIB once we took that uh and once 43:44 43 minutes, 44 seconds the projects were completed there was a there was a high bigger upside that we could do once you flipped it uh into 43:51 43 minutes, 51 seconds pure equity so rather than uh giving complete equity returns to someone keeping part of it for ourselves for a 43:58 43 minutes, 58 seconds long term and flipping it uh once uh the assets mature and achieve cood. 44:07 44 minutes, 7 seconds Okay. And last DVL sorry to interrupt Mr. Shan Sha I would request you please come back and take 44:15 44 minutes, 15 seconds thank you the next question comes from the line of Sanjay Parrick with asset managers. Please go ahead. 44:23 44 minutes, 23 seconds Yeah know congratulations on great order book and you know doing the heavy lifting uh and more so focusing on profitable orders you know that is 44:32 44 minutes, 32 seconds really appreciated and phenomenal work done in coal MDO and I mean the units in 44:38 44 minutes, 38 seconds side my question only one thing is for uh you know is that uh you know while we are in a growth phase and the leveraging 44:46 44 minutes, 46 seconds is yet to happen but at a point uh you know you'll appreciate that uh you know the stock has remained the same for last 44:54 44 minutes, 54 seconds 1 and a half year. So at a point uh and it could be 6 9 months away or 12 months away. We not for short term you can you 45:03 45 minutes, 3 seconds just consider something which you know unlocks the value and reflects in the price. it could be you know a split of 45:12 45 minutes, 12 seconds the coal MDO um now because the I mean the buyback rules also have been very 45:19 45 minutes, 19 seconds liberal now but I don't know whether that's feasible given our current debt levels but at a point if there is a uh 45:27 45 minutes, 27 seconds you know there's an alternative between getting into a growth asset or doing a short buyback of 400 crores I'm not 45:35 45 minutes, 35 seconds talking of a big thing even that can be considered and I'm not saying today but maybe at a point if the stock price don't reflect the current value that's 45:44 45 minutes, 44 seconds the suggestion I have uh sir your suggestion is very well taken and the company is uh thinking 45:51 45 minutes, 51 seconds around a bunch of uh interesting ideas obviously like I said as a shareholder of a company will obviously uh come and 45:59 45 minutes, 59 seconds also discuss the various options and opportunities that can be done uh the hiving off of let's say a coal business 46:07 46 minutes, 7 seconds is uh or demerging of that business is part of it is also regulatory uh where the contract that we've entered 46:16 46 minutes, 16 seconds how their language is also structured and what we may want to do at certain point of time. So rest assured that the monetization is something that we have 46:24 46 minutes, 24 seconds as an agenda the timing of which uh as uh will can only be discussed in the coming future and we will we will have that conversation too. 46:34 46 minutes, 34 seconds Thank you. Thank you very much and best of luck. Thank you. Thank you sir. Thank you. 46:42 46 minutes, 42 seconds The next question comes from the line of Darika with AV Fen Corp. Please go ahead. Uh hello. Thank you for the opportunity. 46:50 46 minutes, 50 seconds Uh my question was mainly on the line of uh the timeline of the transfer of assets to Ananta I think which was 46:59 46 minutes, 59 seconds answered asked by the previous participant. Um would you be able to 47:05 47 minutes, 5 seconds give us uh um more idea on uh the fact that nine projects were supposed to be 47:12 47 minutes, 12 seconds transferred to Anantam initially and but only seven were transferred. Um what led to this delay? Um could you just highlight on that? 47:24 47 minutes, 24 seconds So uh basically we had uh idea to transfer nine assets. Eight assets of 47:31 47 minutes, 31 seconds build and one asset of uh alpha bought from uh outside but the NHI 47:40 47 minutes, 40 seconds approval could not receive uh one project of ours and one project of alpha they bought from market. So we could 47:47 47 minutes, 47 seconds flip only seven assets. So the one asset left from the first eight and the 10 subsequent assets will basically 47:55 47 minutes, 55 seconds transferred this quarter uh this year uh the coming financial year. So quarter 1 we are expecting three assets of uh DBL 48:03 48 minutes, 3 seconds will be flipped to uh invit and uh balance assets in quarter four. 48:11 48 minutes, 11 seconds All right. 48:13 48 minutes, 13 seconds Um uh so I'm sorry can you just repeat the last part? Three assets of DBI will get transferred in Q4. 48:21 48 minutes, 21 seconds Q1 of 27. All right. 48:24 48 minutes, 24 seconds And eight assets of Q4 of 27. So FI 27 all 11 assets will be flipped to invent. 48:31 48 minutes, 31 seconds Perfect. Perfect. All right. Yeah. Thank you. That's it for me. Thank you. 48:39 48 minutes, 39 seconds Thank you. The next question comes from the line of Bavin Modi with Anand Rati. Please go ahead. 48:46 48 minutes, 46 seconds Hi sir, thank you for the opportunity. 48:49 48 minutes, 49 seconds Uh just wanted to understand you know that our at the standard level our debt has increased right. Uh but you know we 48:55 48 minutes, 55 seconds we would have also you know taken a good amount of you know mobilization advance saying you know that we had a you know good inflow this in the last two 49:04 49 minutes, 4 seconds quarters. So just wanted to understand the position you know like you know how much mobilization advance did we take 49:11 49 minutes, 11 seconds and you know why the debt has not reduced. Uh Bab the why the debt has not reduced. 49:19 49 minutes, 19 seconds I had uh explained in quite detail on the in the opening remarks and also in the earlier questions. uh so I think 49:27 49 minutes, 27 seconds that uh that the repetition of that again would be uh probably not the best use of your time to explain but uh we 49:34 49 minutes, 34 seconds will we will take that separately and we can uh read through that. Uh now coming to mobilization advance there has been no mobilization advance that has come 49:42 49 minutes, 42 seconds from these uh projects because so there is no mobilization advance that has been received from any of the projects that 49:49 49 minutes, 49 seconds we have won. Uh so we are working on that. The larger point is the debt could not be reduced as we anticipated because 49:57 49 minutes, 57 seconds of the lower execution uh from you know because you know our model is a fixed asset model if we are 50:04 50 minutes, 4 seconds unable to do that uh there will always be uh challenges in in the uh direction that we want to do but like I mentioned 50:12 50 minutes, 12 seconds for the next year given there is a clear order book that we have in hand uh we anticipate that we will be able to uh 50:20 50 minutes, 20 seconds meet uh the certain guidances that we are uh giving uh you guys all. 50:27 50 minutes, 27 seconds Okay. The second thing is uh you mentioned about the capeex right there there won't be any heavy capex you know at the standalone level maybe there will 50:34 50 minutes, 34 seconds be replacement capex uh but you know when we come at the SPV levels for example you know CRML or maybe you know 50:41 50 minutes, 41 seconds now the potangi and the you know the solar business. So what is the you know capex you know estimated you know uh at 50:50 50 minutes, 50 seconds the uh SPV levels sir for uh both the SPVS uh that you are 50:58 50 minutes, 58 seconds talking about uh first CRML there's already it's financially closed and the capex is being done at the SPV level where we mentioned that there's already 51:05 51 minutes, 5 seconds 500 crores of FD that is also lying there we had invested about 350 crores of equity against that investment there 51:13 51 minutes, 13 seconds is already 500 crores cash lying in that account right now and we still have to draw down the debt for more equipment and also for the coal handling plant 51:21 51 minutes, 21 seconds which will be drawn in the subsequent two years. Uh that plan has also been uh widely socialized and explained to the 51:29 51 minutes, 29 seconds market. Now in the box side mine again the capeex will be done on the STV level and that's not a large cape that will go 51:36 51 minutes, 36 seconds out after 150 crores of capeex that we are anticipating again at that SP level which will be serving things. So on the 51:42 51 minutes, 42 seconds DBL parent level we don't expect capex to be done like I had iterated it's about 100 crores of capeex at DBL parent 51:50 51 minutes, 50 seconds level. uh so like that now talking about solar and all there's no equipment capex that we need to do the solar whatever 51:58 51 minutes, 58 seconds will be that the project building cost that will again come out the SPV level that has nothing to do with DBL all the equipment and all for building a solar 52:06 52 minutes, 6 seconds this thing with whether it's excavator that might be needed for ground leveling and all those are very basic which we already have in hand so I don't 52:14 52 minutes, 14 seconds anticipate any specific capex for solar business uh or transmission person. 52:21 52 minutes, 21 seconds Okay, got it. And uh uh like uh you know u uh what will be you know the margins you know expected margins you know for 52:28 52 minutes, 28 seconds the potangi uh you know so do we have any estimations? 52:38 52 minutes, 38 seconds Hello. 52:39 52 minutes, 39 seconds Uh yes sir. So sir on the EPC so thereangi mine has two parts to it. 52:44 52 minutes, 44 seconds There is an EPC bid to it like we've explained last time as well about 1,700 crores about EPC and the rest is about 52:51 52 minutes, 51 seconds 150 uh crores of uh revenue that we will get every year uh for the next 22 uh 52:57 52 minutes, 57 seconds years uh or so. So uh for the EPC like I said it will be in line with what we are doing. I'm asking about the FPV level 53:05 53 minutes, 5 seconds you know if you can give me 10 SP level we're expecting mid teams of 53:12 53 minutes, 12 seconds levels uh at the FPV level also there okay and uh last thing you know 53:18 53 minutes, 18 seconds so this uh when it is a standalone financials so obviously you know there are many exceptional items which are there you know had it been you know 53:27 53 minutes, 27 seconds normal routine business what would have been you know our pet you know at the adjusted pet because I see lot of adjustment you know with respect to the 53:35 53 minutes, 35 seconds taxation and all. So if I have to only uh you know see only you know the APC business pack uh then what will that have been? 53:44 53 minutes, 44 seconds So do you have any calculation in hand or I will take it separately. 53:47 53 minutes, 47 seconds So we can take uh the calculation separately uh uh we can discuss uh separately. 53:55 53 minutes, 55 seconds Sure that's it for my s. 54:00 54 minutes Thank you ladies and gentlemen. That was the last question for today. I now hand the conference over to the management for closing comments. 54:14 54 minutes, 14 seconds Uh on behalf of the old DBL family, I thank all the participants uh who came and joined us today and asked all the 54:22 54 minutes, 22 seconds questions that they did. uh in case we were not able to answer any of your questions, please feel free to reach out to us on a one-on-one basis and we'll be able to answer uh the idea and the goal 54:31 54 minutes, 31 seconds of the call was to give you the strategic direction with which the company is kind of functioning uh our commitment to whether it's debt levels 54:39 54 minutes, 39 seconds deduction or you know widening our asset uh uh platform approach those remain in line and that's how the company is kind 54:47 54 minutes, 47 seconds of looking to grow uh going forward as well. Uh so thank you very much and I look forward to you guys on our next uh 54:55 54 minutes, 55 seconds uh conference call and hope all of you have a great uh uh end to this financial year. 55:03 55 minutes, 3 seconds Thank you on behalf of Delete Buildcon Limited. That concludes this conference. 55:08 55 minutes, 8 seconds Thank you for joining us and you may now disconnect your lines. Thank you.